Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions year-on-year relative to revenue. Installed SMART meters across the UK estate; converted 80% of UK stores to LED lighting; committed to purchasing at least 40% of UK electricity from renewable sources; partnered with third-party distributors with EcoVadis Gold sustainability rating; trialed reverse collections from retail stores.

Social Achievements

• Launched The Watches of Switzerland Group Foundation with an initial £1.5 million donation and a further £1.5 million planned for FY22; continued partnership with The Prince’s Trust, donating £150,000; launched a food bank program donating £160,000 in the UK and $100,000 in the US; maintained full employment and salaries during lockdowns; introduced enhanced learning and development initiatives, including over 32,000 e-learning modules in the UK and 13,250 hours of training in the US; launched a new Rolex training program; established a Diversity Council; signed the British Retail Consortium’s ‘Better Jobs’ Diversity & Inclusion Charter.

Governance Achievements

• Established an ESG Committee chaired by Rosa Monckton; implemented a Whistleblowing Policy with a third-party helpline; reviewed and updated Anti-Bribery and Corruption Policy; maintained compliance with the UK Corporate Governance Code 2018.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting stores, supply chain, and consumer spending; store closures in the UK (approximately 26 weeks); reduced footfall and tourism; supply chain disruptions; reduced airport business; challenges in maintaining consistent high-quality customer experience across all channels.

Mitigation Strategies

• Implemented a crisis response team; maintained regular communication with the Board; introduced distancing and hygiene measures; implemented home working for support center colleagues; worked with suppliers to adapt supply and payment terms; implemented remote trading and clienteling services; reduced cost base, capital expenditure, and cash commitments; engaged with landlords to manage rent obligations; accessed government support schemes (CJRS and PPP); launched “By Personal Appointment” booking system; launched Luxury Watch and Jewellery Virtual Boutiques; enhanced digital marketing initiatives; invested in employee training and development; expanded after-sales and servicing proposition.

Supply Chain Management

Supplier Audits: Responsible Sourcing Audit Programme by UL Verification Services Inc.

Responsible Procurement

• Vendor Code of Conduct; RJC certification; sourcing of precious metals from LBMA Good Delivery List; sourcing of exotic skins from farmed sources; compliance with CITES; Modern Slavery Statement.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting distribution centers and offices; flooding in the UK; hurricanes in Florida.

Transition Risks

• Government regulations ending sale of new petrol and diesel vehicles by 2030; potential for increased taxation or levies related to climate change.

Opportunities

• Development of energy-efficient products and services; expansion of watch repair and service centers; development of pre-owned luxury watch proposition.

Reporting Standards

Frameworks Used: UK Corporate Governance Code 2018, GRI, TCFD

Certifications: Responsible Jewellery Council (RJC)

Third-party Assurance: BDO LLP (limited assurance for Scope 1 & 2 emissions and energy consumption)

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Responsible Sourcing

Environmental Achievements

• 100% of UK properties now powered by renewable sources
• Grew our After-Sales and Servicing business by 59% across the Group
• Increased Group sales of pre-owned watches by 121%

Social Achievements

• Colleague engagement score of 86% with 85% participation
• 50 free shares awarded to all colleagues
• Ranked #11 in the FTSE 250 Women Leaders Review
• Donated £4.5 million to date to The Watches of Switzerland Group Foundation to support local communities

Governance Achievements

• Established an ESG Board Committee and appointed a Head of ESG
• Committed to Net Zero emissions by 2050 and set near term carbon reduction targets, in line with the Paris Climate Agreement to limit global temperatures to 1.5°C
• Achieved Fair Tax Mark accreditation

Climate Goals & Targets

Environmental Challenges

• Extreme weather events disrupting offices and distribution centers
• Increased office and showroom energy requirements for heating and cooling
• Legal requirement for fleet to be EVs
• Changing consumer preferences

