GUESS ESG REPORT FY2024-2025

It’s in our DNA

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Why ESG Matters to GUESS

We know there’s no future for fashion without sustainability. It’s what our customers expect, and it’s what our planet urgently needs. Sustainability, and by extension, strong Environmental, Social, and Governance (ESG) principles, is at the heart of everything we do. It shapes our lives, drives our work, and builds the legacy we’re proud to leave behind.

We’re committed to transparency and accountability, openly sharing both our successes and the challenges ahead. We believe real change happens when we move forward together guided by rigorous ESG standards, informed by data, and inspired by a shared vision for a more sustainable future.

ACTION GUESS

ACTION GUESS, our ESG Strategy isn’t just something we do, it’s who we are. At GUESS, we believe that fashion and sustainability go hand in hand. We have worked to ensure that in all things we do, we respect the environment, we are good teammates, and we get things done, and from that space of care and commitment, ACTION GUESS was born.

In FY2025, the ACTION GUESS strategy was refined to sharpen ESG targets, ensuring greater clarity, relevance, and alignment with short- and mid-term business objectives. These updates are designed to focus our efforts on the topics where we can have the greatest impact.

Our fine-tuned ACTION GUESS strategy continues to guide the integration of ESG concepts throughout GUESS.

Respect Nature

At GUESS, respecting nature is at the heart of our sustainability journey. We are committed to reducing our carbon footprint through a science-based approach and integrating climate-related risks into our business strategy. We apply circular economy principles, choosing responsible materials for our collections to minimize environmental impact. Through water-saving practices in our production processes and strengthened efforts to protect biodiversity, we are working to preserve the natural world for future generations.

Our Goals

    • Reduce Scope 1 + 2 GHG emissions by 50% vs baseline FY2019 (2030)

    • 100% renewable electricity in company operated facilities (2035)

    • Reduce Scope 3 GHG emissions by 30% vs baseline FY2019 (2030)

    • Climate Positive: exceeding carbon neutrality by removing additional CO2 from atmosphere (2035)

    • Announce roadmap to achieve SBTs (2026)

    • 75% of GUESS global apparel materials portfolio will be environmentally preferred (2030)

    • 90% of GUESS apparel full price products will be GUESS ECO (2030)

    • 50% of GUESS apparel factory products will be Consciously Constructed (2030)

    • Introduce or increase repair, resale and upcycling initiatives in key markets, that truly drive a circular economy (2025)

    • Develop circular strategy and policy to define circularity and what a circular product is to GUESS, supported by a circular design playbook for product designers (2025)

    • Apply circular design playbook to one capsule per each season (2030)

    • 100% product packaging and hangtags to be recycled and recyclable for all GUESS products (including primary and secondary packaging and hangtags) (2030)

    • Eliminate intentional use of PFAS (persistent organic pollutants used for repellent finishing on garments) (2025)

    • Be water positive in supply chain: replenishing more water than used in our supply chain (2035)

    • Become signatory of ZDHC and adopt ZDHC MRSL (2026)

    • Direct suppliers of apparel and accessories with in-house wet processes will be ZDHC approved (2030)

    • Develop a biodiversity strategy aligned with Science Based Targets for Nature (2025)

Be a Good Teammate

Being a good teammate means taking care of our people, within our company and across our global supply chain. We are committed to providing decent working conditions, promoting diversity and inclusion regardless of race, gender, religion, disability, or sexuality, and supporting the full participation of women in leadership and economic life. We work to ensure fair labor practices, eradicate forced labor, and provide safe, secure, and dignified work environments for all.

Our Goals

    • Publish and update an interactive multi-tier supply chain map (2025)

    • Increase factory employee access to trainings and development opportunities and grievance mechanism (Ongoing)

    • Develop training and development opportunities to promote positive change for women (2025)

    • Review company marketing and advertising materials and develop plans to ensure diverse representation (Ongoing)

    • Maintain gender pay parity at all levels and geographic regions (Ongoing)

    • 100% of Managers and above to be trained on harassment prevention in the workplace, and on unconscious bias (2025)

    • Create a metric to measure internal promotion rate to senior manager positions and above versus external (2025)

    • Create a metric on learning hours and assess the baseline; disclose medium-term target (2027)

    • Integrate well-being KPIs into annual employee surveys starting FY2026, using insights to continuously improve programs and resources (2025)

Get Things Done

At GUESS, we believe that strong governance is essential to making a real impact. We have established an effective framework to manage our environmental and social responsibilities and embedded accountability throughout our operations and reporting. We are dedicated to building transparent, inclusive institutions and actively participate in multi-stakeholder partnerships to mobilize knowledge, expertise, technology, and financial resources for sustainable development.

Our Goals

    • Incentive plans and goals planning allow Executives to consider individual achievements, including achievement of our ESG goals (Ongoing)

    • Move to annual ESG reporting starting FY2026 (2025)

    • Review eco label policy in line with emerging best practice (2025)

    • Review eco marketing policy in line with emerging best practice (Ongoing)

    • Continuously improve the current data protection policies to promote sustainable business practices by avoiding costly data breaches that can harm GUESS and our clients (Ongoing)

    • Maintain a global “Bug Bounty Program” to incentivize the identification and reporting of potential security vulnerabilities (Ongoing)

    • Implement sustainable global asset management to reduce carbon footprint (Ongoing)

    • Achieve ISO/IEC 27001 certification, focusing on the protection of customer and employee personal data across GUESS operations (2026)

    • Maintain a company-wide cybersecurity training program to ensure all GUESS employees receive the necessary education to safeguard personal and company data and reduce cyber risks (Ongoing)

Targets Achieved

  • 50% of GUESS all apparel mainline is now GUESS ECO

  • Reduced Scope 1 + 2 GHG emissions by 50% vs baseline FY2019

  • Established a training program for GUESS suppliers in key regions

  • Maintained gender pay parity at all levels and geographic regions

  • All associates have achieved sustainability literacy

  • Expanded wellness and mental health programs for all employees

  • Refined our GUESS Sustainability Framework to uphold top ESG data standards

  • Reviewed our eco label policy in line with emerging best practice

  • Continued to obtain “reasonable assurance” of our key ESG metrics and disclosures

  • Reviewed our eco marketing policy in line with emerging best practice

  • Launched a global Bug Bounty Program to reward reporting of security flaws

Read our FY2024 - 2025 ESG Report