《Ralph Lauren:2022全球公民和可持续发展报告(英文版)(96页).pdf》由会员分享,可在线阅读,更多相关《Ralph Lauren:2022全球公民和可持续发展报告(英文版)(96页).pdf(96页珍藏版)》请在三个皮匠报告上搜索。
1、Global Citizenship&Sustainability Report2022IN TRODU CTION&OV E RV IE WA Message from Our Chairman and CEO 3Our Global Citizenship&Sustainability Approach 4Our Goals 6Our Year in Review 7Governance 8CR E ATE W ITH IN TE N TIntegrated Circularity 11Sustainable Materials 14Responsible Design 21Respons
2、ible Sourcing 25PROTECT TH E E N V IRON ME N TClimate 29Water Stewardship 35Waste Management 39Chemical Management 43CH A MPION B E T TE R L IV ES Diversity,Equity&Inclusion 46Employee Well-Being 52Community Engagement&Philanthropy 53Rights and Empowerment in the Supply Chain 592 02 2 ESG SU PPL E M
3、E N T Factory Disclosure 70Collaborating for Impact 72Global Reporting Initiative 75Sustainability Accounting Standards Board 89Task Force on Climate-Related Financial Disclosures 94A B OU T TH IS R E P ORTTable ofContents2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|2Create With IntentProtect the E
4、nvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewFor more than half a century,weve stood for things that last that never go out of style.This core belief in timelessness influences everything we create from our iconic Polo shirt to our cashmere sweaters and hand-stitched ties.
5、These products and more were created to be worn,loved and passed on through generations.Today,we are applying this philosophy beyond the products we make and into the world around us.We are calling this next chapter in our Citizenship and Sustainability journey Timeless by Design.It represents our c
6、ommitment to ensure timelessness is embedded from inspiration through to products every use and reuse across generations taking into account how we value nature,and how we champion the people and communities that intersect our business.This years Global Citizenship and Sustainability Report captures
7、 this ambition and reflects on this past years progress,including:Strengthening our commitment to advancing a circular economy through our new Live On promise to enable our past and future products to live on responsibly by 2030;Dear Teams,Customers,Community and Business Partners,Investors and Frie
8、nds,A Message From Our Chairman and CEORALP H LAU R E NPATR IC E LO UV E TExecutive Chairman and Chief Creative OfficerPresident and Chief Executive Officer Establishing an internal Design with Intent department focused on culturally sustainable design,product development and storytelling;Deepening
9、our work across Native and Indigenous communities,including the launch of our Artists in Residence program;Expanding our portrayal of the American dream through our HBCU collaboration Polo Ralph Lauren Exclusively for Morehouse and Spelman Colleges Collection;Introducing the RLX CLARUS Polo Shirt,ma
10、de with the worlds first high-performance cotton fabric comprised of 50%recycled cotton;and Creating the U.S.Regenerative Cotton Fund with the Soil Health Institute to expand climate-smart agriculture on American cotton farms.Our commitments and this progress reflect the incredible passion of our te
11、ams and represent a strong foundation on which we will continue to build.Our Timeless by Design philosophy was embodied in the very first tie created more than 55 years ago,and today,it extends wider and deeper into the precious world and communities around us.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY
12、REPORT|3Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewOur Global Citizenship&Sustainability Approach“I discovered the heritage of a timeless world,uncontrived,free-formed and free-spirited,natural and from the earth,and it touched me and becam
13、e the living part of all I design.”RALPH LAURENFor more than 50 years,weve stood for values and things that last things that are timeless and enduring,things to cherish as they age and that never fall out of style.This belief remains central to who we are today.It is with this core belief that we ha
14、ve reimagined our pursuit of a more equitable and sustainable future.We are taking what it means to create timeless style and creating a business and products that are not only enduring but can inspire the dream of a better life with a plan for a better future.We call this evolution Timeless by Desi
15、gn.With Timeless by Design,we are taking our philosophy of creating products that are meant to be passed down through generations and applying it to everything that we do from how we make our products,to how we impact the Earth and how we champion our people and our communities.Our Timeless by Desig
16、n approach is supported by three pillars:Create with Intent,Protect the Environment and Champion Better Lives.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|4Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewCR E ATE WITH I NTENTWeve always created
17、 products that are meant to be loved and passed down from generation to generation.Now,we are making those pieces more responsibly:with more sustainable materials,according to circular design principles and by instilling cultural sustainability practices.By designing timelessness in from the start,w
18、ell enable all our products to live on responsibly.PROTECT TH E ENVI RONMENTCreating timeless products goes beyond their design.We strive to operate our business in ways that respect our planet,such as using renewable energy,managing our waste properly and using our water responsibly.By adopting pra
19、ctices that help preserve the worlds natural sources,we can be stewards in protecting our environment for generations to come.CH A MPION B E T TE R L IV ESCreating a business that is timeless and has a positive impact on tomorrow means building relationships that stand the test of time ensuring ever
20、yone is included,respected and empowered.Thats why were committed to working with and supporting our employees,partners and communities to build a brighter future.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|5Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduc
21、tion&OverviewOur GoalsCREATE WITH INTENTEnsure all of our design,production and merchant teams receive annual training on sustainable,circular,inclusive and culturally aware designFive of our iconic products will be C2C-Certified by 2025Offer high quality products made with 100%recycled cotton by 20
22、25Enable our past and future products to Live On responsibly by 2030Set and implement circular principles into our design and development process by 2025Connect consumers with options to rent,repair and recirculate our products in select top cities by 2025Invest in scaling innovative technologies an
23、d regenerative practices to advance a circular economy by 2025Achieve 100%sustainably sourced key materials by 2025100%of animal-derived materials will be certified to an animal welfare standard and traceable by 2025Achieve 100%wood substrates used in key elements of new store interiors Forest Stewa
24、rdship Council(or equivalent)Certified repurposed or recycled by 202580%of our business will be with key and strategic suppliers that meet the criteria across business,social and environmental performances and potential by 2025ACHIEVED FOR FY22ON TRACKON TRACKON TRACKON TRACKON TRACKON TRACKEnsure a
25、t least 20%of our Global Leadership Team is comprised of underrepresented racial and ethnic groups by FY23Maintain gender parity with equal representation in leadership positions at the VP level and aboveIncrease employee volunteer hours by 25%compared to a FY22 baseline by 2025Roll out our Wage Man
26、agement Strategy to all of our strategic and key suppliers to address fair and timely compensation for factory workers by FY23Make empowerment and life skills programs available to 250,000 workers across our supply chain by 2030 Achieve a 25%increase of women in factory leadership that seeks to crea
27、te a path to parity by 2025CHAMPION BETTER LIVESACHIEVED FOR FY22ON TRACKON TRACKON TRACKON TRACKON TRACKPROTECT THE ENVIRONMENTReduce absolute Scope 1,2 and 3 GHG emissions by 30%by 2030(SBTi-approved)from a FY20 base year and achieve net zero by 2040Power our owned and operated offices,distributio
28、n centers and stores with 100%renewable electricity by 2025Develop a biodiversity strategy and set goals aligned with the Science Based Targets for Nature by 2024Achieve at least a 20%reduction in total water use across our operations and value chain,compared to a FY20 baseline by 2025Achieve zero w
29、aste to landfill across our distribution centers by 2023 Achieve 100%recyclable,reusable or sustainably sourced packaging materials by 2025Eliminate the use of hazardous chemicals in our supply chain by 2025NEWNEWNEWNEWON TRACKON TRACKON TRACKON TRACKON TRACKON TRACKNEW2022 GLOBAL CITIZENSHIP&SUSTAI
30、NABILITY REPORT|6Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewOur Year in ReviewCR E ATE WITH I NTENT Transitioned 95%of Ralph Lauren Home core bedding and bath and new fashion bedding to cotton qualities we consider sustainable,such as organ
31、ic or Better Cotton 77%of our units produced in FY22 met at least one sustainable material criterion up from 33%in FY21 Established an internal Design with Intent department focused on culturally sustainable design,product development and storytelling Continued our commitment to full transparency wi
32、th disclosure of Tier 1 factories and processing units covering 98%of our businessPROTECT TH E ENVI RONMENT Open-sourced the ECOFAST Manual to improve dyeing process and accelerate change in the industry and launched Color on Demand as part of our in-store experience Achieved 92%waste diversion rate
33、 in our North America-owned distribution centers,including diverting more than 17,000 pounds of hangers at our North Carolina distribution center from landfill by working with local recycling vendorsCH A M PIO N B E T TER LI VES Donated over$2.5 million from the Ralph Lauren Corporation and The Ralp
34、h Lauren Corporate Foundation to scholarship funds and educational entities dedicated to providing equitable access to higher education across all races and ethnicities Provided more than 42,000 workers,of which 66%are female,with access to health education programs,as part of our partnership with H
35、ERproject Deepened transparency on our human rights due diligence throughout our supply chain,sharing more details and progress on our goals in wage management and womens empowerment2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|7Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG
36、Supplement Introduction&OverviewGlobal Citizenship&Sustainability is integrated across all levels of our organization and governed by our Board of Directors.GovernanceOur Board of Directors(the Board)is responsible for formal governance of Global Citizenship&Sustainability(GC&S).The Board receives p
37、rogress updates at least once a year and reviews our annual GC&S Report.Various Board committees have additional responsibilities:The Nominating,Governance,Citizenship&Sustainability Committee oversees our environmental,social and governance(ESG)risks and opportunities.The committee receives quarter
38、ly updates;reviews initiatives,goals and policies;and makes recommendations to the Board on ESG matters.Each quarterly update includes a detailed analysis on a specific ESG topic.The Finance Committee and the Nominating,Governance,Citizenship&Sustainability Committee advise on the incorporation of g
39、oals into our corporate strategy and engagement of business initiatives that influence corporate citizenship and sustainability.The Audit Committee assesses ESG risks as part of its overall Enterprise Risk Management(ERM)review.The Talent,Culture and Total Rewards Committee considers performance aga
40、inst Company ESG key performance indicators in their compensation decisions.Our Global Citizenship&Sustainability Steering Committee includes senior leaders from across our Company and meets regularly to prioritize our approach and allocate resources.Committee members also define,track and champion
41、our citizenship and sustainability work,including diversity,equity and inclusion across the organization.In April 2022,we expanded the responsibility and accountability of our Chief Communications Officer into the new role of Chief Impact&Communications Officer.This position was created in recogniti
42、on of the evolving role business plays at the intersection of ESG strategy,policy,communication and action.For more information on our governance structure,policies and other additions,please see our 2022 Proxy Statement.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|8Create With IntentProtect the En
