Our best today, better tomorrow

ESG REPORT FISCAL YEARS 2022–2023

ESG REPORT FISCAL YEARS 2022–2023

We are committed to becoming a worldwide
leader in the fashion industry by listening andresponding to the needs of our stakeholders, andby continuing to give back to the community,
support humanity, and protect the environment.
01 About

32 Social

65 Appendices

02 A message from our CEO
04 A message from our Co-Founderand Chief Creative Officer
05 About GUESS
09 ESG Reports
10 ACTION GUESS

33 Social introduction
34 Supply chain responsibility
and labor rights
41 Diversity and inclusion
45 Employee wellbeing and engagement
51 Customer engagement
54 Community investment

66 Materiality
68 Management of material topics
75 Stakeholder engagement
77 ACTION GUESS & Goals
79 About our report
80 Independent accountants’ report
81 ESG data summary
94 GRI index
100 SASB index
103 Supplemental KPIs and criteria
104 Methodological statements
107 Glossary of terms
108 Forward-looking statements

12 Environment
13 Environment introduction
14 Climate
17 Responsible materials and products
24	Circular economy, packaging,
and waste
27 Chemicals, pollution, andwater stewardship
30 Nature and biodiversity“Our best today, better tomorrow”

is a quote from American journalist
Ben Bradlee

56 Governance
57
58
62
63

Governance introduction
Governance and business ethics
Responsible marketing
Data security and privacy

Visit our online sustainability hub
to see how we are leading the way
sustainability.guess.com

GUESS campaign, spring 2023; Capri, Italy.
Dress is made of recycled polyester.

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APPENDICESESG REPORT FISCAL YEARS 2022–2023

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A MESSAGE FROM OUR CEO, CARLOS ALBERINIGRI 2-22

Leading the change,paving the way
Dear GUESS stakeholder,

At GUESS, we firmly believe that advancing our
purpose‑driven sustainability commitments is integral
to the wellbeing of our people, the health of our planet,
and the ongoing success of our business.

Carlos Alberini
Chief Executive Officer
and Director, Guess?, Inc.

We are pleased to share our FY2022–2023 ESG Report(available at sustainability.guess.com), which details ourapproach to sustainability, our recent achievements, andour ambitions for the future. For well over a decade, GUESS
has embedded environmental, social and governancepriorities into all aspects of our business – and we couldn’t
be prouder of the progress we have made as a result.
While the past two years have been defined byunprecedented crises and formidable challenges, ourcommitment to our stakeholders has been unwavering.
Now more than ever, it is critical that we work withurgency to combat the far-reaching effects of thepandemic, the climate crisis and human rights issues across
our world. GUESS has long prioritized and invested inpolicies and practices to address these head on, and as
we look ahead, we are confident that our Company
remains poised to pioneer new industry best practices
in sustainable apparel.

We continue to anticipate a more heavily regulated
environment for ESG practices, with an increased focus
on transparency, integrity and accuracy in reporting
ESG data. GUESS has fully embraced this industry-widecall for continued improvement and growth in sustainability
and the opportunity to enhance our reporting.
In this report, we are excited to highlight the outcomes ofour first-ever “double materiality assessment”, our ongoing
efforts to reduce carbon emissions, our commitment tousing sustainable materials, and our dedication to fairtreatment and pay parity. We know that today’s consumers
want to both look good and feel good about what they’rebuying. That’s why we’re proactively expanding both our
eco-collection and new upcycled line to give GUESS
customers a wider range of exciting, sustainable options
to choose from.

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A MESSAGE FROM OUR CEO, CARLOS ALBERINI continued
GRI 2-22“With more than adecade of experience
prioritizing sustainability
across all aspects of ourbusiness, GUESS looks
to the future to pioneer
new best practices forsustainable apparel.”

We are proud to share that within our organization we
have achieved gender pay parity across the United States,
Canada, Europe, and Asia, and are actively working
towards enhancing diversity and inclusion. We alsoestablished new credit facilities in collaboration with UBSBank and Bank of America, N.A., with key performanceindicators (KPIs) directly linked to our ESG Goals,
reinforcing our dedication to integrating ESG into ourfinancial strategy. Key ESG metrics and disclosurescontained in our FY2020-2021 Sustainability Report were
subjected to an examination engagement by KPMG andbecame one of the first in the fashion industry to obtainreasonable assurance. Additionally, for this reporting
period, we engaged a third party to conduct a double
materiality assessment as it relates to ESG, and including
the potential impact of climate change on the financial
health and outlook of our company. This has allowed us tostrategically shape and refine our approach to refreshing
our ESG Strategy and establishing key milestones.

Paul and Carlos, Store Managers Meeting(Los Angeles HQ), May 2023.

At GUESS, we continue to evolve the way we do business.
We are intentional and thoughtful about the actions wetake to enhance our operations and policies and deliver
ongoing benefits for our stakeholders. It’s both an honor anda privilege to be a part of a company that wholeheartedly
embraces its role in being a part of the solution. I know
there are many significant and exciting developments tocome on our sustainability journey, and we look forward
to the path ahead for GUESS.

Carlos Alberini

Chief Executive Officer and Director, Guess?, Inc.

Visit our online hub to see how we arecontinuing our sustainability journeysustainability.guess.com

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A MESSAGE FROM OUR CO-FOUNDER AND CHIEF CREATIVE OFFICER, PAUL MARCIANOGRI 2-22

What dowe standfor atGUESS?
Since 1981, GUESS has been all about style, creativity, andpassion. My personal passion has been to create clothes thatbring out the most confident side of every man and woman.
As we enter our 42nd year of business the world is changing
and the climate crisis progressing, it becomes increasingly
important for customers to not only feel confident in theclothes they wear, but to know that the clothes they buy are
not contributing to the harm of our environment. I would liketo emphasize our unwavering commitment to sustainability– a commitment that runs deep in the very fabric of
our company.

We’ve learned from stakeholders that pollution, climate, andhuman rights are at the top of the list when it comes to issues
they’d like us to address. Our challenge is to make sure that
GUESS contributes to the world our customers want to see.
Without compromising on our signature flair, we are finding
new ways to make sustainability sexy! Through innovationand conscious design choices, we strive to create apparelthat not only looks good but feels good – both for ourcustomer and the planet we call home.
Our ESG initiatives have touched almost every aspect of ourbusiness, from the products that we offer to the customer
experience that we provide, including all channels of
distribution, all global markets and all 25 of our productcategories. To ensure transparency and accountability, we
have implemented rigorous standards throughout our supply
chain, carefully vetting our partners and suppliers. By forging
strong relationships with like-minded organizations, we aim
to foster an ecosystem where sustainability is a shared goal.
Our brand and the GUESS Family are true to our roots, andthat will never change. Our commitment to sustainability
extends beyond our immediate operations. We recognize
the immense influence we wield as an established company,
and we are resolved to use our platform to inspire positivechange. As we reach new sustainability heights, we’rebringing every GUESS customer with us because I believethat style and sustainability go hand in hand. I am very proudof our teams and couldn’t be more excited about the future.

Paul Marciano

Co-Founder and Chief Creative Officer, Guess?, Inc.

Paul on GUESS campaign set,
spring 2023; Capri, Italy.

Paul Marciano
Co-Founder and Chief
Creative Officer,
Guess?, Inc.

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ESG REPORT FISCAL YEARS 2022–2023

ABOUT GUESSGRI 2-1, 2-2, 2-6

Mixing Hollywood glamour with French chic, GUESS
continues to be a lifestyle brand that represents being
young, sexy, and adventurous for more than 40 years.
Starting with the first stonewashed, slim fitting 3-Zip
Marilyn jean, GUESS has been a trendsetter for different
generations, led by the founding Marciano brothers.
Since the beginning, the headquarters of GUESS has been
located in Los Angeles, California. Today, products aredesigned globally in both our Los Angeles and European
offices, before being made under carefully chosen
manufacturing partners.
We design and market our apparel under numerous
trademarks and brands including GUESS, Marciano,
GUESS Accessories, GUESS Activewear, GUESS Kids,
GUESS Factory, G by GUESS (GBG), GUESS Jeans
U.S.A., GUESS Originals, GUESS Home, GUESS ECO
and Consciously Constructed.
Established

1981

Countries served

100+

Employees

12,000

Building on
our heritage

Net revenue FY2023 (USD, thousands)$2,687,350

Net revenue FY2022 (USD, thousands)$2,591,631
Global stores* 2022

1,631

Global stores* 2023

1,608

* Global stores is direct operations, licensees, and distributors.

GUESS is a lifestyle brand with a full range of denim,
apparel, jewelry, fragrance, home goods and accessories
designed and marketed in about 100 countries aroundthe world, employing 12,000 people.
As of January 30, 2023, the company had 941 retaillocations across the Americas, Europe, and Asia. The
company’s partners and distributors additionally operate
667 retail and outlet stores in different parts of the world.
For full information and details on our financial
performances, please refer to the FY2023 Annual Report(10-K and Proxy statement). We are proud to have been
listed on the New York Stock Exchange (NYSE: GES)
since August, 1996.
» Read more about our brands on page 8

GUESS campaign, spring 2023; Capri, Italy.
Men’s shirt is made of eco viscose.

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ESG REPORT FISCAL YEARS 2022–2023

ABOUT GUESS continued
GRI 2-1, 2-2, 2-6

EUROPECANADAMONTREAL

SWITZERLAND

LUGANOFLORENCEITALY

LOS ANGELES

TURKEYUSA

CHINA
SHANGHAITUNISIAMEXICOINDIA
MYANMAR(BURMA)PAKISTAN

VIETNAMBANGLADESHGUATEMALA

CAMBODIASRI LANKA

Guess?, Inc., is a global fashion
brand with headquarters in Los
Angeles, Montreal, Lugano,
Florence, and Shanghai, with a
network of trusted suppliers stretchingacross the globe. Our presence isgreatly represented by our retailstores: today there are over 1,600
locations worldwide, ensuring thepresence of GUESS on every
continent. From our supply chain toeach retail store, our GUESS Family
keeps on growing!

INDONESIAKeyGUESS Stores in country
GUESS Headquarters
and main locations
Main countries GUESS
sources from

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ABOUT GUESS continued
GRI 2-1, 2-2, 2-6

Committed to becoming
a worldwide leader inthe fashion industry
GUESS Mission

At GUESS, we are committed to becoming a worldwide
leader for sustainability in the fashion industry.

GUESS Values are strongly linked with the GUESS Rules:

GUESS Values

GUESS Rules

1. Belief.

1. Attitude.

We are committed to listening and responding to the needsof our customers, associates, and business partners, and tohonoring their individual values.

2.	Hope. Nevergive up.

2.	Common
sense.

We are dedicated to personal and professional enrichment
through an environment of open communication, teamwork,
trust, and respect.

3. Destiny.

3. Courage.

4. Trust.

4.	Get thingsdone.

We deliver products and services of uncompromising quality
and integrity consistent with our brand and our image.

We continue to give back to the community, support
humanity, and protect the environment as part of our
responsibilities.
We remain committed to an entrepreneurial spirit that
fuels the growth of our company and increases
shareholder value.

5.	Never forgetyour roots.
6.	Respect others.

5. 	Sense ofurgency.
6.	Be a goodteammate.

Through principled leadership, we embrace diversity,and we cultivate strength, pride, and passion to alignour personal lives with our professional lives.
GUESS campaign, fall 2022; Quincy, California.

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ABOUT GUESS continued
GRI 2-1, 2-2, 2-6

Our global
lifestyle brands
OUR BRANDPEOPLE &CULTUREGUESSGUESS Jeans U.S.A.

GUESS Factory

Marciano

GUESS Accessories

GUESS Originals

GBG

GUESS HomeGUESS designs, markets, distributes,
and licenses a lifestyle collectionof contemporary apparel, denim,
handbags, watches, footwear, andrelated consumer products. GUESS
products are distributed throughbranded GUESS stores as well as
department and specialty storesaround the world.

GUESS Factory follows suit in true
GUESS style with apparel andaccessories at must-shop prices.
GUESS Factory designs, markets,and distributes full collections ofmen’s and women’s apparel as wellas accessories.

CUSTOMERSSTORESDESIGNGUESS.COM
SOURCING

GUESS Accessories and GUESS
stores sell GUESS and Marcianolabeled accessory products, suchas handbags, watches, footwear,
eyewear, fragrance, jewelry,and other accessories.

LICENSEES
WHOLESALE

SUPPLIERS

Designed in Los Angeles and drawn
out of the rich archives of the ’80s
and ’90s. Carefully curated eachseason, GUESS Jeans U.S.A. is the
top-tier division of GUESS, featuringiconic and timeless designs andpremium essentials. GUESS Jeans
U.S.A. leans into collaborations with
cultural opinion‑leading artists.

DIRECT OWNEDLOGISTICS

Powered by the past, improved by
the future. GUESS Originals is aheritage-inspired division that aligns
to contemporary fits and fabrications.
Collections are created to serve
an emerging customer base withmarketing and experiential moments
to support strategic retail partners.

Exclusive GUESS Home décor
collection, rounding out the brand’s
360-degree approach to offering
proposals that add a sprinkle ofdistinctive GUESS glamour, not onlyin the wardrobe department but
also in our homes.

GUESS Activewear

Designed to maximize performance,
comfort, and style, GUESS Activewear
is both technical and fashionable
in its approach to athleisure.

GUESS ECOGUESS Kids
We serve the style-conscious consumer through the iconic GUESS
brand and nine brand extensions. We deliver this through the hard
work of our in-house teams which design, source, market, distribute,and sell our products. With our products manufactured by a networkof suppliers around the world, the impact of our value chain is
far-reaching, and we recognize the people who contribute to ourbusiness throughout the supply chain, from raw materials to fabricmills to the final product.

Vintage California lifestyle makes
GBG fashion for the next generation.
GBG was created for young, hip,and trendy men and women withan eye for the freshest looks andhottest styles.

Marciano, the first brand extension
from GUESS, follows suit in true
GUESS style with apparel andaccessories on the edge of the
fashion forefront. This contemporary
runway-inspired collection, designed
for the fashion-forward woman
and man, is sexy with an elegant,sophisticated style that represents
pure glamour in everyday fashion.

GUESS Kids leads in tween, kids,
and baby apparel, providing
eye-catching fashion for the next
generation of trendsetters. A global
brand designed in Europe, GUESS
Kids is the first tween/kids brand tooffer flash collections to its global
customers, delivering the latest
trend-defining styles.

Our collection of environmentallyconscious clothing, is made withless water, fewer chemicals, andsustainably sourced fabrics.
Organic cotton, polyester recycledfrom plastic water bottles, andcellulose fibers from sustainably
managed forests are just a few ofour more sustainable materials.

CONSCIOUSLYCONSTRUCTED

Our environmentally conscious
collection of GUESS Factory
off-price products, is made using
at least 20% of more sustainable
materials that satisfy minimum
requirements as set by ourinternal guidelines.

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ESG REPORTS

ESG Report milestones

2014

FY2016–2017

FY2018–2019

FY2020–2021

FY2022–2023

Introduction

Getting started

Progress and alignment

Industry leadership

Industry innovation

Americas

Americas, Europe

Americas, Europe, Asia

Americas, Europe, Asia

Americas, Europe, Asia

• Introduced sustainability to• First sustainability plan
• First global carbon footprint• GRI pioneers• Limited assurance• Special targets and progress• Industry alignment: CDP, HRC,

• Leadership in reporting• First long-term sustainability• Reporting best practice• Limited assurance• Established SASB reporting• Introduced our Sustainability• Leadership in reporting• Double materiality assessment• Improved Sustainability

the company• Established GRI reporting system• Limited assurance

circularity

strategy – VISION GUESS

Assurance Framework• Reasonable assurance

Assurance Framework• Updated to GRI 2021 reporting• Update of ESG strategy• Reasonable assurance

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APPENDICESACTION GUESSGRI 2-23

Our best today,
better tomorrow
ACTION GUESS, our ESG Strategy, isn’t just something
we do, it’s who we are. At GUESS, we believe that fashionand sustainability go hand in hand. We have worked toensure that in all things we do, we respect the environment,
we are good teammates, and we get things done. Fromthat space of care and commitment, ACTION GUESS wasborn. Our customers want to look good; they want to feel
good, and they want to know that the clothes they wear
don’t come at the cost of the planet. We have listened toinvestors, customers, suppliers, and our team of employees
to get a clearer picture of what matters to them. ACTIONGUESS is setting the mark for the goals we all have, goals
that will help us reach a better, brighter tomorrow. Whilefocusing on the environment, social, and governancepillars, we have set ambitious targets to continuously
challenge ourselves to step into the future. With industry
best practices and the UN Sustainable Development Goals
as our guide, we dreamed up a plan to be a partner in thesolution through our business, our supply chain, and how
we connect with our consumers.

Awards and recognition

Sustainability is weaved into everything we do at
GUESS – making fashion that doesn’t compromise
our people or our planet. We are proud of our entire
business when these efforts are recognized externally.

• Finalist at Reuters Events© Responsible

Business Awards 2022 for the Reporting
and Transparency Award – Since the launchof its first sustainability plan in 2016, GUESS
has continued to evolve its sustainability targets,
integrating them into the core of the business.
The company’s sustainability work has been
designed to create growth opportunities forthe corporation’s associates, suppliers, thecompany, and the communities it serves.

• GUESS recognized as Supplier

Engagement Leader by CDP – GUESS is
proud to announce that the company has beenrecognized among the top 8% for supplierengagement on climate change, focusing on
our role in addressing their environmental
impact and driving the transition to a net-zerosustainable economy across our supply chain.

ESG REPORT FISCAL YEARS 2022–2023

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ACTION GUESS continued

ACTION GUESSENVIRONMENTSOCIAL

GOVERNANCE

Respect nature

Be a good teammate

Get things done

For GUESS, being a sustainable company means showing the utmost respect for
nature. We recognize the fashion industry’s impact on the environment and takeactive steps to address these impacts. As we walk into the future, we will continue
to innovate in the sustainability sphere, creating new pathways to reduce ourfootprint, encourage a circular economy, and choose materials wisely.

GUESS believes that our company represents a family. From our supply chain
partners to our store associates, we work tirelessly to create a workforce thatis inclusive and fair, where everyone can thrive. Being a good teammate isabout treating people well. We do that by promoting equality, diversity,
education, and awareness.

At GUESS, we value good governance, because doing things the right way isjust as important as doing them well. We work within our ecosystem each day
to build mutual trust from the supply chain to our stores. By holding ourselvesto the highest standards of performance and equality, we align all levels of ourcompany to the GUESS values of excellence and integrity.

• Climate• Responsible materials and products• Chemicals, pollution, and• Supply chain responsibility• Governance and business ethics• Responsible marketing• Data security and privacy• Circular economy, packaging,and labor rights• Diversity and inclusion• Employee wellbeing
and engagement» Read more on pages 12–31» Read more on pages 32–55» Read more on pages 56–64

water stewardshipand waste• Nature and biodiversity» See page 66 for more information on our double materiality assessment and page 75 for stakeholder engagement

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Respect
natureGUESS campaign, spring 2023; Capri, Italy.
Men’s jacket is made of organic cotton; Women’s tops are madeof recycled polyester and pants made of organic cotton.

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ENVIRONMENT INTRODUCTION

Committed to being a part of the solution
Taking care of our planet and respecting ourenvironment are essential parts of the way
GUESS does business. Through our operations
and supply chain, we are committed to
expanding our assortment of apparel thathas a lower impact on our environment.
The majority of environmental impact occurs
in the supply chain process, and one of themost effective ways we can reduce our footprintis through our choice of materials. This is why
at GUESS, we consciously choose materials
produced with less water usage, fewer
chemicals, and that are sustainably sourced.
In truth, we don’t yet know all the ways ourenvironment can be negatively affected, but
we’re committed to being a part of the solution.
We take a precautionary approach todeveloping products, striving to protect theenvironment even in the absence of scientificcertainty or regulatory requirements.
This world belongs to us all, and at GUESS
we are determined to do our part to keep
our planet safe.

Sustainable Development Goals

Key topics
Climate» Read about on pages 14-16

Responsible materials and products» Read about on pages 17-23

Circular economy, packaging, and waste
We align with SDG 6 Clean Water andSanitation, SDG 12 Responsible Production
and Consumption and SDG 13 Climate Actionof the UN 2030 Agenda. We are committed toreducing our carbon footprint through a sciencebased approach, and by incorporating climate
risks into our strategic thinking; we place great
focus on circularity and the sourcing of responsible
materials for our collections; we maintain a strong
commitment to water-saving practices in our
production; and we are increasing our efforts
to protect nature and preserve biodiversity.

» Read about on pages 24-26

Chemicals, pollution, and water stewardship» Read about on pages 27-29

Nature and biodiversity» Read about on pages 30-31

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CLIMATE

Working in synergy
with our customers,
suppliers, investors,
and associates toreduce our impact

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 (2024)

GUESS recognizes the impact the fashionindustry has on the environment and climatechange. We are committed to addressing that
impact by reducing greenhouse gas (GHG)
emissions across our operations and supply
chain, working with suppliers, and identifying our
climate risks and opportunities.

GUESS Via del Corso
Rome, Italy.

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ESG REPORT FISCAL YEARS 2022–2023

CLIMATE continued
GRI 302-1, 302-4, 305-1, 305-2, 305-3, 305-5

Reducing our carbon footprint

In our FY2020-2021 Sustainability Report, we announced
that our greenhouse gas emissions reduction targets wereapproved by the Science Based Targets initiative (SBTi)
that recognizes our commitment to reducing our absoluteemissions by 50% across Scope 1 and 2 and by 30% in
Scope 3 (Category 1 – Purchased Goods and Services)by 2030 from our FY2019 baseline.

time as Management believes FY2019 provides anaccurate reflection of our overall emissions profile,boundaries and current methodology. The Scope 2
indirect emissions for the base year were calculatedusing the market-based methodology.

Our previous goal on Scope 1 and 2 energy intensity
reduction of 15% from baseline FY2016 was achieved
in FY2021 and therefore no longer put forth again.
Our SBTi goals are now based on FY2019 baseline.

We are proud to be a Business Ambition for 1.5°C
campaign member and a signatory of the Fashion Industry
Charter on Climate Action, part of the UN Framework
Convention on Climate Change. The Charter is guided
by its vision to drive the fashion industry to net-zerogreenhouse gas emissions no later than 2050 withthe aim of keeping global warming below 1.5°C.

The base year was chosen in accordance with the
GHG Protocol guidance for tracking emissions overSince FY2019, we have reduced our Scope 1 and 2 GHG
emissions (market based) by 50% by making our stores

GHG Emissions
Scope 1 and Scope 2 (Market Based)

GHG inMTCO2e(reduction vs.
FY2019)40,785more energy-efficient while increasing our use ofrenewable energy through the purchase of renewableenergy credits (RECs)1. In fact, from FY2022, GUESS
partnered with an external provider to purchaserenewable energy attribute certificates across multiple
markets to reduce our Scope 2 emissions. As a part ofsetting our new roadmap to achieve our SBTs, we arecontinuing to develop our renewable energy purchasing
strategy in FY2024, which we will share publicly next year.
This strategy will set out our plans to reduce the numberof credits we buy, and plans to implement a thoughtful
and impactful renewable energy purchasing strategy.
Focusing on our apparel Purchased Goods and Services,
we have committed to reducing Scope 3 emissions by 30%
against our FY2019 baseline by 2030 as part of our SBTs.

-50%

43,001

Scope 1 and 2 emissions
reduced by 50% since
FY2019(+2,216)

33,514(-7,271)

Many of the decisions we make on a day to day basis
can impact Scope 3 emissions, so we will continue tomake educated choices in terms of the materials we use,sustainable product design, and increased durability forour products.
In FY2022 GUESS saw its Scope 3 (Category 1 –Purchased Goods and Services) emissions increase
proportionally with the increase in production and sales
during that same fiscal year. For FY2023, to evaluate
their impact, we took into consideration the switch toenvironmentally preferred materials on our Scope 3
emissions. A more detailed and thoughtful strategy will
be disclosed in 2024.
1	Certificates included guarantee of Origin in EU, I-RECs in China, REGO in UK,
RECs in North America.

GHG Emissions
Scope 3 (Category 1 – Purchased Goods and Services)

GHG inMTCO2e(reduction vs.
FY2019)524,296
463,162(+61,134)

445,802385,077(-17,360)(-78,085)

303,743
20,544

20,295(-20,241)(-20,490)

FY2022

FY2023+5%

GHG emissions
reduction

FY2019*FY2020*% reduction
vs. FY2019-50% (2030 TARGET FOR GHG REDUCTION)

FY2021*

-18%

-50%

-50%

(-159,419)-17%

Scope 3 (Category 1 –Purchased Goods andServices) emissions
reduced by 17%
since FY2019*	Prior periods are covered by previous KPMG
assurance reports; FY2019 at the limited
assurance level and FY2020-2021 at thereasonable assurance level.

+13%

GHG emissions
reduction

FY2019*FY2020*

FY2021*

FY2022

FY2023-4%% reduction
vs. FY2019-30% (2030 TARGET FOR GHG REDUCTION)

-17%

-34%

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ESG REPORT FISCAL YEARS 2022–2023

CLIMATE continued
GRI 302-1, 302-4, 305-1, 305-2, 305-3, 305-5

Reducing our carbon footprint continued
CDP results

Reporting since 2018, GUESS is committed to continue
responding to the CDP on an annual basis. The scoringof our climate change report ranges within the top tier,between “A” and “B”. Any variance is primarily due tomore stringent scoring related to impact measurement in
the supply chain and climate-related risks governance.
We continue to strive for excellence in impact and reporting,both in this ESG Report and in our CDP responses. As partof our commitment to transparent reporting, we obtained
reasonable assurance related to our Scope 1, 2, and 3
GHG emissions prior to submission of our FY2022 CDP
response. In addition, management’s assertion over
FY2023 Scope 1, 2, and 3 GHG emissions was subject
to KPMG’s assurance engagement, as described in the
Independent accountants’ report on page 80.
In the last CDP reporting period, GUESS was recognizedon the Supplier Engagement Rating Leaderboard as being
among the top 8% of companies for supplier engagement
on climate change. The CDP Supplier Engagement Rating
recognizes companies that are playing a crucial role inaddressing their environmental impact and driving thetransition to a net-zero sustainable economy across their
supply chain. This rating is based on the four categories
of governance, targets, reporting of Scope 3 emissions,and supplier engagement.

Total energy consumption (gigajoules**)

Renewable vs. Non-renewable energy consumption

450,000

28%

414,071
400,000

378,954
343,455

350,000

328,634

300,000

250,000

28% of the energy used was renewable in
FY2023. GUESS started buying RECs in FY2022.

40++60G40

28%

200,000

150,000

FY2023100,000

50,000072%

FY2019*FY2020*

FY2021*

FY2022

FY2023

Electricity consumption

Heating consumption

Renewable

Cooling consumption

Renewable energy credits

Non-renewable

Managing climate-related risks
and opportunities

As a global brand in the fashion industry, our operations
and supply chain are subject to various climate interruptions.
Extreme weather can disrupt the typical cotton growing
season, which critically affects our supply. To ensure ourresilience to evolving times, we assess our climate-relatedrisks annually. In addition, the global flexibility and diversityof our operations and supply chain help mitigate the risksof changing weather patterns in particular regions.

347,767*	Prior periods are covered by previous KPMG assurance reports; FY2019 at limited
assurance, FY2020 and FY2021 at reasonable assurance.
**	Energy from all sources have converted to gigajoules in line with GRI requirements.

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RESPONSIBLE MATERIALS AND PRODUCTS

Responsible
materials andproducts
At GUESS, we are conscious of theenvironmental impact of the materials we use.
Each material brings its own considerations,with cotton production requiring high water use;
polyester being manufactured with non‑renewable
petroleum products, and high carbon footprint;
and manmade cellulosics carrying risks ofdeforestation. To increase our ability to innovatein Climate Positive fashion, it’s imperative weincrease our sourcing of environmentally
preferred materials.
To that end, the impact of our clothing and thematerials we use reach far beyond production.
We must consider product transportation, thepackaging we use, and what happens to our
products at the end of their lifecycle. Having awell-rounded approach to responsibly sourcing
materials and circularity of our products is an
important part of our commitment to sustainability.

Goals• 30% of GUESS global apparel materials
portfolio will be environmentally preferred(2023)• 75% of GUESS global apparel materials
portfolio will be environmentally preferred(2030)• 75% of all fibers used in men’s bags mainmaterial will be environmentally preferred(2025)• 80% recycled or biobased polyester will
be used for the apparel mainline (2025)• 80% recycled or biobased polyester will
be used for all apparel brands (2030)• 80% regenerative, recycled, or organic cotton
will be used for all apparel brands (2030)• 75% of GUESS denim apparel mainline
will be GUESS ECO (2030)• 50% of GUESS all apparel mainline
will be GUESS ECO (2025)• 35% of GUESS apparel Factory mainline
will be Consciously Constructed (2025)• 50% of GUESS men’s bags will be
GUESS ECO (2025)

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Responsible material sourcing

Our products are comprised of a wide range of natural, synthetic, and manmade materials. Each material carries its own unique socialand environmental impacts as well as risks around the ability to source them consistently and reliably. For each of our main material types,
we are finding lower impact alternatives:
Main materials(top 3 materials by usage)% of global material
portfolio in FY2023 Alternative materials

Cotton – used tomake our classic
denim and logo tees

57%

Synthetics such aspolyester, nylon,
and spandex

30%

We are making the move to using organic cotton, which avoids the use of pesticides and synthetic
fertilizers that can be harmful to farmers, biodiversity, and soil.
Our goal is to use 80% regenerative, recycled, or organic cotton for all apparel brands by 2030.
We plan to increase our use of recycled polyester in place of virgin polyester as it uses less energy
and supports circular principles.
Our goal is to use 80% recycled or biobased polyester for apparel mainline by 2025, and for all
apparel brands by 2030.

Manmade cellulosics 10%
such as viscose/rayon,
modal, and lyocell

To address deforestation risks associated with manmade cellulosics, GUESS uses more sustainable
materials from producers Lenzing™ and Birla, which have pledged to manufacture viscose moresustainably. We aim to source all wood-based materials from only sustainably managed forests,
sourcing materials certified by the Forest Stewardship Council (FSC) or the Programme for theEndorsement of Forest Certification (PEFC).

Global materials portfolio
Renewable fibers<1%

Cotton30%

Manmade Cellulosics (including Tencel)
Other – natural*

FY2023

Leather

2%
<1%
10%

Non-renewable fibers
57%

Synthetic
Manmade non-renewable fibers (MMF)*	Includes alpaca hair, cashmere, linen, wool, mercerized wool, virgin wool, recycled wool, other hair.

65+35+G82+
8218+G

Percentage (number) of new suppliers screenedusing environmental criteria

FY202265%

FY202382%(93 out of 143)

(107 out of 131)

» See Sustainable Vendor Rating on page 39 for additional information

GUESS campaign, spring 2023; Capri, Italy.
Women’s shirt made of recycled polyesterand pants made of eco Tencel™;
Men’s shirt is made of eco viscose.

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Reduce vulnerability

To reduce vulnerability in cotton-growing regions, GUESS
implements diversification strategies in sourcing practices.
This approach considers direct concerns related to material
production and indirect concerns related to garment
production. By considering these various factors, GUESS
aims to enhance supply chain resilience and minimize risks
across all production stages.
From a material standpoint, GUESS focuses on exploring
certified alternatives to conventional cotton, such asorganic and recycled cotton, or other sustainable materials
that can reduce the water footprint of cotton production.
All responsible alternatives used are certified by standards
that establish a consistent framework for evaluating materials.
As mentioned in the latest report published by theWorld Wildlife Fund (WWF) on June 5, 2023, titled“Benchmarking of Sustainability Standards used in Cotton
Production”, it is crucial that sustainability efforts go beyond
certification to ensure a holistic approach to improving
sustainability throughout the entire cotton value chain.
As part of the risk assessment and in line with thisapproach, GUESS conducts a thorough assessment of
its supplier base to gather information and evaluate thepractices employed by its suppliers, with a specific focus
on regions affected by water scarcity. The goal is to
identify suppliers that demonstrate more sustainable water
management practices and prioritize responsible water
usage, contributing to mitigating the challenges posedby water scarcity in their regions.

Considering that denim production significantly impacts
water use due to various manufacturing stages that requirewater, GUESS particularly focuses on denim suppliers thatenhance water conservation measures. These measures may
include implementing comprehensive water management
strategies, optimizing processes, investing in water‑efficienttechnologies, and implementing water recycling systems
within production facilities. These actions help minimize
water consumption, reduce freshwater usage, and minimize
the discharge of polluted water into the environment
throughout the denim manufacturing process.
This sourcing approach helps mitigate potential problems,
ensuring a more secure and stable cotton supply, and aligns
with GUESS’ commitment to responsible sourcing practices.

“GUESS aims toenhance supply chain
resilience and minimizerisks across all
production stages.”

Mitigate the risk of price variability

To mitigate the risk of price variability, establishing andmaintaining long-term supplier relationships is crucial
for GUESS. By building stable partnerships, prioritizing
loyalty and commitment, GUESS strengthens its position
to effectively navigate price fluctuations and ensure
a secure and stable cotton supply.
Building stable and enduring partnerships with vendorsthat produce cotton products offers enhanced security
and stability in terms of pricing. Strong relationships withvendors reduce the uncertainty associated with fluctuating
market conditions and help GUESS manage the risk of
sudden price increases or fluctuations.
In addition, diversifying sourcing locations across different
markets such as China, India, Pakistan, and Bangladesh
allows GUESS to minimize risks related to relying solely ona single market, which can lead to disruptions in the supply
chain. For example, reducing dependence on regions
susceptible to water scarcity helps mitigate the impact on
pricing. By exploring alternative regions that prioritize
sustainable water management practices, the company
can reduce vulnerability to localized water scarcity.
Moreover, different markets provide distinct advantages
in terms of production expertise and sourcing options.
By venturing into different markets, GUESS can identify
the most suitable options that align with its internal
cost considerations.

