Business
Levi Strauss : 2025 Sustainability Goals & Metrics Report
Levi Strauss : 2025 Sustainability Goals & Metrics
About this update from Levi Strauss & Co
Sustainability Goals and Metrics LEVI STRAUSS & CO. For the Fiscal Year Ended November 30, 2025 Date of Publication: July 22, 2026 TABLE OF CONTENTS Page Number SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS.............................................. 3 Purpose of this document .............................................................................................................. 3 PART I ......................................................................................................................................................... 3 OUR BUSINESS .................................................................................................................................... 3 Description of Business ................................................................................................................. 3 Governance.................................................................................................................................... 4 Management ................................................................................................................................. 5 Risk Management .......................................................................................................................... 5 Remuneration................................................................................................................................. 8 OUR GOALS ......................................................................................................................................... 8 Our Sustainability Goals for 2025 and Beyond ............................................................................ 9 Goal-Setting Approach .................................................................................................................. 10 PART II........................................................................................................................................................ 10 MANAGEMENT'S DISCUSSION OF SELECTED ENVIRONMENTAL AND SOCIAL 10 METRICS ............................................................................................................................................... Climate........................................................................................................................................... 10 Consumption.................................................................................................................................. 17 Community .................................................................................................................................... 21 Other Metrics ................................................................................................................................. 24 Additional Scope 3 Metrics ...................................................................................................... 24 Updates on Our LS&Co. Chemical Playbook .......................................................................... 25 PART III ...................................................................................................................................................... 27 SUPPLEMENTAL DISCLOSURES .................................................................................................... 27 Industry-specific Disclosures ......................................................................................................... 27 NOTES ......................................................................................................................................................... 29 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Sustainability Goals & Metrics Report ("Sustainability Report") and related website content contain forward-looking statements, including statements related to our sustainability strategies, initiatives and targets. We base these forward-looking statements on our current assumptions, expectations and projections. These forward-looking statements are estimates and involve a number of risks and uncertainties that could cause actual results to differ materially. The materiality and risk disclosures contained in this document are intended solely for sustainability reporting purposes and should not be interpreted as equivalent to, or a substitute for, those presented in the Company's Annual Report on Form 10-K or other regulatory filings. These forward-looking statements are estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which may be beyond our control. Additional risks, uncertainties and information regarding our governance can be found in our Annual Report on Form 10-K and our proxy statements filed with the Securities and Exchange Commission ("SEC"). Other unknown or unpredictable factors also could have material effects on our future results, performance or achievements. All information in this Sustainability Report and related website content is as of the date originally presented and we disclaim any obligation to update this information. As used herein, Levi Strauss, LS&Co., Levi, Levi's, the Company, we, us, our and similar terms include Levi Strauss & Co. and its subsidiaries, unless the context indicates otherwise. Purpose of this document The purpose of this document is to provide transparency into our sustainability goals, selected metrics and related methodologies. This document should be read in conjunction with other disclosures regarding our sustainability programs, which are available on our website, in our climate transition plan and in other voluntary reporting. This document and the related website content are unaudited and have not been subject to third-party assurance, with exception of our scope 1, scope 2 and scope 3 category 3 emissions (refer to the third-party verification statement for further details). This Sustainability Report has been prepared with reference to the recommendations of the 2017 Task Force on Climate-related Financial Disclosures (TCFD), a framework for disclosing climate-related governance, strategy, risk management, and metrics and targets. The Sustainability Report is prepared on a parent-level consolidated basis and includes the "covered entity" subsidiaries within the LS&Co. consolidated group. The Company's disclosures are intended to be interoperable with emerging global sustainability standards. Where relevant, the Sustainability Report also reflects elements of evolving sustainability disclosure standards that build upon, or are informed by, TCFD, including the International Sustainability Standards Board's (ISSB) climate-related disclosure standard (IFRS S2). TCFD remains the primary organizing structure for the climate-related content presented herein. Certain information in this Sustainability Report is based on internal processes and assumptions, including estimates and judgments, and may be subject to change as data quality and methodologies evolve. Certain climate related information in this Sustainability Report is provided for transparency purposes and is not necessarily material for purposes of the federal securities laws. Readers should consider this Sustainability Report together with the Company's other disclosures, including its financial statements and related notes and its filings with the SEC. The information contained herein is not incorporated by reference into, and does not constitute a part of our SEC filings. PART I OUR BUSINESS Description of Business From our California Gold Rush beginnings, we have grown into one of the world's largest brand-name apparel companies. A history of responsible business practices, rooted in our core values, has helped us build our brands and engender consumer trust around the world. Under our Levi's®, Dockers® , Levi Strauss Signature™, Denizen® and Beyond Yoga® brands, we design, market and sell - directly or through third parties and licensees - products that include jeans, casual and dress pants, activewear, tops, shorts, skirts, dresses, jackets and related accessories for men, women and children around the world. In the first quarter of 2024 we announced the strategic decision to discontinue the Denizen® brand. The wind down of the Denizen® brand operations was substantially complete as of March 2, 2025. In the second quarter of 2025 we entered into a definitive agreement to sell our Dockers® business. On July 31, 2025 the Company sold the Dockers® intellectual property and operations in the U.S. and Canada. The sale of the remaining Dockers® operations was finalized during the first