Deckers Outdoor : FY24 DECKERS CREATING CHANGE REPORT

Published: 2024-11-13 13:51:05 ET DECK

CREATING CHANGE

FY 2024 CORPORATE RESPONSIBILITY AND SUSTAINABILITY REPORT

FOR THE REPORTING PERIOD APRIL 1, 2023 - MARCH 31, 2024

TABLE OF CONTENTS

DECKERS BRANDS IN SUMMARY - FY24

WELCOME

MESSAGE FROM OUR CEO INTRODUCTION

CREATING CHANGE: STRATEGIC APPROACH

UNITED NATIONS GLOBAL COMPACT AND DECKERS' SUSTAINABLE DEVELOPMENT GOALS

HIGHLIGHTS OF FY24 ACHIEVEMENTS MADE TOWARDS

OUR SUSTAINABLE DEVELOPMENT GOALS

DECKERS BRANDS ENVIRONMENTAL, SOCIAL, GOVERNANCE PROGRAM FY24 UPDATE

OUR FOUNDATION

PROGRAM GOVERNANCE

STAKEHOLDER ENGAGEMENT

PRIORITY ISSUES

COMPANY VALUES

INTEGRITY FIRST

GENDER EQUALITY, QUALITY EDUCATION, AND REDUCED INEQUALITIES

PEOPLE

DIVERSITY, EQUITY AND INCLUSION

HOLISTIC WELLBEING

COMMUNITY

ENVIRONMENT

MATERIALS

PACKAGING MATERIALS

CLIMATE AND CLEAN ENERGY

WATER

WASTE

HUMAN RIGHTS

124

CHEMISTRY & CONSUMER SAFETY

137

CONCLUSION

145

ADDITIONAL INFORMATION

147

DEFINITIONS

151

FY24 DISCLOSURES

152

GLOBAL REPORTING INITIATIVE (GRI) INDEX

SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) INDEX

TASK FORCE ON CLIMATE RELATED FINANCIAL DISCLOSURES (TCFD) INDEX

INDEPENDENT ACCOUNTANTS' REVIEW REPORT

SUPPLY CHAIN PARTNER DISCLOSURES

APPENDICES

UGG®

HOKA®

TEVA®

KOOLABURRA BY UGG®

SANUK®*

*In August 2024, Deckers sold Sanuk to Lolë Brands.

DECKERS

BRANDS

IN SUMMARY

GRI 2-1

DECKERS

BRANDS

IN SUMMARY

FY24

OUR BRANDS

OUR ACTIVITIES

We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities.

TOTAL SALES

$4.29

BILLION

DECKERS BRANDS

WELCOME

FY24 ACHIEVEMENTS

OUR FOUNDATION

PEOPLE

ENVIRONMENT

HUMAN RIGHTS

CHEMISTRY & CONSUMER SAFETY

CONCLUSION

ADDITIONAL INFO

DISCLOSURES

DECKERS BRANDS IN SUMMARY - FY24 (CONTINUED)

• COUNTRIES WHERE OUR PRODUCTS ARE MADE

•COUNTRIES WE SUPPLY FROM

• T1 & T2 SUPPLY CHAIN PARTNERS

•MARKETS SERVED

CORPORATE HQ

GOLETA, CA

COUNTRIES WHERE OUR

COUNTRIES WHERE

MARKETS SERVED

PRODUCTS ARE MADE

WE SUPPLY FROM

NORTH AMERICA • APAC

CHINA, VIETNAM, TAIWAN, PHILIPPINES,

CHINA, VIETNAM, TAIWAN, INDONESIA,

EMEA • SOUTH AMERICA

CAMBODIA, INDONESIA, DOMINICAN

CAMBODIA, AUSTRIA, INDIA, KOREA,

REPUBLIC, THAILAND, MALAYSIA

GERMANY, ITALY, UNITED KINGDOM, UNITED STATES

GRI 2-1

SASB CG-AA-000.A

FY24 SUPPLY CHAIN PARTNERS:

CHINA (140)

Tier 1: 1 Footwear and 14 Lifestyle

Tier 2: 125 Suppliers

VIETNAM (83)

Tier 1: 13 Footwear and 2 Lifestyle

Tier 2: 68 Suppliers

INDONESIA (8)

Tier 1: 2 Footwear and 1 Lifestyle

Tier 2: 5 Suppliers

CAMBODIA (3)

Tier 1: 2 Footwear

Tier 2: 1 Supplier

PHILIPPINES (1)