Policies

Our raw material sourcing and responsible production
policies are at the heart of reducing our supply chain
impacts. These policies help to protect the environment,
workers, and communities by encouraging the use of
raw materials produced with higher environmental andsocial standards.

Core policies• GUESS Responsible Cotton Sourcing Policy– Aims to increase procurement of preferredcotton sources while working to improve
traceability and keep prohibited cotton sourcesfrom entering our supply chain• GUESS Responsible Sourcing – Policy

on Manmade Cellulosic Fabrics – Aims toensure responsible sourcing of rayon/viscose,
modal, and lyocell fabrics, from sources which
do not put at risk the world’s ancient andendangered forests• GUESS Denim Water and Chemical

Management Policy – Aims to address our
product impact on water, with a focus on denim• GUESS Animal Welfare Policy – Aims toprotect the wellbeing of all animals in our
supply chain» All above policies are available at sustainability.guess.com

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Brand eco collections: GUESS ECO
and Consciously Constructed

Creating more sustainable products for our customers
begins with innovative design and responsible selectionof materials. We currently offer two collections of moresustainable products:• The Consciously Constructed range consists ofproducts which are developed using at least 20%of environmentally preferred materials• Whereas our GUESS ECO collection is specific to

GUESS branded products that are not only madewith at least 20% of environmentally preferredmaterials but can additionally use production methods
that reduce their environmental impact

We developed internal guidelines for products in the
GUESS ECO and Consciously Constructed collections that
help support our product teams to choose environmentally
preferred materials, avoid harmful processes andembellishments, and encourage the use of innovative
production methods that reduce environmental impact.
Our guidelines help to ensure our product teams consider
our commitments to sustainable materials. These guidelines
are vital to develop goods that reflect our ESG Goals forapparel, accessories, and footwear without compromising
the GUESS brand DNA.

Since FY2020, we have increased the percentage ofenvironmentally preferred raw materials for the twocollections. More than 50% of apparel mainline products
are now made with environmentally preferred materials.

Percentage of brand eco collections
Percentage against total receipt units

Some of our brand eco collection materials include:

50%

Cotton:40%• Organic and recycled cotton, reducing agricultural
pollution and waste to create butter-soft denim andnatural fabrics

Cellulosics:• Lenzing™ materials, such as Tencel™ and Ecovero™,
extracted from sustainably grown wood sources andused primarily in our Kids’ collections

Synthetic:• Repreve™, a performance fiber made from recycledmaterials such as plastic bottles• Polylactide (PLA) fibers, a degradable1 bioplastic fiberused to create an eco-denim fabric**	Percentage by receipt equivalent units; environmentally preferred materials
include both certified materials (i.e. organic and recycled materials forwhich we received/expect to receive a Transaction Certificate according tocertification bodies guidelines) and more sustainable non-certified materials(e.g. hemp, linen, Lenzing™).

53%
51%
42%

30%
21%

20%
10%
0%

FY2020that lends a great stretch to our denim products• Recycled silicone and thermoplastic polyurethane,to replace PVC material for our rubber patches• VIRIDIS, a biobased material, to replace leather
Leather:

FY2021

FY2022GUESS ECO units of GUESS apparel mainline non-denim only percentage by receipt units at GUESS distribution centers
GUESS ECO units of GUESS apparel mainline (denim and non-denim) percentage by receipt units at GUESS distribution centers
Consciously Constructed units of GUESS apparel Factory mainline by receipt units at GUESS distribution centers

51%

Environmentally preferred materials**
28%

GUESS ECO accounts
for 51% of apparelmainline products*

Other – non-natural:• Recycled metals for our trims, including buttons, rivets,and plackets

1	Degradable only under certain conditions.

28%

Overall 28% of ourglobal materials portfolio
was environmentally
preferred**

30%

19%

• Leather Working Group certified chrome-free leather
used for actual leather patches

FY2023

GUESS ECO units of GUESS apparel mainline denim only percentage by receipt units at GUESS distribution centers• Roica V550, an innovative degradable¹ stretch fiber,

patches on the back of our denim products*	Percentage by receipt units; apparel mainline stands for mainline collection of
GUESS branded clothes for adults, both women and men, that encompasses
all apparel categories, from t-shirts to outerwear. Apparel mainline excludes
other GUESS branded apparel categories (i.e. Kids, Athleisure, Underwear,
Beachwear, Factory), other non-apparel product categories (i.e. Bags,
Footwear, Small Leather Goods, Accessories, Home) and other brands(i.e. Marciano, GBG, GUESS Jeans U.S.A., GUESS Originals).

60%

12%

1%
FY2020 FY2021 FY2022 FY2023 FY2024

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RESPONSIBLE MATERIALS AND PRODUCTS continued

Brand eco collections: GUESS ECO
and Consciously Constructed continued

During FY2022-2023, we revised our requirements foritems to be classified as GUESS ECO or Consciously
Constructed by increasing the minimum content percentage
of environmentally preferred materials. We are continuing
our research in this area by assessing the environmental
impact of the materials we use now and in the future.
Due to the success of our GUESS ECO collection, we began
to expand the range in FY2024 to include handbags andmore sustainable footwear options. Instead of nylon,
leather, and polyurethane, the handbags and shoes will
now include recycled polyester or recycled polyurethane.

We are very selective about the sustainable productinitiatives that we follow. We want to make sure that weembrace each one fully, apply it correctly, and collaborate
with the right partners to achieve the best result in ourfinished products. To do this, we help our suppliers adopt
new technologies that allow them to use less water, fewer
chemicals, and less energy. We have also been using
EIM technology throughout the manufacturing process
to measure environmental impact and identify areas of
improvement. We exercise discernment when choosing
sustainable product initiatives to pursue. Our objective isto wholeheartedly embrace each initiative, implement it
accurately, and foster collaboration with suitable partners
to achieve optimal outcomes in our final products.

Sustainable product initiatives

In order to uphold the integrity of our products, weconsistently conduct meticulous assessments of theirsustainability credentials while remaining vigilant in our
pursuit of novel sustainable materials and technologies.
It’s important to GUESS that we can still create productsthat align with our brand and carry the level of excellence
our customers love. With every new material and process
we pilot, we run testing to ensure quality is nevercompromised. When it comes to denim, which traditionallyuses a large amount of water, energy, and chemicals,
we have been using the Indigo Flow™ dyeing process,part of the Earth Feel Denim initiative. This process allows
us to reduce water use and produce minimal waste
while continuing to make the same high-quality fabrics
and colors.

“We are committed tocontinuing our researchin this area by assessing
the environmental
impact of the materials
we use now and in the
future, and using moresustainable materials
where possible.”
Denim Style Guide, fall 2022.

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Using environmentally preferred materials

We use environmentally preferred materials across our brands, selecting fibers to create garments that have the distinctive
GUESS look and quality our customers expect with a lower environmental impact. As well as using organic and recycledcertified fibers in our main material categories, we also use a range of natural fibers, including linen, silk, and bamboo.

Did you know?
Organic cotton uses lesswater than traditional
cotton and is treatedwith fewer chemicals,
which is beneficial for
people and the planet.
Tencel™ lyocell with
Refibra™ technology uses
recycled cotton fromfabric cutting scraps.
RECYCLED COTTON

Recycled cotton is commonly madeusing recycled industry fabric or
scrap waste (pre-consumer).
Progress is being made to makenew materials out of pre-loved
garments (post‑consumer).

ORGANIC COTTON

This fiber is developed using organic
grown crops that replenish andmaintain soil health and fertility,
whilst avoiding the use of toxic andpersistent synthetic pesticides.

RECYCLED POLYESTERThis fiber is made of recycled plastic and bottles, aimed at
reducing waste and increasing diversion from landfill.

Tencel™, Lenzing™ andEcovero™ branded fibers

Tencel™, Lenzing™ and Ecovero™ are
trademarks of Lenzing AG. These fibers
come from responsibly managed
forests, are made of renewablematerials, and are manufactured using
processes with lower emissions.

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Innovating for sustainable jewelry

As consumer awareness regarding sustainable fashion
continues to grow, the demand for sustainable jewelry
has shown an increase. In recent years, we have diligently
pursued the goal of enhancing the sustainability of ourjewelry collections. Our efforts have entailed transitioning
from varied metals to recycled stainless steel, thereby
minimizing our reliance on virgin resources, and curtailed
the use of non-branded crystals in our designs. We havealso replaced water plating with ion plating techniques,
resulting in reduced wastewater generation.
Although we are progressing with eco jewelry, the shift
is not without its challenges. Sources of virgin stainlesssteel are finite. In response to this challenge, we haveprogressively increased our use of recovered raw material
from sustainable sources. We have started using certified
post-consumer recycled stainless steel in our jewelry, withsome products containing up to 90% recycled material.
With each roadblock we encounter, we’re finding new
ways to innovate sustainable goods.

Enhancing traceability in our supply chain
In our pursuit of responsible materials, traceability plays apivotal role as it guarantees the authenticity and quality of
our inputs and production procedures. Within the GUESSECO and Consciously Constructed range, numerous
products incorporate raw materials that have received
certification from recognized third-party sustainability
standards (e.g. Textile Exchange Content Claim Standard- CCS). These materials can be traced all the way fromtheir source to the final garment.

» See Social section on page 34 for more details regarding traceability
GUESS Fine Jewelry campaign, fall 2023; Como, Italy.

Our approach includes:• Rigorous internal processes to track and trace certified
materials and fabrics used to manufacture our garments• Respect for the chain of custody• Collection and management of the supporting
documentation• Laboratory testing
Prior to placing the production order of goods madewith certified materials, we maintain the chain of custodyand the integrity of our sustainable sourcing practices byobtaining a third-party supplier plant-level certificate.
We also secure a transaction certificate tied to the relevant
GUESS purchase order. This allows us to confidently tracematerials from production to final product delivery, ensuringfibers are correctly managed from a sustainability pointof view.
For goods made with other environmentally preferredmaterials, such as the manmade cellulosics developed
by Lenzing™ and Birla, we also require our suppliers
to unequivocally link the preferred fabric to the final
garment to accurately trace the fabric along the appareldevelopment process and enhance transparency andtraceability across the supply chain. We also make sure
to follow up with participating plants on a regular basis
to verify their certification renewals.
Many of our suppliers already hold the necessary
supporting sustainability documents. To encourage the useof more sustainable process and environmentally preferredmaterials, we are committed to raising awareness among
our suppliers to apply for similar approvals not only for
products but to extend to manufacturing processes.
Although it requires resources, supporting and engaging
more suppliers to make these improvements, ultimately it
benefits the wider fashion industry.

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CIRCULAR ECONOMY, PACKAGING, AND WASTE

Circulareconomy,packaging,
and waste
Keeping materials in use for longer

GUESS is continually looking for new ways to promote
the circular economy. What was once considered waste,is looped back into the system and transformed into
fashionable, sustainable goods. This is the ultimate cycleof reuse.
Across our organization, the business case for circularity
is clear: the materials used in our supply chain represent
the largest part of our environmental footprint. By engaging
the circular economy, we have an opportunity to reducethat footprint. We do this by sourcing more sustainable
materials and implementing a circular approach that keeps
materials in use for longer. By investing in, applying,
sharing, and scaling circular business models, we can help
our industry shift from linear to circular where the value ofraw materials is maximized.

As we develop GUESS’ circularity strategy, we’ve set out
to define what “circularity” means for us. As the conversation
continues, we have been able to relaunch our RESOURCED
takeback program across our stores. This program provides
space for customers to recycle unwanted apparel andfootwear from any brand. Working in partnership with
Homeboy Industries & Recycling at our US stores and
I:Collect (I:CO®) in selected stores in Austria and Germany,
the unwanted apparel and footwear is sorted, reused,
and recycled, saving these items from landfills.
Expanding our RESOURCED recycling program is justone of the ways we are contributing to our Global Fashion
Agenda’s 2020 Circular Fashion System Commitment.
For more information about RESOURCED, check out
our video on the GUESS YouTube channel.
In FY2023, through our textile recycling, reuse partnerships,
and customer takeback schemes, we diverted 101,515 kg ofapparel, accessories, footwear, and jewelry from landfills.

Ellen MacArthur Foundation’s Jeans Redesign

In FY2020, GUESS joined the Ellen MacArthur Foundation’s
Jeans Redesign project, which works to make the denim
production process more sustainable and supports thehealth of garment workers. Part of the Foundation’s Make
Fashion Circular initiative, the project uses the principles ofa circular economy and lays out guidelines for producers toensure products are durable and made with recycled andrecyclable materials. The project also creates guidelines toensure products have a minimal social and environmental
impact. Since FY2022, we have proudly offered a portionof our denim that meets these requirements.

GUESS Vintage
Managing non-sellable products

Since FY2017 the SOEX Group and Saado Trading
company have supported us with the management
and reuse of non-sellable products. With theobjective of diverting products from landfill or
incineration, they have enabled us to responsibly
locate both secondhand markets and recycling
solutions for end-of-life items.

GUESS Vintage continues to be a driving interest among
our valued customers. With over 40 years of product design,
we’re constantly looking for new ways to celebrate our richhistory. We’ve started doing this by giving new life to vintage
pieces through pop-up offerings, upcycling and recycling
partnerships, and rounding out an extensive archive. Since
FY2017, our designers have looked to vintage designs togather inspiration for our brand divisions, GUESS Jeans
U.S.A. and GUESS Originals. This focus on vintage apparelhas led to increased demand in the resale market andsuccess for our climate safe offerings.

Goals• Introduce or increase repair, resale, andupcycling initiatives in key markets, that
truly drive a circular economy (2025)• Develop circular strategy and policy todefine circularity and what a circular
product is to GUESS, supported by acircular design playbook for productdesigners (2025)• Apply circular design playbook to one
capsule per each season (2030)• 100% product packaging to be recycled
and recyclable for all apparel and men’sbags (including primary and secondary
packaging and hangtags) (2030)

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RESOURCED program: Homeboy
Takeback Program (US)In April 2022, we established a new partnership with
Homeboy Industries’ social enterprise, Homeboy Recycling.
This partnership worked to launch a new in-store recycling
program in US stores which in return creates new jobs fordeserving people. Homeboy Recycling is a mission-driven
business that provides jobs for formerly gang-involved
and previously incarcerated people as well as providing
customers with reuse and recycling solutions. The workthat Homeboy Recycling and GUESS do together gives
second chances to clothing and people.
Our new in-store recycling program allows customers tobring five items of clothing or more (including damaged
items) from any brand to GUESS stores and in return,
receive a 15% discount on their next full-priced qualifying
purchase. All items are then sent to Homeboy Recycling
to be sorted and processed for repair, resale, upcycling,
and recycling. This program is valid at all GUESS, GUESS
Accessories, GUESS Factory, GUESS Factory Accessories,
GBG, and Marciano stores in the United States.

“Our partnership with Homeboy
Recycling creates a pathway toward
the development of more sustainableproducts. This initiative represents
another strong step toward our
ACTION GUESS commitment todevelop more circular businessmodels and creates economic
opportunities for our Los Angeles
community and offers a solution
for apparel and textile waste.”– Carlos Alberini, CEO, Guess?, Inc.

“For Homeboy Recycling, ourfocus is to develop businesses thatcreate jobs and meaningful training
opportunities in our community.
After careful research and a pilot
program with GUESS, Homeboy
Recycling is thrilled to announce
this new line of business. We
learned that this type of programis aligned with the skill set of ourworkforce and fills a significant
need for industry. We look forward
to continuing this partnership andworking with the industry to address
textile waste.”– Chris Zwicke, CEO, Homeboy Recycling

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Enhancing our packaging
Packaging that is recycled and recyclable

The packaging customers take with them from our stores,
or that is delivered to their door – including bags, boxes
for wallets and shoes, jewelry pouches, and accessory
inserts – are primary contributors to the waste generated
by our retail operations around the world. We aredeveloping strategies to help combat this, by adopting
additional recyclable and recycled materials and making
waste reduction improvements such as upgrading
packing efficiencies in our distribution centers.
We are already making progress and introducing
recyclable, recycled, and responsible materials, including:• Recycled polyester, certified to the Global Recycling

Standard (GRS) for certain labels and packaging items• Recycled paper, certified by the Forest StewardshipCouncil (FSC) for hang tags, shipment packaging,and jewelry gift boxes• Recycled PET polybags for jewelry purchases• 100% recycled and recyclable packaging for our
Europe e-commerce shipping boxes• Water-based inks and vinyl glue on boxes, avoiding
heavy metals or formaldehyde

In our stores, we have introduced a QR code as apaperless solution for marketing materials. We are also
currently working on introducing another QR code as analternative to printed return labels.
All of our shipping boxes and bags have been designed
to be reused and, in case of disposal, are labeled withthe appropriate EU regulated recycling symbol.
In FY2024, we plan to start using 100% recycled envelopes
for small packages sent from our EU e-commerce and to
introduce polybags that wrap all of our merchandise madefrom 80-100% pre-consumer recycled LDPE material,
which is also recyclable.

GUESS Responsible Packaging Policy

For accessories, handbags, footwear, fragrance, andcosmetics, our global responsible packaging policy aims
to reduce plastics and packaging overall. We ensure thatpackaging is recyclable and/or contains certified recycledcontent, and supports options for reuse.
This policy covers varied packaging types including
airbag fillers, dust bags, jewelry boxes, polybags,
hangtags, and other forms of packaging. The policy has
been implemented globally by both GUESS and ourlargest licensee business partners.

Sustainable deliveries

The packaging our products are transported in andhow they travel to our customers are both part of ourvision to deliver more sustainable solutions. We haveintroduced new shipping options in Germany and Poland,such as lockers and options for pick-up and drop-off
through PUDO, which we expect to help condense thenumber of delivery trips required and remove the tricky“last-mile” of deliveries. This has:

• Expectation up to a 75% reduction in CO2 impact

compared to home delivery due to optimized routes
and reduced exhaust emissions – our logistic partner
claims that each parcel locker reduces CO2 emissions
by up to 14 tons per year

• Reduced noise pollution as fewer trips are being madeWe intend to roll out locker and PUDO options in morecountries in the upcoming years.

ESG REPORT FISCAL YEARS 2022–2023

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CHEMICALS, POLLUTION, AND WATER STEWARDSHIP

Chemical andwastewater
management
Chemicals that are used and end up in
wastewater can contribute considerably to thepollution of nearby natural ecosystems andcommunities. Additionally, if wastewater is not
managed, treated, and disposed of properly,
these chemicals can pose a risk to theenvironment and workers’ health.
We have chosen to take a cautious approach,
restricting the chemicals used by our suppliers
and using industry tools to monitor performance.

Dave Johnson, Senior Manager ofLaundry Operations, (Los Angeles HQ).

Goals
• Eliminate unnecessary use of persistentorganic pollutants (“forever chemicals” /PFAS) in line with the requirements of our
LRSM (2025)• Be water positive in supply chain: replenishing
more water than used in our supply chain(2035)• Clean wastewater – Zero hazardous
chemicals leaving wet processors (2030)• Become signatory of ZDHC and adopt
ZDHC MRSL (2026)• All supply chain ZDHC approved (2030)

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CHEMICALS, POLLUTION, AND WATER STEWARDSHIP continued
GRI 416-1, 416-2, SASB CG-AA-250a.1, CG-AA-250a.2, CG-MR-410a.2

Our approach to safe chemicals

To aid supply chain participants seeking to increase
product safety and reduce their environmental impact,
GUESS provides guidance on limiting the use of certain
substances in apparel, accessories, footwear, and jewelry.
To effectively manage the chemicals used in the
manufacturing of GUESS products, we require suppliers
to utilize our GUESS Apparel Performance and GUESS
Accessories Performance Manuals as well as our categoryspecific List of Restricted Substances and Materials (LRSM).
The GUESS LRSM has been developed in accordance withthe strictest standards found in any of the countries where
we operate. It identifies the chemicals that are limited, or
prohibited in our products or in the production process dueto their potential impact on consumers, workers, and theenvironment. This list also includes substances that may bepresent in finished materials alongside acceptableamounts of these substances.
All product requirements and compliance with the GUESSLRSM are covered in our factory vendor agreement, which
is updated and managed in collaboration with our Legal
department. All vendors receive complete documentation
and are asked to confirm their full understanding.
Suppliers are required to confirm compliance with the
GUESS LRSM through a written affirmation and the testingof either finished products or raw materials. In addition,
we carry out independent testing, using accredited third
parties, based on the product category and type.

For example, our products are tested according to alltarget markets’ regulations and vendors are asked toprovide quality tests regarding raw materials,
embellishments, and final product.
In addition, GUESS performs random chemical testing ofpainted articles, plastic parts, metal and metalized articles
in contact with skin, consumer articles, surface of coatedmaterials, trims and leather.
Products or raw materials that do not pass testing may be
accepted with contingencies to be reserved or reworked,
and retested or rejected depending on adherence tolegal requirements.
The GUESS LRSM is reviewed and updated annually, inpartnership with a third-party expert. Our approach in
updating the LRSM is to ensure completeness and accuracy
against the European Union’s REACH requirements andregulations in other markets. We also monitor industry
developments regarding chemical risks through industry
groups, vendor communications, etc. Our GUESS ECO
products are on the cutting edge of this industry, withincreasingly strict chemical management requirements.
To further support our commitment to reducing ourchemical footprint, we started to track the vendors which
are compliant with the Zero Discharge of Hazardous
Chemicals (ZDHC) program for safer chemical use.
» The GUESS LRSM is publicly available at sustainability.guess.com

Dave Johnson, Senior Manager ofLaundry Operations, (Los Angeles HQ).

In FY2023, the number of our key denim mills
suppliers reporting to Higg FEM has risen
from 33% to 100% since FY2020.

28

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CHEMICALS, POLLUTION, AND WATER STEWARDSHIP continued
GRI 303-1, SASB CG-AA-430a.1

Working with suppliers

To manage chemical and wastewater impacts, we focus
on our denim supply chain and the industry-wide tools thatare emerging to measure performance and build capacity
in this area.
All suppliers are required to have appropriate
environmental monitoring in place, as well as the legallyrequired licenses. The GUESS Code of Conduct, signedby all GUESS business partners, specifies that suppliers
procuring and disposing of wastewater or other types
of waste, must be prepared to provide evidence ofcompliance by maintaining valid wastewater and waste
disposal permits.
Beyond our Code of Conduct, we use two key tools
to track and measure supplier chemical andwastewater management:

1. Higg FEM Index

All our denim mills and major suppliers with qualifying
volumes, must complete the Higg FEM Survey, an industrywide tool that enables us to track how supplier sites are
performing on water and chemicals management.
Since FY2020, the number of our key denim mills
suppliers reporting to Higg FEM has risen from 33% to100%. We attribute this to the improved relationships withour consolidated vendor base, as well as an increased
prioritization of sustainability from our production teamand vendors alike.

2. Environmental Impact Measurement(EIM) scoring

EIM software was developed by Jeanologia to provide
laundries and finishers with a tool to help them implement
more sustainable processes. The EIM platform allows
laundry factory Managers to enter information about thefactory, the brand (such as GUESS), the wash formula,
the machines, and production practices. Based on this
input, the software calculates an environmental impact
score that measures water, chemicals, and energy
consumption as well as workers’ health. This EIM scoreis coded by performance, enabling factory personnel
and our company to benchmark the product by its socialand environmental impact.

Water stewardship at GUESS

From the growing of cotton to the washing of fabrics tocustomer care, denim can be water intensive to produce.
In knowing this, water stewardship, tracking, and monitoring
are fundamental to our environmental responsibility. As theeffects of climate change increase, we also need to include
water scarcity in our risk management processes.
With a focus on denim, our goal is to influence and improvewater management throughout the life cycle. This is laid out
in our Denim Water and Chemicals Management Policy
which applies to all denim suppliers and their facilities.
Established in FY2019, the GUESS Water Action Planaddresses each phase of the denim life cycle to prioritize
water savings and water quality. The plan also emphasizes
the importance of water education with our employees,
denim suppliers, customers, and community including
garment care, and community access to clean water.

Water-saving technologies

Saving water, like many other aspects of sustainability,
starts with responsibly growing and manufacturing fibers.
In addition to sustainable fibers, we also focus on efficientand innovative garment production methods. Some of theapproved water and chemical saving eco production
methods for GUESS ECO products include:• Ozone with e-flow for fabric softening• Laser treatment to distress denim• Stonewashing with reusable stones or without reusablestones through additional laser and ozone treatment• Cleaner yarn and fabric dye processes• Modern print processes, such as digital printing
and water or soy-based ink

On the way to water-free denim

Many of our suppliers are using e-flow technology to
reduce water and chemicals in the finishing processes.
Using electromechanical shocks to create nano bubbles
and a flow of wet air, e-flow breaks up the garment’s
surface, resulting in a soft, high-quality feel with reduced
shrinkage. This process requires a minimal amount ofwater and produces zero discharge.

Water use in own operations

Compared to the water used in our supply chain,
corporate water use at GUESS-owned operations is
minimal. This water use includes bathrooms, kitchens,
test laundries, and irrigation. We monitor and manage
water use locally as needed.

Wiser Wash

Wiser Wash is a new techniquethat gives gorgeous bleaching results
without harming human health or
the planet. Thanks to the ozone gas
generated from oxygen, Wiser Wash
provides abrasions and bright contrasts
with reduced pollution. The technology
behind Wiser Wash gives revolutionary
results using up to 80% less water.

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30

NATURE AND BIODIVERSITY

Protect natureand preserve
biodiversity
The COP 15 UN Biodiversity Conference in 2022,
communicated the bold steps needed to protect
nature and preserve biodiversity in the coming
decades. We recognize our part in this, and weare committed to developing a Science-Based
Targets for Nature (SBTN) aligned biodiversity
strategy over the next two years.
Our primary biodiversity impacts are throughour materials choices, and as we increase our useof environmentally preferred materials – such as
recycled or organic materials – we will continue
to reduce our biodiversity impacts. Due to its
deforestation risks, one of our top focuses ismanmade cellulosics. To mitigate these risks,
we are committed to sourcing cellulosic materials
from responsibly managed forests. We are also
experimenting with innovative materials such as
recycled and alternative sources to help further
relieve our dependence on natural resources.

Goal• Develop a biodiversity strategy alignedwith SBTN (2025)

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NATURE AND BIODIVERSITY continued

Customer engagement

At GUESS, we believe we have a responsibility to help
educate and inspire our communities to be active
sustainability advocates with the wellbeing of the planetat heart.

Treedom

As part of this endeavor, we launched the campaign“Be(leaf) in Change” in partnership with Treedom, atree-planting initiative that works closely with farmers in
Italy, Africa, and South America. When customers purchasetwo products from our brand eco collection, they receivea code to claim a tree through Treedom’s website, whichis then planted on their behalf. With the goal of building
knowledge about nature and its value, customers canreceive updates on the tree planting project, including thespecies and health of their tree.
The campaign launched on Earth Day in Italy in April
2022 and is present in 348 stores across Europe, as wellas online. GUESS planted 5,000 trees as part ofthe project.
GUESS partnered with Urban Vision to help
reduce pollution in the environment. Urban
Vision specializes in air purifying advertisingbillboards using absorbent technology. The
materials used in the billboards, which wereerected in Italy, are crafted to absorb andbreak down polluting molecules, taking
advantage of the natural movement of
the air as it passes through the fabric.

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Be a goodteammate

GUESS Accessories campaign, fall 2022;
Topanga, California.

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SOCIALABOUT

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SOCIAL INTRODUCTION

People are the backbone of GUESS
From the employees in our offices and in
our stores, our supply chain, and our wider
communities, people are the key to ourshared success.
Supporting this means creating a healthy,
inclusive, and engaged workforce built on afoundation of respect, a place where everyone
can create the best versions of themselves.
Our values don’t stop at our direct workforce;
instead, we are committed to implementing
these values across our supply chain. We createstrong relationships with our suppliers and lookfor ways to give back to the communities that
help make GUESS the brand it is today.

Sustainable Development Goals

Key topics
Supply chain responsibility and labor rights» Read about on pages 34-40

Diversity and inclusion» Read about on pages 41-44

Employee wellbeing and engagement
At GUESS, we are committed to treating our people
well. We do this in many ways. We provide decent
working conditions to our employees and those in
our supply chain, we support diversity and inclusion
regardless of race, gender, religion, disability, or
sexuality. We align our work to SDG 5 Gender
Equality and SDG 8 Decent Work and Economic
Growth standards. Specifically, we hone in on
targets 5.5, 8.5, 8.7, and 8.8 which focus on
ensuring women’s full participation in leadershipand economic life, providing full and decent work toall, eradicating forced labor, protecting labor rights,
and providing safe and secure working environments.

» Read about on pages 45-50

Customer engagement» Read about on pages 51-53

Community investment» Read about on pages 54-55

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SUPPLY CHAIN RESPONSIBILITY AND LABOR RIGHTS

Supply chain
responsibility
At GUESS, we believe that we represent
everyone along our supply chain. From those
who grow and process raw materials, to those
who spin fibers into fabric and manufacture ourclothing and accessories, we are one team with
united values. We have the space to drive positivechange in the fashion industry, and that is bothan opportunity and a responsibility. This is why,as an iconic, global company, we apply ourscale, resources, and expertise to help our
supplier partners implement best-in-classpractices every step of the way.

GUESS manufacturing partner,
Los Angeles, California.

Goals• Publish and update an interactive multi-tiersupply chain map (2025)• Becoming member of best-in-classassociations for social compliance (such as
The Bangladesh Accord and Better Work) toensure all key factories have worker safety
and wellbeing (2025)• Establish training program for GUESS
suppliers in key regions (2023)• Increase factory employee access to trainingsand development opportunities and grievancemechanism (ongoing)• Develop training and development
opportunities to promote positive change
for women (2025)

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SUPPLY CHAIN RESPONSIBILITY AND LABOR RIGHTS continued
GRI 2-6, 407-1, 408-1, 409-1, 414-2, SASB CG-AA-430b.1, CG-AA-430b.2

Supply chain social compliance

Social compliance show-stoppers

Assessed suppliers in FY2023

266

Certifications

Audits32%

68%

GUESS keeps collaboration at the front of its mind,
so when issues of non-compliance occur in the supply
chain, we work with suppliers to support remediationand corrective action. However, when assessments orother interactions show evidence of significant concernsthat cannot be remediated, we do one of two things.
Pending investigation, we either cease work with the
supplier factory, or terminate the onboarding process
for a new supplier.
These critical issues are referred to as showstoppers.
They include:• Use of forced, prison, indentured, or bonded labor,
GUESS audits

External audits

15%

53%

including human trafficking and slavery• Use of child labor• Corporal punishment, mental, or physicaldisciplinary actions• Harassment of workers, including sexual harassment• Discrimination of any kind
• Unsafe working or living conditions• Unpaid workers• Unethical conduct

Top three common issues

HEALTH AND SAFETY
HOURS OF WORKWAGES AND BENEFITS
Suppliers trained

186

Corrective action plan

100%

In FY2022–2023, we did not eliminate any supplierfactories from our supply chain due to show-stopper
non‑compliances.

Our supply chain

With operations spread around the world, GUESS is a truly
global company. A large assortment of our merchandise
is designed at GUESS, then produced by our trusted
suppliers with finished items distributed worldwide.
We source our apparel, bags, accessories, footwear,
and jewelry from our vetted supplier base.
We work both directly with vendors and with the factories
they own, or subcontract work out to.
By building strong relationships with our suppliers, we are
better able to manage sustainability challenges, reducerisk, and support transparency and traceability throughout
our supply chain.
» A list of our key suppliers is available on sustainability.guess.com.

Over the years, the fashion industry has been working
collaboratively to improve working conditions, humanrights, health and safety, and work hours. Together,
we have come a long way, but we are still not finished.
Ongoing improvements, training, and monitoring arestill necessary.
We have always been committed to helping suppliers
implement best practices in safe and fair labor andachieve meaningful improvements in the lives of theirworkers. These commitments illustrate GUESS’
longstanding approach to supply chain responsibility.

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SUPPLY CHAIN RESPONSIBILITY AND LABOR RIGHTS continued
GRI 407-1, 408-1, 409-1, 414-1, 414-2, SASB CG-AA-430b.1, CG-AA-430b.2

Tier levels of the supply chain
Tier 4Tier 3Tier 2Tier 1

Tier 0

By taking a proactive approach, we can help suppliers
recognize their areas for improvement, identify root causesof any non-compliance issues, and build compliancecapacity. To do this, we provide two main types of suppliertraining and education:• One-on-one supplier onboarding training to introduce
Fiber
producers

Yarn
producers

Fabricproducers

Our approach to supply chainsocial responsibility

Our approach to supply chain social responsibility isdriven by our social compliance program. This program
focuses on three specific areas: factory approvals,
supplier training and education, and factory monitoring
and remediation. Our operating guidelines, Supplier Codeof Conduct, and monitoring programs help implement ourprogram. Although cooperation of all suppliers is required,visibility into the daily practices of our suppliers, licensees,and joint ventures can be limited.

Supplier factory approval

To begin our supply chain management process, factories
must first pass through our strict approval processes. This
includes an initial onboarding call and audits, which allow
us to assess compliance and train new suppliers on ourstandards. Depending on the specific geographic risk
factors, additional proof of social, health and safety,
or security compliance may be required.

Garment
producers

Brand andretailers

All suppliers must sign and agree to our Supplier Code of
Conduct. This document details our requirements for fullcompliance with legal requirements, child labor, freedomof association, human rights, health and safety, laborrights, ethics, environmental protection, decent work,
payment, and administration.
» Our Supplier Code of Conduct is publicly available at sustainability.guess.com.

