G-III Apparel Group, Ltd. (GIII) 2024年CSR報告「NASDAQ」.pdf

1、CSR Report|FY 2024$3.10BGLOBAL REVENUE600+RETAIL STORESOPERATING GLOBALLY*Company and partner operated stores 8RETAIL WEBSITES(DKNY,DK,KL,KLP,VBQ,BASS,WILSONS LEATHER,SONIA RYKIEL)1,200RETAIL PARTNERSGLOBALLY3,500FULL-TIME EMPLOYEES1,100 PART-TIME30+BRANDS ACROSS A RANGE OF CATEGORIESFY 202428COUNTR

2、IES WITH OURCORPORATE OFFICESI am pleased to present our FY 2024 Corporate Social Responsibility(CSR)Report,which outlines our ongoing efforts in this space during the 2023calendar year.This was an important year for G-III,and I am proud of the results our teamdelivered.The strength,relevance,and re

3、cognition of our brands,along withour powerful corporate foundation enables us to develop products thatinspire and create exciting brand experiences for consumers.Through it all,corporate social responsibility remains an essential part of how we dobusiness.With expertise in design,sourcing,marketing

4、,and distributionacross a portfolio of over 30 owned&licensed global brands,we recognizeour vital role in creating a more sustainable future.G-III was born out of a factory in New York City more than 50 years ago by myfather Aron.He believed that caring about the well-being of workers andgiving back

5、 to the community was non-negotiable.We are proud to continueand expand that legacy with our work to protect the planet,ensure safe andfair conditions in our supply chain,build a great workplace for our ownassociates,and invest in the communities where we work and live.This year,I am happy to share

6、that we accelerated our sustainability effortsby conducting our first global materiality assessment,which identified thepriority areas for our new sustainability strategy.This was a big step inunderstanding what meaningful changes we can make as a Company,whilealso staying aligned to new legislation

7、 and industry-wide efforts.I am alsopleased with our corporate governance efforts to refresh our Board ofDirectors.Having diverse points of view and expertise is important to betterposition us for the future.We added three new Independent Directors infiscal 2024 and have added five new Independent D

8、irectors over the pastfour years.I am immensely proud of the powerful Company we are today and the manyopportunities we see for G-IIIs future.This past year has set a strong CSRfoundation to build upon and on behalf of our leadership team and the entireorganization,we are all committed to driving th

9、is important work forward.Best regards,A LETTER FROM OUR CEOTo Our Stakeholders:3Morris GoldfarbChairman andChief Executive Officer3AGENDATABLE OF CONTENTS44SUSTAINABILITYKey Sustainability MilestonesOur Approach Supply Chain ManagementEnvironmentalOUR PEOPLE,DEI,&PHILANTHROPYGOVERNANCE&ENGAGEMENTWe

10、 are building on these programs by developing an enhanced go forward Corporate Sustainability Strategy.5SUSTAINABILITYSUSTAINABILITYKEY SUSTAINABILITY MILESTONES662006Established Internal Compliance Monitoring(ICM)program and began factory audits and vendor trainings2009Established VendorCode of Con

11、duct2011Partnered with licensed brands to expandaudit program2016Launched internal software application to streamline audit programExpanded coverage of factory audits to cover all of East Asia2017Joined American Apparel&Footwear Association(AAFA)with a focus on industry-based collaboration2018Expand

12、ed programto include chemicaland environmental requirementsLaunched further training to support compliance with new areasSUSTAINABILITYKEY SUSTAINABILITY MILESTONES772019Expanded coverage of audits beyond Asia2020Published first CSR Letter and Vendor Code of Conduct2021Joined Social&Labor Convergenc

13、e Program(SLCP)Created internal Cotton Compliance Monitoring(CCM)program to trace cotton supply chain2022Joined SustainableApparel Coalition(SAC),now CascaleContracted with Oritain to provide verification of cotton back to originBegan work with Brownand Wilmanns Environmental consultants to enhance

