Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature
• People

Environmental Achievements

• Achieved carbon neutrality across global operations in FY2021/22.
• Used 100% renewable electricity across operations in FY2021/22.
• Reduced scope 3 emissions by 32% in FY2021/22 compared to the FY2018/19 baseline.
• 99% of Burberry products had at least one positive social or environmental attribute in FY2021/22.

Social Achievements

• Launched a ‘B-Green’ campaign focusing on energy, water, and waste reduction in retail.
• Responsibility Champions pilot program resulted in a 21% reduction in energy consumption in 15 stores.
• Donated over 8,000 square meters of leftover fabrics to fashion students through ReBurberry Fabric program.
• Piloted a UK-based product resale and rental initiative with My Wardrobe HQ.

Governance Achievements

• Established a Sustainability Committee co-chaired by CEO and CO&FO.
• Linked Executive Directors' bonuses to progress on long-term carbon reduction goals.
• Obtained limited assurance from PwC on scope 3 baseline and progress towards Science Based Target.

Climate Goals & Targets

Environmental Challenges

• COVID-19 disruptions impacting manufacturing, distribution, and store operations.
• Difficulty in consistently measuring scope 3 emissions across the extended value chain.
• Challenges in recycling leather due to complex composition.

Mitigation Strategies

• Extended production time to allow for social distancing.
• Worked with value chain partners to collect primary data on GHG emissions and utilize LCAs.
• Funding research projects to develop post-consumer leather goods recycling system and improve recycling processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Policies setting out environmental and social standards for suppliers.
• Monitoring supplier compliance.
• Clean by Design program for Italian textile mills.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GHG Protocol, TCFD, SBTi, UN Sustainable Development Goals (SDGs 7, 13, 15)

Certifications: LEED, BREEAM

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• 7
• 13
• 15

Initiatives contribute to ensuring access to affordable, reliable, sustainable and modern energy; taking urgent action to combat climate change; and protecting, restoring and promoting sustainable use of terrestrial ecosystems.

Sustainable Products & Innovation

• Products made with recycled nylon, recycled polyester, certified wool, certified organic cotton, and ECONYL®.

Awards & Recognition

• Reuters Responsible Business Awards (highly commended in Net Zero Transition Award category)
• Finance for the Future Sustainability Awards (winner of Climate Leader Award)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Diversity, Equity, and Inclusion
• Wellbeing
• Ethical Trading
• Community Impact

Environmental Achievements

• Reduced scope 1 and 2 emissions by 93% from FY 2016/17 baseline
• Reduced scope 3 emissions by 40% from FY 2018/19 baseline
• 93% of paper-based packaging was FSC certified
• 100% of viscose was Canopy ‘Green Shirt’ rated
• 96% of leather was from certified tanneries

Social Achievements

• 90% of colleagues completed Diversity, Equity and Inclusion training episode 1, 96% completed episode 2
• 60% female candidates shortlisted across all recruitment campaigns
• 39.5% ethnic minority candidates hired in the UK
• 16% Black/African-American candidates hired in the US
• Wellbeing Programme reached over 5,000 workers in the extended supply chain

Governance Achievements

• 25% of Executive Director's bonus linked to ESG metrics
• Sustainability metrics linked to Climate Positive by 2040 ambition introduced to wider workforce bonus plan

Climate Goals & Targets

Environmental Challenges

• Macroeconomic and geopolitical uncertainty impacting consumer demand and supply chain
• Foreign exchange volatility
• Image and reputation risks
• Global consumer demand fluctuations
• Climate change (physical and transition risks)
• Loss of data or cyberattack
• Business interruption
• Supply chain disruptions
• IT operations failures
• Intellectual property and brand protection breaches
• Regulatory risks and ethical/environmental standards compliance

Mitigation Strategies

• Group Incident Management team for global/regional disruption
• Agile strategy leveraging brand appeal and global reach
• Hedging some external purchases and intra-group balances
• Codified Incident Management Policy, social media monitoring
• Supplier audits and training programs
• Climate Positive by 2040 ambition, sustainable raw material targets
• Robust cybersecurity framework and data loss prevention measures
• Business continuity plans for key sites
• Advanced inventory management system
• Comprehensive insurance program
• Brand Protection team for IP rights enforcement
• Established framework of policies for ethical and environmental compliance

