2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELYCONTENTS
FROM OUR CEO

04

COMPANY OVERVIEW

05

POSITIVELY CLEANER

09

POSITIVELY CONSCIOUS

12POSITIVELY CIRCULAR

16

POSITIVELY INCLUSIVE

19

GOVERNANCE AND ENGAGEMENT

25

ANNEX

29

2020 ESG HIGHLIGHTS
Data in this report refers to data for the year ended, or as at, December 31, 2020 for FARFETCH Limited and its consolidated subsidiaries, unless stated otherwise.
Comparative data in this report refers to data for the year ended, or as at December 31, 2020 relative to data for the year ended, or as at December 31, 2019, unless stated otherwise.

POSITIVELY
CLEANERPOSITIVELYCONSCIOUS

POSITIVELYCIRCULARPOSITIVELYINCLUSIVE

GOVERNANCEAND ENGAGEMENT

12%

3.4x

3x

6

2020

 From 1st April 2020, we committed
to offset the carbon impact of
all FARFETCH Marketplace andBrowns deliveries and returns

 Over 1,000 of the brands on
FARFETCH Marketplace havebeen rated by ethical ratings
agency Good On You

 FARFETCH Second Life live in 30
countries across Europe and USA

 GMV for brands in ourBlack designer edit on
the FARFETCH Marketplaceincreased 66%

 We are signatories of the G7
Fashion Pact and the UN Fashion
Industry Charter for Climate Action

 1 in 10 FARFETCH Marketplace
products were Conscious2

 We are working with EcoVadis
to complete sustainability
assessments of our key suppliers,
to help them understand andimprove their social andenvironmental impact

Reduced carbon impact
of shipments fulfilled by
DHL, our primary carrier,by 12%1

 26% of our energy consumption
is from renewable sources(up from 6% in 2019)1	In 2020, DHL fulfilled over 80% of
our deliveries and returns volumes.

Conscious productsales grew 3.4x fasterthan the FARFETCH
Marketplace average,
and represented
over 5% of GroupGross Merchandise
Value (GMV) Fashion Footprint Tool launchedand 90% of customer visits tothe tool were interactive, driving
education on creating a moresustainable wardrobe
2	Data stated as of December 31, 2020.

Number of units thatwere Circular (sold orserviced) grew by 3x,
and represented 1%of total units Items donated via FARFETCH
Donate grew 662% in December
2020 vs December 2019
 Items sold through Second Life
increased by 332%

6 Core commitments
made for Conscious
Inclusion in theworkplace andfor our partners

 10 Global People Communities
established to support Farfetchers
from different backgrounds
and identities
 94% of Farfetchers completed
our Humu employee engagement
survey, which reported that 90%
would recommend FARFETCH asa great place to work and 87% are
passionate about the work they do

Established the ESG
Committee of theBoard of Directors in2020 to assist our
Board in its oversightof ESG matters

 We joined the Board Challenge,
an initiative to improve therepresentation of Black Directors
in corporate US boardrooms,
as a Charter Pledge Partner
 75% of Board Committee
chairs and 50% of Board
members are womenFARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELY 04

FROM
OUR CEO

I have said in the past that we are a Company

The vast majority of our people were able toof action and not just sentiment. The growthwork productively from home, and I thank them

we have achieved in Conscious products sales,

for their incredible display of our tremendous

the expansion of our circular services, and the‘Todos Juntos’ value—the spirit of togetherness.

progress we have made with our Positively

The fashion industry has changed enormously
since FARFETCH was founded in 2007. I believethat as the leading global platform for the luxury
fashion industry, FARFETCH must help lead andenable change: it’s time to think, act and choose
positively. Our purpose is clear—we want to be
the platform for good in luxury fashion. We arebuilding and growing our business model to havea positive impact, where sustainability is at theheart of our culture and how we prosper.
Our industry can and should have a positive
impact; it needs to be cleaner, conscious, circular,
inclusive and have robust governance. We havean opportunity, as the luxury fashion industry’s
leading global platform, to help make that happen.

FARFETCH strategy over the past year are a

Helping our boutique and brand partners, who

great testament to that. I believe that FARFETCH

were hit badly by the lockdowns during thealso has a wider societal responsibility to help

pandemic, connect with their customers digitally

eradicate systemic racism in society, starting fromwas a priority last year and remains so in 2021.

within. Over the course of the past fifteen months,

For many, e-commerce through FARFETCH was

we have had open conversations with our People

their only way to generate revenue while theirCommunities, including our Black Employee

stores were shut during lockdown.

Network, our FARFETCH East Asian Network
and across our business, and what became
clear is that we have a lot to learn, and a lot to

our Positively FARFETCH strategy that was

As explored in this report, we have alreadyunder that banner. To explain our initiatives andtaken concrete actions under all our pillars,

communicate our progress we have compiled

but there are many more ways we can continue

our first Environmental, Social and Governanceto incorporate our Positively FARFETCH strategy(ESG) report. This report introduces our approach

into the way we do business.

and shares the ongoing efforts we have undertaken

POSITIVELY CLEANERPOSITIVELY CONSCIOUS

unveiled in 2019 and the host of initiatives

to grow our business in a sustainable and resilient
I would like to take this opportunity to say

way. We expect to continue doing so as we deliver‘thank you’ for all the support our people,

on our vision.

partners and customers have given us overthis trying year. The COVID-19 pandemic madeThank you for taking an interest in our business2020 an extraordinary and difficult year for soand our Positively FARFETCH strategy.

many. My priority was, and still is, the healthand brand partners, and our customers.

COMPANY OVERVIEW

we launched our 2030 goals. These build on

do to support and champion our colleagues.

and well-being of our Farfetchers, our boutique

CEO STATEMENT

Thinking longer-term, in December 2020,

POSITIVELY CIRCULARPOSITIVELY INCLUSIVE

José Neves
FARFETCH Founder, Chairman and CEO

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FARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELY 05

Our business

COMPANYOVERVIEWFARFETCH Limited1 (“FARFETCH” or “the Company”) is the leading global platform for the luxury fashion industry.
Founded in 2007 by José Neves for the love of fashion, and launched in 2008, the FARFETCH platform beganwith the launch of its e-commerce marketplace for luxury boutiques and brands from around the world. Since
then, our business has grown significantly, operating across digital and physical realms to meet the needs ofour growing customer base. Our business is operationally organized in the following four segments:

Scope of this report
Our 2020 ESG Report provides an overview of ourprogress towards our commitments outlined in the

Our marketplaces

Luxury New Retail and enterprise solutions

The FARFETCH Marketplace connects customers

FARFETCH offers its broad range of consumer-facingin over 190 countries and territories with items

channels and enterprise-level solutions to the luxury

from more than 50 countries and nearlyindustry under its Luxury New Retail initiative. This

1,400 of the world’s best brands, boutiques

encompasses FARFETCH Platform Solutions, whichand department stores. This delivers a uniqueservices enterprise clients with e-commerce andshopping experience and access to thetechnology capabilities, and innovations such

most extensive selection of luxury on a single

as Store of the Future, a digitally powered retail

Positively FARFETCH strategy. The activities, initiatives,

platform. We also operate Stadium Goods, asolution, as well as our CuriosityChina businessprogress and metrics cover all of our businesses underpremium sneaker and streetwear marketplace.

which focuses on amplifying premium and luxury
brands across digital platforms in China.

FARFETCH Limited and its subsidiaries, unless otherwise
noted. Some of our business units (for example Browns,
New Guards Group and Stadium Goods) have certain

New Guards Group (NGG)

Brownspart of our ongoing work, these businesses have, or

Acquired in 2019, NGG is a platform for the

Browns, which marked its 50th birthday in 2020, isare developing specific strategies and programmes todevelopment of global fashion brands. NGG

an iconic British fashion and luxury goods retailer

address these priorities. This inaugural report intends

designs, manufactures and distributes sought-afterwith a heritage of introducing new fashion labels

luxury fashion brands. Brands in the NGG

and pioneering luxury fashion.

ESG priorities specific to their business models. As

to provide an overarching view of our Company ESG
strategy, actions and progress across FARFETCH Limited.
In future reports we will also aim to provide a closer lookportfolio include Off-White, Palm Angels, Heron
Preston and Marcelo Burlon, among others.

at the ESG programs of these specific business units.
More information on our business can be found in our 2020 Annual Report.
1	FARFETCH Limited consists of FARFETCH Marketplace, FARFETCH Platform Solutions, Store of the Future, Browns retail boutiques,
CuriosityChina, Stadium Goods, and New Guards Group.

