Deckers Outdoor : CREATING CHANGE REPORT (FY25 Deckers Climate Report 4126)

Pathway to Creating Change DECKERS BRANDS CLIMATE TRANSITION PLAN - OCTOBER 2025



Table of Contents

A MESSAGE FROM OUR VP, SUSTAINABILITY & COMPLIANCE 3

INTRODUCTION 4

CLIMATE TARGETS AND STRATEGY 6

GOVERNANCE AND METHODOLOGY 7

KEY CLIMATE IMPACTS 13

CLIMATE RISKS AND OPPORTUNITIES 23

ENGAGEMENT 25

MEASURING THE TRANSITION 29

CONCLUSION 30

GLOSSARY 31

ABOUT 32

‌A Message From Our VP, Sustainability & Compliance

With global temperatures continuing to rise, we recognize our responsibility not only to lower the environmental intensity of our operations but to enable systemic change across our value chain. As the Vice President of Sustainability and Compliance, I am proud to share our Climate Transition Plan-an actionable and science-aligned roadmap guiding our journey toward a lower-carbon, sustainable and resilient future.

Our plan is rooted in the latest climate science and guided by the goals of the Paris Agreement. We have set science-based targets, approved by the Science-Based Targets initiative, which apply to our operations (Scope 1 and 2) and extend across our value chain (Scope 3), where the majority of our impact lies.

Scope 1 and 2 emissions are managed using an absolute contraction approach, consistent with a 1.5°C decarbonization pathway. This reflects our commitment to reduce direct and energy-related emissions in line with climate science.

Scope 3 emissions, which represent the majority of our total footprint, are being addressed through a sector-specific decarbonization pathway aligned with a well-below-2°C trajectory, using an economic-intensity approach.

KEY ELEMENTS OF OUR CLIMATE TRANSITION PLAN INCLUDE:

• Renewable Energy: We are prioritizing real emission reductions across our owned and operated facilities through energy efficiency measures and renewable energy consumption.

• Scope 3 Engagement: We are working closely with our supply chain partners to advance manufacturing practices and logistics, leveraging our partnerships, environmental monitoring, and scorecard process to drive decarbonization.

• Product Innovation: We are exploring circular design and increasing our use of preferred materials across our product portfolio.

• Climate Governance, Transparency, and Accountability: Our Board of Directors oversees climate-related risks and opportunities. We disclose our progress annually through our Creating Change report, CDP submissions, and maintaining our alignment with evolving regulatory standards.

  We recognize that climate leadership is not just about setting targets-it's about delivering on them with integrity, urgency, transparency, and equity. That's why our transition plan considers supply chain workers, communities, and factory and supplier partners who are essential in this journey.

  Thank you for your continued trust and engagement. Together we can create meaningful change, shaping a better world for generations to come.

  Sincerely,

  BROOKE BESHAI

  Vice President, Sustainability and Compliance

  
  
  

  ‌Introduction

  At Deckers, we are guided by our belief that we can Do Good and Do Great-for our consumers, our communities, and our planet. Our Climate Transition Plan brings all of our climate commitments into one roadmap, showing how we're transforming ambition into action. It illustrates our efforts to protect the world we share and our promise to being transparent about the progress we make along the way.

  This plan is aligned with the Transition Plan Taskforce (TPT) Framework and charts our journey to 2030 and beyond. It builds on the progress we've already achieved-focusing on our emissions targets, embracing the circular economy, and expanding the use of preferred materials in our products-while setting our sights on extending our vision to

  2050. Innovation, collaboration, and creativity will continue to guide us as we reimagine how footwear and apparel are designed, made, and ultimately delivered to the consumer.

  Inside this report, you will find our goals and the actions behind them: sourcing preferred materials, working with responsible supply chain partners, scaling our circular ecosystem, and addressing challenges across our value chain. Together, these steps will help us unlock new opportunities and meaningful change.

  Most importantly, this plan is about walking the talk-step by step, season by season-so every pair or unit we make moves us closer to a more resilient future, living up to our value that when we Do Good, we also Do Great. What this means is that we show up with respect and act with integrity - for our employees and the world around us.