In addition, we require factories to provide evidence of
their social compliance record. To effectively assess afactory’s social performance, we require audit reports andcertificates issued by peer companies, third-party audits
and certification bodies, or multi-stakeholder organizations.

all new suppliers to our social compliance programand our requirements and expectations• Virtual training sessions (since FY2022) focused on

the most common issues from our social complianceassessment program as well as supplier needs
and feedback

As part of our ongoing commitment to increase factory
employee access to trainings and development
opportunities, we launched a new development programat the end of FY2022. This program is Focused, TailorMade, and Effective (FTME). Each FTME training highlights
specific social and environmental topics and was designedwith the ambition of capacity building on a wide scale.

Number oftraining events

Number of
suppliers* trained3

Supplier training and education

186

On a larger scale, educating and training our suppliers is
one of the best practices we can use to reduce risks in our
supply chain.
1

In FY2023, GUESS dramatically increased thenumber of training events across the supply
chain by tripling the events and greatly
expanding audience attendance.

27
FY2022

FY2023

FY2022* Suppliers include both vendors and plants.

FY2023

The first four training events focused on health andsafety topics, working hours, and grievance mechanisms.
To promote increased attendance and accessibility,
we have conducted multiple online versions of the same
training, in multiple languages. This allows our suppliers
to join in from different time zones.
The sessions have been designed to be both informativeand interactive, providing participants with data covering
different topics as well as practical examples of how toaddress challenges typically found in the supply chain.
We will continue to strengthen our FTME training programfor suppliers and plan to organize in-person conferences.
To facilitate collaboration and best practice knowledge
sharing, we will target supplier programs in our major
sourcing countries as soon as possible.

Supplier factory monitoring

Monitoring is an integral part of strengthening our suppliermanagement. We partner with experienced factory
auditors to conduct regular supplier assessments. These
assessments evaluate the factories’ current standing andidentify any areas needing improvement, including bothsocial and environmental issues.
To track performance over time, GUESS collects evidenceof social compliance from the previous two years. On
average, GUESS performs an assessment of each supplier
every 12 months. The 99% and the 98% of new suppliers
were assessed using social criteria in FY2022 andFY2023 respectively.

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APPENDICESSUPPLY CHAIN RESPONSIBILITY AND LABOR RIGHTS continued
GRI 2-25, 2-26, 407-1

Amplifying workers’ voices

We recognize that the people who know our
supply chain best, are the people who work in it.
We are working daily to empower these people
to communicate issues to their Managers and to
GUESS so swift action can be taken.
We are working with external experts to pilot
a new worker engagement program in India,
Bangladesh, and Pakistan. This program aims toestablish a two-way channel of communication
between Managers and workers to discuss andresolve workplace issues.
Another way we are amplifying workers’ voices is bypiloting a digital grievance mechanism platform insupplier factories. This platform will enable workers
to report their grievances safely, and support
factories in resolving these grievances. The platform
will also give us the ability to track remediations inreal time. We will pilot the program following the
deployment of the worker engagement program.
This work will be run in parallel with our existing
programs. Additionally, we manage the confidential
Handshake Workers’ Hotline which we provide to
select China facilities through our ongoing andsuccessful partnership with Inno Community
Development Organization.

GUESS manufacturing partner,
Los Angeles, California.

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ESG REPORT FISCAL YEARS 2022–2023

SUPPLY CHAIN RESPONSIBILITY AND LABOR RIGHTS continued
GRI 407-1, 408-1, 409-1, 414-2, SASB CG-AA-430b.2, SASB CG-AA-430b.3• Hours of work – The GUESS Supplier Code ofSupplier factory assessments conducted
FY2022
FY2023265

266

Supply chain assessment

Supply chain assessments are carried out according tothird‑party standards such as Sedex, BSCI, WRAP, andSA8000 Standards or following the GUESS standard.
In FY2022 92% and in FY2023 90% of the assessments ofour directly sourced suppliers indicated significant, actual,or potential social impacts. We want to be realistic andcautious with these figures and are more interested inensuring that our suppliers have appropriate controls andimprovement programs in place than driving this number
down. 100% of suppliers identified as having significant
actual and potential negative significant social impacts
have agreed improvement plans in place, with 100%
corrective action rate for suppliers’ labor code, other thanshowstoppers which are separately addressed. The threeissues most commonly reported were: health and safety,
hours of work, and wages and benefits, with hours andwages being closely linked. Most issues were related toprocedures and paperwork, as opposed to issues thatthreaten worker safety, compensation, or wellbeing.

• Health and safety – In general, GUESS suppliers

manage health and safety extremely well. They do soby maintaining safe buildings and work environments,
as well as providing workers with appropriate personal
protective equipment (PPE) like masks, metal meshgloves, protective shoes, and hearing protection
where required. As we know that new health andsafety issues may arise from evolving regulation
requirements, we stress the importance of regulartraining to promote understanding and prioritization.

Conduct stipulates that working hours should notexceed 60 hours per week and a maximum of six days
per week, though if local regulations are stricter thensuppliers should follow those. Issues related to working
hours are typically found in countries where our limits
set the standard. When a GUESS supplier is found tohave a working hour non-compliance, we collaborate
with them to understand their workers’ needs. Often,
we learn that workers have asked for more hours toearn more money. To help them address this, we
encourage factory managers to explore additional
options for incentivizing and rewarding workers,emphasizing efficiency and productivity over numberof hours. Improving workspace organization andworkflow can increase factory productivity, whichthen frees up funds to provide workers with premiums
for efficiency, number of pieces finished, and quality.
This approach boosts overall productivity without
reducing income.

• Wages and benefits – When assessments uncovera supplier’s failure to provide 100% of its employeeswith the required benefits, we work with them to set up
an action plan to rectify the issue. We ensure they areaware of the legal requirements to provide the correct
benefits to their employees.

To align with evolving regulations, we update ourrequirements annually (or more often as needed). We
also provide outreach and training to suppliers to makesure they understand and can comply with the newest
requirements. As suppliers adjust their processes, theincreased stringency of new requirements can occasionallylead to non-compliance findings.

% of assessments performed by GUESS auditors and others on directly sourced suppliers
SA80002%
GUESS audits

15%

other third-party
6%

Sedex

30%
FY2023

WRAP

30%

BSCI

17%
other
certification<1%

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SUPPLY CHAIN RESPONSIBILITY AND LABOR RIGHTS continued
GRI 2-25, 308-2, 407-1, 408-1, 409-1, SASB CG-AA-430b.2

Audits and remediation

Our desire is that all GUESS suppliers will elevate theirperformance while meeting our requirements. To facilitate
this, we provide suppliers with an atmosphere of support
and trust in which we help them uncover any problematic
issues, identify root causes, and develop solutions. In thisenvironment, compliance issues can be discussed openly
and remedied collaboratively.
Our remediation process includes root cause analysis,
goal setting, corrective action planning, follow-up, andtraining. In FY2022–2023, 100% of assessed suppliers,
presenting issues, were issued corrective action plans.
This number is notably high, and it reflects our attention
to detail and strict compliance requirements.
Our goal is to improve social and environmental
performances in the supply chain, not necessarily to
reduce the number of corrective action plans. Everycorrective action plan (CAP) issued to a supplier is tailor
made for the unique issues found and reported at thefacility. The timeline for the CAP is decided based on theseverity of the issues found, as well as the feasibility ofresolving the issues in the proposed timeline. We choose toleverage these opportunities to encourage open dialogue
and transparency. We also focus on incident prevention
by improving training frequency and effectiveness andsupporting suppliers in creating better working environments
and management systems.
We endorse the concept of equal partnership, as promotedby the Sustainable Apparel Coalition (SAC). The SAC
focuses on working toward collective goals with respect foreveryone in the supply chain. To further this ideal, GUESS
has partnered with hundreds of suppliers over the years andmonitored about 3,500 factories since our program started.
This helps support continued improvements in both social andlabor practices. Today, our supply chain social complianceprogram has become a significant asset, but there is always
more to do. We are constantly evolving and expanding withnew requirements and training taking place each year.

Protecting workers through responsible sourcing
In addition to improving transparency, training, andoversight in our supply chain, our raw material sourcing
and responsible production policies and initiatives help toprotect workers and communities by encouraging the useof raw materials produced with higher environmental andsocial standards.

» For more, please see our Responsible Cotton Sourcing Policy, GUESS Denim
Water and Chemical Management Policy and Responsible Sourcing Policy
on Manmade Cellulosic Fabrics available on sustainability.guess.com.

Vendor Scorecard (VSC)

Our goal is to build solid and long-term relationships
with our supply chain partners. To support this goal,
we created a scoring mechanism – the VSC – to measure
the performance and effectiveness of all core vendorsthat provide goods to GUESS.
Each vendor and its related sites are regularly evaluatedagainst six pillars. These results are then compared withprevious performance to help identify areas of weakness
and opportunities for improvement. The pillars cover quality,
performance, and ESG topics and include qualitative andquantitative indicators, at both the supplier and site levels.
Our VSC will be updated in the fall of FY2024.

Sustainable Vendor Rating (SVR)

The SVR will be integrated with the VSC to provide acomprehensive assessment of the GUESS supply chain.
The assessment is based on a unique rating system(six tiers) and on a percentage score for the evaluationand improvement of the sustainability performance of the
GUESS supply chain. This enables us to evaluate andprioritize suppliers based on environmental performance.
In FY2023, 82% of new suppliers were screened on
environmental criteria using the SVR tool. This data
encompasses suppliers who failed to provide the necessary
information: these suppliers have been assigned with thelowest rating due to their lack of transparency. In fact, at
GUESS, we consistently prioritize transparency as afundamental value in our partnerships with all business
partners. Hence, we expect all participants in our supply
chain to uphold and embrace this shared value providing
all needed information when required.
The categorization of suppliers into tiers based on theirperformances as captured in the SVR, enables GUESS to
immediately identify any risks in the supply chain related
to environmental sustainability performance that plants
may have. The tiers have been developed taking into
consideration GUESS policies, company requirements, andGUESS ESG Goals. This makes it easy to quickly assess theplants benefits or potential negative impacts based on its
tier level. We also created an ad hoc action plan to be
implemented which aims to mitigate the potential impacts
identified through the tier categorization. We will continue
to work on improving the analysis carried out with the SVR
tool. As the granularity of the data improves, we plan tobegin reporting more details in the upcoming ESG Reports.
Beyond SVR and HIGG FEM assessments, GUESS does
an environmental screening of its suppliers during social
compliance assessments. Major environmental impacts
during these assessments refer to waste management,
mainly in terms of the missing use of authorized contractors,
the missing retention of hazardous waste disposal’srecords and the improper disposal of chemical or solid
waste, and to missing/inadequate environmental
monitoring. Other impacts include the absence/
inadequate environmental permits. The assessments did
not detect any non‑conformities related to discharge of
waste in water supplies. In FY2022–2023, 100% ofassessed suppliers, presenting environmental issues, were
issued corrective action plans. No supplier was terminatedin FY2022-2023 as a result of this assessment.

Regulatory oversight

Although GUESS’ approach to supply chain responsibility
is driven by best practices, it is also increasingly influenced
by ESG regulation.

100%

100%

of suppliers identified as having significant
actual and potential negative social impacts,
have agreed improvement plans in place

100%

100%

corrective action rate for suppliers’ labor code
The GUESS Conflict Mineral Policy supports the requirementsof the Dodd-Frank Wall Street Reform and Consumer
Protection Act on conflict minerals. While GUESS does notsource any conflict minerals and, in most cases, is many tiersremoved from these mining activities, we continue to clearly
articulate our expectations of suppliers on this matter.
Suppliers are strongly encouraged to support industry efforts
to enhance transparency and traceability in the supply chain.
Since 2006, Guess US has conducted security audits of its
overseas factories as part of the Customs-Trade Partnership
Against Terrorism (C-TPAT) program. The audits are
conducted in cooperation with US Customs and Border
Protection, which is an agency of the Department ofHomeland Security, to further improve security measuresthroughout the supply chain.

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SUPPLY CHAIN RESPONSIBILITY AND LABOR RIGHTS continued
GRI 2-6

Total suppliers used in FY2023

375

Europe, Middle East, and Africa

Asia

90+4+6G
Factories by region
4%

GUESS’ directly sourced apparel, jewelry, and accessories by country and units purchased

6%

90%

Asia

North America and Central America
Europe, Middle East, and Africa

We work with our suppliers to meet our highstandards of product quality and safety, as wellas ethical, social and environmental principles.

Country

FY2023China

31%

Bangladesh 29%
India

17%

Pakistan3%

Myanmar2%

Vietnam2%

Indonesia

2%

Sri Lanka

1%

Cambodia

<1%

Other

2%

Country

FY2023Italy

2%

Turkey2%Tunisia2%

North America and Central America

By engaging our partners and cultivating strong
relationships, we help mitigate risks andstrengthen our supply chain.

Country

FY2023

Guatemala3%

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DIVERSITY AND INCLUSION

Celebrating
diversity andinclusion
GUESS is built on the belief that a strongorganization is a diverse and inclusive one.
This is a value that has always been held by the
Marciano brothers, and at GUESS, we always
strive to create a workplace that is fair, where
the culture is inclusive, and where everyone
can be their most authentic selves.
Our rich and vibrant culture is grounded in thevarious backgrounds, attitudes, ideas, andperspectives of our talented and diverse team.
Diversity and inclusion are the cornerstones ofour business and is something that we actively
seek out and promote.
These beliefs are also reflected in ourcommunication with our customers.

GUESS Accessories campaign, spring 2023;
Los Angeles, California.

Goals• Review company marketing and advertisingmaterials and develop plans to ensure diverse
representation (ongoing)• Maintain gender pay parity at all levels andgeographic regions (2025)• 100% of Directors and above trained onharassment prevention in workplace (2025)• 100% of Managers covered with unconscious
bias training (2025)

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DIVERSITY AND INCLUSION continued
GRI 2-25, 2-26, 405-1, 405-2, SASB CG-MR-330a.1

Diversity and inclusion at GUESS

Our expectations to support a diverse and welcoming
workplace are detailed in the Guess?, Inc. Code of Ethics,
and we expect everyone here to promptly report andinvestigate concerns about potential discrimination.
We instituted an open-door policy that fosters honest
and open communication.
To further create a safe workplace, GUESS associates
are encouraged to discuss work-related concerns andissues with their Manager, Department Head, Human
Resources, and Executive Management. Our global
whistleblower hotline allows associates to report concerns
about unethical behavior and other potential conflicts.

D&I Council

Our D&I Council aims to foster a workplace where
employees enjoy a sense of community, belonging,and opportunity for dialogue. This council supports theintegration of D&I throughout the business, focusing
on inclusive leadership, employee training, and a work
environment that promotes growth and opportunity for all.
Since FY2023, we have added six new members to thecouncil. These new members will help to support thecontinuation of the US initiatives which include training
for associates and Managers, community support through
GUESS Foundation and GUESS Cares, greater diversity
in advertising and marketing, training and complianceprograms in our supply chain, and celebrations ofmulticultural and inclusive holidays and other daysof observance.

Gender diversity

Gender diversity remains an important pillar of our beliefs,
and we are working to create greater balance across
categories and regions. Currently, we see that most of
our associate positions are held by women, whereas,
globally, most Executive roles are held by men with aratio of 70% : 30%.

7%

As part of our ongoing commitment to gender pay parity,
GUESS has started monitoring the pay ratio between maleand female employees at corporate and retail levels. We
are continually monitoring pay ratios in all countries where
we have direct operations, excluding Korea and Japan.
For corporate and retail locations, we were very pleased
to see that we have achieved gender pay parity on
average at global level in FY2023.
Given our particular organization and fashion industry
turnover, especially in retail locations, we are aware thatthe spot rate at year end (here represented) may be notfully representative of salary fluctuations occurred during
the fiscal year. As a consequence we consider pay parity
a ratio of 100% +/-10%.

7%

19%

Gender pay parity

GUESS believes that everyone should be compensatedfairly for their work, regardless of gender or any otherfactors. We care about our people through action, andgender pay parity is one way we are working to show that.
This is the right thing to do, but it’s also the most effective
way to ensure that our employees are motivated, engaged,
and committed to achieving our company’s goals.

67+26+7K 74+19+7K

MANAGEMENT AND NON-MANAGEMENT BY GENDER*

26%

Management
Managers and above
including Executives

Other employees

67%

74%

FemaleMale

Not declared

RATIO OF BASIC SALARY BREAKDOWN BY GENDER BY EMPLOYEE CATEGORY (WOMEN TO MEN)
Corporate (Global)

Retail (Global)
97%

At the same time the European D&I Council is in theprocess of being relaunched, in order to foster greater
representation throughout the region. The Council will also
aim to redefine the D&I strategic priorities to be in line withthe evolution of the organization over the past years.

*	All Global retail and corporate employees as of end of FY2023.

98%

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DIVERSITY AND INCLUSION continued
SASB CG-MR-330a.1

Ethnic diversity• Umoja Center – A collaborative of community-driven

With the growing focus on ethnic diversity, we have
expanded the scope of ethnicity tracking in our US
operations. This allows us to make informed decisions
when developing initiatives that can best address theneeds of our employees. Whether it’s providing culturally
specified training materials or creating specific employee
development programs for underrepresented groups,
we are pleased that these initiatives are contributing
to a more diverse workforce as a whole.

BIPOC community relationships

Another way we implement our focus on diversity isthrough the GUESS Foundation. Starting in FY2021, we
committed to donate one million dollars to inspirational
and impactful non-profits that promote art, culture,
education, empowerment, and wellness within the Blackand African American communities. This year, the GUESSFoundation’s donations will continue helping fund thefollowing programs:

non-profits and initiatives that work toward community
education, housing stability, cultural programming,and economic empowerment. The GUESS Foundation’s
donation has supported the Mutual Aid Produce andVegan Hot Meal giveaways, as well as the Center’sannual rent and maintenance needs.

• The World Stage – An educational and performing

arts center that hosts weekly workshops and concerts
for musicians of all ages and skill levels. The GUESSFoundation’s donation has supported the purchase ofmusical instruments for TWS’ jazz band classes, fundedmonthly live performances, and covered rent andbuilding costs.

• Black Girls Smile – Funding will support the Therapy

Assistance Program, which alleviates the burden of
seeking therapy for Black women and girls. The programprovides financial support for therapy sessions with
culturally, racially, and gender-sensitive mental
health professionals.

• National Black Child Development Institute– Funding will support childhood education andliteracy programs. NBCDI has been developing
and delivering strengths-based, culturally relevant,evidence-based, and trauma-informed resources that
respond to the unique strengths and needs of Blackchildren around issues including early childhood
education, health and wellness, literacy, andfamily engagement.

Integrating D&I into HR processes and tools
During FY2022–2023, we continued to review andupdate human resource tools to support diversity andinclusion. These initiatives included:• Job descriptions – We revised the language in• Performance appraisals – Performance appraisals
now include questions on what associates have done
to encourage and integrate diverse ideas into thecompany culture.

• Health benefits – We clarified the language in our

benefits plans to better describe our coverage of
gender transition services. These benefits have been
available to our associates for years, but they are now
more clearly defined and communicated, which helps
to normalize this topic.

• FIDM student scholarship – We revised ourscholarship information to be more inclusive andwelcoming to all applicants and to support recruitmentof underrepresented groups.

our job descriptions to ensure that it’s inclusive, reflects
our diverse brand, and emphasizes our commitment todiversity and inclusion.

23++0469K 0+19
0+23
19++92813904K 1+4185405K

RACIAL/ETHNIC GROUP REPRESENTATION OF U.S. EMPLOYEES BY CATEGORY
4%

5% 1% 4%

4%

19%

23%

39%

Executives

69%

9%

Corporate

4%

1%

18%

28%

18%

Retail54%

Indigenous American/Alaska Native
AsianBlack or African American
Hispanic or Latinx
Native Hawaiian/Pacific IslanderWhite
Two or more races

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DIVERSITY AND INCLUSION continued
SASB CG-MR-330a.1

D&I training

Creating a culture where everyone is welcome requires
engagement and education. To do this, we have facilitateda variety of events to promote the inclusion of marginalizedgroups, support differing communication styles, and share
the benefits of diversity in our business.

Expert-led Training

Several members of the D&I Council completed a six-partvirtual diversity and inclusion training program with
Cornell University. We have also made additional training
programs available to all associates.
A first set of D&I and wellbeing dedicated Training has
been launched through the “Design your knowledge”
platform, a repository that is addressed to all countries in
Europe, with all courses’ localization in local languages.
Among the main trainings available on theplatform we launched:Wellbeing• Bye-bye burnout• Mind your Brain• Oh yess, it’s stressCommunication• Writing emails• Cultural diversity
Personal strength• Curb your bias
• Mindfulness• Confronting bullying and harassment

GUESS Developmental Series

We value that our employees and customers are endlessly
diverse. Our GUESS Family spans nationalities, cultures,and even generations. In FY2023, we launched our GUESS
Developmental Series to supplement our D&I trainings. The
goal of this series is to help our employees to communicate
and relate to one another more effectively. We covered
topics such as email etiquette, inclusive language,
engagement, and meeting inclusivity.

Courageous Conversations

Our FY2023 Courageous Conversations panel discussions
aimed to create a safe environment for like-minded
individuals to speak on topics such as Women of GUESS,
Mental Health Awareness, and How to Celebrate Pride.
The conversations included external experts as well as ourbrilliant associates. Asking thought-provoking questions
around the stigma of mental health, the fashion industry’srole in normalizing diverse understandings of what itmeans to be a “woman” and the meaning of pride, thediscussions help promote inclusivity and give visibility tomarginalized groups.

Mandatory Cornerstone training

In FY2023, we launched two new D&I training sessions,which were mandatory for employees in the US. With
separate trainings for both Managers and employees,these sessions provided each group with an introduction to
D&I as well as microlearning modules assessed through ourLearning Management System. We are planning to create
additional mandatory D&I curriculums through Cornerstone.

Gyrl Wonder Conference

Our partner since FY2021, this past year, Gyrl Wonder
hosted its inaugural #gyrlgethired conference in New York
City which featured women of color in leadership roles
sharing how they built their careers. The #gyrlgethired
conference also provided attendees with compelling panel
discussions spotlighting participants from GUESS,
BuzzFeed, Dior, Bunim and Murray, and Gyrl Wonder.
The World Stage (Los Angeles HQ).

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EMPLOYEE WELLBEING AND ENGAGEMENT

Empowering
our teams
Everything we do comes back to our people
and our values. For GUESS, it has always been
about hope, belief, creativity, and excellence.
These are values we hold dear, values that guideour decision making and propel our businesses.
These are the values that help us to gather a teamof talented creatives that build our brand andenrich the GUESS Family.
Our teams are the ultimate priority, and weempower them to build long-lasting and rewarding
careers at GUESS. With utmost respect for theindividuals we employ, we provide our teams
with opportunities and training to achieve theirindividual goals. From early career development
opportunities to valuable leadership skills,
we encourage our associates throughout
their careers with resources that support theirwellbeing and their individual beliefs.

GUESS Wears Pink
(Lugano, Switzerland HQ).

Goals
• All associates will be sustainability literate(2025)• Expand wellness and mental health programs
for all employees (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)

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EMPLOYEE WELLBEING AND ENGAGEMENT continued
GRI 404-2

Employee benefits

When we hire someone, we take on the responsibility of
supporting that employee, and part of that support isensuring their access to benefits. Benefits are an importantpart of attracting and retaining talent. Across our corporate
and retail teams, we ensure that each employee receives
appropriate rest and vacation time, as well as bespoke
benefits depending on location such as health care, parental
leave, employee discounts, and retirement provision.
In the US, we offer a variety of benefits to both full-timeand eligible part-time associates. These benefits include
medical, dental, and vision coverage, flexible spending
accounts, retirement savings plans, and in some cases,
bonus and associate stock purchasing plans. Additionally,
we offer life and accident insurance, disability coverage,
and associate assistance programs.
In Canada, Europe, and China, benefits are country
or province specific and include health care, life, anddisability insurance, and critical illness coverage, among
others. In Korea, benefits include coverage of medical
checkups, national pension, employment insurance, workers’
compensation insurance, and a retirement gratuity system.
To help support employees on their paths beyond GUESS,
we offer vital transition assistance programs. These varyby country but are provided to facilitate continued
employability and the management of career endings
resulting from retirement or termination of employment.
Typically, services are available only to direct employees
and can include pre-retirement planning for intended
retirees, retraining for those intending to continue working,severance pay, and assistance (such as training, andcounseling) on transitioning to a non-working life.

Over 80% of retail and distribution center
employees earn over minimum wage.

Health and wellbeing

At GUESS, the safety and wellbeing of our associates is
a top priority, and we recognize that mental and social
wellbeing are as essential to overall health as physicalwellbeing. Today, mental health issues are among the top
workplace issues in the US, with one in five Americans
impacted by mental illness during their lifetimes. We haveall endured and continue to experience a time of
unprecedented challenges and uncertainty. We believethat by supporting mental and physical wellbeing, we cando our part to create a positive work environment for all.
Guess US offers an incentive-based wellness program
aimed at supporting associates to achieve their personal
physical and mental wellness goals. This platform offersa variety of on and offsite activities where associates canearn points for health-related activities like gym visits,
nutrition seminars, meditation classes, and biometricscreenings. Time can often be our biggest adversary,
so we provide employees with time and space throughdedicated walking groups, a convenient gym at our
campus headquarters, and classes like cycling and yoga.

Supporting our associates during the pandemic
Our commitment to the health and wellbeing of ourassociates has never been as important as during the
pandemic. We created a global COVID-19 Emergency
Response Committee that has been working to shareresources around remote working and health and safety.

To support colleagues, we have continued to offer ourhealth and safety hotline, made available 24/7. We also
expanded our regular health and safety email series tocover overall wellness and self care tips.
In our distribution centers, we have taken additional
precautions to ensure safe working conditions and mitigate
the risk of large outbreaks, including staggered scheduling.
GUESS Halloween costumecompetition (Los Angeles HQ).

Employee recognition

We believe in celebrating the successes and achievements of ouremployees, and we recognize the hard work they put in on adaily basis.
We show employee recognition in many ways. Every month, the
GUESS Management teams share emails thanking employees fortheir efforts. When a team member has a work anniversary, we taketime to individually thank them for their dedication to the company.
We also run a monthly recognition program to provide space forcolleagues to show gratitude to one another. Employees can send
appreciation cards to their colleagues to thank them for their role
on a project, task, or team, and as part of the thank you, colleagues
are entered into a monthly raffle with a chance to win a prize.

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EMPLOYEE WELLBEING AND ENGAGEMENT continued
GRI 404-2

Health and wellbeing continued
Mental health training

To educate our associates on mental health, we partnerwith experts in the field to offer our employees data andsupport to help educate them about their own wellbeing
and the wellbeing of their colleagues.
In FY2023, we were proud to partner with Project Healthy
Minds and the National Network of Depression Centers tooffer specialized trainings for employees that provide themwith tools to address mental health problems and support
colleagues who may be struggling. Project Healthy Minds
seeks to destigmatize mental health by creating campaigns
with celebrities, hosting panels and events, and partneringwith brands.
Guess US established a wellness program in FY2023 tohelp raise awareness and understanding of mental healthand wellbeing. This program was comprised of panels,
workshops, and various training for employees. At theheart of our wellness program is the Wellness Wednesday’sseries, which hosts external speakers such as licensed
therapists, psychologists, and life coaches to discuss topics
including emotional intelligence and coping skills, burnout,
grief, and sourcing professional help.

Employee training and development

Our e-learning platform, MyAcademy, enables employees
to access these trainings no matter where they are based.
In FY2023 we were excited to launch our new
development tool, GES Conversations (Growth,Engagement, Satisfaction), aimed at field employees in
the US. This tool will be used to help focus and support
individual performance. We also offer a wide rangeof training for corporate employees including:• Management Development Program – During

FY2022–2023, 49 US Managers and 100 EU HQManagers participated in this six-month development
program, which supports essential leadership skills,
including basic management, effective communication,delegation, conflict resolution, and coaching.

• Coaching and assessment (EMEA) – We provide

coaching sessions to enable associates to unlock theirfull potential, maximizing their performance level andpersonal growth.

• Performance management (EMEA) – We provide

trainings for Managers to support their teams to reach
their goals.

• Design Your Knowledge (EMEA) – We provide a

catalog of nearly 100 online training courses focusedon personal development.

At GUESS, we are dedicated to supporting the growthand development of our associates by providing a diverse
range of training and development opportunities.
We offer customized training for associates in each region,
supporting their operations and career advancement goals
no matter their career stage. These trainings come in avariety of formats including classroom courses, e-learning,
external seminars, and virtual training.

GUESS Community panel discussion on gender equality(Lugano, Switzerland HQ).

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GRI 404-2

Employee training and development
continued

We also offer a variety of training for retail employees
including:• Future Leaders Program (US) – Aims to develop

high-potential sales associates for succession into
management. In FY2022-2023, 47% of those who
participated in the Future Leaders Program received
a promotion.

• Product Knowledge trainings – Provides knowledgeof GUESS products to field teams to support them inbecoming brand ambassadors and personal stylists.

• The Master Class (US) – A monthly training series on
different topics including growth mindset, goal setting,loyalty, hiring, product knowledge, scheduling, newfield training initiatives, and other topics of interest to
our employees in the field. Masterclass training topics
were reinforced through monthly Managers’ meetings
to turn concepts into actions in each store.
We provided valuable, real world work
experience to 54 interns at our Los Angeles
corporate head office in FY2023.

Developing young talent

We are always on the hunt for talent from the next
generation, and that search begins with our internshipprogram. GUESS runs a 10-week, full-time internshipexperience in the US as well as an apprenticeship programin Europe.
Our US internship program is designed to be experiential,
aimed at providing interns with valuable, real world
experience. In FY2023, our interns participated in avariety of activities including discussion panels, a visit to
the Marciano Art Foundation, and teachings about
operations at our flagship store. We also hosted special
career development workshops where recruiters helped
review participating interns’ resumes. In total, we hosted
54 interns across multiple departments including
Advertising, Buying/Planning/Allocation, Customer Care,
Design, Finance, Marketing, Merchandising, E-commerce,Internal Audit, Sustainability, Licensing, Field Operations,
MIS, Wholesale, and Supply Chain.
In Europe, we have continued to develop our apprenticeshipprogram aimed at Business School students in Ticino.
The apprenticeship is three years, and it helps support the
integration of potential future associates into the company
by facilitating structured rotations between departments
including HR, Accounting, Logistics, Customer Service,and Marketing.

GUESS summer 2022 internship program(Los Angeles HQ).

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EMPLOYEE WELLBEING AND ENGAGEMENT continued

Employee engagement

Employee engagement is an essential part of workplacesatisfaction. Throughout the last year, we have hosted
various events to help bring employees together andcelebrate the diversity of our business.

• Celebrating Mother’s Day and Family Day– To recognize the value in the diversity of colleagues’
families, we asked associates with children fromacross the business to share their experiences asworking parents. In turn, they recorded videos whichwere then edited and shared on our social media.

• Recognizing European Day of Languages – As a

global company, GUESS has talent across the world,
speaking multiple different languages. In celebrationof this diversity, we asked colleagues to share whatworking at GUESS means to them, with answers
submitted in their native languages.

Our GUESS Community program in the EU helps bringassociates together to work towards a common goal thatwill positively impact their lives and society. Through the
GUESS Community program, we hosted several events to
help support mental and physical health and wellbeing,with themes including mental health, gratitude, genderequality, and the environment. We brought in expert
speakers to take part in panel discussions and hosted
forums for community experience sharing.

Sustainability employee engagement

One of the best ways we encourage sustainability isthrough the products we sell. By educating store associates
on the sustainability features of our GUESS ECO andConsciously Constructed merchandise, we can help drive
impact on a wider scale through our customers.

• Hosting fun Halloween activities – In both our

When it comes to corporate and retail training programs,
product knowledge training is a valuable tool. These
trainings include videos, courses on MyAcademy,
information on the sustainability credentials of GUESS
products, and the sustainable technologies and production
processes we use.

• Farmers’ market and bingo – In the US, we held

The MyAcademy platform is available for EMEA
employees and includes trainings on animal welfare,our supply chain practices, and recycling.

European and US HQs, we ran a Halloween costumecompetition across different departments. Colleagues
voted on the most creative, and the winners received
a free breakfast or a GUESS gift card.
a several in-person events focused on bringing ourcolleagues together in an interactive way to support
charities and small business owners. These events
included farmers’ market and annual pride-themed
bingo.

Building on the above, we have executed several events
through GUESS Fun, an initiative from our European HQ thatorganizes activities that create a sense of belonging andcommunity for teams across the company. Thanks to GUESSFun, a cooperation group has been created to channel
and organize activities ranging from contests and raffles,to sporting activities such as skiing, volleyball, and football.

Additional training and informative webinars havebeen organized and developed in collaboration with
the Sustainability and ESG team to support a deeper
understanding of sustainability across the business,with a particular focus on sustainability reporting.

GUESS ECO Men’s Upcycle Event,November 2022; Throw Clay L.A.

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EMPLOYEE WELLBEING AND ENGAGEMENT continued

Volunteering and fundraising• Creating spaces for children – Members of ourinternship program built playhouses for families withthe organization Habitat for Humanity.

The commitment to “continue to give back to the community,
support humanity, and protect the environment” isembedded in our mission statement. We are always
looking for ways to increase engagement in thecommunities in which we work and live.

• Supporting children’s learning – We provided

Our approach is driven by our GUESS Cares program,an employee-led philanthropic initiative. We are proud
to host at least one GUESS Cares event or volunteering
opportunity every month.

• GUESS Wears Pink – As part of Breast Cancer

Volunteering activities

Over the last year, GUESS associates have supported various
initiatives benefiting victims of natural disasters, breast cancer
research, pediatric cancer research, children’s charities,
veterans’ organizations, animal rescue, and more.
Volunteering and fundraising highlights from FY2022–
2023 include:• Fundraising for refugees – Associates from our

GUESS Poland office came together to raise funds tobuy supplies for refugees affected by the war in Ukraine.