14、our Sustainability program2023Signed commitment to setting Science-Based Targets via the Science-Based Targets initiativePublished first CSR ReportSUSTAINABILITYOUR APPROACH:Ethics and Compliance 88G-III is committed to conducting business with the highest moral,ethical,and legal standards while ens

15、uringcompliance with all applicable laws and regulations.Our approach is based on the fundamental belief thatbuilding a sustainable business that provides quality products to our consumers requires transparency,integrity,accountability,and a desire to continuously improve our own processes and those

16、 of our partners.We prioritizepartnerships with vendors and factories that share this commitment.Through engaging with our vendors,westrive to ensure they are well-positioned to meet both our own requirements and continuously evolvingregulatorystandards.SUSTAINABILITYOUR APPROACH:Ethics and Complian

17、ce 99The G-III Vendor Code of Conduct codifies the set of standards reasonably required of all our business entities and partners toadhere to collectively commit to doing the right thing.Recognizing the diverse cultural,legal,and ethical environments in whichour products are manufactured,our Vendor

18、Code of Conduct establishes essential minimum requirements for all G-III vendors,partners,and factories.In instances where differences in standards arise,vendors are required to always apply the higheststandard.To ensure adherence to these principles,G-III conducts Internal Compliance Monitoring(ICM

19、)Audits or engagesthird-party firms to assess our business partners compliance.Maintain robust health and safety programs,fair wages,working hours,compensation,and benefitsEnsure freedom of association,the right to collective bargaining,and non-discriminationPrevent child labor,forced or compulsory

20、labor,human trafficking,unfair and/or harsh disciplinary practices,harassment,and abuseRecognize and avoid corruption and unsolicited paymentsComply with all applicable laws and regulationsContinually mitigate negative impacts on the environmentSelect requirements include:SUSTAINABILITYOUR APPROACH:

21、Materiality Assessment1010In 2023,G-III conducted a materiality assessment to identify and evaluate the keysustainability topics that are important to our products,our operations,and ourupstream and downstream supply chain.This assessment incorporated the negativeand positive environmental and socia

22、l impacts inherent in the apparel industry today,interests of internal and external stakeholders,aspects that are important to thebusiness,together with a thorough assessment of G-IIIs established managementpractices to identify where improvements can be made.The resulting priority areashave been es

23、sential to the development of our new sustainability strategy that beganrolling out across the Company this year.Some of the priority areas we have identified for immediateattention and have actively been working on include:Transparencyand communicationGreenhousegas emissionsEnvironmentally preferre

24、d materials*Product environmental impactsOur Approach to Materiality AssessmentEnvironmental and social impacts relevant to the apparel industryStakeholderinterestsG-IIIPriority areasBusinessimportanceResulting G-III Priority Areas*G-III defines environmentally preferred materials the way the Textil

25、e Exchange has historically defined it:“one which results in improved environmental and/or social sustainability outcomes and impacts compared to conventional production”.Sustainability and Business Procurement and Sourcing Materials Facilities Climate Change CommunicationSUSTAINABILITYSUPPLY CHAIN

26、MANAGEMENT:Overview1111Our significant in-house Sourcing and Supply Chain Organization,with over 400 associates,manages our best-in-class manufacturing partners across the globe.Our approach to sustainability prioritizes collaboratively working with our suppliers because of the breadth of our operat

27、ions and the level of influence we areable to exert overourlargest factoriesand suppliers with the goal of improving sustainability acrossoursupply chain.Our partners play a key role in upholding our social and environmental standards at our Tier 1 suppliers.Due to our longstanding relationships wit

28、h our vendorsand partners,we are able to ensure there is a firm understanding of our requirements from the factories we work with.As a result,we are able to leverage thescaleof ourproduction operations to enhancecomplianceacrossourTier 1 suppliers and ensure the partners we choose to workwith have t

29、he proper resources,including management systems,in place to achieve and maintaincompliancewith all sustainability standards.We partner closely with our vendors and Tier 1 factories and provide guidance to helpthemmeet G-IIIs standards and those of our licensors and other partners.Our close collabor

