Corporate responsibility Report

WE are PVH orporate Responsibility (“CR”) is central to how We report our performance under the Global Reporting About PVH Corp. we conduct business. We are committed to Initiative’s (“GRI”) Standards under the “Core” option and C making a true impact on the people, the in line with the ten principles of the UN Global Compact With a history going back over 135 years, PVH has excelled About environment and the communities where we work and (“UNGC”). We continue to engage with the GRI GOLD at growing brands and businesses with rich American live, and communicating our progress transparently Community, a multi-stakeholder network dedicated to heritages, becoming one of the largest apparel companies with stakeholders. developing a more sustainable global economy. in the world. We have over 36,000 associates operating in over 40 countries and nearly $9 billion in annual revenues. This, our tenth annual CR report, provides information Please see our GRI index online Our and performance data on our operations during our at www.pvh.com/cr We own the iconic , CALVIN KLEIN TOMMY 2017 calendar year. HILFIGER, Van Heusen, IZOD, ARROW, Speedo 1,

Warner’s, Olga and Geoffrey Beene brands, as well as the In this report, we share our progress against the ten CR digital-centric True & Co. intimates brand, and market 2017 CR commitments we introduced in 2016. We explore the a variety of goods under these and other nationally and

importance of addressing social and environmental issues, internationally known owned and licensed brands.

share our challenges and achievements, and highlight the next steps on our journey. For further details on our company, visit:

Report www.pvh.com/Company

TABLE of CONTENTS

02 04 06 08 10 12 16 20 22 24

Intro to Highlights Awards A LETTER From A Letter CR Assessment Human Safe Inclusion Our Commitments OUR Chairman from OUR Program Rights Workplaces AND Diversity Associates & CEO LEADERSHIP Reaches Next Level

Glossary of NAMES and

Abbreviations PVH CORP. CR REPORT 2017 ABOUT OUR CR REPORT 01

We have included on pages 42 and 43 a glossary of names and abbreviations for organizations and tools referred to throughout the Report. Please refer to this section if you are not familiar with one of the names or abbreviations included in this report.

38 40 42 28 30 32 34 36

Responsible WATER Sustainable Sustainable Greenhouse Communities performance Glossary 1 The Speedo brand is licensed for North America and CHEMICAL Packaging Materials Gases summary the Caribbean in perpetuity from Speedo International Limited. MANAGEMENT OUR HUMAN water COMMITMENTS 1 RIGHTS 6

Mapping our strategy Safe Sustainable to the U.N. Sustainable Workplaces packaging Development Goals 2 7

The U.N.’s Sustainable Development Goals* (“SDGs”), will help guide global efforts to achieve sustainable development over the next 13 years. inclusion & Sustainable We have developed our CR strategy to support the SDGs, as we continue diversity materials our efforts to achieve positive impacts across our value chain. 3 8 Human rights

safe workplaces

inclusion our greenhouse & diversity Associates gases our associates 4 9 Responsible Chemical Management Water

SUSTAINABLE Responsible Communities PACKAGING Chemical SUSTAINABLE Management MATERIALS 10 GREENHOUSE 5 GASES

COMMUNITIES

* See the Glossary for more information. PVH CORP. CR REPORT 2017 2017 CR REPORT 02 INTRODUCTION TO COMMITMENTS PVH CORP. Corporate Responsibility highlights

5. Responsible 9.Greenhouse

Chemical Gases PVH CORP. CR REPORT 2017 CORPORATE RESPONSIBILITY HIGHLIGHTS 05 Management 1.Human 7. Sustainable Our Chairman and CEO, Emanuel Chirico, confirmed our support Announced that 25 million men’s P ackaging Rights dress shirts we produce across Approximately 70% of our for the Paris Climate Accord and Made the Tell PVH global our brands will be certified as we set a global target to reduce 4. Our on-product packaging (e.g., reporting hotline available free from harmful chemicals and greenhouse gas emissions at our Associates hangtags, stickers, tissue paper, to every worker in our will bear the STANDARD 100 by own facilities by 35 percent Expanded our Parental etc.) was recyclable. supply chain to empower OEKO-TEX® label in 2018.2 by 2030. and give a voice to our Leave Policy in the U.S. to entire workforce. cover foster parents, as well 3. Inclusion as secondary caregivers. & Diversity 6. Water 8. Sustainable Launched WERK, the 10. Communities 2. Safe business resource group Created global partnership Materials Contributed nearly $24 million through Workplaces for our LGBTQ community. with WWF* to steward Launched our global Animal product, cash, associate contributions Platinum sponsor of the NYC water conservation in four Welfare Policy. Joined BCI* and retail store consumer donations Improved safety across our Pride March in which 800 key basins. as a global member and in 2017. factories in Bangladesh associates marched. began to source more by addressing nearly 95 sustainable cotton. percent of all issues found, making us a top remediator of over 200 Accord* members. 2 For more information on OEKO-TEX please see our Chemicals chapter on page 28. * See the Glossary for more information. * See the Glossary for more information. PVH CORP. CR REPORT 2017 2017 CR REPORT RESPONSIBILITY HIGHLIGHTS PVH CORP. 04 CORPORATE Corporate Responsibility Top 100 companies on global diversity & inclusion index Thomson reuters AWARDS

#3 in the industry Pioneer of Change magazine Runway of Dreams forTune The World’s Most PVH Foundation wins Admired Companies the Pioneer of Change Award

Best Companies 100% on Corporate to Work for in Fashion Equality Index The Business of Fashion Human Rights Campaign Foundation

top 10% Ace Award in Five categories for sustainability lead Awards Accessories Council Including 3rd Place 21st Annual ACE Awards for Best Corporate University

30% Female 100 Best Representation Corporate Citizens The Women’s Forum of New York CR magazine Recognized PVH for 30% female Ranked #61 including representation on our ranking #27 overall Board of Directors on climate change

One of America’s 100 Most JUST Companies & JUST CAPITAL FORBES Ranked 25th overall and 2nd WEare in Household Goods & Apparel

PVH CORP. CR REPORT 2017 2017 CR REPORT PVH CORP. 06 AWARDS PROUD

Emanuel Chirico Chairman and Chief Executive Officer

PVH would not be where it is today without A Letter from our industry-leading talent. We believe our people are a reflection of our organization Our Chairman & CEO and it is our responsibility to encourage an inclusive environment, which ultimately inspires change from within. To this extent, VH had an outstanding year in 2017 – from the ever-increasing prominence of our brands, we made significant progress on empowering to the performance across our businesses, to our achievements in working to make a positive women both within PVH, as well as in our P impact on the industry and the communities where we live and work. Driven by our long-term supply chain. We also offered additional vision, we invested in our brands and areas that are most impacted by the changing dynamics courses through PVH University and in the industry – the growing prominence of digital, the importance of having a nimble, responsive expanded the scope of our Business and sustainable supply chain, and our essential commitment to driving consumer engagement. Resource Groups.

While we, like many other global consumer companies, faced overarching geopolitical headwinds and We believe we are developing a strong an evolving consumer environment, the power of our brands, our businesses and, most importantly, foundation for continued success by creating our people drove our company forward. We encouraged associates throughout our organization to be a workplace that appreciates our associates forward-thinking, enhancing our brands and their competitive positioning across product lines and and acknowledges that our people are our geographies, and better aligning our business to make it easier to initiate and effect change. greatest asset. We are proud to note that our efforts were recognized publicly in a We recognize our responsibility as an industry leader and one of the world’s largest apparel companies variety of ways. In 2017, Thomson Reuters to address the industry’s social and environmental impacts and contribute to a fair, healthy future for all. ranked us as one of the top 100 companies We know we have the opportunity to make positive impacts throughout our value chain by empowering in its Global Diversity & Inclusion Index. the people with whom we work, preserving the environment and supporting our communities. We also were ranked No. 25 by Forbes and JUST Capital on their annual list of most We view Corporate Responsibility as an opportunity to mitigate risk, drive efficiencies and maximize just companies, and were honored with value, and take a leadership role in moving the industry in a positive direction. We are proud of the the Sustainability Award at the Accessories comprehensive CR program we have built, and we believe that it is a key factor in driving our growth, Council Annual ACE Awards. performance, creativity and success. The approach of our CR program goes from “source to store” – focusing on worker empowerment, environmental preservation, and community engagement and impact. In the coming years and beyond, we will use These three pillars are the foundation of our CR strategy, which aligns with the United Nation’s SDGs our role in the industry to strengthen and through collaboration with key partners. grow our partnerships, change workplaces for the better, enhance local communities From a CR perspective, 2017 was an important year for us. Partnership was a key highlight in 2017, and protect our shared environment. as we took leading roles in many multi-stakeholder initiatives and industry working groups. We set key We will only achieve this by working targets for both greenhouse gas emission reduction and elimination of harmful chemicals, and also took a together to transform the apparel industry leadership role on water conservation and stewardship. Philanthropy remains at the heart of our company, and implement CR innovations at scale and our associates’ commitment to giving back to our communities was exemplified in 2017 through the across the industry. We are PVH; we are launch of the PVH Associate Relief Fund, which provides an opportunity for associates to unite and help united, working together for a safer, cleaner, each other in times of need. and fairer world.

Emanuel Chirico Our Chairman & Chief Executive Officer LEADERSHIP A Letter from CR Leadership

VH has always understood the importance of being a leader in CR, and was one P of the first companies to adopt a code of conduct on human rights

and the environment in 1991. Now, The PVH CR team visits the PVH Archives over 25 years later, we are facing in Long Island City, New York. new challenges and increasing It is hard work to make meaningful This report highlights our industry disruptions, but we are also change at scale. We affectionately major corporate responsibility welcoming new possibilities. This has call this the “plumbing,” meaning the accomplishments in 2017. We hope given us an opportunity to step back back-end operational things we do to you find it educational as you learn and consider what it means to be a create change. We don’t make videos how we are working to be the best leader today and what we are trying about it. We don’t write press releases global corporate citizens we can be. to accomplish. about it. Often the work goes unheard We look forward to continuing to and unseen. But it is precisely this challenge PVH to make the We have been in our roles for work, and the impact of this effort most positive impact possible, approximately six years and, in the field that inspires us to come and appreciate any feedback. throughout this time, our North Star to our offices every day. This work has always been driving impact. includes the lengthy project plans If we cannot see the positive impacts to evolve our supply chain program Melanie Steiner, of our work, then we shouldn’t be that impacts over 2,400 factories; the Chief Risk Officer doing it. More recently, this concept innovation we are driving to change has evolved to include impact on a the creation of our products to be large scale. There has been a less resource intensive; and the over Marissa Pagnani McGowan, lot of progress over the years on 20 partnerships we are involved in to Group Vice President human rights issues, reducing waste, galvanize the industry. It all counts, Corporate Responsibility and shifting to renewable energy. and is part of our persistent goal That said, there is still much work to drive impact and transformation to be done, forcing PVH to rethink throughout the industry. PVH CORP. CR REPORT 2017 L etter from CR LEADER s HIP 7 everything from business models, to talent strategy, to satisfying our consumers with sustainably made products. All of this requires PVH to work together as a company and more broadly, as an industry, embracing key external partnerships as we go.

Marissa Pagnani McGowan Melanie Steiner Chief Risk Officer Group Vice President, Corporate Responsibility

PVH CORP. CR REPORT 2017 2017 CR REPORT 10 A L etter from CR LEADER s HIP PVH CORP.