Tier 1: 1 Footwear

DOMINICAN REPUBLIC (1)

Tier 1: 1 Footwear

THAILAND (1)

Tier 1: 1 Footwear

MALAYSIA (1)

Tier 1: 1 Lifestyle

TAIWAN (18)

Tier 2: 18 Suppliers

AUSTRIA (1)

Tier 2: 1 Supplier

INDIA (1)

Tier 2: 1 Supplier

KOREA (1)

Tier 2: 1 Supplier

GERMANY (1)

Tier 2: 1 Supplier

ITALY (1)

Tier 2: 1 Supplier

UNITED KINGDOM (1)

Tier 2: 1 Supplier

UNITED STATES (1)

Tier 2: 1 Supplier

*As of April 2024, Deckers has 39 Tier 1 Factory Partners and 224 Tier 2 Supplier Partners.

DECKERS BRANDS

WELCOME

FY24 ACHIEVEMENTS

OUR FOUNDATION

PEOPLE

ENVIRONMENT

HUMAN RIGHTS

CHEMISTRY & CONSUMER SAFETY

CONCLUSION

ADDITIONAL INFO

DISCLOSURES

WELCOME

MESSAGE FROM OUR CEO INTRODUCTION CREATING CHANGE: STRATEGIC APPROACH

UNITED NATIONS GLOBAL COMPACT AND DECKERS' SUSTAINABLE DEVELOPMENT GOALS

GRI 2-22

MESSAGE FROM OUR CEO

As I step into my new role as President and Chief Executive Officer, I am exhilarated by the future ahead and inspired by our 'Do Good and Do Great' culture. Deckers truly is a purpose- led organization, and I believe we will continue to reach even greater heights, guided by our commitment to make a positive impact on the world. I would like to thank Dave Powers

for his outstanding leadership in this space and we remain committed to operating Deckers in a socially conscious and environmentally mindful manner.

Our Creating Change report highlights our accomplishments and challenges, as well as the dedication of our employees around the globe. From making progress on our sustainability efforts, to fostering a culture of inclusivity, it is the effort of the Deckers community that makes our culture unique and special. We firmly believe Environmental Social Governance (ESG) brings our employees together, contributes to our ongoing success, and positions us for the future.

As an organization, we continue to deliver exceptional performance and build remarkable brands, thanks, in part, to our ESG program. It is who we are!

We continue to accelerate our environmental efforts, harnessing our influence to promote more sustainable business practices in our own operations, and supply chain. Here are a few key environmental highlights from FY24:

Deckers continues to make progress towards our goal of creating a more equitable and inclusive future for all. Here are few key highlights from FY24:

We are also extremely proud of Deckers Gives, our charitable giving program, through which we donated over $4.6 million to non-profit organizations supporting environmental causes, education, uplifting youth, and helping elevate underserved individuals and communities. We continued our biannual Art of Kindness week, during which all our employees across the globe are encouraged to volunteer their time and give back to their communities. It is with great pride I share that in FY24, our employees volunteered over 19,000 hours. Further, since 2006, we have donated 2.27 million pairs of shoes to charitable organizations supporting those in need.

Thank you for joining our journey, celebrating our progress, and for welcoming me with open arms. It is my sincere hope that the work Deckers is doing to advance ESG will continue to inspire others, foster positive change, and contribute to a better world, while driving our business for the future.

Sincerely,

STEFANO CAROTI, PRESIDENT AND CHIEF EXECUTIVE OFFICER**

DECKERS BRANDS

WELCOME

FY24 ACHIEVEMENTS

OUR FOUNDATION

PEOPLE

ENVIRONMENT

HUMAN RIGHTS

CHEMISTRY & CONSUMER SAFETY

CONCLUSION

ADDITIONAL INFO

DISCLOSURES

"As I reflect on the past 11 years, I am filled with gratitude and admiration for the incredible journey we have shared together. It has been one of the greatest pleasures of my life to serve as Deckers' CEO and witness the remarkable progress we have made toward sustainability and social responsibility. As I pass the baton to Stefano, and transition to my new seat on the board, I look forward to witnessing the incredible strides Deckers will undoubtedly continue to make under Stefano's leadership."