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Our culture

NUMBER OF EMPLOYEES (AS OF DECEMBER 31, 2020)
1,064

The success of FARFETCH is testimony to the efforts and talents of our highly skilled Farfetchers. Our

76

UNITED KINGDOM

513

leadership team is a cross section of tech and fashion, and our entrepreneurial and collaborative culture

RUSSIA

UNITED STATES

is especially important to us, as we believe it is a major competitive advantage and contributor not only

349

ITALY

to our success as a business but also to our sustainability initiatives. Our culture is underpinned by six
FARFETCH values that are at the heart of everything we do:

12

FRANCE73

Our values

JAPAN

59

2

HONG KONG

MEXICO

INDIA

2

20

Total

PORTUGAL

5,441

2,679

AUSTRALIA

Todos Juntos

Be Human

Act for the greater good of all teams, even when

Be respectful and kind to yourself and the people

it is beyond your area of expertise. Foster positivearound you. Trust each other’s intent, resolve

actions in those around you and celebrate ourproblems with empathy, and welcome mistakes

shared achievements.

as learning opportunities.

Be Brilliant

Think Global

UNITED ARAB
EMIRATES

55

MAINLAND CHINA

BRAZIL

414

123

Where we operate

Be unrivalled in everything you do, with passion

Belong to a global community, working collectively

and ambition. Ambiguity and complexity neveras a united force. Welcome and respect everyone,stop you from going the extra mile.

creating an inclusive environment for all.

Our more than 5,000 employees are based in 14 countries, with our corporate headquarters in London,
United Kingdom. With five offices and two photography studios, Portugal is home to our largest employee
population. For more information on our employees, please see page 113 of our 2020 Annual Report.
FARFETCH China allows us to operate a range of platform solutions within this key strategic market,
including the FARFETCH Marketplace, as part of our joint venture with Alibaba and Richemont, FARFETCH
Platform Solutions and CuriosityChina.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

Be Revolutionary

Amaze Customers

Disrupt the status quo and embrace innovation

Love and understand your customers, keepingwith a curious mindset. Make courageousthem front of mind. Exceed their expectations

decisions, searching for new ways.

by delivering unforgettable experiences.

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FARFETCH 2020 ESG REPORT

Positively
FARFETCH strategy
The purpose of our Positively FARFETCH
strategy is to inspire, enable and empower
everyone we work with to think, act and choose
positively. Our strategy comprises five action
areas that reflect the ESG topics that are mostmaterial to FARFETCH and our stakeholders.
The five action areas are: Positively Cleaner,
Positively Conscious, Positively Circular, Positively
Inclusive, and Governance and Engagement. In
2020, we launched our 2030 goals to give clarity

THINK, ACT AND CHOOSE POSITIVELY 07

The strategy and our 2030 goals provide us
with a roadmap to achieve the positive changes
we want to see in the world, the industry andour own business.
The fashion industry faces significant challenges.
Climate change, the acceleration of e-commerce,
human rights and environmental standards within
supply chains, and the need to increase theuse of existing clothing while reducing waste
are all key issues for us and the wider industry.
Our Positively FARFETCH strategy is our ambition
and agenda to revolutionize the fashion industry
for the future.

to our ambition for FARFETCH and the industry.

“As the global platform for the luxury industry, we decided to delve
further into how consumers are engaging with more sustainableways of shopping, and how brands, boutiques and the luxury
sector as a whole are responding. The result was our first annual
Conscious Luxury Trends Report published in 2021. Goingforward, we plan to continue this research, through which wehope to help the industry understand and act on the key driversof change—empowering everyone to think, act and choose
positively. It’s all part of our Positively FARFETCH mission.”
THOMAS BERRY, DIRECTOR OF SUSTAINABLE BUSINESSCEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

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FARFETCH 2020 ESG REPORT

Identifying ourmaterial ESG issues
Our Positively FARFETCH strategy directly
responds to the material issues that have the

THINK, ACT AND CHOOSE POSITIVELY 08

OUR STRATEGIC PRIORITIESOur Positively FARFETCH mission is to become the global platform for good in
luxury­—empowering everyone we work with to choose, act and think positively.

POSITIVELY
CLEANERPOSITIVELYCONSCIOUS

POSITIVELYCIRCULARPOSITIVELYINCLUSIVE

Cutting the platform
carbon footprint
and reducing theimpact of packaging
and logistics.

Championing products
and enabling choicesthat consider theenvironment, society
and animal welfare.

Better matching supply
and demand as wellas growing businesslines that extend thelife of clothes.

Championing diversity
and inclusion in our
workplace and the global
fashion community.

2030 GOAL

2030 GOAL

2030 GOAL

2030 GOAL

To be climate positive

To sell 100%
Conscious products

To be more circularthan linear

To be a leader in
Conscious Inclusion(NGOs), investors, Sustainable Accounting

MATERIAL ISSUES

MATERIAL ISSUES

MATERIAL ISSUES

MATERIAL ISSUESStandards Board (SASB), and leading reports

 Climate change adaptationand mitigation

 Responsible and transparent
supply chains Product durability
and circularity

 Hiring, skills training
and development

 Operational
environmental impact

 Product quality and safety

potential to impact the long-term viability ofour business, which if acted upon positively,
are expected to deliver significant social
and/or environmental value.
In defining our strategy, we carried out
materiality assessments in collaboration withboth our internal and external stakeholders.
Internally, we analyzed our business to identify
key risks and opportunities. We also consulted
external sources such as our peers, industry
associations, non-government organizations

such as the World Economic Forum’s Global
Risks Report, 2021 and ERM’s 2021 Sustainability
Trends Report to identify important ESG issues.

 Consumer packaging

 Employee well-being,
health and safety

 Product labellingand marketing Diversity and inclusion
 Community involvement

As we further develop our strategy we willcontinue to take into account the evolving
priorities of our stakeholders.

GOVERNANCEAND ENGAGEMENT

MATERIAL ISSUES
 Compliance andbusiness ethics
 Customer data security
and privacy

Encouraging collaboration and leading by example.

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FARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELY 09

POSITIVELY
CLEANER
Our Positively Cleaner pillar is focused on
driving environmental impact reduction,
both in our own operations and wider value
chain, specifically targeting carbon as ourbiggest area of direct and indirect impact.
OUR 2030 GOALOUR PROGRESS IN 2020

To be climate
positive

12%

Reduced carbon impact of
shipments fulfilled by DHL,
our primary carrier, by 12%1

1	In 2020, DHL fulfilled over 80% of our order and returns volumes.

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Understanding
and reducing ourcarbon footprint
To achieve our climate positive goal, we mustfirst achieve net zero by 2030. Each year we workwith a credible third party to measure, calculate
and review our entire corporate carbon footprint,
in-line with the Greenhouse Gas Protocol.
We partnered with Quantis to assess our 2020
carbon footprint, and in the future, we plan to

OUR PROGRESS IN 2020
 From April 1, 2020, we committed tooffset the carbon impact of all FARFETCH
Marketplace and Browns deliveries
and returns
 We are signatories of the G7 Fashion Pact
and the UN Fashion Industry Charter for
Climate Action
 26% of our energy consumption is fromrenewable sources (up from 6% in 2019)

also have our footprint externally verified.

energy used to operate our offices, refrigerants
and company cars. Our indirect emissions(scope 3) arise from parts of our business
we can influence, but do not directly control.
This includes emissions from logistics, productTotal GHG emissions in 20202

Scope 1 in tCO2-eq637

Scope 2 in tCO2-eq
electricity consumption

3,942 (location-based)
2,651 (market-based)

Scope 3 in tCO2-eq

260,950

Total

264,238

Scope 1

Scope 2

Scope 3

98.8%

98.8%
0.2%

1.0%

1%

Scope 3

55%

39%

4.8%

Downstream transportationand distribution

Purchased goods3
and services

Other4purchasing and manufacturing, indirect spend(such as marketing) and packaging. We measurecategories in the Green House Gas (GHG)
Protocol as the other 6 categories are notwith communities around the world experiencing

MetricOur scope 1 and 2 footprint is driven by the

our scope 3 footprint against 9 of the 15

The need to address climate change is urgent,

OUR CARBON FOOTPRINT

relevant to our scope. In 2020, our scope 3
emissions were estimated at 260,950 tCO2-eq.2

the impact of a changing climate firsthand.

1	Climate Positive Working Definition: Achieving Net Zero by reducing our carbon footprint in line with Science Based Targets
while offsetting unavoidable emissions and supporting our wider value chain that sits outside of our carbon footprint boundary,to achieve additional carbon reductions that are equivalent to at least 10%+ of our carbon footprint.
2	In 2020, we updated the methodology behind two key scope 3 categories of our footprint, purchased goods (from spend-based
to composition level data) and indirect spend (for two key marketing suppliers we moved from spend-based and where possible,
primary GHG data from online marketing and IT suppliers have been collected and used) in order to improve the accuracy of ourdata. Due to this change, our 2019 footprint is not directly comparable to our 2020 footprint. These more accurate calculations
help us to better understand our footprint and key impact areas.
3	Products directly purchased or manufactured.

