Climate Change Data

Environmental Metrics

ESG Focus Areas

• Protecting the Environment
• Championing Better Lives
• Creating Timeless Style

Environmental Achievements

• Established a science-based target to reduce absolute GHG emissions by 30% by 2030 (Scope 1, 2, and 3).

Social Achievements

• Launched a new Supplier Engagement Strategy to increase transparency and accountability in the supply chain.

Governance Achievements

• Board-level oversight of climate-related issues through the Nominating, Governance, Citizenship & Sustainability Committee.

Climate Goals & Targets

Environmental Challenges

• Increased severity and frequency of extreme weather events impacting supply chain and operations.
• Changes in precipitation patterns affecting raw material availability and quality.
• Increased insurance premiums and potential reduced insurance availability due to extreme weather.
• Potential for carbon taxes and other pricing schemes affecting energy costs.
• Transitioning to lower emissions technologies.
• Increased stakeholder concern or negative feedback due to perceived inaction on climate change.

Mitigation Strategies

• Enterprise Risk Management (ERM) process to identify, assess, and respond to climate-related risks.
• Detailed risk assessment process for climate change.
• Investment in technologies to reduce carbon footprint (e.g., Natural Fiber Welding).
• Setting science-based greenhouse gas reduction targets.
• Commitment to source 100% renewable electricity by 2025.

Supply Chain Management

Supplier Audits: 100% of suppliers by number; 100% total procurement spend (direct and indirect)

Responsible Procurement

• Code of conduct featuring climate change KPIs.
• Climate change integrated into supplier evaluation processes.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events.
• Changes in precipitation patterns.

Transition Risks

• Carbon pricing mechanisms.
• Transitioning to lower emissions technologies.

Opportunities

• Resource efficiency improvements in production and distribution.
• Diversification and increased global footprint for sustainable production.
• Development of new sustainable products and services.
• Positive reputation among stakeholders.
• Shift in consumer preferences towards sustainable brands.
• Development and expansion of low-emission goods and services.

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Science Based Targets initiative (SBTi), UN Fashion Industry Charter for Climate Action, RE100

Sustainable Products & Innovation

• Products using recycled content.
• Products using regeneratively grown fibers.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Retrofitted 37 stores in North America with energy-efficient LED lighting, resulting in estimated annual CO2e savings of 2128 metric tons.
• Sourced renewable electricity at 38 stores, offices, and warehouses in Europe through Guarantees of Origin, resulting in estimated annual CO2e savings of 1448 metric tons.
• Sourced renewable electricity at Nutley, NJ office through the purchase of 2,749 MWh of renewable energy certificates, resulting in estimated annual CO2e savings of 1743 metric tons.

Social Achievements

• Launched a new Supplier Engagement Strategy to foster increased transparency and accountability in the supply chain.
• Integrated citizenship and sustainability into supplier evaluation scorecard.

Governance Achievements

• Board-level oversight of climate-related issues.
• Established a cross-functional Ralph Lauren Climate Risk Taskforce.

Climate Goals & Targets

Environmental Challenges

• Extreme weather impacts on the availability and cost of raw materials (cotton).
• Increased severity and frequency of extreme weather events disrupting operations.
• Climate change impacts on logistics and supply chain.
• Potential carbon taxes and other pricing schemes affecting energy costs.
• Transitioning to lower emissions technology.
• Increased stakeholder concern or negative stakeholder feedback due to perceived inaction on climate change.

Mitigation Strategies

• Sourcing strategy focused on near-shoring, geographic diversification, and the use of sustainable materials (goal to switch to 100% sustainable sourced key materials by 2025).
• Business teams pre-planning for extreme weather events (physical and financial resources).
• Cargo insurance policies to mitigate financial loss from transportation disruptions.
• Consolidating supply chain to mitigate risks from extreme weather events (goal for 80% of business to be with strategic and key suppliers by 2025).
• Strategy to source 100% renewable power in owned and operated facilities by 2025 and achieve net-zero GHG emissions by 2040.
• Fuel formulas used by carriers to smooth/delay extreme volatility of fuel price changes.
• Investing in technologies to reduce the carbon footprint of products and supply chain.
• Setting meaningful commitments to address climate change (science-based greenhouse gas reduction target and commitment to source 100% renewable electricity).

Supply Chain Management

Supplier Audits: 100% of suppliers by number and procurement spend

Responsible Procurement

• Vendor Compliance Packet (VCP) including sustainability policy.
• Supplier Engagement Strategy (SES) integrating sustainability into supplier evaluation scorecard.

Climate-Related Risks & Opportunities

Physical Risks

• Changes in precipitation patterns and extreme variability in weather patterns affecting raw material availability and cost.
• Increased severity and frequency of extreme weather events disrupting operations.
• Extreme weather events affecting logistics and supply chain.

Transition Risks

• Carbon pricing mechanisms increasing energy costs.
• Transitioning to lower emissions technology.

Opportunities

• Use of more efficient production and distribution processes reducing direct costs.
• Development of new products or services through R&D and innovation (Color on Demand).
• Positive brand reputation from demonstrating company values and responsibilities.

