Materiality Assessment

HUGO BOSS experts have engaged with numerous internal stakeholders to identify the Company’s material sustainability impacts, risks, and opportunities. This engagement was largely conducted through interviews and desk research, while it also considered the outcomes of previous materiality assessments. In addition, we incorporated the perspectives of external stakeholders. Parallel to this, we have also assessed the financial risks and opportunities for sustainability-related matters as part of our risk management process. Our impact materiality assessment considered the scale, scope, irremediability, and likelihood of impacts being positive or negative as well as actual or potential. Severity took precedence over likelihood for human-rights-related impacts. As part of our financial materiality assessment, we assessed the financial materiality of ESG risks and opportunities, their likelihood, and the nature of financial impacts.

Impact materiality (inside-out perspective)

The impact assessment started with the development of a comprehensive catalog of ESG impacts. The assessment covered potential and actual impacts on the environment and people across the value chain, from our own operations to upstream and downstream stages. HUGO BOSS followed a systematic approach to assess the materiality of all positive and negative impacts identified, using the ESRS criteria to ensure clarity and consistency in the evaluation process. To determine the materiality for all impacts identified, HUGO BOSS assessed their severity and likelihood and defined uniform thresholds.

Financial materiality (outside-in perspective)

HUGO BOSS followed a systematic approach to assess the materiality of all ESG risks and opportunities identified. The assessment started with the establishment of a clear framework and guidelines for the risk and opportunity assessment. The teams analyzed all gathered data, including a detailed review of critical factors such as the likelihood of risks occurring and their potential consequences on our business. In addition, the financial materiality of all ESG risks and opportunities identified on a qualitative basis was assessed.

Consolidation and validation

The results of both assessments were consolidated accordingly, jointly reviewed internally and shared for final validation with all internal stakeholders involved in the assessment process as well as relevant senior management. The outcome was summarized both in a detailed matrix and in a heat map. For a more detailed description of the process, please have a look on our Combined Non-Financial Statement in the Annual Report 2024.