Climate Change Data

Environmental Metrics

ESG Focus Areas

• Fair and Safe Factories
• Environmental Sustainability
• Community Engagement

Environmental Achievements

• Prevented over 23,500 pounds of material from entering landfills in preparation for a move to new headquarters.
• Recycled over 5,700 lbs of electronics at a community electronic waste recycling event.
• Reduced the amount of adhesives used to attach outsoles to uppers from two coats to one, saving over 148,000 kilowatt hours of energy and $50,000 annually.
• Introduced injection molding, reducing EVA waste from 40% to 5% in some cases and saving over three million dollars.
• Introduced 3D printing technology, reducing pollution from travel and shipping and shortening the product design process.
• Reduced shoebox weight by 11%, spatial footprint by 15%, eliminated glue, saving close to 500 tons of paper and over $600,000 annually.

Social Achievements

• Implemented a new software system to track employee volunteer time.
• Logged over 7,000 volunteer hours.
• Paid employees for up to 24 hours of volunteering each year.
• Donated over 400,000 pairs of shoes and boots to Soles4Souls.

Governance Achievements

• Established an Ethical Supply Chain (ESC) program with a Supplier Code of Conduct.
• Conducted annual audits in footwear manufacturing facilities and key material suppliers.
• Implemented capability building training within the supply chain.
• Published a list of factories online.

Climate Goals & Targets

Environmental Challenges

• Data collection challenges in measuring Corporate Responsibility efforts.
• Ensuring fair and safe working conditions in independent factories.
• Reducing environmental impact of manufacturing and material sourcing.
• Data availability in the supply chain, particularly energy data from factory partners.

Mitigation Strategies

• Collaborated with Ceres to improve Corporate Responsibility program.
• Implemented Ethical Supply Chain (ESC) audit program with corrective action process.
• Invested in capability building training for supply chain partners.
• Worked with the Leather Working Group to certify tanneries.
• Implemented initiatives to reduce material consumption and improve efficiency.
• Working with suppliers to collect more environmental data and train them on HIGG Index requirements.

Supply Chain Management

Responsible Procurement

• Deckers Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Environmental Metrics

ESG Focus Areas

• Ethical Sourcing
• Community Impact
• Environmental Impact

Environmental Achievements

• Initiated installation of solar panels at corporate headquarters (to offset 29% of electric usage and 40% of electric cost)
• Improved waste management efforts (31.1 tons of material recycled at corporate HQ)
• Reduced volatile organic compounds (VOCs) in various branded products
• 98% of leather sourced from Leather Working Group-certified tanneries

Social Achievements

• Donated $1,283,966 through Deckers Gives to over 256 non-profit organizations
• Employees volunteered 1,986 total hours
• Expanded HERproject women’s empowerment initiative
• Circulated questionnaire to factory workers to understand challenges and tailor training programs
• Reduced Restricted Substances (RS) failure rate to 3.5%

Governance Achievements

• Joined the United Nations Global Compact
• Adopted Sustainable Development Goals (“7 by 2027”)
• Merged Ethical Sourcing and Environmental Stewardship working groups

Climate Goals & Targets

Environmental Challenges

• Excessive overtime and insufficient benefits in some factories
• Challenges in tracing materials back to their origin
• Reducing VOCs in Teva® branded products
• Eliminating SCCPs in the supply chain

Mitigation Strategies

• Increased Ethical Supply Chain (ESC) and Restricted Substances (RS) trainings
• Partner Improvement Program to drive ongoing improvement of working conditions
• Increased unannounced audits for Tier 1 partners
• Deepening materials traceability efforts with 2020 targets
• Continued efforts to reduce VOCs and meet 2019 targets
• Training efforts dedicated to SCCP elimination

Supply Chain Management

Supplier Audits: 100% of Tier 1 factories audited (44 on-site audits and 60 desktop assessments)

Responsible Procurement

• Animal Welfare Policy
• Environmental Criteria Guide
• Restricted Substances List (RSL)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 10
• SDG 12
• SDG 13
• SDG 15

The “7 by 2027” Sustainable Development Goals address various SDGs

Environmental Metrics

ESG Focus Areas

• Human Rights
• Gender Equality
• Reduced Inequalities
• Quality Education
• Community
• Materials
• Waste
• Chemicals
• Climate and Clean Energy
• Water

