Annual Report 2025

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Results

Pollution is a critical issue in the apparel and textile industry, particularly in upstream and downstream value chain stages. During raw material extraction, pesticides and fertilizers contaminate water sources, particularly in regions with less-developed agricultural practices. Soil degradation is caused by overgrazing, poor farming practices, and excessive chemical use, while improper disposal of textile waste pollutes soil and groundwater. Textile production significantly affects water and soil quality due to the use of chemical substances and various processing agents. These substances are predominantly applied in wet processes such as dyeing, washing, bleaching, and tanning, which are major contributors to water pollution through the discharge of untreated wastewater. Additionally, synthetic textiles release microplastics during wear and washing, polluting rivers and oceans, and harming marine life and human health. HUGO BOSS recognizes these challenges and aims to reduce pollution in key stages of its value chain, for example by improving chemical management in wet processes.

Policies related to pollution

To effectively address pollution prevention and control, we have implemented respective policies. Our Environmental and Forest Conservation Policy sets the framework for reducing environmental pollution and protecting natural resources, with more information to be found in the “Climate Change” section. Climate Change

HUGO BOSS is dedicated to the conscious and safe use of chemicals, prioritizing both environmental and health considerations through its Chemical Management Policy. This policy outlines clear guidelines for the storage, use, and disposal of hazardous substances, aiming to reduce environmental impact and actively promote safer alternatives. It addresses key concerns such as preventing water pollution and reducing air and soil contamination by adhering to internationally recognized standards, including the Zero Discharge of Hazardous Chemicals (ZDHC) initiative, which HUGO BOSS joined already in 2017. This initiative provides standardized tools to assess and enhance suppliers’ chemical management practices.

A core element of this initiative is the ZDHC Manufacturing Restricted Substances List (MRSL), which identifies harmful chemical substances that need to be reduced or eliminated. The MRSL sets strict limits for critical process chemicals and supports efforts to monitor and mitigate water pollution. It forms an integral part of HUGO BOSS’ supplier contracts, requiring all suppliers, including own production facilities, to regularly verify their chemical inventories against the MRSL.

To minimize the presence of harmful substances in our products, we have established a Restricted Substances List (RSL) and Product Compliance Guideline, defining product safety and marketability requirements, thus setting a clear framework for compliance throughout our supply chain. Our suppliers are required to adhere to our RSL, which strictly regulates substances in our products to ensure they meet the defined safety standards. It aligns with the recommendations of the Apparel and Footwear International RSL Management (AFIRM) Group, incorporating their substance lists, thresholds, and test methods for a structured approach to managing restricted substances. HUGO BOSS extends the obligations of the MRSL and the RSL beyond its Tier 1 suppliers, mandating that upstream suppliers also comply with these standards, fostering collective commitment to product safety and sustainability.

Targets related to pollution

HUGO BOSS is committed to ensuring that all Tier 1 and direct Tier 2 suppliers using wet processes meet the ZDHC MRSL reporting or an equivalent standard by 2030. The scope includes all active suppliers with whom HUGO BOSS conducted business transactions during the reporting year and who either use chemicals (for chemical inventory testing) or use chemicals and water (for wastewater testing). In 2025, 50% of the production sites in scope met the chemical inventory requirements (2024: 42%). For wastewater tests, 74% of the production sites in scope complied with the specifications (2024: 62%). By 2025, interim targets were defined for strategic suppliers, requiring all strategic Tier 1 suppliers with wet processes to comply with the ZDHC MRSL requirements or an equivalent standard for both chemical inventory and wastewater testing. The targets were not fully achieved, as some suppliers use alternative certification schemes for chemical management and wastewater testing that are not currently recognized under the HUGO BOSS target definition. We remain committed to our 2030 target and will continue to evaluate additional certification schemes for potential inclusion in the target scope.

To enhance water and soil quality, we aim to source 100% of our main natural materials from preferred sources by 2030 as outlined in our Material Strategy, covering all fabrics and linings (measured by sourcing volume, excluding license products). We define materials from preferred sources as either recycled, sourced from regenerative agriculture, or adhering to other recognized external standards. As of 2025, 48% of our main natural materials already met these criteria (2024: 32%; unaudited). This goal is designed to prevent soil and water pollution by promoting better cultivation practices that minimize excessive fertilizer and pesticide use. In doing so, we aim to combat soil degradation, improve soil quality, and protect water ecosystems from harmful contamination caused by conventional agricultural methods, such as traditional cotton farming. 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 pollution

To reduce environmental impacts in production, we are collaborating closely with our suppliers and other businesses in the global apparel industry, including through initiatives such as the ZDHC. Through the ZDHC “Roadmap to Zero” concept, we have expanded opportunities to monitor and improve chemical management along the supply chain. Additionally, as a member of the AFIRM Group, we leverage their tools to foster chemical compliance and product safety at every stage of production.

Recognizing the environmental risks posed by chemicals in products, HUGO BOSS prohibited the use of harmful per- and polyfluoroalkyl substances (PFAS) in production processes already in 2018. This ban is an integral part of our RSL.

To ensure our products are free from substances of very high concern (SVHC), we conduct regular monitoring through comprehensive testing. Our Product Risk Database integrates third-party test reports for products, fabrics, and trimmings, enabling us to effectively track restricted substances and particularly focus on identifying and managing SVHCs. This proactive approach aims to ensure compliance with regulatory requirements while minimizing risks to users and the environment.