R E S P O N S I B I L I T Y

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Diane Hodge
5 years ago
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1 R E S P O N S I B I L I T Y Included in the Dw Jnes Sustainability Index fr third cnsecutive year Awarded Brnze Class distinctin in RbecSAM s Sustainability Yearbk Wn tw CDP awards fr mst imprved cmpany in the management f Timber and Cattle Prducts FTSE4GOOD cnstituent Recgnised as Leader in the Ethical Trading Initiative s annual assessment Leanne Wd, Chief Peple, Strategy and Crprate Affairs Officer, is respnsible fr all internal peple, health & safety matters and the delivery f respnsibility gals fr Prgress against gals is regularly reviewed by the Executive Team. The Grup Risk Cmmittee and Cmpany Bard receive regular sustainability reprts. Targets relating t 2022 gals are wned by senir leadership acrss key departments. Implementatin f glbal plicies and prgrammes is supprted by crssfunctinal delivery grups. Respnsibility teams are based in Lndn, Leeds, Flrence, Hng Kng and Tky t drive/ supprt implementatin f prgrammes. Burberry s Respnsibility Advisry Cmmittee, cmprising independent experts frm the NGO, scial enterprise and academic sectrs and with expertise in different areas f sustainability, meet quarterly t hear prgress updates, cmment n draft strategies and generally challenge and supprt Burberry s Respnsibility team. The Burberry Fundatin Bard meets 4 times a year and is respnsible fr uphlding the Fundatin s visin and ensuring delivery f its charitable purpse.

2 R E S P O N S I B I L I T Y G O A L S F O R D R I V E P O S I T I V E C H A N G E T H R O U G H A L L P R O D U C T S The gal is t ensure 100% f prducts have mre than ne psitive attribute by Psitive attributes relate t scial and/r envirnmental imprvements achieved at either the raw material surcing r prduct manufacturing stage. During 2017/18, psitive attributes were allcated in relatin t: Main material: cttn surced thrugh the Better Cttn Initiative Prductin facility: Leather Tannery Certificatin, Chemical Management Rating, Energy & Water Reductin, Living Wages, Renewable Energy Prgress during 2017/18: 28% f prducts with ne psitive attribute 14% f prducts with mre than psitive attribute Supprted the Burberry Fundatin in launching a five-year partnership with the Ryal Cllege f Art, t establish the Burberry Materials Futures Grup the first f its kind, applying radical thinking t invent mre sustainable materials, advance manufacturing prcesses and transfrm user experiences. B E C O M E C A R B O N N E U T R A L, R E V A L U E W A S T E Carbn neutrality in Burberry s wn peratins will be achieved by imprving energy efficiency, reducing abslute cnsumptin and switching t renewable energy surces wherever pssible, befre ffsetting any remaining emissins. Jined RE100, cmmitting t 100% f energy frm renewable surces by Prgress during 2017/18: 4% reductin in glbal, abslute energy cnsumptin 24% increase in energy frm renewable surces 20% reductin in market-based CO2e emissins Supprted the Burberry Fundatin in launching a five-year partnership with Elvis & Kresse, a sustainable luxury cmpany, t transfrm Burberry leather ffcuts int new prducts and affect real change in the leather gds industry. Became a cre partner f the Ellen MacArthur Fundatin s Make Fashin Circular Initiative, jining ther leading rganisatins t explre hw ur industry can wrk twards the visin fr a circular fashin ecnmy. P O S I T I V E L Y I M P A C T 1 M I L L I O N P E O P L E This will be achieved mainly by supprting the Burberry Fundatin (UK registered charity N ) in delivering impactful cmmunity prgrammes: In Yrkshire and Lndn tackling educatinal inequality, enhancing career advice and inspiring yung peple abut careers in the creative industries. In Tuscany, Italy fstering cmmunity chesin in an area renwned fr its luxury gds prductin, but facing challenging levels f pverty, yuth unemplyment and ecnmic migratin. In Afghanistan supprting scial and ecnmic empwerment thrugh a mre inclusive and sustainable cashmere industry. Prgress during 2017/18: 23,000 peple psitively impacted in Yrkshire, Lndn and Italy

M O R E S U S T A I N A B L E R A W M A T E R I A L S C O T T O N Target is t surce 100% f cttn via the Better Cttn Initiative by 2022

Supprting Cttn 2040, a crss-industry partnership, cnvened by Frum fr the Future, t address lng term resilience in cttn supply chains.

cashmere prductin in Mnglia; restring grasslands, prmting animal welfare and imprving the livelihds f herders and their families.

L E A T H E R Target is t surce 100% f leather frm tanneries that hld envirnmental, traceability and scial cmpliance certificatins.