• Tree planting – Guess US donated 5,415 trees,

one for every North American corporate and retail
employee, to be planted in areas affected by forest
fires in California and British Columbia. Trees wereplanted by One Tree Planted in partnership with
GUESS Foundation.

5,415

back-to-school supplies, including 200 backpacks,
for children in multiple Youth Activity Leagues throughthe Sheriff’s Youth Foundation.
Awareness Month, colleagues in the US bought t-shirts
to support the donation to Breast Cancer Angels. At thesame time, our employees from other global offices
came to work wearing pink to demonstrate support forbreast cancer survivors.

• Employee wellness – We have held wellness

workshops through the GUESS Cares program,
aimed at supporting the mental and physicalwellbeing of our own employees.

Holiday extravaganza

To celebrate the cheer of the holiday season, our GUESS
offices put on various activities and events. In the US,
employees were invited to a Holiday Mingle and Jingle
celebration with food, drinks, a raffle, and an ugly sweater
competition. The D&I team also coordinated a Holiday
Farmers’ Market where employees could shop in supportof small businesses.
Similar celebrations took place in Switzerland, with a
Christmas market being held at our headquarters. We also
ran a raffle to raise money for our charity partners andhad a friendly competition for the best decorated
office department.

trees donated in California
and British Columbia

GUESS Wears Pink (Los Angeles HQ).

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CUSTOMER ENGAGEMENTEngaging ourcustomers

Commitment• Deliver iconic designs made with
uncompromising quality backed by
exceptional customer service and acommitment to customer safety
and sustainability

Everything we do is about our people, and ourcustomers are an integral part of our GUESSFamily. From the Marciano brothers and the 3-Zip
Marilyn jean in 1981, to becoming an iconic
lifestyle global brand, customers have always
been at the center of what we do.
Creating positive customer interactions isimperative to the health and success of ourbusiness. We work tirelessly to deliver customers
an enjoyable and seamless shopping experience,in store, online, and on our mobile app. Whether
fashion tastes lean towards sophisticated, trendy,
streetwear, or vintage, our customers can choose
from designs that provide uncompromising quality
and flawless finishes with a commitment tocustomer safety and sustainability.
While customer engagement did not appear
as a priority topic in our materiality assessment,
we want to recognize the steps we are taking to
act responsibly and build this vital relationship.

GUESS campaign, summer 2023; Tenerife, Spain.
Dress is made of recycled nylon.

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APPENDICES

Talking to customers about sustainability

Eco events

ESG REPORT FISCAL YEARS 2022–2023

CUSTOMER ENGAGEMENT continued

Sustainability is becoming a bigger part of consumers’purchasing decisions. We want to help them make choicesthat support their values and use our platform to engage
consumers on sustainability.
We use product labels to communicate directly with ourcustomers on product features.
Our GUESS ECO jeans include pocket flashers made ofrecycled paper that explain the fabric benefits including
things like water-saving production methods and the useof responsible manmade cellulosic fibers. Other identifiers
used include sewn-in, embroidered, or printed labelingto display more sustainable products. For our eco jewelrycollections, we include a label on the 100% recycled
polyester pouch and insert a Forest Stewardship Council(FSC) certified card to confirm the use of recycledmaterials in the jewelry itself.

Circular initiatives

A big part of talking to customers about sustainability is
encouraging them to make more sustainable purchasing
decisions. One way we do this is by encouraging customers
to bring in their old clothing for recycling. RESOURCED,
our clothing takeback program, is located in all North
American stores and select stores in Austria and Germany,with further expansion planned. Our GUESS vintage line
promotes product buy-back and resale, allowing
customers to support circular fashion while enjoyingclassic GUESS looks.

Each year, we hold eco events with influencers and thepress to help engage our customers on sustainability
topics. Events have included educational talks on our eco
materials and processes, a beach clean-up, sessions on
zero-waste cooking, making herbal teas, and creating
clay pots. We also celebrated the launch of our latest
GUESS ECO collection with a terrarium building workshop.
Sample events from across Europe include:
Ocean Generation, London, UK• To celebrate the GUESS ECO Kids collection, we
created an artificial “beach clean” made from sandpits
with hidden “rubbish”. Children were guided throughthe sandpits to search, and collect the rubbish and weretreated to an educational talk by Ocean Generation on
the importance of protecting our oceans and beaches.
Upcycling workshop, Munich, Germany• We held a sustainability brunch in Munich with 15

influencers and friends and learned about different
ways to upcycle and recycle fashion. The workshop
was hosted in conjunction with THE RENEWERY, ayoung Munich-based fashion business, that upcycles
vintage clothes.

GUESS ECO: Gift with purchase

To shine a light on our brand eco collection, GUESS
recently established the Gift with purchase campaign
where customers receive a gift when they purchase an itemfrom our GUESS ECO range. In previous years, we haveoffered a reusable cotton bag or mug, and last year wewere able to give customers a code to have a tree planted
through the “Be(leaf) in Change” Treedom project.
Customers were also able to use the code to see where
the tree was planted and follow its life.

GUESS Upcycle Collection Event, April 2022:
Conservatory, West Hollywood, CA.

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CUSTOMER ENGAGEMENT continued

Customer satisfaction

Customer satisfaction and customer feedback have always
been vital to us, so we continue to create more channels forcustomers to easily engage with us at their convenience.
These channels include:• GUESS Customer Care – Here customers can submit
comments through our OpinionLab software on our
website, request a call back, or chat with us online.

• GUESS Loyalty Program – Through multiple channels,
we engage and update customers on the latest events,
products, and services, as well as rewarding customers
with points for purchases. Our Loyalty Program isindustry benchmarked and internally audited to ensure
we provide best-in-class experiences.

• GUESS mobile app – US customers can chat with astylist while shopping, receive personal recommendations,
track orders, become a member of the GUESS Loyalty
Program, and talk to a customer care representative.

Product quality testing

Product safety and quality is an important part of ourinteractions with consumers. We have stringent quality
and safety controls in place throughout our operations
and supply chain. As part of our quality control program,
we conduct quality, health and safety inspections for all
product styles throughout the supply chain: from raw
materials and prototype testing to contractor
manufacturing and distribution centers. We perform
random, in-line quality control checks during and after
production, as well as before distribution. This strict
protocol not only maintains the high quality and reputationof our products, but ensures the safety and satisfaction of
our customers. For all our merchandise, we ask all vendors
to provide quality tests regarding raw materials,
embellishments and the final product, all in accordancewith applicable regulations and our LRSM. For more
about safer chemicals in our supply chain, see page 28.

• Social media – Here our customers can connect

directly with the brand, provide feedback, and engage
with the GUESS community.

• Retail and pop-up events – We select stores toshowcase product releases, special initiatives, andnew partnerships.

• PR events – GUESS PR hosts events for local key

opinion leaders and influencers to build awarenessand provide education around product releases andspecial initiatives. GUESS influencers have the ability
to expand the brand’s reach through their social media
followings and influence potential new customers as
representatives of the company.
Since 2019, our Customer Care Better
Business Bureau rating has consistently
remained at an A+.

Product compliance

At GUESS we are committed to providing high-quality
apparel while ensuring compliance with all relevant
regulations and industry standards. We diligently monitor
and comply with all applicable laws, regulations, anddirectives related to the manufacturing, distribution,and sale of apparel in every region in which we operate.
This includes, but is not limited to, regulations concerning
safety, labeling, chemical restrictions, and productperformance standards. It is important to note that
GUESS has had no critical compliance issues over the
past two years. Occasionally, there have been issues
related to state or local requirements. If there is anyquestion related to compliance, we address the issue
and immediately recall the product. We continuously
strive to improve our processes and maintain thehighest level of product compliance to safeguard thetrust our customers place in us.

In the past year, we have enhanced
our online shopping experience forcustomers. Using only relevant data, weare elevating our customers’ experience,
while giving them greater control overthat data. See page 62 for more details.

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COMMUNITY INVESTMENT

Supporting
communities

Commitment• Our mission commits us to “give back to thecommunity, support humanity, and protect theenvironment as part of our responsibility”

Our commitment to giving back to ourcommunities is embedded in our mission
statement, and we do this by partnering withand supporting organizations that foster positivesocial change, development, and wellbeing.
During FY2022–2023, we honored thiscommitment by supporting various projects andthe people behind them that are transforming
our communities every day.
Over the course of this time frame, GUESSFoundation donated to over 40 non-profits while
GUESS Cares supported close to 50 organizations.
These contributions included clothing donations tocenters for homeless youth and for communities
near our LA HQ, volunteer events at low income
community centers, and employee led drives tocollect necessities such as apparel, computers,
toys, and food to support these organizations.
In addition to our charitable donations, both in
the US and in Europe, we are always looking forways to increase effective engagement in our local
communities. Because after all, we are all connected.
While community investment did not appear as apriority topic in our materiality assessment, werecognize the value this brings to communities,
employees and other stakeholders.

GUESS Cares x Alex’s Lemonade Stand (Los Angeles HQ).

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GUESS Foundation

The mission of the GUESS Foundation is to pursue social,health, and educational opportunities that enhance thewellbeing, development, and protection, of men, women,
and children in our global environment.
Founded in 1994, the GUESS Foundation supports a wide
range of causes whose messages promote social change.
In FY2023, we donated to the Children’s Burn Foundation,
the Los Angeles Children’s Hospital, the Crenshaw Subway
Coalition, the Los Angeles Regional Food Bank, the World
Stage Performance Gallery, Violence Intervention
Program-Community, the Tower Cancer Research
Foundation, and many more!
Through the Foundation, we have also been able tosupport our local communities hit by natural disasters andother hardships by sending product donations to those in
need. Thousands of pieces of apparel and footwear weresent to organizations like Shelter Partnerships, Safe Placefor Youth, LA LGBT Center, Jordan Down’s Center, Sheriff’s
Youth Foundation, and the Global Gift Foundation.

GUESS Foundations in Europe

The Fondazione GUESS Onlus was established in
October 2014 by the Italian subsidiary of the GUESSGroup. It represents the natural evolution of thephilanthropic spirit that has always characterized
GUESS, with a view to best directing resources andorganizing activities that align with our vision.
Among the organizations and initiatives supported
by GUESS in Europe during FY2022–2023 are:

• The Associazione Fiorenzo Fratini Onlus oversees
charitable projects in Italy and abroad. Through thischarity we supported the donation of a portableechocardiograph to help children with rheumatic
disease in Eritrea, and the donation of a transportincubator to the Meyer Children’s Hospitalin Florence, Italy.

• The IEO-Monzino Foundation to support theFollow the Pink program, which aims to raise awarenessof the importance of prevention and early diagnosisof cancers and support the European Institute of
Oncology’s research on tumors affecting women.

• The Ocean Generation, an inclusive global

movement advocating and engaging people to nurturea more sustainable relationship between humanity andthe ocean. Our donations helped support the Project
Ocean Academy, which aims to bring the ocean intoclassrooms for a new generation of children andprovide open-source material about the ocean andhow to protect it.

Jordan Down’s Center.

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ENVIRONMENTSOCIALGet
thingsdone
GUESS Kids campaign, spring 2023; Los Angeles, California.
Outfits contain organic cotton.

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GOVERNANCE

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GOVERNANCE INTRODUCTION

Honesty, integrity, and strong governance
The GUESS brand is built on the foundation ofhonesty, integrity, and strong governance acrossour supply chain and operations. We see ourcompany as a team. From the supply chain to ourstores, our GUESS Family is built on good values
and support.
To ensure the success of the GUESS brand, we
have to implement the right structures so we cangrow and evolve. We evaluate our performancethroughout the supply chain, collaborating withpartners and reporting on our achievements –and mistakes – openly and transparently. Building
trust and respect with all those we work with isessential to the way we do business. This allows
us to build lasting and mutually rewarding
relationships with our associates, suppliers,and partners.

Sustainable Development Goals

Key topics
Governance and business ethics» Read about on pages 58-61

Responsible marketing» Read about on page 62

Data security and privacy
We believe in strong governance to manage
our impacts robustly and embed accountability into
our business, while working with others to amplify
our efforts. We align our work to SDG 16 Peace,
Justice and Strong Institutions and SDG 17
Partnerships for the Goals, and specificallytarget 16.6 to develop effective, accountable,
and transparent institutions at all levels, and 17.16
to take part in multi-stakeholder partnershipsthat mobilize and share knowledge, expertise,technology, and financial resources, to support
the achievement of the SDGs.

» Read about on pages 63-64

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GOVERNANCE AND BUSINESS ETHICS
GRI 2-9, 2-13

ESG
governance
Our Sustainability and ESG team works toensure that environmental and social responsibility
is at the forefront of our decision making. Our
global Sustainability and ESG team is made up
of Directors and Senior Managers in the US,
Europe, and Asia. This team reports to ourVice President of Internal Audit and ESG, who
administratively reports to our Chief Executive
Officer and directly reports to the Board of
Directors’ Audit Committee.
This chain of command ensures that those
involved in internal auditing and sustainability
performance have a direct line of communication
with the Board of Directors. By doing this, weelevate the importance of ESG company wide
and allow for additional independence among
our Internal Audit and Sustainability and ESG
team. This structure strengthens our approachand the integrity of our data.

When it comes to ESG priorities there are several moving
parts to ensure continued progress. ESG issues are coveredby the GUESS Nominating and Governance Committee
Charter, which is the leading supervisory body on ESG
topics. Providing the Board with valuable intel, the charter
helps determine ongoing ESG Strategies and Directives.
ESG topics are discussed in detail annually and at Board
meetings, as deemed necessary.
The CEO meets with our Vice President of Internal Audit
and ESG quarterly, or as needed to stay informed about
ESG Strategy, reporting, climate-related, and othersustainability activities within the organization.

GUESS’ wider corporate governance structure takes amore holistic approach to ensure global accountability
and engagement on ESG issues. With our Vice Presidentof Internal Audit and ESG reporting administratively to theChief Executive Officer, we ensure high-level oversight on
all ESG-related commitments to drive successful execution
and monitoring. With the support of internal stakeholders,
this top-down approach helps to ensure deep integrationof ESG across our global footprint.
» GUESS’ general approach to corporate governance is publicly available
on our investor relations website at investors.guess.com.

Additionally, our Sustainability Steering Committee
reviews plans and monitors progress against our ESG
Commitments and Goals. The Committee meets onceor twice a year as needed, led by our Chief Executive
Officer, along with our Chief Financial Officer andour global Executive leadership teams.

Sustainability governance
Board of Directors

Audit Committee

Sustainability Steering Committee

Goals• Align Executive performance incentives
with ESG KPI performance (2024)• Continuously improve GUESS
Sustainability Assurance Framework
to maintain the highest standards
for ESG data quality (ongoing)• Continue to obtain “reasonableassurance” of our key ESG metrics
and disclosures (ongoing)• Move to annual ESG reporting
starting FY2026 (2025)

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GOVERNANCE AND BUSINESS ETHICS continued
GRI 2-13, 2-16

ESG risk management

As part of our sustainability assessment this year, we
conducted a double materiality assessment to identify our
ESG impacts, risks and opportunities through an integrated
approach. We are in the process of incorporating ESG
into our enterprise risk management framework and willconsider the results of our double materiality assessment
for future reporting periods.

Code of Ethics

Throughout our global operations, we conduct ourbusiness in accordance with the highest ethical standards.
All employees – from Executives to associates – are held
to our Code of Ethics. The Code guides every facet of ourbusiness, including how we operate both internally andexternally with suppliers and business partners, with minor
regional differences.

ESG priorities and Executive compensation

At GUESS, protecting the planet and caring for our people
remain a top priority, and one of the ways we do that is
by implementing environmental, social, and governance(ESG) standards. These standards show evidence of ourcommitment to safeguard the environment, fairly manage
relationships, and conduct responsible governance. As
years have passed, we have seen the increasing demand
to integrate ESG criteria into reporting, performance
evaluation, governance, and oversight. In FY2022, we set
the goal to incorporate ESG criteria into our Executive
incentive structure. With the continuing COVID-19 pandemic
and the challenges businesses have faced, we have yet
to meet this goal entirely. Heading into FY2024, we arereestablishing our strong commitment to integrating ESG
criteria into our Executive performance incentives.

All new associates must read and engage with the Codeof Ethics, incorporating it into every task and interaction.
It clearly states our expectations on topics such as
personal responsibility, conflicts of interest, confidentiality,
treatment of employees, and many others. Our Code of
Ethics emphasizes a standard of ethical conduct thatmust permeate all business dealings and relationships.

GUESS Europe corporate headquarters, Lugano, Switzerland.

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GOVERNANCE AND BUSINESS ETHICS continued
GRI 2-5

Accurate, comparable,
and consistent

Our ESG Report is more than just a way for us
to share our sustainability journey with our
stakeholders. More than anything, it’s a way todemonstrate our continued commitment to create
a positive impact on our environment and society.
To ensure continued progress in sustainability, we
strive to use data that is accurate, comparable,
and consistent.
While Transparency and verification did notappear as a priority topic in our materiality
assessment, we want to highlight the robust
processes we have in place to reassure
stakeholders and build confidence in our
ESG Reporting.

GUESS ESG Controlling

A roadmap for the full integration of ESG programsin a comprehensive ESG governance system is very
complex and requires continuous efforts to set targets,measure progress, and report to stakeholders. While
ESG metrics are data intensive and judgment oriented,
there are expectations for a higher degree of reliability,
an acceleration of ESG Reporting processes, and theimplementation of effective governance andinternal controls.
To meet stakeholder and regulatory demands, we havecreated a new ESG Global Controlling function, with amandate to establish internal controls and reporting
structures, set benchmarks and goals, and develop
processes to provide robust reporting to our stakeholders,
including regulatory bodies.
The role of the ESG Global Controlling function is toestablish business requirements aligned with expectations,develop measurement and reporting policies, ensureinternal control and governance is appropriate,
and monitor ESG progress against our targets.
This will further support GUESS to meet our ESG
Commitments, provide accurate and transparent ESG
Reporting, and develop and implement the necessary
systems, processes, and controls to achieve success.

GUESS Sustainability Assurance
Framework

In keeping with our commitment to continuous
improvement and transparency in reporting, in FY2021
we undertook a significant internal auditing process toprovide robustness and confidence in our sustainability
reporting and performance data. By underpinning ourreporting with a rigorous internal auditing and testing
approach, we can provide GUESS stakeholders withinternally verified, quantified, and reliable assessmentsof our sustainability performance.
Our first step was to create a comprehensive reporting
framework, the GUESS Sustainability Assurance
Framework, that identified all the key performanceindicators (KPIs) needed to provide a complete accountingof our sustainability performance. We also took thisopportunity to link internal GUESS KPIs with disclosuresand metrics in the GRI Standards and the SASB Apparel,
Accessories & Footwear Sustainability AccountingStandard, and the Multiline and Specialty Retailers &Distributors Sustainability Accounting Standard.

“We continue to becommitted to obtaining
reasonable assurance
over our key ESG
metrics and disclosures
and will begin reportingon an annual basis
starting FY2026.”

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GRI 2-5

GUESS Sustainability Assurance
Framework continued

A team of internal Sustainability and ESG Specialists andInternal Auditing Experts collaborated on the framework toensure it covered the most relevant metrics and indicators.
This approach builds on the knowledge and expertise of
our Sustainability and ESG and Internal Audit teams aswell as drawing from well-established internal auditing
methodologies. The resulting framework includes nearly
100 indicators, disclosures, and metrics that are disclosed
throughout this report. For each metric, the framework
identifies key sources, data owners, IT systems, and otherinformation needed to create a replicable methodology
year on year.
In FY2022, we expanded the framework to cover theunderlying internal controls, reflecting best practice financial
reporting processes. The internal controls must be executedand documented by the process and control owners before
they provide and validate the data for the ESG Report.
Having built these foundations, we will expand the internal
control system in the coming years.
The aim is to provide Management with the tools to prevent
any material errors in our reporting, and provide internal
assurance of the accuracy, reliability, and robustness of
our reporting system. These internal controls demonstrate
our commitment to fair, transparent, and reliable reporting.

External reasonable assurance

We have been engaging KPMG as our third-party
assurance provider since we released our first Sustainability
Report covering calendar year 2014. Over the past eight
years we have increased both the scope of the information
assured and the level of assurance we receive. For thesecond report in a row, we have obtained reasonableassurance over our key ESG metrics and disclosures
included on pages 81 to 103. Reasonable assurance
provides a higher level of assurance than limited assurance
about whether the information is fairly stated, in allmaterial respects.
GUESS has been one of the first in the fashion industry
to obtain reasonable assurance over ESG metrics
and disclosures.
Please see our Independent accountants’ report on
page 80.

Other initiatives to increase ESG
transparency

We strive to be an industry leader in transparency throughour continued membership of the Global Reporting
Initiative’s GOLD Community and our membership on
the SASB’s Consumer Sector Advisory Group.
We also reported with respect to:• Our GHG inventory – We report to CDP about our

climate action approach and scored a B in our FY2023
climate disclosure.

• Our SBTs – We have set ambitious science-based

GHG reduction targets for our company and supply
chain, approved by SBTi in FY2022. We are a Business
Ambition for 1.5°C campaign member.

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RESPONSIBLE MARKETINGGRI 417-1, 417-2, 417-3, SASB CG-MR-230a.2

Building
customer trust
As a brand, we have a responsibility for not
only the products we sell but also the ways inwhich we communicate with our customers.
The way we market our products to the public
is extremely important and must be done in a
careful, and thoughtful way. With public andregulatory scrutiny of green washing growing,
we recognize the increased need for transparency
and credibility. This means ensuring we include
the proper sustainability credentials in marketingfor the GUESS ECO and Consciously
Constructed collections.

Product information and labeling

Providing customers with essential product information isextremely important. By labeling our products correctly,
we encourage customers to shop responsibly. Customers
can easily identify the product, the person responsible for
placing it on the market, the care instructions, and theinformation that helps minimize risks. To ensure compliance,
GUESS follows global regulations that set the criteria for
the information included on apparel product labels.
Our “Guidelines for Eco Fibers & Product Public Facing
Claims” provide guidance to various internal stakeholders
on eco fibers and the claims that can be made regarding
GUESS ECO, Consciously Constructed, and conventional
GUESS branded goods which contain environmentally
preferred fibers and materials.
The best practices described in the guidelines aim toensure that GUESS communication is in compliance withthe law and provides the consumer with clear, honest,
and easy to understand messaging related to a product’s
environmentally preferred fibers and material credentials.
The guide is updated periodically to reflect changes in thelaw and market.
In France, new AGEC regulations are driving a shift
towards a more circular economy for apparel andfootwear. Following these rules, GUESS includes theTriman logo, which indicates how best to dispose of the
product at the end of its life. To meet AGEC regulations,this information must be shown on a composition or
temporary label and be placed directly on the productor embroidery, on the packaging, or even on a sticker.
As regulation around responsible marketing, sustainable
materials, and product claims continues to evolve, GUESS
is staying informed of developments in different markets.
By carrying out an assessment of product labeling andpackaging compliance in France, Italy, and Spain, GUESS
reviewed all products, with a particular focus on products
sold to customers. We identified a number of potential issues.

To rectify these disparities, GUESS aims to have new
product labeling guidelines for all European markets in
FY2024, which will reflect potential incoming legislation.

Sustainable communication training

At the beginning of FY2024, we hosted a special training
session on the communication of sustainability, where wetalked about best practices, benefits, and risks. The training
was prepared specifically for GUESS employees and wasdelivered by a third-party organization.
The aim of the session was to share more information
regarding the complexity of effectively communicating
sustainable concepts to consumers, and the risks associatedwith making inaccurate or unfounded claims.
We were proud to see we had good attendance, withmembers from the Marketing, Communication, Sales,
Merchandising, Product Development, Internal Audit,
Sustainability and ESG teams present.

Customer data privacy

At GUESS, we see customers as guests in our own homes.
We value customer safety, trust, and experience andare always looking for new ways to improve customer
satisfaction. As online shopping becomes increasingly
relevant, we have introduced a new system to deliver anenhanced guest experience. By using minimal amounts ofdata regarding shopping preferences and behavior of ourguests, they enjoy a personalized shopping experience
for ultimate ease of use. The GUESS enhanced shopping
system leverages only relevant data to elevate your unique
GUESS experience.
Transparency and clear communication are tenets of the
GUESS vision. Rather than be unclear about our use ofdata, we recognize the value of personal data protection
and want to assure our customers that precautions arebeing taken to protect their information. If customers preferto have GUESS erase all their data, we are happy toaccommodate that request, although this will impact their
online GUESS experience.

Goals• Review eco label policy in line withemerging best practice (2025)• Review eco marketing policy in linewith emerging best practice (2024)

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DATA SECURITY AND PRIVACYSASB CG-MR-230a.1, CG-MR-230a.2

A holistic
approachtowards cybersecurity
We have a responsibility to protect our customers’
data and privacy. We use all the tools available
to us to ensure we have systems including
technological solutions, strong policies andprocesses, and employee training. To support
this, we give consumers control over how westore and use their data.

Data protection

In the last few years, we have seen a strong push towards
working from home which has had repercussions for bothwork-life balance and cyber security risks. As it stands, theboundaries between work and private places are becoming
increasingly blurred. To accommodate for changing times,
we are committed to creating new initiatives and protective
measures to ensure our cyber safety.
Data protection has always been a focal point in the
GUESS information security strategy. That is why we havelaunched a global project to adopt new technologies tohelp guarantee higher security standards and greater
control of personal and business data.
At the same time, we have created a global vulnerability
and patching management program to constantly trackvulnerabilities on all company IT assets. This program will
also prioritize our remediation efforts by utilizing arisk-based approach.
Aside from these important initiatives, we have also piloted
a global cyber security awareness and training programfor our employees and collaborators. We want ourcolleagues to be fully aware of all cyber security threats
and foster personal and organizational resilience to cyberrisks. Our mission is to equip our team with a toolkit ofknowledge that will help protect them against malicious
cyber activity.

In FY2023, we implemented an additional security service
to monitor our critical assets on a 24/7 basis. Through a
Security Operating Center (SOC) service, we havestrengthened and widened our capacity to identify
potential cyber threats and rapidly respond withappropriate procedures.
Our security staff work in complete synergy with the
IT Operations department to optimize the organization’s
IT resources. This includes streamlining all software, dataflows, and systems to improve infrastructure security while
reducing our carbon footprint. Thanks to an accurate
optimization of processes and business needs, we wereable to shut down all physical and virtual obsolete servers.
This has resulted in a significant reduction in cyber attacks
and an increase in our energy efficiency.

“To accommodate forchanging times, we arecommitted to creating
new initiatives andprotective measures toensure our cyber safety.”

Goals• Continuously improve the current dataprotection policies to promote sustainablebusiness practices by avoiding costly data
breaches that can harm GUESS and ourclients (ongoing)• Establish a global “Bug Bounty Program”
to incentive the identification andreporting of potential security
vulnerabilities (2024)• Implement sustainable global asset
management to reduce carbon footprint(ongoing)

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DATA SECURITY AND PRIVACY continued
SASB CG-MR-230a.1, CG-MR-230a.2

Data protection continued

As part of our commitment to ESG, we have improved our
process for selecting IT solution providers. We implemented
detailed guidelines that consider both cyber security risks
and compliance with data protection laws. In order tosafeguard our customers’ and colleagues’ personal data,
we have begun to integrate cyber security best practices
into the vendor selection process. This allows us to provide
protection while also selecting the best IT solutions forour business.
To protect our systems and data, we have adopted a holistic
approach toward cyber security and sustainability. We use
our resources wisely and continue to invest in technology,
personnel, and training to ensure that we stay at theforefront of best practices. To further promote transparency
on a company level, we will continue to record progressin our corporate social responsibility reports.

“We have systems
and activities in place
to maintain a highcompliance standard
relating to dataprocessing. Privacy anddata protection are not a
one-shot activity but an
ongoing, and constantly
evolving process.”

Data privacy

Global attention to cyber security risks has increased
markedly in recent years. With a rise in high-profile data
breaches, every consumer-facing business must work
harder to ensure customer trust. This is reinforced by theenactment of strong data protection regulations in the
countries where GUESS operates, in particular, the EU
General Data Protection Regulation (GDPR) and California
Consumer Protection Act (CCPA).
Reflecting this, we have systems and activities in place
to maintain a high compliance standard relating to dataprocessing. Our customers, employees, and suppliers
entrust us with their data, and so privacy and protection
are core requirements for our company. Improvements
in FY2023 include:• Revising our Global Corporate Data Transfer

Policy in line with European guidelines – By
analyzing the systems, tools, and infrastructure we use
to process and transfer data, we have been able toapply the best legal, technical, and organizational
measures available regarding data transfer, with asubstantial focus on data transfers outside the EU.

• Reviewing the cookie policy of our

e-commerce website in line with European
Data Protection Authority guidelines –Updates following this review give customers thegreatest freedom of choice on the cookies that can beinstalled, allowing them to review their preferences at
any time, and making our privacy notice clearer andmore transparent.

Privacy and data protection are not a one-shot activity but
an ongoing, dynamic, and constantly evolving process towork on, day after day. At GUESS we work continuously
to design, develop, and run systems that process personal
data in a proportional, fair, and secure manner.

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APPENDICESABOUTGUESS campaign, Holiday 2022; Lake Como, Italy.

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MATERIALITYGRI 3-1, 3-2

Doublemateriality
assessment
In FY2023, we carried out a double materiality assessment
to identify, update, and prioritize sustainability topics,
and refresh our ESG Strategy.
We carried out the assessment working with Anthesis
sustainability specialists, in line with emerging bestpractice and regulation in sustainability reporting.
The assessment allowed us to identify which topics arematerial for our company both from an impact perspective– the impacts we have as a company on society and theenvironment – and a financial perspective – the ESG risks
and opportunities our business faces and their potential
financial implications.
Caused(Impact Materiality)

Impacts

Incurred(Financial Materiality)

Reporting

DoubleMaterial
Impacts

StrategyPeer Review

Interviews

Surveys

Risk Analysis

Product Impact Study

10 peers were benchmarked tounderstand ESG priorities,
ambition level, industry bestpractice and overall ESG maturity.

10 interviews were conducted
involving 37 stakeholders, bothinternal and external (incl. Textile
Exchange and our main Tier 1
supplier for apparel) to gather
insights on internal priorities,
management capacity, andbroader industry trends.

We ran two surveys involving:

We reviewed country-level andindustry risks using the Risk
Horizon platform, which
aggregates the mostcomprehensive global ESG risk
data sets.

We conducted an assessment of our
product portfolio in order to identify
the greatest impacts across our productcategories. The study considered salesdata, type of material and life cycle
assessments, providing us with
data-led insights that can help us
better address our impacts.

Our approach considered both actual and potential, andnegative and positive impacts on the economy, environment,
and people (including impacts on their human rights), across
our organization’s activities and business relationships.
We built a multi-tier process, complying with relevant
reporting frameworks including the GRI (Global Reporting
Initiative) and SASB (Sustainability Accounting Standards
Board), and in alignment with emerging ESRS (European
Sustainability Reporting Standards) and CSRD (Corporate
Social Responsibility Directive) principles when building
an updated list. These frameworks informed our choiceof topics for assessment, as did the topics from our mostrecent assessment completed in FY2020–2021, and areview of the topics identified and prioritized by a groupof ten industry peers and leaders.
To get a data-driven view of impacts in our value chain,
we also carried out a quantitative impact study using sales
and other data to understand hotspots for environmental
and social impacts of our product portfolio. To achieve a
deeper understanding of risks and potential financial
impacts, we explored global, national and industry-levelrisk data sets for our key geographies.
The topics identified as potentially material were also usedas the basis of interviews with a range of external andinternal stakeholders to understand their interests andpriorities, and in surveys of customers and colleagues.

• Over 3,800 customers• Over 1,100 global employeesWith the evidence gathering complete, we carried out aset of workshops with senior stakeholders from across thebusiness, to further explore and test the findings, withseparate strands focused on impact and financial materiality.
The workshops engaged the GUESS Sustainability and
ESG team and senior staff from Audit, Legal, Risk and
Finance functions. The assessment was then validated ina final sign-off meeting with our CEO, Carlos Alberini.

and impact as a basis for risk management in addition toinherent risk and residual risk. Results of the risk assessment
are communicated to the Board of Directors, Audit
Committee, Senior Management, and external financial
statement auditors, and are used to identify areas of theorganization that will be audited for the upcoming year.

Based on the result of the double materiality assessment,
we considered material a topic that has at least asignificant impact. As shown in the matrix, fourteen of the
fifteen topics tested emerged as clearly material to the
future performance of GUESS, from both an impact and afinancial perspective. One topic – community engagement– did not reach the same level by the process describedabove and thus was not included in the matrix as material.
GUESS nevertheless continues to engage its communities,
and will review this topic materiality in future assessments.

Following the validation of our resultswith the Sustainability Steering Committee
and our CEO, Carlos Alberini, we have beenable to refresh our ESG Strategy and targets.

Alignment with enterprise risk management

Risks identified through the double materiality assessment
are being incorporated into the GUESS overall enterpriserisk management approach and are subject to internal
audit procedures, depending on the level of risk assessed.
Our Internal Audit team conducts an annual global risk
assessment encompassing all of the organization’s business
functions. The global risk assessment considers likelihood

Quantitative Assessment: We carried out
portfolio level analysis of our products basedon sales volume and life cycle assessments tounderstand the individual and cumulative impactsof our product categories and materials.