  
  
  Overview of Deckers Climate Transition Plan

  MATERIALS

  • Increasing Amount of Preferred Materials*

  • Regenerative Agriculture

  • Circular Economy

    MANUFACTURING

  • Energy Efficiency

  • Coal Phase Out

  • Process Optimization

    TRANSPORTATION

  • Evaluating Transportation Opportunities

    PACKAGING

  • Increasing Amount of Preferred Materials*

  • Reducing Plastic Packaging

    OUR OPERATIONS

  • Renewable Energy

  • Energy Efficiency

    USE OF SOLD PRODUCTS

  • Exploring End-of-Life Opportunities

    OTHER SCOPE 3

    EMISSIONS

  • Improving Data Quality

Timeline of Events

FY2019

BASELINE YEAR

FY2021

ESTABLISHED SBT COMMITMENT

FY2025

FY2030

SCOPE 1&2 INCREASED BY 11 .96% SINCE

BASELINE YEAR**

SCOPE 3 DECREASED BY 54.50% SINCE BASELINE YEAR (EMISSIONS PER

$M GROSS PROFIT)

TARGET TO REDUCE ABSOLUTE SCOPE 1 &2

EMISSIONS BY 46%

TARGET TO REDUCE SCOPE 3 EMISSIONS

PER $M GROSS PROFIT BY 58%

*Preferred materials definition can be found in our glossary

**As part of our commitment to continuous improvement, we conducted a re-baseline exercise to enhance data quality and alignment with best practices. This exercise had no impact on our existing science-based targets and served only to refine the data boundaries for Scope 1, 2, and 3 emissions.

‌Climate Targets and Strategy

Our climate strategy is grounded in science-based targets aligned with the goals of the Paris Agreement. Our targets were validated by the Science-Based Targets initiative (SBTi) in October 2021, and are as follows:

• Scope 1 & 2: Reduce absolute GHG emissions by 46% by FY30 from a FY19 baseline year

• Scope 3: Reduce Scope 3 GHG emissions 58% per $m gross profit by FY30 from a FY19 baseline year

OFFSETTING

Our approach remains the same: measure, reduce, and consider offsets as appropriate. This fiscal year, Deckers did not purchase any carbon offsets, nor did we initiate or participate in any internal or external carbon tax schemes. This reflects our current strategic focus on direct emissions reductions and operational efficiencies as primary tools for addressing our carbon footprint.

1. DECARBONIZE OPERATIONS

   Deckers is committed to lowering the environmental intensity of our operations in accordance with its validated SBTs.

   As part of our preparations for compliance with the EU's Corporate Sustainability Reporting Directive (CSRD), we have completed our double materiality assessment (DMA), which can be found in the Creating Change report. Based on our DMA, the key levers of decarbonization we will prioritize are:

   • Reducing our energy impact in our distribution centers, owned corporate headquarters and our leased stores and offices;

   • Reducing our use of petroleum-based materials;

   • Evaluating transportation opportunities; and

   • Working with our supply chain partners to reduce energy consumption.

2. RESPOND TO CLIMATE RISK AND OPPORTUNITIES

   Deckers is committed to identifying key impacts, risks and opportunities identified within its value chain. We face a range of climate-related risks that could materially impact our operations and value chain. These include, but are not limited to, the following:

   • Non-compliance with evolving regional and international climate and energy regulations may result in legal penalties, operational disruptions, and reputational damage.

   • Failure to meet sustainability expectations-such as validated Science-Based Targets (SBTs) and greenhouse gas (GHG) reduction commitments-could jeopardize relationships with consumers, key retail partners, and shareholders.

   • Reliance on non-renewable energy sources at company facilities could increase our carbon footprint and expose us to higher energy costs, carbon taxes, regulatory scrutiny, and insurance premiums.

   • Intensifying extreme weather events pose physical risks to manufacturing and supply chain continuity, potentially affecting financial performance and the availability of critical raw materials.

3. SUPPORT AN INDUSTRY WIDE TRANSITION

   We understand given our scale we are well placed to affect change and encourage industry-wide transformation. These are the key areas in which we commit to accelerating and collaborating on:

   • Material working groups

   • Circularity and footwear working groups

   • Industry groups

     More information in our involvement can be found in our Engagement section.

     
     
     ‌Governance and Methodology

     GOVERNANCE

     Deckers' Board of Directors, through its Corporate Responsibility, Sustainability & Governance Committee (Corporate Governance Committee), comprised of four

     independent directors, oversees our ESG strategy. Our Board has ultimate oversight over all sustainability initiatives, strategies, and programs, including those related to climate change:

   • The Corporate Governance Committee and Board of Directors regularly receive updates on the status of our ESG program. In addition, the Audit & Risk Management Committee (Audit Committee) of the Board periodically reviews risk management, including climate-related risks and policies to ensure a consistent corporate strategy.

   • Deckers' Chief Administrative and Legal Officer has general oversight of our sustainability program, and approves all materials recommended to the Board of Directors for our climate-related strategy. Our Vice President, Sustainability and Compliance has direct day-to-day responsibility for managing our program, including the multiple sustainability committees which meet quarterly, and assessing risks to report to Deckers' Executive Leadership Team and the Board of Directors.

   • Ongoing progress is monitored by multiple management committees that meet regularly, such as the Risk & Compliance Advisory Committee.