quarter of 2026. See Subsequent Events for additional information. Our products are sold in approximately 120 countries. In fiscal year 2025, we sourced products from independent contract manufacturers located in approximately 32 countries around the world, with no more than 30% sourced from any single country, in line with our sourcing strategy. We sourced products in North and South Asia, the Americas (including the United States), Europe and Africa. To advance our progress on sustainability initiatives and ensure we meet stakeholder expectations for these commitments and performance, we hold ourselves accountable to a holistic strategy. The intent of our sustainability strategy is to be a leader in transparency and impact, to accelerate the circular economy ecosystem, and to inspire employees, communities and value chain partners to join our journey toward an inclusive and regenerative industry in which all people are treated with dignity and respect. Our holistic sustainability strategy demonstrates our commitment to both a comprehensive definition of sustainability and to progress across our key sustainability pillars of climate, consumption and community. Our strategy provides a framework for us to continue embedding our sustainability ambitions within our broader business operations to create greater resilience and address the most pressing challenges of our time. Our website - https://www.levistrauss.com - contains additional and detailed information about our history, our products and our commitments. Financial news and reports and related information about our company can be found at http://investors.levistrauss.com . Our primary corporate office is located at Levi's Plaza, 1155 Battery Street, San Francisco, California 94111, and our main telephone number is (415) 501-6000. Governance Our board of directors' committees, including the Nominating, Governance & Corporate Citizenship Committee; the Audit Committee; and the Compensation & Human Capital Committee are responsible for overseeing ESG matters: The Nominating, Governance & Corporate Citizenship Committee assists our Board of Directors with oversight and review of corporate citizenship and sustainability matters which may have a significant impact on us. The Audit Committee assists our Board of Directors in overseeing the integrity of our financial statements and disclosures including those related to environment; health and safety; corporate citizenship; public policy and community involvement; accounting and financial reporting processes; systems of internal control over financial reporting; and compliance with legal and regulatory requirements. It also evaluates risk and policies for risk management and assessment The Compensation & Human Capital Committee supports the Board in overseeing compensation, benefits, human resources programs, and the performance and composition of senior management. LS&Co.'s Corporate Governance Guidelines provide that our directors' duties and responsibilities include "shaping effective corporate governance and overseeing matters related to issues such as environment, health and safety, corporate citizenship, public policy and community involvement ('ESG') (including climate change and environmental sustainability policies, programs, goals and progress), as well as targets, standards and other metrics used to measure and track ESG performance and progress." Management Our management addresses climate-related matters primarily through: the Enterprise Risk Management Committee, which is responsible for identifying and mitigating enterprise-level risks, and the sustainability team, which supports the identification and management of climate-related risks and the development of related strategies. While these groups do not maintain formal reporting lines to the Board of Directors, they provide regular updates and communicate relevant developments directly to the Board. Our Enterprise Risk Management Committee ("ERC") and risk management process enable LS&Co. to identify and manage risks entity-wide, improve resource deployment and enhance our enterprise resilience. Refer to the Enterprise Risk Management Committee section for additional information regarding our risk process. The findings are reviewed with the Executive Leadership Team ("ELT"), and the top identified risk themes, which may include climate-related matters, are reported to the Audit Committee at least annually. The sustainability team is responsible for our climate-related risks and strategy, fostering partnerships for decarbonization and integration of climate considerations into strategic business plans. The team supports direct supplier engagement and monitors our sustainability goals. The Chief Sustainability Officer and Chief Supply Chain Officer report to the Nominating, Governance & Corporate Citizenship Committee at least quarterly on climate and sustainability matters, including updates on climate-related goals, risks, and progress. To support alignment between the Company's policy activities and its business strategies, LS&Co. holds regular leadership meetings focused on enterprise-wide policy matters. These meetings include the President and CEO ("CEO"), EVP Chief Financial and Growth Officer ("CFGO"), General Counsel, Chief Supply Chain Officer ("CSCO"), Chief Human Resource Officer ("CHRO") and SVP Corporate Affairs and serve as a standing forum to review and coordinate Company policies. Sustainability topics are addressed as needed; they are discussed on an ad hoc basis when relevant to ongoing sustainability-related activities or policy developments. This structure enables executive leadership to confirm that policy activities support all aspects of the corporate strategy in a dynamic policy environment. Risk Management The process to determine which risks could have a substantive financial or strategic impact on the Company is informed by our ERC. The ERC meets every other month (at a minimum, quarterly) and consists of senior management including our SVP Global Controller, Chief Compliance Officer, Chief Information Security Officer and Chief Sustainability Officer, as well as senior leaders from supply chain, security, audit and compliance. The ERC leads also provide updates to the Executive Leadership team quarterly. In 2025, we adjusted the ERC's cadence and participation and increased the frequency of updates to executive leadership. Risk Identification Process - Enterprise Risk Management Committee The ERC conducts an annual survey of LS&Co.'s top leaders to identify and characterize short-, medium-and long-term 1 risks. Each risk is evaluated for its potential impact and likelihood and assigned a score accordingly. These risk scores help LS&Co. determine the relative significance of each risk. The risk assessment process is designed to integrate ESG-related considerations by aligning risk identification, assessment and governance practices with the COSO internal control framework, relevant ESG rating and benchmarking frameworks such as MSCI and applicable ESG-related legal and regulatory disclosure requirements. The ERC identifies ongoing work to mitigate and prevent, to the extent possible, a risk from having a significant impact on the business. This includes scenario planning, risk forecasting and testing crisis and business continuity plans. The top risk themes identified through the ERC process do not represent all risks associated with our business. Other risks, including those not presently identified or those deemed to be less impactful at present, may 1 In 2025, throughout LS&Co.'s ERC survey and within CDP reports, we define short-term, medium-term, and longterm horizons as 0-3 years, 3-7 years, and 7-12 years, respectively. also have a potential adverse effect on our business. In 2024 and 2025, respectively, climate change was among the top risks identified. Climate-related Risk and Opportunity Identification Process In 2022, we engaged a third-party climate consultant to conduct a TCFD-aligned climate risk assessment ("CRA") using climate scenario analysis ("CSA"). This CRA was designed to identify and assess potential climate-related risks and opportunities relevant to LS&Co. and consider their evolution over time under future climate scenarios. The analysis focused on the implications for LS&Co.'s business, supply chain and key markets and helped inform our first-ever climate transition plan. Through the CRA, 25 risks and opportunities were identified and prioritized for hotspot scenario analysis. For purposes of scenario analysis, a hotspot refers to a geographic region or operational area identified as having elevated exposure to climate-related risks or opportunities. These areas are