Undoubtedly, we will need to help transform
our supply chains to help tackle this. Our 2030

4	Covers upstream transportation and distribution, waste generationed in operations, business travels, employee commuting, productuse*, end-of-life treatment of sold products*, and franchises.

Climate Positive1 goal reflects this urgency.

*From products directly purchased or manufactured.

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FARFETCH 2020 ESG REPORTOur progress
During 2020, we made progress in many
areas impacting our carbon footprint.

LOOKING AHEAD TO 2021

PLANTING OUR OWNFARFETCH FOREST

THINK, ACT AND CHOOSE POSITIVELY

Sourcing renewable energy

Managing ouroperational impacts

The environmental projects are related togenerated by renewables, vs 6% in 2019. ThisTo further reduce our environmental impact, wetransition towards renewable energy throughis due to two key regions, Portugal and the UK,

are improving our warehousing network, allowing

projects in China and India.

significantly increasing their sourced renewable

us to place products closer to customers. We

energy via renewable energy tariffs with all

have reduced our transportation and distribution

UK FARFETCH and Browns offices and storesemissions by 12% per order in comparison torunning on 100% renewable energy.

2019, for orders delivered by our primary logistics

In 2020, 26% of our purchased electricity was

Carbon savings throughpackaging efficiency

Separate from our Climate Conscious

Reducing emissions per order is an important

Delivery promise, on Earth Day 2021,

area of impact for us, and the way goods are

we began planting the Positively

packaged is a key driver of that. In 2020 we

FARFETCH forest with the help of

introduced two new box sizes and trialled thenon-profit organization Tree-Nation,use of over 65,000 paper-based envelopes,

and sponsored all our employees towhich reduces the materials used, the air

plant a tree. Tree-Nation allows citizens

that is shipped and optimizes the number ofand companies to plant trees acrossproducts we can transport. We also financiallythe globe. As of August 2021, ourincentivize our boutique partners to select

FARFETCH forest has over 5,500 trees

the right sized box for their orders, thereby

spread across France, Nepal, Brazil,

reducing unnecessary air that is shipped.

Tanzania, the USA and Madagascar andpartner DHL.1

afforestation efforts and forest protection in
the USA and Brazil, as well as supporting the

The path to Climate Positive
To achieve net positive emissions, we havecommitted to supporting our wider value chainthat sits outside of our carbon footprint boundary.

The most common reason behind customers’
returns are linked to sizing and fit. In addition to
improving fit descriptions and recommendations,
we are exploring innovative tools and technologies
that can help reduce returns, therefore reducing
our costs and carbon footprint. One recent
example is our partnership with Wanna,a revolutionary augmented reality solution

We expect this will help us achieve additional
carbon reductions that are equivalent to at least
10% of our carbon footprint. We are engaging
with our stakeholders on carbon impact to enablemeasurable reductions. This includes developing
and offering low carbon solutions to partners,
customers and employees to help them reduce
their climate impact beyond the carbon footprint

enabling customers to virtually try on trainers.

boundary of FARFETCH.

Offsetting our emissions

Collaborating for
positive change

Through our Climate Conscious Delivery
promise, from April 1, 2020, we are committed

FARFETCH has signed both the G7 Fashion Pact

has already helped to reforest 5.58

Packaging represents approximately 1% of

to offsetting the carbon emissions fromand the UN Fashion Industry Charter for Climate

hectares of land. So far, we have captured

our carbon footprint and we help limit ourall deliveries and returns of orders madeAction. By joining these initiatives, we work

1,484.65 tonnes of CO2 through our forest.

impact through the use of Forest Stewardshipthrough the FARFETCH Marketplace andtogether with other global businesses to help findCouncil (FSC) Mix certified and recyclable

Brownsfashion.com. To do this, we are investing

solutions to tackle climate change, biodiversity

packing on our global FARFETCH Marketplace.

in environmental projects, independently certified

and ocean health.

Also our FARFETCH Marketplace swing tags

and verified to Gold Standard®, Americanand strings are made from recycled materials.

Carbon Registry or the Verified Carbon Standard.

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1	In 2020, DHL fulfilled over 80% of our order andreturns volumes.

GOVERNANCE AND ENGAGEMENT

ANNEX

11

FARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELYPOSITIVELYCONSCIOUS
We are focused on driving sales and supplyof more Conscious products as we believe thatis the most impactful way for us to influence
positive social and environmental outcomeswhile also growing our business.
OUR 2030 GOALOUR PROGRESS IN 2020

To sell 100%
Conscious products

3.4x

Conscious product sales grew 3.4x fasterthan the FARFETCH Marketplace average,
and represented over 5% of Group GMV

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12

FARFETCH 2020 ESG REPORTOUR PROGRESS IN 2020
 58% increase of conscious inventory fromour global network of boutique partners

THINK, ACT AND CHOOSE POSITIVELYThe Positively Conscious pillar is focused

The criteria leverage established and widelyon helping our consumers, think, act andrecognized standards and certifications onchoose positively, considering the impact

sustainable materials and business practices

on the environment, society and animal welfare.

in fashion. In the criteria development process,

Under our 2030 goals, we are seeking to achieve

FARFETCH engaged the expertise of some

100% of our revenues from products that areleading organizations (including Good on You

independently recognized as being better for

and Sigillum Knowledge Solutions) to provide

people, the planet and animals, or from services

critical recommendations on the standards

that enable positive change.

and certifications selected. A product must

Empowering ourcommunity tochoose consciously

 1 in 10 FARFETCH Marketplace products
were conscious1

As we understand more about our impact

 No products made from fur or endangered
species are sold on FARFETCH (from2020 onwards)2

to do better improves as well. Our aim is Fashion Footprint Tool launched: 90% of
customer visits to the tool were interactive,
driving education on creating a moresustainable wardrobe
1	Data stated as of December 31, 2020.
2	Fur products are defined as products madeentirely from furs or made with fur trims. We
also require all exotic skin products listed tohave CITES certification and will not allow thelisting of exotic skin unless permitted according
to CITES (the Convention on International Tradein Endangered Species of Wild Fauna and Flora)and IUCN (International Union for Conservationof Nature). To find out more, click here.

on people, the planet and animals, our ability
to help all the boutiques, brands andmeet one of the following criteria to qualify
as a Conscious product:(pre-owned) A product comes from a brand that has apositive rating on Good On You. Over 200
brands meet the FARFETCH threshold toqualify to be labelled as Conscious4 via theGood on You assessment on the FARFETCH
Marketplace. This means these brands haveadopted policies and practices to manage
multiple material topics across their supply
chain and are often demonstrating leadership A finished product contains a significant

in one or more areas.

proportion of a material that satisfies one
3of the conditions below: A material or its production process is
independently recognized as being better
environmentally, socially or from an animal
welfare perspective

partners we work with to be transparent and A material or its production process holds

meet recognized social and environmental

an independent certification relating

standards. FARFETCH has developed ato good environmental, social or animal

set of independently-assessed Conscious

welfare practiceproduct criteria to qualify as Conscious products.

 A product is second-hand or vintage A finished product holds an independentcertification relating to good environmental,social or animal welfare practice>1,000Over 1,000 brands included
on FARFETCH Marketplace,
have been assessed on theirenvironmental, and social
and animal welfare impacts
by ethical ratings agency,
Good on You

3	A “significant proportion” is measured by looking at the product outer that must contain at least 50% of an eligible material. However,when it comes to certified materials, we apply the threshold identified by the specific certification requirement (e.g. 95%+ OrganicContent Standard, 70%+ Global Organic Textile standard, 20%+ Global Recycling Standard).
4	LARGE BRANDS need to have a minimum overall score of four out of five to qualify, and SMALL BRANDS must score at least threeout of five overall.

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FARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELY 14

OUR PARTNERSHIP WITH GOOD ON YOU
To help give impetus to our ambitions, we teamed up with Good on You in 2019. Good on
You is the leading sustainability rating platform for fashion, and they identify and evaluate
more than 100 different widely-recognized standards and certifications to provide simple,
easy-to-understand sustainability ratings on brands.
Good on You assesses our brands against three key areas of impact: People: Brands are assessed against their impact across the supply chain, which includes
policies and practices on child labor, forced labor, worker safety and empowerment, genderequality and payment of a living wage.
 Planet: This involves an assessment against a brand’s use of resources—such as energy, waterand chemicals—and waste management, including any commitments to circular practices.
By rigorously applying our Conscious product

Our ambition to sell Conscious products iscriteria and the Good on You ratings to what

supported by our Ethical Sourcing Policy, which

our customers are buying, we can demonstrateoutlines our expectations from all our partners

transparency of the impact of brands, products

and other suppliers to operate ethically. The

and supply chains. In 2020, over 1,000 brands

Policy covers our commitment that no products

included on FARFETCH Marketplace, had been

made from fur or endangered species are sold

EMPOWERING OUR CUSTOMERS

assessed on their environmental and social

on FARFETCH (from 2020 onwards).