43、vironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewM AT ERIA L ITY As part of regular business operations,we complete an updated materiality assessment every two to three years to refine our understanding of key priority issues based on sustainability risks,opportunities and impa
44、cts.We aim to align these with stakeholder expectations for how we react to impacts of issues on business success,as well as the impacts of the business on the economy,environment and people.We worked with Business for Social Responsibility(BSR),a third-party consulting company,to complete the asses
45、sment using their Double Materiality methodology in 2022.BSR engaged internal and external stakeholders through interviews,focus groups and surveys to analyze our Companys impact on society and the environment,along with our enterprise value.Among the external stakeholders were environmental and soc
46、ial NGOs,supplier and licensee partners and global retailers.Internal stakeholders included employees across all functions,all geographies and levels of the organization.As this latest assessment was completed in May 2022,the FY22 report will primarily use our prior materiality assessment as a basis
47、 for reporting.We found that similar issues to our last assessment remained material along with an increased focus on:Business Ethics Climate Change Diversity,Inclusion&Fair Treatment Human Rights Due Diligence Raw Material Sustainability Traceability of Raw Materials Waste Water StewardshipThe rank
48、ing of issues seen below will influence and drive our future GC&S strategy.Impact on Society and EnvironmentImpact on Enterprise ValueHuman Rights Due DiligenceWater StewardshipClimate ChangeRaw Material SustainabilityDiversity,Inclusion&Fair TreatmentTraceability of Raw MaterialsWasteBusiness Ethic
49、sResponsible Product DesignDeforestationGlobal Philanthropy&CommunityEngagementStakeholder EngagementAir PollutionBiodiversityChemical ManagementSustainable ConsumptionProduct CircularityOccupational Health&SafetySupplier ESG CapacityPackagingAnimal WelfareSupplier DiversityProduct Quality&SafetyTax
50、 HavensResponsible MarketingPublic Disclosures&AccountabilityLiving Wage/Wage ManagementShared ValuesSuccession Planning,TalentOptimization&RetentionRemuneration&Employee BenefitsGood JobsCommunityEnvironmentGovernancePeopleProductSourcing2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|9Create With In
51、tentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewCreate With IntentIN TH IS SECTIONIntegrated Circularity 11Sustainable Materials 14Responsible Design 21Responsible Sourcing 25FPO IMAGESince the inception of our Company,weve always believed in creating things
52、that last.Today,we are embracing our philosophy of timelessness to create more responsibly with more sustainable materials,according to circular design principles and by instilling cultural sustainability practices.With Timeless by Design,we are embedding timelessness from inspiration through to pro
53、ducts every use and reuse across generations.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|10Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewIntegrated Circularity We have always believed in creating timeless products that are meant to be worn,l
54、oved and endure the test of time.Embracing this philosophy,we are implementing responsible design practices,according to circular principles,and extending to consumer experiences.Five of our iconic products will be Cradle-to-Cradle(C2C)-certified Offer high quality products made with 100%recycled co
55、tton Invest in scaling innovative technologies and regenerative practices to advance a circular economy Set and implement circular principles into our design and development processEnable our past and future products to Live On responsibly2030 GOAL2025 GOALSleading circular economy network bringing
56、together businesses,innovators,cities,universities and thought leaders to build a circular economy and scale solutions globally.EMF and its fashion industry partners work to drive momentum toward its Make Fashion Circular vision where clothes are used more,made to be made again and crafted from safe
57、 and recycled or renewable materials.As part of this,Ralph Lauren will capture circularity progress across our operations using Circulytics,a company-level measuring tool developed by EMF.We also joined a coalition of 100 brands,mills and manufacturers in EMFs Jeans Redesign Project,to contribute to
58、 a blueprint for scaling denim production based on the principles of a circular economy.Additionally,we are committed to designing new products according to circular principles,and extending the life of current apparel by piloting ways to rent,repair and recirculate.Investing in circular innovation
59、across the industry is also integral to our mission.Anchored in this commitment and our long-standing vision of timeless style,our circularity strategy is helping to shape our approach to product development and to supporting a more circular textile economy.We continue to explore partnerships with c
60、redible experts within the industry.In 2021,Ralph Lauren joined the Ellen MacArthur Foundation(EMF)as a Network Partner and member of the Fashion Advisory Board.EMF is the worlds CIRCULARITY STRATEGYRalph LaurenConsumer ExperiencesEnable CircularDesign for CircularityAdvance theCircular EconomyPRODU
61、CT SERVICESYSTEMS2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|11Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewD ES IGN PRO DUCTS FOR CI RCULA R ITYWere focused on applying the principles of Cradle to Cradle(C2C)as foundational inspiration for
62、 all aspects of design,development,manufacturing,packaging and the post-sale experience.Ralph Lauren has been working closely with the Cradle to Cradle Products Innovation Institute to support the adoption of the latest version of the C2C standard and to provide apparel brand perspective on its use.
63、In FY22,we began working on our first C2C-Certified product,a luxury cashmere sweater,which will be in-market late 2022.Later this year,we will be kicking off two additional C2C product certification projects and PILLARPRODUCTDesign for CircularitySERVICEEnable Circular Consumer ExperiencesSYSTEMSAd
64、vance the Circular EconomyGOALSBy 2025,five of our iconic products will be C2C-Certified.By 2025,we will offer high quality products made with 100%recycled cotton.We will set and implement circular principles into our design and development process by 2025.By 2025,we will connect consumers with opti
65、ons to rent,repair and recirculate our products in select top cities.By 2025,we will invest in scaling innovative technologies and regenerative practices to advance the circular economy.OUR COMMIT-MENTWe will pursue Cradle to Cradle certification for additional products,leverage innovative technolog
66、ies to further our development of high-quality,100%recycled cotton products and work cross-functionally to develop a set of circular design principles tailored to Ralph Lauren.We will establish both physical and digital platforms that connect consumers to services that help extend the life of their
67、Ralph Lauren products.These include opportunities to sell and buy preloved items,rent iconic pieces and locate resources for recycling maintenance and repairWe will deepen our investment in innovative technologies and regenerative practices to accelerate the production of high-quality,nature-based r
68、aw materials and products.The Three Pillars of Our Circularity Strategybegin leveraging circular principals to influence additional design and development.We will begin applying circularity to our broader design and development approach through the development of Ralph Lauren specific circularity pr
69、inciples.These will be developed with our design and development teams and in collaboration with sustainability and circularity experts.By 2030,our new products will be designed,developed,manufactured and packaged in alignment with these principles.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|12Cre
70、ate With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewCR E ATE C IRC ULAR CONSUMER EX PE RIEN C ESRalph Lauren has committed to extend the life of its products by 2025 by providing consumers ways to rent,repair and recirculate our products.Rental continu
71、es to be one of the pillars of our circular strategy.This year,we are broadening The Lauren Look,our first subscription apparel rental platform,beyond the Lauren Ralph Lauren brand,to include our womens Polo Ralph Lauren brand.In addition to introducing rental programs to consumers,we are donating p
72、roducts that are no longer in circulation to Delivering Good,a nonprofit that gives manufacturers and retailers an efficient way to share excess inventory across their network of nonprofits to help those stricken by poverty,or to provide disaster relief to communities in need across the United State
73、s.We will offer more circular services for consumers as we continue to enable the recirculation of Ralph Lauren product through our various digital and brick and mortar distribution channels.We will also continue to lean into upcycling Ralph Lauren products.Our Digital Product ID(DPIDs)system provid
74、es a scannable QR code on product labels that enable consumers to authenticate garments,affirming the value of products in resale markets.This digital data platform will be further leveraged to support other recirculation opportunities such as recycling and repair.A DVA N CE A CIRCU L A R PRODU CT E
75、CON OMY We believe Ralph Lauren has a unique and important role to play in supporting the advancement of a more circular apparel economy.We will continue to invest in collaborative and innovative partners to help scale technology and materials solutions.Specific investments,such as our significant s
76、upport of Natural Fiber Welding Inc.,help to increase the availability of high-quality inputs and significantly reduce dependence on the extraction of virgin materials.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|13Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement In
77、troduction&OverviewOur focus on quality and authenticity drives us to look for sustainable raw materials through the lenses of durability,craftsmanship and performance.Our sustainable material strategy is driven by our ethos of creating more positive environmental and social outcomes through the sou
78、rcing decisions we make.We recognize the importance of supporting fiber production that contributes to ecosystem functioning and soil health to support a sustainable and profitable fiber industry.A key aspect of our sustainable materials strategy is to pioneer,foster and scale impact through industr
79、y partnerships like the Fashion Pact,UNFCCCs Raw Materials Working Group and Textile Exchange,as well as make long-term commitments that advance our goals.This includes an investment in Leather Impact Partnership Incentives through Textile Exchanges Leather Impact Accelerator and Sustainable Materia
80、lsWe commit to using more materials in a way that results in positive social and environmental impact,protects biodiversity,advances animal welfare and continuously improves the traceability of our raw materials.Achieve 100%sustainably sourced key materials 100%of animal-derived materials will be ce
81、rtified to an animal welfare standard and traceable Achieve 100%wood substrates used in key elements of new store interiors Forest Stewardship Council(or equivalent)Certified repurposed or recycled by 20252025 GOALSThe Ralph Lauren Corporate Foundations founding contribution to the Soil Health Insti
82、tute to create the U.S.Regenerative Cotton Fund(USRCF).In FY22,we continued to increase transparency and traceability of our material use by:Continuing to map our supply chain to enable material origin visibility across each step of the textile and garment supply chain to inform a robust sourcing st
83、rategy,provide assurance of sustainability impacts and mitigate risk.We are piloting technologies to digitally trace U.S.-grown cotton as well as certified fibers in our supply chain.In addition,we are using FIBRETRACE,a technology which relies on luminescent pigments within the fiber to enable phys
