Annual Report 2025

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Natural raw materials depend on healthy ecosystems and thriving biodiversity. As our products are predominantly crafted from cotton, wool, and other natural fibers, this underscores our deep reliance on the preservation of biodiversity. Cotton cultivation often involves excessive fertilizer and pesticide use, while agricultural expansion for cotton and leather production contributes to habitat loss and deforestation. Furthermore, land-use changes associated with raw material extraction and textile production intensify pressure on ecosystems, contribute to the degradation of natural habitats, and accelerate the loss of biodiversity. HUGO BOSS integrates biodiversity considerations into its broader sourcing activities, working to balance its dependence on natural resources with efforts to mitigate adverse impacts on ecosystems. The sourcing of natural materials from regenerative agricultural systems can also promote practices that improve soil quality, preserve or restore biodiversity, and contribute to the long-term stability of local ecosystems. At the same time, biodiversity loss and ecosystem degradation can impair essential ecosystem services.

In line with the EU “quick-fix” relief for fiscal year 2025, the Company applies reporting reliefs under ESRS E4. Accordingly, while E4 has been assessed as material, the chapter presents summarized disclosures focusing on key policies, actions, targets, and metrics.

Policies related to biodiversity and ecosystems

Biodiversity and ecosystem protection are embedded across several policy instruments. Our Environmental and Forest Conservation Policy underscores our commitment to conserving natural resources, improving energy efficiency, and managing environmental risks across our operations and supply chain. It also guides the use of alternative and resource-efficient materials to help reduce impacts on biodiversity and ecosystems. Our Biodiversity Strategy Paper outlines how we manage key dependencies on cotton, wool, and other nature-based inputs. Our approach prioritizes sourcing practices that take environmental and social aspects into account and excludes materials such as exotic leather. It also addresses the prevention of deforestation linked to cotton cultivation and wood-based inputs, as HUGO BOSS is committed to forest conservation by selecting materials for fabrics, paper, and packaging in a way that preserves ecosystems and supports social responsibility. Further details on our Environmental and Forest Conservation Policy are provided in the “Climate Change” section. Climate Change

Targets related to biodiversity and ecosystems

To reduce the impact on natural resources, HUGO BOSS has set the goal of sourcing 100% of main natural materials used in fabrics and linings from preferred sources by 2030 (measured by sourcing volume, excluding license products), as defined in the HUGO BOSS Material Strategy. In this regard, we focus on cotton, wool, leather, mohair, cashmere and down. In 2025, 48% of the main natural materials already met these criteria (2024: 32%; unaudited). While regenerative agriculture remains the first choice when sourcing cotton and wool, this target replaces a former target with a narrower focus solely on regenerative agriculture, thus reflecting a broader, more integrated sourcing approach. Regenerative agriculture is a holistic approach to restoring soil health, biodiversity, and ecosystem resilience through practices such as crop rotation, the reduced use of critical chemicals, and the protection of endangered species. Since 2025, all natural materials sourced according to regenerative principles rely on renowned external standards as outlined in our Material Strategy. Additional information on this target as well as on our Material Strategy can be found in the “Resource Use and Circular Economy” section. Resource Use and Circular Economy

Actions related to biodiversity and ecosystems

Recognizing the importance of intact ecosystems and biodiversity, HUGO BOSS has taken concrete steps to identify, assess, and disclose nature-related risks and opportunities. In 2025, we published our first combined Task Force on Climate-related Financial Disclosures (TCFD) and Taskforce on Nature-related Financial Disclosures (TNFD) report, enhancing transparency and accountability. A key focus in 2025 has been the application of a comprehensive biodiversity impact assessment tool, extending its use to our own facilities, Tier 1 and direct Tier 2 suppliers, and regenerative Tier 4 farmers. The HUGO BOSS Foundation also supports non-profit initiatives aimed at restoring ecosystems and promoting biodiversity. In 2025, it continued its long-term partnership with Coral Gardeners to support coral reef restoration and biodiversity protection in marine environments.

Additional information on animal welfare is available in the Governance chapter. More details on our broader biodiversity and ecosystem approach can be found on our Group website. Governance, Group website