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Sustainability Report We are Made for Change SUSTAINABILITY & RESPONSIBILITY REPORT 2018 WE ARE MADE FOR CHANGE CIRCULAR BUSINESS SCALE FOR GOOD MOVEMENT MAKERS HOW WE REPORT & DATA APPENDIX Contents We are ‘Made for Change’ Scale for Good Movement Makers 3 CEO Welcome 31 Doing Well by Doing Good 61 Brands with Impact 5 VF Corporation 62 Impactful Work 32 Environment 9 Value Chain 63 Developing a Diverse Workforce 33 Reducing Our Footprint 10 Key Trends in 2018 66 Our Workforce at a Glance 36 Smarter about Energy 12 Our ‘Made for Change’ Strategy 67 Building our Safety Culture 38 Greening our Buildings 17 How We Manage Sustainability 68 Empowering our Associates 39 The Path to Zero-Waste Facilities Circular Business 40 Saving Water in a Thirsty Industry 70 Impactful Brands 71 Putting Purpose at the 23 Doing Business Better 41 Key Materials & Products Heart of our Brands 42 Tracing our Raw Materials 24 Circular Business Models 72 Breaking Down Barriers 43 Shifting to more Sustainable Materials 25 Renting our Products for Change 46 Microfibers may have a Big Impact 25 Extending our life through 47 Safely Deliver High-Performing Products 73 Impactful Interventions recommerce 47 Good Chemistry Makes Great, 74 Striving for One Million 26 Second Life Safe Products Volunteering Hours 27 Repairing our Products 75 Investing in Communities 50 Responsible Sourcing & 27 Reusing our Products Worker Well-being How We Report & 28 Circular Design 51 Respecting Human Rights Data Appendix 29 Design for Circularity Philosophies 54 Valuing Workers’ Lives 78 About this Report 55 Freedom of Association 79 Materiality and Collective Bargaining 80 Data Appendix 55 Fair Wages 56 Supplier Assessment and Capacity-Building 58 Worker and Community Development Effective for the fiscal year April 1, 2018 through March 30, 2019 (‘Fiscal Year 2019’), VF changed its fiscal year from the Saturday closest to December 31, of each year to the Saturday closest to March 31, of each year, while this report covers calendar year 2018. In addition, different criteria are used for certain items (e.g., the number of distribution centers) than those used in our Annual Report on Form 10-K for Fiscal Year 2019 (the ‘2019 Form 10-K’). Therefore, certain numbers in this report may vary from those reported in the 2019 Form 10-K. Also, because this report covers calendar year 2018, it references and includes information from certain businesses that have been sold or spun off during the interim period. VF Made for Change Report 2018 | 2 WE ARE MADE FOR CHANGE CIRCULAR BUSINESS SCALE FOR GOOD MOVEMENT MAKERS HOW WE REPORT & DATA APPENDIX CEO Welcome Across VF Corporation is a commitment to be more than just an apparel and footwear company. We strive to be a purpose-led, performance-driven enterprise that leverages the strength of our business to deliver positive impacts for people and the planet we share. Our sustainability journey is 119 ‘Made for Change’ was important then. years in the making. In more recent It’s even more important today as we years, we’ve developed aggressive continue to witness the growing social, plans, partnered with others around environmental, political and economic the world, and acted with urgency to challenges that are affecting our daily operate our business in increasingly lives and threatening our shared future. responsible ways. Many of these challenges have grown so large and complex that traditional In 2016, we announced our ‘Made for institutions responsible for addressing Change’ Sustainability & Responsibility the issues can’t deliver solutions alone. Strategy. The strategy details our focused approach to balancing growth, So, we’re stepping up. value creation and innovation with our steadfast commitment to lead our industry into a more sustainable future. VF Made for Change Report 2018 | 3 WE ARE MADE FOR CHANGE CIRCULAR BUSINESS SCALE FOR GOOD MOVEMENT MAKERS HOW WE REPORT & DATA APPENDIX CEO Welcome | continued As one of the world’s largest apparel, What’s more, our own associates expect • Elevating the use of recycled materials We’re proud of our achievements but footwear and accessories companies, us to set the standard by demonstrating in many of our products, while at the know there is so much more we can do. we believe we’re uniquely positioned to that even the largest companies can excel same time continuing to improve the At VF, we have a bias for action. It’s not be a catalyst for change around issues that while also doing good. As we prove time performance of these types of materials. in our nature to stand on the sideline and align with our business. Therefore, we’ve and again, we will create value not only • Improving the environmental footprint wait for someone else to do something. declared our commitment to place our for our shareholders, but for a broad set of our distribution centers, retail stores Instead, we’re committed to leading the commitment to being purpose led on par of stakeholders. and offices. change required to continually lessen our with our commitment to delivering value industry’s impact on our natural resources Through 2018, guided