Climate Change

In the global textile and apparel industry, CO₂ emissions primarily originate from the cultivation and production of fibers, as well as energy-intensive processes such as dyeing, washing, and bleaching. Additional emissions also stem from our own business activities and the broader value chain, where transportation contributes to our carbon footprint. Consumer practices such as washing, drying, and disposing of textiles further add to the environmental impact. At HUGO BOSS, we recognize our shared responsibility to protect the climate, strengthening our efforts to implement process changes which reduce greenhouse gas emissions and energy consumption both within our operations and throughout our supply chain.

Transition plan for climate change

HUGO BOSS has set the goal of reducing greenhouse gas (GHG) emissions by 50% by 2030 (compared to 2024 data) and targets net zero emissions by 2050, following the recommendations of the Science Based Target initiative (SBTi) and in line with the 1.5°C target of the Paris Agreement. Initially scheduled for publication in 2025, the Company continues to work on updating its existing Transition Plan to reflect evolving methodologies and international regulatory developments. Targets related to Climate Change

Policies related to climate change

Our Environmental and Forest Conservation Policy, which is available on the Company’s website, was updated in 2025 and underscores our commitment to environmental and future-oriented matters. It sets clear standards and requirements aimed at reducing the Company’s contribution to climate change, conserving natural resources, promoting energy efficiency and renewable energy, limiting environmental pollution, and supporting the preservation of forests and biodiversity across our operations and supply chain. The policy addresses significant environmental impacts, such as the reliance on non-renewable energy, high energy consumption, and energy-intensive manufacturing, while also requiring resource efficiency and the increased use of renewable energy. Monitoring involves tracking energy use, pollution levels, and compliance with ISO 14001 (environmental management system) and ISO 50001 (energy management system) at our own sites.

Climate change mitigation measures are firmly embedded in our Environmental and Forest Conservation Policy, which establishes clear expectations for our supply chain partners. More information on the collaboration with our suppliers to decrease emissions in the supply chain can be found in the “Actions related to climate change” section of this chapter. Actions related to climate change

To advance climate protection within our supply chain, the HUGO BOSS Supplier Code of Conduct sets out clear standards and expectations for suppliers across various operational aspects. The code provides guidance and sets out stringent environmental requirements for suppliers, including the identification and monitoring of energy sources and the tracking of GHG emissions. Suppliers are required to develop roadmaps and implement corresponding measures to reduce energy consumption and emissions while responsibly managing natural resources. More information on the Supplier Code of Conduct can be found in the “Governance” section. Governance

Targets related to climate change

To mitigate climate impact, we have set the long-term goal of achieving net zero emissions by 2050, based on Scope 1, 2 and Scope 3 emissions. As part of this, we aim to reduce Scope 1-2 emissions by 50% by 2030, based on a 2024 baseline (2024 adjusted: 25,520 t CO₂e). Scope 3 emissions are also targeted for a 50% reduction over the same period (2024 adjusted: 697,735 t CO₂e). The target calculation covers Scope 3 categories 3.1 (purchased goods and services) and 3.4 (upstream transportation and distribution) only, as these categories together account for more than 90% of total Scope 3 emissions and therefore represent the areas with the highest reduction potential. In 2025, our Scope 1 and 2 emissions decreased by 19%, and Scope 3 emissions (Scope 3.1 and Scope 3.4) also declined by 15% compared with 2024. These goals are approved by the Science Based Targets initiative (SBTi) and align with the requirements of the Fashion Industry Charter for Climate Action (UNFCCC), supporting to limit global warming to a maximum of 1.5 °C. In 2025, HUGO BOSS revised its 2030 climate targets and, in line with SBTi requirements, adjusted the base year for both Scope 1–2 and Scope 3 targets from 2019 to 2024.

Dedicated energy targets regarding our building-related consumption shall support achieving our emission reduction goals by reducing overall energy consumption and further enhancing efficiency across our operations. In line with the Fashion Industry Charter for Climate Action, we are committed to sourcing 100% electricity from renewable sources used in own operations by 2030. In 2025, already 82% of electricity consumed (83,080 MWh) was sourced from renewable energies (2024: 73%; 73,794 MWh). HUGO BOSS also aims to reduce direct and indirect energy consumption per square meter by 20% by 2030 compared to the 2019 base year. In 2025, direct and indirect energy consumption relative to gross floor area (kWh/sq m) decreased by 7% compared to 2019.

Actions related to climate change

Most of the Company’s GHG emissions originate from upstream activities, including raw material cultivation, extraction, and processing. Emissions from HUGO BOSS’ own operations (Scope 1 and 2) account for 3% of total GHG emissions. Consequently, 97% are generated across the broader value chain (Scope 3).

Own operations

While the climate impact of our own operations is relatively low compared to upstream and downstream activities, further reducing energy consumption and CO₂ emissions at our own sites remains important for achieving our overall climate targets.

