HUGO BOSS recognizes that its operations and sourcing activities may be linked to potential impacts on workers in the upstream value chain. These risks may arise at Tier 1 and also further upstream in labor-intensive regions, where systemic challenges such as job insecurity, low wages, excessive working hours, restricted freedom of association and social dialog, gender disparities, human rights risks, particularly with regard to child and forced labor as well as health and safety hazards persist in parts of the industry.
In accordance with the EU “quick-fix” relief applicable for fiscal year 2025, HUGO BOSS applies selected reporting reliefs under ESRS S2. While S2 has been assessed as material, the disclosures presented in this chapter focus on the Group’s key policies, actions, targets and metrics relating to Tier 1. Suppliers classified in Tier 2 and beyond are not covered in this chapter, even though these tiers include direct suppliers.
Policies related to workers in the value chain
HUGO BOSS has embedded its human-rights and labor-standards commitments within a comprehensive policy framework. This mainly includes the Supplier Code of Conduct (SCoC), the Human Rights Statement and Policy, and the Child Labor and Forced Labor Policy. Together, these policies define expectations toward all business partners and production sites, covering aspects such as working hours, fair wages, freedom of association, health and safety, and access to grievance mechanisms. The SCoC, related policies, or equivalent standards form part of the contractual framework with all our direct suppliers. Further details on the Human Rights Policy are provided in the Own Workforce chapter, and on the SCoC in the Governance chapter. Own Workforce, Governance
Targets and metrics related to workers in the value chain
HUGO BOSS has established an ongoing target to ensure that at least 90% of business volume is sourced from Tier 1 suppliers (including own production) that achieve one of the two highest social-compliance performance levels (“good” or “satisfactory”) within the Company’s five-level grading framework. The rating “good” refers to suppliers that have established necessary activities for safe and fair working conditions within their management systems and take their own social responsibility very well. The rating “satisfactory” refers to suppliers recognizing the need for activities for safe and fair working conditions and have defined measures to support their implementation. Compliance performance is verified on a regular basis through audits, self-assessments, or recognized external social-compliance standards. In fiscal year 2025, the Company already achieved a share of 94% (2024: 93%), reflecting continued progress in strengthening social and labor standards across its Tier 1 supply base. This ongoing target replaces two former time-bound targets ahead of schedule, which would have expired in 2025. While substantial progress was made, the defined thresholds of 100% sourcing from Tier 1 suppliers achieving one of the two highest performance levels and 80% sourcing from suppliers achieving the highest performance level were not fully achieved.
Actions related to workers in the value chain
We take a risk-based approach to auditing Tier 1 suppliers (including own production) and implement Corrective Action Plans where non-compliances arise. Through our Sustainable Supply Chain (SSC) program, we systematically monitor supplier adherence to the SCoC’s principles as part of our broader Human Rights Due Diligence process. This process also covers the identification and assessment of salient labor risks beyond Tier 1 in the wider upstream value chain.
We foster long-term partnerships with our suppliers to support continuous improvement in working conditions and social compliance. To strengthen capabilities on the ground, we also engage suppliers through training, worker-voice channels, and access to grievance mechanisms. In addition, we actively collaborate with external stakeholders – including NGOs, trade unions, and multi-stakeholder initiatives such as the Fair Labor Association (FLA) and the International Accord for Health and Safety in the Textile and Garment Industry as well as the Bangladesh Accord on Fire and Building Safety – to drive systemic improvements in labor standards across the apparel industry.
Further information on our management of relationships with suppliers, our whistleblowing policy, grievance mechanisms, and payment practices is provided in the Governance chapter. Additional details on our approach towards suppliers and workers in the value chain can also be found on our Group website. Governance