HUGO BOSS

The Supervisory Board is responsible for overseeing the Managing Board and consists of twelve members. In fiscal year 2024, the Supervisory Board met five times, with meetings focused on current business performance, risk assessment, strategy execution, capital structure, compliance issues, and Corporate Governance Code requirements.

Committees and their work:

Audit Committee (met 4 times): Addressed financial reporting, risk management and internal control system, IT security matters, compliance matters, CSRD requirements for non-financial reporting, auditor independence, and non-audit services approval.

Personnel Committee (met 4 times): Focused on succession planning, filling management positions, Managing Board compensation system, target achievement assessment, and reappointment of Managing Board members.

Working Committee (met 2 times): Dealt with business performance, strategic alignment, lease extensions, Digital TWIN project progress, sport-sponsoring activities, and strategic partnership with David Beckham.

Nomination Committee (met 4 times): Prepared for upcoming Supervisory Board election scheduled for 2025.

Mediation Committee: Did not convene during fiscal year 2024.

The Supervisory Board conducted an annual efficiency review using external evaluation of questionnaires. No conflicts of interest relating to Managing Board or Supervisory Board members arose in fiscal year 2024.

The Supervisory Board was regularly informed about sustainability matters through various channels:

• The Audit Committee specifically addressed the requirements of the Corporate Sustainability Reporting Directive (CSRD) for non-financial reporting
• Current business performance, liquidity management, and risk assessment were regularly discussed at Supervisory Board meetings
• The combined non-financial statement for 2024 and the independent auditor's limited assurance report were discussed by the full Supervisory Board on March 12, 2025
• The Supervisory Board received comprehensive reports on the contents of committee meetings, including those covering sustainability-related topics
• Regular detailed reports were provided on compliance matters and risk management, which encompass ESG risks
• The Supervisory Board focused on the Company's strategic execution including sustainability elements of the 'CLAIM 5' strategy

HUGO BOSS has integrated sustainability-related performance into its incentive schemes at multiple management levels:

Short-term Incentive (STI): The STI program for managers at all four management levels below the Managing Board is linked to achievement of specific sales and EBIT targets, with trade net working capital as a percentage of sales being the third component.

Long-term Incentive (LTI): The compensation scheme for management at the two levels below the Managing Board includes a long-term incentive program whose design matches that for the Managing Board. The LTI includes both financial targets and non-financial ESG (environmental, social, governance) targets. The ESG component is related to:

• Employee satisfaction
• The Company's relative performance in sustainability

The LTI is intended to ensure that senior management of HUGO BOSS pursues a sustainable business policy that is aligned to the interests of the Company. This structure ensures that sustainability performance directly impacts executive compensation and decision-making.

HUGO BOSS conducts due diligence processes across its value chain, particularly in relation to suppliers and business partners:

Supplier Due Diligence: The Company works with a network of experienced and specialist suppliers, with relationships averaging more than ten years. HUGO BOSS fosters long-term strategic partnerships with its suppliers and sees itself as a strong partner, supporting suppliers in the further development and professionalization of processes and workflows.

Selection Criteria: Alongside economic criteria, HUGO BOSS attaches great importance to environmental and social aspects in the selection of suppliers. The cooperation is based on:

• Respect for human rights
• Compliance with applicable working standards
• Occupational health and safety

Supplier Code of Conduct: The HUGO BOSS Supplier Code of Conduct forms the framework for all supplier relationships, establishing the foundation for due diligence processes.

Supply Chain Transparency: In 2024, the Company successfully rolled out key traceability features to a large majority of supply chain partners worldwide, significantly strengthening transparency across the entire supply chain through the Digital TWIN initiative.

Supplier Network: In fiscal year 2024, HUGO BOSS sourced finished goods from 200 external Tier 1 suppliers operating 271 production facilities, and procured fabrics and trimmings from 382 external Tier 2 suppliers operating 411 production facilities.

Overall Responsibility: The Managing Board of HUGO BOSS has overall responsibility for an effective risk management system, including sustainability-related risks.