Pro CR

12 CR ASSESSMENT PROGRAM PVH CORP. CR REPORT 2017 Reaches NextLevel

and areflectiononus. as anextensionofourownassociates our suppliersandthefactoryworkers overall supplierconduct,asweview in advancingbothhumanrightsand been andcontinuestobealeader business partners,PVHhasalways standards forsuppliersandother one ofthefirstcompaniestoadopt issued morethan25yearsago.As conduct, “ASharedCommitment,” conjunction withourcodeof program, whichwascreatedin

T he cornerstoneofour CR programisthePVH supplier assessment Assessment gram

way fortheapparelindustry. created aprogramthatisleadingthe and ourvendorpartners,wehave team, ourinternalsupplychain a truepartnershipamongourCR innovative, collaborativethinkingand new waveofpressingissues.Through to thenextlevelandresponda meaningful waystotakeourprogram supplier programinanumberof past fewyears,wehaveevolvedour environmental perspective.Overthe CR frombothahumanrightsand our CoreValues andapproachto best-in-class partnerswhoshare We continuallystrivetoworkwith

V made significantstrides. implement. We areproudtohave be ajourneyandwouldtaketimeto At thetime,weknewthatthiswould the farmthroughtofinishedproduct. facilities thattouchourproduct–from and transparencyaroundallofthe It alsorequiredanincreaseindata as theentiretyofoursupplychain. community-based issues,aswell broader rangeofenvironmentaland scale, byexpandingittoincludea to ourprograminbothscopeand new approachrequiredachange that wecall“sourcetostore.”This to includeavaluechainapproach In 2014,PVHevolveditsCRprogram including millsandwetprocessors. upstream inthesupplychain, and-sew manufacturerstofacilities expand theirprogramsfromcut- This hasrequiredcompaniesto change becameagreaterfocus. the growingimpactsofclimate dyeing andtreatingoffabrics, as hazardouschemicalsusedinthe including environmentalrisks,such Additionally, otherareasofconcern supply-chain workerswereidentified. emerged andbroaderissuesfor Over theyears,newchallenges product) manufacturingfacilities. rights issuesincut-and-sew(finished focus wasconcernregardinghuman Commitment” in1991,ourprimary When weadopted“AShared alue Chain Approa alue ch

continue strivingforeachcomingyear. strides towardachievingandwill upon whichwehavemadesignificant and systems.Thisisalong-termgoal their ownCRprograms,processes factories toadoptandputintoaction solving andempoweringworkers where wearefocusedonproblem- problems) toamorevalue-addedone, from anaudit-ledprogram(finding We alsoknewthatwehad to shift

improvements overthelongterm. us tofocusondrivingresponsible facilities inoursupplychaintoallow mapping thatidentifiesthecritical ensure wehaveanaccurateannual in 2018.We havesetupaprocessto laundries, andotherwetprocessors to broadenthisincludemills, of ourtrimfacilities,andplan conduct acomprehensivemapping We workedcross-functionally to suppliers’ practices. us gainabroaderviewofour facilities forthefirsttimetohelp assessment programtoincludetrim Therefore, wehaveexpandedour occurs earlyinthesupplychain. industry’s environmentalimpact approach. Muchoftheapparel “source tostore”valuechain toward fullyimplementingour a yearofconsiderableadvancements We areproudtoreportthat 2017was TRIM FACILTES

CR ASSESSMENT PROGRAM ASSESSMENT CR 13 2017 REPORT CR CORP. PVH F rom Auditor to advisor: In 2017, we rolled out the Better Work Our CR team is also driving change in Better Work Academy Academy (BWA*), a program through our own business practices. In 2017,

International Labor Organization/ our Responsible Business Practices In addition to expanding to trim International Finance Corporation program was launched to ensure that suppliers and adding comprehensive Better Work*. We are training our we are not inadvertently putting undue environmental assessments, we have former auditors in coaching skills pressure on our suppliers that could become more proactive in supporting and demonstrating to suppliers how result in code of conduct violations, all our suppliers during the audit giving workers an active role can such as excessive overtime hours. process. Historically, our CR auditors help improve working conditions. In By optimizing our own buying and assessed our suppliers annually. In 2018, we will begin working with our sourcing processes, we can further 2017, we started applying a more suppliers to create or enhance their assist our suppliers to fulfill orders advisory approach to our assessment own worker-management committees in a responsible way. program. The focus of our audit by offering training, supporting process is progressively evolving democratic workplace elections and We plan to continue to work with our from tracking performance and sharing problem-solving techniques. partners to further build on what has identifying risks to coaching and been achieved so far and ensure that providing tools to factory management Dan Rees, Program Director, sustainability continues to develop. to manage their own compliance Better Work, commented on our and remediate issues. To achieve partnership noting: “PVH is an this, we made significant investments active partner that engages with in the development of our CR Better Work both at the factory team members. level and in strategic efforts to

transform the industry. Through their

strong engagement in the Better

Work Academy, PVH has made a

commitment to ensure that factories

throughout its supply-chain are

well equipped to ensure continuous FROM HUMAN RIGHTS In 2018, we anticipate that As one of the world’s largest apparel TO a Comprehensive improvements for the benefit of approximately 570 total facilities companies working with the Higg assessment: SAC Higg Index both workers and business. We look in the PVH supply chain, including FEM tool, we are in a strong position forward to continuing our positive In 2017, PVH implemented the SAC approximately 80 that involve wet to drive its integration and adoption collaboration to improve the industry Higg FEM* across our supply chain. processors (e.g., mills, laundries across the industry. in the years ahead.” The Higg FEM is a standardized tool and dye-houses), will complete

for measuring apparel suppliers’ the Higg FEM along with our core Jason Kibbey, CEO of the SAC, notes:

environmental impacts and helping CR assessment. “From contributing to the development them drive improvements across and deployment of the Higg FEM seven impact areas. The tool enables Because we are utilizing a across the value chain, to driving Higg us to manage the environmental standardized tool for the industry, FEM verification efforts, to co-founding impacts in our supply chain more suppliers can share their Higg FEM the Apparel Impact Institute, PVH has effectively and improve the quality of assessment and verification results consistently proven itself to be PVH CORP. CR REPORT CR ASSESSMENT PROGRAM 15 our reporting. Already, we have rolled with other participating apparel a strong leader in the SAC.” out the Higg FEM to 530 facilities in companies, thereby reducing audit the PVH supply chain. Virtually all of fatigue and assessment costs. In time, We participate in various SAC working these facilities have completed the we hope that it will become a tool groups and task teams to ensure the data gathering process and over 50% used by all participants in the apparel adoption of the Higg FEM across the had this data verified. system and benefit the whole industry. entire industry. We are committed to ensuring that the Higg FEM is usable with other industry systems and tools like the SLCP’s* Social Assessment Tool, which will be rolling out in 2018.

* See the Glossary for more information. * See the Glossary for more information.

PVH CORP. CR REPORT 2017 2017 CR REPORT 14 CR ASSESSMENT PROGRAM PVH CORP. 18 TOMMY HILFIGER PVH CORP. ANNUAL REPORT A Rights Human w compliane to improve the livesof BUSINESS PARTNERS of condutFoRSUPPLIERS to “ Our Commitment: P romote adherence

we liveandwork. the peopleincommunities where workers andenhancingthelives of Rights, focusingonempowering U.N. GuidingPrinciplesonHuman Declaration ofHumanRightsandthe We areguidedbytheU.N.Universal fundamental toourCoreValues. who manufactureourproductsis the humanrightsofworkers of ourowncompany. Upholding orkers chain tobeanextension workers inoursupply t PVH,weconsiderthe A SharedCommitment,” ourcode within oursupply chain

values orcannot meetourcodeof with partnersthat donotshareour volume. Conversely, wewillnotwork suppliers withmoreproduction by rewardinghigh-performing enhanced decision-makinginternally goals andexpectations,drive performance tochartprogress against them. Specifically, wetracksupplier on theexpectationswehavefor workers andthatsuppliersareclear workplaces aresafeandfairfor In thisway, wecanensurethat for improvementandremediation. code ofconductandtoidentifyareas order toensurecompliancewithour We conductsupplierassessmentsin , and gobeyond AND OTHER performance expectations. meeting orexceedingoursupplier direct andlicenseefactorieseither in 2017,with90percentofour results withsupplierperformance Overall, wedemonstratedstrong our business. of thetrueintegrationCRinto audit scores),astrongexample operational andCRmetrics(e.g., supplier scorecardthatincludes is controlledthroughanintegrated conduct requirements.Thisapproach

more information). BWA (pleaseseepage15for Better Work byjoiningthe International FinanceCorporation International LaborOrganization/ PVH expandeditspartnershipwith As akeysteptowardthisgoal, through third-partyauditsystems. rather thandrivingcompliance self-management ofCRissues, necessary tofacilitatesupplier the processes,systemsandculture assessment programistocreate The overallgoalofourCRsupplier Self-O Driving Suppler From Auditor to Advisor: page 14formoreinformation). 300 withverifications(pleasesee FEM to530facilities,includingnearly issues byrollingouttheSACHigg a significantfocusonenvironmental human rightsandsafetytoinclude our assessmentprogrambeyond expanded thesubstantivescopeof 100 mills.Atthesametime,we further withagoalofincluding In 2018,wewillexpandengagement over 80strategictrimsuppliers. we expandedthisscopetoinclude (cut andsew)suppliers.In2017, our focuswasonfinishedproduct a broadersupplybase.Traditionally, our assessmentprogramtoinclude In 2017,weexpandedthescopeof Areas are now inScope All F aciltes and Impact wnership

of strategicsuppliers. Gold Programtoanewclass In 2018,wewillexpandour our socialandenvironmentalgoals. strategic projectsrelatedtoadvancing vendors topilotanddriveshared leveraging engagementwithourgold in ninecountries.We arenow Group. Theyaccountfor40factories Ungaran SariGarmentsandEsquel Essentials Ltd.,MASIntimates,PT have fivegoldvendors:TYH,Brandix they mustbeaTier 1vendor. unauthorized subcontracting),and in thepastthreeyears( factories, noranynon-Codeviolations have hadnoOrangeorRed in theGoldProgram,avendormust Furthermore, inordertoparticipate the vendors includeassessmentsusing requirements toqualifyasgold space. Componentsoftherigorous top-performing suppliersintheCR designed torecognizestrategic, supplier-empowerment program piloted ourGoldProgram,a self-management, in2017we As partofourdrivetowardsupplier addressed inatimelymanner. ensure thatconcernsareheardand of ourcodeconductandto about misconductandviolations communication toreportconcerns anonymous (whereallowedbylaw) a directchannelforopenand issue orconcern.Tell PVHcreates to contactPVHdirectlywithany chain. Thehotlineallowsworkers Tell PVH,toallworkersinoursupply our globalreportinghotline,called Additionally, weexpandedaccessto SAI Social Fingerprint*program. e.g., no 3

rated 4

We now

4 3 *

Tier 1vendorsandtheirfactoriesaredefinedasstrategic,long For moreinformationaboutourcolor-rating system, See theGlossaryformoreinformation. please seetheHumanRightspageofPVH.com/CR term partnerswithsustainablebusinessvolumeand/oramulti country footprint. its ownperformance. approach foracompanytoevaluate a standardizedindustry-accepted industry, includinghelpingtocreate business initiativesthroughoutthe forums toexpandresponsible PVH isalsoworkinginvarious payment ofovertimepremiums. excessive workinghoursandnon- of unauthorizedsubcontracting, can helpdrivefewerincidents Responsible businesspractices increasing predictabilityandvisibility. to improveworkingconditionsby adherence, canenablesuppliers specifications, aswellcalendar accurate planningandtechnical purchasing practices,including raising awarenessabouthowgood of theirdailydecisions.We are the humanrightsimplications our associatesbetterunderstand Business Practicesprogramtohelp we launchedourPVHResponsible impacts inthesupplychain.In2017, decisions canleadtoadverse also recognizethatourownbusiness human rightsandlaborissues,we throughout oursupplychainon While wewillcontinuetowork Practices Responsible Businss Focus onurown

HUMAN RIGHTS HUMAN 17 17 2017 REPORT CR CORP. PVH

Responsible Business Enhancements to our Modern Slavery Practices: In Action Licensee Program