30、ation with factories not only ensures standards aremet,but also helps our suppliers enhance their internal processes to become more efficientand safer in the long term.Wearecontinuing the workto map ourTier 2 suppliers and extend guidanceto a broader portionof oursupply chain.Key operational areas i

31、nclude:SourcingLeadersAudit TeamSupplierRelationship ManagersComplianceMonitoring TeamSUSTAINABILITYSUPPLY CHAIN MANAGEMENT:Audits1212Westrive to ensure that our products areproduced in a legally and socially responsiblemannerand to prevent complicity in abusive employment practices.Our vendors shar

32、e ourcommitment to environmental and social responsibility,and we expect them to abide by ourVendorCodeof Conduct and continue to complyas standardsevolve.G-III AuditsOur Internal Compliance Monitoring Program audits our Tier 1*suppliers to ensure adherenceto our own requirements and those of our va

33、rious distribution partners,brands,and theregions in which we operate.Compliance verification in our supply chain includes bothannounced and unannounced audits of supplier facilities.We work closely with suppliers to develop and implement strategies that align with ourstandards and follow up on all

34、audits to ensure that any adverse findings are immediatelyaddressed through formalized Corrective Action Plans.In rare cases where a supplier showsegregious noncompliance,we typically pause business until adequate actions are taken.Weare actively invested in improving our supply chain at every step

35、and support the creation ofvendors internal management systems to monitor facility environmental impacts.We alsomandate a facility environmental representative at the manager level or higher to make sureenvironmentaland social issues areprioritizedappropriately.*Tier 1 suppliers are suppliers involv

36、ed in manufacturing,assembly or finishing of our final products.SUSTAINABILITYSUPPLY CHAIN MANAGEMENT:Training1313Vendor Training&ImprovementThe social and environmental landscape is constantly evolving,and we work to continuouslyenhance our own performance and leverage our scale and relationships t

37、o encourage suppliersto improve their own environmental,social,and governance programs.We hold annual orsemi-annual training sessions to ensure they are up to date on developments and bestpractices in sustainability.Internally,G-III conducts training on our vendor compliance programand related stand

38、ards to ensure that personnel involved in supply chain management canidentifya range of potential issues and take the proper actions.Some of the training programs we develop and execute include:Capacity BuildingTogether with our licensing partners,we help develop and enhance processes and skills acr

39、oss our supply chain,such as worker well-being(i.e.,timely payroll,health and safety,career enhancement)and environmental management(i.e.,wastewater management and environmental audits).ChemicalManagement ProgramRaises knowledge about prohibited substances and how to verify compliance.Cotton Complia

40、nce MonitoringEducates internal staffand factories about our requirements and procedures for tracing the origin of cottonand ensuring its ethical sourcing.SUSTAINABILITYSUPPLY CHAIN MANAGEMENT:Our Tools1414We are members of several industry-leading organizations to improve our visibility into our su

41、pply chain and work with other third parties to advance our supply chain management and compliance.Our ToolsA non-profit alliance of over 150 partners thatworks to reduce the social and environmentalimpact of global apparel and textile production.Asa part of Cascale,we employ their standard HiggFaci

42、lityEnvironmentalModule(“FEM”),anenvironmentalassessmentofsupplychainfactories that grants us greater insight into oursupplychainsowecanidentifyareasforimprovement.Cascale also fosters collaborationacross the industry,allowing us to streamline oursocial and environmental programs and improvevendorpe

43、rformance.G-IIIutilizesaformalizedcottontraceability program to further mitigatethe risk of forced labor being used tocreate our products.To enhance ourprograms,we engaged Oritain,a third-partytestingplatformmeasuresthenatural intrinsic properties of a product toverify its origin,enabling us to iden

44、tify theexact source of our cotton and ensure itdoes not originate from regions with highrisk for forced labor.A non-profit multi-stakeholder initiative withindustry-wide shared standards that aim toeliminate audit fatigue in global supply chains.Through our membership,we have increasedthe effective