determined based on a combination of factors, including: (i) volume of product sourced or processed in the region; (ii) projected magnitude of climate-related hazards; (iii) potential for material impact on the Company's operations, costs, or reputation; and (iv) contribution to scope 1 and scope 2 greenhouse gas emissions. The CSA considered two climate change scenario pathways: high physical impact (4°C) scenario and a rapid transition (<1.5°C) scenario across 2030- and 2050-time horizons. The International Energy Agency ("IEA") Net Zero 2050 was selected as the most well-known and widely used transition scenario 2 and includes policy implementation aligned with the Paris Agreement and projected warming of ~1.5°C by end of the century. The transition scenarios were performed across selected geographies and included assessment across the value chain including raw material production, manufacturing and our own operations. The analysis included all of our brands excluding Beyond Yoga®. Climate-related Risks & Opportunities Identified Consistent with the recommendations of the TCFD, LS&Co. classifies climate-related risks into standardized categories: (i) transition risks, which arise from the evolving regulatory, market, technological and reputational landscape associated with the shift to a lower-carbon economy; and (ii) physical risks, which include both acute risks (e.g., extreme weather events such as floods or wildfires) and chronic risks (e.g., long-term shifts in climate patterns such as rising temperatures or sea levels). The identification of a risk within these categories does not necessarily indicate that the risk is material to LS&Co. It reflects the Company's process to identify and evaluate a range of potential climate-related impacts as part of our long-term sustainability strategy. The following categories 3 represent the key themes of the 25 risks and opportunities identified in our 2022 CRA and issue prioritization assessment. Physical risks Raw Material Supply: Drought, heavy rainfall, heat extremes and other climate impacts present risk to the supply of the primary raw material used in our products, cotton. Cotton farming communities and ecosystem stability are also at risk. Category: Chronic, Acute; Value Chain Stage: Raw Materials 2 The rapid transition model was built on a range of external datasets from International Energy Agency (IEA), NASAs NEX- GDDP, Global Climate Models (GCM) and Coupled Model Intercomparison Project (CMIP5), regional and national and sector specific scenarios, projections and strategies, industry outlooks, scientific papers, and country level scenario studies. 3 Categories are classified using the TCFD risk categories of Physical (Acute and Chronic) and Transitional (Policy and Legal, Market, and Reputation) as the classification categories for existing risks. Manufacturing Disruption: Flood, tropical cyclones, water shortages and extreme heat may damage or disrupt key manufacturing facilities, equipment and shipping lanes, as well as impact people and the communities where we operate. Category: Acute; Value Chain Stage: Manufacturing Transition risks External Perception: Consumer and non-governmental organization ("NGO") perception is increasingly driven by a brand's climate action and progress towards meeting commitments. NGOs are playing an ever-increasing role in raising awareness and advocating for positive change with consumers and government authorities. Lack of climate action risks loss of brand value and, ultimately, sales. Category: Reputation, Market; Value Chain Stage: Cross-Cutting Cost Volatility: Price of energy and raw materials, as well as legislated carbon pricing risk increasing material, manufacturing, logistics and other operating costs. Category: Policy & Legal; Value Chain Stage: Own Operations Consumer Demand Shifts: Regulatory and market pressure to increase product circularity is likely to require shifts in material composition, traceability and circular services, with implications for product design, sourcing and retail. Category: Policy & Legal; Market; Value Chain Stage: Production & Consumer Transition opportunities Innovation: Changing consumer preferences and a desire to purchase from value aligned brands creates opportunity for differentiation. Changing product development and manufacturing processes create opportunity to design in new efficiencies, as well as preferred 4 fiber or material sources. Differentiation opportunities also exist in the provision and expansion of product take-back, repair and recommerce models. Category: Markets, Products & Services; Value Chain Stage: Production & Consumer Efficiency: Reducing energy use, increasing energy efficiency and shifting to owned and purchased renewable energy sources has the power to reduce our ongoing operating costs and emissions. Category: Energy Source, Resource Efficiency; Value Chain Stage: Own Operations Addressing, Mitigating and Responding to Climate Risks In response to significant risks to our business, management may establish a task force to assess and respond to those risks. Our sustainability team supports the identification and management of climate-related risks and the execution of related goals and initiatives. This includes setting sustainability ambitions, monitoring progress and ensuring accountability. Our proactive approach supports resilience and adaptability in the face of climate-related challenges and aligns with our long-term sustainability objectives. Climate-related matters are evaluated by our sustainability team, supply chain functions and other stakeholders as appropriate to assess potential financial or strategic impacts over short-, medium- and long-term periods. This review considers climate-related impacts on brand reputation, operations, supply availability and cost, consumer awareness and regulatory activity. Findings from these evaluations are reviewed with the Executive Leadership Team at least annually and, as appropriate, are communicated to the Nominating, Governance & Corporate Citizenship Committee. 4 "Preferred" is recognized by the Textile Exchange, which defines a preferred fiber or material as "one which results in improved environment and/or social sustainability outcomes and impacts in comparison to conventional production." Climate Transition Plan In October 2024, LS&Co. published its inaugural climate transition plan ("CTAP"), developed with reference to the recommendations of the TCFD and the disclosure framework of CDP (formerly the Carbon Disclosure Project). The CTAP outlines LS&Co.'s net-zero goal aimed at limiting global warming to a 1.5°C increase in accordance with the Paris Agreement. It includes climate targets and a detailed roadmap for achieving these climate ambitions. The CTAP explains LS&Co.'s three-pronged approach to meeting our climate ambitions and responding to the identified risks and opportunities: improve our operations, work with our value chain and leverage governance and planning. LS&Co. expects to update the CTAP at least every three years to support alignment with prevailing and internationally accepted frameworks and to maintain focus on climate risks and opportunities. Refer to our Climate Transition Plan for additional information. Remuneration Members of our ELT including our CEO, CFGO, CSCO and General Counsel are ultimately responsible for the effective management of sustainability matters. Together these roles are responsible for the prioritization of resources to deliver on climate-related projects. Members of LS&Co.'s ELT approve climate goals, key metrics and this Sustainability Report. Depending on the nature of the executive's role, ESG-related key performance indicators may be included in their individual performance objectives and evaluation. The primary responsibility for sustainability in the organization sits with our Chief Sustainability Officer and ultimately the CSCO. The Chief Sustainability Officer manages climate-related risks across the organization and value chain, reporting to the CSCO who is responsible for assessing and managing climate-related risks and opportunities. Compensation of the global sustainability team is tied to the progress of our sustainability goals. Achieving our absolute operational and supply chain greenhouse gas emissions reductions goals, and a renewable electricity procurement goal (as a percentage of absolute operational electricity use), are built into their annual individual performance objectives. OUR GOALS We introduced our slate of people- and planet-first goals in our fiscal year 2021 Sustainability Report, which was published in September 2022. The goals include targets tied to various areas across our sustainability