In addition to enhancing our In 2017, we held an interactive For our licensed businesses, we commitment to worker and supplier training session on responsible implemented the use of SAI’s Social empowerment, in 2017 we updated business practices with multiple Fingerprint. We have used the SAI and expanded our California teams in our Calvin Klein business Social Fingerprint tool to design Transparency In Supply Chain including supply, merchandising, custom programs intended to build statement to better address forced operations, planning and sales. our licensees’ capability to manage labor, and detailed our policies, The training focused on a real case their own human rights performance monitoring programs and training study developed in partnership with at their supplier factories. Building efforts with regard to forced labor Hirdaramani, one of PVH’s strategic on our initial SAI Social Fingerprint and modern slavery. Modern slavery suppliers, to highlight the effects of pilot, we expanded our efforts to help is defined by the International forecast accuracy on factory utilization licensees establish or improve their Labor Organization (ILO) as “slavery and worker pay. Participants were own CR programs. The program now or slave-like practices, as well as asked to conduct a root cause includes 25 licensees or 77 percent various forms of debt bondage” and analysis of the facts to explore how of our licensees’ supply chains. human trafficking. Additionally, we improved forecasting and clear order We currently rate 87 percent of our began mapping dormitories, hostels projections enable suppliers to plan licensees’ factories as having passed and other living arrangements for production effectively and improve our social audit. We are also providing migrant workers in our supply chain working conditions. support to our licensees to roll out and identifying common challenges,

the SAC Higg FEM in 2018 and such as freedom of movement. Participants responded very positively begin engaging with their factories Our European operations took a to the session. Melissa Hellem, Senior on environmental sustainability. leadership role on modern slavery, Supply Chain Manager, stated: running special projects with the “I believe this is such an important FLA* in Turkey. We aim to introduce topic as we have a responsibility to an even more comprehensive migrant set our partners up for success, in labor strategy in 2018 leveraging Licensee Spotlight: Fair Wages Looking Ahead order to be successful in return. I felt Arvind Fashions Ltd. what we’ve learned from the work the case study was very effective in PVH believes that every worker has a We at PVH are proud of our completed in 2017. As part of our licensee capability opening my eyes to the downstream right to compensation that is sufficient longstanding commitment to human efforts, the PVH CR team conducted impact of our business behaviors.” to meet basic needs and provide rights and the improvements to management system trainings some discretionary income. As a our program that we’ve worked to based on the SAI Social Fingerprint Matt LoGiudice, Senior Buyer, added: founding and participating member implement throughout 2017. In 2018, framework for Arvind Fashions Ltd. “The content was extremely relevant of the FLA, we are committed to we will continue to grow our program, (“AFL”), a joint venture partner and at a global level to understand how ensuring that fair labor practices and including expanding our efforts with licensee located in Bangalore, India. each of our different roles in the safe working conditions are upheld our Gold Program, our approach to Based on the identified gaps, AFL organization influence and impact one in our supply chain. This includes migrant labor and our Responsible and the PVH CR team co-developed another. I think that this course can workers’ rights to fair compensation Business Practices program. We an improvement plan to help have tremendous impact in helping to and the development of publicly will continue this important work, strengthen human rights performance facilitate more open communication disclosed fair compensation supporting the workers in our supply within AFL’s supply chain. Further, between various business partners.” strategies. PVH and other FLA chain as extensions of our associate PVH CR conducted management affiliates are gathering wage data base, and striving to move the apparel system trainings for the AFL Hirdaramani also responded well to and collaborating to determine the industry forward to address the critical compliance team, in line with the the session, noting: “The Hirdaramani best way to engage suppliers to issues of our time. SAI Social Fingerprint framework. Group acknowledges the efforts that advance the payment of a living wage. Since the trainings, AFL has revised PVH CORP. CR REPORT 2017 HUMAN RIGHTS 19 PVH has taken to examine the impact Additionally, PVH CR team members key policies, including audit and of their business practices on our continuously monitor changes in onboarding procedures for the operations. As strategic partners, minimum wages through government factories producing for PVH, in transparency is the foundation on reports, information from country- alignment with PVH CR standards, which our relationship is built. based ILO offices and alerts from our and conducted training sessions The results of this initiative have led to third-party auditing partner, which on PVH compliance requirements a positive impact within our planning maintains a live database of wage for their supply chain partners. This and production processes. We believe data and labor laws. PVH works to has resulted in a reduction in the that all stakeholders need to work ensure that all suppliers meet new percentage of high-risk (Orange rated) collaboratively as the way forward to wage requirements as they come factories within AFL’s supply chain drive sustainable change.” into effect. and a strengthened partnership

with PVH.

* See the Glossary for more information.

PVH CORP. CR REPORT 2017 2017 CR REPORT 18 HUMAN RIGHTS PVH CORP. 14 CALVIN KLEIN PVH CORP. ANNUAL REPORT Workpla Safe safe w Our Commitment: P romote in oursupply chain W

important initiative. to demonstrateoursupportforthis board seatsinceitsinceptionin2013 Accord andwehavemaintaineda PVH isafoundingmemberofthe Fire and BuilingSafety on Bangladesh Acc ord and India. including Ethiopia,Vietnam assessments toothercountries, extend fire,structuralandsafety as membersoftheAccordto drawn uponoursafetyknowledge will neverhappenagain.We have tirelessly toensuresuchatragedy production there,wehaveworked Bangladesh. Whilewehadno of theRanaPlazadisasterin 2018 markedthefifthanniversary accidents intheworkplace.April avoidable injuriesand chain mustbesafefrom orkers inoursupply orking

5

Read moreathttp://bangladeshaccord.org/progress/

available online. factories. AllAccordreportsare issues uncoveredatoursuppliers’ 95 percentoftheover6,600initial Overall, wehaveaddressednearly solutions arebeingimplemented. challenges andensuresustainable staff tomonitorprogress,understand Bangladeshi suppliersandAccord Chain associates,workcloselywith in partnershipwithPVHSupply Our teamoflocalPVHCRadvisors, remediation atitssuppliers’factories. including overseeingtimely demonstrated leadingperformance, companies, PVHhasconsistently members, includingover200apparel garment industry. AmongAccord in theBangladeshreadymade improving fireandbuildingsafety Accord membersarecommittedto local andglobalunionsontheother. brand owners,ontheonehand,and agreement betweenretailersand The Accordisalegallybinding conditions 5

ces

in Bangladesh much safer.” the readymade garmentindustry to thegoalsofAccordhas made reliable supportforandcommitment PVH hasbeenaleader. PVH’s the 2013Accordand2018Accord, throughout theimplementation of the inceptionofAccordand our partnership,noting:“From of theAccordcommentedon Rob Wayss, ExecutiveDirector appropriate byrelevantstakeholders). and buildingsafetywhendeemed responsibility fortheoversightoffire Bangladeshi governmenttoassume industry (includingeffortsbythe Bangladesh ready-madegarment protecting workersrightsinthe in fosteringsafeworkplacesand continuing theidealsofAccord outcome, weremaincommittedto November 2018.Regardlessofthe continuation oftheAccordbeyond has beenalegalchallengetothe to managegoingforward.There compliance responsibilitiestothem building andfiresafety, andtransition government’s owncapacitytooversee work whilesupportingtheBangladeshi designed tocontinuetheAccord’s which becameeffectivein2018is owners andretailers.Theagreement, agreement alongwith175otherbrand we signedanewthree-yearAccord expiration inMay2018.In2017, 2018. TheAccordhadascheduled factories uponitsexpirationinMay inspections atmorethan1,600 Overall, theAccordcompleted

scale upeffortsinothercountries. completion ofthesepilots,LaBSwill and India.Followingthesuccessful structured pilotrolloutsinVietnam the LaBSprogramviaongoing continue tosupporttheevolutionof standards. Movingahead,PVHwill structural, fireandelectricalsafety evaluated againstinternational 2018. Participatingfactoriesare and India,whichwillextendinto programs of100factoriesinVietnam PVH wasinvolvedinLaBSpilot production countries. and bestpracticesinothermajor and helpsusapplyourknowledge foundational learningsoftheAccord Cambodia. Thisworkbuildsonthe including Vietnam,India,Pakistanand in apparelproductioncountries, LaBS aimstoraisesafetystandards in 2017.CoordinatedbyIDH*, global reach,PVHjoinedLaBS* teachings fromtheAccordhavea In anefforttoensurethatthe and Safety Glob *

See theGlossaryformoreinformation. al FocusonHealth

power industrychangetherightway. safety, andenvironmentalstandardsto their facilitiesincludestringentsocial, governance involvingthetenantsand the in-class manufacturingoperationat establishment ofaresponsible,best- organizations tosupportthe government andnongovernmental next frontierbypartneringwithlocal the effortsindevelopmentthis and footwearindustry. PVHisleading dynamic globalhubfortheapparel East Africaisquicklybecominga Ethiopia Ha

w HIP* inEthiopia.Constructionand assa IndustrialP

ark,

place towork. make oursupplychainanevensafer their factories.Ouraimfor2018isto to raisehealthandsafetystandardsin workers bypartneringwithoursuppliers to promotesafeworkingconditionsfor Looking aheadto2018,wewillcontinue Looking Ahead at industrialparksinemergingmarkets. to createablueprintforsafeworkplaces and oursupplierstherehavealsohelped Ethiopia’s largestindustrialpark,PVH strong healthandsafetycultureatHIP, facilities. Bylayingthefoundationsofa independent inspectionsofallHIP regulations bycommissioningstringent, international standardsandlocal were indeedbuiltinaccordancewith tenants association)toensurefactories Hawassa InvestorsAssociation(the the Ethiopiangovernmentand from theoutset.We have supported top globalhealthandsafetypractices committed toensuringcompliancewith 75 percentownedjointventure,have The suppliersintheHIP, includingPVH’s

SAFE WORKPLACES SAFE 21 2017 REPORT CR CORP. PVH 18 TOMMY HILFIGER PVH CORP. ANNUAL REPORT O andDiversity I ual is valueindiviual d every environment where their fullpotential in an inclusive support PVH ciatesasso inrea Our Commitment:

Unconscious Bias courseisa expanding. TheConfronting and ourdiversityeducationis I&D isdeeplyrootedinourbusiness and sustainability. innovation, professionaldevelopment through apassionforsuccess, of ourbusinessandassociates inspire us.We cultivatethegrowth company, guideourdecisionsand values embodywhoweareasa integrity andaccountability. These individuality, partnership,passion, n rooted inourCoreValues: and Diversity(“I&D”)is ur focusonInclusion c lusion

from bias. fair talentpracticesthatarefree and diverseworkplace,promoting new mindsetstoshapeaninclusive associate experience,byfostering We continuetoinvestintheoverall Differences intheWorkplace. Micro-Inequalities andGenerational through ourI&DAcademyin2017: Two additionalcourseswereoffered U.S. arerequiredtotakethecourse. and recentlypromotedleadersinthe Diversity Academycurricula.Allnew University’s (“PVHU”)Inclusion& foundational componentofPVH