Risk Management Structure:

• The central Risk Management and Internal Controls department coordinates the execution and continuous development of the risk management system on behalf of the Managing Board
• Monitoring the effectiveness of the risk management system is the responsibility of the Supervisory Board
• The Audit Committee of the Supervisory Board exercises this task with involvement of the Internal Audit department

ESG Risk Integration: The process for identifying, evaluating and managing ESG risks was integrated into the overarching risk management system and can be used to evaluate the Company's overall risk profile and risk management processes. The results of the ESG risk and opportunity assessment were integrated into the Company's existing risk management system to streamline processes.

Internal Controls: As part of the reporting process, HUGO BOSS has not identified any risks associated with its own business activities, business relationships, products or services that very likely have or could have serious adverse impacts on the five mandatory aspects as set forth in Sec. 289c HGB.

Sustainability Governance:

• Strategic responsibility for ESG matters is assigned to the Group Strategy and Corporate Development division, reporting directly to the CEO
• Operational responsibility lies with Business Operations
• Group Finance & Tax is responsible for Group-wide ESG data collection, consolidation, and validation
• The CFO/COO assumes responsibility for the central Sustainability Committee

Business Model: HUGO BOSS is a leading global fashion and lifestyle company in the premium segment, headquartered in Metzingen, Germany. The Company offers high-quality women's and men's apparel, shoes, and accessories through two globally renowned brands – BOSS and HUGO.

Strategy: The Company pursues the "CLAIM 5" growth strategy, introduced in August 2021, built on five strategic pillars:

1. Boost Brands - Increase relevance and perception through 360-degree brand campaigns, collaborations, and unique brand events
2. Product is Key - Develop 24/7 lifestyle brands with superior price-value proposition, focusing on premium quality, innovation, and sustainability
3. Lead in Digital - Drive digitalization along the entire value chain, with goal of developing >90% of products digitally by 2025
4. Drive Omnichannel - Provide seamless brand experience across >8,000 points of sale globally and 74 digital markets
5. Organize for Growth - Transform organization into platform of speed and growth with streamlined, brand-led setup

Vision: To be the leading premium tech-driven fashion platform worldwide.

Value Chain:

• Upstream: Tier 1-4 suppliers covering assembly, materials production, raw material processing, and extraction/farming
• Own Operations: 5 production sites, logistics, distribution, product design, marketing, retail operations, administration
• Downstream: Distribution via wholesale partners, consumer use phase, end-of-life/recycling

Geographic Presence: Operations in 129 countries across three regions - EMEA (61% of sales), Americas (24%), and Asia/Pacific (13%), plus licensing business (3%).

Sustainability Integration: Sustainability strategy focuses on five pillars: increasing circularity, driving digitization & data analytics, leveraging nature-positive materials, fighting microplastics, and pushing towards zero emissions, with goal of creating "a planet free of waste and pollution."

Stakeholder Engagement Approach: HUGO BOSS actively engages with stakeholders, valuing their input as essential to shaping both Group and sustainability strategies. The Company maintains systematic dialog with all relevant stakeholders including employees, shareholders, customers, business partners, and society.

Stakeholder Analysis: Guided by stakeholder analysis conducted in accordance with the AA 1000 SES standard, HUGO BOSS employs standardized formats and approaches for effective communication including:

• Corporate website
• Annual Report
• Social media channels
• Dedicated stakeholder events

Key Stakeholder Event: In 2024, HUGO BOSS held a Stakeholder Dialog at Group headquarters in Metzingen, bringing together industry experts, academics, NGOs, and supply chain partners for in-depth discussions on sustainability within the fashion industry's supply chain.

Double Materiality Assessment: HUGO BOSS conducted a comprehensive double materiality assessment in 2024, engaging with numerous internal stakeholders through interviews and desk research. External stakeholder perspectives were incorporated through internal experts who regularly engage with relevant interest groups.

Customer Engagement:

• Launched HUGO BOSS XP loyalty program in 2024 - a hyper-personalized omnichannel member experience
• Increased member base by ~25% to more than 10 million members
• Focus on building brand loyalty and customer lifetime value

Investor Relations: Extensive activities including participation in national and international conferences, global roadshow activities, and regular presentations to private shareholders. Won multiple awards including "Investors' Darling Award" and "ESG Transparency Award" for comprehensive sustainability reporting.