strategy and collectively reflect LS&Co.'s guiding philosophy of profits through principles. Since then, we continue to report annually on the status of these goals. Our sustainability goals are designed to drive measurable environmental and social outcomes in areas of our value chain where impacts are most significant and where we have the greatest ability to influence performance. As a result, the scope of certain goals is intentionally focused and may not encompass all products, brands, or business models within our broader portfolio. This reflects management's assessment of where interventions are most actionable, where consistent and reliable data is available, and where progress can be measured with comparability over time. As such, it results in the exclusion of certain product categories, supplier types, and business models. Exclusions are clearly noted within the report sections. Among our goals, there is variation in their level of maturity. Our greenhouse gas (GHG) reduction goals are the most established, with reporting over several years and approval from the Science Based Target initiative (SBTi). Some of our other goals were established more recently, and we are continually striving to drive progress and enhance our reporting capabilities. For some of our newer goals, we are still in the process of establishing the comprehensive baselines, key performance indicators, and data systems necessary to report on our progress and impact. Where we are still working on quantitative data to report, we continue to measure our progress and impact using qualitative measures. We intend to continue to provide the best available information while improving data quality, estimates and methodologies over time. Our Sustainability Goals This year's reporting reflects an evolution in the structure of our sustainability disclosures as we transition from concluding a cycle of targets into developing the next phase of our long-term strategy. With many of our 2025 commitments reaching their designated end dates, we have introduced a classification of these items as "Concluded Goals," providing clear closure for this goal period. Further information regarding the Company's performance against concluded goals is provided in Part II of this report. In parallel, we have established a set of forward-looking "New Goals" that advance our sustainability strategy and reinforce our guiding philosophy of achieving profits through principles, and that illustrate our commitment to bettering the world we all share. These classifications, listed below, are presented alongside our continuing goals, for which progress updates are provided in the sections that follow. Climate Net-zero emissions of greenhouse gases by no later than 2050 42% absolute reduction in supply chain greenhouse gas (GHG) emissions from purchased goods and services by 2030 Concluded Goal: 90% absolute reduction in GHG emissions and 100% renewable electricity in all company-operated facilities by 2025 New Goal: 42% reduction in scope 1 GHG emissions by 2030 New Goal: 91% reduction in scope 2 GHG emissions by 2030 New Goal: 100% renewable electricity in all company-operated facilities through 2030 Concluded Goal: Reduce freshwater use in manufacturing by 50% in areas of high-water stress by 2025 New Goal: 15% absolute reduction in water use across LS&Co. Tier 1 and Tier 2 manufacturing by 2030. New Goal: 40% recycled and reused water across LS&Co. Tier 1 and Tier 2 manufacturing by 2030 New Goal: 100% of direct discharge facilities achieve Zero Discharge of Hazardous Chemicals (ZDHC) wastewater 'Foundational' level and 25% achieve 'Progressive' level by 2030 New Goal: Invest in three projects that contribute to safe access to water, sanitation and hygiene (WASH) in priority sourcing geographies by 2030. Prevent and reduce our impact on biodiversity within our supply chain; support ecosystem protection and restoration programs beyond our supply shed Consumption By 2026, develop a comprehensive plan to make the company circular ready Concluded Goal: Key markets to introduce or increase resale and upcycling initiatives to extend the life of our products by 2025 Zero waste to landfill from company-operated facilities and 50% waste diversion across strategic suppliers by 2030 Eliminate single-use plastics in consumer-facing packaging by shifting to 100% reusable, recyclable or home compostable plastics by 2030 Strategic garment wet finishing manufacturing and fabric mills use 100% certified Screened Chemistry by 2026 Use only third-party preferred or certified more sustainable primary materials by 2030 Community Continually improve apparel worker health, satisfaction and engagement Ensure competitiveness and fairness in total rewards Ensure that LS&Co. remains a dynamic and inclusive career destination Leverage the leadership of the Levi Strauss Foundation and invest in our communities to advance pioneering social change Drive societal impact in communities where LS&Co. operates through advocacy, grantmaking, employee giving and volunteerism Please refer to the respective goal sections below for additional footnotes and details regarding the scope and other pertinent information related to the goals outlined herein. Goals are presented as targets intended to be achieved by the end of the specified year, where applicable. Goal-Setting Approach LS&Co. maintains an internal Sustainability Goal and Target Governance Policy to set, review and monitor progress against each target. Under this policy, proposed modifications to publicly-disclosed sustainability goals, or the introduction of new targets, must undergo a multi-level approval process. Functional teams, in coordination with the sustainability team, complete documentation describing the rationale, scope and parameters of the proposed change or target. This documentation is subject to review by the internal Task Force and the Sustainability Steering Committee and is subsequently submitted to select members of the ELT for approval. PART II MANAGEMENT'S DISCUSSION OF SELECTED ENVIRONMENTAL AND SOCIAL METRICS Climate In fiscal year 2025, our progress toward our selected climate goals was as follows: Goal: Net-zero emissions of greenhouse gases by no later than 2050 Levi Strauss & Co. commits to reach net-zero greenhouse gas emissions across the value chain by 2050. To achieve our Net-Zero science-based target (SBT), LS&Co. will cut 90% of our absolute scopes 1, 2 and 3 GHG emissions by 2050 from a 2022 base year. Upon achievement of 90% absolute reduction, LS&Co. intends to neutralize residual emissions in a matter consistent with SBTi criteria. Progress against our long-term net-zero goal is dependent on the progress of our near-term scope 1, scope 2 and scope 3 goals, as further detailed below. The progress of these near-term goals are provided in their respective sections. Our net-zero goal includes scope 1, scope 2, and categories 1 (tops and bottoms only), 4, 5, 6, 9 and 12 of scope 3, collectively representing over 90% of our total in boundary 2022 baseline emissions. To date, our net zero target emissions total 2,227 thousand tCO 2 e. For 2025 our market-based emissions breakdown toward our net-zero target was as follows: 2024 2025 tCO 2 e % of total tCO 2 e % of total in thousands in thousands Scope 1 emissions 9 0.4 % 8 0.4 % Scope 2 emissions 0 - % 0 - % Scope 3 emissions 2,228 1 99.6 % 2,219 99.6 % Total emissions 2,237 100.0 % 2,227 100.0 % (1) Prior period scope 3 emissions have been recast to reflect updated calculation methodologies. See accompanying narrative in Other Metrics section for details. LS&Co. applies the operational control approach to its GHG emissions inventory, whereby the Company accounts for 100% of emissions from operations over which it has direct operational control. The GHG inventory and corresponding baseline were developed using this boundary, encompassing scope 1, scope 2 and applicable scope 3 emissions associated with LS&Co. and its consolidated subsidiaries. For additional detail on scope 3 emissions, including category-level disclosures, refer to the Other Metrics section. For fiscal year 2025, LS&Co. completed third-party verification of emissions associated with fuel- and energy-related activities across scope 1, scope 2 and scope 3 category 3. Goal: 42% absolute reduction in supply chain greenhouse gas (GHG) emissions from purchased goods and services by 2030 Our supply chain GHG emissions goal is measured against a 2022 base year. The goal pertains specifically to our scope 3, category 1 (purchased goods and services) apparel production emissions related to tops and bottoms as it represents the majority, or 72%, of LS&Co.'s total scope 3 baseline