In 2020, we launched our consumer Fashion Footprint Tool. The tool helps our consumers

impacts using the Good on You criteria. This
includes all of our brand partners with whom

Modern slavery, in all its forms, goes against

we have a direct relationship.

everything FARFETCH stands for. Ourcommitment to manage our business in Animals: Brands are assessed against the use of animal products and their animal welfare
policies, such as cruelty-free wool, if and how the brand uses leather, and whether and how
brands trace their sourcing of overall animal materials.

understand how to track the environmental impact of their purchase decisions on the planet,
considers which materials can reduce that impact and shows how pre-owned purchases canresult in environmental savings.

accordance with anti-modern slavery standards
is outlined in our Modern Slavery Statement
and we look to hold our suppliers to thesestandards via our Vendor Code of Conduct
applicable to all FARFETCH business partners.

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FARFETCH 2020 ESG REPORT

Responsible
marketing andcommunication
We are using our Conscious criteria and theGood on You ratings to create: Conscious Edits
for women, men and kids; Positively Conscious
labels, Conscious product descriptions andinformation on merchandise across partners;
and a ‘Sustainability filter’ on the FARFETCH
Marketplace. Browns has curated a Conscious
selection using the same criteria, with clear

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FARFETCH is committed to consistently improving
our Conscious criteria and consumer messaging
over time in order to reflect the most recent
research, learnings and standards. In light of this,the Conscious criteria are updated once a year toreflect the progress in the industry and raise thebar for our sustainability requirements accordingly.

Quality andsafety impactsof our products

online and in-store labelling of products. All

We work closely with our brand and boutiquethis is aimed at helping our consumers easily

partners, who generally hold the responsibility

find more Conscious brands and products andto ensure that the goods they sell via FARFETCH

make socially and environmentally informed

Marketplace comply with all applicable productdecisions about their purchases.

laws and regulations, such as flammability
standards, certificates of compliance and tracking

In order to further expand its offering oflabels. Where the responsibility lies with aConscious products and drive positive change

FARFETCH entity, we work closely with the brands

in the industry, FARFETCH is also supporting its

to ensure compliance. The FARFETCH Kidswear

brand and boutique partners with educational

Product Safety Policy sets out guidelines toworkshops on Conscious fashion and trends,

highlight the types of products that partners

THE FUTURE OF CONSCIOUS LUXURY

while developing Conscious seasonal buying

might be restricted to sell via the FARFETCH

guides to influence more sustainable supply

platform due to product safety restrictions.

In April 2021, we launched our first annual Conscious Luxury Trends Report in which we explore

strategies. Thanks to a close collaboration with

2021 onwards, to help the industry understand and act on the key drivers of sustainable change

Marketplace were identified and labelled asby leveraging the relevant insights that we share about FARFETCH Marketplace activity.

Conscious by the end of 2020.

COMPANY OVERVIEW

how consumers are engaging with sustainable ways of shopping and how brands, boutiques
and the luxury sector as a whole are responding. Our aim is to publish this report annually fromour partners, 1 in 10 products on FARFETCH

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POSITIVELYCIRCULAR
Under this pillar we are focused on driving
the sales of both Circular products andservices as this is where we see one of thebiggest opportunities to deliver positiveenvironmental change in ways that help
us grow our business.
OUR 2030 GOALOUR PROGRESS IN 2020

To be more circularrather than linear

3x

Number of units that were Circular(sold or serviced) grew by 3x,
and represented 1% of total units

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FARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELYOUR PROGRESS IN 2020
 In 2020, the total number of circular items
sold or serviced increased by 313%1
 Sales of pre-owned items increased by 53%
 Items sold made from recycled or upcycledmaterials increased by 144%

Making products
last longer

As part of this study we commissioned research

help our customers extend the life of the items they

We have increased the amount of pre-owned andreducing the demand for additional items that

already own and we have launched services torecycled/upcycled products on the FARFETCH

require new resources). We found that 57% ofencourage repairing, re-selling or donating them.

Marketplace, to shine a spotlight on circularity

overall pre-owned fashion purchases prevented

in luxury fashion. Doing this extends the life of

the purchase of something brand new.

 Items sold through Second Life increased
by 332%To ensure a sustainable future for fashion

 Items donated via FARFETCH Donate grew
662% between Dec 2019 and Dec 2020

being sold on the FARFETCH Marketplace.

 FARFETCH Second Life is live in 30
countries across Europe and USA
1	Refers to the items sold or serviced thatare pre-owned, recycled, or offered throughSecond Life and Donate. Data covers the
FARFETCH Marketplace, Brownsfashion.com
and Stadium Goods online.

we cannot just limit our thinking to products
At FARFETCH, we have a great opportunity to

Increasing our circularity is one of our 2030
goals and is designed to have the added
benefit of accelerating our progress to net
zero. Being circular means that the items weeither sell or service should be pre-owned;
made from recycled or upcycled materials; orhave their lives extended through FARFETCH
Circular services via resale, donation or repair.
In 2020, the total number of pre-owned items or
items made from recycled or upcycled materials
sold on the FARFETCH Marketplace increased by
144% in comparison to 2019. In 2020, the total

existing products and materials, reducing theneed for new resources, and the number of
items that go to waste. This has the potential
to increase substantially driven by the growthin customer demand for recycled, upcycled
and pre-owned products, and the scaling upof our service propositions.

to get an up to date displacement rate, the rate at
which the purchase of a pre-owned fashion item
replaces the purchase of a new item (therefore

Browns has enabled a number of circularcollaborations with designers that specialize
in upcycling and pre-owned products. Buying
pre-owned enables our customers to own
unique items, whilst also extending the life ofexisting products, thereby creating a positiveenvironmental impact.

Our consumers are asking us for more:according to our recent study on fashion resale,
38% of respondents mentioned that over half
their wardrobe is made up of pre-owned items.

number of circular products sold plus the number
put through our circular services represented
1% of all units sold or serviced.

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FARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELYOUR CIRCULAR PRODUCTS

313%

In 2020, the total numberof circular items sold orserviced increased by 313%
in comparison to 20191
1	Refers to the items sold or serviced thatare pre-owned, recycled, or offered throughSecond Life and Donate. Data covers the
FARFETCH Marketplace, Brownsfashion.com
and Stadium Goods online.

2020 (Total: 109,7372)

2019 (Total: 26,5662)

LOOKING AHEAD TO 2021

Circular products sold—either pre-owned or made from recycled or upcycled materials

EXPANDING THE REACH
AND SPECTRUM OF OUR
CIRCULAR SERVICES

51,85324,081

Items donated or sold through Second Life or Donate3
57,8842,485

FARFETCH launched FARFETCH Fix,
powered by The Restory, an on-demand2	Initiatives are only available on FARFETCH Marketplace.

service provider of modern after-care for

3 FARFETCH Donate was launched in October 2019 and Second Life was launched in May 2019.

luxury fashion, in February 2021. Throughthis partnership, we repair and restore
designer bags, shoes and accessories

FARFETCH
circular services

One-third of proceeds from the sale is donatedto their former glory. This service helps

to the consumer’s chosen charity. The consumer

us and our partners extend the life of

can then choose to either donate another third

items, and in doing so have a positive

to charity or receive FARFETCH Marketplaceenvironmental impact.

In 2019, we launched two initiatives that enablecredit. Thrift+ retains one-third of the proceeds

our customers to sell or donate their pre-owned

for administering the service.

items. Our FARFETCH Second Life service
enables our consumers to trade-in theirpre-owned designer handbags for FARFETCH
Marketplace credit. The service is available
in 30 countries across Europe and USA, andthe number of items sold through the service

In June 2021, we launched FARFETCH
Donate in the USA in partnership with

In addition to this and in line with our Positively

thredUP, an online thrift store selling

Circular commitment, we will continue to explore

high-quality pre-owned clothes.

what the environmental and social benefits ofour current and future circular initiatives are. We
also plan to continue investing in growing sales ofincreased by 332% compared to 2019.

circular products and uses of circular services by

Our FARFETCH Donate service, powered by ourwe have and exploring the opportunities presented

partner Thrift+ in the United Kingdom, allows

by expanding into new services and partnerships.

both investing to grow the existing propositions

FARFETCH consumers to donate used clothes,
which are then sold via Thrift+’s platform.

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POSITIVELYINCLUSIVE
We want to be able to anticipate and meetthe needs of the diverse community ofcreators, curators and consumers we workwith, represent and champion. A criticalpart of successfully delivering this is having
a diverse and inclusive workplace.
OUR 2030 GOALOUR PROGRESS IN 2020

To be a leader in
Conscious Inclusion

6

6 Core commitments madefor Conscious Inclusion in theworkplace and for our partners

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We have a 2030 goal to become a leader in
Conscious Inclusion by championing diversity
and inclusion in our workplace and the global
fashion community.