     
     
     Governance and Methodology (continued)

     METHODOLOGY

     Our climate strategy is grounded in science-based targets aligned with the goals of the Paris Agreement. We apply differentiated methodologies across Scopes 1, 2, and 3 to reflect the unique characteristics of each emissions source and to ensure credibility and impact in our reduction efforts.

   • Scope 1 and 2 emissions are managed using an absolute contraction approach, consistent with a 1.5°C decarbonization pathway. This reflects our commitment to reducing direct and energy-related emissions in line with climate science.

   • Scope 3 emissions, which represent the majority of our total footprint, are being addressed through a sector-specific decarbonization pathway aligned with a well-below-2°C trajectory, using an economic-intensity approach.

We recognize the importance of a full value chain transition and continue to refine our Scope 3 methodologies in alignment with emerging best practices and evolving data quality.

Using the Greenhouse Gas Protocol, Deckers' emissions have been calculated for the following scopes:

Scope 1: Emissions from operations that are owned or controlled by Deckers, such as natural gas and refrigerants used at our offices, stores, showrooms and distribution centers and petrol and diesel in company leased or owned vehicles.

Scope 2: Emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company at sites under operational control.

• Deckers Corporate Headquarters, Distribution Centers, and Vehicles (Cars & Vans) fall into Scope 1 and 2. Global Retail Stores and Showrooms fall into either Scope 1 and 2 or Scope 3 Category 8 depending on whether Deckers has operational control. The emission sources for Category 8 - Upstream Leased Assets are the same as those for Scope 1 and 2.

  Scope 3: All indirect emissions (not included in Scope 1 & 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

• Raw material sourcing impacts, other purchased goods and services, capital goods, fuel and energy related activities, upstream transportation, waste generated in operations, business travel, employee commuting, upstream leased assets, 3PLs, downstream transportation, use of sold products, end of life of sold products, and franchises encompass our scope 3 emissions. Scope 3 makes up the vast majority of our overall emissions as an organization.

It is also critical to define the boundary that is to be considered within the scope of our greenhouse gas inventory.

Year: April 1, 2024 to March 31, 2025

Boundary: The Scope 3 calculation considers the full value chain of Deckers' operations where Deckers has either operational control, or significant ability to influence either directly or indirectly. This covers the full cycle of all goods directly purchased by Deckers to be sold to end customers.

Exclusions: Category 10, Processing of Sold Products, was excluded as Deckers only sells final products to end-users, and no intermediate products which could be further processed, transformed or included into other products. Category 13, Downstream Leased Assets, was excluded as de-minimis, as Deckers does lease some office floor space in certain offices

around the world, but this has been confirmed as small. Category 15, Investments, was excluded since Deckers has no general portfolio investment utilizing cash reserves, and all emissions from subsidiaries have already been accounted for in scope 1 and 2 reporting.

Emission Factors: Emission factors for vehicle fuels, natural gas, and refrigerants were sourced from BEIS (UK Government Department for Business, Energy and Industrial Strategy - now

part of the Department for Energy Security & Net Zero) Conversion Factors for each appropriate years. Emission factors for electricity were sourced from the International Energy Agency (IEA).

Governance and Methodology (continued)

EMISSIONS SUMMARY

In FY25, we continued working with Carbon Trust, a third-party expert, to conduct our carbon accounting and have closely tracked the progress we have made toward our approved Science-Based Targets.

DECKERS BRANDS GHG EMISSIONS SUMMARY (t CO 2e)

YEAR) (tCO2e)

MARKET-BASED

EMISSIONS tCO2e

*Our emissions baseline year is FY19 as it had to be a year which was not impacted by COVID-19 per SBTi. As part of our commitment to continuous improvement, we conducted a re-baseline exercise to enhance data quality and alignment with best practices. This exercise had no impact on our existing science-based targets and served only to refine the data boundaries for Scope 1, 2, and 3 emissions.

*Note: In cases where shifts in scope, methodology and/or data quality have led to changes in previously reported performance results, we've restated historically reported results.

While we are proud of our progress to date, we cannot predict all potential events that could impact our emissions (e.g. supply chain disruptions, methodology updates, changes to emissions factors, etc.) but our commitment to continuing our work is stronger than ever.