emissions. Scope 3, category 1 emissions from indirect spend, footwear and accessories production are excluded from our near-term and long-term scope 3 goal boundaries. We reduced supply chain GHG emissions by 10% from the base year: Year ended Cumulative % increase (decrease) from base year (8)% (10)% 2022 base 2024 2025 2030 target Metric tonnes CO 2 e 1,944,947 1,762,764 1 1,752,123 1,128,069 Scope 3, category 1 (tops and bottoms): (1) Prior period scope 3 emissions have been recast to reflect updated calculation methodologies. See accompanying narrative in Other Metrics section for details. Concluded Goal: 90% absolute reduction in GHG emissions and 100% renewable electricity in all company-operated facilities by 2025 The Company's existing scope 1 and 2 GHG emissions and electricity goal reached the end of its stated commitment period in fiscal year 2025. Accordingly, the section below reflects the Company's final progress against this goal through its expiration. As of 2025, the Company made steady progress, and achieved an 84% reduction in scope 1 and scope 2 emissions, against a 2016 baseline. Due to changes and growth in our company footprint not accounted for when the goal was first set, our final progress fell short of our 90% absolute reduction in emissions target. However, we met our goal of 100% renewable electricity use in company-operated facilities-progress we can be proud of. 2016 Year ended 2025 base 2024 2025 target Market-based scope 1 and scope 2: Metric tonnes CO 2 e - net of certificates 1 49,947 9,685 7,986 4,995 Cumulative % increase (decrease) from base year (81)% (84)% (1) In 2024 and 2025, LS&Co. purchased renewable thermal certificates for natural gas usage in the USA. The Company estimates 96 metric tonnes of CO 2 e from the purchases are classified as biogenic emissions. The gross, or exclusion of these biomethane purchases would result in an estimated 98 metric tonnes more of CO 2 e emissions and does not change progress. Percent renewable electricity in company- operated facilities 99 % 100 % 100% Year ended 2024 2025 2025 target As part of the Company's ongoing sustainability strategy, the Company established three new goals-two related to our owned and operated GHG emissions, and one focused on renewable electricity-with a target end date of fiscal year 2030 and a baseline year of 2022. Details and progress against these new goals are presented in the sections that follow. Building on our progress to date, the Company has adopted two new SBTi-validated 2030 owned and operated GHG emissions goals, which will succeed our previous 2025 goal upon its expiration-a 42% reduction in scope 1 GHG emissions by 2030 and a 91% reduction in scope 2 GHG emissions by 2030. The new 2030 goals are intended to further the Company's long-term climate strategy and reflect an evolution in both scope and disclosure practices. A key enhancement under the 2030 goals is the separation of targets and performance metrics for scope 1 emissions, which primarily relate to direct emissions from owned or controlled sources, and scope 2 emissions, which primarily relate to indirect emissions from the generation of purchased electricity. Management believes that disaggregating scope 1 and scope 2 objectives provides greater transparency into the underlying drivers of emissions performance and enables more precise accountability for reduction initiatives. Aligned with global climate efforts and the SBTi, the Company's emissions reduction targets are grounded in a science-based methodology and informed by the SBTi target-setting tool, which applies standardized input and output calculations to determine emissions reduction pathways consistent with climate science. Using a 2022 baseline, the Company's 2030 targets reflect the level of emissions reduction calculated in accordance with applicable SBTi criteria, which indicates that a reduction of approximately 42% and 91% is required to remain consistent with a science-based pathway, and is consistent with limiting temperature rise of 1.5°C compared to pre-industrial levels. Similar to our 2025 goals, the owned and operated GHG emissions goals cover company-operated facilities including LS&Co. leased locations globally-manufacturing, distribution, offices and mainline and outlet retail stores. New Goal: 42% reduction in scope 1 GHG emissions by 2030 LS&Co. commits to further reduce absolute scope 1 GHG emissions 42% by 2030 measured against a 2022 base year. As part of the progress from our former 2025 owned and operated goal, we reduced scope 1 GHG emissions associated with all company-operated facilities by 19% from the base year: Year ended 2022 base 2025 2030 target "Market-based" Scope 1: Metric tonnes CO 2 e - net of certificates 1 9,884 7,970 5,733 Cumulative % increase (decrease) from (19)% base year (1) LS&Co. purchased renewable thermal certificates for natural gas usage in the USA. The Company estimates 96 metric tonnes of CO 2 e from the purchases are classified as biogenic emissions. There were minor rounding differences in the current year which resulted in a nominal variance in the calculated percentage reduction from the 2022 base year. The gross, or exclusion of these biomethane purchases would result in an estimated 98 metric tonnes more of CO 2 e emissions and a revised reduction progress of a 18% decrease as compared to 2022 base year. This variance does not reflect a substantive change in emissions performance or progress toward the Company's emissions reduction targets. New Goal: 91% reduction in scope 2 GHG emissions by 2030 Similar to our 2025 goals, in calculating our scope 2 emissions data, our impact is quantified using both location- and market-based methods and includes CO 2 e deduction from purchased renewable energy certificates (REC/EAC/GO). The location-based method of allocation considers the GHG emissions based on the average energy generation emission factors of the regional grid, whereas a market-based allocation accounts for emissions based on the specific energy sources that a company contracts for, such as Energy Attribute Certificates (EACs). Our scope 2 location-based emissions were 44,490 and 36,908 tCO 2 e for 2024 and 2025, respectively. The tracking of our SBTi progress through the procurement of renewable electricity and other forms of low-carbon power is calculated using the market-based method as it provides an opportunity to account for individual corporate procurement actions. Energy data is collected from monthly utility bills, and therefore, does not align with LS&Co. fiscal year dates. As such, we have used month-end data to most closely align with our fiscal year. Emissions and energy data is from December 1, 2024 through November 30, 2025. LS&Co. commits to further reduce absolute scope 2 GHG emissions by 91% by 2030, measured against a 2022 base year. As part of the progress from our former 2025 owned and operated goal, we reduced scope 2 GHG emissions associated with all company-operated facilities by 99.7% from the base year, effectively achieving the 2030 target in advance. The Company intends to maintain these reductions over time, although absolute emissions may vary as the Company's owned and operated footprint grows. Year ended 2022 2030 Market-based Scope 2: base 2025 target Metric tonnes CO 2 e - net of certificates 4,789 16 431 Cumulative % increase (decrease) from base year (99.7)% New Goal: 100% renewable electricity in all company-operated facilities through 2030 As part of our refreshed 2030 environmental goals, we have reaffirmed our commitment and intend to maintain 100 percent renewable electricity across all company-operated facilities through 2030. Our progress toward this commitment for fiscal year 2025 is presented in the goal table above. We intend to continue to monitor and publicly report on our progress against this commitment through 2030. Similar to our 2025 goals, the 2030 goal refers to "renewable electricity" rather than "renewable energy". Electricity refers only to electricity purchased from the grid, and excludes other forms of energy, such as natural gas, diesel, and other fuels. Our renewable electricity sources include energy from LS&Co.'s on-site projects; RECs and EACs from LS&Co. locations; and electricity that we receive from renewable energy generation serving the electric grids where select LS&Co. offices, factories or retail stores are located. Electricity data is collected from monthly utility bills, and therefore, does not align with LS&Co. fiscal year dates. As such, we have used month-end data to most closely align with our fiscal year. Emissions and energy data is from December 1, 2024 through November 30, 2025. As of 2025, our renewable