84、ical traceability,piloting on transitional cotton sourced from India.Continuing to work towards developing systems to measure the total volume(by weight)of materials used in our product,which will enable us to systematically track our usage more accurately and thus analyze the sustainable attributes
85、 and the impact of our material usage.In January,we launched our Global R&D Studio(Fabrics and Leathers)as a physical and virtual resource built on the principle that all materials must have sustainable attributes.The Studio is a central resource hub for material and processes criteria,guidelines an
86、d developments,including our raw material sustainability dashboard.Designers are able to leverage this resource to source vetted and secured materials.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|14Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&Overvi
87、ew 100%of our cotton will be sustainably sourced,defined as:Better Cotton,organic,transitional,recycled,regenerative or Fair Trade-certified by 2025 100%recycled polyester by 2025 100%Responsible Wool Standard-certified or recycled wool by 2025 100%of viscose will be sourced and verified through Can
88、opyStyle audits by 2025 100%of leather will be traceable and verified to animal welfare and land management standards,or covered by Impact Incentives and 100%of our tanned leather will be Leather Working Group-certified by 2025 100%Responsible Down Standard-certified or recycled down and feathers by
89、 2023 100%Sustainable Fibre Alliance-certified(or equivalent)or recycled cashmere by 2025 100%of the wood substrates used in key elements of new store interiors will be FSC-certified(or equivalent),repurposed or recycled by 2025KEY MATERIAL GOALS DIG ITA L PRODU CT IDE N TIFICAT I O NIn 2019,we laun
90、ched a digital product identification program to link our physical product with the digital world in order to power product authentication,further digitize our supply chain operations,deliver an enhanced consumer experience and enable a platform upon which to build future services and experiences.Ou
91、r DPIDs are hosted on an agile platform so that we can continue to add and scale new features and capabilities,such as facilitating the reuse,resale and recycling of our products to enable a more circular life cycle.The overall goal is to reduce the environmental impact of labeling while improving c
92、onsumer information access and enabling continuous cycling of textile resources.To date,weve incorporated more than 200 factories into the DPID program,and as a result,a majority of our apparel products now have digital IDs,and we expect every product to have a digital ID by 2024.77%of our units pro
93、duced met at least one of our sustainable material criteria in FY22 up from 33%in FY21.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|15Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewSU STA IN A B L E I NNOVATI ONS I N S P O RTSWEARIn FY22,we en
94、joyed success through two separate endeavors in the world of sport.First,our partnership with Natural Fiber Welding was on display at the 2022 Australian Open with the launch of the RLX CLARUS Polo Shirt.It marked the unveiling of a first-to-market patented platform that transforms virgin and recycl
95、ed cotton in ways previously not possible.The shirt featured a high-performance cotton that performs similarly to plastic-based synthetic fabrics like polyester and nylon,but without the use of petroleum-based fossil fuels.The shirt will be available to consumers worldwide in summer 2022.Second,we c
96、ontinued our partnership with the U.S.Olympic and Paralympic teams as their official Opening and Closing Ceremonies outfitter.These winter collections featured a range of sustainable materials and traceable production practices,including the use of recycled polyester,nylon and down along with Respon
97、sible Wool Standard(RWS)-certified,U.S.-grown wool.We were proud to dress the more than 1,000 members of Team USA who competed in Beijing.Were ramping up our cross-industry collaborative efforts alongside the refinement of our own goals.One example is our continued work with the Fashion Pact and Tex
98、tile Exchange to solidify our biodiversity strategy.We are participating in working groups that are developing ways to address biodiversity issues in the leather and cashmere supply chains.This work will leverage the insights provided by the Biodiversity Insights Report,published by Textile Exchange
99、 in November 2021.This report provides the first tool for the apparel and textile industry to benchmark the sectors impacts on biodiversity.More holistically,we are evaluating how our existing climate,water and materials initiatives intersect with the protection and conservation of the natural world
100、 and where we have further opportunities.Our work today from our materials goals to our climate commitments provides a strong foundation for our biodiversity strategy,and we will build upon this foundation as we set further commitments to establish Science-Cased Targets for Nature.Further Committing
101、 to Nature2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|16Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&Overview2.11%WoolIn the U.S.,The U.S.Regenerative Cotton Fund(USRCF)works with growers to support adoption of soil health management systems,includ
102、ing practices such as cover crops and reduced tillage,across more than 1 million acres of U.S.cotton cropland.The USRCF is led by the Soil Health Institute(SHI),a nonprofit with a mission to safeguard and enhance the vitality and productivity of soil through scientific research and advancement.The U
103、SRCF is a first-of-its-kind,farmer-focused and science-based effort to support long-term,sustainable cotton production in the U.S.The USRCF brings together a diverse group of farmers,advisors,landowners,conservationists,soil scientists,educators,business leaders,philanthropists and others who share
104、a common belief that together we can create a long-term sustainable cotton industry in the U.S.The founding investment from The Ralph Lauren Corporate Foundation enables SHI to accelerate and scale these efforts to reach farmers in a way they havent before.FY22 MATERIAL USE80.7%Cotton3.9%Animal deri
105、ved6.6%Polyester6.9%Other1.4%Nylon0.5%Viscose1 FY22 percentages are based on units,not weight of raw materials.Percentages may not add up to 100 due to rounding.2 Primarily includes additional materials used in our accessory and footwear products.0.38%Cashmere0.15%Silk1.26%Leather/SkinsANIMAL DERIVE
106、DCottonCotton accounts for more than 80%of our total material use.In FY22,84%of our cotton products met at least one of our defined sustainability attributes.This year we continued our transition to sustainable cotton for apparel products,including polo shirts,knits and shirts,Ralph Lauren Home tran
107、sitioned 95%of core bedding and bath and new fashion bedding to cotton qualities we recognize as sustainable,such as organic or Better Cotton.In 2021,we sourced more than 19,000 metric tons of cotton lint as Better Cotton,while supporting the not-for-profits holistic efforts to make cotton a more cl
108、imate-resilient,socially-viable and,ultimately,more sustainable crop.Supporting the increased supply of sustainably grown cotton on a global scale is imperative in order to meet our 2025 goal of using 100%sustainably sourced cotton.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|17Create With IntentPr
109、otect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewFurther,we plan to join the U.S.Cotton Trust Protocol in FY23.The Trust Protocol is a voluntary organization for U.S.cotton producers whose goal is to provide a comprehensive program of verification against Trust Prot
110、ocol benchmarks.The Trust Protocol cotton is measured and analyzed at the field level to help farmers demonstrate their environmental credentials.This offers brands such as Ralph Lauren a unique set of assurances to measure sustainability commitments and to work towards tracing U.S.cotton through th
111、e supply chain.Organic cotton fiber currently makes up less than 1%of cotton grown annually.There are significant barriers for farmers who want to switch from conventional to certified organic farming,including financial challenges and a two-to three-year transitional period before achieving certifi
112、cation.Directly supporting farmers during this transition provides an opportunity for brands like Ralph Lauren to help increase the quantity of organic cotton available on the market.In Spring 2023,with the help of The Sourcery and our mill and factory partners,we will introduce products made with t
113、ransitional or in-conversion cotton from farmers in India.P OLYESTER,NY LON AND VI S COS EWe are continuing our efforts to phase out virgin sources of polyester and nylon and switch to recycled options or natural fibers.Currently,polyester accounts for 6.6%of our total material use.In 2021,we:Used a
114、lmost six million pounds of recycled polyester the equivalent of 52 million recycled plastic bottles and representative of 41%of our total polyester use(an 18%increase from FY21)Converted eight major programs across mens,womens and childrens Polo outerwear to recycled polyesterOur material teams con
115、tinue to work with our suppliers to increase the percent of our viscose coming from viscose manufacturers with a“green shirt”rating on The CanopyStyle Audit.Through supplier surveys and other efforts,we achieved our bridge goal of sourcing 50%of our viscose from low-risk manufacturers in FY22.Animal
116、-Derived MaterialsAround 4%of our total material use comes from animal-derived sources.We are committed to the well-being and respectful treatment of animals,as described in our Animal Welfare Policy,which includes our approach to sourcing exotic skins and our long-standing ban on the use of fur.In
117、FY22,we continued increasing our uptake of sustainable materials and our focus on traceability.L E ATH E RIn 2021,64%of our leather tanneries were certified by the Leather Working Group(LWG).Over the past year we elevated our support of sustainable leather in multiple ways.Ralph Lauren was a pioneer
118、 brand in Textile Exchanges Impact Partnership Incentives for the Leather Impact Accelerator,investing directly in support of Brazilian cattle farms to be verified as Deforestation/Conversion-Free(DCF)and to achieve animal welfare certification in the next three years.We also joined LWGs Traceabilit
119、y Task Force and deforestation working groups to help guide further improvements in the leather trade.Lastly,we are participating in the steering committee for the development and finalization of the Responsible Reptile Sourcing Standard(RRSS)as part of the Southeast Asian Reptile Conservation Allia
120、nce(SARCA).2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|18Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewNFW MIRUMMIRUM is a revolutionary alternative material made from renewable resources that include plant-based materials and agricultural b
121、yproducts while also being free of synthetic plastics.We developed the MIRUM Olympic Patch in partnership with Natural Fiber Welding Inc,and added it to Team USAs parade apparel at the 2020 Tokyo Olympics as an initial test of the materials potential.We are currently sampling the material further to
122、 determine its best consumer utilization with an intention to launch the product in 2023.D OWNWe use 100%Responsible Down Standard-certified virgin down or recycled down across our product offerings.We also continue to leverage Primalofts ThermoPlumeTM down alternative,where applicable.Products usin
123、g recycled down will be introduced in our stores in Fall 2022.WO OLWe continue to prioritize working with Responsible Wool Standard(RWS)-certified suppliers.Were exploring additional opportunities for our wool strategy in FY23,such as partnering with growers who are using regenerative practices and
124、other certification options.CASH ME R EOur cashmere strategy focuses on sourcing preferred fibers such as Sustainable Fibre Alliance-certified cashmere that address animal welfare and land management risks,and recycled cashmere,which minimizes waste and has a smaller environmental impact compared to
125、 virgin material.In FY22,we used 3,691 pounds of recycled cashmere in sweater programs.In FY23,we plan to engage in project-based initiatives in cashmere-growing regions to support systemic change and grassland restoration.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|19Create With IntentProtect the