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MATERIALITY continued
GRI 3-1, 3-2

FY2022-2023
GUESS ESG
material topics

Materiality matrix

Changes to the list of material
topics compared to the previous
reporting period

Priority topics

1
5

1 Labor rights

4

6

2 Climate

Significant topics

3 Sustainable materials and products

7

10

8

9

4 Employee wellbeing and engagement
5 Circular economy
7 Responsible marketing
8 Diversity and inclusion
9 Responsible sourcing
10 Nature and wildlife
11 Water stewardship
12 Packaging and waste
13 Data privacy and cyber security
14 Business ethics

11
Impact on society and the environment

6 Pollution and chemicals

Topics to be monitored

Impact on the business

12
14

2
3

13

By reviewing both impacts caused and impacts incurred,
our materiality process looked different from our last.
Looking beyond stakeholder commentary, we took
quantitative sources into account and considered financial
impact more formally. Reflecting this and to help shape
our ESG Strategy, we have grouped the topics as “Priority”
and “Significant” (see left).
Despite the different approach and the time passed since
our last assessment, the results have proved to be wellaligned to previous assessments. Primary variances include
an increase in importance assigned to Climate, Circular
economy, Pollution and chemicals, and Nature and wildlife.
The main changes are reported in the “Management ofmaterial topics” (see pages 68 - 74).
Fortunately, given evolving trends and imperatives, theresults have corresponded closely with our expectations
at GUESS. We have outlined any implications for our
ESG Strategy moving forward at the beginning of thisreport, for example strengthening some of our targets
around chemicals and committing to develop a biodiversity
strategy. Major details about our material topics arecovered in the next pages.

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MANAGEMENT OF MATERIAL TOPICSGRI 2-23, 2-24, 3-3

Priority topics
1. Labor rights (previously labeled as Human
Rights and Labor Relations)This is covered in the Supply chain responsibility and laborrights section of our strategy and reporting. Due to theoverlap in how we approach the topics, we report onlabor rights and sustainable supply chain together.
As a global brand, we source our merchandise fromhundreds of supplier factories in approximately 25
countries. As GUESS does not own any manufacturing
facilities, we do not have direct visibility over all theworkers making our products. It is imperative, therefore,that we work with our suppliers to ensure that the workers
in our supply chain are treated with dignity, paid fairly,
and provided with safe workplaces.
Trend vs. previous materiality assessment: Topic
remaining with a similar level of priority.
Boundary and Involvement: Workers that are hired andmanaged by factories in our supply chain are external tothe organization, and therefore we only have limited,indirect influence, particularly for sub-contracted supplierswith which we do not have a direct relationship.
Reporting Limitations: Workers at our Tier 1 supplierfactories (those from which GUESS directly buys) arecovered by our social compliance program. However, fullvisibility of supplier operations, particularly Tier 2 and 3
vendors (such as fabric mills, spinners, weavers, etc.),
remains a challenge given the indirect nature of ourrelationship and large network of supply chain operations.
Actual or potential impacts: With a broad, global supply
chain we have the opportunity to provide decent work andeconomic opportunity to finished product workers, and,further down our supply chain, textile makers and raw
material growers. These working environments can also
lead to negative impacts around working conditions,human rights, health and safety, and working hours.

Policies & Goals:• GUESS Supplier Factory Code of Conduct• Publish and update an interactive multi-tier supply
chain map (2025)• Becoming member of best-in-class associations forSocial Compliance (such as The Bangladesh Accord
and Better Work) to ensure all key factories haveworker safety and wellbeing (2025)• Develop training and development opportunities topromote positive change for women (2025)

Impact management & effectiveness evaluation:
For Tier 1 supplier factories, we publicly report our audit
findings on a biennial basis (see pages 83-85). We use
the trends found through audits and assessments to better
inform our approach to training (content, format,
participants and frequency), relationship building, suppliervetting and civil society engagement and positively impact
workers beyond compliance. We are also continuing tomonitor our program to align with best industry practice.
We use our Vendor Scorecard program to evaluate ourpartners on key performance indicators that include social
responsibility, environmental management, and innovation.
The tool includes historical results, corrective action
measures and GUESS training participation to ensure that
the GUESS approach to vendor management and selection
takes into account facility performance on these important
topics. In some higher risk countries, we know we can havemore impact by working with local or industry community
groups such as INNO in China. With this in mind, we havebegun working with external experts to pilot a worker
engagement program in India, Bangladesh, and Pakistan.
As transparency helps facilitate accountability and drive
systemic industry change, we also monitor our transparency
scores and continue to improve year on year. We measurecontinuous improvement by setting and reaching goals
related to transparency, training and partnership, andpublish a list of key facilities to provide transparency of

our supply chain. We aim to publish and update aninteractive multi-tier supply chain map by 2025. We also
continue to reach our partners through ongoing training,
and in an effort to increase the effectiveness of suchtrainings, ask attendees to share the knowledge internallywith all employees.
Specific Requirements: Tier 1 suppliers must sign ourpolicy for responsible business conduct “GUESS Supplier
Factory Code of Conduct” (CoC). This policy was drafted
conducting an internal due diligence to identify, prevent,mitigate, and account for actual and potential negative
impacts regarding human and labor rights violation in
the GUESS supply chain. The CoC covers the principles
concerning fundamental rights set out in the International
Labor Organization (ILO) Declaration on Fundamental
Principles and Rights at Work. The CoC is approved by the
GUESS Nominating and Governance Committee and ispublicly available at sustainability.guess.com. This policy
is updated by the Sustainability and ESG team as deemednecessary and approved by the GUESS Nominating andGovernance Committee. The last version of the policy wasissued in October 2020. The CoC is always shared withnew suppliers as a mandatory document to be approved.
The Sustainability and ESG team is responsible to verify
the compliance of Tier 1 suppliers with GUESS CoC
following the Social Compliance program (see section“Supply chain responsibility and labor rights” for moredetails regarding this program). Suppliers must provide
evidence of their social compliance record via audit
reports and certificates issued by peer companies,
third-party audits and certification bodies, or multistakeholder organizations.

2. Climate (previously labeled as Energy
efficiency and greenhouse gas emissions,and Climate Change and Risk Governance)
This is covered in the Climate section of our strategy
and reporting.

Climate change is one of society’s most important
challenges and we know we must play our part in reducing
greenhouse gas emissions. Energy consumption as aretailer is directly linked to climate change, and also offers
cost savings if reduced. Reporting GHG emissions is
becoming a regulatory requirement in many jurisdictions,and the ability as a business to operate and compete withthe expectations of a low carbon economy is important toour business and our stakeholders. We must also respondto the risks posed to our business by climate change.
Trend vs. previous materiality assessment: Topic risingin priority, driven by both risk and impact.
Boundary and Involvement: Scope 1 (direct) and 2(indirect) emissions are considered internal to theorganization in that we have operational control andinfluence over the energy consumption associated withsuch emissions. Scope 3 (indirect, other organizationaland value chain activities - Category 1 - Purchased Goods
and Services) emissions occur outside the organization;
however, they are required for our Science Based Target
goals and are linked with sustainable materials, products
and business operation.
Reporting Limitations: Invoices for electricity use arecollected internally. When not available, we use the best
available estimates to fill any gaps.
Actual or potential impacts: Through our business andsupply chain we contribute to global carbon emissions.
With ambitious targets to reduce our emissions, we havean opportunity to lessen this impact. We are also carrying
out work to understand how climate change is likely toimpact our business and mitigate these impacts.

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MANAGEMENT OF MATERIAL TOPICS continued
GRI 2-23, 2-24, 3-3

Priority topics continued
2. Climate (previously labeled as Energy
efficiency and greenhouse gas emissions,and Climate Change and Risk Governance)
continued
Policies & Goals:• Reduce Scope 1 + 2 GHG emissions by 50% vsbaseline 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 byremoving additional CO2 from atmosphere (2035)• Announce roadmap to achieve SBTs (2024)
Impact management & effectiveness evaluation:
At GUESS, we include climate change and energy use aspart of our enterprise-wide risk management evaluation,of which results go directly to our Board of Directors.
We also report annually to CDP which ensures we stay
current on best practices in terms of climate risk reportingin addition to reporting our improvements in overall GHG
emissions. We track year on year greenhouse gas emission
reductions and our progress on energy efficiency activities
through our annual global carbon inventory tracking. Our
Science Based Targets initiative aligned targets are in
direct response to the climate crisis, noting that incremental
changes are insufficient to meet the needs of this decade.
More robust operational policies, creative financing, andnew supply chain programs and partnerships will beneeded to achieve our Science-based targets.
Specific Requirements: In the US, the SEC is introducing
new requirements related to emissions reporting due tocome as soon as 2024.

3. Sustainable materials and products(previously labeled as Use of sustainable andrecycled materials; and Reducing Environmental
Impacts of Products Across the Lifecycle)

Policies & Goals:• GUESS Responsible Sourcing – Policy on
Cellulosic Fabrics“GUESS Sustainability Assurance Framework” has also
helped to reinforce the importance of certification
management with the team.

We are conscious of the environmental impact of thematerials used to produce our goods and of what happens
to our products at end-of-life. This is of increasing concern
to customers and other stakeholders, as well as essential
to reaching our Scope 3 science-based target. We are
increasing our sourcing and use of environmentally
preferred materials, focused on growing our twocollections of more sustainable products, GUESS ECO
and Consciously Constructed.

• GUESS Responsible Cotton Sourcing Policy• Guidelines for Apparel Eco Products• 30% of GUESS global apparel materials portfolio
will be environmentally preferred (2023)

Specific Requirements: Certifications for materials, orother evidence of traceability systems are required forstyles to be counted towards our environmentally preferredmaterials goals. Furthermore, to drive the daily operationsof our sourcing teams, the Sustainability and ESG teamhas proposed the GUESS Responsible Sourcing – Policy
on Cellulosic Fabrics and the GUESS Responsible Cotton
Sourcing Policy to the GUESS Nominating and GovernanceCommittee for approval. These policies are publicly
available at sustainability.guess.com and are updated
as deemed necessary. These policies are based on therecommendations shared for the industry by both the
Textile Exchange and the UNFCCC task teams. For internal
use and guidance to our design and product development
teams, the Sustainability and ESG team in cooperation
with the product teams leaders, defined the “Guidelines
for Apparel Eco Products”, which are updated annuallyand based on industry best practices. The guidelines set
the minimum requirements to consider a garment “GUESS
ECO” or “Consciously Constructed”. These policies andguidelines are shared internally through meetings anddedicated training sessions.

This is covered in the Responsible materials and products
section of our strategy and reporting.

Trend vs. previous materiality assessment: Topic risingin priority, driven by both risk and impact.
Boundary and Involvement: We specify the materials
in our design for our Tier 1 suppliers to use. We use fabricchoice, vendor communication and in some cases, millcommunication, to indirectly influence our supply chain,
but ultimately, raw material production occurs outside
our business.
Reporting Limitations: GUESS is not yet able to track andreport on non-core fabric materials, such as the linings orembellishments used in our apparel products; nor are weable to fully disclose the full materials of our accessories
and footwear beyond the main core body materials.
Actual or potential impacts: The materials our suppliers
use to produce our merchandise have an environmental
impact including water use, pollution, biodiversity impacts,
carbon emissions, and human rights impacts.

• 75% of GUESS global apparel materials portfolio
will be environmentally preferred (2030)• 75% of all fibers used in men’s bags main material
will be environmentally preferred (2025)• 80% recycled or biobased polyester will be used
for the apparel mainline (2025)• 80% recycled or biobased polyester will be used
for all apparel brands (2030)• 80% regenerative, recycled, or organic cotton
will be used for all apparel brands (2030)• 75% of GUESS denim apparel mainline will be
GUESS ECO (2030)• 50% of GUESS all apparel mainline will be
GUESS ECO (2025)• 35% of GUESS apparel Factory mainline will be
Consciously Constructed (2025)• 50% of GUESS men’s bags will be GUESS ECO (2025)
Impact management & effectiveness evaluation:
Choosing lower impact materials, such as recycled, organicor regenerative fibers, reduces this impact and provides
better quality jobs. We implement policies on raw material
sourcing and responsible production to address highest
priority issue areas. We have set ambitious goals acrossour material types and product lines to increase the use ofenvironmentally preferred materials, publishing progressin our sustainability reporting. Our global project, the

4. Employee wellbeing and engagement(previously labeled as Health, Safety andWellbeing; and Employee Engagement
and Training)This is covered in the Employee wellbeing andengagement section of our strategy and reporting.

Employee wellbeing: With over 12,000 employees
globally, the safety and wellbeing of our associates is a toppriority, and we recognize that mental and social wellbeing
are as essential to overall health as physical wellbeing.

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MANAGEMENT OF MATERIAL TOPICS continued
GRI 2-23, 2-24, 3-3

Priority topics continued
4. Employee wellbeing and engagement(previously labeled as Health, Safety andWellbeing; and Employee Engagement
and Training) continued

Trend vs. previous materiality assessment: Topic risingin priority, driven by both risk and impact.
Boundary and Involvement: Directly owned operations
at corporate, retail and distribution, where the company
must take precautions to ensure a safe, healthy
working environment.
Reporting Limitations: None
Actual or potential impacts: We provide decent workand employment to our workforce, creating a positive
impact on individuals economic empowerment and on
the economies where we operate. Working in stores,
distribution centers and offices can negatively or positively
impact individuals’ health, safety and wellbeing.
Policies & Goals:• Expand the wellness and mental health program forall employees (2025)
Impact management & effectiveness evaluation:
We provide training and support on health and wellbeing
which varies depending on geography. During the
pandemic we offered a 24/7 health and safety hotline
and expanded our regular health and safety email series
to cover overall wellness and self-care tips. In our
distribution centers, we took additional precautions
to ensure safe working such as a staggered schedule,
regular testing, and contact tracing.
Specific Requirements: Adherence to Occupational
Health and Safety guidance, as well as the guidance of
the CDC in the US, and local health and safety regulation
for all our locations around the world.

Employee engagement: We owe our iconic brandand global presence to our passionate and talented
associates, and we aim to create a great place for them
to work by offering benefits alongside training andeducation opportunities.
Trend vs. previous materiality assessment: Topic risingin priority, driven by both risk and impact.
Boundary and Involvement: Our human resources
program exists internally to the organization and issomething over which we have direct control.
Reporting Limitations: Some specific issues related
to employee and human resources may be subject toconfidentiality or may be unreportable for organization’s
decision.
Actual or potential impacts: Providing employeeswith decent work engagement and development
opportunities that help them reach their personal careergoals and lifestyle.
Policies & Goals:• All associates will be sustainability literate (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 thebaseline; disclose medium-term target (2027)

Impact management & effectiveness evaluation:
We track the growth and improved quality of our benefits,
education, career advancement opportunities andemployee participation in our engagement programs.
We are constantly evolving our learning and development
offerings to adapt to new technologies and provide
relevant training for different job types and goals. Each
GUESS Region customizes its training for their associates
and their operations, all designed to give our associates
the resources and skills they need to advance and achieve
their career goals.

Specific Requirements: None.

5. Circular economy (previously labeled as
Circular Products and Business Models)This is covered in the Circular economy, packaging, andwaste section of our strategy and reporting. Due to theoverlap in how we approach the topics, we report on
Circular economy and Packaging and Waste together.
With the global rise in production and consumption of
fashion goods, we aim to do our part to reduce waste
generation by extending the lifecycle of clothing, keeping
resources in use for longer, increasing re-use andrecycling, and diverting products from landfill.
Trend vs. previous materiality assessment: Topic risingin importance.
Boundary and Involvement: Most product waste occurs
external to our organization. For example, fabric waste insupplier factories and post-consumer waste at the end of a
product’s life and we have limited, indirect influence over
our customers’ decisions on what to do with products at
end-of-life. GUESS has partnered with a textile recycler tomanage product waste, as a direct result of our operations,for returned or damaged apparel. We also run a takeback
program, RESOURCED, for customers to recycle unwanted
apparel and footwear from any brand.
Reporting Limitation: Although GUESS is able to reporton the weight of products given to our textile recycling
partner and through RESOURCED, we have little to novisibility into the end-of-life stages of our products after
the point of sale.
Actual or potential impacts: A linear economy has been
demonstrated to have a negative environmental impact,
extracting materials faster than the plant can replenish
them and reliant on finite resources.

Policies & Goals:• 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 productdesigners (2025)• Apply circular design playbook to one capsule pereach season (2030)

Impact management & effectiveness evaluation:
By choosing recycled materials and designing to reduce
waste and support recycling at end-of-life, we can support
a more sustainable circular economy. We have introduced
goals to develop circular strategy and policy, supported
by a circular design playbook that will be applied to one
capsule per season by 2030. We also aim to increasecustomer participation in our RESOURCED program which
encourages customers to exchange their old clothing andshoes for a discount on future purchases. By increasing
customer participation in the program and committing tointernational expansion of the program, we help divert
unwanted shoes and clothing that would have otherwise
ended up in a landfill. In addition to the ongoing program,
we set ourselves a goal to introduce or increase repair,resale, and upcycling initiatives in key markets, that cantruly drive a circular economy in near future. To achievethis, GUESS is currently revisiting the actual RESOURCED
program partnerships and communication to maximize
effect with our customer.
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Priority topics continued
6. Pollution and chemicals (previously labeled
as Chemicals Management)This is covered in the Chemicals, pollution, and water
stewardship section of our strategy and reporting. Due tothe overlap in how we approach the topics, we report on
Pollution and chemicals, and Water stewardship together.
It is important that the chemicals and dyes used in
manufacturing that could pose harm to the health ofworkers or the environment are properly monitored andmanaged and avoided where possible.
Trend vs. previous materiality assessment: Topic risingin importance.
Boundary and Involvement: We have direct influence
over our internal product quality testing and performance
protocol program for our products, seeing this as afundamental responsibility to our customers. External
chemical testing in our supply chain is not under our direct
influence though we are striving to extend our
responsibility in this direction.
Reporting Limitations: Our chemical testing program atpresent includes Tier 1 vendors and inbound logistics
quality testing.
Actual or potential impacts: Chemicals usedirresponsibly can lead to pollution of water ways andground as well as harm to human health.
Policies & Goals:• List of Restricted Substances and Materials (2023)• Eliminate unnecessary use of persistent organic

pollutants (“forever chemicals” / PFAS) in line with therequirements of our LRSM (2025)• Become signatory of ZDHC and adopt ZDHC MRSL
(2026)• All supply chain ZDHC approved (2030)• Clean wastewater – Zero hazardous chemicals leaving
wet processors (2030)

Impact management & effectiveness evaluation:
We require Tier 1 suppliers to comply with our categoryspecific List of Restricted Substances and Materials (LRSM).
This is supported by supplier testing of finished products andindependent testing by accredited third parties. In addition,
GUESS is aware of risks associated with discharge ofwater from supplier facilities and in this regard we have set
ambitious goals to become signatory of ZDHC and adopt
ZDHC MRSL by 2026. Currently, GUESS is not tracking
the treatment methods used for wastewater discharge at
supplier facilities.
Specific Requirements: Tier 1 suppliers are required toagree to and use our LRSM, with additional requirements
needed as part of our GUESS ECO guidance. The LRSM
was drafted by the Quality Control department with thesupport of external expert conducting a due diligenceto identify the most stringent requirements on the use ofchemicals in each country where GUESS operates. The
policy is approved by the Head of the Technical department
and is updated annually in partnership with a third-party
expert to cover the European Union’s REACH requirements
as well as other target markets’ or client specific regulations.
The last version of the policy was issued in April 2023 andis publicly available at sustainability.guess.com. The LRSM
is shared by email to Tier 1 suppliers as an attachment of
the business contract (i.e. factory vendor agreement). The
Quality Control department is in charge of verifying thecompliance with the LRSM. Suppliers must provide evidenceof the testing performed on final products or raw materials.
Products or raw materials that do not pass testing may be
accepted with contingencies to be reserved or reworked,
and retested or rejected depending on adherence tolegal requirements.

Significant topics
7. Responsible marketing (previously labeled
as Business Ethics and Responsible Marketing)This is covered in the Responsible marketing section of
our strategy and reporting.

GUESS is responsible for the products the company puts
into the marketplace, and properly communicating to ourcustomers about the product whether it be a regulatory
requirement or a marketing claim.
Trend vs. previous materiality assessment: Topic
remaining with a similar level of priority.
Boundary and Involvement: Marketing and productclaims made by GUESS.
Reporting Limitations: Some specific issues related to
ethics and integrity may be subject to confidentiality
restrictions or may be unreportable for organization’s
decision.
Actual or potential impacts: Incorrect claims will mislead
customers, breaching trust and marketing regulations.
Making accurate, substantiated claims will help build trust
and the market for more sustainable products.
Policies & Goals:• Guidelines for Eco Fibers & Product Public Facing Claims• Review eco label policy in line with emerging bestpractice (2025)• Review eco marketing policy in line with emerging bestpractice (2024)

Impact management & effectiveness evaluation:
For GUESS ECO and Consciously Constructed, we haveguidelines in place on the claims that can be made andprovide regular training and guidance updates to provide
context, and support associates to understand and apply
the guidelines. From a regulatory perspective, we generally
remain in compliance with marketing regulations globally.

On occasion, we may have an issue related to specificmarketing laws in particular jurisdictions, which is typicallya result of human error in our global operation. If such an
incident occurs, we immediately act and rectify the situation.
We have also introduced goals to review eco label andeco marketing policies in line with emerging best practice.
Specific Requirements: Marketing communication
requirements in specific localities, such as new AGEC
regulations in France. In addition, for internal use andguidance to our marketing team, the Sustainability and
ESG team defined, and update as necessary, the“Guidelines for Eco Fibers & Product Public Facing Claims”.
This guideline is based on industry best practice and therecommendation shared for the industry by Textile
Exchange. The guideline sets the restrictions for public
facing statements and claims that can be made for GUESS
branded goods which contain environmentally preferredmaterials. This guideline is shared internally throughmeetings and dedicated training sessions.

8. Diversity and inclusion (previously labeled as
Diversity, Inclusion, and Equal Opportunities)
This is covered in the Diversity and inclusion section of ourstrategy and reporting.

With over 12,000 employees globally, we are proud of
our inclusive company culture, celebrating diversity andcultivating creativity throughout the business. Diversity andinclusion of all is essential to a healthy business environmentthat welcomes new ideas and perspectives.
Trend vs. previous materiality assessment: Topic witha small decline in importance.
Boundary and Involvement: The diversity of ourorganization occurs internally within the organization,over which we have direct responsibility for recruitment
and hiring.

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Significant topics continued
8. Diversity and inclusion (previously labeled as
Diversity, Inclusion, and Equal Opportunities)
continued
Reporting Limitations: We report on diversity of
associates within our organization to the extent the data
can lawfully be collected and reported.

Actual or potential impacts: A diverse, inclusive culture
provides employment to all members of society, encourages
equity and social justice and gives us a diverse range ofperspectives and ideas. Discrimination of people fromprotected groups will lead to people feeling excluded
and leaving our business and opens us up to regulatory
non-compliance.
Policies & Goals:• Guess?, Inc. Code of Ethics• Review company marketing and advertising materials
and develop plans to ensure diverse representation(ongoing)• Maintain gender pay parity at all levels andgeographic regions (2025)• 100% of Directors and above trained on harassment
prevention in workplace (2025)• 100% of Managers covered with unconscious bias
training (2025)

Impact management & effectiveness evaluation:
We review our performance and identify opportunities
for improvement, as well as the effectiveness of andparticipation in training and events. In response to increased
calls for social and racial justice in the US, GUESS hascontinued to grow its D&I council in the US and is in theprocess of relaunching the European D&I council. We
monitor pay parity, and look to improve HR practices topromote diversity and inclusion in recruitment and internal
policies. Through the GUESS Foundation, we provide

community outreach that reflects our commitment to support
an inclusive culture and community. As we expand theDiversity Council globally, each council’s focus will betailored to be most relevant and appropriate for that region.
We track D&I data through our Sustainability Report andsubmit relevant material to the Human Right Campaign’s
Corporate Equality Index. Our expectations of everyone at
GUESS to support a diverse and welcoming workplace arespelled out in the Guess?, Inc. Code of Ethics. The Guess?,
Inc. Code of Ethics is publicly available at investors.guess.
com. We expect all at GUESS to promptly report andinvestigate concerns about possible discrimination, as
appropriate, and to facilitate this, we maintain an opendoor policy that fosters honest and open communication.
GUESS associates are encouraged to discuss work-related
concerns or issues with their Manager, Department Head,
Human Resources, or Executive Management without fearof repercussion. In addition, our global whistleblower
hotline allows associates to report concerns about
unethical behavior or other potential conflicts.
Specific Requirements: Updated SEC guidance on
general human capital disclosure that include diversity andinclusion topics. All new employees and suppliers sign our
Guess?, Inc. Code of Ethics, and corporate associates havecompulsory annual training on the topic. For full informationand details on Guess?, Inc. Code of Ethics please refer to
FY2023 Annual Report (10-K and Proxy statement).

9. Responsible sourcing (previously labeled as
Supply Chain Management and Transparency)

This is covered in the Supply chain responsibility and laborrights and Responsible materials and products sections of
our strategy and reporting. Due to the overlap in how weapproach the topics, we report on the management oflabor and environmental management in the supply chain
together in Supply chain responsibility and labor rights
and the use certification to manage environmental impacts
in Responsible materials and products.

The majority of our social and environmental impacts lie
in our supply chain. As a result, it is imperative that wehave strong polices and processes in place to manage
environmental and social risks in the supply chain.
Trend vs. previous materiality assessment: Topic
remaining with a similar level of priority.
Boundary and Involvement: Internal GUESS processes
to manage supplier onboarding, auditing and training.
Reporting Limitations: Our supplier processes areprimarily focused on Tier 1 supplier factories.
Actual or potential impacts: Our responsible sourcing
program is designed to manage the social andenvironmental supply chain impacts outlined in Labor
rights and Sustainable products and materials.
Policies & Goals:• Establish training program for GUESS suppliers in key
regions (2023)• Increase factory employee access to trainings anddevelopment opportunities and grievance mechanism(ongoing)

Impact management & effectiveness evaluation:
For Tier 1 supplier factories, we publicly report our audit
findings on a biennial basis (see page 83-85). We use thetrends found through audits and assessments to better inform
our approach to training (content, format, participants andfrequency), relationship building, supplier vetting and civilsociety engagement and positively impact workers beyond
compliance. We are also continuing to monitor our program
to align with best industry practice. We use our Vendor
Scorecard program to evaluate our partners on key
performance indicators that include social responsibility,
environmental management, and innovation. The tool
includes historical results, corrective action measures and
GUESS training participation to ensure that the GUESS
approach to vendor management and selection takes into
account facility performance on these important topics.

We also use material certifications to identify
environmentally preferred materials and manage supply
chain environmental impacts.
Specific Requirements: New Tier 1 suppliers must sign
our GUESS Supplier Factory Code of Conduct andprovide evidence of their social compliance record via
audit reports and certificates issued by peer companies,
third-party audits and certification bodies, or multistakeholder organizations.

10. Nature and wildlife (previously labeled
as Biodiversity and Wildlife Conservation)
This is covered in the Nature and biodiversity sectionof our strategy and reporting.

Our primary biodiversity impacts are through our materials
choices, and as we increase our use of environmentally
preferred materials – such as recycled or organic materials– we will continue to reduce our biodiversity impacts.
Trend vs. previous materiality assessment: Topic risingin importance.
Boundary and Involvement: The biodiversity impacts of
our own operations, which are primarily shops and offices
in towns and cities across the globe, are minimal. Instead,
we focus on our supply chain and the materials we specify
in our design.
Reporting Limitations: Although we can report on thequantity of certified or recycled materials, given the natureof our business, we currently have limited visibility of our
supply chain biodiversity impacts, and we are not able toprovide additional details such as species affected, or theextent of areas impacted.
Actual or potential impacts: Through our supply
chain and the materials we source, we have the potential
to negatively impact biodiversity primarily throughdeforestation to create cellulosic fibers, and pesticides andfertilizer use to grow cotton. Certified and regenerative
fibers help to mitigate or reverse these impacts.

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MANAGEMENT OF MATERIAL TOPICS continued
GRI 2-23, 2-24, 3-3, 303-1, 304-2

Significant topics continued
10. Nature and wildlife (previously labeled as
Biodiversity and Wildlife Conservation) continued
Policies & Goals:• Develop a biodiversity strategy aligned with SBTN
(2025)

Impact management & effectiveness evaluation:
Our use of environmentally preferred materials will be key
to reducing our supply chain biodiversity impacts. As such,
we currently measure the proportion of certified andrecycled materials. To expand, strength and codify our
response to biodiversity impacts, we have a target todevelop a biodiversity strategy aligned with SBTN by 2025.
Specific Requirements: None

11. Water stewardshipThis is covered in the Chemicals, pollution, and water
stewardship section of our strategy and reporting. Due tothe overlap in how we approach the topics, we report on
Pollution and Chemicals and Water stewardship together.
The GUESS brand was founded on denim, a fabric reliant
on water from cotton growing to washing during the
manufacturing process to customer care. Cotton can be awater intensive crop, and as GUESS’ materials portfolio
uses over 50% cotton, water stewardship, tracking andmonitoring is fundamental to our environmental
responsibility. We also see it as a risk management
opportunity as water variability could become higher risk
in areas in which we operate.
Trend vs. previous materiality assessment: Topic witha small decline in importance.
Boundary and Involvement: Corporate water use occurs
internally to the organization and is something over which
we have direct influence, although given the nature of theretail business, is relatively small. The company’s water
impact occurs external to the organization throughout the
product lifecycle – upstream in raw material sourcing

and products manufacturing, and downstream in consumer
product care and washing – and is something over which
we have indirect control that we continue to influence,
especially through our focus on GUESS ECO denim
production.
Reporting Limitations: As our material water impact
occurs in our supply chain, we do not report on direct
operational water use. Our reporting is focused on
innovations with Tier 1 suppliers to reduce water use
and improve waste-water quality.
Actual or potential impacts: Denim is a water hungrymaterial, using water throughout the life cycle to grow thecotton, and to dye, treat and wash the fabric. This canimpact water availability and quality in supply chaincommunities.
Policies & Goals:• GUESS Denim Water and Chemical Management
Policy• Be water positive in supply chain: replenishing morewater than used in our supply chain (2035)

Impact management & effectiveness evaluation:
We conducted a product water footprint and lifecycle
assessment in FY2017 and are continuing to monitor
improvements throughout the lifecycle according to thisbaseline. We have a targeted, strategic approach to
reduce our products’ impact on water, with an emphasis
on denim, throughout the lifecycle based on high impact
areas and opportunities for influence and improvement.
This strategy has resulted in our Denim Water andChemicals Management Policy, which applies to all denim
suppliers and their facilities. The policy addresses eachphase of the denim life cycle to prioritize water savings
and water quality. We are also finding innovative garment
production methods to provide water and chemical saving
for GUESS ECO denim products. These techniques andtechnologies reduce water impact and help us to have themost influence on our partners’ practices. We have also set

an ambitious goal to be water positive in supply chain
by 2035.
Specific Requirements: In order to drive the daily
operations of our teams, Sustainability and ESG teamhas proposed the GUESS Denim Water and Chemical
Management Policy to the GUESS Nominating andGovernance Committee for approval. This policy is
publicly available at sustainability.guess.com and is
updated as deemed necessary. This policy is based on therecommendation shared for the industry by both the Textile
Exchange and the UNFCCC task teams and it is sharedinternally through meetings and dedicated training sessions.

12. Packaging and waste (previously labeled
as Use of Packaging and Packaging Materials;
and Waste in Manufacturing and Operations)This is covered in the Circular economy, packaging andwaste section of our strategy and reporting. Due to theoverlap in how we approach the topics, we report on
Circular economy and Packaging and Waste together.

Responsible packaging and materials occur both
inbound from suppliers and outbound to our retail stores,
wholesale and e-commerce customers. With plastic waste
accumulating in our environment, it is important that wetransition our approach to packaging and materials to
use more innovative solutions that are better for theenvironment and create less waste.
Trend vs. previous materiality assessment: Topic witha small decline in importance.
Boundary and Involvement: We are directly
responsible for the packaging of our e-commerce
shipments and shipments to stores.
Reporting Limitations: Currently we do not have fullvisibility into our apparel, handbag and footwear licensee
packaging data, nor do we have the ability to fully track
all inbound packaging from suppliers.

Actual or potential impacts: Packaging creates
downstream waste, for our customers to manage, disposeof and recycle. Creating recyclable and recycled
packaging supports circular principles and markets forrecycled materials and input.
Policies & Goals:• GUESS Responsible Packaging Policy• 100% product packaging to be recycled andrecyclable for all apparel and men’s bags (including
primary and secondary packaging and hangtags)(2030)

Impact management & effectiveness evaluation:
Our Responsible Packaging Policy covers varied
packaging types including airbag fillers, dust bags,
jewelry boxes, polybags, hangtags, and other forms of
packaging. The policy has been implemented globally byboth GUESS and our largest licensee business partners.
We have committed that all product packaging will berecycled and recyclable for all apparel and men’s bags
(including primary and secondary packaging andhangtags) by 2030.
Specific Requirements: Collection of certifications as
required for recycled materials. For internal use andguidance to our design and product development teams,
the Sustainability and ESG team in cooperation with the
product developer and licensee team leaders, defined andupdated as deemed necessary the GUESS Responsible
Packaging Policy, based on industry best practices, that set
packaging requirements. This policy is shared internallythrough meetings and dedicated training sessions.

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MANAGEMENT OF MATERIAL TOPICS continued
GRI 2-23, 2-24, 3-3

Significant topics continued
13. Data privacy and cyber security (previously
labeled as Management of Customer Data
Privacy & Security)
This is covered in the Data security and privacy section of
our strategy and reporting.

Protecting our customers’ and employees’ personal andfinancial data is of critical importance to GUESS. We
maintain strong data security processes and infrastructure.
High-profile retail data breaches in the media haveaffected general customer trust, and are a risk to every
consumer-facing business.
Trend vs. previous materiality assessment: Topic witha small decline in importance.
Boundary and Involvement: We have direct influence
over our privacy and security systems; however, thesophistication and breadth of breaches is significant andconstantly evolving. We are also subject to international
regulation on this topic.
Reporting Limitations: Our reporting scope is limitedby confidentiality as well as legal considerations related
to naming or detailing our privacy and security
systems publicly.
Actual or potential impacts: A privacy leak can
negatively impact customers’ and employees’ security,
finances and wellbeing. Strong processes in this area
support trust in our brand.