electricity consumption in company-operated facilities was approximately 103,204 megawatt hours (MWh), or 100% of the total electricity used in those facilities. Concluded Goal: Reduce freshwater use in manufacturing by 50% in areas of high-water stress by 2025 The Company's existing freshwater goal reached the end of its stated commitment period in fiscal year 2025. Accordingly, the section below reflects the Company's final progress against this goal through its expiration. As of the end of 2025, the Company concluded its 2025 water stewardship goal and achieved approximately 23% progress toward its targeted 50% reduction. The Company did not achieve the targeted 50% reduction, which was attributable to a combination of factors including the absence of a clearly defined implementation pathway, reliance on a limited set of interventions, and variability in sourcing patterns over the period. Certain initiatives contributed to improvements in water efficiency but did not achieve reductions at a scale sufficient to meet the targeted outcome. Our 2025 water goal is measured against a 2018 base year. The goal pertains only to our wet finishing key supplier manufacturing facilities in areas of high-water stress. Key suppliers refer to suppliers covering more than 80% of our global product units. Wet finishing is defined as any processing stage where textiles are treated with chemicals and water. High-water stressed geographies are defined by the World Resource Institute (WRI) aqueduct water risk atlas tool, and each year, the geographies included on this list are updated. The annual percentage reduction in freshwater usage is calculated relative to each supplier's respective 2018 baseline. For each reporting year, the comparison reflects the change in freshwater usage, in liters, at the subset of active key wet finishing facilities located in that year's high-water stress geographies, compared to those same facilities' 2018 freshwater usage. As a result, the 2018 baseline in liters varies annually to reflect the current year's applicable facilities and high-water stress locations. For the calendar year 2025, the estimated total freshwater used by key wet finishing suppliers in areas of high-water stress was approximately 28 billion liters, representing a 23% reduction from the relevant 2018 base year. Reduction in freshwater usage by key wet finishing suppliers operating in areas of high-water stress, by year, relative to their respective 2018 baselines were as follows: Year ended December 31 2025 2024 2025 target Wet finishing key supplier manufacturing facilities in areas of high-water stress freshwater usage: Percent increase (decrease) (27)% (23)% (50%) As part of the Company's ongoing sustainability strategy, the Company established new water goals with a target end date of fiscal year 2030 and a 2022 baseline year. Our new water strategy is designed to reduce our impact, strengthen our supply chain, and support the communities most vulnerable to water stress. Details and progress against this new goal is presented in the following section. In October 2025, the Company released a new water strategy that establishes updated priorities, ambitions, and targets through 2030, informed by learnings from the prior goal period and evolving business and environmental considerations. Additional information regarding the Company's updated water strategy is available at 2030 Water Strategy . Similar to our 2025 goal, water data is provided by suppliers, through Higg FEM, and is based on the calendar year. Therefore, water data does not align with LS&Co. fiscal year dates. We have used the annual data which most closely aligns with our fiscal year. New Goal: 15% absolute reduction in water use across LS&Co. Tier 1 and Tier 2 manufacturing by 2030. The Company established a water usage goal to reduce absolute freshwater use across our global manufacturing operations. Specifically, we have committed to achieving a 15% absolute reduction in freshwater use across LS&Co.'s Tier 1 and Tier 2 manufacturing operations by 2030, relative to a 2022 baseline. For purposes of this goal, water use refers to freshwater withdrawals, including surface water, groundwater and municipal water sources. The Company uses the term "use" rather than "consumption" to avoid technical interpretations associated with evaporative loss. Product scope is limited to denim bottoms and excludes tops and non-denim products. Unlike the prior 2025 goal, the Company does not distinguish between "key" and "non-key" vendors for purposes of this goal. The goal applies to Tier 1 and Tier 2 wet finishing manufacturing activities, primarily laundries, across global production, including local-for-local manufacturing. Tier 2 includes nominated fabric mills and vertically integrated suppliers that perform both Tier 1 and Tier 2 activities, such as laundry operations and fabric dyeing. In limited cases, certain mills also perform yarn spinning, which is considered a Tier 3 activity and is excluded. Cut-and-sew facilities, licensees, non-nominated full-package mills and cotton cultivation are excluded. As the Company established its water reduction goal during the fiscal year, initial progress began in 2025. The Company is in the process of finalizing its data collection methodology, calculation approach, and reporting systems to support consistency, completeness, accuracy and auditability. Accordingly, quantitative progress against this goal is expected to be disclosed beginning in 2026, once the measurement framework is fully operational. New Goal: 40% recycled and reused water across LS&Co. Tier 1 and Tier 2 manufacturing by 2030 We have established a new goal to increase the use of recycled and reused (R&R) water across our manufacturing operations. Specifically, we have committed to achieving 40% recycled and reused water across LS&Co.'s Tier 1 and Tier 2 manufacturing operations by 2030, measured as a share of total freshwater used in scope of our 15% reduction goal. These two water goals are directly tied; increasing R&R use is one of the most effective ways for suppliers to reduce freshwater use, and any increase in R&R water above the 2022 baseline supports progress toward both targets. For purposes of this goal, "recycled" and "reused" water are defined consistent with LS&Co.'s historical terminology, which has been in place since 2013 and is well-recognized by our stakeholders. "Recycled" water refers to treated wastewater that is subsequently used for production, while "reused" water may include untreated, but sufficiently clean, wastewater that is directly reused in manufacturing processes. While these terms are sometimes used interchangeably in external contexts, we maintain this distinction to reflect our established measurement approach and long-standing water reputation. As the Company established its R&R goal during the fiscal year, initial progress began in 2025. The Company is in the process of finalizing its data collection methodology, calculation approach, and reporting systems to support consistency, completeness, accuracy and auditability. Accordingly, quantitative progress against this goal is expected to be disclosed beginning in 2026, once the measurement framework is fully operational. New Goal: 100% of direct discharge facilities achieve Zero Discharge of Hazardous Chemicals (ZDHC) wastewater 'Foundational' level and 25% achieve 'Progressive' level by 2030 We have established a new goal to better improve wastewater quality through Zero Discharge of Hazardous Chemicals (ZDHC) wastewater testing performance. By 2030, we aim to have all our suppliers with direct discharge facilities achieve the Foundational level and 25% to go beyond that to achieve the Progressive level or above. Direct discharge is a process in which the wastewater treated and generated by a supplier through its owned and operated effluent treatment plant is discharged directly to the land, municipal sewers, or water bodies such as streams, lakes and oceans. Facilities that discharge their wastewater to off-site publicly owned treatment plants are out of scope. At LS&Co., direct discharge facilities include Levi's® and Levi Strauss Signature™ wet finishing Tier 1 (including disclosed subcontractor and Local for Local facilities that also are directly contracted with LS&Co. for global production), Tier 2 facilities (including disclosed nominated mills), as well as Zero Liquid Discharge ("ZLD") facilities (facilities in which no industrial wastewater is discharged from a supplier's site in liquid form to the environment). Excluded from this goal- Beyond Yoga, Licensees, non-disclosed mills, full package mills, cut and sew facilities and Local for Local facilities