126、 EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewSustainable Store InteriorsWe are committed to designing and building Ralph Lauren stores with materials that minimize environmental impact and maximize occupant health.In FY22,we continued formalizing our approach to creating
127、 more sustainable spaces in our stores.Our goal is to ensure all the key elements in our new store interiors including fixtures,displays,flooring,hangers and signage are sustainably-sourced and made from materials that minimize environmental impact and maximize occupant health.We base our approach o
128、n guidelines from leading green building and sourcing organizations,including the U.S.Green Building Council(USGBC)and the Forest Stewardship Council(or equivalent).HIGHLIGHTS OF OUR PROGRESS INCLUDE:82%of wood hangers produced for RL retail stores,shop-in-shops and outlets in FY22 were made from FS
129、C-certified(or equivalent)woods.100%of Childrens and Lauren millwork fixtures and wall units produced for North America shop-in-shops in FY22 were made from FSC-certified(or equivalent)woods.43%of shop-in-shops installed in Europe in FY22 used only millwork fixtures and wall units produced from FSC-
130、certified(or equivalent),repurposed or recycled woods.100%of wood floors installed in new Polo boutique retail stores and Polo outlet stores in Europe in FY22 were made from FSC-certified(or equivalent)materials.Consistent with our Forest Protection Policy,we set a 2025 goal for 100%of the wood subs
131、trates(solids,veneers and composites)used in key elements of new store interiors to be FSC-certified(or equivalent),repurposed or recycled.In 2021,we began tracking the percentage of key wood suppliers for store design and construction that meet this standard and confirmed 10 met the benchmark by th
132、e end of fiscal year 2022,which represents 11%of our suppliers.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|20Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewResponsible DesignIn addition to adopting circular principles,we commit to embedding e
133、nvironmental and cultural sustainability,inclusivity and celebration into the products we design and stories we tell.Ensure all of our design,production and merchant teams will receive annual training on sustainable,circular,inclusive and culturally aware designONGOING GOALto elevate this workstream
134、 of passionate individuals throughout our organization to a functional department of the same name.Now deeply embedded within our Companys organizational design,our Design with Intent department is being resourced with expert insight into culturally cognizant design and product development to think
135、holistically about the stories we champion through product creation and storytelling.As one of its first efforts,Design with Intent is piloting an Artists in Residence program,inviting artisans working with a variety of skillsets,mediums and materials to collaborate with Ralph Laurens design teams.T
136、his is intended to be a mutually beneficial exchange of resources,talent and trade techniques.During their tenure,we expect each Artist in Residence to have the opportunity to create a special product collaboration,melding the brilliance and unique skill of the artisan with our core brand sensibilit
137、ies.Our Cultural Awareness Guidelines also support our design approach.We update these annually,working with advisors and thought leaders within this space,and distribute them to all enterprise teams with a role in design,advertising and marketing.We support our teams to apply the guidelines in prac
138、tice with our cultural awareness educational program,which is mandatory as part of our new hire onboarding process for all creative,design,marketing and advertising functions.Existing teams receive annual training and special workshops to stay current.Our Approach to DesignSince our founding,Ralph L
139、aurens design ethos has been inspired by the many beautiful,complex and interconnected pieces that make up the fabric of America:its history,arts,crafts,cultures and most of all its vibrant people.The breadth and reach of our brands across generations and cultures creates a style that is authentic,t
140、imeless and truly personal.We take our responsibility seriously to use the inspiration that captivates our imagination in a way that is culturally aware and appropriate.We challenge ourselves to think differently and expansively about each stage of the design and development process.In 2020,we launc
141、hed Design with Intent,a workstream aiming to identify and pursue opportunities to be intentional and impactful in all that Ralph Lauren represents from product inception to marketing and every point along the customer journey,including store design and e-commerce.In early 2022,we took the step 2022
142、 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|21Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewNative American&Indigenous Community Engagement For 55 years,our brand has been a window for the world into American life and values.This is an immense r
143、esponsibility,one that is deeply ingrained in our Purpose.We have drawn design and storytelling inspiration from the beautiful lands and individuals around us,and as we continue to evolve and grow,we believe it is important to more closely partner with the communities that inspire us.We recognize th
144、at we must honor the Native and Indigenous communities that so richly contribute to the culture of this country and many others.As we continue to expand our understanding and awareness,we are reviewing our internal creative processes focused on forging and expanding meaningful partnerships with comm
145、unity members and artisans and pursuing long-term pathways for collaboration.We intend to use our platform to amplify Native and Indigenous perspectives and create space for holistic and authentic storytelling.We seek to establish a credible model of cultural sustainability,where Native and Indigeno
146、us communities play a role in creating culturally relevant programming,storytelling and timeless products.In this work,we are developing Native philanthropic and partnership programs under the following pillars:community resilience reinforcement,scholarship and education support,cancer care and prev
147、ention,social partnerships,water accessibility and environmental preservation and design with intent.We approach this journey with humility and,above all,with dignity and respect for Native and Indigenous communities as our guiding principle.Our current efforts include:COMPA N YIncrease Representati
148、on,Recognition and Celebration Forming an external advisory body,comprised of diverse Native voices across industries and creative disciplines to help inform our actions.Launching an internal Employee Resource Group(ERG),known as our Native American&Indigenous Advisory Council,that will work in part
149、nership with our DE&I and Design with Intent departments to advise on our Native and Indigenous cultural sustainability work.With this effort,we aim to reconnect with current employees and strengthen our ERG recruitment efforts for new employees who identify as Native American or Indigenous.Aiming t
150、o deepen our talent pipelines and academic partnerships through programs like the Creative Futures Collective,Institute of American Indian Arts(IAIA)and the American Indian College Fund intending to reduce barriers to entry into the fashion industry and providing more opportunities for Native and In
151、digenous talent at various levels of our Company.Continuing to honor moments in the calendar important to Native communities,centering around the amplification of Native and Indigenous voices and perspectives,including but not limited to Native American&Indigenous Heritage Month.Strengthen Structure
152、d Education Practices Continuing to expand upon our mandatory cultural awareness trainings for all design,marketing and merchandising teams,specifically examining their content through a Native and Indigenous lens.Continuing to curate and host regular Speaker Series for our employees to learn direct
153、ly from Native leaders,artisans,designers,historians,activists and more.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|22Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewCOM M UN ITYBroaden Our Brand and Product Storytelling Seeking new ways to le
154、verage our platform to amplify Native stories,perspectives and priorities.Recognizing Native and Indigenous provenance across product categories,including product descriptions and promotional storytelling.Increasing representation in front of and behind the camera,so that Native and Indigenous peopl
155、e are featured prominently on our owned platforms and have a stronger presence as creators behind-the-scenes.Design with Intent Evolving our creative design process to include culturally relevant collaborations,beginning with our Artists in Residence program,which launches in 2022.Expand Our Supply
156、Chain Network Engaging responsibly and creatively with the global handcraft community and broadening our network of Native artisans,makers and sources.Aiming to diversify our investments in product development partners so that more of the sourcing organizations we work with are Indigenous-owned and-
157、operated.S O CIETYForge New and Deepen Existing Partnerships Continuing to support organizations that elevate priorities and needs in Native communities through our Company and The Ralph Lauren Corporate Foundation,from equitable healthcare experiences to economic resilience programs to water access
158、 and beyond including plans to support the Johns Hopkins Center for American Indian Health,Arrowhead Entrepreneurship Program and DigDeep Navajo Water Project,among others.Creating pathways to engage with Native artisans and makers,building relationships based on respect and culturally sustainable p
159、ractices,including partnering with and contributing to the IAIA and the IAIA Museum of Contemporary Native Arts.Engaging our employees in this work by creating opportunities for them to donate via our Ralph Lauren Matching Gift initiative and participate in our Ralph Lauren Gives Back volunteering p
160、rogram.Invest in Education Continuing to fund scholarships for Native and Indigenous students via the American Indian College Fund and IAIA,with hopes of expanding to additional programs and academic institutions in the future.Continuing to promote the adoption of inclusive curricula that details th
161、e full history of Native and Indigenous Americans,as demonstrated by our prior support of the Smithsonian National Museum of the American Indians Native Knowledge 360 education initiative.This framework will continue to evolve as our actions progress,and we will share our progress as we move forward
162、 in this work.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|23Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewCASE STUDYIn Honor of Black Collegiate Style In March 2022,we were proud to build on our partnership with Morehouse College and Spelman
163、 College with a limited-edition collection inspired by the schools rich heritage and esteemed traditions.The collection seeks to honor the history of both colleges and widen the aperture of Ralph Laurens storytelling including the nature of life at historically Black colleges and universities(HBCUs)
164、,a story previously untold in depictions of Ralph Laurens collegiate sensibility.Conceptualized and designed by Morehouse and Spelman alumni at Ralph Lauren,the collection also marks the first time the brand has produced a campaign with an all-Black cast including its photographer,creative directors
165、,cinematographer and talent predominantly comprising students,faculty and alumni at both institutions.Our first-of-its-kind film,“A Portrait of the American Dream,”and commemorative yearbook detail the founding and historical significance of HBCUs through the lens of these two institutions,demonstra
166、ting the use of style as an expression of aspiration,a form of self-empowerment and a tool of resistance.Further,The Ralph Lauren Corporate Foundation announced a$2 million commitment to support scholarships for Black students,including those at Morehouse College and Spelman College.Within this comm
167、itment,The Ralph Lauren Corporate Foundation will also support 10 additional HBCUs through the United Negro College Fund(UNCF).We also continued scholarship support for academic programs and scholarships supporting underrepresented students via the American Indian College Fund,Asian Americans for Eq