Double Materiality Assessment: HUGO BOSS conducted a comprehensive double materiality assessment (DMA) in 2024 in preparation for ESRS compliance. The assessment identified material sustainability impacts, risks, and opportunities through engagement with internal stakeholders via interviews and desk research, while incorporating external stakeholder perspectives.

Impact Materiality (Inside-out): The ESG impact assessment developed a comprehensive catalog of ESG impacts, mapping existing impacts to ESRS methodology. The assessment covered potential and actual impacts on environment and people across the value chain - from own operations to upstream and downstream stages. Using ESRS criteria, negative impacts were classified as material if they fell in the upper half of the combined assessment scale, while positive impacts were material if they fell in the upper quarter.

Financial Materiality (Outside-in): The ESG risk and opportunity assessment was led by Risk Management and Internal Controls, analyzing risks and opportunities in accordance with ESRS criteria. All risks with combined likelihood and magnitude rated as either high or critical were assessed as material. The assessment was conducted on a gross basis, excluding implemented mitigation measures.

Material Topics Identified: The DMA indicated that nine of the ten ESRS topics are generally considered material for HUGO BOSS in fiscal year 2024.

Integration with Strategy: Material impacts, risks and opportunities are closely integrated with the "CLAIM 5" strategy, particularly through:

• Sustainability strategy focusing on five pillars (circularity, digitization, nature-positive materials, fighting microplastics, zero emissions)
• ESG targets integrated into executive compensation (LTI programs)
• Risk management system integration of ESG factors
• Strategic initiatives addressing material topics across environment, social, and governance aspects

Business Model Interaction: Material sustainability matters directly influence business model execution through operational changes, product development innovations, supply chain management, and stakeholder engagement strategies.

Double Materiality Assessment Process: In 2024, HUGO BOSS conducted a comprehensive double materiality assessment (DMA) in preparation for compliance with ESRS standards. The process was designed to identify material sustainability impacts, risks, and opportunities.

Impact Assessment Methodology:

• Led by Investor Relations in collaboration with Corporate Sustainability and Risk Management departments
• Started with comprehensive catalog of ESG impacts, leveraging previous GRI-based materiality analysis
• Expanded catalog through desk research using frameworks like SASB standards for textile and apparel industry
• Covered potential and actual impacts on environment and people across entire value chain
• Used systematic approach with ESRS criteria for clarity and consistency
• Conducted on gross basis, excluding influence of mitigation measures
• Applied uniform thresholds: negative impacts material if in upper half of assessment scale, positive impacts if in upper quarter

Risk and Opportunity Assessment:

• Led by Risk Management and Internal Controls department
• Conducted structured interviews with internal risk and opportunity experts
• Applied ESRS methodology with clear framework and guidelines
• Analyzed likelihood of risks and potential business consequences
• Assessed financial materiality on qualitative basis
• Used likelihood and magnitude thresholds aligned with general risk assessment methodology
• Material risks classified as those with combined likelihood and magnitude rated high or critical

Stakeholder Engagement:

• Engaged numerous internal stakeholders through interviews and desk research
• Incorporated external stakeholder perspectives through internal experts who regularly engage with interest groups
• External ESG consultants monitored and reviewed the DMA process
• Oversight by CFO/COO ensuring alignment with strategic priorities

Integration and Validation:

• Cross-functional exchange examined correlations between impacts, dependencies, risks, and opportunities
• Results integrated into existing risk management system
• Joint review by Investor Relations, Corporate Sustainability, and Risk Management
• Final validation with all internal stakeholders and senior management

ESRS Application: This combined non-financial statement was prepared in partial application of Set 1 of the European Sustainability Reporting Standards (ESRS) as a framework in accordance with Section 289d HGB. The originally planned full application of ESRS was not realized due to lack of legal implementation in Germany by December 31, 2024.