T o investin and

regionally andculturallyrelevant. to ensurethatourfocusareasare in Asia(2016)andCanada(2017), We alsoestablishedI&DCouncils aligned withourbusinessstrategy. and toensurethatourinitiativesare perspective towardsourfocusonI&D created in2015toprovideabusiness The PVHU.S.I&DCouncilwas Associate Involvement

ching

Diversity andInclusionIndex. #31 inThomsonReuters’2017 Global Campaign Foundationandranked Equality fromtheHumanRights a 2018BestPlacetoWork forLGBTQ equality. PVHhasbeenrecognizedas up tomarchinsupportofLGBTQ their relativesandfriendssigned Sponsor. Morethan800associates, March, forwhichPVHwasaPlatinum participation inthe2017NYCPride took theleadinspearheadingPVH’s to expresstheirindividuality. WERK authentically andcomfortablyable associates, andtheirsupportersare transgender, questioning,andother where lesbian,gay, bisexual, an inclusiveanddiverseworkplace 2017 andiscommittedtofostering and Knowledge),wasestablishedin connected, Equality, Resourcefulness, Our LGBTQBRG,calledWERK(Well- experiences, challengesandideas. parents wheretheycanshare and createacommunityforworking aims tofosterassociateengagement Working ParentsBRGin2017, which lecturers. We alsolaunched our to network,andhearfromoutside to executivesacrossthebusiness, leaders, togainvisibilityandexposure come togethertohearfromfemale forums thatallowwomenandmento it Forward.”UPWARD hascreated “Step Forward.MovePay was foundedin2016.Itsmantrais: empowering andadvancingwomen, Development), ourBRGfocusingon Women AdvancingRelationshipsand UPWARD, (UnitingProfessional and AssociateEngagement. Development andNetworking, and Hiring,Professional Growth andInnovation,Recruiting business-related areas:Business on oneormoreofthefollowing a sharedpurposeorinterest,centered are associate-ledandcultivatedfrom parents andethnicminorities.BRGs the LBGTQcommunity, working focused ontopicsthataffectwomen, We havegrownournetworkofBRGs* * See theGlossaryformoreinformation.

with disabilities. associates howtobealliesforpeople sponsored otherworkshopstoteach having “noexcuses.”PVHalso associates throughhisstoriesof congenital amputation,Kyleinspired Speaker Series.Bornwithquadruple Maynard aspartofitsInspirational and impressivemountaineerKyle PVH hostedbest-sellingauthor Employment Awareness Month, As partofNationalDisability through fashion.” people toexpressthemselves vision, empoweringdifferently-abled collections continuetobuildonthat Hilfiger, PrincipalDesigner. “These core of my brand’s DNA,” said Tommy of fashionhavealwaysbeenatthe “Inclusivity andthedemocratization for menandwomen. consists ofapproximately35styles in October2017.Thenewadultline people withdisabilities,waslaunched modified mainstreamapparelfor adaptive apparel,whichoffers The Disabilities Supporting TOMMY HILFIGERlineof People with

where everyindividualisvalued. foster aninclusiveenvironment the widerindustryandsocietyto We seektoworkfurtheralongside industry andsocietyatlarge. diversity intheworkplace,for to championincreasedinclusionand that fashionhasagreatopportunity accomplishments, andrecognize We areproudofour Angeles areawilllaunchlaterin2018. for ourfacilitiesintheGreaterLos 2018 andachapterofUPWARD Empowerment) launchedinearly for AfricanAmericanVoices and BRG BRAAVE (BuildingResources workplace. OurAfricanAmerican specifically aroundinclusioninthe new courseinourI&DAcademy We willalsobeginrollingouta have alargeassociatepresence. the worldinkeylocationswherewe our supportforLGBTQpridearound of I&D.In2018,weplantoexpand clear stepstohighlighttheimportance As anorganization,wehavetaken Looking Ahead Tommy HilfigerStoreoftheFuture,ShoppableWall

diversity AND INCLUSION 23 2017 REPORT CR CORP. PVH 18 TOMMY HILFIGER PVH CORP. ANNUAL REPORT P ASSO Our a w Commitment:Our A

their fullpotential. ensure thatPVHassociatesreach your future,”PVHUwascreatedto your mind,Growtalent,Design PVH U.Withamantraof:“Engage opportunities, includingthrough many learninganddevelopment advance theirskills,weprovide within PVH.To helpourassociates build long-term,successfulcareers associates. We strivetohelp them and thelongtenuresofourcorporate ourselves onourhighretentionrate developing ourassociates.We pride At PVH,wearecommittedto their fullpotential. empowering ourassociatestoreach further developtheirskills,thereby for ourassociatestoextendand strive tocreateopportunities greatest asset.Asaresult,we reat pla great orld-class talent by makingPVH around theworldareour than 36,000associates VH recognizesthatourmore

CIATES

ce to w as wellthenon-birthparent, including fosteringchildren, all additionsofchildrentoafamily, Leave PolicyintheU.S.tocover In 2017,weexpandedourParental generational andlifestyle. segments oftheworkforce,including and communicationstodifferent the world,tailoringourprograms diverse workplaceculturesaround associate benefitsthatalignwith PVH continuestodevelopandexpand Best inClassnefi or secondarycaregiver. ttra ork

retainct and

to aspecificretirementdate. diversified portfolioofoptionsaligned our 401(k)plantoprovideforamore as wellmadeenhancementsto Financial Wellness Benefit intheU.S., work policyandlaunchedaRetirewise In addition,weintroducedaflexible

from theprogram. ways inwhichtheyhavebenefitted HealthMatters, associatesshared the lifestyles. To marktheanniversaryof encourage associatestopursueactive as wellpromoteteamsportsto subsidized ratesforhealthclubs, free mobilefitnessapps,and associates withpersonalcoaching, benefits andofferings. We support healthy lifestylethroughavarietyof program isdesignedtoencouragea America, PVHHealthMatters.The health andwellnessprograminNorth anniversary ofourverypopular In 2017,wecelebratedthe10th & Distribution – MarkCouch,VPHRWarehouse 2-year-old shouldbedoing.” and doingallofthethingsahealthy us andisnowwalking,learningtotalk attention hedeserved.He’s stillwith of mindenablingustogivehimthe manager providedcomfortandpeace leave programandthesupportofmy he cametousinMay2017.Our our care.Adenwas14monthswhen with andcareforchildrenplacedin Leave programprovidestimetobond “As afosterparent,ourPaidParental

include theirdependents. this programwillfurtherexpandto to associatesinCanadaand,2018, In 2017,weexpandedHealthMatters feel moreaccountableformyhealth.” tracking whatI’mdoingmakesme exercise. JustknowingthatIam making decisionsregardingdietand has mademethinktwicewhen team, said:“JoiningHealthMatters Colleen fromtheWholesaleField free forthreeyears.” January 2017,Ihavebeentobacco to helpmequitsmoking.Asof “I usedHealthMattersasaresource Carolina distributioncenter, noted: Jonathan fromtheJonesville,North

launch inEurope. and Brazil,withaplanned2018 live intheMiddleEast,Africa,Asia, the system.In2017,Workday went percent ofglobalassociatesutilizing associates toaccessbenefits,with75 Benefits Portal,hasenabledmore HR system,Workday, alongsidethe Continued implementationofour wellness plansandprograms. our health,well-beingandfinancial resulted inincreasedparticipation and informationalmeetingshave a toppriority. OurBenefitsFairs the benefitsavailabletothemis Ensuring associatesareawareof

associates our 25 25 2017 REPORT CR CORP. PVH 1826 TOMMYour associates HILFIGER PVHPVH CORP.CORP. CRANNUAL REPORT REPORT 2017

• Offered over250different • Introduced threenewleadership PVH U: globally inJanuary2016.In2017 U hasgrownquicklysinceitlaunched our associatesandthebusiness.PVH to meetthedemandsofourleaders, PVH Ucontinuestogrowandevolve leadership programstoonlineclasses, of continuouslearning.From potential. PVHpromotesaculture helping associatesreachtheirfull Talent Development isakeypartof T alent Developme presence and personal brand. presence andpersonalbrand. in creatingaprofessionalonline designed coursetoguideassociates Rock Your Profile,acustom- dozens ofnewclasses,suchas classroom sessions,including in leaders. on developingcoachingskills level leadersandonefocusing front-line leaders,oneformid- development programs:onefor

• Expanded theaward-winning • Built anonlineManager’s Toolkit, Leaders asTeachers series. from onboardingtoteambuilding. support managersoneverything which isaone-stop-shopto

of Directors. continuing educationofourBoard exclusive onlineportaltosupportthe a PVHSupplyAcademyandan initiatives onthehorizon,including There aremoreexcitingPVHU training atPVH. excitement forthefutureofretail summit generatedcollaborationand Summit, hostedbyPVHU.The came togetherforaRetailTraining and representingallourbrands retail trainersfromaroundtheglobe 2017 alsomarkedthefirsttimethat

application process. to openrolesandstreamlining the existing colleaguesgreatervisibility site, launchingin2018,giving This includesanewinternalcareers their careerswithinourcompany. capitalize onopportunitiestodevelop to ensurethatinternalcandidatescan In response,wehaveinvestedintools is achallengeforanyorganization. Attracting andretaininggreattalent support globally. benefits andtoextendonline associates areawareofrelevant communications practicestoensure PVH planstocontinueelevatingour Looking Ahead

the world,which islaunchingin2018. give recognition toco-workersaround platform thatempowers associatesto and asteams.Thisincludesa digital industry-leading talent,individually acknowledge andcelebrateour We continuallyseekwaysto annual physicals. in theU.S.,helpingtofacilitate Enabling HealthyEmployeesbenefit to Canadianassociates,aswellan offer anexpandedbenefitspackage an anti-fraudmeasure.We willalso all associatesandtheirfamiliesas new identityprotectionserviceto we beganofferingintheU.S.a illness diagnosis.Inearly2018, payment intheeventofacritical provide associateswithalump-sum illness coveragepolicy, whichwill the launchinU.S.ofacritical benefits offeringsin2018includes The continuedenhancementofour

associates our 27 27 2017 REPORT CR CORP. PVH A large group of our key suppliers Facility-level Initiatives In order to drive facility-level participated in a RSL testing pilot in improvements and compliance with Responsible 2017 to help us improve our existing As we build out our responsible the MRSL, we expanded our CR program. This comprehensive pilot chemicals management work in 2018, assessment program in 2017 to tested over 800 products across we will be supporting the rollout of include a more comprehensive set CHEMICAL all PVH product categories at each ZDHC’s MRSL*, which will govern of chemical indicators, in line with stage of production and included a banned or restricted chemicals as ZDHC requirements. This information full array of materials and finishes. an input to the production process. was collected as part of our rollout of MANAGEMENT The pilot has helped streamline and We will lay the groundwork for the the SAC Higg FEM to 530 strategic accelerate the testing process for both implementation of the MRSL by suppliers (please see page 14 for our suppliers and our internal teams, preparing our suppliers, partnering more information). This has allowed while driving enhanced compliance with our internal sourcing teams, and us to gain a deeper understanding Our Commitment: Practice responsible and transparency. utilizing industry training resources of chemical performance and chemical management by reducing such as the ZDHC Academy, an compliance at the facility level and In 2017, we announced that starting online platform where accredited to identify areas for improvement. and eventually phasing out in 2018, 25 million men’s dress shirts training providers can organize we produce under our CALVIN KLEIN, sessions to deliver ZDHC-certified hazardous chemicals from our TOMMY HILFIGER, Van Heusen, training to key industry stakeholders Looking Ahead

IZOD and ARROW brands, as well and suppliers. A key part of the supply chain by 2020 As we look forward to 2018, we as brands licensed to PVH will bear supplier training is to help them will expand the scope of this work the STANDARD 100 by OEKO-TEX® identify and procure safe, effective with more than 80 mills slated to label. This consumer-facing labeling chemical formulas/inputs, using provide us with verified data from acknowledges that all the product industry tools such as the ZDHC hemicals are used For this reason, PVH is an active the updated SAC Higg FEM, which Product Testing components have been tested for Gateway, a new web-based platform. throughout the apparel member of the ZDHC*, AFIRM and Compliance as of 2017 is aligned to the ZDHC hazardous chemicals and comply We plan to continue operating our manufacturing process to Group*, SAC*, and BCI*. We plan audit protocol. This will allow us to C with our RSL. The shirts will be sold rigorous training program, including PVH’s *, which governs banned give materials specific performance to join other initiatives to help RSL share precompetitive verified factory in North America through retailers with a series of easy-to-use web- characteristics ( , stain-resistance expand product and production-level or restricted chemicals in our finished data with other apparel companies, e.g. including Macy’s, Kohl’s, J.C. Penney, based resources for our partners and wrinkle-free). We are committed innovations that we believe will help products, meets or exceeds regulatory which will decrease audit fatigue and Belk and Amazon, among others. to ensure accessibility and drive to managing chemicals effectively us achieve our phase out goal. and legislative requirements globally. improve data quality. We will also be continuous improvement toward our and have set a goal to eliminate We have put in place a global RSL conducting an MRSL verification and 2020 goal. hazardous chemicals from our supply testing program across all product a wastewater testing pilot, leveraging

chain by 2020. categories in all our businesses the ZDHC Gateway to upload and to ensure compliance. We employ Modernizing Chemical share results. Management We are focused on the entire value a risk-based testing approach