Wrking with key tanneries t mnitr their water, energy and chemical cnsumptin and t validate effectiveness f waste water treatment

W O O L Prmting adptin f Respnsible Wl Standard ensuring that wl cmes frm respnsibly treated sheep and frm farms with a prgressive

E X O T I C S K I N S Dedicated expert custms team respnsible fr managing cmpliance with CITES, which limits internatinal trade f

3 M O R E S U S T A I N A B L E R A W M A T E R I A L S C O T T O N Target is t surce 100% f cttn via the Better Cttn Initiative by 2022 (currently at 21%). Supprting Cttn 2040, a crss-industry partnership, cnvened by Frum fr the Future, t address lng term resilience in cttn supply chains. C A S H M E R E Funding partner f the Sustainable Fibre Alliance (SFA), a NGO wrking with key stakehlders invlved in driving sustainable cashmere prductin in Mnglia; restring grasslands, prmting animal welfare and imprving the livelihds f herders and their families. SFA has als established a training prgramme t help yung herders develp skills and knwledge in agricultural practices and gat husbandry. L E A T H E R Target is t surce 100% f leather frm tanneries that hld envirnmental, traceability and scial cmpliance certificatins. 64% f Burberry s leather prducts are made f leather surced frm tanneries with at least ne f these certificatins. Wrking with key tanneries t mnitr their water, energy and chemical cnsumptin and t validate effectiveness f waste water treatment prcesses and air emissins management. Plicy in place nt t surce leather frm cattle raised in the Amazn Bime. W O O L Prmting adptin f Respnsible Wl Standard ensuring that wl cmes frm respnsibly treated sheep and frm farms with a prgressive apprach t land management. E X O T I C S K I N S Dedicated expert custms team respnsible fr managing cmpliance with CITES, which limits internatinal trade f endangered species. Engaging with industry experts t explre initiatives t mdernise and simplify established prductin techniques. D O W N Surcing 100% f dwn frm Respnsible Dwn Standard certified suppliers. F U R Only surcing fur frm regulated EU farms. Well established fur traceability prgramme. Funding member f the BSR s Fur Luxury Industry Rundtable, wrking with key industry stakehlders t enhance welfare standards and traceability systems in the fur value chain.

E N V I R O N M E N T A L S U S T A I N A B I L I T Y E N E R G Y : D I R E C T O P E R A T I O N S Retail netwrk is respnsible fr 74% f the cmpany s direct carbn emissins.

Steps taken t reduce cnsumptin include: Intrduced real time energy mnitring & enhanced training Intrduced LED lighting, timers and intelligent cntrls Integrated Energy KPIs int team bjectives Jined

principles. 28 supply chain partners are currently participating in the prgramme, including 15 facilities with wet prcessing. Tgether, these facilities manufacture 43% f Burberry s prducts.

Assessing which suppliers are using renewable energy and, where pssible, facilitating the transitin t renewable energy surces.

4 E N V I R O N M E N T A L S U S T A I N A B I L I T Y E N E R G Y : D I R E C T O P E R A T I O N S Retail netwrk is respnsible fr 74% f the cmpany s direct carbn emissins. In 2017/18, glbal, abslute energy cnsumptin reduced by 4%, mainly thrugh real-time mnitring, behaviural changes and LED lighting. Steps taken t reduce cnsumptin include: Intrduced real time energy mnitring & enhanced training Intrduced LED lighting, timers and intelligent cntrls Integrated Energy KPIs int team bjectives Jined RE100, cmmitting t 100% renewable energy by 2022 (currently 48%) E N E R G Y / W A T E R : S U P P L Y C H A I N Implemented Energy & Water Reductin prgramme, mdelled n NRDC Clean by Design principles. 28 supply chain partners are currently participating in the prgramme, including 15 facilities with wet prcessing. Tgether, these facilities manufacture 43% f Burberry s prducts. As part f the prgramme, ver 230 pprtunities have been identified t imprve energy and water in the supply chain. Assessing which suppliers are using renewable energy and, where pssible, facilitating the transitin t renewable energy surces. Mapping water risk t identify suppliers in water stressed areas, t infrm site selectin fr water reductin prgramme. C H E M I C A L S Target is t eliminate the use f chemicals that may have a negative envirnmental impact by Adpted Manufacturing Restricted Substances List in Researching alternatives t PVC in key lines. WAS T E M A N A G E M E N T Fd waste frm UK head ffice is turned int bigas/ bi-fertilisers. Acrss key UK peratins, zer waste is sent t landfill. Cnstructin: >95% waste diverted away frm landfill Supply Chain waste management: Partnering with Avena in the UK, recycling 52 tnnes f damaged garments int getextiles during 2017/18 Partnering with Resmal & Green line in Italy, recycling 51 tnnes f precnsumer textile waste int yarns, fabrics etc. during 2017/18 Became cre partner f the Ellen MacArthur Fundatin s Make Fashin Circular initiative.