Material Topics Coverage: The content is based on a double materiality assessment conducted in accordance with ESRS requirements. The analysis indicated that nine of the ten ESRS topics are generally considered material for HUGO BOSS in fiscal year 2024:

Material ESRS Topics:

• ESRS 2 (General Disclosures)
• E1 (Climate Change)
• E2 (Pollution)
• E3 (Water and Marine Resources)
• E4 (Biodiversity and Ecosystems)
• E5 (Resource Use and Circular Economy)
• S1 (Own Workforce)
• S2 (Workers in the Value Chain)
• S3 (Affected Communities)
• G1 (Business Conduct)

Disclosure Scope: However, the content included in this combined non-financial statement does not fully reflect the results of the double materiality assessment. The "Overview of ESRS Disclosure Requirements" section provides detailed information on the presence and scope of ESRS disclosure requirements.

Current Status: The information disclosed in accordance with ESRS is based on current interpretation of the standards. As a company subject to the Non-Financial Reporting Directive (NFRD), HUGO BOSS publishes this combined non-financial statement consistent with previous years' approach while preparing for future CSRD compliance.

Additional Information: The section "Additional Disclosures on the Combined Non-financial Statement" contains comprehensive details on ESRS disclosure requirement coverage and implementation approach.

Substances of concern and substances of very high concern

Policies related to pollution

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 minimize 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 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 formulations that need to be phased out. 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 our own production facilities, to verify their chemical inventories against the MRSL.

To ensure that our products are free from harmful substances, we have established a Restricted Substances List (RSL) and Product Compliance Guideline. These comprehensive documents define product safety and marketability requirements, 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 highest 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 its standards, fostering collective commitment to product safety and sustainability.

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. By adopting the ZDHC "Roadmap to Zero" framework, we have enhanced our ability to monitor and improve chemical management across the supply chain. Additionally, as a member of the AFIRM Group, we leverage their tools to maintain high standards of chemical compliance and product safety at every stage of production.

Recognizing the environmental risks posed by chemicals in products, HUGO BOSS eliminated the use of harmful per- and polyfluoroalkyl substances (PFAS) in production processes as early as 2018. This ban is now an integral part of our RSL and we remain committed to phasing out additional harmful substances and materials in the future.

To ensure our products are free from substances of very high concern (SVHC), we conduct regular monitoring through rigorous 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 consumers and the environment.

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. We have set an interim target for all strategic Tier 1 suppliers using wet processes to meet the requirements by 2025. In 2024, 42% of the production sites in scope met the chemical inventory requirements (2023: 47%), including 65% of our strategic suppliers (2023: 67%). For wastewater tests, 62% of the production sites in scope complied with the specifications (2023: 58%), including 85% of our strategic suppliers (2023: 78%).

ESRS E2-5 status

According to the ESRS disclosure requirements index, ESRS E2-5 is marked as "not applied" in the company's reporting.

Resource Inflows

HUGO BOSS relies on a variety of resources to support its operations and value chain activities. These include both natural and synthetic materials, as outlined in the following tables. Biological materials such as cotton, wool, and leather constitute a significant share of input materials and are carefully selected to meet sustainability standards, prioritizing certified and consciously managed supply chains. Synthetic materials, such as polyester and polyamide, also form an integral part of input materials. To reduce reliance on virgin resources, HUGO BOSS is increasingly focusing on recycled alternatives. The company is fully committed to continuously expanding the use of better and recycled materials across its brands' collections.

Natural and Synthetic Materials Used

Notes:

1. Materials classified as more sustainable by HUGO BOSS must either be certified by an external standard such as the Organic Content Standard (OCS), be recycled, or be sourced through mass balance systems like Cotton made in Africa (CmiA). Specifically, cotton is also considered more sustainable if it comes from verified regenerative farming practices.
2. Recycled materials are generally classified as "more sustainable," so the values presented here also contribute to the share of more sustainable materials.
3. "Other" biological materials include other animal-derived materials, such as alpaca wool or goat hair.
4. "Other" fossil-based materials include acrylic or polypropylene.
5. "Other" cellulose-based materials include cupro and acetate.