PVH CORP. CR REPORT 2017 RESPONSIBLE CHEMICAL MANAGEMENT 29 chain, including inputs (facility-level in which we identify products with To support facility-level remediation The ZDHC Gateway platform is actions), processes, and outputs an elevated level of chemical risk and phase out efforts, PVH became a revolutionizing chemical management (chemicals that end up in our for testing at various stages of the founding member of the SAC Apparel in the apparel industry by providing, products or the environment). manufacturing process. Impact Institute in 2017. This industry for the first time, a digital resource initiative aims to scale existing that rates the environmental and As with many areas of our work, environmental mill improvement health hazards of individual chemical industry partnerships, collaborations ADDRESSING CHEMICAL RISKS programs such as Clean By Design products based on an aggregated and sustainable innovations will be AT EACH STAGE OF PRODUCTION and PaCT. In 2018, we will pilot view of various external (third party) critical to achieving our goals. For the Clean by Design program with chemical certifications. Mills can chemicals, this means a mass phase INPUTS PROCESS OUTPUTS strategic mills to drive improvements easily compare chemicals used in out of hazardous chemicals and in chemical, greenhouse gas, and Air their facilities against the online discharge in the apparel industry. water impacts. As a founding member Raw Gateway library of rated chemical Materials of the Apparel Impact Institute, this formulations through an automated work will contribute to the industry’s Finished RSL report, which is visible to brand Product goal to improve environmental partners globally. This helps Chemical impacts across the apparel industry. MRSL Formulations PVH identify chemical risks and Also in 2018, we will expand our Waste opportunities for improvement across improved risk-based RSL testing Worker Health the supply chain. program globally. & Safety Water * See the Glossary for more information. Wastewater * See the Glossary for more information.

ZDHC Higg/PVH Supplier PVH ZDHC Wastewater

PVH CORP. ANNUAL REPORT ANNUAL REPORT 18 TOMMY HILFIGER PVH CORP. MRSL Guidelines RSL Guidelines

ZDHC = Zero Discharge of Hazardous Chemicals Foundation MRSL = Manufacturing Restricted Substances List RSL = Restricted Substances List 14 CALVIN KLEIN PVH CORP. ANNUAL REPORT Water and the of ensure the continuity and quality preserve w Our Commitment: S afeguard and W periods ofwaterscarcity. with atotalof2.7billionfacing globally lackaccesstocleanwater, estimates that1.1billionpeople nongovernmental organization, WWF, aleadingenvironmental

as oneofthetopfiveglobalrisks. Forum hasrankedthewatercrisis human right.TheWorld Economic a greaterpriority. this resourcebecomes clean waterincrease,safeguarding challenges ofaccessingsafeand w access towhichisa finite naturalresource, ater isacriticaland ater supply forourbusiness

7 community Asthe 6 ater resources toater

at amillinShimoga,India. produced fromazeroliquiddischargewastewatertreatmentplant A representativefromaPVHsupplierboldlydrinksthecleanwater of ourkeyenvironmentalprograms. cross-disciplinary thinkinginvolvingall This createsaneedforinnovative, chemicals, climatechangeandwaste. other environmentalissuesincluding is linkedtoandimpactedbymany water issuesiscomplex,inthatit wash theirclothes.Addressing garments, tothewayconsumers as cotton,todyeingandfinishing - fromfarmingrawmaterialssuch of wateracrosstheentirevaluechain The apparelindustryisalargeuser

8 7 6 USA’s workwithEconyl, to lesswateruse,suchasSpeedo and processinnovationsthatwilllead We arealsoexploringvarious product 14 and29formoreinformation). Impact Institute(pleaseseepages membership intheSACApparel rollout oftheSACHiggFEMand chain, drivenlargelythroughour centers), aswellwithinoursupply offices, warehousesanddistribution use atourownfacilities(stores, focuses ontrackingandreducing has createdarobustprogramthat contribute towaterconservation,PVH In anefforttoreducewateruseand PVH Water * threats/water-scarcity. www.weforum.org/reports/the-global-risks-report-2018. “http://www.weforum.org/reports/the-global-risks-report-2018” Stewardship Programme. WWF andGIZ’s* InternationalWater work throughnewpartnershipswith to driveimportantwaterstewardship Finally, wetookamajorstepin2017 Hilfiger’s LowImpactDenim program. Find moredetailsaboutSpeedo’s workwithEconyl inour2016 “Water Scarcity.” WWF, World WildlifeFund,2018,“http://www. The GlobalRisksReport2018.World EconomicForum,2018, See theGlossaryformoreinformation. CR Report. worldwildlife.org/threats/water-scarcity” www.worldwildlife.org/

Strategy

8

andTommy

levels in2017. at boththecorporateandbusiness Water Mandate*,whichwejoined as wellSDG6andtheU.N.CEO water riskanalysisconductedby WWF, destinations, asinformedbyaglobal basins insomeofourstrategicsourcing partnership aimstoprotectkeywater businesses wasformalizedin2018.The that isapplicablethroughoutallour with WWF. Thismulti-yeararrangement We workedtoexpandourpartnership Found Water Stew PVH in2018. plan toexpandthisinitiativeacross TOMMY HILFIGERcollections.We percent oftheproductsin2017 Low impactdenimcomprised25 which arewaterandchemical-free). technologies (e.g.,laserandozone, recycled waterandmoresustainable suppliers touserenewableenergy, The methodologyencourages various garmentfinishingprocesses. assesses theenvironmentalimpactof software, atoolfromJeanologia*that the EnvironmentalImpactMeasuring garment. Participatingsuppliersused and thatrequirelesschemicaluseper reduce waterandenergyconsumption to adoptpracticesthatsignificantly denim products,helpingsuppliers different finishingtechniquesforits conducted apilotprojecttoexplore Our Tommy Hilfigerbusiness Impa T ommy HilfigerLo ct Denim ational P

ardship: New

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* See theGlossaryformoreinformation. local interests.” reduce riskforbusinessandserve sustainable practicesthatsimultaneously with PVH,weareabletoensuremore stewardship partnershipsliketheone that surroundthem.Throughwater water sourcesandthecommunities basin affectsallthelocallyconnected resource. Thewaywecareforone notes: for PrivateSectorEngagementatWWF, Sheila Bonini,SeniorVicePresident the globe. strategic sourcinglocationsacross activities forlocalcommunitiesinother efforts toadvancewaterconservation water risksandengageincollective Together, PVHandWWFwillidentify used inthepark. approximately 90percentofthewater ZLD* plantattheHIP, whichrecycles already reducingwaterusethroughthe Hawassa inEthiopia,whereweare support ourworkinpreservingLake Our HeritageBrandsbusinesswill the environment,peopleandeconomy. stakeholders toreducewater-stress on India, CalvinKleinwillworkwithkey In theCauveryRiverbasininSouth the Taihu River basininChina. Mekong RiverbasininVietnamand will continuetosupportworkinthe sourcing destinations.Tommy Hilfiger critical waterbasininoneofourstrategic WWF’s stewardshipworkbysponsoringa Each ofourbusinesseswillcontributeto “Freshwater istheultimateshared

action globally. activations todriveawarenessand develop educationandengagement water conservation,andhaveplansto across ourbusinessesonthetopicof strive toinformandengageassociates technologies andprocesses.We will GIZ, andthroughtheexplorationofnew through ourpartnershipswithWWFand water conservationandstewardship In 2018,wewillcontinueourworkon Looking Ahead first timein2017,receivingaBscore. CDP* Water, which wecompletedforthe We willcontinueourpublicreporting to sourcing communities. apparel companiesinadditionalstrategic Water Mandatetoworkcollectively with opportunities throughtheU.N.CEO Programme andarealsoidentifying International Water Stewardship stakeholder collaborationwithGIZ’s of WWF, weareco-initiatingamulti- work andlive.Withtheinvolvement partnerships inthelocationswherewe We aimtobeinclusivewithour

water 31 2017 REPORT CR CORP. PVH 18 TOMMY HILFIGER PVH CORP. ANNUAL REPORT O P Sustainable PA and w of pa Our Commitment: Reduc the amount yet only14percent packaging areproducedglobally, Each year, 78milliontonsofplastic important? plastic pa Why isreducingour do more. continually challengingourselvesto progress towardthisgoalandare landfill. We havemadesignificant to sendzeropackagingwaste

up asignificant amountoftheover means thatplastic packagingmakes coastal cleanupoperations . This items collectedininternational for morethan62percentofall waste recycling. Plasticpackagingaccounts a CKA for PVHproductsand amount ofpackagingused ur goalistoreducethe

cka cka cka

GIN W ork to gin 9 iscollectedfor

gin usedforPVHproucts gin to lan dfill ASTE to w working todrive theuseofmore certified paper andcurrentlyis a sizeableshifttowardsustainably the Roundtablesuccessfullyexecuted achievements. Forexample,in 2017, practices, innovativeideasand to exchangeandimplementbest the globeareworkingclosely together from eightbusinessdivisionsacross Packaging Roundtable,ourassociates Through ourinternalSustainable Sustainable P Making On-Product by 2050,moreplasticsthanfish. for every3tonsoffishby2025 expected tocontain1tonofplastic continues atthisrate,theoceanis ocean today. Ifplasticconsumption 150 milliontonsofplasticsinthe a zero sending ard cka gin More g

and, packaging andpackingmaterials. practices forthemostcommonly used divisions onbestsustainability of guidelinestoinformourbusiness experts, andhavecreatedavariety insights andadvicefromindustry to participants,whichisbasedon sustainable packagingresourceguide to-day roles.We haveprovideda support sustainabilityintheirday- on howtomakedecisionsthat team trainsinternalmembers Packaging Roundtable,theCR Also throughtheSustainable sources likeoceanplastics. and pilotinginnovativerawmaterial ahead, thegroupwillbereviewing across PVHbusinessunits.Looking recycled andrecyclablecontent 9 https://www.ellenmacarthurfoundation.org/assets/downloads/ publications/NPEC-Hybrid_English_22-11-17_Digital.pdf The NewPlasticEconomy: Rethinking theFutureofPlastics& Catalyzing Action.EllenMacarthurFoundation, November2017.

