Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Circular Economy
• Regenerative Agriculture
• Net Zero Emissions
• Community Engagement
• Living Wage
• Employee Wellbeing
• Diversity & Inclusion

Environmental Achievements

• 82% of the collection uses leather sourced from environmentally accredited tanneries; this will increase to 100% by Autumn/Winter 2022.
• All UK operations carbon neutral since 2019.
• Somerset factories work with Zero Waste to Landfill providers.
• Launched Eco-Scotchgrain range made from recombined Bio-Plastic materials.
• Launched sunglasses made from biodegradable and recyclable cellulose acetate.

Social Achievements

• Became an accredited Living Wage Employer.
• Produced over 15,000 reusable PPE gowns for frontline NHS workers.
• Worked with the Felix Project to provide over 177k meals for those in need.
• Partnered with National Emergencies Trust to help deliver vital aid.
• Launched Mulberry Exchange, a circular buyback and resell program.
• Established a Diversity and Inclusion committee.

Governance Achievements

• Adopted the Quoted Companies Alliance Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on employees, supply chain, and customers.
• Financial risk management due to downturn in trade.
• Domestic and global economic climate.
• Global Chinese consumer spending volatility.
• Brexit implications.
• Brand and reputational risk.
• Staff retention and engagement.
• Information technology and cybersecurity risks.
• Business interruption risks.
• Intellectual property protection.
• Sustainability and climate change.

Mitigation Strategies

• Four key workstreams (Trading, People, Property, and Inventory) to manage COVID-19 impact.
• Scenario planning to understand revenue loss tolerance.
• Strong digital channel and international presence to offset potential losses.
• Detailed safety standards and procedures.
• Regular cash forecast analysis and credit limit reviews.
• £15.0 million revolving credit facility with HSBC.
• Hedging strategy to reduce exchange rate volatility.
• International market expansion to reduce reliance on domestic market.
• Customs warehouse to mitigate Brexit costs.
• Investment in product development, marketing, and customer experience.
• Due diligence on new partners and suppliers.
• Remuneration reviews, succession planning, and employee engagement surveys.
• Strengthened IT function and investment in technology.
• Business continuity plan and IT system protection.
• Trademarks registration and legal action against infringements.
• Made to Last Manifesto outlining sustainability targets and actions.
• Regenerative agriculture and low-carbon leather sourcing.
• Science Based Targets for carbon reduction.

Supply Chain Management

Responsible Procurement

• Mulberry Global Sourcing Principles
• Regenerative agriculture partnerships
• Leather Working Group (LWG) accredited tanneries
• Better Cotton Initiative (BCI)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Fashion Charter for Climate Action

Certifications: Living Wage Employer

Sustainable Products & Innovation

• Eco-Scotchgrain
• Sunglasses from biodegradable materials

Environmental Metrics

ESG Focus Areas

• Climate Change
• Regenerative Sourcing
• Circularity
• Social Equity
• Community Impact
• Diversity & Inclusion

Environmental Achievements

• Two UK factories carbon neutral since 2019
• 88% of leather in AW22 range sourced from environmentally accredited tanneries
• Launched first ‘farm to finished product’ bags using world’s lowest carbon leather
• 128.5 tonnes of non-recyclable waste diverted from landfill in 2021
• Achieved Zero Waste to Landfill certification for UK operations

Social Achievements

• Became an accredited Living Wage employer in 2021
• Repaired or refurbished over 10,000 items at Lifetime Service Centre
• Provided nearly 270,000 meals for Londoners in need through The Felix Project
• Launched Mulberry Somerset Community Fund
• Implemented hybrid working policy

Governance Achievements

• Adopted The Halo Code
• Joined UNECE leather blockchain pilot
• Partnered with Sustainable Leather Foundation
• Member of various sustainability initiatives (e.g., Science Based Targets initiative, Leather Working Group)

Climate Goals & Targets

Environmental Challenges

• 94% of emissions occur in Scope 3 (supply chain)
• Need to increase traceability throughout leather supply chain
• Need to increase percentage of suppliers paying a Global Living Wage
• Need to reduce water consumption to avoid increasing water risk

Mitigation Strategies

• Working with suppliers to reduce Scope 3 emissions
• Developing a decarbonisation strategy and submitting targets to SBTi
• Working with suppliers to achieve Global Living Wage
• Investing in rainwater harvesting and other water-saving measures

Supply Chain Management

Supplier Audits: Every 12 to 24 months by The Reassurance Network

Responsible Procurement

• Global Sourcing Principles
• Living Wage commitment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative

Certifications: Living Wage Foundation, First Mile Recycling Standard (4 UK stores)

Sustainable Products & Innovation

• Farm-to-finished product bags
• Bags made with recycled nylon and regenerative organic cotton

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Regenerative Sourcing
• Inclusive Communities
• Employee Wellbeing

Environmental Achievements

• 100% of all leather, suede and nappa is sourced from tanneries with environmental accreditations (Leather Working Group, Sustainable Leather Foundation and ISO:14001)
• Lifetime Service Centre restoring more than 10,000 bags a year
• All UK operations carbon-neutral
• Carbon reduction targets submitted to the Science-Based Targets initiative (SBTi)