45、ness of our audits and collectedadditional performance data from our supplierswhile freeing up internal resources to betterassistfactoriesinaddressingtheirmostpressing issues.(formerly SustainableApparelCoalition):SUSTAINABILITYENVIRONMENTAL:Climate Impact1515G-III FY2024 carbon footprint represents

46、 our baseline direct and indirect(Scope 1 and Scope 2)greenhouse gas emissions across our owned and operated activities,globally.The results of our first world-wide assessment show our impact on the climate and where we can find the biggest opportunities for swift actions to achieve meaningful reduc

47、tions.We are using this baseline to inform our target-setting process which is currently underway.In fact,we have committed to setting science-based targets covering Scope 1,Scope 2 and Scope 3 emissions and achieve target validation by the Science Based Targets Initiative(SBTi).Targets are consider

48、ed science-based if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement limiting global warming to 1.5C above pre-industrial levels.We will begin assessing our upstream and downstream(Scope 3)emissions,an endeavor underway during 2024-2025.C

49、onsistent with our industry,our Scope 3 footprint will represent the majority of our overall greenhouse gas emissions,likely due to the energy used in raw material cultivation and extraction,as well as product manufacturing.Looking forward,the insights we are gathering today will serve as the founda

50、tionfor a long-term climate transition plan,designed to follow the latest climatescience,meet public climate commitments,and align our operations to achievethose ambitions.*Number represents market-based Scope 2 emissions.Location-based Scope 2 emissions were 6,145 metric tons.FY 2024 BaselineScope

51、12,256metric tonsDirect greenhouse gas emissions from sources owned or controlled by G-III,such as natural gas for heating and use of our company-owned vehicles.Scope 25,667metric tons*Indirect greenhouse emissions from the purchase of electricity,steam,heat,or cooling.SUSTAINABILITYENVIRONMENTAL:Fa

52、ctory Engagement1616We actively engage our production partners around the world to ensure compliance with our Vendor Code of Conduct,which is thefoundation of our supply chain environmentalmanagement efforts.In addition to our various social compliance programs,we monitor and measure our suppliers e

53、nvironmental performance through on-siteaudits as part of our Internal Compliance Monitoring Program and through Higg Facility Environmental Module(FEM)self-assessments.Weexpect our vendors and suppliers to comply with all applicable environmental laws,rules,and regulations,including those related t

54、oemissions,discharge,and disposal of waste,chemicals,water,energy,hazardous chemicals,and air quality.Factories must adopt measures tomitigate negative impacts on the environment and nurture a better environment at the facilities and in the communities in which theyoperate.SUSTAINABILITYENVIRONMENTA

55、L:Factory Engagement1717*Tier 1 suppliers are suppliers involved in manufacturing,assembly or finishing of our final products.Supplier AuditsSupplier Self-AssessmentsOur Internal Compliance Monitoring Program audits our Tier 1*supplier factories to ensure adherence with our Vendor Code of Conduct.In

56、 2024,nearly 80%of all Tier 1 supplier factories were audited.All audit findings require that formal Corrective Action Plans are implemented and closed within 45 days,and that adequate preventive actions are taken to ensure issues do not recur.We are working to make sure that each of our Tier 1*supp

57、lier factories complete Higg FEM assessments.These assessments help us measure and evaluate the environmental performance of our supplier factories in the following areas:Environmental Management Systems Energy and Greenhouse Gas Emissions Water Use Wastewater Waste Management Air Emissions Chemical

58、 ManagementIn 2024,nearly one third of all Tier 1 supplier factories(top 10%by order volume)completed a Higg FEM self-assessment.SUSTAINABILITYENVIRONMENTAL:Chemical Management1818Our chemical management program is essential to ensuring the safe,efficient,and compliant use of chemicals across G-IIIs

59、 Tier 1 supplier facilities.The program ensures compliance with the Companys Restricted Substances List(RSL),preventing the use of banned substances in our products,and phasing out the use of restricted substances across our supply chain.The program includes the following elementsRestricted Substanc