To further reduce CO₂ emissions, we are investing in energy-efficient technologies and modernizing technical facilities. Since 2020, HUGO BOSS has been purchasing electricity exclusively from renewable energy sources at all own production sites. In 2025, we finalized the planning for the expansion of a photovoltaic system at one of our main logistics hubs near our headquarters in Metzingen (Germany), with implementation starting in 2026. Additionally, in 2025, we implemented further energy efficiency measures at our production site in Izmir (Turkey) – by far the largest of our own production sites globally. This includes the replacement of compressors with more efficient motors and the detection and repair of air leaks, resulting in energy savings of around 600 MWh in 2025. Our Izmir site was once again certified to both ISO 14001 and ISO 50001 in 2025, having maintained certification since 2014. We also expanded the procurement and use of renewable electricity on a Group-wide basis, including sourcing green electricity for all locations in Brazil, Greece, and Turkey, as well as for all remaining sites in the U.S. not yet supplied with renewable energy.

Supply chain

To advance towards our overall emission reduction targets, we are actively addressing Scope 3 emissions. Our approach includes close collaboration with suppliers, particularly those involved in energy-intensive processes such as dyeing, coating, steaming, ironing, and hot water usage, aimed at supporting them in decarbonizing their operations.

As part of regular environmental audits conducted by external auditors, we review suppliers’ environmental management system as well as their energy consumption and CO₂ emissions. Based on prior assessments, these audits are conducted every one to three years. If any violations of environmental standards are identified, we work with the respective suppliers to develop and implement corrective action plans (CAPs), which are reviewed during follow-up audits. To support continuous improvement, we also provide regular training to keep suppliers informed about environmental and climate protection measures, aiming to establish standardized energy and environmental management systems. This also includes guidance on best practices for carbon accounting.

To further enhance transparency and the measurability of suppliers’ environmental impacts, we co-developed the “Climate Action Training for the Fashion Industry” in 2021. This voluntary training, created by the Fashion Industry Charter for Climate Action and selected signatories, is publicly available online, free of charge, and offered in multiple languages. It is specifically designed for Tier 1 and Tier 2 suppliers, equipping garment, textile, and footwear manufacturers with essential knowledge on climate change, industry environmental impact, energy efficiency, renewable energy, and practical carbon accounting techniques.

HUGO BOSS is part of Cascale, a collaborative platform aimed at strengthening industry partnerships, enhancing supplier engagement, and improving data management. Building on this initiative, we have adopted the Cascale-developed Higg Facility Environmental Module (Higg FEM) 4.0 on the Worldly platform, one of the most widely used sustainability measurement tools in the apparel and footwear industry. This enables accurate capture and management of Scope 3 emissions (Scope 3.1 purchased goods and services) and provides a comprehensive view of environmental performance across the supply chain. In 2025, we expanded participation among our Tier 1 and Tier 2 suppliers. To ensure that internal stakeholders are well equipped, we conducted training sessions for key teams, including those within our brands’ product divisions. The sessions focused on Higg FEM functionality, leveraging benchmarking opportunities to optimize order placements, and performing country-specific analyses. In the 2025 reporting year, the process requirements were established to integrate the Higg FEM into the environmental criteria of supplier evaluation.

HUGO BOSS aims for a gradual reduction of its transport-related GHG emissions (Scope 3.4 upstream transport and distribution) by consistently reducing air freight and increasing the share of shipping methods with lower GHG emissions per ton-kilometer, such as sea freight, and by improving transport planning. In addition, the Company is integrating minor amounts of biofuels to contribute to the reduction of GHG emissions along the supply chain and introducing new supply chain tracking systems to enhance transparency and increase transport efficiency. On top of that, we focus on nearshoring to position production closer to key sales markets.

Energy consumption and mix

In 2025, total energy consumption related to our own operations amounted to 142,734 MWh (2024 adjusted: 145,131 MWh). The slight decrease compared to the previous year was primarily driven by the implementation of additional energy efficiency measures across our own operations. In 2025, a total of 58%, corresponding to 83,080 MWh of our consumed energy was derived from renewable sources (2024 adjusted: 51%; 73,794 MWh), while 42% (59,654 MWh) was sourced from fossil fuels and is therefore non-renewable (2024 adjusted: 49%; 71,338 MWh).

Energy intensity, measured as total energy consumption across all own production facilities, warehouses, offices, and brick-and-mortar retail stores and outlets, relative to revenue, amounted to 33 MWh/EUR million in 2025 (2024: 34 MWh/EUR million).

Greenhouse gas emissions

In 2025, our global business activities resulted in a total of 663,540 metric tons (tons, t) of GHG emissions across Scope 1, 2, and 3 (2024 adjusted: 771,654 t), calculated in accordance with the Greenhouse Gas Protocol. Total emissions decreased by 14% compared to the base year 2024, resulting in an emission intensity – defined as total GHG emissions relative to Group revenue of EUR 4,270 million – of 155 t CO₂e/EUR million in 2025 (2024 adjusted: 179 t CO₂e/EUR million).

Scope 1 and 2 emissions amounted to 20,594 t in 2025, reflecting a reduction of 19% compared to the previous year (2024: 25,520 t). This mainly reflects an increased share of green electricity and the implementation of energy efficiency measures across our own operations.

In 2025, Scope 3 emissions totaled 642,946 t, marking a 14% decrease against the prior year (2024 adjusted: 746,134 t). This decrease, consistent with the overall reduction in total emissions, is primarily driven by lower production volumes. GHG emissions intensity per purchased piece decreased by 1% compared to 2024. The calculation is based on the sum of emissions from Scope 3.1 purchased goods and services (>99% of numerator) and direct emissions from own production sites (<1% of numerator), in relation to sourcing volume.