#1L r asos FASHION WITH INTEGRITY OUR 2030 PROGRAMME JA#2◄ © 2021 ASOS The Team Patrik Silén Chief Strategy Officer Anna Suchopar General Counsel & Company Secretary Jo Butler Chief People Officer Simon Platts Responsible Sourcing Director José Antonio Ramos Chief Commercial Officer Tom Byrne Head of Corporate Responsibility asos#31 # Fashion with Integrity has guided our approach to business since 2010. Now it's time for even bolder action INTRODUCTION 2 We've worked to renew our commitment to FWI by setting four ambitious new 2030 targets 3 We've conducted a materiality assessment and engaged with all our stakeholders to identify the most important issues for our business 3 asos#4OUR FWI 2030 AMBITION We are simplifying the core pillars of Fashion with Integrity and doubling down on two pillars and four 2030 goals PLANET 1 Be Net Zero FASHION WITH INTEGRITY Key 2030 Goals 2 Be More Circular PEOPLE Key 2030 Goals 3 Be Transparent 4 Be Diverse 4 asos#5AGENDA OUR PROGRESS OUR PROCESS OUR 2030 AMBITION SLUSION .NO SO BAZZ USION 100 COLLUSION L 530 ANGEL ANGEL ANGEL Swe LIVE OFE ه سالم SEXUAL LUSION NE Be ANGEL ANEL ANGEL LUS ON Lin Oper JY PAM ASECHS NON UNE GEL NG ANGEL ANGEL ANGEL Co#6OUR PROGRESS Over the past decade we have focused our work in these areas Our Products Respecting people, animals and planet with great products that our customers can trust Our sourcing strategy focuses on three key areas: ethical trading, sustainable sourcing and animal welfare Our Business Achieving growth while minimizing our operational environmental impact Our biggest operational impacts are carbon emissions from the transportation of our goods, the running of our buildings and packaging waste Our Customers Giving young people the confidence to be whoever they want to be We reflect the needs of our customers to help them look, feel and be their best, ensuring our products and communications were responsible, inclusive and celebrate diversity Our Community Investing time and resources to make a real difference in our local communities Our diverse community work all centres on our brand purpose: to give people the confidence to be who they want to be 6 asos#7OUR PROGRESS Our Product Highlights A relentless focus on our product supply chain ensuring transparency, appropriate working conditions, freedom from slavery and access to remediation fast forward Building sustainable supply chains In 2014, we co-founded the Fast Forward auditing programme to address issues specific to UK manufacturing We have encouraged our brand partners to sign up to Fast Forward, and last year we introduced additional new requirements for third-party brands supplying ASOS with garment products manufactured in the UK Our supply chain is fully mapped to Tier 3 and publicly disclosed every three months, and audits are carried out at least once per year for Tier 1 and Tier 2 facilities We're consistently ranked among the top brands globally for transparency by the Fashion Transparency Index all In 2017, we became the first ecommerce brand globally to sign a Global Framework Agreement with IndustriALL Global Union, affirming our support for Freedom of Association industri global union 7 asos#8OUR PROGRESS Our Product Highlights We led the way on ethical trading, reducing modern slavery and improving human rights and we have driven progress on switching to more sustainable fibres ASOS Modern Slavery Statement February 2020 - January 2021 We have published 5 modern slavery statements, which have been recognised as industry best practice by the UK Home Office F 10 We have made great progress in switching to more sustainable fibres across ASOS brands, with circa 30% of our products using more sustainable fibres Pre-pandemic we achieved just under 85% verified more sustainable cotton across our business The latest ASOS denim ranges use 50% less water during the laundry phase ual: london college centre for sustainable fashion In 2018 we started work with the Centre for Sustainable Fashion to develop an education programme for circular design In 2020 we launched our first ever ASOS Design Circular Collection as a proof-of-concept for circular fashion M 8 asos#9OUR PROGRESS Our Business Highlights We have reduced our operational environmental impact by reducing our emissions... asos OGRAFIE ALLE SAP dpd 2017 YTA 20 style, fresher cir ved 100% MAR DK70 ZYD We issued our first