Packaging Materials Used

Packaging is essential for protecting products during transport and shipping, while reinforcing the brands' premium positioning in the global apparel market. In 2024, 84% of product packaging was made from renewable materials (2023: 85%). As part of the commitment to resource conservation, the company is transitioning to more sustainable raw materials, including certified and recycled sources. In 2024, 92% of paper packaging was certified (2023: 93%), and 59% was made from recycled material (2023: 70%), reflecting dedication to sourcing from consciously managed forests and reducing the use of virgin materials. In 2024, 100% of packaging materials were recyclable (2023: 100%).

Resource outflows

Circular products and design

HUGO BOSS aims for 80% of its apparel products to be circular by 2030 (measured by production volume, number of apparel items). In 2024, the company increased this share to 33%, making further progress toward the 2030 goal (2023: 17%).

Circular products at HUGO BOSS must meet three criteria:

• Using renewable or recycled raw materials
• Being long-lasting
• Being designed for recycling (e.g., by reducing the use of material mixes)

The company adheres closely to circular.fashion's Circular Design Criteria, offering a comprehensive framework for circular textile products. HUGO BOSS is continuously working on increasing the use of recycled post-consumer textile waste in its collections.

An internal Circular Product Policy provides detailed information on:

• Internal organizational responsibilities
• Circular design criteria
• A list of materials that can be used in circular styles
• Guidelines on how to design products to be recyclable

Product innovation and durability

The company emphasizes "optimizing wearing comfort through the increased use of innovative materials" and focuses on "high quality and durability of our collections" as part of its sustainability strategy. BOSS Performance product range combines traditional formalwear outfits with innovative sportswear elements, including super-stretchable, machine-washable, lightweight, wrinkle-free, and water-repellent products.

Packaging recyclability

In 2024, 100% of packaging materials were recyclable (2023: 100%), demonstrating the company's efforts to conserve resources and reduce waste.

Materials with recycled content

See detailed breakdown in materials table showing recycled content percentages for various material categories (cotton, polyester, polyamide, etc.).

Waste

Total waste generated

Total waste disposed in 2024: 7,870 metric tons (2023: 8,916 metric tons)

Note: This figure represents waste from own operations and is disclosed as an additional ESG data point below materiality thresholds.

Waste management approach

The Environmental Policy underscores HUGO BOSS' commitment to sustainability by setting strict standards to minimize environmental impact, conserve resources, reduce water consumption, and enhance energy efficiency across operations and supply chain. The policy addresses significant environmental impacts and requires resource efficiency.

Monitoring involves:

• Tracking energy use
• Pollution levels
• Compliance with ISO 14001 (environmental management system) and ISO 50001 (energy management system)

Suppliers are encouraged to adopt best practices, with the policy applying globally and in alignment with local regulations. The company actively collaborates with organizations such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Zero Discharge of Hazardous Chemicals (ZDHC) program.

Packaging waste reduction

HUGO BOSS is committed to reducing packaging and continuously improving its environmental impact through responsible material choices and innovative solutions.

2024 achievements:

• Successfully reduced packaging weight per item by 15% compared to 2023
• Target: achieve a 30% reduction in single-use plastic packaging per item by 2030 (excluding hangers and suit bags), compared to 2023 levels
• In 2024, single-use plastic packaging slightly increased by 4%

This target encompasses product, transport, e-commerce, and service packaging.

Waste minimization initiatives

Eightyards subsidiary: In 2024, HUGO BOSS successfully launched Eightyards, a subsidiary dedicated to the reuse and recycling of surplus materials. The concept is strategically aligned with the company's commitment to accelerate resource-efficient production processes and the reduction of post-production waste. Officially starting operations in early 2025, Eightyards aims to become a leading player in recycling and repurposing surplus materials across various industries, including fashion.

Digital development: The digitalization of product development (around 65% of products in 2024) allows for "predicting trends more accurately, better anticipating customer preferences, and further reducing the need for physical samples, thus minimizing waste and reducing CO2 emissions."

Inventory management

The impairment on inventories resulted in a net expense of EUR 13,517 thousand (2023: impairment reversals of EUR 35,970 thousand), which is included in the cost of sales.