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

Impact management & effectiveness evaluation:
We will continue to evaluate and improve our management
approach to ensure we are staying current with the latest
threats and key elements of compliance and security.
For every global region where we operate, we also stayabreast of relevant regional regulations, such as the EU
General Data Protection Regulation (GDPR) and California
Consumer Protection Act (CCPA). We will continue toimprove our data protection policies and technologies,
and monitor legislation to ensure the customer, associate,and company data handled by GUESS remains safeand protected.

Policies & Goals:• Guess?, Inc. Code of Ethics• Align Executive performance incentives with ESG KPI
performance (2024)• Continuously improve GUESS Sustainability Assurance
Framework to maintain the highest standards for ESG
data quality (ongoing)• Continue to obtain “reasonable assurance” of our key
ESG metrics and disclosures (ongoing)

Specific Requirements: Adherence to regulations as
relevant by region.

• Move to annual ESG Reporting starting FY2026

14. Business ethics (previously labeled as
Business Ethics and Responsible Marketing;and Sustainability Governance andBusiness Integration)

Impact management & effectiveness evaluation:
GUESS takes great care to adhere to regulatory
requirements within each marketplace where we operate
globally. Our product compliance, legal and customs
teams manage various elements of regulatory monitoring,
and work closely with our product teams to assure
consistent adherence with the law. We also conduct
training for employees on general business ethics. ESG
scores, good governance and overall management
improvement are enhanced by the accountability provided
by our biennial, externally validated Sustainability Report,
as well as our hiring practices, employee culture andtraining. For more related to governance and ethics,
please refer to the Corporate Governance section of ourinvestors.guess.com website. We benchmark our progress
through continuous improvement of SP Global,
Sustainalytics, Independent Shareholder Services (ISS)
Quality Scores as well as continuous improvement of ourhiring practices, employee culture and training.

This is covered in the Governance and business ethics
section of our strategy and reporting.
Our company relies on goodwill, reputation and trust in
our brand with our customers, investors, business partners,
employees and other stakeholders. Therefore, maintaining
ethics and responsibility in how we do business andengage our stakeholders is a priority.

Policies & Goals:• 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)

Trend vs. previous materiality assessment: Topic witha small decline in importance.

• Establish a global “Bug Bounty Program” to incentive

Reporting Limitations: Some specific issues related to
ethics and integrity may be subject to confidentiality or
may be unreportable for organization’s decision.

the identification and reporting of potential security
vulnerabilities (2024)

Actual or potential impacts: Governance and ethics
practices determine how robustly we can respond to ourimpact area, affecting performance across our impact
areas and on the GUESS bottom line.

Boundary and Involvement: GUESS is responsible foracting as a responsible business to continue its operationand in obligation to shareholders.

(2025)

Specific Requirements: All new employees and suppliers
sign our Guess?, Inc. Code of Ethics, and corporate
associates have compulsory annual training on the topic.
For full information and details on Guess?, Inc. Code of
Ethics please refer to FY2023 Annual Report (10-K and
Proxy statement).

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ESG REPORT FISCAL YEARS 2022–2023

STAKEHOLDER ENGAGEMENTGRI 2-29, 3-1

Stakeholder engagement

Our stakeholders help to shape GUESS as a company andbrand. Staying in touch with them and gathering their input
strengthens our approach to ESG on an ongoing basis.

Our FY2022-2023 engagement platforms for each stakeholder group, along with the topics they raised, are summarized below.
Stakeholder typeEngagement methods

Stakeholder typeEngagement methods

Customers• Customer surveys and feedback • Nature and wildlife• Social media• Pollution and chemicals
Focus
groups•• Email and phone• Industry• Company researchMedia andindustry• Industry associations• Nature and wildlife• Industry initiatives,• Climateconferences, meetings• Labor rights
Interviews•• Responsible marketing• Company research• Press events and communication

Associates• Online surveys• Interviews• Volunteering and training• Investor surveys, reports• Company research• Direct communications• Industry• Pollution and chemicals• Employee wellbeing

Regulators and • Regulatory reporting• All topics relevant,and complianceparticularly climate
government• Meeting on emerging regulations
and government initiatives• Work with industry associations• Interviews• Direct communications• Surveys, audits, trainings• Interviews• GUESS Foundation• Partnerships and sponsorships• GUESS Cares• Events• Research• Email• Circular economy• Climate• Diversity and inclusion• None identified

Our investors, our suppliers, our industry peers, thecommunities we serve, the non-governmental organizations
we partner with, the media, and government agencies
are all valuable external stakeholders.
We consider our customers and associates to be valuableinternal stakeholders due to their close interactions withour brands and our company.

Who and how we engage

Our groups of stakeholders are important to GUESS indifferent ways, and as such each has a different level ofinterest when it comes to engaging with us and influencing
our sustainability journey.
We engage our stakeholders on ESG challenges in a
multitude of ways including surveys, focus groups,
interviews, social media, or other direct communications.
Others prefer to be kept informed through productcommunications, ESG Reports, and our website.
For certain groups we also use a variety of communication
platforms to keep in touch. For instance, our corecustomers are style-conscious consumers in three primarygroups, Heritage, Millennials, and Generation Z, andeach group engages with us through different media.
We engage, collect feedback, and share information withdifferent stakeholders in different ways, making sure wekeep up with our stakeholders’ changing perspectives.

Investors

Suppliers

Communities
and NGOs

Key topics raisedand engagement• Nature and wildlife• Employee wellbeing

and engagement• Labor rights• Responsible marketing• Community engagement• Business ethics

Leadership• Interviews• Surveys• ESG meetings

Key topics raised• Circular economy• Responsible sourcing• Data privacy and cyber security• Labor rights• Employee wellbeing
and engagement

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STAKEHOLDER ENGAGEMENT continued
GRI 2-28

Partnerships and collaboration
Organization

COMMUNITY MEMBER

Membership and Collaboration

Topics Working on Together

We are a member of the GRI Community and support the missionof GRI to empower decision-makers everywhere, through GRI
Sustainability Reporting Standards and its multi-stakeholder
network, to take action toward a more sustainable economy
and world.

Transparency

GUESS is a member of the SASB sector advisory group on
Transparency
consumer goods and actively engaged in our industry disclosures.
This report was developed in keeping with two SASB Standards.
Since 2015, GUESS has been a member of the SAC, 19% of
our suppliers by volume completed the Higg Index Facility
Environmental Module (FEM) self-assessments. As a company,
GUESS also completes the Higg Brand and Retail Module (BRM)
to assess the impacts of its operations. This tool includes
environmental topics such as packaging, logistics, andchemicals management.

Sustainable sourcing throughthe Higg FEM Index for safer
chemistry and chemicals
management, packaging,logistics, and others

Cotton is a water-intensive crop that comprises over half ofour material use. BCI helps farmers increase water efficiency,
reduce pesticide use, and ensure fair treatment of workers.

Sustainable sourcing,sustainable raw materials

In 2019, GUESS joined the Ellen MacArthur Foundation’s Jeans
Redesign Project to design and make jeans fit for a circular
economy, today. The Project uses the principles of a circular
economy to ensure positive impacts for the environment, society,and the health of those people working in the fashion industry.
GUESS launched products that met the Project’s Guidelines in fall2021 and for all 2022 seasons.

Circularity, sustainable
materials, recycling

GUESS submitted its first CDP climate change report in 2018 andachieved leadership status in 2019. We continue to respond to
CDP annually. In 2022, GUESS was recognized by the CDP to beamong the top 8% for supplier engagement on climate change.

Climate change

The Science Based Targets initiative (SBTi) champions sciencebased target setting in the transition to a low-carbon economy.
GUESS has set and received approval of its ambitious sciencebased targets for our corporate and supply chain greenhouse gas
emissions for 2030.

Climate change

Organization

Membership and Collaboration

Topics Working on Together

Since 2020, GUESS has been a member of Textile Exchange,a non-profit organization positively impacting climate throughaccelerating the use of environmentally preferred materials acrossthe global textile industry.

Sustainable sourcing,sustainable raw materials

In 2019, GUESS became a signatory of the UNFCCC Fashion
Industry Charter for Climate Action. GUESS has since joined
working groups to further contribute and learn how to implement
the charter’s principles and limit global warming to 1.5°C
compared to pre-industrial levels.

Climate change

In partnership with Good360, a global leader in productphilanthropy and purposeful giving, Guess US donated goods
to its communities, such as activewear, outerwear, and knitwear,
as well as blankets and coloring books.

Community support

Since 2016, GUESS has sponsored sustainability and fashionclasses at the Los Angeles Fashion Institute of Design andMerchandising, educating hundreds of students and associates
on material efficiency, circularity, sustainable denim, sustainable
life cycle, and other topics.

Sustainability educationand engagement

In China, we partnered with Inno Community Development
Organization, a non-profit committed to improving workplacetransparency, equality, and public health. We provided aconfidential Handshake Workers’ Hotline that enables 1,000+
workers to report any concerns anonymously.

Supply chain social
compliance, workers’
grievance program

GUESS continues to work together with Homeboy Industries anorganization that provides hope, training, and support to formerly
gang-involved and previously incarcerated individuals.

Community support

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ACTION GUESS & GOALSGUESS ESG Goals (deadline – calendar year)

FY2023 status

GUESS ESG Goals (deadline – calendar year)

FY2023 status

Respect nature

Circular economy, packaging, and waste

ClimateIntroduce or increase repair, resale, and upcycling initiatives in key markets, that truly drive acircular economy (2025)1

New metric tobe established

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)1

To be started

Apply circular design playbook to one capsule per each season (2030)1

To be started

100% product packaging to be recycled and recyclable for all apparel and men’s bags (including
primary and secondary packaging and hangtags) (2030)8

New metric tobe established

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

100% renewable electricity in company operated facilities (2035)

New metric tobe established

Reduce Scope 32 GHG emissions by 30% vs baseline FY2019 (2030)-17%

Climate Positive: exceeding carbon neutrality by removing additional CO2 from atmosphere(2035)1

New metric tobe established

Announce roadmap to achieve SBTs (2024)3

Ongoing1

Responsible materials and products
30% of GUESS global apparel materials portfolio will be environmentally preferred (2023)428%

1

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

New metric tobe established

75% of all fibers used in men’s bags main material will be environmentally preferred (2025)1

New metric tobe established

80% recycled or biobased polyester will be used for the apparel mainline (2025)5

21%

80% recycled or biobased polyester will be used for all apparel brands (2030)6

15%

80% regenerative, recycled, or organic cotton will be used for all apparel brands (2030)1

New metric tobe established

75% of GUESS denim apparel mainline will be GUESS ECO (2030)7

42%

Chemicals, pollution, and water stewardship
Eliminate unnecessary use of persistent organic pollutants (“forever chemicals” / PFAS) in line withthe requirements of our LRSM (2025)1

New metric tobe establishedBe water positive in supply chain: replenishing more water than used in our supply chain (2035)1

New metric tobe established

Clean wastewater – Zero hazardous chemicals leaving wet processors (2030)1

New metric tobe established

Become signatory of ZDHC and adopt ZDHC MRSL (2026)1

To be started

All supply chain ZDHC approved (2030)

New metric tobe established1

Nature and biodiversity
Develop a biodiversity strategy aligned with SBTN (2025)1

To be started

51%

50% of GUESS all apparel mainline will be GUESS ECO (2025)1
35% of GUESS apparel Factory mainline will be Consciously Constructed (2025)

21%

50% of GUESS men’s bags will be GUESS ECO (2025)

New metric tobe established1

11	New goal introduced in GUESS ESG Strategy.
2	Category 1 – Purchased Goods and Services.

6	Previous goal was “100% recycled or biobased polyester for all brands (2029)”; due to constraints on availability, quality, performance and final appearance of thegarment, we had to remodulate this target so we can still consistently challenge the innovation of our products but stay true to GUESS fashion.

3	Previous goal was “Announce roadmap to achieve SBTs (2021)”; with the continuing COVID-19 pandemic and the challenges businesses have faced, we have yet tomeet this goal entirely. Heading into 2023, we are reestablishing our strong commitment to integrating such commitments in our strategy and deliver the expected results.

7	Previous goal was “75% of GUESS denim mainline will be SMART GUESS (2024)”; due to constraints on availability, quality, performance and final appearance of thegarment, we had to remodulate this target so we can still consistently challenge the innovation of our products but stay true to GUESS fashion.

4	Previous goal was “30% of our global materials portfolio will be more sustainable (2023)”; rewording to better specify the goal’s scope.

8	Previous goal was “100% of product packaging to be recycled or recyclable (2025)”; deadline extended to include the whole packaging used during GUESS productlife cycle considering both primary and secondary packaging.

5	Previous goal was “100% recycled or biobased polyester for mainline (2024)”; due to constraints on availability, quality, performance and final appearance of thegarment, we had to remodulate this target so we can still consistently challenge the innovation of our products but stay true to GUESS fashion.

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ACTION GUESS & GOALS continued

GUESS ESG Goals (deadline – calendar year)

FY2023 status

Be a good teammate

GUESS ESG Goals (deadline – calendar year)

FY2023 status

Get things done

Supply chain responsibility and labor rights

Governance and business ethics

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

Ongoing

Align Executive performance incentives with ESG KPI performance (2024)14

Becoming member of best-in-class associations for social compliance (such as The Bangladesh
Accord and Better Work) to ensure all key factories10 have worker safety and wellbeing (2025)1

To be started

Continuously improve GUESS Sustainability Assurance Framework to maintain the highest standards Ongoingfor ESG data quality (ongoing)15

Establish training program for GUESS suppliers in key regions (2023)11

From FY2022
GUESS establisheda quarterly training
program for
GUESS suppliersContinue to obtain “reasonable assurance” of our key ESG metrics and disclosures (ongoing)16

OngoingMove to annual ESG Reporting starting FY2026 (2025)

To be started

91

Ongoing

Responsible marketing
To be started

Review eco label policy in line with emerging best practice (2025)1
Review eco marketing policy in line with emerging best practice (2024)

1

To be started

Increase factory employee access to trainings and development opportunities and grievancemechanism (ongoing)

Ongoing

Develop training and development opportunities to promote positive change for women (2025)12

New metric tobe establishedContinuously improve the current data protection policies to promote sustainable business practices
by avoiding costly data breaches that can harm GUESS and our clients (ongoing)1

Ongoing
Ongoing

Review company marketing and advertising materials and develop plans to ensure diverse
representation (ongoing)1

Ongoing

Establish a global “Bug Bounty Program” to incentive the identification and reporting of potential
security vulnerabilities (2024)1
Implement sustainable global asset management to reduce carbon footprint (ongoing)1

Ongoing

Maintain gender pay parity at all levels and geographic regions (2025)

Corporate: 97%

Data security and privacy

Diversity and inclusion

1

Retail: 98%
Distribution center:
82%
100% of Directors and above trained on harassment prevention in workplace (2025)1

To be started

100% of Managers covered with unconscious bias training (2025)1

To be started

Employee wellbeing and engagement
Ongoing

All associates will be sustainability literate (2025)13
Expand wellness and mental health programs for all employees (2025)

Ongoing

Create a metric to measure internal promotion rate to Senior Manager positions and above versus
external (2025)1

New metric tobe established

Create a metric on learning hours and assess the baseline; disclose medium-term target (2027)1

New metric tobe established11		New goal introduced in GUESS ESG Strategy.
9		Previous goal was “Publish multi-tiered supplier map (2021)”; achieved goal but re-proposed for short term to be an interactive mapping.
10		Factories from which GUESS sources over 250 thousand units per year.
11		Previous goal was “Establish training program for 100% factory owners in key regions (2024)”; rewording to include not only factory owners and anticipated.
12		Previous goal was “Partner with key vendors on disclosures and programs that will lead to positive change for women (2022)”; rewording to better specify the goal’s scope.
13		Previous goal was “100% of product teams educated on sustainability and designing for circularity (2021)”; postponed to 2025 to expand the scope of the goal
including all associates.
14		Previous goal was “Connect ESG performance with new incentive structures (2022)”; with the continuing COVID-19 pandemic and the challenges businesses have
faced, we have yet to meet this goal entirely. Heading into 2023, we are reestablishing our strong commitment to integrating such commitments in our strategy anddeliver the expected results.
15		Previous goal was “Continuously Improve our Internal Audit protocol to maintain highest standards for ESG data quality (ongoing)”; rewording for clarity.
16		Previous goal was “Obtain third-party assurance of non-financial data to increase stakeholder confidence in our reporting”; goal achieved, reworded for continuity.

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ABOUT OUR REPORTGRI 2-2, 2-3, 2-5

About our report
Scope and boundaries

This ESG Report covers the periods from January 31, 2021
to January 29, 2022 (FY2022) and January 30, 2022
to January 28, 2023 (FY2023). Select prior period
information has been presented for comparative purposes
only. Any statements or references to dates that don’t
include “FY” follow the calendar year. For the purposes ofthis ESG Report, GUESS business operations are grouped
into the following segments: Guess US, Guess Canada,
Guess Europe, and Guess Asia. Any reference to “GUESS”
refers collectively to Guess US, Guess Canada, Guess
Europe, and Guess Asia, unless otherwise indicated.
The scope of this ESG Report covers corporate offices,
distribution centers, warehouses, and retail stores directly
owned and operated by GUESS unless otherwise indicated.
Data for licensee operations, third parties to which GUESS
grants the right to manufacture, distribute, or sell GUESS
branded items are not included in this report. We haveselected this scope based on the availability of reliable
data. We continue to increase the scope of our coverageover time.
Data presented in this report includes the entities that areconsolidated for financial reporting purposes, with a few
exceptions for certain KPIs, including:• Data of Guess Korea and Guess Japan are generally
excluded, with the exception of certain metrics of theemployee section and “Climate” section.

• Joint ventures (JVs) not directly managed by GUESS
are generally excluded, primarily due to our limited
influence on their operations.

• Our JV in Russia is included because it is operated

by GUESS. We have included 100% of this JV’s datain our metrics, rather than make adjustments forminority interests.

The content of this report includes ESG topics determined tobe material based on our double materiality assessment,
and are topics that we manage and monitor given theirsignificance to GUESS stakeholders and the sustainablegrowth of the company, as well as the size, number ofassociates, and overall impact of our largest business units
based on revenue.
Our contributions to the United Nations Sustainable
Development Goals (UN SDGs) are also addressed.

Management’s Assertion

The metrics and disclosures referenced in the GRI Index
contained on pages 94-99 were prepared in accordancewith the Global Reporting Initiative Universal Standards(2021) – “GRI Universal Standards”.
The metrics and disclosures referenced in the SASB Index
contained on pages 100-102 were prepared inaccordance with the SASB Apparel, Accessories &Footwear Sustainability Accounting Standard (2018), andthe Multiline and Specialty Retailers & Distributors
Sustainability Accounting Standard (2018) – collectively,
the “SASB Standards”.
Our Scope 1, 2 and 3 greenhouse gas (“GHG”) emissions
contained on page 81 and the related methodologicalstatements on pages 104-106 were prepared inaccordance with the World Resource Institute/World
Business Council for Sustainable Development Greenhouse

Gas Protocol: A Corporate Accounting and ReportingStandard, Revised Edition, including the GHG Protocol
Scope 2 Guidance, An amendment to the GHG Protocol
Corporate Standard – collectively, the “GHG Protocol”.
The KPIs in the ESG data summary tables contained on
pages 81-93 were prepared in accordance with the GHG
Protocol, GRI Universal Standards, the SASB Standards,
and the Supplemental KPIs and criteria on page 103, as
specified within the tables.
Our Scope 1, 2 and 3 greenhouse gas GHG emissions,the metrics and disclosures referenced in the GRI Index,
the metrics and disclosures referenced in the SASB Index,
and the KPIs in the ESG data summary tables referenced
above are collectively referred to as our “Key ESG Metrics
and Disclosures”.
We take responsibility for the completeness, accuracy,
and validity of our Key ESG Metrics and Disclosures.
Management is responsible for the collection, quantification,and presentation of our Key ESG Metrics and Disclosuresand for the selection of the criteria, which we believe
provide an objective basis for measuring and reportingon the Key ESG Metrics and Disclosures.

Estimation uncertainty

Measurement of certain disclosures includes estimatesand assumptions that are subject to inherent measurement
uncertainty resulting, for example, from accuracy andprecision of conversion and other factors. The selection by
Management of different, but acceptable measurement
methods, input data, or assumptions may have resulted inmaterially different amounts or metrics being reported.

Our approach to assurance

We are committed to transparently reporting our progressagainst our ESG Goals and sustainability standards. By
applying our Sustainability Assurance Framework andobtaining third-party assurance, we are holding ourselves tohigher standards, which in turn provides stakeholders withincreased confidence in our Key ESG Metrics and Disclosures.

Internal Audit

Our Internal Audit team has reviewed our FY2022-2023
metrics and data for completeness and accuracy, including
the methodology and calculations. The GUESS Internal
Audit team operates under an Internal Audit Charter
approved by the Board of Directors Audit Committee thatdefines the Internal Audit team’s purpose, as well as its
authority, responsibility, and independent position within
the organization.

Third-party assurance

In addition, KPMG performed an examination engagement
over Management’s assertions as of and for the fiscal years
ended January 29, 2022 and January 28, 2023 describedabove under the “Management’s assertion” section andissued a reasonable assurance report. Please see page 80
for the Independent accountants’ report. For avoidance of
doubt, forward-looking information, including ourcommitments and goals, was not subject to KPMG’s assurance.
In addition, throughout the ESG Report, we’ve included
specific GRI and SASB indicator references on the upper
left-hand corner of relevant pages to help facilitate crossreferencing from the GRI and SASB indices. Accordingly,
pages within the ESG Report without a GRI or SASB indicator
are not subject to KPMG’s assurance, unless otherwise
specified in the Independent accountants’ report on page 80.

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80

INDEPENDENT ACCOUNTANTS’ REPORTGRI 2-5

The Board of Directors and Management
Guess?, Inc.:

KPMG LLP
Two Financial Center
60 South Street
Boston, MA 02111

We have examined management of Guess?, Inc.’s
assertions on page 79 of the GUESS ESG Report Fiscal
Years 2022-2023 (the “ESG Report”) that (1) the metrics
and disclosures included in the GRI index, (2) the metrics
and disclosures included in the SASB index, (3) Guess?,
Inc.’s Scope 1, 2 and 3 greenhouse gas (GHG) emissions
metrics and disclosures, and (4) the key performanceindicators (“KPIs”) in the ESG data summary tables asof and for the years ended January 29, 2022 andJanuary 28, 2023 (collectively, the “Key ESG Metrics
and Disclosures” appearing on pages 81-106) wereprepared in accordance with the Global Reporting
Initiative Universal Standards, the SASB Apparel,
Accessories & Footwear Sustainability AccountingStandard, and the Multiline and Specialty Retailers &Distributors Sustainability Accounting Standard, the World
Resource Institute/World Business Council for Sustainable
Development Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard, Revised Edition,
including the GHG Protocol Scope 2 Guidance, An
amendment to the GHG Protocol Corporate Standard,
and the Supplemental KPIs and criteria, as specified
within the Key ESG Metrics and Disclosures, respectively(collectively, the “Management Assertion”). Guess?, Inc.’smanagement is responsible for its assertion. Our
responsibility is to express an opinion on Management’s
Assertion based on our examination.

Our examination was conducted in accordance withattestation standards established by the American Instituteof Certified Public Accountants in AT-C Section 105,
Concepts Common to All Attestation Engagements,
and AT-C Section 205, Examination Engagements.
Those standards require that we plan and perform theexamination to obtain reasonable assurance about
whether management’s assertion is fairly stated, in allmaterial respects. An examination involves performing
procedures to obtain evidence about management’s
assertion. The nature, timing, and extent of the procedures
selected depend on our judgment, including an assessmentof the risks of material misstatement of management’s
assertion, whether due to fraud or error. We believe thatthe evidence we obtained is sufficient and appropriate
to provide a reasonable basis for our opinion.
We are required to be independent and to meet our otherethical responsibilities in accordance with relevant ethicalrequirements relating to the examination engagement.
As discussed in the “Estimation uncertainty” section on
page 79, measurement of certain disclosures includes
estimates and assumptions that are subject to inherent
measurement uncertainty resulting, for example, fromaccuracy and precision of conversion and other factors.
The selection by management of different, but acceptablemeasurement methods, input data, or assumptions may
have resulted in materially different amounts or metrics
being reported. Obtaining sufficient, appropriate evidence
to support our opinion does not reduce the inherent
uncertainty in the metrics.

Our examination was limited to Management’s Assertion.
All other information presented within the ESG Report,
including forward looking statements, hyperlinked
information, and prospective information such as targets,goals, ambitions, strategy, plans and expectations, wasnot examined by us, and accordingly, we do not express
an opinion or any other form of assurance on suchother information.
In our opinion, Management’s Assertion related to the
Key ESG Metrics and Disclosures as of and for the years
ended January 29, 2022 and January 28, 2023 is fairly
stated, in all material respects.

Boston, Massachusetts
June 28, 2023

KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.

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ESG REPORT FISCAL YEARS 2022–2023

ESG DATA SUMMARY

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

1,576
37,49741,42539,07343,001445,802
Not reported

1,137
29,69432,37730,831
33,514
303,743
Not reported

1,124
25,635
19,42026,75920,544524,296
9,740

1,216
26,213
19,07927,42920,295385,077
11,358Environment
ClimateGHG emissions1 (GRI 305-1, 305-2, 305-3, 305-5)
Scope 1
Scope 2 (Location-based)
Scope 2 (Market-based)
Total Scope 1 and 2 (Location-based)
Total Scope 1 and 2 (Market-based)
Scope 3 (Category 1 – Purchased Goods and Services)
Scope 2 (Market-based) emissions reduction due to RECs purchased

MTCO2e
MTCO2e
MTCO2e
MTCO2e
MTCO2e
MTCO2e
MTCO2eEnergy consumption (GRI 302-1, SASB CG-MR-130a.1)
Non-renewable energy consumption

Electricity consumption2
Heating consumption
Cooling consumption
Total
Renewable Energy Credits
Total
Total energy consumed
Percentage grid electricity
Percentage renewable

Renewable energy consumption
Total energy consumption
Energy consumed in retail and distribution centers

GJ
GJ
GJ
GJ
GJ
GJ
GJ
GJ
GJ

Total energy sold (GJ)

380,558
318,665
209,080
223,71731,305
22,59022,31724,158
2,208
2,200
1,516
1,309
414,071
343,455
232,913249,1850095,721
98,582414,071
343,455
328,634
347,767
362,349
294,317276,216
299,892
93%
93%
94%
93%
Not reported 3 Not reported 3
22%
26%
GUESS does not sell energy, nor does it make any direct purchases ofrenewable energy sources.

Responsible materials and products (GRI 308-1, SASB CG-AA430a.2, Internal Criteria – KPI #1)
New suppliers assessed for environmental impacts 4 (SVR)

Number
Percentage
Number
Percentage
Percentage

Suppliers assessed for environmental impacts 4 (Higg FEM)5
Denim mills reporting to Higg FEM

Not reported
Not reported
37
9%
33%

Not reported
Not reported
43
12%
75%

93
65%
61
17%
60%

107
82%
73
19%
100%

* Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020–2021 Sustainability Report for the Independent accountants’ report.

2 Excluding Renewable Energy Credits (RECs).

1	For Scope 1, 2 and 3 emissions FY2019 is the SBTi baseline – Scope 1 FY2019: 1,539 MTCO2e; Scope 2 FY2019: 39,246 MTCO2e; Scope 3 FY2019: 463,162
MTCO2e.
Breakdown of FY2022 and FY2023 emissions data for all relevant GHGs separately, in metric tons of carbon dioxide (CO2) equivalent (MTCO2e):3	We did not have contracted renewable energy in our energy mix in FY2020 and FY2021 and are therefore unable to claim renewable energy under the Scope 2
Guidance of the GHG Protocol for these years. We are evaluating our renewable energy strategy as part of achieving our science-based target and have started addingRECs into our energy mix starting from FY2022.

FY2022
Scope 1
Scope 2 (Location-based)
Scope 2 (Market-based)

FY2023

CO2

CH4

N 2O

Total

CO2

CH4

N 2O

Total

1,122
25,517
19,390

1
38
6

1
80
24

1,124
25,635
19,4201,215
26,09019,063

0.6
41
3

0.6
82
13

1,216
26,213
19,0794	Starting from FY2022, GUESS introduced a new tool (Sustainable Vendor Rating – SVR) to assess environmental impacts of new suppliers. For future fiscal years, GUESS
intends to deploy the SVR tool to existing suppliers. In this report, new suppliers are counted towards the SVR, while all suppliers are counted towards Higg FEM.
5 Tier 1 suppliers only, GUESS has not yet started to track the completion rate of its Tier 2 suppliers to Higg FEM.

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ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

59%
10%
<1%
1%
0%
29%
<1%

60%
10%
<1%
1%
0%
28%
<1%

62%
9%
<1%
1%
0%
27%
<1%

57%
10%
<1%
2%
0%
30%
<1%

Environment continued
Responsible materials and products continued
GUESS Product Materials Overview by equivalent units purchased6 (GRI 301-1)
Renewable fibers

Non-renewable fibers

CottonCellulosic (including Tencel)
Other – Natural7
Leather
Angora8
Synthetic
Other – MMF

Percentage
Percentage
Percentage
Percentage
Percentage
Percentage
Percentage

Organic materials10
Recycled materials11
Total certified materials
Recycled materials11
Environmentally preferred materials12

Percentage by weight
Percentage by weight
Percentage by weight
Percentage by equivalent units
Percentage by equivalent units
USD $

0.28%
0.22%
0.50%
0.14%
1%
15,999,575

6%
1%
7%
1%
12%
74,190,251

11%
1%
12%
1%
19%
192,710,060

11%
5%
16%
3%
28%
389,365,710

GUESS Factory mainline14
Mainline17
All brands15
Mainline17 denim only
Mainline17 non-denim only
Mainline17 denim and non-denim

Percentage by units
Percentage by equivalent units
Percentage by equivalent units (weight)
Percentage by units
Percentage by units
Percentage by units

Not reported
Not reported
Not reported
3%
2%
2%

Not reported
Not reported
Not reported
21%
16%
17%

1%
14%
8% (6%)
23%
40%
38%

21%
21%
15% (14%)
42%
53%
51%

31,374

27,67049,272

101,515

Environmentally preferred raw material9 (GRI 301-2, SASB CG-AA-440a.2, CG-MR-410a.1)
Certified materials sourced

Certified materials sourced
Sustainable materials sourced
Revenues from third-party certified styles

Environmentally preferred product9 (Internal Criteria – KPI #4, #5, #6)
Consciously Constructed styles13
Recycled or biobased polyester sourced
GUESS ECO styles16

Circular economy, packaging, and waste (Internal Criteria – KPI #3)
Total amount of leftovers diverted from landfills* Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020–2021 Sustainability Report for the Independent accountants’ report.
6	Fiber composition (both equivalent units and weight) is calculated on main fabric only – as reported in the composition label, excluding packaging. Data calculated onpurchased Apparel, Accessories and Footwear merchandise directly purchased by Guess US, Guess Canada, Guess Europe, and Greater China excluding samples andmerchandise not to be sold (e.g. gift, advertising); FY2020 and FY2021 data are calculated on 96% of purchased goods while FY2022 and FY2023 data are calculated
on 98% of purchased goods.
7 Includes alpaca hair, cashmere, linen, mercerized wool, virgin wool, wool, recycled wool, other hair.
8 Any yarn, fur or wool from the Angora rabbit was removed from our supply chain in FY2017.
9	Data calculated on apparel only merchandise directly purchased by Guess US, Guess Canada and Guess Europe, excluding samples and merchandise not to be sold(e.g. gift, advertising). Environmentally preferred materials include items for which we have received or expect to receive the required certification (e.g., Transaction
Certificate “TC” or other supporting evidence). In accordance with industry guidelines, such documentation may be provided up to six-months after the receipt of themerchandise. FY2023 data has been calculated as of our fiscal year-end and estimated for the remaining amount expected to be received within the six-month window
after January 28, 2023. The estimated population, representing 29% of environmentally preferred materials’ equivalent units for FY2023, has been calculated using
historical data for the first six-months of the FY2023. 4% of the estimated population represents Branded Initiatives for which there is no timeframe limitation. Suchestimates were based on judgment and historical knowledge of each individual supplier.
10		OCS and GOTS certifications are aggregated and presented as one certification, “Organic Material”.

Kilograms

11		GRS (including Repreve™ fabric) and RCS certifications are aggregated and presented as one certification, “Recycled Material”.
12		Environmentally preferred materials include both certified materials (i.e. organic and recycled) and more sustainable non-certified materials (e.g., hemp, linen, Lenzing™).
13		Consciously Constructed stands for GUESS Factory off-price products made using more sustainable materials that satisfy minimum requirements as defined by ourinternal guidelines for the given year of development. Consciously Constructed products are marketed as more sustainable product range by GUESS.
14		GUESS Factory mainline stands for off-price mainline collection of GUESS branded clothes for adults, both women and men, that encompasses all apparel categories,
from t-shirts to outerwear. Factory mainline excludes other apparel categories (i.e. Kids, Athleisure, Underwear, Beachwear) and other non-apparel product categories(i.e. Bags, Footwear, Small Leather Goods, Accessories, Home).
15		All brands include mainline.
16		GUESS ECO stands for GUESS full-price products made using more sustainable materials and processes that satisfy minimum requirements as defined by our internal
guidelines for the given year of development. GUESS ECO products are marketed as more sustainable product range by GUESS. In addition to preferred materials,
production method is optional for non-denim and required for denim to be branded GUESS ECO.
17		GUESS mainline stands for full-price mainline collection of GUESS branded clothes for adults, both women and men, that encompasses all apparel categories, fromt-shirts to outerwear. Mainline excludes other GUESS branded apparel categories (i.e. Kids, Athleisure, Underwear, Beachwear, Factory), other non-apparel productcategories (i.e. Bags, Footwear, Small Leather Goods, Accessories, Home) and other brands (i.e. Marciano, GBG, GUESS Jeans U.S.A., GUESS Originals).