Supply Chain Management

Supplier Audits: 449 audits conducted

Responsible Procurement

• Responsible Business Principles
• Ethical Trading Code of Conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Flooding
• Droughts
• Heatwaves

Transition Risks

• Carbon pricing
• Consumer preference shifts
• Increased regulation
• Reputational risks
• Liability risks

Opportunities

• Resource efficiency improvements
• Energy source diversification
• Development of low-emission products and services
• Access to new markets (e.g., rental services)
• Participation in renewable energy programs

Reporting Standards

Frameworks Used: TCFD, SASB, UN SDGs

Certifications: LEED, BREEAM, FSC

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals as detailed in Responsibility Data Appendix

Sustainable Products & Innovation

• Products made with certified organic cotton, recycled nylon/polyester, certified wool
• Refreshed Trench Coat in certified organic cotton

Awards & Recognition

• AAA rating from MSCI
• Highly Commended in Communicating Integrated Thinking at the 2022 Finance for the Future awards
• Leadership (A) score in 2022 CDP Climate Change survey
• Bloomberg Gender-Equality Index (GEI) for three consecutive years
• Top performer in 2023 FTSE Women Leaders Review

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Sourcing
• Circular Economy
• Diversity, Equity & Inclusion
• Ethical Trading
• Community Investment

Environmental Achievements

• 45.9% reduction in scope 3 emissions from a FY 2018/19 base year
• 93% reduction in scope 1 and scope 2 (market-based) emissions from a FY 2016/17 base year
• 100% of electricity consumed matched with renewable generation
• 55% of key raw materials certified or responsibly sourced
• 100% of consumer paper-based packaging FSC® certified
• Eliminated plastic from consumer packaging

Social Achievements

• Launched Burberry Inspire youth empowerment program, positively impacting 219,377 people in FY 2023/24
• Expanded aftercare services (refresh and repair)
• Increased number of social compliance audits (495 onsite, 100 desktop)
• 71% of finished goods supply chain partners underwent social compliance audit
• 90% of colleagues completed Diversity, Equity and Inclusion training
• 57% female representation in leadership

Governance Achievements

• 25% of Executive Directors' annual bonus linked to ESG performance
• Sustainability metrics linked to wider workforce bonus plan
• Implemented enhanced human rights due diligence approach

Climate Goals & Targets

Environmental Challenges

• Slowdown in global luxury demand
• Macroeconomic challenges impacting consumer spending
• E-commerce impacted by changes in consumer behavior
• Increased stock provisions and investment in product
• Increased property costs from store refurbishment program

Mitigation Strategies

• Adapting creative expression, collections, and customer experience to market conditions
• Reconfiguring supply chain to deliver elevated offer
• Strengthening internal manufacturing capabilities
• Refreshing core offer with Burberry Classics
• Elevating the customer experience in stores and online
• Disciplined cost control

Supply Chain Management

Supplier Audits: 495 onsite social compliance audits; 100 desktop assessments; 71% of finished goods suppliers audited

Responsible Procurement

• Responsible Raw Materials Sourcing Policy
• Ethical Trading Code of Conduct
• ZDHC Supplier to Zero program
• Water Conservation Framework
• Vendor Ownership Programme

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic climate shifts
• Water scarcity
• Flooding

Transition Risks

• Carbon pricing
• Consumer preference shifts
• Reputational damage
• Climate litigation

Opportunities

• Resource efficiency
• More efficient buildings
• Lower-emission energy sources
• Development of low-emission products and services
• Access to new markets

Reporting Standards

Frameworks Used: TCFD, GRI, SASB

Certifications: LEED, BREEAM

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through renewable energy use, waste reduction, emissions reductions, ethical labor practices, and collaborations with various organizations.

Sustainable Products & Innovation

• Burberry Classics collection
• Refillable fragrance
• Hydroponic cotton

Awards & Recognition

• Personnel Today HR Impact Award
• Gold Brandon Hall Award