OUR PROGRESS IN 2020

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Delivering diversity
and inclusion

At FARFETCH we are committed to enablingchange in the workplace. In our FARFETCH

an anti-discriminatory and Consciously Inclusive

Threads podcast on Spotify, we shareculture, holding all Farfetchers accountable toconversations among Farfetchers acrossour values. Our FARFETCH for All philosophy,

different teams and geographies. This enables

To achieve our Positively Inclusive ambition wesponsored by our leadership team, is used as

us to tell the real stories about what it is like tohave outlined 6 core commitments:

a guide to support our community of diverse

work at FARFETCH and how we are building an

and talented people, so that we can anticipate

inclusive culture in our business.

1. Setting ourselves targets to achieve
diverse representation at every level ofthe organization.

 GMV for brands on the FARFETCH
Marketplace in our Black designeredit increased 66%

We aim to achieve market representation of 53% of our employees and 35% of
our executive leaders are women1

end of 2020, 53% of our permanent employees

talent at every level in the organization. At the Over 85 nationalities represented by
Farfetchers worldwide

and 4 of our 8 board members were women,

 56% of our new permanent hires were
women, this increased to 59% when
including temporary roles

2 out of 8 board members in 2019. In 2020, in Employees directed 7,000 Kiva loans,providing essential financial resources
to microbusinesses in underserved
communities in 53 countries

our Conscious Inclusion strategy moving forwards,

 94% of Farfetchers completed our
Humu employee engagement survey,
which reported that 90% would
recommend FARFETCH as a greatplace to work and 87% are passionate
about the work they doincluding ethnicity, disability, LGBTQIA+, parental

 10 Global People Communities establishedto support Farfetchers from different
backgrounds and identities

order to have a data-driven approach to inform
we started collecting diversity data from ouremployees and applicants beyond gender,
status, veteran status and faith information, tothe extent allowed by local laws, including dataprotection legislation. We aim to set diversity
targets and KPIs in order to close any gaps or
mitigate any biases that we see.

2. Evolving our Positively Inclusive
culture to foster an ethos of educationand empathy. We aim to mitigate bias
and address discrimination in all forms,
always with our values in mind.

1	Data as of July 2021.

CEO STATEMENT

compared to 51% of permanent employees and

COMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

and meet the needs of the broad communityof creators, curators, and consumers that weThis year we supported our Black Employee

work with and represent. According to our

Network and FARFETCH East Network, in lightrecent employee engagement survey, 85% ofof the racial injustice we saw across the world,

respondents feel a strong sense of belonging

supporting the Black Lives Matter and Stop Asianat FARFETCH.

Hate movements, holding listening sessions andeducational events with our employees, donating

Our global People Communities, as overseen

to charitable organizations that address systemicby the Conscious Inclusion Steering Committee,

racism and discrimination in wider society, andare essential to the growth of our culture.

also supporting our employee well-being.

These communities are developed and led by
Farfetchers across our offices and include theBlack Employee Network, Disability Network,
FarOut (LGBTQIA+ Network), FarSan (South
Asian Network), Jewish Network, FarLAN (Latinx
Network), FARFETCH East Network (East andSouth East Asian Network), Parents Network,
ROTA @ Browns (Race on the Agenda) and
Women in Business Network.

3. Rewarding all Farfetchers fairly,
regardless of their race, gender, sexual
orientation, disability or any otherpart of their identity or background.
As part of our annual compensation review
process, we carry out regular pay equity audits,
specifically on gender, to ensure all Farfetchers
are paid fairly. With the launch of our diversity

Our People Communities run a number ofdata collection exercise, we aim to conduct more

events, networking sessions, career development

robust reviews of our compensation practices

workshops, advise as thought leaders on

across our populations in the future.

commercial and business critical initiatives, andshare resources and insights in creating real

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4. Investing in our recruitment and careerdevelopment strategies to ensure all
Farfetchers can thrive and succeed
with us, by addressing any barriers
or biases they may face and widening
our talent sources.

CREATING EQUAL OPPORTUNITIES THROUGH
EXTERNAL DIVERSITY PARTNERSHIPS
We partner with numerous diversity-specificFashion Minority Report also delivered

recruitment organizations such as the Blackanti-racism training to UK managers to ensure

We have a number of initiatives that enable all

Young Professionals Network to build abetter awareness and allyship in the workplace.

Farfetchers to thrive in a culture of inclusion andworkplace with greater representation from thebuild a pipeline of diverse talent that reflects ourblack community and other under-represented

We are actively supporting the careersconsumers and society. Our recruitment activities

or minority communities. The network hasof LGBTQIA+ communities and people withare aligned with our Positively Inclusive commitment,

50,000 members across five continents anddisabilities. Our partnership with myGwork

which includes promoting diversity and ensuring

supports FARFETCH with the hiring, retaining,for example, a business network for LGBTQIA+

fair working practices. In 2020, we hired 1,186

nurturing and upskilling of Black heritage talent.

professionals, enables us to engage withnew employees globally of which 56% are women

Our first ever graduate program (UK) and ourand empower talent across the LGBTQIA+(2019: 1,389 of which 57% women). In 2020,

first internship program Elevate (US) drew

community. We partnered with HELSA for Prideethnically diverse hires from these partnerships.

month to offer LGBTQIA+ training to Farfetchers

our annual permanent employee turnover rate

to become better allies in the workplace and inwas 14.8%, a decrease compared to 2019 (22%) .
1

We are also collaborating with the ColorInTech

our China region held our first ever LGBTQIA+

At FARFETCH we have a very strong culture built

talent network that aims to increase diversity

Job Fair and Open Day.

upon our values and we are constantly working

across the tech industry.
We are also pleased to have signed up toto retain staff and maintain a low turnover rate, as
demonstrated by multiple initiatives documented

We successfully mentored young Blackthe Valuable 500, committing to support thein this section of our report.

students as part of Fashion Minority Report’s

employability of people with disabilities andfirst Emerging Professionals Mentoring

health needs.

Learning and development are important aspects

program and our Black heritage employees

in creating an environment that helps Farfetchers

participated in their first ever Established

own their career and thrive.

Professionals Mentoring program with senior

We expect to continue our partnerships withover 40 different organizations and charities
dedicated to supporting diversity, inclusion
and under-represented communities, including
the Black in Fashion Council, Fashion Minority
Alliance and She Can Code.

mentors across the fashion and tech industries.
1	Data includes FARFETCH Limited permanent employees
including customer services. It does not include employeesof Browns, Stadium Goods or NGG.

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GO FAR framework

In 2020, 94.4% of Farfetchers captured their

The platform hosts several courses, including

performance reviews through our internal system

Onboarding workshops, Conscious Inclusion

GO FAR is a framework to help our people thrive

and we are constantly working to improve thistraining, Leading Through Change and Manager

throughout their FARFETCH journey. GO FAR

through tutorials, training and communications.

Fundamentals. We aim for high participation

applies to the entire Farfetcher journey, creating

Creating environments in which Farfetchersin our training courses, and are proud that:strong foundations and bringing consistency

can learn from each other and collaborate on

to the key processes that impact our people.

relevant challenges is essential to this. In 2020,

 Good for FARFETCH: the ability to live
our values.

over time.

In 2018, FARFETCH launched its first
Management Fundamentals Development
program to help our managers develop

to provide a variety of training opportunities
for Farfetchers (including in-house designed

 Good for Growth: the potential to evolve

VIRTUAL MANAGER
DEVELOPMENT TRAINING

we launched our Workday Learning platformand delivered workshops and programs, which

required to perform the job today.

Learning and development
opportunities

the skills and competencies to lead theirteam, aligned with our values. PreviouslyWith more than 5,000 people working acrossthe program was organized as a two-day

14 countries, we are committed to ensuringin-person experience. Due to thethat all Farfetchers have development paths for

COVID-19 pandemic, we redesigned

their careers, through customized and inclusive

the experience to be virtual and spreaddevelopment programs. We encourage allover five modules: Authentic Leadership,

Farfetchers to routinely request and give

Feedback & Feedforward, Growth

feedback throughout the year, on top of the two

Mindset, Situational Leadership andannual opportunities for a performance review.

of our leadership team took theConscious Inclusion Training in 2020are supplemented with content from Udemy
and Coursera) globally across our operations.

 Good for Role: the skills and competencies

100%

This learning platform not only supports
our employees’ development, but also
increases transparency on training-related
data which enables us to identify opportunities
for improvement. In 2020 the average hours of
training undertaken by men was 18.4 and 13.2
for women1. The figure is higher for men as ourtechnology department has a larger percentage
of male employees. On average, our technology
team engages in more training to keep up withconstant updates and progression in the industry.
Within our technology team, women have a higher
number of average training hours, i.e. 26.3 vs 22.4
for men.