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ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023SocialSupply chain responsibility and labor rights
Directly sourced suppliers assessed for social impact (GRI 308-2, 414-2a)

Number

329

246

265

266

Suppliers identified as having significant actual and potential negative social impacts (GRI 308-2, 414-2b)

Percentage

96%

94%

92%

90%

Health and safety

Number

186

123

133

142

Hours of work

Number

120

87

91

108

Wages and benefits

Number

121

80

93

106

Laws and regulations

Number

58

39

43

55

Environment

Number

47

33

28

38

Freedom of association and collective bargaining

Number

24

25

21

32

Monitoring and compliance

Number

33

21

8

13

Communication

Number

16

3

8

7

Health and safety – dormitories

Number

14

9

9

2

18

Harassment

Number

13

3

7

2

Child labor19

Number72

3

2

Number32

02

Number4

0

1

1

Non-discrimination

Number4

2

0

0

Forced labor22

Number3

2

1

0

Suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed
upon as a result of assessment

Percentage

98%

100%

100%

100%

Supplier factories that have been audited to the GUESS supplier Code of Conduct23

Percentage

55%

52%

58%

58%

Supplier factories reporting compliance issues (GRI 308-2, 414-2c)

Subcontracting
Women’s rights

20
21

Relationship with suppliers (GRI 414-2d, SASB CG-AA-430b.1)*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020 - 2021 Sustainability Report for the Independent accountants’ report.

22		Findings related to excessive restrictions placed on basic liberties (clock-in-clock-out to go to toilet).

18		 Findings related to monetary fine or lack of proper procedures, records or training for disciplinary measure management.

23		Directly sourced suppliers (Tier 1) that received POs in fiscal year. The related GRI metric includes the number of assessments performed during the reporting period. The
SASB standards use the word “audit” and also track completion differently. The difference between the GRI and SASB standards means that if we conduct an audit in the
final month(s) of the previous fiscal year and assess the results in the current fiscal year, the number is included for GRI, but not for SASB. In addition, if GUESS does notuse a supplier again in the new fiscal year, it is still counted as an active supplier under SASB.

19		 Findings related to young workers’ overtime issue, lack of proper procedures, document keeping.
20		 Findings related to absence or inadequate equipment in lactation room.
21		 Findings related to lack of specific anti-discrimination policy and missing hiring of workers with disabilities.

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ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

Audits conducted by third-party auditors

Percentage

99.6%

100%

100%

100%

Priority non-conformance rate for suppliers’ labor code

Percentage

7%

6%

2%

2%

Non-conformance associated corrective action rate for suppliers’ labor code

Percentage

97%

100%

100%

100%

Priority non-conformance associated corrective action rate for suppliers’ labor code

Percentage

100%

100%

100%

100%

Percentage of suppliers identified as having significant actual and potential negative social impacts with which relationships
were terminated as a result of assessment

Percentage

0%

0.4%

0.4%

0%

Number of training events

Number30

1

3

Number of suppliers trained

Number

80

0

27

186

Not reported

Not reported

102
(84%)

108
(77%)

Not reported

Not reported

72
(59%)

82
(59%)

Not reported

Not reported

74
(61%)

80
(57%)

Social continued
Supply chain responsibility and labor rights continued
Relationship with suppliers (GRI 414-2e, SASB CG-AA-430b.1, CG-AA-430b.2) continued

Directly sourced suppliers’ training programs24

Description of the greatest labor and environmental, health, and safety risks in the supply chain (GRI 414-2, SASB CG-AA-430b.3)
Health and safety

No or missing machine guards

Number and %Chemicals are not stored inappropriate secondary containers,
kept off the ground, and/or labeledproperly with safety precautions
No/Inadequate health andmedical checks
Hours of work

Overtime in excess of law or code

Number and %Systematic or periodic excessive
overtime on a regular basis
Wages and benefits

Failure to provide 100% of
employees with pension, medical,
and work-related injury insurance
Failure to provide 100% of
employees with unemployment
and maternity insurance*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020 - 2021 Sustainability Report for the Independent accountants’ report.
24		 Suppliers include both vendors and plants. All FY2021 trainings postponed due to COVID-19.

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ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023Social continued
Supply chain responsibility and labor rights continued% of assessments performed by GUESS auditors and others on directly sourced suppliers (Internal Criteria – KPI #2)
AuditsGUESS audits
External audits

External auditors

Percentage

16%

16%

16%

15%

GUESS internal auditors

Percentage

<1%

0%

0%

0%

Sedex

Percentage

26%

25%

24%

30%

BSCI

Percentage

0%

0%

12%

17%

Other

Percentage

19%

16%

7%

6%

Percentage

62%

57%

59%

68%
30%

Total
Certification

WRAP

Percentage

36%

41%

37%

SA8000Percentage

2%

1%

4%

2%

SericoPercentage

<1%

1%

<1%

<1%

Percentage

38%

43%

41%

32%

China

Percentage

42%

27%

25%

31%

Bangladesh

Percentage

15%

23%

32%

29%

India

Percentage

14%

18%

18%

17%

GuatemalaPercentage

7%

5%

3%

3%

Pakistan

Percentage

2%

2%

3%

3%

Vietnam

Percentage

3%

5%

4%

2%

Myanmar

Percentage

3%

4%

3%

2%

TurkeyPercentage

2%

3%

2%

2%

Indonesia

Percentage

2%

2%

2%

2%

Tunisia

Percentage

2%

2%

2%

2%

Italy

Percentage

1%

1%

1%

2%

MexicoPercentage

2%

2%

1%

1%

Sri Lanka

Percentage

1%

1%

1%

1%

Cambodia

Percentage

0%

1%

1%

<1%

Other

Percentage

5%

3%

2%

2%

Total suppliers

Number

438

358

360

375

Quantity received (units)

MillionNot reported

Not reported

62

58

Total

GUESS’ directly sourced apparel, jewelry, and accessories by country and units purchased (GRI 2-6, 301-1, SASB CG-AA-000.A)
25*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020 - 2021 Sustainability Report for the Independent accountants’ report.
25		 This section includes data from Guess US, Guess Canada, Guess Europe, and Guess Asia (China subsidiaries only). Tier 1 suppliers only.

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KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

1%

1%

Diversity and inclusion
Racial/Ethnic group representation of the US employees by category (GRI 405-1, SASB CG-MR-330a.1)
Indigenous American/Alaska Native
AsianBlack or African American
Hispanic or Latinx
Native Hawaiian/Pacific Islander
White
Other
Two or more races

Managers and above including Executives

Percentage

Not reported

Not reported

All other employees

Percentage

Not reported

Not reported

1%0%Managers and above including Executives

Percentage

20%

13%

8%

8%

All other employees

Percentage

7%

7%

6%

6%

Managers and above including Executives

Percentage

4%

8%

12%

14%

All other employees

Percentage

15%

15%

16%

18%

Managers and above including Executives

Percentage

21%

35%

49%

46%

All other employees

Percentage

52%

52%

52%

50%

Managers and above including Executives

Percentage

Not reported

Not reported

1%

1%

All other employees

Percentage

Not reported

Not reported

1%0%Managers and above including Executives

Percentage

50%

36%

24%

24%

All other employees

Percentage

19%

21%

19%

20%

Managers and above including Executives

Percentage

5%

8%

0%

0%

All other employees

Percentage

7%

5%

0%

0%

Managers and above including Executives

Percentage

Not reported

Not reported

5%

6%

All other employees

Percentage

Not reported

Not reported

5%5%Executives only27

Percentage

Not reported

Not reported

0%0%

Corporate

Percentage

Not reported

Not reported

0%0%RetailPercentage

Not reported

Not reported

1%

1%

Executives only27

Percentage

19%

24%

26%

23%

Corporate26

Percentage

18%

20%

19%

19%

Percentage

5%

4%

4%

4%

Racial/Ethnic group representation of the US employees by location (GRI 405-1, SASB CG-MR-330a.1)
Indigenous American/Alaska Native

26

26

Asian

Retail26

Black or African American

Executives only

Percentage

Not reported

Not reported

0%0%

Corporate26

Percentage

9%

9%

9%

9%

Retail26

Percentage

16%

15%

16%

18%

27

*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020 - 2021 Sustainability Report for the Independent accountants’ report.
26		 Excluding Executives.
27		 Executives includes VPs and above.

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87

ESG REPORT FISCAL YEARS 2022–2023

ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

4%

4%

4%

4%

Diversity and inclusion continued
Racial/Ethnic group representation of the US employees by location (GRI 405-1, SASB CG-MR-330a.1) continued
Hispanic or Latinx

Executives only27

Percentage

Corporate

Percentage

26%

26%

27%

28%

Retail26

Percentage

56%

56%

57%

54%

Executives only27

Percentage

Not reported

Not reported

0%0%

Corporate

Percentage

Not reported

Not reported

1%

1%RetailPercentage

Not reported

Not reported

1%

0%

Executives only27

Percentage

77%

72%

66%

69%

Corporate26

Percentage

41%

40%

40%

39%

26

Native Hawaiian/Pacific Islander

26

26

White

RetailPercentage

16%

18%

16%

18%

Executives only27

Percentage

Not reported

Not reported

0%0%

Corporate

Percentage

6%

5%

0%

0%

Percentage

7%

7%

0%

0%

Executives only

Percentage

Not reported

Not reported

4%

4%Corporate26

Percentage

Not reported

Not reported

4%

4%RetailPercentage

Not reported

Not reported

5%

5%

26

Other

26

Retail26

Two or more races

27

26

Employees by Executive Management and associates by retail and corporate by age and gender (GRI 2-9, 405-1)
27

Executive Management – Global level

26

GenderAge*		Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020–2021 Sustainability Report for the Independent accountants’ report.
26		 Excluding Executives.
27		 Executives includes VPs and above.

FemalePercentage

35%

29%

31%

30%

Male

Percentage

65%

71%

69%

70%

Not declared

Percentage

Not reported

Not reported0%0%Below 30

Percentage

Not reported

Not reported

0%

0%

30-50

Percentage

55%

42%

40%

32%

Over 50

Percentage

45%

58%

60%

68%

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ESG REPORT FISCAL YEARS 2022–2023

ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

65%

64%

64%

64%

Diversity and inclusion continued
Employees by Executive Management27 and associates26 by retail and corporate by age and gender (GRI 2-9, 405-1) continued
Associates in Americas – Corporate

GenderAge

Associates in Americas – Retail

GenderAge

Associates in Europe – Corporate

GenderAge

Associates in Europe – Retail

GenderAge*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020–2021 Sustainability Report for the Independent accountants’ report.
26		 Excluding Executives.
27		 Executives includes VPs and above.

FemalePercentage

Male

Percentage

35%

36%

35%

34%

Not declared

Percentage

Not reported

Not reported

1%

2%

Below 30

Percentage

20%

16%

18%

16%

30-50

Percentage

51%

50%

51%

51%

Over 50

Percentage

29%

34%

31%

33%

FemalePercentage

68%

66%

62%

59%

Male

Percentage

25%

23%

22%

22%

Not declared

Percentage

7%

11%

16%

19%

Below 30

Percentage

81%

79%

77%

76%

30-50

Percentage

17%

19%

21%

21%

Over 50

Percentage

2%

2%

2%

3%

FemalePercentage

64%

65%

65%

66%

Male

Percentage

36%

35%

35%

34%

Not declared

Percentage

Not reported

Not reported0%0%Below 30

Percentage

22%

22%

22%

23%

30-50

Percentage

72%

71%

71%

70%

Over 50

Percentage

6%

7%

7%

7%

FemalePercentage

86%

89%

88%

88%

Male

Percentage

14%

11%

12%

12%

Not declared

Percentage

Not reported

Not reported0%0%Below 30

Percentage

69%

64%

67%

67%

30-50

Percentage

30%

35%

32%

32%

Over 50

Percentage

1%

1%

1%

1%

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ESG REPORT FISCAL YEARS 2022–2023

ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

72%

71%

70%

70%

Diversity and inclusion continued
Employees by Executive Management27 and associates26 by retail and corporate by age and gender (GRI 2-9, 405-1) continued
Associates in Asia – Corporate

GenderAge

Associates in Asia – Retail

GenderAge

FemalePercentage

Male

Percentage

28%

29%

30%

30%

Not declared

Percentage

Not reported

Not reported0%0%Below 30

Percentage

12%

9%

10%

8%

30-50

Percentage

84%

84%

84%

83%

Over 50

Percentage

4%

7%

6%

9%

FemalePercentage

87%

86%

86%

85%

Male

Percentage

13%

14%

14%

15%

Not declared

Percentage

Not reported

Not reported0%0%Below 30

Percentage

48%

38%

36%

31%

30-50

Percentage

51%

61%

62%

67%

Over 50

Percentage

1%

1%

2%

2%

FemalePercentage

71%

73%

68%

67%

Male

Percentage

29%

26%

26%

26%

Not declared

Percentage

0%

<1%

6%

7%

FemalePercentage

75%

75%

75%

74%

Male

Percentage

21%

20%

19%

19%

Not declared

Percentage

4%

5%

6%

7%

Management (retail and corporate) and non-management (retail and corporate) by gender (SASB CG-MR-330a.1)
Management28

Other employees*		Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020–2021 Sustainability Report for the Independent accountants’ report.
26		 Excluding Executives.
27		 Executives includes VPs and above.
28		 Managers and above including Executives.

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APPENDICESESG REPORT FISCAL YEARS 2022–2023

90

Asia (Greater China only)
FY2022
FY2023GlobalFY2022

FY2023

ESG DATA SUMMARY continued

KPI

Unit

Americas
FY2022
FY2023

EuropeFY2022

FY2023

Diversity and inclusion continued
Ratio of basic salary breakdown by gender by employee category (Women to Men)29 (GRI 405-2)
Corporate

Ratio

94%

96%

101%

99%

91%

92%

97%

97%

Retail

Ratio

100%

99%

98%

95%

104%

101%

100%

98%

Distribution center

Ratio

79%

82%

N/A

N/A

N/A

N/A

79%

82%

Corporate

RetailDistribution center

Vice President

Ratio

104%

103%

114%

120%

N/A

N/A

107%

108%

Senior Director/Director

Ratio

88%

95%

91%

91%

85%

89%

89%

93%

Senior Manager/Manager with team

Ratio

93%

94%

96%

99%

94%

98%

95%

96%

Senior Manager/Manager without team

Ratio

95%

99%

112%

95%

89%

83%

101%

96%

Other employees

Ratio

88%

88%

93%

92%

94%

97%

92%

91%

Store Manager

Ratio

101%

99%

96%

93%

118%

107%

100%

98%

Other employees

Ratio

100%

98%

99%

98%

90%

96%

99%

98%

Vice President

Ratio

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Senior Director/Director

Ratio

58%

67%

N/A

N/A

N/A

N/A

58%

67%

Senior Manager/Manager with team

Ratio

86%

86%

N/A

N/A

N/A

N/A

86%

86%

Senior Manager/Manager without team

Ratio

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Other employees

Ratio

94%

93%

N/A

N/A

N/A

N/A

94%

93%

29		Our corporate categories include corporate associates working at our headquarters across the globe; our distribution center categories include those working at our directly operated distribution centers in US and Canada; and our retail categories span directly employed retail employees across the Globe. Ratios have been calculated at Americas
level, Europe level and Greater China level and then aggregated at Global level. The ratios have been calculated on 92% of employees who had comparable job position (i.e., same employee category) of different genders in the same country for FY2022 and on the 91% for FY2023.

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91

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ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

Employee wellbeing and engagement
Average hourly wage (excl. Overtime) of retail employees/Average hourly wage (excl. Overtime) of distribution center employees (SASB CG-MR-310a.1)30, 31
Americas (retail)Canada32

USD $

12

13

14

14

United States32

USD $

14

14

16

17

Americas (distribution centers)
Canada

USD $

16

20

20

18

US

USD $

18

25

26

25

USD $

10

11

11

9

Austria

USD $

14

15

15

16

Belgium

USD $

13

14

13

14

Europe (retail)AndorraCyprus32

USD $

7

8

8

8

Czechia

USD $

9

10

9

9

Denmark32

USD $

21

22

19

19

Finland32

USD $

14

15

14

13

France

USD $

13

14

13

14

Germany

USD $

14

16

14

15

32

USD $

6

7

6

7

Hungary

USD $

6

6

7

6

Greece
India

USD $

1

No retail employees

No retail employees

No retail employees

Ireland32

USD $

13

15

13

14

Italy

USD $

12

13

12

11

Kazakhstan

USD $

3

3

3

4

Luxembourg

USD $

14

17

15

15

Netherlands

USD $

12

13

12

14

Norway32

USD $

19

19

17

17

Poland

USD $

6

6

6

6

Russia

USD $

3

3

4

4

Singapore

USD $

9

10

10

10

*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020 - 2021 Sustainability Report for the Independent accountants’ report.
30		To translate the average hourly wage (excl. Overtime) of retail employees from source currency to USD, the Company used the spot rates from the date corresponding
to the fiscal year-end average wage are calculated on basic salary only (w/o commissions).

31		The SASB Guidance requires the disclosure of average hourly wages by location, in line with SEC segment reporting. However, in order to offer readers acomprehensive perspective on salaries across countries with highly varying pay scales in the same region, we present the data by country.
32		 Average wage is calculated on basic salary only (w/o commissions).

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92

ESG REPORT FISCAL YEARS 2022–2023

ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

Employee wellbeing and engagement continued
Average hourly wage (excl. Overtime) of retail employees/Average hourly wage (excl. Overtime) of distribution center employees (SASB CG-MR-310a.1) continued
Europe (retail) continued
Spain

USD $

14

12

11

11

Sweden32

USD $

24

18

15

15

Switzerland

USD $

27

30

26

28

Turkey32

USD $

3

3

2

3

32

USD $

12

13

13

13

Chinese Mainland

USD $

5

5

6

5

United Kingdom
Asia (retail)Hong Kong SAR

USD $

8

7

10

10

Macau SAR

USD $

9

8

13

12

Taiwan Region

USD $

6

6

9

8

Retail and distribution center employees earning minimum wage (SASB CG-MR-310a.1)
Earning minimum wage

Exceeding minimum wage

Americas

Percentage

22%

15%

23%

17%

EuropePercentage

38%

10%

16%

15%

Asia (Greater China only)

Percentage

4%

7%

1%

0%

Americas

Percentage

78%

85%

77%

83%

EuropePercentage

62%

90%

84%

85%

Asia (Greater China only)

Percentage

96%

93%

99%

100%

Turnover rate for retail and distribution center employees (SASB CG-MR-310a.2)
Voluntary turnover

Percentage

Not reported

36%

41%

42%

Involuntary turnover

Percentage

Not reported

15%

11%

11%

Male

Percentage

67%

67%

63%

71%

Corporate Board of Directors diversity (GRI 2-9, 405-1)
GenderFemalePercentage

33%

33%

37%

29%

Ethnicity

White

Percentage

89%

89%

88%

86%

Hispanic or Latinx

Percentage

11%

11%

12%

14%

Age

30-50

Percentage

11%

11%

0%

0%

Over 50

Percentage

89%

89%

100%

100%

*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020 - 2021 Sustainability Report for the Independent accountants’ report.
32		 Average wage is calculated on basic salary only (w/o commissions).

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93

ESG REPORT FISCAL YEARS 2022–2023

ESG DATA SUMMARY continued

KPI

Unit

FY2020 *FY2021 *FY2022

FY2023

Number

7,000

5,500

5,500

5,500

TOTAL – as of
FY2023

Employee wellbeing and engagement continued
Employee numbers (total) (GRI 2-7, 405-1, SASB CG-MR-330a.1)33
AmericasTotal workforce
FemalePercentage

70%

68%

65%

63%

Male

Percentage

28%

28%

28%

28%

Not declared

Percentage

2%

4%

7%

9%

FemalePercentage

66%

64%

60%

58%

Male

Percentage

26%

23%

22%

22%

Not declared

Percentage

8%

13%

18%

20%

Regular

Percentage

99.9%

99.9%

100%

100%

Temporary

Percentage

0.1%

0.1%

0%

0%

Full time

Part time

EuropeFull time

Part time

Total workforce

Number

5,000

4,000

5,000

5,500

FemalePercentage

77%

77%

77%

77%

Male

Percentage

23%

23%

23%

23%

Not declared

Percentage

0%

0%

0%

0%

FemalePercentage

87%

92%

90%

90%

Male

Percentage

13%

8%

10%

10%

Not declared

Percentage

0%

0%

0%

0%

Regular

Percentage

74%

91%

73%

78%

Temporary

Percentage

26%

9%

27%

22%

Asia
Full time

Part time

Total workforce

Number

1,500

1,000

1,000

1,000

FemalePercentage

84%

81%

80%

79%

Male

Percentage

16%

19%

20%

21%

Not declared

Percentage

0%

0%

0%

0%

FemalePercentage

78%

85%

73%

82%

Male

Percentage

22%

15%

27%

18%

Percentage

0%

0%

0%

0%

RegularNot declared

Percentage

92%

90%

88%

91%

Temporary

Percentage

8%

10%

12%

9%

39%

61%

100%

48%

52%

100%

93%

7%

100%

*		 Subject to KPMG’s prior examination engagement. Please see page 91 of the FY2020–2021 Sustainability Report for the Independent accountants’ report.
33		Differing from the requirements of GRI 2-7, we have chosen to present these metrics as percentages rather than absolute values. This decision was made to enhance the ease of year-over-year comparison and to provide a more accurate representation of our workforce composition. However, even though the data breakdown is in percentages,
we have included the total number of headcounts for each main data aggregation. This approach allows for a straightforward calculation of the absolute values for each sub-category, as mandated by GRI 2-7. Data on headcounts as at the end of Fiscal Year. “Temporary” refers to seasonal workers hired for specified amount of time; “Full Time”
refers to associates that work a full week using country-specific definitions of full time. There are no significant fluctuations across employees’ categories between fiscal years.

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APPENDICESESG REPORT FISCAL YEARS 2022–2023

94

GRI INDEXGRI index
Disclosure Number

Disclosure Title

Guess?, Inc. has reported the information within and referenced in this GRI index for the periods January 31, 2021 to January 29, 2022
(FY2022) and January 30, 2022 to January 28, 2023 (FY2023) in accordance with the GRI Standards (2021).
In addition, we have included specific GRI indicator references within this ESG Report on specific pages’ upper left hand corner to serve
as a cross-reference from the sections of the ESG Report that are referenced in the “Location” column herein.
GRI 1 used: Foundation 2021; Applicable GRI sector standard: none.
ReportCoverage Location

GRI 2: General Disclosures (2021)
1. The organization and its reporting practice2-1
2-2

Organizational details
Entities included in the organization’s sustainability reporting

2-3

Reporting period, frequency, and contact point

About GUESSAbout GUESSAbout our report
For the complete list of legal entities refer to 10K – Exhibit 21.1 List of Subsidiaries
About our report
The frequency of ESG reporting is biennial.
Contact us at sustainability@guess.com if you have a questions about the report or reported information.

2-4
2-5

Restatements of information
External assurance

No restatements in this report
Governance and business ethics (GUESS Sustainability Assurance Framework, External reasonable assurance)
About our report
Independent accountants’ report

2. Activities and workers
2-6

Activities, value chain, and other business relationships

2-7
2-8

Employees
Workers who are not employees

About GUESSSupply chain responsibility and labor rights (Our supply chain, Total suppliers used in FY2023)
ESG data summary (GUESS’ directly sourced apparel, jewelry, and accessories by country and units purchased)
ESG data summary (Employee numbers (total))
The number of workers who are not employees is managed at local level, fluctuate on a daily basis, and is not administered centrally, therefore we cannot provide an headcount number.
Most of these workers who are not employees work in our distribution centers managed and administered by 3PLs and therefore are excluded from the scope of this ESG Report.
GUESS employees are reported as headcounts, at year-end basis - see GRI 2-7.

3. Governance
2-9

Governance structure and composition

2-10

Nomination and selection of the highest governance body

2-11
2-12

Chair of the highest governance bodyRole of the highest governance body in overseeing the management of impacts

Report Coverage Key:

Full

PartialOmission

Governance and business ethics (ESG governance)
ESG data summary (Employees by Executive Management and associates by retail and corporate by age and gender, Corporate Board of Directors diversity)
Proxy statement FY2023 - DIRECTOR AND EXECUTIVE OFFICERS (pag. 20), CORPORATE GOVERNANCE AND BOARD MATTERS - Board
Independence, Structure (pag. 27, 28, 29) and Board Leadership Structure (pag. 31)
Proxy statement FY2023 - CORPORATE GOVERNANCE AND BOARD MATTERS - Board Independence, Structure and Committee Composition(pag. 27-28) and Consideration of Director Nominees (pag. 29)
Proxy statement FY2023 - CORPORATE GOVERNANCE AND BOARD MATTERS - Board Leadership Structure (pag. 31-32)
Proxy statement FY2023 - CORPORATE GOVERNANCE AND BOARD MATTERS - Our Commitment to Sustainability (pag. 33) and Risk Oversight(pag. 34)

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95

GRI INDEX continued

Disclosure Number

Disclosure Title

ReportCoverage Location

GRI 2: General Disclosures (2021) continued
3. Governance continued
2-13

Delegation of responsibility for managing impacts

2-14
2-15

Role of the highest governance body in sustainability reporting
Conflicts of interest

2-16

Communication of critical concerns

Governance and business ethics (ESG governance)
Proxy statement FY2023 - CORPORATE GOVERNANCE AND BOARD MATTERS - Our Commitment to Sustainability (pag. 33)
Proxy statement FY2023 - CORPORATE GOVERNANCE AND BOARD MATTERS - Our Commitment to Sustainability (pag. 33)
Proxy statement FY2023 - CORPORATE GOVERNANCE AND BOARD MATTERS - Board Independence, Structure (pag. 27) and CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS (pag. 82)
Governance and business ethics (Code of ethics)
We have not had any instances of critical concerns communicated through our formal grievance mechanisms during the reporting period. From time to time, we hear from stakeholders such as
NGOs, investors or press outlets, with questions or concerns about specific corporate sustainability topics (like those related to cotton sourced from the Xinjiang region in China and its impact on
the Uyhgur people, or the environmental impacts of certain materials used in our products). Such inquiries are considered internally, including through Senior Management, and, as appropriate,
are included in communications with the Board or Committees of the Board related to sustainability and sustainability reporting.

2-17
2-18

Collective knowledge of the highest governance body
Evaluation of the performance of the highest governance body

2-19

Remuneration policies

2-20

Process to determine remuneration

2-21

Annual total compensation ratio

FY2023 Annual Report, 10K - PART I - ITEM 1. Business - Strengthening Sustainability Oversight (pag. 11)
Proxy statement FY2023 - ELECTION OF DIRECTORS (pag. 12), COMPENSATION OF THE NAMED EXECUTIVE OFFICERS (pag. 13), ADVISORYVOTE ON THE FREQUENCY OF FUTURE SHAREHOLDER VOTES ON THE COMPENSATION OF THE NAMED EXECUTIVE OFFICERS (pag. 16),CORPORATE GOVERNANCE AND BOARD MATTERS - Board Independence, Structure (pag. 29) and Board Leadership Structure (pag. 32)
Proxy statement FY2023 - Compensation Discussion and Analysis - Executive Compensation Program Philosophies and Objectives (pag. 43), Executive
Compensation Program Elements for Fiscal 2023 (pag. 45) and 401(k) Retirement Benefits (pag. 51)
Proxy statement FY2023 - EXECUTIVE AND DIRECTOR COMPENSATION (pag. 37), Compensation Discussion and Analysis - The Role of the
Independent Compensation Consultant (pag. 44) and Shareholder Engagement and the Role of Shareholder Say-on-Pay Votes (pag. 45)
Proxy statement FY2021 - CEO Pay-Ratio Disclosure (pag. 70)
Proxy statement FY2022 - CEO Pay-Ratio Disclosure (pag. 90)
Proxy statement FY2023 - CEO Pay-Ratio Disclosure (pag. 74)
The information in the Proxy Statement is disclosed as per the Exchange Act. The percentage of increase in annual total compensation for the CEO is available comparing the data of CEO
Pay-Ratio across fiscal years as reported in the Proxy Statements.

4. Strategy, policies, and practices
2-22Statement on sustainable development strategy

2-23

Policy commitments

2-24
2-25

Embedding policy commitments
Processes to remediate negative impacts

Report Coverage Key:

Full

PartialOmission

A message from our CEO, Carlos Alberini
A message from our Co-Founder and Chief Creative Officer, Paul Marciano
ACTION GUESSManagement of material topics
Management of material topics
Supply chain responsibility and labor rights (Amplifying workers’ voices, Audits and remediation)
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GRI INDEX continued

Disclosure Number

Disclosure Title

ReportCoverage Location

GRI 2: General Disclosures (2021) continued
4. Strategy, policies, and practices continued
2-26

Mechanisms for seeking advice and raising concerns

2-27Compliance with laws and regulations

Supply chain responsibility and labor rights (Amplifying workers’ voices)
Diversity and inclusion (Diversity and inclusion at GUESS)FY2023 Annual Report, 10K - PART I - ITEM 1. Business - Government Regulations (pag. 12) and Notes to consolidated financial statements (pag. F-45)
Any financially material not compliance with laws and regulation is reported in the Form 10-K where also the methodology to define their significance is described.

2-28

Membership associations

Stakeholder engagement (Partnerships and collaboration)

5. Stakeholder engagement
2-29
2-30

Approach to stakeholder engagement
Collective bargaining agreements

Stakeholder engagement (Stakeholder engagement, Who and how we engage)
Omission for information unavailable / incomplete
We do not currently report data of employees covered by collective bargaining agreements, but we are working to implement a process to collect and report this information to meet such GRI
requirement in future ESG reporting.
Collective bargaining agreements, where applicable, differ from country to country and, within a same country, they may vary in terms of employee category. Due to the complexity andfragmentation of this information, we are still working to collect it from more than 50 legal entities across the world and we will be able to report it in the next ESG Report.

GRI 3: Material Topics (2021)
3-1
3-2
3-3

Process to determine material topics
List of material topics
Management of material topics

Materiality, Stakeholder engagement (Stakeholder engagement, Who and how we engage)
Materiality
Management of material topics

Environment
GRI 301: Materials (2016)
301-1

Materials used by weight or volume301-2

Recycled input materials used

ESG data summary (GUESS Product Materials Overview by equivalent units purchased, GUESS’ directly sourced apparel, jewelry, and accessories bycountry and units purchased)
ESG data summary (Environmentally preferred raw material)
Fiber composition (both equivalent units and weight) is calculated on main fabric only – as reported in the composition label, excluding packaging. Data calculated on purchased Apparel,
Accessories and Footwear merchandise directly purchased by Guess US, Guess Canada, Guess Europe, and Greater China excluding samples and merchandise not to be sold (e.g. gift,
advertising); FY2020 and FY2021 data are calculated on 96% of purchased goods while FY2022 and FY2023 data are calculated on 98% of purchased goods.

GRI 302: Energy (2016)
302-1

Energy consumption within the organization

302-4

Reduction of energy consumption

Climate (Reducing our carbon footprint)
ESG data summary (Energy consumption)
Methodological statements (Standards, methodologies, assumptions, and/or calculation tools and source of the conversion factors used for energy calculations)
Climate (Reducing our carbon footprint)
In FY2022 and FY2023 we accounted reduction in total energy consumption of -50,320 GJ (-13%) and -31,187 GJ (-8%), respectively, compared to baseline of FY2019. Given the nature of ourbusiness, the reduction in total energy consumption is due to different factors: while energy efficiency measures may have played a role in optimizing our operations (such as new concept storeswith more energy efficient appliances), factors such as changes in sales levels, new store openings and closures, or variations in opening hours and/or weather conditions could impact energy
consumption too. Therefore, a breakdown of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives only is not immediate.

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GRI INDEX continued

Disclosure Number

Disclosure Title

ReportCoverage Location

Environment continued
GRI 303: Water and Effluents (2018)
303-1

Interactions with water as a shared resource

Chemicals, pollution, and water stewardship (Water stewardship at GUESS)Management of material topics (Significant topics)

GRI 304: Biodiversity (2016)
304-2

Significant impacts of activities, products, and services on biodiversity

Management of material topics (Significant topics)

GRI 305: Emissions (2016)
305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

305-5

Reduction of GHG emissions

Climate (Reducing our carbon footprint)
ESG data summary (GHG emissions)
Methodological statements (Methodological statements for carbon and energy, Scope 1 and Scope 2 calculation)
Climate (Reducing our carbon footprint)
ESG data summary (GHG emissions)
Methodological statements (Methodological statements for carbon and energy, Scope 1 and Scope 2 calculation)
Climate (Reducing our carbon footprint)
ESG data summary (GHG emissions)
Methodological statements (Methodological statements for carbon and energy, Scope 3 calculation)
According to GHG protocol we reported on the Scope 3 Category 1 - Purchased Goods and Services.

Climate (Reducing our carbon footprint)
ESG data summary (GHG emissions)
Methodological statements (Methodological statements for carbon and energy, Scope 1 and Scope 2 calculation, Scope 3 calculation)

GRI 308: Supplier Environmental Assessment (2016)
308-1
308-2

New suppliers that were screened using environmental criteria
Negative environmental impacts in the supply chain and actions taken

ESG data summary (Responsible materials and products)
Supply chain responsibility and labor rights (Audits and remediation)
ESG data summary (Directly sourced suppliers assessed for social impact, Suppliers identified as having significant actual and potential negative social
impacts, Supplier factories reporting compliance issues)

SocialGRI 404: Training and Education (2016)
404-1

Average hours of training per year per employee

Omission for information unavailable / incomplete
We do not currently report data of employees’ hours of training per year, but we are working to implement a process to collect and report this information to meet such GRI requirement in future
ESG reporting. Despite information on the average number of hours of training is not available, we have disclosed the key training programs developed to support the growth and development of
our associates.