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Science Based Targets initiative (SBTi), CDP

Sustainable Products & Innovation

• Products using recycled materials.
• Color on Demand platform.

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Change
• Diversity, Equity & Inclusion
• Human Rights Due Diligence
• Raw Material Sustainability
• Traceability of Raw Materials
• Waste
• Water Stewardship
• Business Ethics

Environmental Achievements

• Achieved 92% waste diversion rate in North America-owned distribution centers
• Transitioned 95% of Ralph Lauren Home core bedding and bath and new fashion bedding to sustainable cotton
• Launched open-source ECOFAST™ Manual to improve dyeing process
• Reduced absolute Scope 1, 2, and 3 GHG emissions by 32% from FY20 baseline

Social Achievements

• Donated over $2.5 million to scholarship funds and educational entities
• Provided more than 42,000 workers with access to health education programs
• Launched the THRIVE app for employee wellness
• Maintained gender parity in leadership positions at VP level and above

Governance Achievements

• Expanded responsibility of Chief Communications Officer to Chief Impact & Communications Officer
• Completed updated materiality assessment using Double Materiality methodology

Climate Goals & Targets

Environmental Challenges

• Pandemic-related challenges and disruptions
• Country and factory lockdowns
• Worker shortages
• Overproduction of wholesale orders

Mitigation Strategies

• Took actions to support and reallocate products between factories or countries
• Implemented agile production models and intelligent buying techniques
• Expanded a pilot project to minimize overproduction of wholesale orders

Supply Chain Management

Supplier Audits: 84% of factories supplying Ralph Lauren in FY22

Responsible Procurement

• Responsible Purchasing Practices
• Supplier Engagement Strategy
• Vendor Management System
• Higg Index Facility Environment Module

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• RLX CLARUS® Polo Shirt (50% recycled cotton)
• Products made with transitional cotton
• Products using recycled down

Awards & Recognition

• Lifetime Achievement Award from Delivering Good

Environmental Metrics

ESG Focus Areas

• Circularity
• Sustainable Materials
• Responsible Design
• Responsible Sourcing
• Climate
• Water Stewardship
• Waste Management
• Chemical Management
• Biodiversity
• Diversity, Equity & Inclusion
• Employee Well-being
• Community Engagement & Philanthropy
• Rights & Empowerment in the Supply Chain
• Ethics & Compliance
• Data Privacy & Security

Environmental Achievements

• Reduced absolute emissions by 29% in FY23 from the FY20 baseline.
• Achieved zero waste to landfill in distribution centers (92% waste diverted).
• Decreased total water use across operations and value chain by 25% from FY20 baseline.
• Transitioned all key suppliers to 100% recycled content polybags.

Social Achievements

• Achieved goal of 20% racially and ethnically diverse Global Leadership Team.
• Maintained gender parity in VP level and above positions (50% women).
• Increased women in factory leadership by 27% across four target countries.
• Rolled out Wage Management Strategy to all strategic and key suppliers.

Governance Achievements

• Launched a new Design with Intent department to guide culturally sustainable design.
• Expanded reporting hotlines to improve access for employees globally.
• No significant breaches of Anti-Bribery and Corruption Policy identified in internal audits.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions.
• Sourcing challenges in the renewable energy marketplace.
• Lack of transparency in the leather supply chain.
• Challenges in achieving full MRSL conformance in the supply chain.
• Structural challenges to progress in shared factories.

Mitigation Strategies

• Strengthened supplier engagement strategies.
• Pursuing multiple renewable energy projects and VPPAs.
• Investing in Impact Partnership Incentives to improve cattle farming practices.
• Expanding chemical visibility and working with suppliers for MRSL conformance.
• Collaborating with stakeholders across the industry to increase efficiency and scale impact.

Supply Chain Management

Supplier Audits: 81% of factories assessed in FY23 (93% of business volume)

Responsible Procurement

• Vendor Compliance Packets (VCPs)
• Sustainable Chemical Management Policy
• Operating Standards
• Better Buying Institute Survey
• Higg FEM assessments
• SLCP assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Investing in circularity

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Cradle to Cradle Certified®

Third-party Assurance: Third-party assurance for Scope 1, 2, and 3 GHG emissions; No assurance for the report as a whole.

UN Sustainable Development Goals

• Not disclosed

Elements of Timeless by Design support the UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Cradle to Cradle Certified® Gold Cashmere Sweater
• POLO® MIRUM® sneaker and crossbody pouch
• RLX CLARUS® Polo Shirt
• Products with recycled cotton

Awards & Recognition

• Fast Company Brands that Matter award
• “Best Collaboration” award from The Impression
• UNCF Corporate Partner Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Sustainable Materials
• Responsible Design
• Responsible Sourcing
• Diversity, Equity & Inclusion
• Employee Well-being
• Community Engagement & Philanthropy
• Human Rights
• Governance
• Chemical Management
• Waste Management
• Water Stewardship
• Biodiversity