60、es ListFollow and comply with evolving local and regional legislation,and licensor and customer requirementsMaintain thorough procedures for RSL compliance verificationPerform product testing for banned and restricted substances using preferred laboratoriesConsistently enforce full RSL complianceCon

61、tinually improve program based on developments in product safetyChemical Management ProgramPerform onsite audits to ensure Tier 1 suppliers have robust chemical management programs,including1.Standardized internal chemical management procedures for chemical handling,storage,and disposal2.Training fo

62、r applicable employees based on those procedures3.Means to minimize environmental impact and promote worker safety through risk assessment and safety protocolsEnsure all audit findings are corrected and closed perG-III Internal Compliance Monitoring ProgramSUSTAINABILITYENVIRONMENTAL:Preferred Mater

63、ials1919We are on a mission to mitigate the environmental impacts that are associated with our purchased materials,changes to company-wide systems and procedures,and new improvement targets.There are many negative environmental impacts associated with the materials used in apparel manufacturing,from

64、 water consumption and pollution,climate impacts,waste,to toxic chemicals.Beyond the ongoing initiatives listed below,we aim to continue ramping up our programs,efforts,and achievements in the coming years.There are many environmental impacts associated with thematerialsusedinapparelmanufacturing,fr

65、omwaterconsumption and pollution,climate impacts,waste,to toxicchemicals.We are on a mission to mitigate these impacts thatareassociated with ourpurchasedmaterials.Beyond the ongoinginitiatives listed on the next page,we aim to continue rampingup our programs,goal setting,and achievements in the com

66、ingyears.SUSTAINABILITYENVIRONMENTAL:Preferred Materials2020Our current materials-related initiatives:Company-wide commitment to 100%recycled materials for all synthetic fibers by 2030.Introduction of more certified recycled materials,including Recycled Claim Standard(RCS)and Global Recycled Standar

67、d(GRS)certifications,into our products.Incorporate certified organic fibers and materials that utilize better practices to lower impacts in their cultivation.Building relationships with fabric mills to significantly increase the use of preferred materials.We are working with mills like Lenzing to so

68、urce more fibers made with environmentally preferred processes(i.e.,viscose,Lyocell,etc.).Commitment to setting science-based targets and achieve net zero greenhouse gas emissions in the future.Improved traceability across supply chain by leveraging cloud-based platforms for improved insight and sup

69、plier communication.Vilebrequins long history of using recycled or organic fibers.In 2018,Vilebrequin began eliminating virgin plastics from the manufacturing process.Today,all polyester and polyamide used in their core category mens swimwear are made with 100%recycled materials.Further development

70、and roll out of natural fibers across Vilebrequin product lines.Following the launch of our wool swimsuit,we introduced our first linen swimsuit this year.KARL LAGERFELDs collaboration with Amber Valletta which resulted in a collection made of MIRUM-a low-carbon,biobased,plastic-free alternative to

71、leather.SUSTAINABILITYENVIRONMENTAL:Circularity21Weareworkingonseveralinitiativestoaddressandfostercircularitywithinourindustry.Someofourbrandshave a long history of incorporating circularity initiatives into their collections.We believe the learnings from these efforts provide valuableinsights for

72、future programs,with the goal of incorporating them into our broader operations.Current initiatives include:Excess inventory managementWorking with our retail partners to seek solutions for unsold product to avoid unnecessary destruction.Value and durabilityCreating high-quality,fashionable products

73、 consumers want to keep or resell,which the Company continues to do as it develops some of our new core brands.Repair programsKarl Lagerfeld launched a pilot initiative program in our Bleckmann warehouse.Vilebrequin opened a workshop near the Champs-Elyses in Paris.Of the 85%of Vilebrequin products

74、certified or labeled by standards such as OEKO-TEX 100 and ZQ ethical wool certification standards,55%are made from recycled materials.98%of Vilebrequin mens swimwearis made from recycled materials.2%is made from natural fibers.Increasing recycled,organic,and/or natural fibersSUSTAINABILITYENVIRONME