404-2

Report Coverage Key:

Programs for upgrading employee skills and transition assistance programs

FullPartialOmission

Employee wellbeing and engagement (Employee benefits, Employee training and development)

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GRI INDEX continued

Disclosure Number

Disclosure Title

ReportCoverage Location

Social continued
GRI 404: Training and Education (2016) continued
404-3

Percentage of employees receiving regular performance and careerdevelopment reviews

Omission for information unavailable / incomplete
GUESS employees received a regular performance and career development review during the reporting period. Currently, the tracking of the completion rate of the performance reviews of some
employees categories in certain countries is not of adequate quality to report, but we are working to implement a process to collect and report this information to meet such GRI requirement in
future ESG reporting.

GRI 405: Diversity and Equal Opportunity (2016)405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men

Diversity and inclusion (Gender diversity)
ESG data summary (Racial/Ethnic group representation of the US employees by category, Racial/Ethnic group representation of the US employees by
location, Employees by Executive Management and associates by retail and corporate by age and gender, Corporate Board of Directors diversity,
Employee numbers (total))
Diversity and inclusion (Gender diversity)
ESG data summary (Ratio of basic salary breakdown by gender by employee category (Women to Men))

GRI 406: Non-discrimination (2016)406-1

Incidents of discrimination and corrective actions taken

Omission for confidentiality
GUESS considers the information confidential and cannot report it publicly. Despite confidentiality constraints, we have disclosed our approach to the management about potential discriminationin the section “Diversity and inclusion at GUESS” and provide supporting detail in “Management of material topics”.

GRI 407: Freedom of Association and Collective Bargaining (2016)
407-1

Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk

Supply chain responsibility and labor rights (Supply chain social compliance, Our supply chain, Our approach to supply chain social responsibility,
Amplifying workers’ voices, Supply chain assessment, Audits and remediation)

GRI 408: Child Labor (2016)
408-1

Operations and suppliers at significant risk for incidents of child labor

Supply chain responsibility and labor rights (Supply chain social compliance, Our supply chain, Our approach to supply chain social responsibility,
Supply chain assessment, Audits and remediation)

GRI 409: Forced or Compulsory Labor (2016)409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

Supply chain responsibility and labor rights (Supply chain social compliance, Our supply chain, Our approach to supply chain social responsibility,
Supply chain assessment, Audits and remediation)

GRI 414: Supplier Social Assessment (2016)
414-1
414-2

Report Coverage Key:New suppliers that were screened using social criteria
Negative social impacts in the supply chain and actions taken

Full

PartialOmission

Supply chain responsibility and labor rights (Our approach to supply chain social responsibility)
Supply chain responsibility and labor rights (Supply chain social compliance, Our supply chain, Our approach to supply chain social responsibility,
Supply chain assessment)
ESG data summary (Supply chain responsibility and labor rights, Supplier factories reporting compliance issues, Relationship with suppliers,
Description of the greatest labor and environmental, health, and safety risks in the supply chain)

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GRI INDEX continued

Disclosure Number

Disclosure Title

ReportCoverage Location

Social continued
GRI 416: Customer Health and Safety (2016)
416-1
416-2

Assessment of the health and safety impacts of product and service categories
Incidents of non-compliance concerning the health and safety impacts of products
and services

Chemicals, pollution, and water stewardship (Our approach to safe chemicals)
Chemicals, pollution, and water stewardship (Our approach to safe chemicals)Management of material topics (Priority topics)
GUESS has had no critical compliance issues in this reporting period. Currently, we do not track non critical compliance issues. In addition, we have disclosed our approach to prohibit or limit
chemicals that may arm our products’ safety in the section “Chemicals, pollution, and water stewardship (Our approach to safe chemicals)” and provided supporting detail in “Management ofmaterial topics”.

GRI 417: Marketing and Labeling (2016)
417-1
417-2

Requirements for product and service information and labeling
Incidents of non-compliance concerning product and service information and labelingResponsible marketing (Product information and labeling)
Responsible marketing (Product information and labeling)
Management of material topics (Significant topics)
GUESS has had no non-compliance with regulations and/or voluntary codes in this reporting period. GUESS deems material incidents based on financial scoping (financially relevant andreported also in the Annual Report - 10K).

417-3

Incidents of non-compliance concerning marketing communications

Responsible marketing (Product information and labeling)
Management of material topics (Significant topics)
GUESS has had no non-compliance with regulations and/or voluntary codes in this reporting period. GUESS deems material incidents based on financial scoping (financially relevant andreported also in the Annual Report - 10K).

GRI 418: Customer Privacy (2016)
418-1

Report Coverage Key:

Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data

Full

PartialOmission

Omission for confidentiality
GUESS considers the information confidential and cannot report it publicly. Despite confidentiality constraints, we have disclosed our approach to privacy and data security in the sections“Responsible marketing (Customer data privacy)” and “Data security and privacy” and provided supporting detail in “Management of material topics”.

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SASB INDEXSASB index
Disclosure Number

Disclosure Title

We have included specific SASB indicator references within this ESG Report on specific pages’ upper left hand cornerto serve as a cross-reference from the sections of the ESG Report that are referenced in the “Location” column herein.
ReportCoverage Location

Apparel, accessories, and footwear
Management of Chemicals in Products
CG-AA-250a.1

Discussion of processes to maintain compliance with restricted substances regulations

CG-AA-250a.2

Discussion of processes to assess and manage risks and/or hazards associated with chemical in productChemicals, pollution, and water stewardship (Our approach to safe chemicals)
GUESS is requiring to comply with chemical management to its Tier 1 suppliers that are responsible to assure the compliance of their suppliers as well.

Chemicals, pollution, and water stewardship (Our approach to safe chemicals)Management of material topics (Priority topics)

Environmental Impacts in the Supply Chain
CG-AA-430a.1

Percentage of:(1) Tier 1 supplier facilities(2) Supplier facilities beyond Tier 1 in compliance with wastewater discharge permits and/or contractual agreement

Chemicals, pollution, and water stewardship (Working with suppliers, Water-saving technologies)
Management of material topics (Priority topics)

CG-AA-430a.2

Percentage of:(1) Tier 1 supplier facilities(2) Supplier facilities beyond Tier 1 that have completed the Sustainable Apparel Coalition’s Higg Facility
Environmental Module (Higg FEM) assessment or an equivalent environmental data assessment

ESG data summary (Responsible materials and products)

GUESS has not yet started to track the completion rate of its Tier 2 suppliers.

GUESS has not yet started to track the completion rate of its Tier 2 suppliers.

Labor Conditions in the Supply Chain
CG-AA-430b.1

CG-AA-430b.2
CG-AA-430b.3

Percentage of:(1) Tier 1 supplier facilities(2) Supplier facilities beyond Tier 1 that have been audited to a labor code of conduct(3) Percentage of total audits conducted by a third-party auditor
Priority non-conformance rate and associated corrective action rate for suppliers’ labor code of conduct audits
Description of the greatest:(1) Labor(2) Environmental, health, and safety risks in the supply chain

Supply chain responsibility and labor rights (Supply chain social compliance, Our approach to supply chain social responsibility)
ESG data summary (Relationship with suppliers)
GUESS has not yet started to track the completion rate of its Tier 2 suppliers.

Supply chain responsibility and labor rights (Supply chain social compliance, Our supply chain, Our approach to supply chainsocial responsibility, Supply chain assessment, Audits and remediation)
ESG data summary (Relationship with suppliers)
Supply chain responsibility and labor rights (Supply chain assessment)
ESG data summary (Description of the greatest labor and environmental, health, and safety risks in the supply chain)

Raw Materials Sourcing
CG-AA-440a.1

Description of environmental and social risks associated with sourcing priority raw materials

CG-AA-440a.2

Percentage of raw materials third-party certified to an environmental and/or social sustainability standard, by standard

Responsible materials and products (Responsible material sourcing, Reduce vulnerability, Using environmentally preferredmaterials)
ESG data summary (Environmentally preferred raw material)

Activity Metric
CG-AA-000.A

Report Coverage Key:

Number of:(1) Tier 1 suppliers(2) Suppliers beyond Tier 1
Full

PartialOmission

ESG data summary (GUESS’ directly sourced apparel, jewelry and accessories by country and units purchased)
GUESS is not currently able to provide an accurate number for its full list of Tier 2 suppliers at this time.

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SASB INDEX continued

Disclosure Number

Disclosure Title

ReportCoverage Location

Multiline and Specialty Retailers & Distributors
Energy Management in Retail & Distribution
CG-MR-130a.1(1) Total energy consumed(2) Percentage grid electricity(3) Percentage renewable

ESG data summary (Energy consumption)

Description of approach to identifying and addressing data security risks(1) Number of data breaches(2) Percentage involving personally identifiable information (PII)(3) Number of customers affected

Data security and privacy
Responsible marketing (Customer data privacy)
Data security and privacy(1) Average hourly wage(2) Percentage of in-store employees earning minimum wage, by region(1) Voluntary(2) Involuntary turnover rate for in-store employees
Total amount of monetary losses as a result of legal proceedings associated with labor law violations

ESG data summary (Average hourly wage (excl. Overtime) of retail employees/Average hourly wage (excl. Overtime) ofdistribution center employees, Retail and distribution center employees earning minimum wage)
ESG data summary (Turnover rate for retail and distribution center employees)

Data Security
CG-MR-230a.1
CG-MR-230a.2

GUESS is committed to assuring the protection of personal information of our customers, and taking care to implement best practices and follow the regulatory
safeguards within each country we operate. To learn more about our general data security program, refer to Sections “ Responsible marketing (Customer data
privacy)” and “Data security and privacy”. Any financially material disclosure on this matter would be included in our Form 10-K.

Labor Practices
CG-MR-310a.1
CG-MR-310a.2
CG-MR-310a.3

Guess?, Inc. operates in approximately 100 countries around the world, and is committed to provided a workplace where our associates thrive. We are proud of theinvestment we make to train and develop our associates, and create a culture that empowers our retail teams to take pride and ownership of the store in which theywork. We have systems in place to assure that we uphold relevant labor laws in the jurisdictions in which we operate. However, Guess?, Inc. does on occasion
receive lawsuits or demands related to wage and hour violations. Any financially material losses related to labor law violations would be disclosed in SEC reporting
documents. To learn more about our employees and company culture, please refer to sections “Diversity and inclusion” and “Employee wellbeing and engagement”.
Any financially material disclosure on this matter would be included in our Form 10-K.

Workforce Diversity & Inclusion
CG-MR-330a.1

Percentage of gender and racial/ethnic group representation for:(1) Management(2) All other employees

Diversity and inclusion (Diversity and inclusion at GUESS, Ethnic diversity, Integrating D&I into HR processes and tools, D&I training)
ESG data summary (Racial/Ethnic group representation of the US employees by category, Racial/Ethnic group representation of
the US employees by location, Management (retail and corporate) and non-management (retail and corporate) by gender,
Employee numbers (total))

CG-MR-330a.2

Total amount of monetary losses as a result of legal proceedings associated with employment discrimination

Diversity and inclusion is a core value for GUESS, and is fundamental to the way we do business. We appreciate and understand the importance of creating anenvironment in which all of our employees feel valued, included and empowered, and we strive to ensure that our workforce is reflective of the communities in which
we live and work. Guess?, Inc. is an equal opportunity employer that operates without regard to age, ancestry, arrest record, citizenship, race of color, marital orparental status, military discharge status, national origin, pregnancy, religion, sex, sexual orientation, gender identify, union activity, or physical or mental disability,
or medical condition unrelated to the individual’s ability to perform the job. Any financially material losses as a result of legal proceedings associated with
employment discrimination would be reported in our SEC reporting documents.
For more information refer to the “Diversity and inclusion” section of the ESG Report.

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SASB INDEX continued

Disclosure Number

Disclosure Title

ReportCoverage Location

Multiline and Specialty Retailers & Distributors continued
Product Sourcing, Packaging & Marketing
CG-MR-410a.1

Revenue from products third-party certified to environmental and/or social sustainability standards

ESG data summary (Environmentally preferred raw material)

CG-MR-410a.2

Discussion of processes to assess and manage risks and/ or hazards associated with chemicals in products

Chemicals, pollution, and water stewardship (Our approach to safe chemicals)

CG-MR-410a.3

Discussion of strategies to reduce the environmental impact of packaging

Circular economy, packaging, and waste (Enhancing our packaging)

CG-MR-000.A

Number of retail locations and DCs

FY2023 Annual Report, 10K - PART I - Logistics - (pag. 8), 10K - PART II - Executive Summary - Global Store Count (pag. 44)

CG-MR-000.B

Total area of retail space and DCs

FY2023 Annual Report, 10K - PART I - ITEM 1. BUSINESS - Business Strengths (pag. 2), 10K - PART I - ITEM 2. Properties(pag. 38)

Activity Metric

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SUPPLEMENTAL KPIS AND CRITERIA

Supplemental KPIs and criteria
This table provides the criteria for certain supplemental key performance indicators (KPIs) included in the ESG data summary that are in addition to the metrics used to satisfy GRI and SASB standards requirements.
KPI number, title and criteria

Location

1. GUESS denim mills that fulfilled Higg FEM
Ratio of GUESS denim mills that fulfilled Higg FEM out of all denim mills from which GUESS sourced during previous fiscal year.

ESG data summary (Responsible materials and products)

2. % of assessments performed by GUESS auditors and others on directly sourced suppliers
Identify and count the GUESS supplier Code of Conduct assessments for the period in scope and categorize by percent by type ofauditor or certification type (GUESS auditors, External auditors, Sedex and Other audits, WRAP, SA8000 and Seri.co certifications).

ESG data summary (% of assessments performed by GUESS auditors and others on directly sourced suppliers)

3. Leftovers diverted from landfills
Weight, in kilograms, of unused, damaged and returned goods sent by GUESS directly to a third-party partner for reuse, repair
or recycling.

ESG data summary (Circular economy, packaging, and waste)

4. % of recycled or biobased polyester for GUESS apparel mainline and for all brands
Ratio of recycled or biobased polyester contained in styles received at DCs out of total polyester contained in styles received at DCs
during the reporting fiscal year. Scope includes GUESS apparel mainline only and GUESS apparel all brands only.

ESG data summary (Environmentally preferred product)

5. Received units at DC of GUESS ECO denim and non-denim styles for GUESS apparel mainline
Denim and non-denim styles received at DCs that satisfy the minimum requirements established by the GUESS ECO guidelines andmarketed as GUESS ECO for the brand’s eco collection out of the total denim and non-denim styles received at DCs during thereporting fiscal year. Scope includes GUESS apparel mainline only.

ESG data summary (Environmentally preferred product)

6. Received units at DC of Consciously Constructed styles for GUESS apparel Factory mainline
Denim and non-denim styles received at DCs that satisfy the minimum requirements established by the Consciously Constructed
guidelines and marketed as Consciously Constructed for the brand’s eco collection out of the total denim and non-denim styles received
at DCs during the reporting fiscal year. Scope includes GUESS apparel Factory mainline only.

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METHODOLOGICAL STATEMENTS
GRI 305-1, 305-2, 305-3, 305-5

Methodological statements forcarbon and energy
Reporting boundaries

Our Scope 1, 2 and 3 greenhouse gas (“GHG”) emissions
contained on page 81 and this related methodologicalstatements were prepared in accordance with the World
Resource Institute/World Business Council for Sustainable
Development Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard, Revised Edition,
including the GHG Protocol Scope 2 Guidance, An
amendment to the GHG Protocol Corporate Standard(collectively, the “GHG Protocol”).
Management has selected the control approach(operational control) as the organizational boundary
to consolidate GHG emissions. Under the operational
control approach, GUESS accounts for 100% of emissions
from operations over which the company or one of its
subsidiaries has operational control as explained in thesection “About our report” at page 79.

Base year

In FY2021, the company set GHG emission reduction
targets approved by the Science Based Targets initiative(SBTi) utilizing a base year of FY2019. The base year
was chosen in accordance with the GHG Protocol
guidance for tracking emissions over time as Management
believes FY2019 provides an accurate reflection of its
overall emissions profile, boundaries, and current
methodology. The Scope 2 indirect emissions for thebase year were calculated using the market-based
and the location-based methodologies.
Base year and subsequent year reported GHG emissions
are adjusted according to guidance as set forth in the
GHG Protocol when a significant cumulative change inbase-year emissions is triggered. The following conditions
would require such an adjustment if a significant change
is identified:• A structural change of the company’s organizationalboundaries (i.e., merger, acquisition, or divestiture)• A change in calculation methodologies or
emission factors• Additional or new data or methodology are available
on source emissions that was not previously available• Outsourcing (i.e., production of goods that is moved
outside of the company’s defined reporting boundaries)
or insourcing (i.e., opposite of “outsourcing”) where
the modified case includes emissions that were notpreviously accounted for within the inventory in
Scopes 1, 2, or 3
• Discovery of a significant error or a number ofcumulative errors in the company’s inventory

Significant is defined under the company’s establishedpolicy as a cumulative change (plus/minus) of five percent(5%) or larger in the company’s total base-year emissions(Scope 1 and Scope 2 emissions in total, or Scope 3
emissions on reported categories) on a CO2-e basis.
No recalculations or adjustments have been madeto base year emissions.

Greenhouse gases

All GHG emissions figures are presented in metric tonsof carbon dioxide equivalents (MTCO2e). In accordancewith the GHG Protocol, the company has included carbon
dioxide (CO2), methane (CH4), and nitrous oxide (N2O).
Due to the nature of GUESS’ operations,hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3)
are not likely to be released in significant quantifies for
tracking and have been omitted as they are not material
sources of greenhouse gases for the company.

Scope 1 and Scope 2 calculation

Gases included, emissions factors, consolidation
approach, standards, methodologies, assumptions,
and/or calculation tools used
Scope 1 represents direct GHG emissions that occur fromsources that are owned or controlled by the company.
Scope 2 accounts for indirect GHG emissions from thegeneration of purchased utilities consumed by thecompany. The operational boundaries for Scope 1 and 2
emissions include leased and owned offices, warehouses,
showrooms, and stores under operational control in all
global regions within which the company operates.
For direct emissions (Scope 1), equivalent emission factors
for CO2, CH4, N2O, by fuel type or process application areused for all sites worldwide according to figures publishedby the United States Mandatory Reporting Rule (MRR).
For indirect emissions (Scope 2) emission factors for the
specific utility supplied to GUESS’ facilities are definedby the following methods (version detailed in next pages),in each relative geography, where GUESS operates:

Location-based• US:– US EPA Emissions & Generation Resource
Integrated Database (eGRID)• Non-US:– Environmental Canada National Inventory Report(NIR)– International Energy Agency (IEA) CO2 Emissions
from Fuel Combustion (Rest of World)Market-based• US:– US Residual Mix (Green-e Energy Emissions Rates)– US EPA Emissions & Generation Resource
Integrated Database (eGRID)• Non-US:– RE-DISS European Residual Mix– Environment Canada National Inventory Report(NIR)– International Energy Agency (IEA) CO2 Emissions
from Fuel Combustion

Market-based approach

While the company discloses GHG emissions factors
using both the location- and market-based methodology,
in accordance with the GHG Protocol, Management
applies the market-based methodology to measureemissions performance against the stated emission reduction
targets as compared to the base year. The location-based
methodology quantifies Scope 2 emissions based on
average energy generation emission factors for defined
geographic locations, whereas the market-based
methodology quantifies Scope 2 emissions based on
GHG emissions emitted by the generators from which thereporter contractually purchases utilities bundled with
contractual instruments, or contractual instruments on theirown. Additional factors, according to guidance in the
GHG Protocol Scope 2 market-based data hierarchy,
were used to calculate Scope 2 market-based emissions
as the company purchased renewable energy instruments
across various markets in FY2022-2023. These agreements
included energy attribute certificates (EACs) such as
renewable energy certificates (RECs), international-RECs(i-RECs), guarantees of origin (GoOs), and renewableenergy guarantees of origin (REGOs) which all meet the
GHG Protocol Scope 2 Quality Criteria requirements.
Wind projects were the primary energy generation
technology included in the EACs utilized for market-based
Scope 2 calculations for FY2022-2023.

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METHODOLOGICAL STATEMENTS continued
GRI 305-1, 305-2, 305-5

Scope 1 and Scope 2 calculation continued
Global warming potential

Location-based
Scope

SourceProposed

All GHG emissions are calculated in metric tons (MT) of pollutant (CO2, CH4, N2O) and converted to MT of CO2
equivalents (or “CO2-e”) using the global warming potentials (GWPs). GWPs for GUESS’ inventory are taken fromthe Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5) 2014 using 100-year values.

1

Natural Gas

US EPA Mandatory
Reporting Rule (MRR) –Final Rule (40 CFR 98)– Commercial Sector 2013

US EPA MRR 2013

The following table outlines the applicability of emission factor sources by year. Applicability is based on the most up
to date information in the year of the inventory publication.

1

Propane

US EPA Mandatory
Reporting Rule (MRR) –Final Rule (40 CFR 98)– Commercial Sector 2013

US EPA MRR 2013

1

Chilled Water US EIA Emission Factors for
Steam and Chilled Water;
Steam and Chilled/Hot
Water

2

Electric Power Environment Canada (NIR)

2Electric Power US EPA eGRID

2Electric Power International Energy
AgencyMarket-based
Scope

SourceProposed1

Natural Gas

US EPA Mandatory
Reporting Rule (MRR) –Final Rule (40 CFR 98)– Commercial Sector 2013

FY2019FY2020US EPA MRR 2013

FY2021

FY2022

1

Propane

US EPA Mandatory
Reporting Rule (MRR) –Final Rule (40 CFR 98)– Commercial Sector 2013

US EPA MRR 2013

FY2023

1

Chilled Water US EIA Emission Factors for
Steam and Chilled Water;
Steam and Chilled/Hot
Water

2

Electric
Power/RECs

Environment Canada (NIR)

2Electric
Power/RECs

RE-DISS2018 v1.4

2018 v1.4

2020 v1.0

2021 v1.0

2Electric
Power/RECs

US EPA eGRID

2018(2016 data)

2020 v2
2021
2022(2018 data) (w/2019 data) (2020 data)

2023(2021 data)

2

Electric
Power/RECs

US Residual Mix (Green-e
2018
2019
2020
2021
2022
Energy Emissions Rates)(w/ 2016 data) (w/2017 data) (w/2018 data) (w/2019 data) (w/2020 data)

2

Electric
Power/RECs

International Energy
AgencySteam and Chilled/Hot Water

2019
2020
2021
2022
(w/2017 data) (w/2018 data) (w/2019 data) (w/2020 data)
2019 v1.0

2018
2019
2020
2021
2022
(w/ 2016 data) (w/2017 data) (w/2018 data) (w/2019 data) (w/2020 data)

FY2019FY2020

FY2021

FY2022

FY2023

Steam and Chilled/Hot Water

2019
2020
2021
2022
(w/2017 data) (w/2018 data) (w/2019 data) (w/2020 data)
2018(2016 data)

2020 v2
2021
2022(2018 data) (w/2019 data) (2020 data)

2023(2021 data)

2018
2019
2020
2021
2022
(w/ 2016 data) (w/2017 data) (w/2018 data) (w/2019 data) (w/2020 data)ABOUT

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106

METHODOLOGICAL STATEMENTS continued
GRI 302-1, 305-3, 305-5

Scope 3 calculation

Gases included, other GHG emissions categories andactivities, emissions factors, standards, methodologies,
assumptions, and/or calculation tools used
The operational boundaries for Scope 3 emissions
presented in this document represent GHG Protocol
Category 1 “Purchased Goods and Services”, which
only includes activities associated with land use changes,
material extraction, textile processing, and final assemblyfor units purchased by GUESS. This Scope 3 Category has
been defined as the one significant to set our SBTi goals.
Data for Americas, Europe and Mainland China onpurchased units and related materials are retrieved fromthe same database used for the other GRI and SASB
metrics presented in this ESG report. To date, GUESS isunable to access similar databases of product-level
information for its Korea and Japan footprint. As such,material projections are based on total revenue
breakouts in that region to calculate missing unit
information assumptions.
For indirect emissions (Scope 3) Category 1 – Purchased
Goods and Services – sources of Emission Factors:• Tier 1 Final Assembly:– Higg FEM: Data on final assembly are estimatedbased on information retrieved from survey
submitted by suppliers in their Higg FEM modules.
Suppliers can choose to have their module validated
by a third party, who reviews and approves theinformation. As GUESS seeks to improve data
quality of its calculations based on self-reported
supplier activity data, the final assembly activities
data for units purchased is tested for quality
assurance within reasonable threshold ranges. To
date, the majority of GUESS suppliers do not reportverified data. As such, the data is assessed for

exclusions from likely errors in reporting unverified
energy and emissions data from suppliers, thensupplemented with estimations. These estimates arederived from assumptions based on inputs such as,
the total units of reported data, the average energy
per unit, % of units per country of origin, andassumed fuel breakdowns. This approach will be
re-assessed once a majority of GUESS’ selfreporting suppliers report better quality, third-party
verified data

– US EPA MRR; EIA; US EPA Hub 2021-2023; US
EPA EF Hub 2021-2023; International Energy
Agency, 2022 publication (with 2020 data)• Tier 2 Textile Processing – Weaving, Knitting & Dying:– EcoInvent 3: Textile, knit cotton {GLO}| textile

production, knit; Fabric pretreatment, dyeing andfinishing, combined processes, US U; Textile,
woven cotton {GLO}| production | Cut-off, S;
Fabric pretreatment, dyeing and finishing,combined processes US U. US LCI 2.2: yarn
production, cotton fibers/kg/GLO; Weaving,
synthetic yarn, CN S; Knitting, circular, synthetic
yarn/US US-EIU– It is noted that the green materials Livaeco andEcovero™ are pre-treated. Therefore, the emission
factor calculation assumes a 0 impact from the“Fabric pretreatment, dyeing and finishing,combined processes”• Tier 3 Material Extraction & Processing:– EcoInvent 3: Viscose fiber {GLO} | viscose

production | Cut-off, S; Polyethylene terephthalate,granulate, bottle grade {GLO} | market for |Cut-off, S|; Acrylonitrile {GLO} | market for |Cut-off, S’; Nylon 6-6 {GLO} | market for |Cut-off, S; Polypropylene, granulate {GLO} |market for | Cut-off, S; Cotton fiber {US} |cotton production | Cut-off, S. US LCI 2.2: yarn
production, cotton fibers/kg/GLO; Spinning fiber,
synthetic/US U US-EI U. Wrap.org. SAC MSI.
Invista LCA: Spandex fiber {INVISTA}, contains
data for yarn formation/spinning. Industry data
2.0. The Life Cycle Assessment of Organic Cotton
Fiber – A Global Average. Summary of Findings.
K. Joseph et al. (2009)– It is noted that recycled materials are assumed to
not have intensity from agricultural production(naturals) or granulate production (synthetics)– It is noted that the green materials sourced fromcertified sustainable forests subprocess assume 0
associated Tier 3 emissions• Tier 4 Direct Land Use Changes:– FAOSTAT. EcoInvent v 3.3: Cotton fiber {US} |cotton production | Cut-off, S. Blonk Consultants:
Direct Land Use Change Assessment Tool

– Recycled materials assume 0 impact from land
use changes, as no new cotton is grown forthese materials

Standards, methodologies,
assumptions, and/or calculation tools
and source of the conversion factors
used for energy calculations

We hired third-party greenhouse gas accounting specialists
to collect and assess our direct metering reports fromutilities and/or energy supplier invoices. When information
was unavailable, gap fills or estimations were performed
to approximate the usage. Approximations can be basedon reports or invoices from other months of the samebuilding or from other buildings comparable in size andenergy consumption.

Conversion factors used:1)	Natural Gas: HHV of 10260 Btu/scf (US EPA
Mandatory Reporting Rule (MRR), 20132)	Electric Power (Purchased): Standard energy
conversions, unlike GUESS’ other commodities, theelectric power invoices are already provided as energy3)	Chilled Water: 0.09532 GJ/m3, and from guidancefrom Energy Star
4)	Propane: HHV of 3.824 MMBtu/Barrel (Climate
Registry Table 13.1 US Default CO2 Emission Factors
for Transport Fuels); Density of 4.12 lbs/gallon – (EPA
Mandatory Reporting Rule (MRR)); Thermal expansion
coefficient of 270

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107

GLOSSARY OF TERMS

AmericasIncludes GUESS in US & Canada

Apparel Factory GUESS Factory mainline stands for off-price mainline collection of GUESS branded clothes for adults,
mainline
both women and men, that encompasses all apparel categories, from t-shirts to outerwear. Factory
mainline excludes other apparel categories (i.e. Kids, Athleisure, Underwear, Beachwear) and othernon-apparel product categories (i.e. Bags, Footwear, Small Leather Goods, Accessories, Home).
In FY2023 Factory mainline represented 44% of global apparel products purchased (excluding
Guess Korea and Guess Japan)
Apparel mainline GUESS mainline stands for full-price mainline collection of GUESS branded clothes for adults, both
women and men, that encompasses all apparel categories, from t-shirts to outerwear. Mainline excludes
other GUESS branded apparel categories (i.e. Kids, Athleisure, Underwear, Beachwear, Factory),
other non-apparel product categories (i.e. Bags, Footwear, Small Leather Goods, Accessories, Home)and other brands (i.e. Marciano, GBG, GUESS Jeans U.S.A., GUESS Originals). In FY2023 apparelmainline represented 30% of global apparel products purchased (excluding Guess Korea andGuess Japan)

GRI

Global Reporting Initiative

GUESS ECOGUESS ECO stands for GUESS full-price products made using more sustainable materials andprocesses that satisfy minimum requirements as defined by our internal guidelines for the given yearof development. GUESS ECO products are marketed as more sustainable product range by GUESS.
In addition to preferred materials, the production method is optional for non-denim and required for
denim to be branded as GUESS ECO

Higg FEM

The Higg Index’s Facility Environmental Module is a standardized sustainability assessment tool
to measure and evaluate apparel facilities’ environmental performance

HRC

Human Rights Council

LCA

Life cycle assessment to measure the impacts on the environment associated with the life cycle ofa product, process, or service

LRSM

GUESS’ List of Restricted Substances and Materials which outlines the chemicals that are limited
or prohibited in our products or in the production process
Collection of diverse raw materials used in the production of goods

Asia

Includes GUESS in Greater China, Korea & Japan

BCI

Better Cotton Initiative

Materials
Portfolio

Biodegradable

A material or product is defined as Biodegradable if microorganisms (bacteria, fungi, algae) can
break it down into simpler natural components (water, CO2, biomass, etc.) under natural conditions(with oxygen or without oxygen)

MRSL

ZDHC’s Manufacturing Restricted Substances List is a list of chemical substances banned from intentionaluse in the apparel industry

PFAS

Per- and polyfluoroalkyl substances, so called “Forever chemicals”

CDP

Carbon Disclosure Project

RECs

Renewable Energy Credits

Consciously
ConstructedConsciously Constructed stands for GUESS Factory off-price products made using more sustainable
materials that satisfy minimum requirements as defined by our internal guidelines for the given yearof development. Consciously Constructed products are marketed as more sustainable product range
by GUESSSASB

Sustainability Accounting Standards Board

SBTi

Science Based Targets initiative

SBTN

Science Based Targets for Nature

SVR

The Sustainable Vendor Rating is GUESS’ internally developed tool to evaluate suppliers basedon environmental performance

TCFD

Task Force on Climate-related Financial Disclosures

UN SDGs

United Nations Sustainable Development Goals

VSC

GUESS’ Vendor Scorecard to measure the performance and effectiveness of core vendors

ZDHC

Zero Discharge of Hazardous Chemicals, an apparel industry program to promote sustainable chemical
management within the fashion industry

Degradable

Degradable simply means that a product or material breaks down. Most materials break down overa long enough time

EuropeIncludes GUESS in Europe and countries managed by Guess Europe Sagl

FSC

Forest Stewardship Council

Greater China

Includes mainland China, Hong Kong, Taiwan and Macau

GHG

Greenhouse Gas

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This document contains forward-looking statements basedon Management’s current expectations as of the date of
publication of this report. These forward-looking statements
are indicated by words or phrases such as “expect,”“project,” “believe,” “will,” “aim,” “plan,” “intend,” “lookforward to,” and similar words or phrases. These forwardlooking statements are based largely on our current plans
and expectations and are subject to a number of risks,
uncertainties or other factors that may cause actual results
or performance to be materially different from our current
expectations. Please refer to our most recent Annual Reporton Form 10-K and other filings with the U.S. Securities andExchange Commission for a more complete list of risk
factors. We do not undertake any obligation to publicly
update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
For more about the scope and boundary of this report,
please see About our report on page 79.

APPENDICESESG REPORT FISCAL YEARS 2022–2023

108

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109© Guess?, Inc. 2023
Catalog #382

PRINTER

Lithographix, Los Angeles, California
Lithographix is an FSC and SFI certified printer with areduced hazardous waste stream of less than 1% of its
consumption, and recycles 98% of all consumable waste.
Corporate Social Responsibility serves as the foundationof its business philosophy.

PAPER

Project printed on Mohawk Options Smooth, 100% PC
White, 65 cover/176 gsm and 70 text/104 gsm.
Mohawk Options is certified by Preferred by Nature for
FSC® standards. Mohawk purchases Renewable Energy
Certificates (RECs) to match 100% of the electricity used in
its operations. Mohawk Options recycled papers containat least 30% post-consumer waste fiber and meet the EPA
guidelines for recycled content paper,s and all recycled fiber
content in Mohawk papers is process chlorine free (PCF).

GUESS campaign, spring 2023, Capri, Italy.

ESG REPORT FISCAL YEARS 2022–2023