S O C I A L R E S P O N S I B I L I T Y H U M A N R I G H T S Cnducted Human Rights Impact Assessment in 2014 and reassessed in 2016. Risks & mitigatin plan reviewed by Ergn and Oxfam.

E T H I C A L T R A D I N G All supply chain partners must agree with ur Respnsible Business Principles, including Burberry Ethical Trading Cde f Cnduct, Migrant Wrker and Hmewrker Plicy.

N surcing allwed frm Bangladesh, Pakistan and Cambdia.

5 S O C I A L R E S P O N S I B I L I T Y H U M A N R I G H T S Cnducted Human Rights Impact Assessment in 2014 and reassessed in Risks & mitigatin plan reviewed by Ergn and Oxfam. Became the first luxury retailer and manufacturer t achieve accreditatin as a UK Living Wage Emplyer. E T H I C A L T R A D I N G All supply chain partners must agree with ur Respnsible Business Principles, including Burberry Ethical Trading Cde f Cnduct, Migrant Wrker and Hmewrker Plicy. Existing and new suppliers are audited against internatinal labur standards. 446 audits and 263 training and engagement visits cnducted during 2017/18. N surcing allwed frm Bangladesh, Pakistan and Cambdia. Mdern Slavery Statement published annually, setting ut the steps Burberry has taken t mitigate and reduce the risk f slavery and human trafficking ccurring in its supply chains r in any part f the business. C O M M U N I T Y I N V E S T M E N T 1% f Grup adjusted PBT is dnated each year t charitable causes wrldwide. These range frm supprting disaster relief effrts t nurturing emerging talent thrugh schlarships t the Ryal Cllege f Art. Each year, a significant prprtin f the 1% ges t the Burberry Fundatin, t create lng-term partnerships that fuel innvatin and transfrm cmmunities. Burberry Apprentices a ne-year prgramme ffering yung peple exciting develpment pprtunities in traditinal craftsmanship, luxury retailing and HQ business peratins. Vlunteering emplyees wrldwide are encuraged t dedicate up t three wrking days a year t vlunteer in their lcal cmmunity. In Kind Dnatins these range frm ne-ff gifts f fabric and materials t assist yung peple n creative curses, t dnatins f smart business clthing t supprt thse enrlled in emplyability prgrammes.

6 B U R B E R R Y S P O L I C I E S & C O M M I T M E N T S Burberry has varius plicies in place that guide ecnmic, scial and envirnmental respnsibility acrss ur business. These apply t ur glbal peratins and supply chain activities, where applicable, and implementatin and adherence t plicies is reviewed n a regular basis. The plicies and statements belw are in the public dmain and can be fund n C O R P O R A T E Anti-bribery and Crruptin Plicy Crprate Gvernance Tax Plicy UN Glbal Cmpact Cmmunicatin n Prgress P E O P L E Ethical Trading Cde f Cnduct Gender Pay Gap Reprt Health and Safety Plicy Human Rights Plicy Migrant Wrker Plicy Partner Nn-Cmpliance Plicy Transparency in the Supply Chain and Mdern Slavery Statement C O M M U N I T I E S Cmmunity Investment Lcal Stakehlder Engagement Plicy The Burberry Fundatin E N V I R O N M E N T Chemical Management Glbal Envirnmental Plicy Respnsible Surcing Cntacts: crprate.respnsibility@burberry.cm; investr.relatins@burberry.cm; press.ffice@burberry.cm Certain presentatin are frward-lking statements. Such statements are based n current expectatins and are subject t a number f risks and uncertainties that culd cause actual results t differ materially frm any expected future results in frward-lking statements. Burberry Grup plc undertakes n bligatin t update these frward-lking statements and will nt publicly release any revisins it may make t these frward-lking statements that may result frm events r circumstances arising after the date f this dcument. Nthing in this presentatin shuld be cnstrued as a prfit frecast. All persns, wherever lcated, shuld cnsult any additinal disclsures that Burberry Grup plc may make in any regulatry annuncements r dcuments which it publishes. All persns, wherever lcated, shuld take nte f these disclsures. This presentatin des nt cnstitute an invitatin t underwrite, subscribe fr r therwise acquire r dispse f any Burberry Grup plc shares, in the UK, r in the US, r under the US Securities Act 1933 r in any ther jurisdictin. Burberry is listed n the Lndn Stck Exchange (BRBY.L) and is a cnstituent f the FTSE 100 index. ADR symbl OTC:BURBY. BURBERRY, the Equestrian Knight Device and the Burberry Check are trademarks belnging t Burberry which are registered and enfrced wrldwide.

Future Textiles Awards 2017

Future Textiles Awards 2017 Future Textiles Awards reflect n-ging innvatin in technical textiles industry, ensuring we recgnise and celebrate excellence and the achievements f the very best cmpanies and