168、uality,Asian&Pacific Islander American Scholars,the Asian University for Women in Bangladesh,the Hispanic Scholarship Fund and the Fashion Institute of Technologys Social Justice Center.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|24Create With IntentProtect the EnvironmentChampion Better Lives2022
169、 ESG Supplement Introduction&Overviewfeedback on Responsible Purchasing Practices.Based on this feedback,internal working groups were established to focus on key improvement areas on five purchasing practices.Based on FY21 Better Buying Survey results,we updated our Responsible Purchasing Practices
170、to support more understanding across our entire organization.We invited select suppliers to speak at various events across the Company to further inform our workforce about improvements in our overall efforts.We also created a mandatory training program for our entire Buying/Sourcing/Cross Functiona
171、l teams and our working groups will continue to work with our teams on Responsible Purchasing Practices for constant improvements.We expect to collect the next round of Better Buying Survey feedback in summer 2022.During Supplier Summits and in one-on-one Supplier Engagement meetings,we communicated
172、 our expectations in Business,Quality Assurance,Global Citizenship&Sustainability,and sought feedback on expectations of us as a responsible partner.We also discussed how we can grow together with all suppliers,focusing on our key and strategic suppliers that represent the majority of our business.F
173、or more on our supplier and worker empowerment efforts,please see Rights and Empowerment in the Supply Chain.Responsible SourcingWe seek to work with partners who share our values and our commitment to conduct business with social and environmental integrity at heart.80%of our business will be with
174、suppliers that meet key and strategic supplier criteria with potential in business,social and environmental performance.Supplier EngagementOur Supplier Engagement Strategy(SES)aims to achieve mutual,long-term,positive impacts across our supply chain.This requires enduring partnerships based on trans
175、parency and trust.Our SES guides us in building and maintaining these partnerships.It enables us to drive continuous improvement and positive impact based on shared transparency,accountability and value creation.We continue to strengthen our framework with frequent one-on-one supplier check-ins,semi
176、-annual supplier summits and roundtable discussions.In FY21,we started working with the Better Buying Initiative to collect our business partners anonymous 2025 GOALOur Responsible Purchasing Practices define how Ralph Lauren conducts business with integrity,transparency,respect for universal human
177、and labor rights and environmental sustainability.These standards are critical to our work as responsible corporate citizens.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|25Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewM A K IN G PRO GRES S AM
178、I D O N G O IN G C H ALLENGESEven with pandemic-related challenges and disruptions,we continued to increase our business purchase value in FY22,to 53%(a 3%increase from FY21)with our Strategic and Key suppliers,aiming for 80%by 2025.We continue to make progress despite managing various country and f
179、actory lockdowns as well as ongoing worker shortages,which heavily impact our partners.Together with our partners,we took necessary actions to support and reallocate certain products between their factories or countries to mitigate risk and create supply chain agility.In FY22,we continued our effort
180、s to empower suppliers to maintain and/or improve the performance of our product while reducing back and forth communication,sampling and reference materials.This important work is done through our continued efforts to certify suppliers internal testing labs for performance attributes of product,cal
181、ibration/certification as it pertains to fit and construction approvals and the implementation of digital product approvals using 3D capabilities(where applicable).We also partnered with our mills via an independent third-party provider to digitize color approvals via spectrophotometer readings.In F
182、Y22,we expanded the rollout of the Sustainable Apparel Coalitions(SAC)Higg Index Facility Environment Module(FEM)to cover our broader supply chain and increased visibility of our supply chains environmental performance data.We collected data from 273 Tier 1 facilities,representing 92%of our supply c
183、hain spend an increase from 77%last year.Within the reporting facilities,229(87%of our business spend)have completed data verification by an SAC-approved third party.Facilities scored an average of 46 points across all sections,with an average of 59 points in the water section and 71 in the energy s
184、ection.The expanded FEM rollout also covered 50 mills(up from 31 facilities last year),representing approximately 54%of our woven and knit fabric and sweater yarn production.A total of 48 mills(25 facilities in FY21)have completed third-party verification,with an average score of 58 points(49 last y
185、ear)across all sections.The mills scored an average of 87 points in the energy section,70 points in the water section and 39 points in the chemical section.In the coming years,we will expand this effort to increase visibility of our supply chain environmental and chemical management performance data
186、 in our Tier 1 facilities,subcontracted processing facilities,and Tier 2 raw material manufacturing.QualificationSegmentations&Risk ManagementManagementPerformanceInnovationDevelopment&OnboardingPhaseoutOUR APPROACH TO SUPPLIER ENGAGEMENT2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|26Create With In
187、tentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewL I N K IN G SUPP LI ER CAPACI TY A N D PERFO RMANCE TO PU RC H ASIN G DECI S I ONSOur teams continue to assess supplier capabilities,capacities and performance,which in turn supports workers at the factory leve
188、l.During FY22,we continued our efforts to develop a capacity management tool to collect and visualize global capacity,with an upcoming rollout plan for our Tier 1 Suppliers.This will help us avoid placing orders that might lead suppliers to subcontract without our authorization or to place pressure
189、on workers to work excessive hours.To avoid making requests of our suppliers that could exceed their capacity to supply us on time,we plan orders early,keep factory capacity and capabilities under review and work to anticipate the need for new capabilities.In FY22,we fully integrated citizenship and
190、 sustainability into our SES and launched our Vendor Management System(VMS)a database that enables us to share information and opportunities with all Tier 1,subcontracted processing facilities and Tier 2 suppliers.We also integrated and evolved citizenship and sustainability key performance indicato
191、rs into our vendor scorecard,with specific focuses on carbon,water and sustainable chemical management performance,and social and environmental targets,which now sit alongside other business-critical issues,such as quality.This allows us to transparently communicate our sustainability expectations,e
192、valuate and monitor progress of our suppliers and strengthen focus and collaboration towards continuous facility-level improvement.We work to support our suppliers by clearly communicating expectations and leveraging forums where we enable suppliers to share challenges and learnings to develop a com
193、mon understanding of our requirements.In light of pandemic-related travel restrictions in FY22,we continued the frequency of online webinars and meetings to engage suppliers on key issues.We also organized multiple weekly sustainability office hours to stay connected with our suppliers and discuss t
194、heir input and questions related to our sustainability initiatives and launches.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|27Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewProtect the EnvironmentIN TH IS SECTIONClimate 29Water Stewardship 35
195、Waste Management 39Chemical Management 43FPO IMAGEThrough scalable innovation and strong partnerships,we are working across our supply chain to reduce our climate and water impacts and avoidwaste.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|28Create With IntentProtect the EnvironmentChampion Better
196、 Lives2022 ESG Supplement Introduction&OverviewClimateWe are committed to playing our part to address the climate crisis by reducing greenhouse gas emissions across our supply chain to a level consistent with reaching global net zero emissions.Achieve net zero GHG emissions from a FY20 base yearRedu
197、ce absolute Scope 1,2 and 3 GHG emissions by 30%(SBTi-approved)compared to a FY20 base year Power our owned and operated offices,distribution centers and stores with 100%renewable electricity2030 GOAL2025 GOAL2040 GOALOur Climate StrategyOur GHG reduction goal was approved by the Science-Based Targe
198、ts Initiative(SBTi)in June 2020.This goal is in line with GHG reductions required to keep global temperature rise to 1.5C for Scope 1 and 2 and well below 2C for Scope 3.We plan to increase the ambition of this 2030 target alongside our industry to align with a 1.5C scenario across Scope 1,2,and 3.B
199、eyond meeting our 2030 emissions reductions goals,we intend to achieve net zero GHG emissions by 2040.We plan to seek SBTi approval for our new 2030 target and our net zero target in calendar year 2022.To accompany these commitments,we published a Net Zero Commitment Statement that details how we wi
200、ll achieve these targets.Achieving and sustaining net zero emissions will require adoption of low-and zero-carbon practices throughout our supply chain.As we develop and refine our roadmap to achieving net zero by 2040,we have identified the strategies that will be most important to reach this targe
201、t.These strategies include the electricity used in our operations,energy used by our suppliers,how we transport our goods,the raw materials in our products and the circular products and experiences we offer to customers.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|29Create With IntentProtect the En
202、vironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewOur industry collaborates to address many of the decarbonization challenges we face,including the transition to renewable energy across our supply chains and enabling a more circular economy.We participate in many of these organi
203、zations,including RE100,UN Fashion Industry Charter for Climate Action,the G7 Fashion Pact,Clean Energy Buyers Alliance and the Sustainable Apparel Coalition.We have also voiced our support for bold U.S.climate policy action to ensure the transition to a low-carbon world.To make our Company more res
204、ilient to evolving climate-related risks,we developed a cross-functional Climate Risk Task Force.The Task Force meets semiannually to identify and describe key climate risks,communicate climate risks to key stakeholders including our leadership team and the Board and ensure key actions are being tak
205、en to address risks.We align our climate risk disclosures with the recommendations of the Task Force on Climate-Related Financial Disclosure(TCFD),as summarized in the TCFD Index of this report and our annual CDP Climate response.Continuing trends from last year,the lingering business disruptions fr
206、om COVID-19 are reflected in our overall carbon footprint,as our absolute emissions decreased by 32%in FY22 from our FY20 baseline.These changes are driven by production volumes decreasing by over 25.6%compared to FY20,which contributes significantly to our Scope 3 emissions from manufacturing and r
207、aw materials.These changes in emissions are also driven by regular improvements to our carbon footprint methodology consistent with carbon accounting best practices,including collecting more complete data from our suppliers and updates to our underlying emission factors.We remain committed to implem
208、enting our GHG action plan for achieving our carbon reduction targets.FY22 GHG FOOTPRINT OVERVIEW:SCOPE 1,2,3*MTCO2e*Percentages may not add up to 100 due to rounding.*Consumer Product Use includes emissions from product washing,drying,dry cleaning and/or ironing.*Other Value Chain includes upstream
209、 energy production,waste generated in operations and licensed stores.Scope 1:Heating&Cooling(1%)Scope 2:Purchased Electricity(5%)Scope 3:Value Chain(94%)Purchased Electricity 69,291Manufacturing&Processing(Tier 1)153,244Manufacturing&Processing(tier 2)193,429Raw Materials 308,740Transportation&Distr