DAVE POWERS, BOARD MEMBER

DECKERS BRANDS

WELCOME

FY24 ACHIEVEMENTS

OUR FOUNDATION

PEOPLE

ENVIRONMENT

HUMAN RIGHTS

CHEMISTRY & CONSUMER SAFETY

CONCLUSION

ADDITIONAL INFO

DISCLOSURES

INTRODUCTION

As a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories, our worldwide reach and impact are significant. We believe consumers are increasingly buying from brands that deliver quality products while striving for minimal environmental impact by employing sustainable business practices.

Our sustainability policies and strategies are designed to support our long-term objectives while managing risk and are informed by our ongoing efforts with multi-stakeholder initiatives, which involve our stockholders, employees, suppliers, and customers, as well as other brands and non-governmental organizations.

Through our holistic environmental, social and governance ('ESG') program, which has been in existence since 2010, we are committed to advancing our sustainable business initiatives. As a result of our collective efforts, in recent years we have been recognized as one of Barron's 100 Most Sustainable Companies (2024), by Investor's Business Daily as one of the Best ESG Companies (2022, 2023 & 2024), by Newsweek as one of America's Most Responsible Companies (2020, 2021, 2022, 2023 & 2024) and one of America's Greenest Companies (2023 & 2024), by JUST Capital / CNBC as one of the Top 5 Companies for Parents (2024), by Time Magazine as one of the Most Sustainable Companies (2024) and as one of the 100 Most Influential Companies (2023), and by U.S News & World Report as one of the Best Companies to Work For (2024).

We recognize that sustainability is a journey and one that will likely never conclude.

Our hope is that this Creating Change Report will show you how we can continue to serve our communities, maintain an ethical supply chain, and reduce our environmental footprint.

2022, 2023, & 2024

2020, 2021, 2022, 2023, & 2024

2023 & 2024

2024

"One of the

"One of America's

"One of

"One of the best

Best ESG

Most Responsible

America's Greenest

Companies to

Companies"

Work For"

2024

"Top 5

"100 Most

"TIME'S World's

Companies for

Sustainable

Most Sustainable

Parents"

Companies"

Companies "

DECKERS BRANDS

WELCOME

FY24 ACHIEVEMENTS

OUR FOUNDATION

PEOPLE

ENVIRONMENT

HUMAN RIGHTS

CHEMISTRY & CONSUMER SAFETY

CONCLUSION

ADDITIONAL INFO

DISCLOSURES

CREATING CHANGE:

STRATEGIC APPROACH

OUR STRATEGIC APPROACH

We looked at our business holistically and identified areas (e.g. materials, waste, water, climate & clean energy, chemistry, human rights, and gender equality, quality education, and reduced inequalities) where we can make the biggest impact. Then, looking at the areas we identified, we defined our goals under each to better track our progress - these are our Sustainable Development Goals (SDGs) and they are the guardrails of our program. Finally, in order to prioritize our efforts we identified specific areas for improvement, including relevant targets under each SDG. We recognize that as our business continues to evolve we must remain agile. As such, we are continually modifying our strategies, adding to our targets, reallocating our resources, and challenging ourselves to make an even greater impact in keeping with our key value of 'Do Good and Do Great'.

UNITED NATIONS GLOBAL COMPACT AND DECKERS' SUSTAINABLE DEVELOPMENT GOALS

Deckers has been a member of the world's largest corporate sustainability initiative, the United Nations Global Compact (UNGC), since 2016. The UNGC principles guide companies to action-oriented efforts to support SDG implementation.

TOPIC

DECKERS SDG

UNGC SDG

Materials

Maximize the amount of preferred

materials in our products

Sustainably reduce waste generated at

Waste

our facilities and partner facilities through

refuse, reduction, recycling, and reuse

Reduce water consumption and improve

Water

water quality throughout our operations

and the communities in which we operate

Climate and Clean

Reduce energy consumption and carbon

Energy

emissions throughout our operations

Chemistry and

Reduce or eliminate hazardous chemicals

Consumer Safety

throughout our operations

Positively impact the communities in which

Human Rights

we operate, including assuring industry-

leading human rights practices within our

supply chain

Gender Equality,

Quality Education

Promote diversity, gender equality, female

and Reduced

empowerment, and inclusion for all

Inequalities

DECKERS BRANDS

WELCOME

FY24 ACHIEVEMENTS

OUR FOUNDATION

PEOPLE

ENVIRONMENT

HUMAN RIGHTS

CHEMISTRY & CONSUMER SAFETY

CONCLUSION

ADDITIONAL INFO

DISCLOSURES

Disclaimer

Deckers Outdoor Corporation published this content on November 13, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 13, 2024 at 18:50:03.137.