In addition in 2021, we are providing mandatory
Unconscious Bias training to every Farfetcher
globally, followed by training on Everyday Inclusion.

Hiring for a diverse andinclusive workforce
Our Talent Aquisition teams adopt a
company-wide tool to ensure more inclusive
job descriptions. In addition to this, we enhanced
targeted sourcing strategies to widen accessto diverse candidate pools and increased
advertising across Black heritage and ethnic
minority candidate specific job boards andnetworks. The talent team also embed diversity

Great Conversations. In 2020, we

and inclusion expectations, as well as the SEEDsdelivered the program to 18 cohortsmodel (mitigating unconscious bias), as part offor almost 300 participants globally.

hiring manager meetings and training sessions.
1	Data covers FARFETCH and does not cover Browns, Stadium Goods or NGG.

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In order to enhance diversity in our early careers

In addition, our accessibility program with

programs, we are actively recruiting a more

champions across our Tech division aims

diverse pipeline of talent from under-represented

to ensure we are working on improving ourgroups into our organization, through ouraccessibility across our website and app.

FARFETCH Elevate internship program (US), ournew graduate program (UK) and our Plug-In
program (Portugal).

5. Ensuring the FARFETCH Marketplace
and platform includes, and is accessible
to, a representative spectrum of social
identities and needs.

6. Giving dedicated space forexpression, additional commercial
support, and above benchmark
visibility to designers and businesses
from under–represented communities.
We are actively championing the value ofHealth and safety
We are committed to managing and operating
FARFETCH in a manner that is protectiveof human health and safety, as well as theenvironment, as outlined in our Code ofBusiness Conduct and Ethics.
For example, in Portugal, where we have thelargest population of Farfetchers, health andsafety is an important aspect of our strategy.

Conscious Inclusion across the whole fashion

In order to increase awareness on this topic, we
introduced an online Health & Safety course topromote a well-being culture and risk prevention
for all Portugal Farfetchers. On site we have 2
nurses and 1 health and safety specialist, which
is fundamental for the development of a healthand safety culture on a daily basis. We address
important issues, such as risk prevention, internal
procedures, and healthy practices in the workplace.
As a response to the COVID-19 pandemic,
we launched additional training on the internal
outbreak response plan and our safety culture.

For our customers, we aim to ensure thecommunity, including our focus on increasing

FARFETCH marketplace and platform includes,

the number of Black heritage designers on ourand is accessible to, a representative spectrum

platform and developing new partnerships suchof social identities and needs. Our aim is toas with The Folklore, an online retailer dedicatedhave an inclusive representation across all

to designers from Africa and its diaspora. These

Our top priority has been the health and well-being of Farfetchers, our boutique and brand partners,

our editorial content and marketing activities.

efforts have resulted in an increase of Blackand our customers. For Farfetchers we ensured they were safe and healthy, and supported them todesigner brands sold through the FARFETCH
We have had a number of Consciously Inclusive

work from home. We built global communications tools and work from home guides for our local

Marketplace. We have also developed our Black

marketing moments and activations across the

Office Management teams to tailor and send locally at the appropriate times. We also built a suite ofdesigner strategy to support emerging Black

calendar including International Women’s Day,

caring initiatives, including an exceptional bonus for Farfetchers to look after themselves, time off forowned brands on our marketplace.

working parents and carers, and a special breakfast to celebrate our 12-year anniversary in October

Pride Month, Lunar New Year, Ramadan andBlack History Month, alongside embedding

GMV for brands in our Black designer edit on

everyday Consciously Inclusive content

the FARFETCH Marketplace increased by 66%

across all our channels in surfacing designers,

compared to 2019. We plan to continue providing

brands and boutiques owned by members

a dedicated space for expression, additionalof under-represented communities.

commercial support. For our suppliers, in 2021 weare setting up our first inclusion and sustainability

We have set targets to further our inclusive

program in our Procurement team across the UK,

representation in 2021 across marketing,

US and Portugal to increase onboarding of minority

casting and customer engagement.

owned supplier businesses to our supplier list.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

REACTING TO THE COVID-19 PANDEMIC

2020. We ensured our leadership team were as visible as possible and provided regular opportunities
for Farfetchers to ask questions about the ongoing situation, through channels such as global calls,
video diaries, slack and Q&A sessions, enabling our people to connect with each other and learn
more about the business response to the pandemic. For our boutique and brand partners, whose
stores were closed and businesses significantly impacted by the lockdowns, we launched our#SUPPORTBOUTIQUES campaign. We increased visibility of their stock, provided discounts to
our fees and supported them with fulfillment services, guidelines and protective wear to ensure
the safety of their employees where needed.

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Engagement
and well-being

FARFETCH’s benefits program covers several

Conducted annually, our Company-wide

program enables our employees to support aemployee happiness survey, Humu, enables

charity or cause close to their heart throughus to understand and act upon the topics mostdirect donations.

important to our employees. Our September
2020 survey had a 94% response rate (comparedto 88% in 2019). The results showed that 90%
of respondents would recommend FARFETCH
as a great place to work and 87% are passionate
about the work they are currently doing.

other impact areas, including physical, financial,family, work-life balance and giving back to agood cause. For instance, our Give As You Earn

Supporting
communities
As part of our Positively Inclusive commitment,
we look for ways to extend our positive impact

We aim to continue to promote and raiseand support beyond our direct operations. Eachawareness for our current internal benefits

year, we sponsor every Farfetcher’s opportunityand offerings, which enables our employees

to provide capital for the underserved by micro

to select the benefits that accommodate theirloaning in partnership with Kiva. In 2020, thepersonal needs. To support our employees’

Company directed over 7,000 Kiva loans (overmental well-being, we have partnered with

85% of which were awarded to women) with

Unmind, a workplace mental health platform toa total value of $169,300 to help underserved

help empower Farfetchers to live more fulfilling

communities thrive in 53 countries globally.

and balanced lives by changing the way weapproach mental health. FARFETCH sponsors

In addition, every Farfetcher also gets two

this benefit for each employee plus one‘Giveback Days’ a year to volunteer for a cause

friend or family member, and many teams

close to them. However, due to the COVID-19

use it during meetings and training sessions.

pandemic, there were fewer opportunities to
use these days in 2020, so we converted them

LOOKING AHEAD TO 2021

LAUNCHING OUR POSITIVELY LIVING STRATEGY
In 2021, we launched our Positively Living strategy, built around seven key well-being dimensions
that contribute to our employees’ sense of happiness and quality of life. The strategy is supported
by our Well-being Steering Committee, which guides and oversees the progress of our ambition.
Our strategy is informed by our first annual Positively Living Index study, an ongoing Company-wide
pulse survey in which we measure psychological, financial and physical well-being of our employees.
We had a response rate of 48% during our latest survey in April 2021, and aim to continue driving
participation through employee communications and engagement.

to ‘Caring Days’ for our employees to focus onthemselves and their mental well-being.

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GOVERNANCE
AND
ENGAGEMENT
At FARFETCH, our values are at theheart of everything we do and we usethem as a guide to make decisions andempower our people, our customers
and the partners we work with. Our
governance is about more than compliance.
It is about business ethics, being humanand creating a culture of sustainability.

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GovernanceAn effective governance structure is essential toembed our Positively FARFETCH strategy at all thelevels of our organization and deliver long-termvalue. Our aim is to enable Farfetchers to drive
positive change and give our partners andstakeholders the platform to make a difference.
FARFETCH is overseen by our Board of Directors
and four committees. The Board of Directors (theBoard) consists of eight members of which sevenare non-executive directors, bringing in a wealthof experience and expertise to FARFETCH1.

OUR PROGRESS IN 2020
 We are working with EcoVadis tocomplete sustainability assessmentsof our key suppliers, to help themunderstand and improve their socialand environmental impact
 We joined the Board Challenge, an initiative
to improve the representation of Black
Directors in corporate US boardrooms,
as a Charter Pledge Partner
 75% of Board Committee chairs and
50% of Board members are women

CEO STATEMENTCOMPANY OVERVIEW

Four of our directors are women, representing 50%

The Committee oversees the Positively FARFETCHof the composition of the Board. In 2020, we joined

strategy implementation and progress. While thethe Board Challenge, an initiative to improve theBoard is ultimately responsible for the direction

representation of Black Directors in corporateof the company’s strategy and activities, theUS boardrooms, as a Charter Pledge Partner.

implementation of our strategy and progress on
our commitments is monitored and supported

The Board’s four standing committees: Audit,
Compensation, Nomination & Corporate
Governance, and ESG2 are responsible for theoversight of the management and performanceof their focus area as defined by their respective
charters. In 2020, we formed an ESG Committee,
chaired by Stephanie Horton, an independent

at several levels within the organization.
1	We have eight Directors, all of whom, other than Mr. Nevesand Mr. Evans, have been determined by the Board toqualify as “independent” pursuant to the rules of the NYSE.
2	More information on our committees can be found inour 2020 Annual Report on page 110 and the FARFETCH
Investors website.

director, of which our Founder, Chairman andCEO, José Neves is also a member.