210、ibution 132,716Consumer Product Use*211,636Product End of Life 14,941Business Travel&Employee Commuting 38,887Non-Merchandise Spend 108,962Other Value Chain*29,694Heating and Cooling 11,5821,273,122 MTCO2E2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|30Create With IntentProtect the EnvironmentChampi
211、on Better Lives2022 ESG Supplement Introduction&OverviewOur OperationsWere working to mitigate the operational contributors to our carbon footprint.Were investing in a number of renewable energy programs and initiatives to help transition to an energy future thats truly sustainable.R EN E WA B L E E
212、 NERGY&EN ERGY EFFI CI ENCYMoving to 100%renewable electricity for our owned and operated facilities is essential to meeting our GHG reduction goals.In FY22,6%of electricity used in our operations was from renewable sources,such as wind power.This is consistent with the share of renewable electricit
213、y used in FY21 and represents renewable energy attribute certificate purchases in Europe.We continued to implement our renewables strategy in FY22 focused on virtual power purchase agreements(VPPAs)in North America and Europe.We expect to sign our first VPPA in FY23.For any remaining renewable elect
214、ricity needs,we will source renewable energy credits(RECs)and equivalent certificates.We also continued to improve the energy efficiency of our stores and offices.We are focused on reducing energy-intensive components like lighting,heating and cooling through energy management systems and the instal
215、lation of more efficient technology.Over the last 12 months,we began to deploy new energy management systems at our North American retail stores.These systems allow us to more accurately track energy use and adjust our lighting,heating and cooling for greater efficiency.We also completed heating,ven
216、tilation and air conditioning system upgrades at 19 European stores to provide more efficient temperature control.Also,we are beginning to implement UV protection films at our stores to protect our products from excessive sun exposure while reducing the need for air conditioning in warmer months.We
217、are working to install UV protection on windows at all stores in Europe by the end of FY24.1 We measure and calculate our emissions according to the World Resources Institute Greenhouse Gas Protocol,the industry standard and international tool for carbon accounting.For a more detailed methodology,se
218、e our ESG Supplement.2 Our FY22 carbon footprint has received third-party assurance according to the ISO 14064-3:2020 standard.For our full assurance statement,please see our Reports and Policies page.CARBON FOOTPRINT(SCOPE 1,2 AND 3)(MTCO2e)1FY20 FY21FY222Total Emissions1,861,7361,237,0171,273,122S
219、cope 1 Emissions 16,24814,66111,582Scope 2 Emissions90,38078,30569,291Scope 3 Emissions1,755,1071,144,0311,192,249Carbon Intensity (MTCO2e/$million revenue)302.24281.09 204.73TOTAL SCOPE 3 GHG EMISSIONSPurchased goods and services64%Fuel-and energy-related activities2%Upstream transportation and dis
220、tribution9%Employee commuting3%Downstream transportation and distribution2%Waste generated in operations1%Business travel1%Use of sold products18%End of life treatment of sold products 1%Franchises1%TOTAL SCOPE 3 GHG EMISSIONS1,192,2492022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|31Create With Inten
221、tProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewBy the end of FY24,all our retail stores in North America and Europe will be equipped with efficient lighting.We are also initiating a full LED retrofit at our North Carolina distribution center campus that is expe
222、cted to begin installation in FY23.Our Supply Chain In FY22,we increased our engagement with our manufacturing partners to ensure carbon footprint reduction is fully integrated into their strategic roadmap.We began to invest in technical support for our partners to develop decarbonization strategy,s
223、et targets and implementation plans that align with the industrys timeline and ambition level.We believe this is a critical step to unlock long-term visibility for our partners and further align on our mutual climate and business trajectory.CA R B ON L E A DE R SH IP PRO G R AMIn FY22,we continued o
224、ur partnership with the Apparel Impact Institute(aii)to roll out the Carbon Leadership Program within our supply chain.We conducted a supply chain carbon emission analysis prior to the roll out to identify priority facilities to develop a decarbonization pathway.Through the Program,we invested in te
225、chnical support for each manufacturing facility to develop their bespoke 2025 and 2030 carbon and water reduction roadmaps and clear action plan with near-,medium-and long-term priorities that align with broader industry ambitions and best practices.We enrolled 24 fabric mill and vertical facilities
226、(those with both material and finished goods production in the same location),representing approximately 45%of our raw material business spend,and nine strategic finished goods facilities into our first cohort of the Program.In FY22,the nominated facilities have set carbon reduction targets between
227、14 to 78%by 2030 against their 2019 baseline.Based on the developed roadmaps for the nominated facilities,it is estimated that the aggregate annual carbon and water savings at the facility level will reach 800,000 tons of CO2 equivalent and 8 million m3 of water,respectively,by the end of the decade
228、.We will continue to expand the rollout of the program in our supply chain and work closely with our suppliers to track progress and support them in capability building and collective action programs that help overcome obstacles in implementing their action plan.100 stores in North America,Europe an
229、d Asia were retrofitted for energy-efficient LED lighting,as we continued installation at new stores in FY222022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|32Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewM A N UFACTURI NG&P RO CES S I NGIn FY20,
230、we enrolled five Tier 2 fabric mills in the Aiis Mill/Impact Program to help reduce their overall environmental impact,including carbon and energy use.In FY22,they completed an 18-month program focusing on efficiency and optimization.On average,the facilities completed 90%of all recommended measures
231、,including 46 projects in total with an average investment payback period of 7.9 months.Through the completion of these optimization projects,our facilities achieved an estimated annual total savings of:679,637 m3 of water 80,489 tons of steam 11,299 MWh of electricity 2,467 tons of coal 1,541,666 t
232、ons of natural gas 42,692 tons of CO2TR A N SP ORTATION&DISTR IBUT I O NOur Scope 3 footprint includes emissions from product transport,such as train,ship and air freight.To mitigate cost and environmental impact,we prioritize efficiency when choosing how to transport products to our distribution ce
233、nters.We only allow vendors to deliver products by air in rare circumstances,such as when production does not meet delivery deadlines and there is a risk to keeping our promise to our customers.1 Inbound shipment from factory to global point-of-receipt managed directly by Ralph Lauren.AIR FREIGHT1FY
234、19FY20FY21FY22Air Freight(%of shipments)5.8%3.8%6.7%14.5%In FY22,air freight managed directly by Ralph Lauren was 14.5%compared with 6.7%in FY21.This increase was due to a combination of factors,including efforts not to buy ahead and create excess stock and time constraints linked to factory closure
235、s or ocean shipping and pandemic-related port delays.In FY22,vendor-managed air accounted for 6.3%of total shipments,compared with 2.4%in FY21.Beginning this year,our logistics provider selection process includes a sustainability scorecard that measures candidates sustainability practices from the p
236、resence of a company sustainability strategy to performance measurement and continuous improvement plans.We are signatories to the Ocean Conservancys Arctic Corporate Shipping Pledge,committing us to not hire carriers to ship our products through Arctic Trans-Shipment Routes.2022 GLOBAL CITIZENSHIP&
237、SUSTAINABILITY REPORT|33Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewBiodiversityBy 2024,we will set new goals aimed at protecting and regenerating nature in alignment with forthcoming comprehensive Science-Based Targets for Nature guidance.L
238、ong-term,we are working to reduce our impact and regenerate the natural ecosystems in our supply chain,where possible.To date,we have established goals and strategies that address many aspects of the target areas already identified in the initial Science-Based Targets for Nature guidance.For example
239、,as part of our membership in the Fashion Pact,we are participating in working groups that are creating a framework to address biodiversity issues in the leather and cashmere supply chains.This work will leverage the insights provided by Textile Exchanges ALIGNMENT WITH AR3T FRAMEWORKAVOIDREDUCEREST
240、ORE®ENERATETRANSFORM GoalReduce absolute Scope 1,2 and 3 GHG emissions by 30%by 2030By 2040 achieve net zero GHG emissionsAcheive at least a 20%reduction in total water use across our operations and value chain by 2025By 2025,we will connect consumers with options to rent,repair and recirculate o
241、ur products in select top citiesAchieve 100%sustainably sourced key materials by 2025By 2025,we will invest in scaling innovative technologies and regenerative practices to advance the circular economyPolicyForest Protection Policy,Animal Welfare PolicyProgramLeather Impact AcceleratorCanopyStyleECO
242、FAST and Color on DemandWWF Water Stewardship Collective ActionU.S.Regenerative Cotton Fund11 Funded by The Ralph Lauren Corporate FoundationDevelop a biodiversity strategy and set goals aligned with Science Based Targets for Nature2024 GOALBiodiversity Insights Report,a resource enabling the appare
243、l and textile industry to benchmark its impacts on biodiversity.We are also working with partners to promote the broader adoption of regenerative practices,particularly in cotton farming,and our Company is making investments to address deforestation in the bovine ranching sector in Brazil.The below
244、table includes select illustrative examples of how some of our existing goals and initiatives align with the Avoid,Reduce,Restore&Regenerate and Transform(AR3T)framework created by the Science-Based Targets Network.Our business,and the communities we are a part of,depend on healthy,well-functioning
245、natural ecosystems,and we know that protecting and restoring biodiversity is a critical component in addressing climate change.Over the next two years,we will refine and solidify our biodiversity strategy,setting new goals aligned with the forthcoming Science-Based Targets for Nature guidance.These
246、goals will leverage and build upon many of our existing initiatives.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|34Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewWater StewardshipWe commit to reducing water consumption across our value chain a
247、nd to safeguarding and preserving water resources in our communities.WATER STEWARDSHIP APPROACHAchieve at least a 20%reduction in total water use across our operations and value chain,compared to a FY20 baseline2025 GOALFreshwater is an essential resource for people and wildlife and a foundation for
248、 healthy ecosystems and thriving economies.Its also a resource that the apparel industry is heavily reliant on from growing cotton to dyeing and washing fabric.Our approach to water stewardship includes actions that address overall use and quality,and protecting watersheds and ensuring access.Conser
249、vationIn FY22,we continued to collaborate with World Wildlife Fund(WWF)to advance our conservation work and set a comprehensive strategy for water stewardship and water use reductions in our value chain.We are in the process of setting contextual water targets to better align our reduction goal with
250、 localized water challenges.In priority water-stressed locations,we are contributing in collective action projects and local partnerships to scale water use assessments and reduction strategies.Through our FY21 water risk analysis,we identified priority basins in our supply chain that are in great n