• packaging. Examplesinclude: in placeatPVHtoreduceproduct recyclable. Thereareover20projects stickers, andtissuepaper)isnow product packaging(e.g.,hangtags, Approximately 70percentofouron- Neckwearteamreducedits • The

to communicatetheseeffortsour innovative solutions.We are working packaging componentsanddevelop recycled content,minimize materials thatarecertifiedorhave sustainable aspossible.We choose Group tomakeourpackagingas “It isapriorityinTheUnderwear Packaging &Trim, TUGnotes: Lisa Dudzik,SeniorManagerof size andweightofitspackaging. has alsoworkedtoreducethe be collectedandrecycled.TUG item, makingiteasierforthemto window boxintoasingle-material redesigned amulti-material The UnderwearGroup(“TUG”) sustainably sourcedpaper. have all2018hangtagsprintedon our HeritageBrandsbusinesswill hangtag sizeby17percent,and citizens oftheearth.” hopefully inspireotherstobegood consumers, raiseawarenessand

distribution operations. we useinourwarehouseand streamline andreducethepackaging and identifyingopportunitiesto include developingapackingbaseline bubble wrap).Ourexpandedefforts packing (e.g.,cartons,polybags,and to reducetheimpactsofourlogistics We arecontinuingtoexpand ourwork Logistics P Reducing Our packaging. our recycle best to how on clear instructionstoourconsumers this initiativeshouldhelpPVHprovide on-product packaging.We believe insight intotherecyclabilityofour How2Recycle programwillprovide voice onsustainablepackaging.The based organizationthatistheleading SPC*. Theisamembership- the How2Recycleinitiativeof the firstapparelcompanytojoin sustainable packaging,webecame understanding ofourcommitmentto To provideconsumerswithabetter P Communic Understanding an a cka gin Materials ating Our a cking

* See theGlossaryformoreinformation. industry forward. line withourdesiretomovethe our companyandexternally, in include newpartnershipsbothwithin circularity* innovations. Thiswill broadly, includingtextilewasteand addressing wastechallengesmore more ofavaluechainapproachby use ofinnercartons.We willtake certified materialsandreducingthe bag weightreduction,switchingto and packingeffortsincludingpoly pursuing additionalpackaging teams inexpandingprojectsand Relations, Logistics,andother team willsupporttheVendor packaging commitment.TheCR we willbestrengtheningourglobal possible fromreachingalandfill.” This isdonetokeepasmuch can andsendtherestforrecycling. our products. Theyreusewhatthey whose hangersareusedonmanyof We sendourexcesstoamanufacturer clips forpants,swivelhooks,etc.). combination ofmaterials(plastic with ourproductaremadeofa avoidance. The hangersassociated hanger programintheDC’s aslandfill Kevin Urbannotes:“We refer toour Executive VicePresidentofLogistics per carton. in a30percentreductionpaper, America business,resulted cartons forourTommy HilfigerNorth like movingfromtriple-tosingle-wall Sustainable packinginnovations, 100,000 pairsofmid-weightjeans). weight isequivalenttoapproximately hangers fromlandfill(thistotal 80,054 pounds,respectively, of successfully diverting26,600and implemented arecyclinginitiative, Georgia, distributioncenters North Carolina,andMcDonough, In theUnitedStates,ourJonesville, As welookto2018andbeyond, Looking Ahead

SUSTAINABLE packaging 2017 REPORT CR CORP. PVH 33 18 TOMMY HILFIGER PVH CORP. ANNUAL REPORT O impacts along he supplyt chain minimize social an d environmtal materials moresustain Our Commitment: Sourceraw Materials manufacturing processes. fibers, aswellthe natural, syntheticandanimal-based the materialswesource,including to improvingthesustainabilityof rapidly. AtPVH,wearecommitted lab-grown leathers)areemerging fibers (fromplant-basedsilksto material finishingprocessesand Innovations infarmingpractices, resource andchemicalintensive. and treatingoffabricareextremely weaving ofcloth,andthedyeing of rawmaterials,thespinningand production offabrics.Thefarming in theapparelindustryinvolves

Sustainable environmental improvements opportunities tofurther ne ofthegreatest

10 Mapping exercise. This percentageisbasedoff ofour2016Materials materials inourindustry: promote responsiblesourcingofraw with thefollowingindustrygroupsto design teams.We arealso working how toscalethetoolswithinallofour the resultsofpilottoevaluate decision-making, andweareusing incorporate sustainabilityintotheir potential tohelpourdesigners Module*. Thesetoolshavethe Index andtheDesignDevelopment the have pilotedindustrytoolsincluding our sustainabledesignprogram,we change onalargescale.Aspartof wherever possible,asitdrives We supportindustrycollaboration by volume percent ofPVH’s rawmaterialuse material andrepresentsnearly70 Cotton isourmostimportantraw sustainable cotton Integrating more • • • • “Better Cotton” astandardpractice. production ofmoresustainable initiative thataimstomakethe In 2017,PVHjoinedBCI,aglobal opportunity tomakepositivechange. BCI LeatherWorking Group * Responsible Luxury Initiative BSR* Textile Exchange* SAC

Materials Sustainability 10 , providingthegreatest

ably to

© BetterCotton Initiative through BCI. volumes, includingcottonsourced cotton for45percentofits Hilfiger sourcedmoresustainable cotton by2020.In2017,Tommy percent moresustainablysourced and isworkingtowardagoalof100 been aBCImembersince2013 Our Tommy Hilfiger businesshas targets tomeasureourprogress. businesses andhavesetinternal source BetterCottonforallofour cotton supply. We areworkingto account for30percentoftheworld’s produce enoughBetterCottonto to empowerfivemillionfarmers communities. By2020,BCIaims for theenvironmentandfarming in awaythatismeasurablybetter Better Cottonisproducedbyfarmers

* ◊ Iconsmade byFreepikfromwww.flaticon.com † ForPVH’s fullanimalwelfare policy, please visitwww.pvh.com/responsibility/policy/animal-welfare-policy. See theGlossaryformoreinformation. • Promotesfairanddecenttreatment • Preservesthequalityoffiber • Conservesnaturalhabitats • Caresforthehealthofsoil responsibly • Useswaterefficientlyand PVH’s • Minimizesharmfulimpactsofcrop in awaythat: We strivetosourcecottonproduced BCI: cotton with Sourcing sustainable

• Initiatives: Spotlight on Key • Allowsforverificationofsustainable

product. in anyPVH Not Allowed Angora and localecosystems protection practices made of70percentrecycledcotton In 2017,aCALVIN KLEIN totebag Calvin Klein’s RecycledTote Bag farming andproductionpractices of workers incentivizing lesspackagingwaste. it insteadofashoppingbag, bring itbacktostoresandre-use future purchaseswhenthey an offerforfivepercentoffonall reusable bag,consumersreceive to sellitonline.Aftertheybuythe been soldandwehavecontinued approximately 150,000bagshave stores inNorthAmerica.To date, was introducedinallretailoutlet Animal Welfare

product. in anyPVH Not Allowed Fur

Policy

sourcing Responsible Exotic Skins

† references the follo Textile Exchange. welfare issues,includingBSRandthe organizations withexpertiseinanimal sourcing teamsandwasreviewedby developed incollaborationwithour the guidingprinciple.Thepolicywas The “FiveFreedoms”*conceptis wool, non-downfeathersanddown. angora, fur, exoticskins,leather, focuses onsevenkeymaterials: global AnimalWelfare Policy, which company. In2017,welaunchedour materials isveryimportanttoour responsible sourcingofanimal-based our globalmaterialfootprint,yet approximately threepercentof Animal-based materialscomprise Improving

•

• to thisprogramin2017. over 2,500poundsoffabricscraps and homefurnishings.We donated recycled intomaterialsforinsulation become waste.Thescrapsare manufacturers thatwouldotherwise scraps fromappareldesignersand nonprofit thatcollectsfabric Fabscrap, aNewYork-based In 2017,PVHpartneredwith Fabscrap recycled polyester. and sportsshirtsthatcontained we producedover4.6milliondress bottles. Throughthisinitiative, plastic waste,suchas polyester materialmadefrom sourcing Repreve’s recycled our InnovationNextteamtobegin Furnishings Grouppartneredwith we source.In2017,ourDress for 13percentofthematerials material byvolume,accounting Polyester isoursecond-mostused Recycled PolyesterShirts The DressFurnishingGroup’s industries. of meat byproduct Must be Leather

Animal Welfare

as possible. certified wool source RWS RWS andwill Support the Wool

wing materials of animal origin:

industry today. to thestatusquooffashion represent responsiblealternatives source productswithmaterialsthat full productlifecycleinmindand solutions todesignproductswiththe the industrytodevelopinnovative our materialsbycollaboratingacross toward incorporatingcircularityinto in 2017,weaimtofurtherourefforts our materials.Buildingonwork ensure responsiblesourcingforall stakeholder groupsandpartnersto PVH willcontinuetoleveragemulti- Looking Ahead based materialsresponsibly. animal welfareandsourceanimal- industrywide solutionstopromote of stakeholderstoaddress We willcontinuetoengage avariety footwear, andaccessories. to leatherproductionforapparel, and environmentalissuesrelating that addressbothanimalwelfare Group, helpingtocreatestandards member oftheLeatherWorking Tommy Hilfigerbusinessisalso a produce isnowRDS-certified.Our in RDS-certified down.Alldownused collections inEuropeallcontained down. OurCALVIN KLEINFall2017 PVH productsmustnowuseRDS Wool Standard(RWS Standard (RDS)*andResponsible Exchange’s ResponsibleDown certifications, includingthe Textile of animalwelfarestandardsand We arecommittedtodrivingtheuse concerns aboutitsproduction. of allmohairproductsby2020dueto In 2018,wecommittedtotheremoval TOMMY HILFIGERproductswe or forcefed. live plucked who werenot From birds Feathers Non-down

of PVH. products all branded required for RDS down Down )*. Allbranded

◊

SUSTAINABLE MATERIALS SUSTAINABLE 35 2017 REPORT CR CORP. PVH 18 TOMMY HILFIGER PVH CORP. ANNUAL REPORT C Gases GREENHOUSE throughout our value chain o utilizing cleaneneryboth inour increasing eneryeffiien and by reducingeneronsumption, PVH’s greenhouseas(“GHG”)emissions Our Commitment: M easure and reuce

cleaner energyalternatives. environmental impactandsupport have aresponsibilitytolimitour and collectively. We believethatwe we mustaddressbothindividually operatefawned an d the planettodayandonethat greatest challengesfacing limate changeisoneofthe Total GHG Emissions Vehicles Warehouses Retail Emission Source GHG EmissionsbyScope Scope 2Emissions MT CO Total GHGEmissions Offices MT CO Glob Scope 1Emissions 2 2

3 e e

al GHINVENTORY

5

4

negative impactsofclimatechange.” emissions inordertomitigatethe take aleadershiproletoreduceGHG opportunity forusandtheindustryto Accord andconfirmingthat“thisisan to withdrawfromtheParisClimate announcement thattheU.S.intended expressing disappointmentwiththe to allPVHassociatesin2017 a memoonLinkedIndirected CEO, EmanuelChirico,published in theU.S.OurChairmanand despite thepoliticalresistance the negativeeffectsofclimatechange PVH remainscommittedtomitigating 2 1

134,459 134,459 18,800 16,194 13,909 97,240 93,166 41,293 2,225 2015 2015

148,726 112,123 148,726 111,403 19,874 37,323 2,820 2016 2016

107,792 140,482 102,474 140,482 cilities and 20,092 14,543 32,690 3,373 2017 2017

* 5 4 3 2 1

refrigerants. of gasoline. approximately 930,000gallons a yearorreducingconsumptionof passenger vehiclesofftheroadfor is thesameastaking1,700 table formoredetails).Thisreduction in 2017from2016(seethebelow by approximatelysixpercent across ourfacilitiesdecreased Our Scope1and2emissions Science-Based Targets Initiative*. using methodologiesfromthe against a2015baseline,calculated own facilitiesby35percent2030 to reduceGHGemissionsatour In 2017,wesetourfirstglobaltarget Against It Tracking Progress Setting a

See theGlossaryformoreinformation. heat orsteam. from consumptionofpurchasedelectricity, Includes fugitiveemissions fromvehicle centers andfromourneckwearfactory. Warehouses includeemissionsfromdistribution Offices includeemissionsfromshowrooms. Scope 2includesindirectGHGemissions and vehicles. natural gasandcombustioninboilers, furnaces, Scope 1includesdirectGHGemissionsfrom