carbon emission report in 2012 and have reported our operational carbon emissions every year since In 2015/16 we launched our Carbon 2020 programme with the goal of reducing our operational carbon emissions per order every year until 2020. Our emissions reduced by 45% since 2015/16 to FY20 In FY20, not only did emission intensity fall but absolute emissions reduced by 13% compared to the year before, driven largely by a drop in CO2 associated with customer deliveries and returns Increased the number of parcels delivered using electric vehicles, with over 2 million UK orders fulfilled with EVs since 2019 9 asos#10OUR PROGRESS Our Business Highlights And we have reduced our impact on plastic waste OBES GUBE You Keep an abies childre I'M 100% RE and d c ETTERS bo in Do no 10 danger of e 2 asos HE asos HERNAN asos Bar ON HELLO asos Our sourcing of renewable electricity has increased to 75% and we've installed solar panels on top of our offices in Camden Our garment and mailing bags are made out of 90% and 80% recycled content All our cardboard boxes are made from 100% recycled materials and are 100% recyclable We have reduced own-brand garment packaging by nearly 40% 10 asos#11OUR PROGRESS Our Customer Highlights We give young people the confidence to be whoever they want to be through the public-facing partnerships we create, the products we sell and how we communicate to customers FEPTANCE OR ALL STOR AUTY UNITY asos ANILA UNITY Nity COS DESIGN glaad& gload RIDE DETERMINATION UNITE FOR EQUALITY UNITE F EQUAL ACCEPT FOR AL OSOS Proud partners of the British Paralympic Association since 2015 Committed to making our shopping experience more accessible for customers with disabilities Promotion of LGBTQ+ rights and acceptance through collaboration with partners including London Pride, GLAAD, and Exist Loudly. Offering inclusive sizing in all our ASOS collections 11 asos#12OUR PROGRESS Our Community Highlights We have supported the communities who support us asus SUPPORTS HEROES help Line YOUNG AND WORRIED ABOUT HOMELESSNESS? WE'RE HERE FOR YOU. 0808 800 0661 CENTREPOINT.ORG.UK/HELPLINE ON SIDE Always there for young people Prince's Trust We have partnered with the Prince's Trust, for over 10 years and raised over £1 million for the charity, as well as helping 650+ young people through our partnership programmes With Centrepoint, the ASOS Foundation was one of the original founding funders of the charity's National Youth Homelessness Helpline, which has supported over 15,000 young people since its launch in 2017. We raised over £300,000 via charity fundraising products to donate directly to local NHS Trusts, NHS Charities Together & The Care Workers Charity Recently launched a partnership with OnSide Youth Zones, part-funding the development and early year running costs of a new Youth Zone in Barnsley We launched a collaboration with Oxfam to raise money for their international Covid-19 response effort through the sale of face masks in the summer of 2020 raising a total of £230,000 for Oxfam's global relief effort 12 asos#13In Summary Fashion with Integrity has guided ASOS since 2010 We've set four ambitious new targets: Be Be Be Be NET ZERO MORE Circular Transparent Diverse 13 asos#14AGENDA OUR PROGRESS OUR PROCESS OUR 2030 AMBITION riad#15OUR PROCESS Fashion with Integrity is an integral part of our strategy for becoming the #1 destination for fashion-loving 20-somethings worldwide 2. The ASOS Brands Design that can't be found anywhere else 1. Truly global retailer 3. The ASOS Platform One platform with all the relevant product, all of the time 4. The ASOS Experience Inspiring, exciting, friction-free and personalised 5. Effective, efficient and sustainable model 15 asos#16Do 8 OUR PROCESS Our process has been highly collaborative Our materiality process Stage 1 Desk based research to identify material issues Stage 2 Employee surveys and interviews with internal and external stakeholders Stage 3 Internal materiality workshop Stage 4 Executive materiality workshop Stage 5 Final materiality report MATERIALITY ASSESSMENT Carried out by an external reporting expert in line with the industry standard approach to sustainability strategy development based on guidance provided by The Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) Process involved engagement with employees, investors, global brand partners and suppliers, and human