by our purpose • Reducing water consumption in our to shareholders and stakeholders alike. and climate, and ensure human rights are and our ‘Made for Change’ Strategy, our owned factories and those of our prioritized throughout the global apparel VF’s purpose is clear: We power teams around the world advanced our contract suppliers. and footwear supply chains. movements of sustainable and active work, including: • Minimizing impacts of endangered lifestyles for the betterment of people That’s why we’re building on our ‘Made • Beginning the process to map forests by planting millions of trees and our planet. This purpose is anchored for Change’ Strategy – in line with the VF’s global supply chain impacts in Inner Mongolia’s Horqin Desert in our desire to create and maintain even UN Sustainable Development Goals through source maps that trace to improve the area’s landscape. stronger, more intimate connections (SDGs) – and accelerating our pace to our products’ origins. • Supporting communities during with our consumers by engaging in the deliver on our purpose-led commitments natural disasters, from the hurricane- societal issues that are relevant and • Committing to using sustainably- and lead by example. ravaged Caribbean islands to the important to them. grown cotton. wildfires in California. We hope you find this report to be • Working closely with healthcare informative and reflective of our bold partners to help factory workers intentions to advance sustainability and “ Looking toward the future, we will advance our in Bangladesh improve their responsibility across our global enterprise. eyesight and, And we encourage you, along with all our stakeholders, to continue holding commitment to power movements built around • Making clean water more accessible us accountable for progress. to communities in Cambodia. the intersection of our unique capabilities, the Sincerely, industries and communities where we operate, and where there are clear societal needs.” Steve Rendle, VF Corporation Chairman, President and CEO GRI 102-14 VF Made for Change Report 2018 | 4 WE ARE MADE FOR CHANGE CIRCULAR BUSINESS SCALE FOR GOOD MOVEMENT MAKERS HOW WE REPORT & DATA APPENDIX Led by our Board of Directors and Executive Leadership Team, (ELT) our Company has a heritage of 119 years VF Corporation of building the world’s most iconic brands, including Timberland®, The North Face® and Vans®. At the same time, we are working to minimize environmental impacts, improve the lives of our workers and deliver strong shareholder returns. We are building on a legacy of success VF Corporation is a purpose-led, OUR GUIDING PRINCIPLES to create an even better VF for the future. Our Guiding Principles inform how performance-driven and value-creating Our relentless pursuit of business success we show up in all aspects of our work. is fueled by our desire to use our scale and organization, employing more than They set out the expectations we resources to improve people’s lives and have for ourselves and each other. 68,000 associates, working with make the world a better place. Embracing these behaviors and 1,700+ suppliers in 60 countries and attitudes as a whole enables us to operating in more than 170 countries. foster an inclusive and respectful culture where everyone can thrive. 119 LIVE WITH INTEGRITY. Be authentic and do the right YEARS HERITAGE IN thing, always. BUILDING THE WORLD’S MOST ICONIC BRANDS ACT COURAGEOUSLY. Think and act boldly. BE CURIOUS. Explore the world, learn and evolve. GRI 102-1-2 ACT WITH EMPATHY. GRI 102-4 Seek to understand and respect others. GRI 102-7 PERSEVERE. MORE ABOUT OUR ORGANIZATION CAN BE FOUND IN OUR FISCAL YEAR Persist and work together as One VF. 2019 ANNUAL REPORT VF Made for Change Report 2018 | 5 WE ARE MADE FOR CHANGE CIRCULAR BUSINESS SCALE FOR GOOD MOVEMENT MAKERS HOW WE REPORT & DATA APPENDIX VF Corporation | continued OUR BRANDS 19 OUTDOOR ACTIVE OWNED-MANUFACTURING FACILITIES 1.5m UNITS OF APPAREL AND FOOTWEAR WORK JEANS1 PRODUCED EVERY DAY 370m+ CONSUMERS OF VF BRAND PRODUCTS 1 On August 13, 2018, VF announced its intention to spin-off its Jeans business, which includes Wrangler®, Lee® and Rock & Republic® brands, into an independent, publicly-traded company. The spin-off was completed on May 22, 2019. The Jeans business, which also includes Wrangler® RIGGS brand and the VF OutletTM business, represented approximately nineteen percent of VF revenue and operating income during the year ended March 2019 on a VF-historical reporting basis. The ‘Made for Change’ report includes our 2018 Jeans business data and commentary. VF Made for Change Report 2018 | 6 WE ARE MADE FOR CHANGE CIRCULAR BUSINESS SCALE FOR GOOD MOVEMENT MAKERS HOW WE REPORT & DATA APPENDIX VF Corporation | continued LIVING OUR PURPOSE DEFINING OUR PURPOSE We want to go even further, moving beyond generating profits and good We use our size, scale and resources Facilitating the ability to influence the industry – as well as for individuals, communities governance to put purpose at the the people whose passions we fuel – and our planet to thrive, and heart of our business.
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