Absolute emissions are assessed annually (e.g., FY2025 vs. FY2024) to monitor year-on-year changes and are also compared against our baseline year (FY2020) to track progress towards our absolute emissions reduction targets.

Absolute targets require a company to reduce its total emissions by a defined amount. In contrast, intensity emissions reduction targets measure emissions per unit of activity (e.g., per product or per dollar of revenue).

Although we decided not to set an intensity-based target, we still compare Scope 3 emissions intensity to the baseline year (FY2020) to measure long-term efficiency improvements in the context of a growing company with increasing absolute emissions. This approach provides a stable reference point to evaluate whether the actions we are implementing to reduce emissions are delivering effective results.

Negative or Positive emissions intensity:

• Negative % change = intensity improved (emitting less per unit of revenue)
• Positive % change = intensity worsened (emitting more per unit of revenue)

A positive % change is a result of the company emitting more greenhouse gases per unit of revenue or product than before. This is not a desirable outcome because:

• The goal of intensity reduction is to emit less for the same output
• Emissions have increased faster than revenue/output, or
• Revenue/output decreased while emissions stayed constant

• FY2025 absolute GHG emissions increased by 13% compared to FY2024

The increase in ZIMMERMANN’s emissions is primarily driven by Scope 3 Category 3.1 (Purchased Goods & Services), Category 3.2 (Capital Goods) and Category 3.4 (Upstream Transportation).

This increase reflects our business growth, higher production volumes and the expansion of our operations (new stores and expansion into new regions). These activities naturally require more energy, materials and logistics, leading to a higher total emissions footprint.

For more information regarding our GHG emissions inventory, refer to our latest Sustainability Report 2025.

Scope 3 Category-level intensity

• FY2025 emissions intensity decreased by 18%, compared to our FY2020 baseline

The main drivers of this decrease are:

• Category 3.1 (Purchased Goods & Services) reflects a reduction in carbon-intensive materials, such as certain animal fibres like cashmere, alongside an increased use of lower-carbon alternatives such as recycled, organic and regenerative fibres.
• Category 3.4 (Upstream Transportation) and Category 3.9 (Downstream Transportation) primarily due to an optimisation of logistics routes which decreased the distance travelled by each shipment from supplier to store.

At ZIMMERMANN, we are transitioning from a static GHG emissions calculation approach to a dynamic tool that will enhance the accuracy and efficiency of our emissions tracking from FY2026 onward.

We have implemented a GHG Emissions Recalculation Policy and partnered with a specialised software provider to ensure access to robust emission factors and product-level Life Cycle Assessments (LCAs).

We are closely monitoring relevant regulatory and methodological developments, particularly updates to the GHG Protocol and will align our calculations with the revised guidance once the updated Scope 2 reporting methodology, currently under consultation, is finalised.

As we progress on our net-zero transition, we will continue to focus on renewable electricity, supplier engagement, and low-emissions logistics to further reduce our emissions in the coming years. While we monitor reductions in emissions intensity, our primary objective remains the reduction of absolute emissions in alignment with our Science-Based Targets (SBTs).