75、NTAL:Industry Partnerships2222Collective action in areas of environmental and social responsibility is essential to the success of our industry.We collaborate with a range of partners in our pursuit of improved sustainability performance.Working with our licensees/licensors creates unique opportunit

76、ies to leverage innovations across a broader scope of our business.Our strong partnershipswith our customers support continuously evolving programs,ensuring we collectively meet ever changing regulations and develop forward-thinking opportunities together.Working with industry coalitions allows us t

77、o implement common tools,standards,and programs that align efforts acrossthe apparel industry,reducing workloads and standardizing practices.We work with best-in-class sustainability consultants to further drive progress at G-III.123423OUR PEOPLE,DEI,&PHILANTHROPYOUR PEOPLE,DEI,&PHILANTHROPYOUR PEOP

78、LE2424Our people drive our growth and success.We are committed to fostering a strong and engaged workforce by attracting andretaining best-in-class talent and creating an environment where everyone can learn and grow.Our collective passion for whatwe create and produce,pride in our partnerships,acco

79、untability for how we show up every day,and our unwaveringentrepreneurial spirit,all contribute to G-IIIs culture.Key areas include:Associate engagement initiatives supporting our brands and culture1Training and development opportunities in areas important to our associates2Lunch and Learns withour

80、leadership teams3Continued investmentsin technology,includingnew HR systems4Policies,procedures and practices for safety,advancement,discrimination and harassment5Equal Opportunity Employer with procedures to ensure compliance with labor laws.63,500Global full-time associates1,100Global part-time as

81、sociatesOUR PEOPLE,DEI,&PHILANTHROPYOUR PEOPLE2525Associate Health+Wellbeing Benefits:Supporting the health and wellness of our associates and their loved ones is a top priority.We offer comprehensive benefitsand resources centered around physical,mental and financial wellbeing and are tailored to o

82、ur regional businesses to bestsupport our associates.Our North America benefits include:Medical,Dental,Vision Insurance Plans Healthcare and Dependent Care Flexible Spending Reproductive Health Services 401k with Company MatchPaid Time OffLife InsuranceSupplemental Voluntary BenefitsEmployee Assista

83、nce ProgramWellness memberships to Headspace and NoomCompany brand discountsCorporate gym,travel and entertainment discountsCommuter benefits OUR PEOPLE,DEI,&PHILANTHROPYDIVERSITY,EQUITY AND INCLUSION2626We are proud of the progress we have made and continue efforts to build a diverse workforce acro

84、ss our organization.of leadershipidentify as women*Based on associates at the Vice President level and above at G-IIIs New York corporate offices as of Jan 31,2024.60%72%of Board of Directorsidentify as women orhave diverse backgrounds*Based on Board of Directors elected at the June 2024 Annual Shar

85、eholder Meeting.46%Creating a diverse,equitable and inclusive workplace which we believe isessential to successand arecommittedto providing opportunities forall.This focus goes beyond our business,and we are proud to continue tosupport The Social Justice Center at FIT as a founding member and TheFas

86、hion Scholarship Fund,in the work they are doing to advance DEIefforts.of workforceidentify as women*Based on associates at G-IIIs New York corporate offices as of Jan 31,2024.OUR PEOPLE,DEI,&PHILANTHROPYPHILANTHROPY2727Our longstanding commitment to philanthropy and supporting the communities where

87、 we work and live is embedded in whowe are.Several of our owned brands,along with G-III corporate,are focused on maximizing our global impact throughpartnerships with key organizations across several pillars.Our PillarsEducationChildren&FamiliesDiversityHomelessnessEnvironmentOur Corporate PartnersR

88、onald McDonald House(NY)Women in Need(Win)The Social Justice Center at FITDelivering GoodOur ContributionsGrants to signature programsIn-kind donationsService hours Senior advisement/mentorshipKey Brand Partners&InitiativesOUR PEOPLE,DEI,&PHILANTHROPYPHILANTHROPY2828We believe in fostering a culture