rights and fashion sustainability organisations, to identify the most important areas of focus FORMULATION OF AMBITIONS AND PLANS Formulated through a collaborative internal process ✓ A cross-functional team developed proposals based on the materiality assessment, analysis of our FWI programme so far, extensive consumer insights, benchmarking against competitors, and reviews of anticipated regulatory changes ✓ Roadmaps and plans for achieving the ambitions were also formulated and costed ✓ The proposals extensively debated at Exec level to ensure that the ambitions are stretching but achievable 16 asos#17OUR PROCESS We used the Materiality Assessment to prioritise issues ● We identified Responsible Supply Chain Management; Business Ethics, Compliance & Resilience; DEI; GHG Emissions; Sustainable Materials & Packaging; and Circular Product (including responsible use) as our most material issues This is not an exhaustive list of issues. Some are - combined into one – e.g., environmental supply chain covers water use, chemical compliance and animal welfare policies Issues we haven't included in our four goals are still important and we will continue to tackle them through our wider programme under Fashion with Integrity Influence on stakeholder decisions and assessments HIGH MODERATE DATA SECURITY & PRIVACY Diversity, equity & inclusion Community investment & relations VERY HIGH INDUSTRY ENGAGEMENT & LEADERSHIP ASOS employment practices BUSINESS ETHICS, COMPLIANCE & RESILIENCE Impact on economy, environment and society Responsible supply chain management - Social GHG EMISSIONS PRODUCT QUALITY & SAFETY RESPONSIBLE SUPPLY CHAIN MANAGEMENT- ENVIRONMENT SUSTAINABLE MATERIALS & PACKAGING CIRCULAR PRODUCT INCLUDING RESPONSIBLE USE Key ACCOUNTABLE & TRANSPORT GOVERNANCE & REPORTING RESPONSIBLE PRODUCTS, MARKETING & ADVERTISING ENVIRONMENT Social GOVERNANCE#18OUR PROCESS Consumers increasingly state that they want brands to produce eco- friendly products, and this is especially true for younger consumers 26 25 24 23 22 21 20 19 18 이 아니 이 17 16 15 14 2015 16-24 % CONSUMERS WANTING BRANDS TO PRODUCE ECO-FRIENDLY PRODUCTS¹ 25-34 2016 35-44 2017 2018 26 24 23 2019 % CONSUMERS SAYING THAT KNOWING A PRODUCT IS ENVIRONMENTALLY FRIENDLY WOULD INCREASE THEIR LIKELIHOOD OF BUYING² 16-24 25-34 23 35-44 18 2020 15 18 1 Which of these things do you most want your favourite brands to do / provide? (Max. 3 answers. Global Web Index, UK, US, DE, FR, AU, RU, IT & SA panels 2 When shopping online, which of these features would most increase your likelihood of buying a product? Global Web Index, UK, US, DE, FR, AU, RU, IT & SA panels asos#19OUR PROCESS A significant share of our customers have indicated that brand ethics influence their purchase decisions Reasons for shopping more/less with a retailer recently shopped with - UK ASOS Customer Panel Under 30, % Respondents Product quality is poor Too expensive for what it is I find it hard to find what I'm looking for Isn't a brand that appeals to me Doesn't fit me well Don't agree with the brand's ethics Doesn't have a good choice of products the products look Not conveniently located Not easy to return products App/website is not good Customer service is poor Delivery of online orders is poor I don't like the way BUY LESS 14 19 25 23 35 34 42 40 50 49 56 63 Has a good choice of products Is good value for money I like the way the products look Product quality is good Is a brand that appeals to me Easy to find what I'm looking for Fits me well Delivery of online orders is good App/website is good Easy to return products I like the brand's ethics Customer service is good Conveniently located BUY MORE 17 17 25 30 37 41 39 37 41 53 53 1 In the future, do you expect that you will buy more, about the same, or less clothing from the following retailers? What are the main reasons you anticipate buying more from [RETAILER] in the future. Can select up to 3. What are the main reasons you anticipate buying less from [RETAILER] in the future. Can select up to 3. 65 19 71 asos#20AGENDA OUR PROGRESS OUR PROCESS OUR 2030 AMBITION CHECK ZERO/CS 9507 AV#21OUR 2030 AMBITION OUR 2030 AMBITION We are simplifying the core pillars of Fashion with Integrity and doubling down on four 2030 goals FASHION WITH INTEGRITY PLANET Key 2030 Goals 1 Be Net Zero 2 Be More Circular PEOPLE Key 2030 Goals 3 Be Transparent 4 Be Diverse 21 asos