T

arget and

OurStoreDesignandConstruction • Anenergyassessment was • Lightingsystemswereupdated • OurCalvinKleinHongKong • Highlights include: and installingoccupancysensors. LED* retrofits,HVAC* upgrades global efficiencymeasuresincluding Next, weimplementedaseriesof target moreaccuratelygoingforward. measure progressagainstourGHG activities suchasthiswillallowusto management systems.Foundational as datacollectionthroughenergy stakeholders toexploresolutionssuch step hasbeentoworkwithinternal and distributioncenters.Thefirst offices, stores,andwarehouse reduction strategyinallofour We haveadoptedaholisticGHG Reduction Strategy PVH F 11 *

supply chain)anddownstream (endoflifetreatmentgarments). owned andoperatedportfolio, bothupstream(businesstravel, Scope 3includesindirectemissions thatoccuroutsideofour See theGlossaryformoreinformation. stores attheendof2017. in 71%ofallNorthAmerican lighting toLED,whichwasinstalled team continuedtoretrofittrack changes inassociatebehavior. equipment andcontrols the leaseterm,drivenbyefficient potential energysavingsover identified over$2.3millionin York City. Thisassessment Tommy HilfigerofficesinNew construction phaseofthenew conducted duringthedesignand on electricitybills. save morethan$250,000annually to reduceGHGemissionsand efficient LEDbulbswillallowus Quebec. Switchingtoenergy- North Carolina,andMontreal, in ourwarehousesJonesville, unnecessary usage. and occupancysensorstoeliminate timers alongwithnaturaldaylight lighting systems;systemsthatuse corporate officeinstallednew acilty GHG

InEurope,atoolwasdeveloped • Protection Agency’s (“EPA”) leverages theU.S.Environmental this regard,thePVHlogistics team per mileandtonoffreight. In fewer emissionsandpollutants environmentally bestinclass,emitting and ensurePVH’s truckfleetis ways toincreasefuelefficiency In addition,weareworkingtofind including energyuse. the environmentalimpactofmills, Institute, whichaimstoreduce member oftheSACApparelImpact information). We arealsoafounding (please seepage14formore improvements atthefacilitylevel help usidentifyareasforenergy 530 strategicsuppliers.Thiswill by rollingouttheSACHiggFEMto GHG emissionsinoursupplychain In 2017,PVHbegantomeasure Supply Ch ain Initiatives procuring ofrenewableenergy. operations, andthenproceedwiththe the energyefficiencyofourown strategic approachistofirstincrease renewable energycredits*.Our agreements* andprocuring panels, off-sitepowerpurchase energy optionssuchason-sitesolar Finally, weareexploringrenewable that willhelpmeasureandimprove GHG reductiontarget. behavior changetoachieveour design, dataandenergy, and are focusingonlogistics,building in Europe.Thesefourtaskforces timelines totackleGHGreduction developing detailedplansand four taskforcesthatarecurrently within thebusinessandsetup program –CLIMATE COOL– launched aGHGreduction wellbeing. TheEuropeteamalso on energy, materials,wasteand of ourretailstores,withafocus the environmentalperformance

and dyeing. our valuechain,includingspinning focus onthecarbon“hotspots”in reduction targetandstrategy, witha develop ourScope3(supplychain) renewable energy. We willalso complete ourroadmapforsourcing energy efficiencyandreduction, accelerate effortstofurtherdrive only justbegun.In2018,wewill GHG reductioncommitmenthas The journeytoachieveour2030 Looking Ahead that willallowustoreachourtargets. changes togeneratethereductions identifying solutionsandmaking change goal.Businessdivisionsare are activelysupportingourclimate Associates throughoutthecompany Change Questionnaire. to respondtheCDPClimate and investors.We continue transparency forconsumers frameworks inordertodrive footprint toexternalreporting reduction strategyandannual We continuetoreportourGHG for truckfleets. Performer initsSmartWay program recognized bytheEPA asaHigh efficiency. In2017,PVHwas and improvefreighttransportation companies measure,benchmark, SmartWay Program,whichhelps

11

GREENHOUSE GASES GREENHOUSE 37 2017 REPORT CR CORP. PVH 14 CALVIN KLEIN PVH CORP. ANNUAL REPORT Communities around thew needs of Our Commitment: S upport the A workforce, 68 percentoftheglobalgarment Women accountforapproximately communities whereweworkandlive. creating positivechangeinthe learn andprotection fromharm. healthy startinlife,theopportunity to world, SavetheChildrengives kidsa Ethiopia. IntheU.S.andaround the as youthemployabilityprograms in Bangladesh, ChinaandIndia, as well Development programsintheU.S., Children supportsitsEarlyChildhood Our globalpartnershipwithSavethe Supporting Children:Save The consumer contributions. pledges, fundraisingandretail through product,cash,associate million tocommunityprograms In 2017,wecontributednearly$24 relief efforts. as ourcontributionstodisaster campaigns andinitiatives,aswell supports ourglobalphilanthropic is anonprofitcorporationthat quality oflife.ThePVHFoundation access toeducationandenhancing by creatingsafespaces,improving support aroundtheworld.We dothis of womenandthechildrenthey we aredriventoaddresstheneeds

and wearecommittedto embedded inourculture, t PVH,givingbackis 12 whichisonereasonwhy

Early Years w

omen and chilren

Workers_in_the_Apparel_Industry.pdf 12

June 2017,https://www.bsr.org/reports/BSR_Empowering_Female_ 58 teachers. training fourprincipalsand quality. In2017,theworkincluded can oftenbedisruptedorofpoor of migrantworkers,whoseeducation kindergartens, includingthechildren with underprivilegedchildrenin supported SavetheChildren’s work In China,ThePVHFoundation Children’s SummerBoostProgram. the summer, throughSavethe elementary schoolchildrenover California toworkwithdisadvantaged Associates traveledtoCentralValley, Associate Volunteer Service Trip. opportunity totravelforourannual provided associateswithan initiatives in14states.Ourpartnership development andpre-literacy communities withlanguage young childreninunderprivileged program isfocusedonhelping In theU.S.,SaveChildren Empowering FemaleWorkers intheApparelIndustry.BSR, orld

about 30participants. people, withthe2017pilotassisting skills trainingtodisadvantagedyoung Funding hasenabledemployability joint venturefacilityinHawassa. Save theChildren,alongsideour million, multiyearcommitmentwith educational initiativesisour$1 In Ethiopia,oneofourlargest and newclassroomequipment. professional trainingtoteachers caregivers. Theprogramprovides offer parentingadvicetomothersand attendance atstatepreschoolsand India offices,whichaimstoincrease in Bangalore,thehomeofPVH’s Save theChildreninitiatedaproject in theregion. suit withtheirowninitiatives apparel companiesarenowfollowing 1,660 childreninBangladesh.Other nearly 1,350parentsandmorethan In 2017,SavetheChildrensupported our garmentfactorycommunities. fund childcareandearlyeducationin teamed upwith15PVHsuppliersto In Bangladesh,SavetheChildren

their solidarity. a vehicletouniteandshow associates acrossourbusinesses and batteries.Thecompanygave and suppliessuchaswater, flashlights packages ofurgentlyneededtoiletries Rico, sendingtheirfellowassociates each supportedastoreinPuerto Additionally, ourU.S.retailstores raising atotalof$360,000. matched byPVHdollarfordollar, associates aroundtheworldwere the impact,contributionsfrom with ThePVHFoundation.To scale Associate ReliefFundincollaboration In response,welaunchedthePVH affecting nearly250PVHassociates. Rico inSeptember2017,directly Hurricane MariabatteredPuerto relief efforts. $2 milliontosupportemergency contributed productvaluedatover with PVH’s corporatematch.PVH $65,000, raisingover$130,000 Associates intheU.S.donatedover and theearthquakeinMexicoCity. Florida, andMariainPuertoRico, Hurricanes HarveyinTexas, Irmain Cross, PVHprovidedsupportafter Partnering withtheAmericanRed regions wherePVHoperates. number ofnaturaldisastersthathit In 2017,therewasanunprecedented When ItCountsMost Relief And Support

• UnitedStates–RonaldMcDonald • Kenya–ThomasBarnadoHouse& • India –ChristelHouse • Egypt –DarAl-Orman • China –ShanghaiChildren’s Home • Hong Kong–ChangingYoung Lives worldwide include: Some ofourlocalpartnerships and more. computer classes,schoolrenovations orphanage visits,cookingclasses, children’s artsandcrafts,sportsdays, as: servingmeals,readingtochildren, organizations belowinactivitiessuch Associates participatedwiththe resources throughvolunteering. to donatetheirtime,talentand action” forourover36,000associates which servesastheglobal“callto community supportisPVHCares, An importantelementofour A WorkforCaresce That • SriLanka–SarvodayaSuwasetha • Indonesia–ISCO • Netherlands–NederlandCares House, SafeHorizon,FreeArtsNYC, Society andMaSevana Kenya Children’s Homes Charity Association & ShishuMandir & DressForSuccess Somerset CountyFoodBank, Hudson Guild,TheMidlandSchool, Brooklyn CommunityServices, YMCA, PajamaProgram,Playworks,

and live. in thecommunitieswherewework the needsofwomenandchildren reaffirm ourcommitmentofsupporting brands andassociateswillcontinueto From largescaletolocal,ourPVH and getinvolvedintheircommunities. it easierforassociatestogiveback online globalgivingplatformtomake In 2018,weareplanningtolaunchan communities acrosstheglobe. to providereliefandsupport businesses, wewillcontinue and engagingassociatesacrossour of organizationsandfoundations By partneringwithadiversegroup Looking Ahead for theAssociateReliefFund. express theirgratitudeandPVHpride PVH associatesandtheirfamiliesinPuertoRico

communities 39 2017 REPORT CR CORP. PVH PERFORMANCE Preserving The Environment GREENHOUSE GAS (GHG) EMISSIONS (MT/Co2E) MATERIALS, WASTE and RECYCLING

Summary GHG Emissions by Scope Total Weight of Better Cotton Total Scope 1 Emissions 32,690 Produced by Tommy Hilfiger (Kg of lint cotton) 19,489,643 Total Scope 2 Emissions 107,792 Our 2017 performance summary can be found in the tables below. In preparing this report, we have been guided Total GHG Emissions 140,482 Total Weight of Waste by Disposal Method (MT) by the GRI Standards framework. It underwent a structured review process by our Accounting and Legal teams, Recycling 11,321 as well as by relevant partners within our business divisions. Please see our full GRI Index online at pvh.com/cr. GHG Emissions by Source (%) Composting 20 Retail 72.9 Recovery/Reuse 28 1 Warehouse 14.3 Landfill 994 2 Office 10.4 E-Waste/Universal Waste 13 3 Vehicles 2.4 Incineration 153 Waste to Energy/Biogas 44 4 GHG Emissions by Region and Facility Type

North America Factory 770 WATER Empowering PeoplE Office 6,045 Retail 66,303 Total Water Withdrawn from Municipal Water Suppliers Human Rights Inclusion and Diversity Warehouse/Distribution Center 13,919 Vehicle 1,826 AND Other Water Utilities (in Cubic meters) 183,392 Total Number of Factories Assessed 1,871 Diversity Analysis, U.S. Associates (%) Long-form assessments 1,185 Non-White Female 36 Europe Equivalencies 128 White Female 28 Office 5,893 Short-form/Self-assessments 259 Non-White Male 21 Retail 18,831 Better Work 144 White Male 15 Warehouse/Distribution Center 5,377 1 Vehicle 1,545 ABVTEX 74 Level 2 Assessments 81 Diversity Represented by Level, U.S. Associates (#) Higg Verifications 299 Eastern Asia Senior Vice President & Above Office 1,962 Total Non-Assessment CR Engagement 1,285 Non-White Female 8 Assessment Preparation & Remediation 1,231 Retail 16,017 White Female 46 Capability Building Training 54 Non-White Male 5 Total Person-Hours of Training 18,433 Other White Male 76 Internal 3,944 Office 642 External 14,489 Retail 1,324 Vice President & Director Warehouse/Distribution Center 26 Total Training Attendees 4,907 Non-White Female 127 Internal 1,400 White Female 348 1 Warehouses include emissions from distribution centers and from External 3,507 Non-White Male 69 PVH Neckwear Factory Human Rights Grievances 2 White Male 225 Offices include emissions from showrooms Received 4 3 Includes fugitive emissions from vehicle refrigerants

