Resource Use and Circular Economy

As a global fashion company, HUGO BOSS recognizes its responsibility to respect natural resources and support the transition towards a circular economy. Circularity was identified as a strategic priority at an early stage and is embedded as a key pillar of our sustainability strategy. Group Strategy, Sustainability Strategy

The fashion industry’s production processes rely heavily on natural materials such as cotton, wool, and synthetic fibers like polyester, all of which necessitate ongoing resource extraction. This dependence drives environmental challenges, including deforestation, high water consumption, and pollution. Additionally, substantial waste is generated both during garment production and at the post-consumer stage, when clothing is discarded rather than being reused or resold. This exacerbates environmental burdens and depletes valuable raw materials. Packaging, particularly single-use plastics, further adds to the environmental impact, contributing to resource depletion and generating large volumes of non-biodegradable waste.

Policies related to resource use and circular economy

Our Material Strategy underscores our commitment to resource use that takes environmental and social aspects into account and to integrating circular design principles. Key elements include the classification of raw materials and information about our “WE CARE” initiative, including circular design principles and the use of materials from “preferred sources.” For circular design, we closely follow the comprehensive framework developed by circular.fashion, which defines clear criteria for products designed for circularity. At HUGO BOSS, circular products must meet three requirements: the use of renewable or recycled raw materials, durability, and design that enables future recycling. Like all BOSS and HUGO products, our circular products undergo testing to meet high quality standards, ensuring durability and longevity. Additionally, our designers and product experts continuously seek innovative ways to extend lifespan and improve repairability.

Targets related to resource use and circular economy

We aim for 80% of our apparel products to be designed for circularity by 2030 (measured by production volume), applying the criteria outline above. In 2025, we increased this share to 41% (2024: 33%). The ultimate impact of this target also depends on the further development of textile collection and recycling infrastructure across relevant markets.

We aim to source 100% of our main natural materials from preferred sources by 2030, covering all fabrics and linings, measured by sourcing volume. In 2025, this share reached 48% (2024: 32%; unaudited). Preferred sources are defined in our Material Strategy and include regenerative agriculture as our first choice for cotton and wool, closed-loop recycling, and other recognized standards. In 2025, we further refined the criteria underpinning this target. In addition to regenerative agriculture and closed-loop recycling, the definition of preferred sources now also includes further standards for sustainable materials, such as organic cotton and the Responsible Wool Standard (RWS).

For polyester and polyamide, we likewise target to procure 100% from preferred sources by 2030, as defined in our Material Strategy, covering all fabrics and linings and measured by sourcing volume. In 2025, this share reached 14%. This target replaces a previous target that focused on the overall reduction of polyester and polyamide. The revised approach takes a broader perspective by focusing on improving the characteristics of these materials, acknowledging that the market does not yet provide sufficient alternatives to fully replace them. Our current focus for these fibers is on textile-to-textile recycled materials, while at the same time seeking to reduce overall reliance on polyester and polyamide wherever possible.

Actions related to resource use and circular economy

In 2025, we continued to drive circularity across our business, with a strong focus on products designed for circularity. We analyzed key product groups that are easier to transition, such as jersey-based essentials like T-shirts and polos, to identify how circular design principles can be effectively implemented and launched corresponding measures. These actions include modifying material compositions to improve recyclability and applying circular prints. To further build internal expertise, we continued to conduct online training courses for our design and development teams, strengthening their understanding of circular design principles and their practical application.

With respect to materials from regenerative agriculture, we placed particular emphasis on cotton in 2025. We list all accepted standards for regenerative agriculture within our Material Strategy, giving supply chain partners clear guidance in sourcing. In addition, we continued to strengthen existing partnerships, such as with Raddis in South India, which supports smallholder farmers in transitioning to regenerative practices. To ensure organizational alignment, relevant teams are required to complete an annual online training program covering our sustainability targets and material standards.

Resource inflows

For the production of our collections, HUGO BOSS requires a variety of materials, including both biological and synthetic/technical materials. Biological materials such as cotton, wool, and leather constitute a significant share of our input materials and are carefully selected to meet our sustainability standards. Technical materials, such as polyester and polyamide, also remain an integral part of our input materials. To reduce reliance on virgin resources, we increasingly focus on using recycled alternatives across our brands’ collections.

At the same time, we aim to further improve our use of packaging. This involves both decreasing reliance on single-use plastics and increasing the use of packaging made from certified and/or recycled materials. No detailed reporting on packaging is provided for the current reporting year.

Resource outflows

Currently, there are no industry-wide standards for durability, repairability, or recyclability. We therefore intend to align our practices with upcoming regulations and standards as soon as they are introduced. To support repairability, we provide care and repair guidance on our website and offer selected repair services as part of our customer loyalty program, HUGO BOSS XP, to help extend product lifespans. While current reporting guidelines do not yet define how to assess the recyclable content of fashion products, we apply circular.fashion’s criteria to support the development of styles designed for circularity.

We also focus on minimizing waste across critical stages of the product life cycle by increasingly reusing surplus production materials and extending product life cycles. To further advance the reuse and recycling of surplus materials, we launched Eightyards in early 2025, a HUGO BOSS subsidiary dedicated to reselling, recycling, and reusing surplus fabrics and linings.

In 2025, we also partnered with Sellpy, a European re-commerce platform, to expand resale opportunities. The collaboration offers customers a convenient way to extend the life of pre-owned fashion items. Through our website, we provide Sellpy shipping bags free of charge, allowing customers to send in items – including BOSS, HUGO, or other brands – for resale and receive a credit once the items are sold. The offer is initially available in selected European markets and highlights our commitment to extending product lifespans and advancing the circular economy.