89、 of giving through action.In addition to our corporate contributions,our associatephilanthropic council collaborates with our brands and businesses to develop and execute charitable initiatives in which ourassociates can get involved.Through volunteering,our associates have the opportunityto see fir

90、sthand the impact their time makesDonna Karan/DKNY associates supported their longtime partner,Women In Need(Win),the largest provider of family shelter and supportive housing in NYC,to host activities through their CAMP Win program.Our New York associates volunteer their time to serve dinner monthl

91、y to families staying at the Ronald McDonald House(NY)while their children receive treatment for cancer and other pediatric illnesses.Protecting our worlds oceans is a cause close to our brands.Vilebrequin and Karl Lagerfeld Paris associates regularly volunteer for beach cleanups for organizations l

92、ike the Surfrider Foundation and Jutters geluk Foundation.https:/ PEOPLE,DEI,&PHILANTHROPYPHILANTHROPY2929Financial and product contributions are another way we offer support to the philanthropic organizations working tirelessly toexpand their programs and help more people in need.In support of Wome

93、n in Need(Win),DKNY and Donna Karan donated:of net ecommerce sales on International Womens Day 100%contribution$20KFor the last five years,DKNY has partnered with Hetrick-Martin Institute(HMI),a non-profit organization providing empowerment,education,and advocacy for LGBTQ+youth.donation was matched

94、 during pride month in June on DKNY.com$25Kraised for HMI$50K30GOVERNANCE&ENGAGEMENTGOVERNANCE&ENGAGEMENTWe have made substantial progresswith respect to Board independenceand diversity.G-IIIs Board of Directors consists of thirteen members and includes ten or 77%of whom are independent.While the Co

95、mpany does not have a formal policy with respect to tenure,we also strive to achieve a mix of experienced and newer directors,as shown by the election of 6 new independent directors over the last 5 years.We greatly value the opinions ofour stakeholders and have dedicated considerable resources to so

96、licitingtheir views on a variety of topics,including governance and our Corporate Social Responsibility initiatives.Calendar YearStakeholders Invited to EngageStockholders Choosingto Participate202490%60%202388%59%202293%70%202189%62%202091%59%Independent77%Independent10 Directors are independentTen

97、ure0-10 Years:611-20 Years:421+Years:3Independent Directors:9.9 yrsAll Directors:14.1 yrs40s:250s:160s:470s:6Average:65 yrsAgeWomen31%DiversityEthnicallyDiverse31%313232KARL LAGERFELD is at the forefront of sustainability.The brand believes that as an aspirational lifestyle brand,it has an important

98、 role to play in improving its impact on the world and its communities through a focus across three core pillars:Impact on people,including supplychain,office employees,retail storestaff and consumers.Mitigating climate change by achieving net zero emissions by 2050 through increasing use of more su

99、stainable materials and a decarbonization strategy.Committed to collaboration,driving positive impact by empowering its employees,communities,consumers and partners to make more sustainable decisions and implement better practices.SPOTLIGHT ON3333Amber Valletta has been the brands Sustainability Amb

100、assador since 2021.From collection concept to design,production and distribution,Ambers valued expertise helps to guide the KARL LAGERFELD team in creating more responsible collections with a holistic approach.In 2023,KARL LAGERFELD and Amber introduced collections across ready to wear and accessori

101、es that were developed with recycled and organic materials that were selected,designed,sourced and produced to reduce their effects on the environment.The strategy is furtherrooted in Six Core Values:Collaborate:Work with partners to improve collective impact.Respect:Treat all consumers,employees an

102、d supply chain workers with fairness and integrity.Inspire:Encourage and support consumers to make more sustainable choices.Innovate:Continuously look for new initiatives and sector developments that move the needle.Passion:Drive positive change by championing social and environmental responsibility

103、 across the business.Create:Explore out-of-the-box solutions andnew opportunities.SPOTLIGHT ON“I am proud of our ongoing work to protect the planet,ensure safe and fair conditions in our supply chain,build a great workplace for our own associates,and invest in the communities where we work and live.”MORRIS GOLDFARB,CHAIRMAN&CEO34