251、eed for watershed conservation,reduced water consumption and improved community access to water.In FY22,our footprint was 11,087,765 m3 a 23.9%reduction compared to FY20.CON SE RVATIONSafeguard and preserve water resources where we operate through contextual water targets and collective action progr
252、am implementation in priority geographies with high water stress.C OT TONSustainably source cotton and accelerate the adoption of regenerative farming practices.COMMU N ITYPartner with organizations focused on watershed health and community WASH(Water,Sanitation and Hygiene)solutions through The Ral
253、ph Lauren Corporate Foundation.This decrease was primarily driven by COVID-19-related business impacts,such as production volumes decreasing by over 25.6%compared to FY20,which contributes significantly to our supply chain water consumption.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|35Create With
254、 IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewCASE STUDYPartnering for Water Conservation in IndiaIn FY22,we joined WWFs Noyyal-Bhavani Collective Action Program to help address industry impacts on freshwater in the region in collaboration with WWF-India
255、 and two other corporate partners.The objective of the collective action program is to ensure that by 2030,the Noyyal and Bhavani sub-basins are healthy river ecosystems that ensure water security for people and nature.We nominated six manufacturing facilities in the area to identify opportunities t
256、o improve their efficiency in energy and water use,which in turn will help reduce overall impacts from manufacturing.This program aims to address shared basin challenges through:A strong foundation of science-based actions;Pilots to help inform policy making in the region,which is responsible for 90
257、%of total cotton knitwear exports from India;and Clear key performance indicators which measure the impact on the landscape.Key achievements from the program include:Completed a cross-section and Aquatic Biodiversity survey,and installed a Water Level Recorder(WLR)in Moyar for e-flow assessment,whic
258、h gives an overview of the flow regime to assess if the e-flow for aquatic biodiversity is met.Implemented pilots in select wetlands for community-led monitoring,water quality improvement and invasive species management by distributing water quality kits to citizen groups.A mutual understanding was
259、reached to form a working group in Sulur Lake with local NGOs,industrialists and government officials.Completed a scoping study for 10 textile units in Tirupur and developed improvement plans for four units.255 participants attended eight training sessions under two modules Best Practices on Energy
260、and Water Conservation.Completed River Health Assessments(RHAs)for three seasons in Noyyal and Moyar basins,which will facilitate the development of a river health card in the upcoming quarter.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|36Create With IntentProtect the EnvironmentChampion Better Li
261、ves2022 ESG Supplement Introduction&OverviewCottonAs part of our water stewardship strategy,we evaluated the impacts of cotton farming.We looked at our key cotton growing regions through the WWF Water Risk Filter to identify geographies with high risk for water scarcity.We also estimated total water
262、 use(rainfed and irrigated)in cotton agriculture the volume used is significant and our focus is on reducing water use in cotton production and increasing effectiveness of water use.A key driver of this is the adoption of regenerative farming practices that make better use of rainfall and irrigated
263、land.These practices increase soil fertility,water holding capacity and carbon capture;reduce erosion and pollution runoff;and create more resilience against floods and droughts.Read more about our work to increase the adoption of more sustainable cotton.Community Essential to our overall water stew
264、ardship strategy is supporting watershed health through conservation interventions including wetland restoration,stakeholder engagement and the adoption of preferable land use management practices.We will invest in a number of water conservation programs in the coming year,and further our partnershi
265、ps with local organizations focused on community access and water,sanitation and hygiene(WASH)solutions.In FY22,we submitted our first CDP water response(an unscored version of the questionnaire)with plans to increase our disclosures to a more extensive,scored version in the future.FU RTH E R WATE R
266、 ACCESS E FFO RTSWorldwide,one in three people do not have access to safe drinking water.To help end this disparity,we support organizations providing clean water sources for those in need.Through our continued partnership with GiveMeTap,we helped fund 18 incremental drinking water projects in rural
267、 Africa in FY22.We also donate at least$2 for every Polo-branded bottle sold on RalphL to help fund the installation of water pumps across rural Ghana.By FY2023 the program is expected to provide 36 water pumps in the Upper West region of Ghana benefiting more than 36,000 people.The Ralph Lauren Cor
268、porate Foundation has made several additional commitments to improve access to clean water and general water functions around the world.More information about these efforts can be found in Access to Clean Water.OUR FY22 WATER FOOTPRINTManufacturing&Processing:11,087,765 m3Owned&OperatedFacilities:26
269、3,541 m3Total:11,351,306 m3TOTAL OPERATIONS WATER USE BY FACILITY TYPE(M3)Office41,010Retail180,637Distribution Center41,895TOTAL FACILITY WATER USE263,5412022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|37Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&Ov
270、erviewTOTAL SUPPLY CHAIN WATER USE(M3)1TOTAL SUPPLY CHAIN WATER USE BY SOURCE(M3)Municipal44.24%Produced/Process Water12.45%Rainwater0.15%Wastewater from Another Organization 4.18%Surface Water17.43%Groundwater21.20%General or Unknown Origin 0.34%Processing30%Fabric Mill 43%Tier 1 Direct Facility27%
271、1 Percentages may not add up to 100 due to rounding.WATER STEWARD S HI P I N O UR SUPPLY CHAI NWe are supporting our suppliers to improve their water reduction targets through the Carbon Leadership Program.In FY22,nominated facilities set water reduction targets ranging up to 72%by 2030 against thei
272、r 2019 baseline.Other water stewardship initiatives in FY22 included:Continued our direct collaboration with manufacturers in improving water use efficiency.Since FY20,we have been working closely with our suppliers to adopt more water-efficient processing for our materials and product manufacturing
273、.These transitions have helped our suppliers avoid an estimated 169,992 cubic meters of water use in FY22.Launched an open-source ECOFAST manual in collaboration with Dow to support faster adoption of an improved dyeing process.This effort aims to help the industry integrate new methods to reduce th
274、e amount of water,chemicals and energy needed to color cotton.Continued to reduce the use of water-intensive chemicals and processing in the production of our core Polo and Lauren denim products.For more information,see Chemical Management.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|38Create With
275、IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewWaste ManagementWe commit to integrating zero-waste principles across our business,focusing on reducing waste at its source and diverting waste from landfill through increased recycling,reuse and other methods
276、.Aswe work to become a more circular business,were aiming to reduce excess inventory,keep materials in use for as long aspossible and minimize waste generated at our facilities.Achieve zero waste to landfill across our distribution centers1Achieve 100%recyclable,reusable or sustainably sourced packa
277、ging materials2025 GOAL2023 GOAL1 Using the Zero Waste International Alliance definition of zero waste,we will divert more than 90%of the waste generated at our distribution centers from landfill and incineration.Waste in Our OperationsAcross our distribution centers,offices and stores,we work to mi
278、nimize waste and avoid sending materials to incineration or landfill,including excess inventory.In FY22,overall operational waste volumes returned to FY20 levels in line with the increase in business activities.We generated approximately 5,767 metric tons of waste at our distribution centers and div
279、erted 88%of this from landfill on track to meet our 2023 goal.In our North America-owned distribution centers,we achieved a 92%diversion rate in FY22.We also collected detailed waste data for all of our third-party operated distribution centers in Europe and Asia.DISTR IBU TION CE N TE R SIn FY22,we
280、 worked with local recycling vendors to divert over 17,000 pounds of hangers from landfill at our North Carolina distribution center.In FY22,we conducted a waste audit of our North Carolina distribution center,identifying several operational improvements to increase waste diversion.As a result of on
281、e of these recommendations,in FY23,we plan to acquire plastic film balers to allow efficient collection and recycling for a greater share of the plastic waste generated at our facilities.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|39Create With IntentProtect the EnvironmentChampion Better Lives202
282、2 ESG Supplement Introduction&OverviewO F F I C ES,SUPP LI ERS AND STORESWe are reducing the number of samples being created and shipped by working with suppliers to test their materials in-house,rather than sending samples to third parties.We are also increasing the use of digitization so suppliers
283、 can create new products virtually,reducing sampling components,color approvals and related transportation.We continued our partnership with FABSCRAP to recycle fabric trim and samples in our offices.Since initiating in 2020,weve recycled over 21,000 pounds of fabric waste and reused more than 7,500
284、 pounds of fabric.Our sustainability employee resource group,Green Ponies,continued to play an active role in other office waste reduction efforts.In FY22,the New York-area Green Ponies team identified a local business,aNYbag,that collects and upcycles flexible plastic into tote bags.To address the
285、limited options for plastic film recycling,they brought plastic waste from offices and retail stores.Green Ponies are currently exploring options for expanding this partnership in FY23.We are also exploring organic waste diversion for composting at our global headquarters in partnership with our bui
286、lding landlord.Managing Excess InventoryThe immense amount of textile waste created annually throughout the fashion industry is a systemic problem,and one were determined to help eliminate.Our Excess Inventory Management Principles standardize the steps we take to prevent our products from becoming
287、waste.The principles are supported by a waste management hierarchy to guide our decision-making for inventory and commercial waste.PR EV E N TIN G E XCESS AT TH E S O URC EOur first step to reducing inventory waste is to prevent the production of excess products.Minimizing overproduction is a challe
288、nge across our industry.A key part of the solution is predicting product demand so we produce only what we need.We are working toward this by shortening product lead times and implementing agile production models.We are also applying intelligent buying techniques that better predict demand and match
289、 it with manufacturing.In FY22,we expanded a pilot project to minimize overproduction of wholesale orders in multiple markets.Using supply and demand balancing,we ensured wholesale orders occur only after confirmation of customer orders.By refining our sales models,we reduced production by approxima
290、tely 267,000 units to avoid excess production.1 Comprehensive site-specific waste data was not available for all offices and stores.Waste data was modeled for these sites.WASTE GENERATED AT OUR FACILITIESMETRIC TONSDIVERSION RATEDistribution Centers 5,76788%Stores12,226 81%Offices127835%Total 8,2718
291、4%Prevent Excess at SourcePursue Expanded Sales ChannelsMaximize Product orMaterials Next LifeDonate for Positive ImpactRecycleDisposeMost preferredLeast preferredOUR EXCESS INVENTORYMANAGEMENT PRINCIPLES2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|40Create With IntentProtect the EnvironmentChampio
292、n Better Lives2022 ESG Supplement Introduction&OverviewSA L ES C H A N NELS EX PANS I ONS A N D M A XIM IZ ING A NEXT LI FE FO R PRO DUCTOnce we have offered our products at full price across our range of channels and regions,we consider alternative sales channels for unsold products within planned