Environmental Achievements

• Installed solar panels at corporate HQ
• Reduced restricted substances materials test failure rate from 3.5% to 2.4%
• Eliminated 11 harmful chemicals/substances from supply chain
• Traced 100% of hides/skins back to their origin
• Recycled 1,646 tons of materials at distribution centers, preventing 154 tons of waste from landfills
• Reduced VOCs in supply chain

Social Achievements

• Trained 10,976 women on HERhealth through HERproject
• Expanded HERproject collaboration to 5 additional factories
• Donated 5% of retail price of UGG purchases to HERproject during International Women’s Day
• Provided 255 hours of Restricted Substances Team training
• Provided 197.5 hours of Ethical Supply Chain Team training
• Donated $1,123,000 to 176 nonprofit organizations
• 1,941 volunteer hours in US and 1,303 in APAC

Governance Achievements

• 100% of Tier 1 factories audited (including onsite and desktop assessments)
• Formal adoption of a zero-tolerance policy on harassment

Climate Goals & Targets

Environmental Challenges

• Maintaining high ethical standards while optimizing operations
• Excessive overtime, insufficient benefits, insufficient first aid, insufficient social insurance, and insufficient fire safety management at some factories
• Single fatal incident at a partner factory

Mitigation Strategies

• Increased training in FY19 to address non-compliance issues
• Investigation and solutions offered following fatal incident
• Continued monitoring of health and safety issues through audits and trainings

Supply Chain Management

Supplier Audits: 100% of Tier 1 partners audited

Responsible Procurement

• Ethical Supply Chain Supplier Code of Conduct
• Performance scorecards for Tier 1 partners
• Regular meetings between Deckers executives and factory owners

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 10
• SDG 12
• SDG 13
• SDG 15

Deckers focuses on SDGs where they can have the most impact.

Sustainable Products & Innovation

• Vegan product offerings

Awards & Recognition

• Best Places to Work 2018
• Certificate of Special Congressional Recognition 2018
• City of Goleta Certificate of Recognition
• Pacific Coast Business Times Top 100 Companies
• Caring Company Award (Hong Kong)

Environmental Metrics

ESG Focus Areas

• Materials
• Waste
• Water
• Gender Equality and Quality Education
• Chemicals
• Climate and Clean Energy
• Human Rights

Environmental Achievements

• Reduced water usage in packaging creation process
• Headquarters’ paper cups eliminated and compostable utensils implemented
• Packaging study completed to reduce waste generation
• Digitalization of product creation to reduce sample creation and waste
• Launched Sanuk virtual brand conference
• Overall water footprint decreased among footwear, midsole, and outsole partners
• Overall, participating partners increased the amount of water they are recycling from 109,807 tons in FY18 to 169,387 tons in FY19
• Continued to decrease overall electric energy consumption
• 97% of leathers/hides used in production sourced from Leather Working Group certified tanneries
• Traced 98% of sheepskin back to processing facility
• Joined Better Cotton Initiative (BCI)
• Signed Responsible Sourcing Network Uzbekistan Cotton Pledge and Turkmenistan Cotton Pledges
• Initiated Sanuk - 2025 Sustainable Cotton Challenge
• Teva recognized on Textile Exchange Leader Board for its increased use of rPET
• UGG recognized on Textile Exchange Leader Board for use of responsible wool and down

Social Achievements

• Launched a partnership with South Coast Montessori to provide better negotiated tuition rates for high-quality child care and child education
• Offered full-time salaried employees flexible time off
• Offered employees a dollar-for-dollar employee contribution match (up to $2,500) on Dependent Care Flexible Spending Accounts
• Announced an expanded paid parental leave program of twenty weeks of full pay for mothers and eight weeks of full pay for fathers
• Obtained EDGE Assess Level certification for gender equality
• Held its second Annual Women’s Leadership Summit
• CEO commitment to Outdoor Industry Diversity Pledge
• Donated approximately $1,332,344 to 141 various non-profit organizations
• Donated 71,779 units of product to Soles4Souls and 10,726 units of product to Good360
• Donated product to those in need following California wildfires and hurricanes

Governance Achievements

• Corporate Governance Committee oversees Corporate Responsibility and Sustainability program
• On track to eliminate PFCs from supply chain by 2020
• Continued training and monitoring resulting in year-over-year reduction of restricted substances failures