that only do local production. The ZDHC Foundational level refers to facility performance assessed against the ZDHC Wastewater Testing Standard for conventional parameters only, including regulated heavy metals. This definition is specific to wastewater performance and is distinct from the broader ZDHC Roadmap to Zero Program classification that also uses the term "Foundational." The ZDHC Progressive level represents the minimum set of requirements that must be met to demonstrate adherence to the fundamental principles of sustainable chemical management, as defined under the ZDHC framework. ZLD facilities have the most advanced wastewater treatment process and are therefore ranked above Progressive Level. As of 2025, 74% of in-scope facilities had achieved, at least, Foundational level, and 39% had achieved Progressive level and above: Year ended 2025 Foundational level and above 74 % Progressive level and above 39 % New Goal: Invest in three projects that contribute to safe access to water, sanitation and hygiene (WASH) in priority sourcing geographies by 2030. We have established a new goal to improve water, sanitation, and hygiene (WASH) by investing in collective action projects in priority sourcing geographies-top countries that produce the greatest LS&Co. volume. In 2025, we advanced progress toward this goal through our support of the Women + Water Collaborative in India, a WASH initiative focused on improving water access, sanitation, and climate resilience in water-stressed communities. The program has delivered core interventions across multiple districts, reaching more than 65,000 people with access to safe drinking water, and during the year initiated expansion into the Ganga Basin, where foundational implementation activities are underway. Goal: Prevent and reduce our impact on biodiversity within our supply chain; support ecosystem protection and restoration programs beyond our supply shed As a result of our 2022 CSA assessment 1 to identify material impacts and dependencies on nature across the value chain we set three targets to drive progress against our biodiversity goal: By the end of fiscal year 2030, invest in at least three projects in high-water-stressed basins 2 that support the reduction of freshwater withdrawal pressures and nutrient load pressures in our raw material supply chain. Concluded : Reach zero deforestation across high-risk materials 3 by the end of fiscal year 2025. Protect and restore 30% 4 of our raw material footprint in high biodiversity significant regions by the end of fiscal year 2030. The Company established the zero deforestation target to support preparedness for anticipated requirements under the European Union Deforestation Regulation ("EUDR"). Subsequent changes to the regulatory timeline have deferred the effective date of the regulation. As a result, the target is no longer applicable in its original form and has been concluded. Notwithstanding the conclusion of this target , the Company continues to advance the underlying 1 Beyond Yoga® data was not included in this assessment. 2 Locations of basins will be selected by water/drought risk locations and our LS&Co. baseline biodiversity assessment. The exact proximity requirements are yet to be determined. 3 High-risk raw materials are defined as natural rubber, bovine leather and man-made cellulosic fibers as defined by EU Deforestation Regulation requirements. Zero deforestation is defined as avoiding the change of forests and natural ecosystems for agricultural purposes, governed by a December 31, 2020 cut-off date (the point in time after which no conversion is permissible) - per the EU Deforestation Regulation. 4 30% of our fiscal year 2022 baseline is approximately 50,000 hectares. programs and workstreams necessary to achieve compliance and expects to meet all applicable legal and regulatory requirements as they become effective. The Company remains focused on readiness and implementation activities in alignment with the revised regulatory timeline. In 2025, the Company conducted research and assessment activities to identify potential biodiversity projects for future investment. While no formal commitments were made during the year, this work represented meaningful progress toward the Company's long-term biodiversity objectives. Given the long-term nature of the Company's biodiversity goal and targets, which extend through 2030, the Company continues to advance planning and development efforts and will report progress as commitments are made and initiatives are implemented. Consumption In fiscal year 2025, updates on our selected consumption goals were as follows: Goal: By 2026, develop a comprehensive plan to make the company circular ready Our circularity goal is to develop a comprehensive plan by 2026 that outlines the steps and actions to make the Company's products and services circular ready. Our plan will have: Established governance for plan execution Defined methodology and actions to reach the goal Defined target year(s) where year over year progress will be tracked Project plans and KPIs for key work streams Alignment and integration with business strategy As of 2025, our efforts to develop a plan are underway. The Company is in the process of completing data collection and calculations to establish a 2025 baseline. This work is ongoing and will inform the development of the Company's plan for the 2026 goal year. Our strategy is primarily based on the Circular Economy framework and principles of the Ellen MacArthur Foundation, which defines circular products as those that can be used more, are made to be made again and are made from safe, and recycled, or renewable inputs. Our products and services will be considered "circular ready" when they align to an established circularity framework. We will continue to report progress on the development of our plan. Concluded Goal: Key markets to introduce or increase resale and upcycling initiatives to extend the life of our products by 2025 The Company's existing resale and upcycling goal reached the end of its stated commitment period in fiscal year 2025. Accordingly, the section below reflects the Company's final progress against this goal through its expiration. While the Company did not achieve an expansion in the number of key markets with established resale and upcycling initiatives by the end of fiscal year 2025, throughout the goal period, the Company maintained a consistent presence in recommerce through its Levi's® SecondHand platform, which remained the primary channel for resale activity in the United States. Performance across this platform has been sustained year over year, reflecting continued consumer engagement. As of 2025, through the Levi's® SecondHand recommerce platform we have reclaimed or extended approximately 21,000 units of clothing and resold approximately 8,000 units, serving around 5,000 customers. The below table represents an estimate of items sent for a second life (including consumer trade-ins, vintage products, and damaged returns), shown as net items fulfilled, rounded to the nearest thousand: Year ended 2024 2025 Units of clothing reclaimed or extended 21,000 21,000 Number of units resold 8,000 8,000 Number of consumers purchasing secondhand items 5,000 5,000 As a next step, initiatives focused on extending the life of products are being advanced through the Company's circularity work and will be incorporated into the circularity plan to be released in 2026. Goal: Zero waste to landfill from company-operated facilities and 50% waste diversion across strategic suppliers by 2030 We have two waste-related targets-one for our owned and operated facilities and one for our supply chain. Efforts to measure owned and operated waste diversion data have been temporarily paused while we evaluate the prioritization of our efforts surrounding our consumption goals. We remain committed to developing a process to obtain and calculate this data, and we expect to resume efforts to capture and report on these metrics in subsequent years. However, as part of our broader efforts to achieve zero waste to landfill, we are pursuing True Zero certification as a pathway to achieving zero waste to landfill. As part of our waste diversion efforts, LS&Co. seeks to certify our company-operated distribution centers and manufacturing facilities as TRUE (Total Resource Use and Efficiency) Zero Waste. In alignment with the Zero Waste International Alliance and TRUE Zero Waste certifications, facilities that reach the 90% or greater threshold for "overall diversion from landfill, incineration (waste-to-energy) and the environment for solid, non-hazardous wastes for the most recent 12 months" are designated as zero