293、timeframes,including via our outlet stores and various clearance partners globally.Moving units between markets can also be an effective way of opening up new sales options for existing products.In FY22,we continued to transfer units globally,including moving units in Asia through clearance channels
294、 in Europe.After putting employee sale events on hold in FY21 due to the pandemic,we restarted in-person employee sales globally in FY22.Employee sale events in North America,Europe and Asia allowed us to divert 72,000 units of excess inventory from disposal.D O N ATE FO R P OS I TI VE I MPACTWe adv
295、anced Ralph Laurens global donation principles by elevating partnerships that can meet both the needs of the communities our workforce represents and communities of concern and in need.We established partnerships with 501(c)(3)or charity-equivalent product donation aggregators.These organizations he
296、lp ensure that we deepen our impact and expand our reach to those in need.Our primary partners for this work are Delivering Good and World Vision.R ECYCL IN GRecycling products at scale continues to be a technical challenge for our industry,particularly for apparel with blended fabrics and non-texti
297、le products like footwear and handbags.We are finding more opportunities to recycle excess products by exploring new partnerships and innovations.In FY22,we expanded partnerships with recyclers in North America and Europe and initiated regular recycling throughout the year.We also continued an upcyc
298、ling pilot project in North America to apply advanced technologies for decoloring cotton textile waste to allow for spinning into recycled fabric and yarns.DISP OSA LOnce all other options have been exhausted,our last resort is product disposal or destruction.We try to avoid this wherever we can and
299、 prioritize waste-to-energy disposal methods where available.We continue to ramp up our donation and recycling partnerships to avoid the need for disposal.Ultimately,we aim to cease this option altogether.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|41Create With IntentProtect the EnvironmentChampi
300、on Better Lives2022 ESG Supplement Introduction&OverviewSU STA IN A B L E PACK AGI NG Environmentally responsible packaging is an essential part of a circular future.By 2025,100%of our packaging material will be recyclable,reusable or sustainably-sourced,which includes packaging made from post-consu
301、mer or post-industrial recycled content,or is FSC-certified(or equivalent).In FY22,82%of our packaging volume met at least one of our sustainable packaging criteria.Additionally,we transitioned to a regular,standardized reporting process for our suppliers to allow us to track sustainable aspects of
302、our packaging across brands,packaging types and regions throughout the year.Our Forest Protection Policy supports our 2025 goal,describing our commitment to responsibly source any fabric,pulp and paper used in packaging.We collaborate with Canopys Pack4Good initiative,evaluating paper-based alternat
303、ives to plastic packaging and ensuring that we are responsibly sourcing these paper alternatives.We continue to use FSC-certified paper for our hangtags for core items and are developing new hangtags for other items using paper with the same certification.In FY22,we made significant progress toward
304、eliminating non-essential decorative tags by leveraging our digital development portal.We will shift all regional polybag suppliers to using 100%recycled content in our plastic polybags by the end of FY23.This is an interim milestone as we work to reduce the need for polybags overall.Further,were co
305、ntinuing our work with partners and innovators through the Fashion Pacts Oceans pillar to identify and test paper-based polybag alternatives in our global supply chain that meet our performance requirements while also being recyclable at scale.We are also currently working to reduce use of individua
306、l unit polybags in sales samples sent to offices and showrooms by shipping samples in master bags.Through RalphL,our reduced packaging option gives customers the ability to remove plastic or paper inserts,hangers,garment bags,promotional materials and paper invoices from their orders.In FY22,we cont
307、inued to remove and recycle all of the polybags from reduced packaging orders,which represented 14%of all orders placed through RalphL.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|42Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewChemical Manag
308、ementAs we monitor and reduce hazardous chemical use and discharge,our ultimate goal is to eliminate all hazardous chemicals from our product manufacturing.Eliminate the use of hazardous chemicals in our supply chain2025 GOALChemicals play an important role in the creation and manufacturing processe
309、s of our products.We have a responsibility to ensure the chemicals used to make our products are safe for people and the environment.Our Sustainable Chemical Management Policy outlines our approach in assessing the impacts of the chemicals in our supply chain and in partnering with our manufacturers
310、 in responsible chemical management practices.ZERO DISCHARGE OF HAZARDOUS CHEMICALS PROGRAMMEOur work in sustainable chemical management is built upon a collaborative foundation among brands in our industry,their supply chain and chemical producers.As partners in the Zero Discharge of Hazardous Chem
311、icals(ZDHC)Programme,we collaborate with peers and experts to eliminate the use and discharge of hazardous chemicals across our apparel supply chain.We adopted the ZDHC Manufacturing Restricted Substances List(MRSL)in FY20 to align with industry standards and help our suppliers track and report on a
312、ll chemicals used to develop and manufacture our products and to prioritize the removal of harmful chemicals.In FY22,we expanded our chemical transparency tool to cover the broader supply chain and increase visibility of chemical products used in our manufacturing as well as their conformance status
313、 with the MRSL.We gained transparency of chemical inventories and MRSL conformance status of manufacturing facilities that represents 72%of our supply chain spend,compared to 31%last year.Of the chemicals reported,82%conform with the MRSL,up from 59%last year.We established visibility to the chemica
314、l use of our Tier 2 manufacturing facilities that represents 30%of our woven,knit,and sweater material business spend.1 We utilize the Chemical Management section within the Higg Index Facility Environmental Module(FEM)to assess the operational aspect of chemical management at the facility level.Bas
315、ed on the third-party verified assessment,our Tier 1 and Tier 2 suppliers scored an average 24 and 39 points in the Chemical Management section,respectively.In order to confirm the MRSL substances are not intentionally used,we require manufacturing facilities with wet processing to test wastewater a
316、gainst the ZDHC Wastewater Guidelines and share results on the ZDHC Gateway portal.Fifty seven percent of the Tier 1 facilities and 29%of the Tier 2 facilities by business spend have performed wastewater tests in accordance with the Guidelines.1 Eighty four percent of the facilities that tested comp
317、ly with the ZDHC requirement,and out of the substances screened,99.9%comply with the ZDHC standard.1 The number is a self-reported number by our Tier 2 raw material suppliers2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|43Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplem
318、ent Introduction&OverviewWe incorporated the chemical transparency,MRSL conformance status and wastewater test results into our Supplier Engagement Strategy(SES),which allows manufacturing facilities to be evaluated and scored based on their performance in sustainable chemical management practices.I
319、t also helps us build transparency in tracking progress and encourages continuous improvement at the facility level to ensure progress is made in the adoption of safer chemistry to achieve our goal of full MRSL conformance and elimination of hazardous chemicals by 2025.We analyzed our suppliers data
320、 and identified common challenges in the implementation of sustainable chemical management practice at the facility level.While the facilities have a basic understanding of chemical applications,we identified the need to build up their capability in sustainable chemical management practices to align
321、 with industry standards and best practices.In order to help close these knowledge gaps,we partner with a ZDHC-approved training provider to develop and deliver a customized capability building program for suppliers that provides practical technical guidance and industry best practices.The training
322、program is deployed on a rolling basis,starting with our strategic and key suppliers,top wet processing facilities and top mills.Each supplier nominates a relevant representative(often facility chemical and technical managers)to take the training and act as a leader to effectively drive the implemen
323、tation of sustainable chemical management practices at their manufacturing facilities.We also organize periodic webinars in collaboration with the ZDHC-approved chemical inventory management tool,which helps to strengthen our suppliers capabilities of self-monitoring their chemical inventory and MRS
324、L conformance status.All of these efforts empower our suppliers to self-monitor their chemical use,which helps address issues at the source and guides conformance with the MRSL.Further,it also helps identify chemicals in their inventory that are not MRSL-certified,therefore becoming a top priority f
325、or phase-out.ELIMINATION OF PFAS In FY22,we continued to focus on accelerating the elimination of PFAS(perfluoroalkyl and polyfluoroalkyl substances)in accordance with our Sustainable Chemical Management Policy.Over the last two fiscal years,weve collaborated cross-functionally with our manufacturin
326、g partners to successfully develop PFAS-free water repellent materials,effectively phasing out the chemical.We are in the final phase and on track for full elimination by the end of calendar year 2022.We recognize that an industry-wide elimination of PFAS requires a collaborative effort.In FY22,we j
327、oined the PFAS Movement,a joint initiative for corporations organized by ChemSec with a clear mission to drive stricter regulations on PFAS chemicals and encourage corporations to eliminate all nonessential PFAS use.We have eliminated the use of pumice stones in all of our denim manufacturing for Po
328、lo and Lauren Brands.Additionally,the majority of our Polo and Lauren denim washes have transitioned away from the use of potassium permanganate(PP).We are working closely with our vendors in India and Indonesia to convert all washes from conventional washing methods using stone and PP to synthetic
329、stones and PP alternatives.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|44Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG Supplement Introduction&OverviewChampion Better LivesIN TH IS SECTIONDiversity,Equity&Inclusion 46Employee Well-being 52Community Engagement&Philanthropy
330、53Rights&Empowerment in the Supply Chain 59FPO IMAGEWe aim to create a more equitable world and positively impact the lives of people in our workforce,communities and supply chain.2022 GLOBAL CITIZENSHIP&SUSTAINABILITY REPORT|45Create With IntentProtect the EnvironmentChampion Better Lives2022 ESG S
331、upplement Introduction&OverviewDiversity,Equity&InclusionWe unite and inspire the communities within our Company and those we serve by amplifying voices and perspectives to create a culture of belonging,equality,inclusion and fairness for all.Our DE&I strategy spans three pillars:Talent Cultivate di
332、verse teams,ensuring that fostering a culture of inclusion and belonging is a priority enterprise-wide,and elevate underrepresented talent into leadership ranks.Engagement Enable open dialogue and create spaces for the amplification of diverse voices and perspectives with an emphasis on psychologica
333、l safety.Offer opportunities to acknowledge,celebrate and discuss our unique differences through heritage events and structured programming.Education Build a Company culture centered around trust,inclusivity and belonging through educational and awareness programming and content sharing.Establish and enforce structured education and DE&I training participation with an emphasis on accountability fo