BOARD OF DIRECTORSESG COMMITTEELEADERSHIP TEAM

Ultimately responsible for overseeing theCompany’s strategy, risk management andcorporate reporting

Supports the Board in overseeing ESG
matters most relevant to FARFETCH

Including the Chief Commercial andSustainability Officer, sets out the strategy
and ambitious commitments, and implements
best practices within the Company

CROSS-DEPARTMENTAL WORKING GROUPSUSTAINABLE BUSINESS TEAM

Members of Sustainability, Diversity and Inclusion, Ethics and Compliance,
Legal, Communications, People and Investor Relations teams, facilitate ESG
reporting, stakeholder engagement and take direction from the ESG Committee
and Leadership Team to support the implementation of best practices within
the Company

Led by the Director of Sustainable Business, provides guidance and defines
actions to achieve the strategy and our commitments, working with the wider
business to drive our Positively FARFETCH strategy

POSITIVELY CLEANERPOSITIVELY CONSCIOUS

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Business ethics
policies and training
Our policies and management systems provide the

LONG-TERM INCENTIVE PLAN

base of our culture of compliance and integrity,

In May 2021, we further aligned with shareholder interests through a long-term equity award granted toand address risks across our organization. This
culture establishes that it is essential that all
Farfetchers act with the highest levels of integrity.
Our core principles and standards of business

the Company’s Founder, Chairman and CEO, which provides compensation solely in the from of shareprice performance-based restricted share units. More information on the LTIP can be found here.

ethics that we require all Farfetchers to adhere

ANTI-HARASSMENT AND ANTI-DISCRIMINATION STATEMENT

to, are set out in our Code of Conduct.

In 2020 we established an Anti-discrimination and Harassment Committee that aims to ensure

Looking beyond our own operations, we also
expect our suppliers to meet our high standards,
which are outlined in our Vendor Code of
Conduct and our Ethical Sourcing Policy. Our

Compensation linked
to our ESG Strategy

LOOKING AHEAD TO 2021

Vendor Code of Conduct for example covers

that we tackle discrimination related issues seriously and fairly across the globe. Concerns raised
via our speak up channels involving harassment or discrimination related to any legally protectedcharacteristic, are escalated to the Anti-Discrimination and People Conflicts Committee on aconfidential basis for review of outcomes to ensure fairness, consistency, and alignment with
FARFETCH values.

a number of key concepts, ranging from humanWe define discrimination as less favorable treatment based on any legally protected characteristic

and labour principles to environmental and(which may be defined differently in each region), including but not limited to sex, race (including

compliance principles. To see the list and links

traits historically associated with race, including, but not limited to, hair texture and protective

to all our company policies, please view page 28.

hairstyles), ethnicity, religion or belief, age, gender identity, gender transition, ancestry, sexual

Compensation linked to Objectives and Key

orientation, military or veteran status, marriage and civil partnership, pregnancy and maternity,

Results (OKRs) is a key part of our reward

Each permanent employee at the Company isframework. The majority of our leadership

required to complete our global ethics andteam have ESG-related OKRs linked to theircompliance training modules and attest to certain

compensation, that is further embedded incompany policies, which cover areas such as

In 2021, a mandatory attestation campaign of the renewed Anti-Harassment and Anti-Discrimination

the objectives of their teams throughout theInsider Trading, Speak Up channels, Anti-Bribery,

Statement was rolled-out to all Farfetchers. Updates to policy training for our People team andbusiness. The OKRs span across our Positively

Anti-Corruption, Data Privacy and Cyber Security.

managers are planned across all regions.

FARFETCH strategy, and it includes among

In addition, upon joining FARFETCH and thereafter,others, our progress related to our Conscious

our employees must certify that they understandInclusion commitment.

and will comply with our Code of Conduct.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

national origin, citizenship, disability (including certain medical conditions), genetic information,or any other basis protected by applicable law.

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To maintain our culture of speaking up we have
five speak up channels including two anonymous

Data privacy andcyber security

JOINING FORCESWITH OUR SUPPLIERS

channels—a speak up line and portal—which areexternal parties, including suppliers, to raise any

Being a data-driven business, FARFETCH takes

In 2020, we started working withconcerns or questions.

privacy and data protection matters seriously,

EcoVadis to measure both the socialand environmental performance of our
procurement suppliers. This partnershipis expected to enable FARFETCH to workwith key suppliers on key actions they
can take to improve their performanceand reduce their ESG impact.

Speak Up culture
We encourage our employees to be themselves,
look after other Farfetchers and help them
become successful, as well as speak up wheneverthey feel they have something to say. The speak
up culture at FARFETCH represents our open
door policy encouraging Farfetchers to always
do the right thing, ask questions when they
don’t know what the right thing is, and report
it when they see the wrong thing being done.

available 24/7 globally for our employees andAll reports made via a Speak Up channel aretreated seriously and, to the fullest extent

pursuing high standards in each and every
project, partnership and initiative that involves

Links to all of our Privacy Policies can be foundin the report Annex. For more information on our
approach to data privacy please see page 75 ofour 2020 Annual Report.
In order to achieve such compliance, FARFETCH
implemented an organizational structure formanaging data protection and information

the processing of personal data.

governance, providing strong leadership, clear

any retaliation or unlawful discrimination for

We process personal data from our own

flows. Whenever a third-party or provider isspeaking up in good faith. Details of how

customers, partners, brand’s customers

engaged to process personal data jointly or

to access any of our five Speak Up channels

and employees based around the world,

on behalf of FARFETCH makes sure to enterand our policy of non-retaliation are included

within its daily business activities, as well as

into contractual obligations with this party

in our Code of Business Conduct and Ethics.

the development of new and revolutionary

to ensure its high standards of privacy are

initiatives for luxury partners.

maintained but also to request security andpossible, confidentially. FARFETCH prohibits

Tax strategy
The tax approach for FARFETCH Limited andits subsidiaries consists of a tax governancestructure and a control framework, including a
tax strategy, a tax risk register, and documented
processes. Ultimate responsibility for our tax
strategy lies with the Board of Directors. The
Company has a zero-tolerance approach tofacilitating tax evasion. Following the enactmentof the UK’s Criminal Finance Act 2017, theCompany operates a Preventing Tax Evasion
Policy. More information on our tax andcompliance-related reporting can be foundreporting, accountability and effective information

privacy documentation in order to conduct
The Company considers that personal dataa privacy assessment.

must be managed with respect for privacy
and data protection principles, committing to

Our security measures, and those of our

the processing of such data in a lawful, fair, andthird-party service providers, aim to detect

transparent manner, as well as in complianceor prevent attempts to breach our or theirwith the General Data Protection Regulation

systems. Our security systems are certified(GDPR) and other applicable data protection

with PCI-DSS Level 1, SOX and MLPS, and arelaws (CCPA, LGPD, amongst others). We and ouralso aligned with ISO 27001, NIST and COBIT

affiliates have a number of Privacy Policies whichto ensure our controls are comprehensive

set out the information we collect, the reason why

and consistent. Our information security

we collect the information, and how we can use

program is externally evaluated and assessedand share the information in compliance withby EY against their Cybersecurity Program

the data protection laws in relevant jurisdictions.

Assessment framework.

in our 2020 Annual Report.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

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ANNEX:ABOUT THISREPORT
This 2020 ESG Report provides an overview of our progress towards our commitments outlined in the
Positively FARFETCH strategy. The activities, initiatives, progress and metrics mentioned in this report cover
all of our businesses under FARFETCH Limited and its subsidiaries, unless otherwise noted. FARFETCH isdefined as the business activities performed by FARFETCH Limited and its consolidated subsidiaries. We
plan to continue improving the quality of our ESG data by improving internal data management systems
and obtaining external assurance on selected metrics in future ESG Reports.
The reporting period follows the financial year 2020 (FY20), which runs from January 1, 2020 to December 31,
2020. The information in this year’s report is aligned with the Sustainable Accounting Standards Board (SASB)
and Global Reporting Initiative (GRI) recommendations. Relevant policies, reports and other documents
referenced throughout this report and outlined on page 30 are intended to inform our stakeholders.
This Environmental, Social and Governance Report (“ESG Report”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this ESG Report that do not relate to matters of historical fact should beconsidered forward-looking statements, including, without limitation, statements regarding our 2030 Goals, our future business expectations and expectations about the luxury industry, our environmental, social and governance goals, planned activities and objectives, our strategic
priorities and objectives, as well as statements that include the words “expect,” “intend,” “plan,” “will,” “believe,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current
expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements, including, but not limited to, the impact of COVID-19 on our business operations and the other important factors discussed under the caption “Risk Factors” in our filings with the U.S. Securities and Exchange
Commission, as such factors may be updated from time to time. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors
on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. You should not rely upon forward-looking statements as predictions of future events.
In addition, the forward-looking statements made in this ESG Report relate only to events or information as of September 13th, 2021, the date of this ESG Report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

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ANNEX:ADDITIONAL SOURCES
Document name

Description

Document name

Description

2020 Annual Report

Report on our financial-related information.