waste. In 2024, for the first time, our distribution center in Henderson, Nevada achieved a TRUE Silver certification with a 95.2% waste diversion rate. Similarly, the Northampton distribution center obtained a TRUE Certification and diverted 90.8% of waste from landfills. In 2025 we maintained our certifications for both locations with diversion rates of 93.4% and 90.6% for Henderson and Northampton, respectively. The waste-related target for our strategic suppliers is intended to track the percentage of nonhazardous waste diverted from landfills across key supplier facilities. Waste diversion refers to the process of redirecting waste materials from landfills through reuse, recycling (upcycling or downcycling), or composting in alignment with global waste management frameworks. The waste represented is the percentage of nonhazardous waste diverted over all nonhazardous waste in kilograms by our key suppliers. Waste data is provided by suppliers, through Higg FEM, and is based on the calendar year; therefore, waste data does not align with LS&Co.'s fiscal year. As such, we have used the 2025 calendar year data which most closely aligns with our fiscal year. In 2025, our key suppliers have diverted 74% of waste from landfill. Due to data availability constraints, not all key supplier facilities reported waste data through Higg FEM. As a result, the waste diversion percentage reflects only those suppliers whose data is accessible to LS&Co. As of 2025, approximately 75% of our key suppliers reported waste data. Supplier-reported data is subject to varying levels of completeness and may evolve as our data collection processes continue to mature. We continue to enhance our data collection and validation processes to improve the completeness and accuracy of this metric and better represent our full key supplier base. % of waste diverted from landfill at key suppliers 77% 74% Year ended December 31 2024 2025 Goal: Eliminate single-use plastics in consumer-facing packaging by shifting to 100% reusable, recyclable or home compostable plastics by 2030 The Company has taken initial steps toward this goal including participation in a Fashion for Good project to test compostable alternatives to conventional single-use polyethylene bags; and are identifying the immediate and longer-term actions to reduce the use of plastics in our supply chain, distribution centers and stores. The Company continues efforts to collect packaging-related data and identify source reduction opportunities to support extended producer responsibility compliance in applicable jurisdictions. This data will be leveraged to understand packaging composition and reduction opportunities in alignment with this target. Work to eliminate single-use plastics in consumer-facing packaging has been temporarily paused while we evaluate the prioritization of our efforts surrounding our consumption goals and extended producer responsibility requirements. We remain committed to exploring alternative and long-term methods to reduce plastics, both at LS&Co. and with others in our industry. We expect to resume efforts to capture and report on these metrics in subsequent years. Goal: Strategic garment wet finishing manufacturing and fabric mills use 100% certified Screened Chemistry by 2026 Our chemistry goal pertains only to our wet finishing key supplier manufacturing facilities and fabric mills (or 'applicable facilities'). Key suppliers refer to suppliers covering more than 80% of our global product units. Wet finishing is defined as any processing stage where textile is washed or treated with chemicals and water. We track the percentage of Zero Discharge of Hazardous Chemicals ("ZDHC") Manufacturing Restricted Substances List ("MRSL") and Screened Chemistry conformance. The ZDHC MRSL provides a clear framework for identifying and eliminating hazardous chemicals from our supply chain, ensuring that our products are safer for people and the environment. Using chemical formulations that conform to the ZDHC MRSL allows suppliers to assure themselves and their customers that banned chemical substances are not intentionally used during production processes. Meanwhile, Screened Chemistry enables our suppliers to go a step further by proactively evaluating, tracking, and selecting safer chemical alternatives to enhance the overall safety and sustainability of our supply chain. Screened Chemistry covers auxiliary and polymer chemicals used for production and helps suppliers meet future hazard assessments and regulatory requirements. Tracking both these metrics reflects our commitment to continuous improvement and enhancing traceability of chemicals used in our supply chain. We engaged applicable facilities to implement ZDHC's chemical management tools to ensure that manufacturing facilities are utilizing ZDHC MRSL-compliant chemistries. As of 2025, 89% of chemicals delivered to or used by applicable facilities for production were in conformance with ZDHC MRSL. We also engaged with these facilities to request Screened Chemistry certifications from their chemical suppliers. As of 2025, 27% of our applicable facilities' auxiliary chemicals used for LS&Co. were certified Screened Chemistry. The results of our applicable facilities are self-reported and weighted using the results of a third-party verification performed on a sample population: Year ended 2024 2025 % of chemicals purchased for production in conformance with ZDHC MRSL 78 % 89 % % of Screened Chemicals in inventory used for LS&Co. production 22 % 27 % We launched the LS&Co. Chemical Playbook in 2022 and have since implemented updates. For the most recent revisions, refer to the 2026 edition of the Chemical Playbook . The Playbook communicates both our Screened Chemistry strategy and steps for supplier facilities' conformance with ZDHC requirements. Refer to the playbook and the Other Metrics section for more details. Goal: Use only third-party preferred or certified more sustainable primary materials by 2030 Our fiber goal defines primary materials as cotton, manmade cellulosic fibers (MMCs), leather and polyester. These were selected based on either the high percentage of fibers used in our products, or the overall risk surrounding the raw material. We define "more sustainable" materials as those that have achieved third-party verification or certification recognized by the Textile Exchange, which defines a preferred fiber or material as "one which results in improved environment and/or social sustainability outcomes and impacts in comparison to conventional production." While our suppliers source a small amount of leather, we include it in our analysis given the impact of leather on biodiversity. We work with our suppliers to improve supply chain visibility and partner with solution providers to support the development of leather traceability. In our year-over-year fiber analyses, we track the fiber used in our products based on current year purchases made for future product seasons: the current year's fall season (the second half of the current year) and next year's spring season (the first half of the following year). Together, these seasons generally correspond to the fiber sourced for LS&Co. products in the fiscal year. Fibers used in LS&Co. products as a percentage of all fibers sourced: Year ended Fiber 2024 2025 Cotton 89% 90% Polyester 7% 6% Manmade cellulosics 3% 2% Elastane 1% 1% Other (wool, leather, hemp, etc.) <1% 1% Data for cotton, manmade cellulosics and polyester exclude local production, licensees and Beyond Yoga®. Data for leather excludes local production, licensees and Beyond Yoga®. The percentage of leather products sourced from Leather Working Group ("LWG") rated suppliers is based on the best available information at the time of reporting. LS&Co. is dedicated to improving the methodology used to calculate the amount of LWG-rated leather in our products by partnering with LWG and our suppliers. Percent of fibers sourced that are more sustainable: Year ended 2024 2025 More sustainable cotton (i.e., BCI, CmiA 3 , USCTP, or cotton that was recycled, organic, or transitional) 100 % 100 % Manmade cellulosic fibers sourced from Canopy Green Shirt-rated suppliers 100 % 2 99 % 1 Leather products sourced from Leather Working Group (LWG)-rated suppliers 86 % 97 % Recycled polyester 4 13 % 9 % In 2025, we accepted manmade cellulosic fibers manufactured by Lenzing and Birla only. In 2024, we accepted manmade cellulosic fibers manufactured by Renewcell, Lenzing and Birla only. In 2025, Cotton made in Africa (CmiA) was added, as a pilot program, as a source of more sustainable cotton. Recycled polyester defined as polyester sourced from post-consumer or post-industrial waste feedstock.