Company: WRBY
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001504776-25-000010
Chunk: 187

Company: Warby Parker Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 187
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or timely achieve progress on) such aspirational goals could adversely affect our third party ESG ratings, our reputation or otherwise adversely affect us. Simultaneously, there are efforts by some parties, including but not limited to investors, environmental activists, policymakers, the media and governmental authorities and nongovernmental organizations, to reduce companies’ efforts on certain ESG-related matters. Both advocates and opponents to certain ESG matters are increasingly resorting to a range of activism forms, including media campaigns and litigation, to advance their perspectives. To the extent we are subject to such activism, it may require us to incur costs or otherwise adversely impact our business. Furthermore, if we do not successfully manage diverging ESG-related expectations across stakeholders, it could erode stakeholder trust, impact our reputation, subject us to investigation, litigation or shareholder activism, and adversely affect our business, financial condition, results of operations and cash flows.

In addition, various regulatory authorities have imposed, and may continue to impose, mandatory substantive or disclosure requirements with respect to ESG and sustainability matters. For example, we may be subject to various disclosure requirements (such as information on greenhouse gas emissions, climate risks, use of carbon offsets, and emissions reduction claims) from the State of California, including SB 253 and SB 261, as well as the SEC’s climate disclosure rules, pending the outcome of current litigation and stay, and the International Sustainability Standards Board’s sustainability and climate standards (which have been adopted or are pending adoption in some form by various jurisdictions, including Canada) among other current or future regulations or requirements. These requirements may not always be uniform across jurisdictions, which may result in increased complexity, and cost, for compliance, as well as could lead to increased litigation risks related to disclosures made pursuant to these regulations and/or legal requirements, any of which could materially and adversely affect our financial performance. Any of the foregoing may 

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require us to make additional investments in facilities and equipment, require us to incur additional costs for the collection of data and/or preparation of disclosures and associated internal controls, may impact the availability and cost of key raw materials used in the production of our products or the demand for our products, and, in turn, may adversely impact our business, operating results, and financial condition. Additionally, many of our suppliers and business partners may be subject to similar requirements, which may augment or create additional risks, including risks that may not be known to us.

In light of investors’ and regulators’ increased focus on ESG matters, there can be no