Resolved 4 4 Offices include showrooms; warehouses include distribution centers; Manager factory is PVH Neckwear

Non-White Female 652 1 The Brazilian Association of Textile Retail (ABVTEX) conducts independent social compliance audits for apparel and textile suppliers in Brazil through White Female 967

its Suppliers Certification Program. Non-White Male 386 PVH CORP. CR REPORT 2017 PERFORMANCE SUMMARY 41 White Male 429

Individual Contributor Non-White Female 4,393 White Female 2,754 Non-White Male 2,610 White Male 1,427 Supporting Communities

U.S. ASSOCIATES by Age (%) Charitable Giving (USD Amounts in Thousands) Under 30 49.6 30-50 33.9 THE PVH Foundation $ 5,085 Over 50 16.5 Associate Contributions/Fundraising 1,004 Retail Customer Contributions 983 PVH Product Contributions 16,905

Total $23,977 PVH CORP. CR REPORT 2017 2017 CR REPORT PVH CORP. 40 PERFORMANCE SUMMARY Glossary of names and Abbreviations Glossary of names and Abbreviations

Accord BWA GIZ LED The Design Development Module is a tool Textile Exchange The “Accord on Fire and Building Safety The “Better Work Academy” is a program “Gesellschaft für Internationale “Light-emitting diode” lightbulbs are more meant to influence the environmental Textile Exchange is a global nonprofit that in Bangladesh” is an independent, legally through Better Work for brands and other Zusammenarbeit” is a German-based efficient and thereby consume less energy impact of the creative design process. works with its members to identify and binding agreement between apparel brands stakeholders who are committed to driving sustainability development consultancy that than typical lightbulbs. It guides designers to evaluate the share best practices regarding farming, and trade unions designed to work toward a change and transforming behavior in the provides organizations and governments, sustainability of their chosen materials, materials, processing, traceability and safe and healthy Bangladeshi Ready-Made apparel industry. The program provides including the German government, Power Purchase Agreements sustainable manufacturing techniques, product end-of-life in order to reduce Garment Industry. training and advisory services to brands, with support and advice on social and Power Purchase Agreements are and to consider the complete life-cycle the textile industry’s impact. http://bangladeshaccord.org/about/ building their capacity to implement Better environmental issues. agreements between power providers and of the product. http://textileexchange.org/about-us/ Work’s methodologies across the supply https://www.giz.de/en/html/index.html PVH to purchase renewable power over a AFIRM Group chain. The Better Work Academy aims defined period of time. SAI Social Fingerprint U.N. CEO Water Mandate AFIRM Group provides a forum to advance to improve working conditions, increase Higg FEM “Social Accountability International” is The CEO Water Mandate is a U.N. Global the global management of restricted productivity and foster better worker- The SAC’s “Higg Index Facility RDS a global non-governmental organization Compact initiative that mobilizes business substances in the apparel and footwear management relations in factories. Environmental Module” is a self-assessment Textile Exchange’s “Responsible Down dedicated to building local capacity and leaders on water, sanitation, and the SDGs. industry. It is organized by a group of https://betterwork.org/the-better- tool that suppliers can use to measure the Standard” is an independent, voluntary establishing international social and labor Endorsers of the CEO Water Mandate apparel and footwear companies. work-academy/ environmental performance and impacts global standard that aims to ensure that standards such as the SA8000 Standard commit to continuous progress against http://afirm-group.com/afirm-rsl/ of their facilities. The Higg FEM includes down and feathers come from animals for decent work. Its “Social Fingerprint” six core elements of water stewardship and CDP facility, brand, and product tools that that have not been subjected to any is a program of ratings and trainings in so doing understand and manage their BCI Formerly the Carbon Disclosure Project, measure environmental and social unnecessary harm. designed to evaluate the social performance own water risks. “Better Cotton Initiative” is a global initiative CDP is a not-for-profit charity that runs labor impacts across the supply chain. http://responsibledown.org/ of suppliers, particularly at the management https://ceowatermandate.org/ that aims to make standard practice the a global disclosure system for investors, With the Higg FEM, the industry is system level. production of more sustainable cotton. companies, cities, states and regions to addressing inefficiencies, resolving Renewable Energy Credits http://www.sa-intl.org/ World Wildlife Fund (WWF) BCI exists to make global cotton production manage their environmental impacts. damaging practices, and working to Renewable Energy Credits certify that WWF is one of the world’s leading better for the people who produce it, for the https://www.cdp.net/en achieve the environmental and social certain units of electricity or energy Science-Based Targets Initiative conservation organizations, working in environment it grows in and for the sector’s transparency consumers are demanding. purchased by PVH were generated from A collaboration between CDP, World 100 countries for over half a century. With future, by developing Better Cotton as a Circularity https://apparelcoalition.org/the-higg-index/ a renewable source and delivered to the Resources Institute, the World Wide the support of almost 5 million members sustainable mainstream commodity. Circularity looks beyond the current take- electricity grid. Fund for Nature, and the United Nations worldwide, WWF is dedicated to delivering https://bettercotton.org/ make-dispose model, and aims to redefine HIP Global Compact, the Science-Based science-based solutions to preserve the growth, focusing on positive society-wide “Hawassa Industrial Park” is an industrial RSL Targets Initiative helps companies set diversity and abundance of life on Earth, Better Work benefits. It entails gradually decoupling park in Hawassa, Ethiopia, where we have PVH’s “Restricted Substances List” sets greenhouse gas reduction targets that are halt the degradation of the environment Better Work is a collaboration between economic activity from the consumption led a contingent of our top suppliers in concentration limits for substances found based in scientific methodologies. SBTI and combat climate change. the United Nations’ International Labour of finite resources, and designing waste establishing factories and a fabric mill, and in our finished products. Our RSL covers independently assesses and approves http://www.worldwildlife.org Organization and the International Finance out of the system. Underpinned by a have also formed a joint-venture in a woven the 11 priority chemical classes and serves companies’ targets. Corporation, a member of the World Bank transition to renewable energy sources, shirt factory. to phase-out intentional use of these https://sciencebasedtargets.org ZDHC Group. It is a comprehensive program it builds economic, natural, and social chemicals by our suppliers. The “Zero Discharge of Hazardous bringing together all levels of the garment capital. Circularity is based on three HVAC SDGs Chemicals” Programme is a industry to improve working conditions and principles: Design out waste and pollution, “Heating, ventilation, and air-conditioning” RWS The U.N.’s “Sustainable Development multistakeholder initiative working to respect of labor rights for workers, and boost Keep products and materials in use, and upgrades make equipment more energy Textile Exchange’s “Responsible Wool Goals” are a set of 17 goals, in order support safer chemical management the competitiveness of apparel businesses. Regenerate natural systems. efficient or reduce runtime for equipment. Standard” is an independent, voluntary to guide global efforts to achieve practices and advance toward zero As well as advising factories, Better Work global standard that ensures that sustainable development by 2030. discharge of hazardous chemicals in the collaborates with governments to improve Five Freedoms IDH wool from certified farms is properly www.undp.org/content/undp/en/home/ textile, leather and footwear value chain. labor laws, with brands to ensure progress Five Freedoms is an animal welfare concept The Sustainable Trade Initiative (“IDH”) identified and tracked. sustainable-development-goals.html http://www.roadmaptozero.com/ is sustained, and with unions on how promoted by the World Organization for brings companies, governments, and others http://responsiblewool.org/about-rws/ to give workers a greater say in their lives. Animal Health (“OIE”), an organization together to design, fund, and implement SLCP ZDHC’s MRSL https://betterwork.org/about-us/ responsible for setting intergovernmental sustainable business practices. Guided SAC The “Social and Labor Convergence Project” ZDHC’s “Manufacturing Restricted the-programme/ animal health standards. The OIE guiding by the Sustainable Development Goals, The “Sustainable Apparel Coalition” is an is a multistakeholder project within the Substances List” is a list of chemical

principles on animal welfare also mention IDH focuses on creating positive impact alliance of brands, manufacturers, civil apparel industry that aims to develop a substances banned from intentional use PVH CORP. CR REPORT 2017 GLOSSARY OF BRG the universally recognized “Five Freedoms”, on multiple areas including deforestation, society, and academia working toward unified industrywide assessment framework in facilities that process textile materials A “Business Resource Group” is a published in 1965 to describe the right to living incomes and living wages, working sustainable production in the apparel, to measure social and labor conditions. and trim parts in apparel and footwear. business-focused affinity group that offers welfare of animals under human control. conditions, toxic loading and gender. footwear and home textile industry. More http://slconvergence.org/ It sets acceptable concentration limits PVH associates an opportunity to network The five freedoms are listed as: 1) freedom https://www.idhsustainabletrade.com/ than 200 global members from across for substances in chemical formulations with each other, gain visibility and from hunger, malnutrition and thirst; 2) multiple sectors come together to create SPC used within manufacturing facilities. grow professionally. freedom from fear and distress; 3) freedom Jeanologia meaningful, sustainable change within the The “Sustainable Packaging Coalition” is http://www.roadmaptozero.com/programme/ from physical and thermal discomfort; 4) Jeanologia is a company focused on the apparel, footwear, and textile industry. Its an industry working group, and a project of manufacturing-restricted-substances-list- BSR freedom from pain, injury and disease; development of sustainable and eco- main focus is building the Higg FEM. GreenBlue, a membership-based nonprofit mrsl-conformity-guidance/ “Business for Social Responsibility” is a and 5) freedom to express normal efficient technologies for denim fabric and http://apparelcoalition.org/the-coalition/ driving industry to make packaging more global nonprofit organization that works patterns of behavior. garment finishing. They work on disruptive sustainable. The SPC is the leading voice ZLD with its network of businesses to develop http://www.oie.int/en/animal-welfare/animal- technologies like laser, ozone and e-flow SAC Materials Sustainability Index and resource on sustainable packaging, “Zero-liquid discharge” is a water treatment sustainable business strategies and welfare-at-a-glance/ to disrupt the apparel industry. and Design Development Module Tool committed to encouraging innovation and process in which wastewater is purified and solutions through consulting, research, https://www.jeanologia.com/ The Materials Sustainability Index is a best practices to strengthen and advance recycled; therefore, leaving “zero” discharge and cross-sector collaboration. FLA database tool to compile and measure the the business case for packaging that is at the end of the treatment cycle. The ZLD https://www.bsr.org/ The “Fair Labor Association” is a LaBS environmental impacts of materials used in sourced responsibly, optimizes renewable treatment method includes ultrafiltration, collaborative effort of universities, civil The Life and Building Safety (LaBS) program production processes. The tool measures or recycled source materials, and meets reverse osmosis, evaporation/crystallization,

society organizations and socially strives to make the apparel and footwear the environmental impacts of a material the industry expectations on performance and fractional electrodeionization. names responsible companies dedicated to supply chain safe from life safety risks, and computes a sustainability score and cost. protecting workers’ rights around the world. related to structural, electrical, and fire for that material. https://sustainablepackaging.org/ AND ABBREVIATIONS 43 PVH CORP. CR REPORT 2017 2017 CR REPORT PVH CORP. & ABBREVIATIONS http://www.fairlabor.org/ safety and evacuation. Coordinated by IDH, an international sustainable trade Initiative, LaBS aims to raise safety standards in names multiple apparel production countries including Vietnam, India, Pakistan and Cambodia. http://labsinitiative.com/

GLOSSARY OF 42 GLOSSARY

WE are PVH PVH Corp. 200 Madison Avenue New York, NY 10016