Mitigation Strategies

• Using the Tableau Climate Risk dashboard to understand where the most severe flood, rainfall, heat, and wind events are and integrating them into standard risk management and business continuity approaches
• Installing SMART meters across the whole UK estate and the use of temperature controls and group wide energy monitoring
• Offering electric vehicles in the UK as part of our operational fleet and company cars
• Providing source information on precious stones and metals used in our products

Supply Chain Management

Supplier Audits: 3 supplier manufacturing facilities audited in 2021

Responsible Procurement

• Supplier Code of Conduct
• Supplier Manual
• EcoVadis

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Increased energy requirements

Transition Risks

• Legal requirement for EV fleet
• Changing consumer preferences

Opportunities

• Reduced energy consumption
• Proactive supplier collaboration
• Renewable energy use
• Marketing on product longevity

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Fair Tax Mark

Third-party Assurance: BDO LLP

Sustainable Products & Innovation

• Watches with recycled materials (Panerai, Oris, etc.)
• Sustainable packaging (Breitling)
• Solar-powered watch (Cartier)

Awards & Recognition

• FTSE4Good UK index inclusion
• Fair Tax Mark accreditation

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Product

Environmental Achievements

• Reduced Group GHG emissions by 3.1% year-on-year
• Improved CDP Climate Change score from 'C' to 'B'
• Increased number of watches repaired, serviced, or resold by 2% (as a percentage of new watch sales)
• Expanded repairs and servicing capacity by almost 10,000 sq ft
• 92% of UK vehicle fleet EV or hybrid
• 31% of client home deliveries by EV vehicles

Social Achievements

• Achieved Real Living Wage employer status in the UK
• Ranked #10 in the FTSE 250 Women Leaders Review
• Donated £1.5 million to The Watches of Switzerland Group Foundation
• 23% increase in colleague volunteering hours
• Improved ISS Social Quality Score from 4 to 1

Governance Achievements

• Improved CDP score year-on-year from a C to a B
• Linked existing loan facility to near-term science-based emission reduction targets and circularity goals
• Maintained the recommendations for the Parker Review for the Board
• Met the recommendations of the FTSE Women Leaders Review

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment in the UK in the second half of FY24, resulting in a 5% decline in UK and Europe revenue.
• High inflation and interest rates impacting UK consumer spending.
• Significant price increases from luxury watch brands due to the strong Swiss Franc.
• Reduction in overseas shoppers in the UK due to Brexit.
• Increased cost of Interest Free Credit due to annualization of interest rate rises.

Mitigation Strategies

• Continued market share gains in key markets due to a differentiated business model.
• High-quality growth through showroom enhancement, strategic acquisitions, and infrastructure building (particularly in the US).
• Launch of Rolex Certified Pre-Owned program.
• Acquisition of Roberto Coin Inc. to accelerate luxury branded jewellery strategy.
• Investment in showroom portfolio and strategic acquisitions.
• Focus on embedding Xenia Client Experience Programme.

Supply Chain Management

Supplier Audits: 59% of jewellery suppliers by turnover audited since FY23

Responsible Procurement

• Vendor Code of Conduct
• ESG Partner Standards
• EcoVadis
• RJC accreditation

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (cyclones, hurricanes, floods, extreme heat)
• Increased energy requirements for heating and cooling

Transition Risks

• Cost of compliance with environmental legislation
• Carbon pricing
• Changing consumer preferences
• Expectations for responsible conduct from stakeholders

Opportunities

• Energy efficiency initiatives
• Renewable energy procurement
• Marketing on the prolonged lifetime of watches and jewellery
• Proactive collaboration with suppliers to reduce energy

Reporting Standards

Frameworks Used: TCFD, CDP, UN SDGs, UN Global Compact, GRI, SASB

Certifications: Real Living Wage, Fair Tax Mark, B Corp (ID Genève)

Third-party Assurance: BDO LLP

UN Sustainable Development Goals

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

Initiatives contribute to these goals through emission reductions, sustainable procurement, circular economy practices, and community investment.

Sustainable Products & Innovation

• Rolex Certified Pre-Owned
• William Wood watches with recycled materials

Awards & Recognition

• Mappin & Webb named CSR Jewellery Retailer of the Year