Environmental Achievements

• Reduced absolute Scope 1, 2, and 3 GHG emissions by 29% in FY23 from a FY20 baseline
• Achieved zero waste to landfill in distribution centers (92% waste diverted)
• Decreased total water use across operations and value chain by 25% from FY20 baseline
• Transitioned all key suppliers to 100% recycled content polybags

Social Achievements

• Achieved goal of at least 20% racially and ethnically diverse Global Leadership Team
• Maintained gender parity in leadership positions at VP level and above
• Increased women in factory leadership by 27% across four target countries
• Increased Company employee volunteer hours by 500%
• Reached over 98,000 workers through empowerment and life skills programs

Governance Achievements

• No significant breaches of Anti-Bribery and Corruption Policy identified in internal audits

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Challenges in sourcing renewable energy
• Lack of transparency in the leather supply chain
• Structural challenges to progress on gender equity in shared factories

Mitigation Strategies

• Strengthened supplier engagement strategies
• Pursuing multiple renewable energy projects and VPPAs
• Investing in Impact Partnership Incentives to improve cattle farming practices
• Collaborating with stakeholders across the industry to increase efficiency and scale impact on gender equity

Supply Chain Management

Supplier Audits: 81% of factories assessed in FY23

Responsible Procurement

• Vendor Compliance and Operating Standards
• Sustainable materials requirements
• Responsible purchasing practices
• Better Buying Institute Survey

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Investing in circularity

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Cradle to Cradle Certified®

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• 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 various programs and partnerships

Sustainable Products & Innovation

• C2C Certified® Gold Cashmere Sweater
• POLO® MIRUM® sneaker and crossbody pouch

Awards & Recognition

• Fast Company Brands that Matter award
• “Best Collaboration” award from The Impression
• UNCF Corporate Partner Award

Environmental Metrics

ESG Focus Areas

• Integrated Circularity
• Sustainable Materials
• Climate
• Water Stewardship
• Waste Management
• Chemical Management
• Biodiversity
• Diversity, Equity & Inclusion
• Employee Well-being
• Community Engagement & Philanthropy
• Rights & Empowerment in the Supply Chain
• Ethics & Compliance
• Data Privacy & Security

Environmental Achievements

• Decreased absolute emissions by 33% in FY24 from our FY20 baseline
• Decreased total water use across our operations and value chain by 26% from our FY20 baseline
• Diverted 94% of waste from landfill and incineration across our distribution centers
• 84% of chemicals reported conform to the ZDHC Manufacturing Restricted Substances List (MRSL)

Social Achievements

• Launched the first collection of our Artist in Residence program, Polo Ralph Lauren x Naiomi Glasses
• Earned Fortune’s “World’s Most Admired Companies” (2023 & 2024); Forbes’s “World’s Best Employers” (2023); “Best Employers for Diversity” (2024) and “Best Employers for Women” (2023) rankings
• Reached over 136,000 workers through our empowerment and life skills programs

Governance Achievements

• Updated Human Rights Policy to strengthen commitment, adding an explicit provision recognizing the important role of human rights defenders
• Rolled out new compliance training and programming to all employees, which included annual training on our code of business conduct and ethics, workplace harassment, anti-bribery and corruption and data protection and privacy

Climate Goals & Targets

Environmental Challenges

• Increased demand for renewable electricity and disruptions in the supply chain have led to sourcing challenges in the energy marketplace
• Transitional risk from the cost and availability of cotton fiber and fabric
• Traceability in the leather supply chain continues to be an industry-wide challenge

Mitigation Strategies

• Seeking novel contract arrangements for renewable electricity
• Implementing a sourcing strategy focused on the use of sustainable materials, like organic and recycled cotton, and adopting energy- and water-efficient fabric production methods
• Supporting the Leather Impact Accelerator (LIA), a set of tools focused on enabling key stakeholders to foster the development of a more responsible leather supply chain

Supply Chain Management

Supplier Audits: 79% of factories supplying Ralph Lauren in FY24, representing 88% of our business volume

Responsible Procurement

• Supplier Engagement Strategy (SES)
• Better Buying Survey
• Supply Chain Financing strategy
• Transparency & Traceability Playbook
• Supplier Innovation Council

Climate-Related Risks & Opportunities

Physical Risks

• Wind and flood to our operations and key manufacturing suppliers

Transition Risks

• Cost and availability of cotton fiber and fabric

Opportunities

• Development of energy-efficient products
• Transitioning to renewable energy across our entire supply chain
• Shifting toward a more circular economy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Sustainable Products & Innovation

• C2C Certified® Denim Flag Trucker Jacket
• C2C Certified® Flag Cashmere Sweater
• GRS-certified 100% Recycled Cotton CLARUS Polo
• 100% Recycled Cotton CLARUS® Polo Shirt (2024 Team USA Olympics Villagewear)
• RWS-certified Polo sweaters
• RDS-certified Polo outerwear

Awards & Recognition

• Fortune’s “World’s Most Admired Companies” (2023 & 2024)
• Forbes’s “World’s Best Employers” (2023)
• Forbes’s “Best Employers for Diversity” (2024)
• Forbes’s “Best Employers for Women” (2023)