Climate Goals & Targets

Environmental Challenges

• Slight increase in water usage at the tannery level
• Year-on-year increase in waste generation among 25 key partners (due to factory construction activities)
• Slight increase in energy consumption per pair among footwear factories and tanneries
• Top findings of non-compliance: excessive overtime, insufficient PPE management, insufficient benefits, insufficient fire safety management, and improper machine safety management

Mitigation Strategies

• Intend to continue working with tanneries to make progress towards water reduction goals
• In FY20, ensure waste numbers accurately reflect waste from production
• Long-term goal remains reduction of energy consumption among key partners
• Ongoing onsite audits and regular training to improve safety
• Regional workshops and summit to enhance Ethical Supply Chain program
• Extended HERproject trainings to additional factories

Supply Chain Management

Supplier Audits: 100% of T1 partners audited (32 onsite audits and 103 desktop assessments)

Responsible Procurement

• Ethical Sourcing and Animal Welfare Policy
• Supplier Code of Conduct based on ILO standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: LEED Silver

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 10
• SDG 12
• SDG 13
• SDG 15

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• UGGpure (repurposed wool)
• UNIFI recycled polyester (rPET)
• TencelTM (planned for FY20)
• Hemp
• Yulex®

Awards & Recognition

• Barron's 100 Most Sustainable U.S. Companies (number 52)
• 5 Years Plus Caring Company Logo (Deckers Asia Pacific Limited)
• Good MPF Employer Award (Deckers Hong Kong Office)
• Investment in People award (Kids Helping Kids Foundation)
• Gold halo award (Angels Foster Care)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Ethical Supply Chain
• Waste Reduction
• Water Conservation
• Human Rights
• Gender Equality
• Community Investment

Environmental Achievements

• All brands reduced footwear emissions, water, and energy per pair since FY19 baseline.
• California and Midwest Distribution Centers on track to become zero-waste by end of 2023.
• Reduced absolute GHG emissions by approximately 50% (scope 1 and 2) and approximately 28% per $m gross profit (scope 3) from FY19 baseline.
• Influenced 890,000 acres of land through regenerative farming practices (as of September 2023).

Social Achievements

• As of March 31, 2023, over 24% of director-level and above employees in the US are from BIPOC communities (increase of over 3% from prior year).
• In FY23, 43% of all new US-based hires (excluding retail and distribution center employees) identified as BIPOC.
• As of March 31, 2023, 49% of director-level and above employees and 40% of the Board of Directors identify as female.
• Supported gender equality through HERproject, empowering over 47,000 women.
• Donated $1,400,000 to organizations promoting social and racial equality.
• Employees volunteered over 15,000 hours.
• Donated over 343,000 pairs of shoes to Soles4Souls.

Governance Achievements

• Board of Directors oversees ESG strategy through Corporate Responsibility, Sustainability & Governance Committee.
• 10% modifier tied to specific ESG initiatives included in the annual cash incentive award program for executive leadership team in FY23.
• Board of Directors is 40% female and 60% from underrepresented communities.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Increased energy and water consumption among some supply chain partners.
• Increased waste generation among some supply chain partners.

Mitigation Strategies

• Working with Carbon Trust to oversee carbon accounting and establish carbon reduction targets.
• Expanding environmental monitoring programs using HIGG FEM module (now Worldly).
• Developing alternative sourcing strategies.
• Implementing waste reduction initiatives at distribution centers.
• Collaborating with supply chain partners to improve sustainability practices.

Supply Chain Management

Supplier Audits: 100% of Tier 1 factories audited annually; Majority of Tier 2 suppliers engaged through audits, training, or environmental monitoring.

Responsible Procurement

• Ethical Sourcing and Animal Welfare Policy
• Conflict Minerals Policy
• Restricted Substances Policy
• Paper and Forest Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: No external assurance obtained in FY23

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 10
• SDG 12
• SDG 13

Initiatives contribute to these goals through various programs and targets outlined in the report.

Sustainable Products & Innovation

• UGG Classic Mini Regenerate
• UGG Tasman Regenerate
• Teva Geotrecca Mid
• Sanuk Veg Out collection
• HOKA TC 1.0

Awards & Recognition

• Bloomberg Gender Equality Index
• Investor’s Business Daily’s 100 Best ESG Companies
• Newsweek’s America’s Most Responsible Companies
• Newsweek’s America’s Greenest Companies
• JUST Capital/CNBC’s Most Just Companies
• U.S. News & World Report’s Best Companies to Work For
• REPREVE® Champions of Sustainability