Investor-related information

Including information on our business, financial news, presentations,financial reports, corporate governance and ESG related information.

Anti-harassment andAnti-discrimination Statement

Statement outlining our global stance on harassment and discriminationin the workplace and at work related events.

Modern Slavery Statement

Statement in line with section 54 of the Modern Slavery Act 2015.

Code of BusinessConduct and Ethics

This policy serves as a guide of principles and standards for Farfetchers
day-to-day activities, helping them to work and make the right decisions.

Outlining how we collect and use customer data.

Conscious Materials, Processes
and Certification & Banned Furs

Providing an overview of all conscious materials, processes and theircertifications, as well as furs banned from FARFETCH.

FARFETCH Privacy Policy;
Browns Privacy Policy;
Stadium Goods Privacy Policy;
FARFETCH Group Candidate

Ethical Sourcing Policy

Outlining the principles FARFETCH expects all its partners and othersuppliers to comply with, including providing an environment which protects
their employees’ health and safety, basic human rights, protecting theenvironment and excluding products made from fur or endangered species.

FARFETCH Vendor
Code of Conduct

Outlining the main principles FARFETCH adheres to and expects all
its business partners providing goods or services to comply with.

Governance-related documents

Including Committee documents and Corporate Governance Guidelines.

NGG brands:
Ambush;Heron Preston;Marcelo Burlon;
Off-White;
Opening Ceremony;
Palm Angels
Tax strategy

Outlining our approach on tax management and governance.

An up to date list of our policies can be found here.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

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FARFETCH 2020 ESG REPORTTHINK, ACT AND CHOOSE POSITIVELYANNEX:DATA TABLES

We plan to continue assessing opportunities to improve our ESG reporting approach and are committed
to increase transparency, which will be crucial for improved performance. This year, we share our ESG data forkey metrics relevant to our business and the fashion community. The metrics cover all of our businesses under
FARFETCH Limited and its consolidated subsidiaries, unless otherwise noted.

Positively Cleaner
Climate change adaptation and mitigation
20201
GRI 305-5

Total GHG emissions in tCO2-eq

264,238

GRI 305-1

Scope 1 emissions in tCO2-eq and percentage of footprint

637 (0.2%)

GRI 305-2

Scope 2 emissions in tCO2-eq and percentage of footprint (market based)

2,651 (1%)

Scope 2 emissions in tCO2-eq (location based)
GRI 305-3

3,942

Scope 3 emissions in tCO2-eq and percentage of footprint

260,950 (98.8%)

Purchased goods2 and services in tCO2-eq and percentage of scope 3 emissions

102,144 (39%)

1	No primary data was collected in 2020 for scope 1 and 2, given the small contribution to the footprint, as highlighted in 2019. 2019 GHG emissions were linearly extrapolated to 2020 based on m2 change between both years. Change in renewable electricity supply between both
years was taken into account and adapted accordingly. Emission factors used: Scope 1: DEFRA—Greenhouse gas reporting: conversion factors 2019.
2	Products directly purchased or manufactured.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

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31

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2020
SASB CN0404-04.

GRI 302-1

i.

Downstream transportation and distribution in tCO2-eq and percentage of scope 3 emissions

145,976 (55%)

Other emissions in tCO2-eq and percentage of scope 3 emissions1

12,830 (4.8%)

Total energy consumption (in kWh) from within the organization

10,497,106

Total energy consumption (in kWh) from within the organization (non renewable)

7,738,313
26%

Percentage of renewable energy2

1 Covers Upstream transportation and distribution, Waste generated in operations, Business travels, Employee commuting, Product use*, End-of-life treatment of sold products*, and Franchises.
2	Renewable electricity use for 2020 was calculated based on the m2 and the moment in the year the renewable electricity tariff was introduced. Renewable energy is considered to have no CO2 emissions.
*From products directly purchased or manufactured.

Operational environmental impact
2020
GRI 306-3

Total weight of waste generated in metric tons3

11,795

3	Data based on waste generated in our direct operations. Waste emissions calculated in 2019 were updated based on property m2 change between 2019 and 2020. In addition, primary data was collected in 2020 for the first time for the photo studio and multiplied by averagetransportation distances for waste treatment, and the corresponding ecoinvent waste treatment emission factors.

Positively Conscious
Product traceability and transparency
20204
GRI 308-1, 414-1

CEO STATEMENT

Number of suppliers assessed on social and environmental topics (percentage)

COMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

100% brand partners assessed plus an additional 487 brands
sold on the FARFETCH Marketplace sourced via boutiques

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20204
SASB CG-AA-440a.2.

Percentage of raw materials certified by Good on You (GoY) and other standards.

Conscious products represent 5.5% of Group GMV
On the FARFETCH Marketplace 6.7% of Group GMV was Consciouswith 51% brands meeting the GoY standards and 49% qualifying via
other standards, incl GOTS, BCI, Certified tanneries etc

4	Data refers to the brand partners on the FARFETCH Marketplace.

Positively Circular
Product durability and circularity
2019

2020

Total circular items sold or serviced1

26,566

109,737

Circular products sold—either pre-owned or made from recycled or upcycled materials

24,081

51,853

Items donated or sold through Second Life or Donate2

2,485

57,8841	Initiatives are only available on FARFETCH Marketplace.
2 FARFETCH Donate was launched in October 2019 and Second Life was launched in May 2019.

2020
GRI 301-3

Total percentage of circular products sold or servicedi.

Percentage for the FARFETCH Marketplace

1.4%

ii.

Percentage for Browns

0.8%

GRI 301-2

Percentage of recycled, upcycled or pre-owned items sold on the FARFETCH Marketplace

0.7%

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANER

1%

POSITIVELY CONSCIOUS

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Positively Inclusive
Employee diversity and inclusion
2020
GRI 405-1b

Total number of permanent employees

5,441

i.

Percentage of women permanent employees

53%

Percentage of men permanent employees

47%

Percentage of under 301

39%

Percentage of 30–50 years old1

60%

Percentage of over 50 years old1

1%

ii.

1 Data includes FARFETCH Limited permanent and temporary employees excluding Browns, Stadium Goods or NGG.

Skills training and empowerment
GRI 401-1a

New hires2

2020

i.

Total number of new hires

1,186

ii.

Breakdown by genderiii.

Breakdown by age groupiv.

Breakdown by geographical area

CEO STATEMENTCOMPANY OVERVIEW

Women – 56%
Men – 44%POSITIVELY CLEANER

Under 30 – 55.65%
30–50 years old – 43.59%
Over 50 years old – 0.76%
EMEA – 75.04%
NA – 3.54%
APAC – 18.04%
LAC – 3.37%

POSITIVELY CONSCIOUS

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GRI 401-1b

Turnover2

2020

i.

Employee turnover rate

14.8%

ii.

Breakdown by gender

Women – 15.3%
Men – 14.3%

iii.

Breakdown by age groupiv.

Breakdown by geographical area

GRI 401-1b

Training2

i.

Average hours of training by gender

Under 30 – 15.04%
30–50 years old – 14.65%
Over 50 years old – 11.27%
EMEA – 13%
NA – 17.4%
APAC – 22.2%
LAC – 30.5%

2020
Women – 13.2
Men – 18.4

2020
GRI 404-3

Percentage of employees who received a regular performance and career development review

94.4%

2 Data includes FARFETCH Limited permanent employees, excluding Browns, Stadium Goods or NGG.

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

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Employee well-being, health and safety
GRI 403-9a

20201

i.

Number of fatalities as a result of work-related injury

0ii.

The number of high-consequence work-related injuries (excluding fatalities)

0

iii.

The number of recordable work-related injuries

21

1 Data covers our Portugal operations where the largest number of Farfetchers across our operations are located.

Governance and Engagement
Compliance and business ethics

GRI 205-2b

Percentage of employees that anti-corruption policies and procedures have been communicated to100%

GRI 205-2

Percentage of permanent employees that are required to receive training on anti-corruption

100%

CEO STATEMENTCOMPANY OVERVIEWPOSITIVELY CLEANERPOSITIVELY CONSCIOUS

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ANNEX‘FARFETCH’ and the ‘FARFETCH’ logo are trade marksof FARFETCH UK Limited and are registered in numerous
jurisdictions around the world.
© Copyright 2021 FARFETCH UK Limited. All rights reserved.