Social Achievements

• Launched IVF & Fertility Treatment Policy
• Published Menopause and Andropause Policy
• Enhanced Maternity and Pregnant Parent Policy (full pay for first 18 weeks)
• Introduced a hybrid working policy
• Continued leather goods manufacturing apprenticeship programme

Governance Achievements

• Appointment of an additional independent non-executive Director (expected announcement)
• Formal adoption of the Quoted Companies Alliance Corporate Governance Code 2018

Climate Goals & Targets

Environmental Challenges

• Macro-economic uncertainty impacting UK and Asia Pacific retail sales
• High inflation
• COVID-19 lockdowns in China and South Korea
• Lack of VAT-free shopping in the UK impacting tourist footfall
• Rising global inflation and increasing energy costs impacting supplier pricing

Mitigation Strategies

• Increased international market sales
• Developed direct-to-customer model (acquisitions in Sweden and Australia)
• Optimised UK store network (selective openings and closures)
• Introduced price increases to protect margins
• Fixed energy price for three years
• Strengthened local senior management in Asia
• Short-term leases in China
• Ongoing marketing and technology investments
• Close monitoring of inflation and cost prices
• Negotiating cost prices ahead of delivery

Supply Chain Management

Supplier Audits: Regular surveys of Tier 1 and 2 product suppliers

Responsible Procurement

• Global Sourcing Principles (minimum requirements for conducting business, including ILO’s four fundamental principles for rights at work)
• Sourcing from tanneries with environmental accreditations
• Use of sustainable materials (ECONYL, Better Cotton, Eco-Scotchgrain, Bio-Acetate, recycled polyester/nylon, responsibly sourced down and feathers)

Climate-Related Risks & Opportunities

Transition Risks

• Increased regulation and environmental standards

Opportunities

• Development of energy-efficient products
• Regenerative agriculture

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: ISO 14001 (Tanneries), Living Wage Foundation

Sustainable Products & Innovation

• Carbon Neutral Lily
• Softie ready-to-wear products (recycled nylon and recycled silk padding)
• Micro bags
• M Zip bag family
• Link bag family
• Mulberry x Miffy collection (100% environmentally accredited carbon neutral leather)

Awards & Recognition

• Sustainability Luxury Brand of the Year (Walpole British Luxury Awards)
• Championing the Planet (Great British Brands Awards)
• Brand of the Year (Drapers Sustainable Fashion Awards)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Regenerative Sourcing
• Net Zero Manufacturing
• Product Circularity
• Inclusive Communities

Environmental Achievements

• All leather, suede and nappa sourced from tanneries with environmental accreditations since Spring Summer 23.
• Near-term science-based emissions reduction targets approved by the Science Based Targets initiative (SBTi) in April 2024.
• Installed solar panels at The Willows factory, generating renewable energy.
• Repurposed over 4 million coffee cups into Mulberry Green paper through CupCycling™.

Social Achievements

• Launched several Employee Resource Groups (ERGs) to foster diversity, equity, and inclusion.
• Reduced mean hourly pay gap year-on-year.
• Continued apprenticeship program.
• Employees volunteered over 1,000 hours.

Governance Achievements

• Amended articles of association to formally recognise sustainability commitments.
• Awarded B Corp Certification in September 2024.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment impacting consumer spending.
• Decline in consumer spending across all regions.
• Reduced footfall in Chinese and South Korean markets.
• Lower discretionary purchasing in the UK.
• Lack of VAT-free shopping in the UK impacting tourism.

Mitigation Strategies

• Reviewed all costs and tightened capital expenditure.
• Embarked on a stock optimisation programme to manage inventory levels.
• Increased debt facilities to £27.5m and renegotiated covenants.
• Increased focus on omni-channel distribution and international development.
• Launched pop-up stores to build brand awareness.
• Launched product collaborations to expand ranges and reach new customers.
• Reduced product lines and focused product selection.

Supply Chain Management

Supplier Audits: Regular audits of finished goods suppliers using third-party auditors.

Responsible Procurement

• Global Sourcing Principles signed by all suppliers.
• 100% of leather sourced from environmentally accredited tanneries.

Climate-Related Risks & Opportunities

Transition Risks

• Changes to sourcing and manufacturing impacting net-zero targets.
• Changes in customer spending or behavior.
• Enhanced emissions reporting obligations.
• Changes to regulations and legislation.

Opportunities

• Build further supply chain relationships with suppliers committed to regenerative agriculture.
• Improved training programs and apprenticeships.
• Expand internationally and grow sustainability and circularity credentials.

Reporting Standards

Frameworks Used: TCFD, GRI

Certifications: B Corp

Sustainable Products & Innovation

• Bags made with recycled nylon or ECONYL.
• Use of Eco-Scotchgrain.

Awards & Recognition

• Brand of the Year at the Drapers Sustainability Fashion Awards (May 2023).