Apparel and Footwear Benchmark Company Scorecard 2018
Appendix: Non-scored information
Hugo Boss AG
Commitment(s) to address forced labor in the supply chains: The company makes the following commitments:
1. Achieving “complete transparency” for all finished goods suppliers “concerning social, environmental and economic performance factors as well as their digitally supported supply chains” by 2025. 2. Training 100% of its first-tier suppliers on social and environmental topics by 2018. 3. Increasing the sourcing of sustainable cotton through certification schemes such as YESS, Better Cotton Initiative and the Cotton LEADS program. It states it will identify mid and long-term targets in 2017, discuss them with its partners and make them public. 4. Establishing targets regarding sustainability governance systems at the supplier level and introducing “a governance model for the value chain (incl. an in-house code of conduct) for strategic finished goods suppliers and the assumption of responsibility for their own suppliers” by 2020.
Compliance with Regulatory Transparency Requirements1: Statement published? Statement meets minimum requirements? UK Modern Slavery Act The company has published Director signature: Yes (signed by Mark Langer, a statement dated February Hugo Boss AG CEO and Stephan Born, Hugo 2018 for the financial year Boss UK Ltd Managing Director) 2018. Board approval: Yes Link on homepage: Yes
California Transparency The company published a Easily understood link on homepage: Yes (US in Supply Chains Act disclosure titled “California website: “CA Supply Chain Disclosure”) Supply Chain Disclosure” on Reporting on required topic areas: Yes its website.
Business Model To put the KnowTheChain analysis into context, companies are invited to disclose relevant information on their business model, such as sourcing countries, owned versus outsourced production, etc.
The company discloses the following information:
“Business model: The HUGO BOSS Group is headquartered in Metzingen (Germany) and is one of the leading companies in the premium segment of the global apparel market. The Company offers a comprehensive range of high- quality fashion as well as accessories in the womenswear and menswear segments under the BOSS and
1 This is based on our assessment of a company's reporting on the requirements set forth in the Modern Slavery Act 2015 and the California Transparency in Supply Chains Act. Statements under the UK Modern Slavery Act were analyzed in accordance with the methodology of the Modern Slavery Registry.
Research conducted through June 2018, or through August 2018 where companies1 provided additional disclosure or links. For more information, see the full dataset here.
HUGO brands. The portfolio consists of classic yet modern tailoring, elegant evening wear and casualwear, shoes, leather accessories as well as licensed products such as fragrances, eyewear, watches and children’s fashion. As an internationally operating company, the Group sells its collections in 127 countries around the world (2016: 127 countries), with Europe as the largest market accounting for 62% of sales. Further important markets are in the Americas (21% of sales) and Asia/Pacific (14% of sales). The licensing business accounts for 3% of sales. The Group’s own retail business represents the most important sales channel. The Group is increasingly linking its physical retail stores with its e-commence business and is further developing omnichannel services.
Sourcing countries: Bangladesh, Bulgaria, China, Croatia, Egypt, Germany, India, Indonesia, Italy, Laos, Macedonia, Malaysia, Peru, Poland, Portugal, Romania, Sri Lanka, Serbia, Slovenia, Thailand, Tunisia, Turkey, Ukraine, United Kingdom, Vietnam
Production: Beyond own production, around 80% of the sourcing volume, thus the majority, is manufactured by independent suppliers through contract manufacturing, or is purchased as full merchandise. The production facilities for own production as well as partners in the area of contract manufacturing and full merchandise are referred to as finished goods suppliers at HUGO BOSS. The Company also sources raw materials including fabrics and trimmings such as buttons and yarns from raw materials suppliers.”
Research conducted through March 2018 2 2