SCOPE FY19 (BASELINE FY20 (tCO2e)	FY21 (tCO2e)	FY22 (tCO2e)	FY23 (tCO2e)	FY24 (tCO2e)	FY25 (tCO2e)
SCOPE 1 1,547 1,467	1,496	1,751	1,695	1,397	1,808
SCOPE 2: 6,589 5,510	5,747	6,779	6,919	6,896	7,301
SCOPE 3 858,848 950,551	1,104,154	1,457,213	984,494	1,074,724	1,083,955
TOTAL 866,983 957,528	1,111,398	1,465,743	993,108	1,083,017	1,093,064

Governance and Methodology (continued)

PROGRESS ON REDUCING EMISSIONS

Scope 1 & 2

SCOPE 1 AND 2 ABSOLUTE REDUCTION PROGRESS FROM BASELINE YEAR (FY 19)

DECKERS BRANDS SBTI REDUCTION TARGETS

FY19

FY20

FY21

FY22

FY23

FY24

FY25

STATUS

SCOPE 1 & 2

(MARKET BASED)

Reduce absolute GHG emissions by 46% by FY30 from a FY19 baseline year

Baseline Year (14.24)%

(10.96)%

4.84%

5.88%

1.93%

11.96%

In Progress

FY19

(BASELINE YEAR)

-%

FY20

FY21

4.84%

5.88%

11.96%

FY22

FY23

1.93%

FY24

FY25

(14.24)%

(10.96)%

ABSOLUTE REDUCTION IN GHG EMISSIONS PROGRESS

*In cases where shifts in scope, methodology and/or data quality have led to changes in previously reported performance results, we've restated historically reported results.

Deckers HQ

Deckers Distribution Centers

Global Retail

Stores

Vehicles

Showrooms

Governance and Methodology (continued)

PROGRESS ON REDUCING EMISSIONS

Scope 3

SCOPE 3 ECONOMIC INTENSITY PROGRESS FROM BASELINE YEAR (FY 19)

DECKERS BRANDS SBTI REDUCTION TARGETS

FY19

FY20

FY21

FY22

FY23

FY24

FY25

STATUS

SCOPE 3

Reduce Scope 3 GHG emissions 58% per $m gross profit by FY30 from a FY19 baseline year

Baseline Year

4.32%

(2.67)%

9.87%

(34.67)%

(45.43)%

(54.50)%

On Track

FY19

(BASELINE YEAR)

-%

4.32%

9.87%

FY21

(2.67)%

FY23

FY24

FY25

FY20

FY22

(34.67)%

(45.43)%

(54.50)%

CHANGE IN tCO2 PER MILLION

$ GROSS PROFIT PROGRESS

*In cases where shifts in scope, methodology and/or data quality have led to changes in previously reported performance results, we've restated historically reported results. Our Scope 3 target is an economic intensity target (e.g. Metric Tonnes CO2/Gross Profit).

Downstream & Upstream

Transportation

Materials

Waste

Warehousing

Fuel and

Energy Related

Business Travel

Upstream

Leased Assets

Governance and Methodology		(continued)
PROGRESS ON REDUCING EMISSIONS DETAILED SCOPE 3 EMISSIONS
CATEGORY NAME	FY19 TOTAL EMISSIONS (tCO2e)	FY20 TOTAL EMISSIONS (tCO2e)	FY21 TOTAL EMISSIONS (tCO2e)	FY22 TOTAL EMISSIONS (tCO2e)	FY23 TOTAL EMISSIONS (tCO2e)	FY24 TOTAL EMISSIONS (tCO2e)	FY25 TOTAL EMISSIONS (tCO2e)
1A: PURCHASED GOODS AND SERVICES (PRODUCT)	747,782	783,260	919,991	1,152,893	775,908	889,895	902,612
1B: PURCHASED GOODS AND SERVICES (NON-PRODUCT)	784	2,529	3,040	4,374	3,955	6,023	20,243
2: CAPITAL GOODS	13,057	16,656	16,839	46,416	22,845	22,792	22,386
3: FUEL AND ENERGY RELATED ACTIVITIES	1,474	1,004	995	2,356	2,101	1,671	1,608
4: UPSTREAM TRANSPORTATION AND DISTRIBUTION	33,945	29,014	28,312	71,314	40,174	47,361	40,513
5: WASTE GENERATED IN OPERATIONS	1,237	1,299	5,421	6,363	5,613	7,255	8,143
6: BUSINESS TRAVEL	4,549	5,584	243	1,574	5,845	15,367	12,069
7: EMPLOYEE COMMUTING	5,990	6,219	4,217	4,197	4,521	3,811	3,980
8: UPSTREAM LEASED ASSETS	5,190	5,793	5,343	5,836	4,118	4,278	5,660
9: DOWNSTREAM TRANSPORTATION AND DISTRIBUTION	26,490	25,346	28,224	33,537	37,685	31,095	12,966
10: PROCESSING OF SOLD PRODUCTS (EXCLUDED)	-	-	-	-	-	-	-
11A: USE OF SOLD PRODUCTS (DIRECT) (EXCLUDED)	-	-	-	-	-	-	-
11B: USE OF SOLD PRODUCTS (INDIRECT)	7,640	2,827	9,253	11,463	19,192	4,563	5,263
12: END-OF-LIFE TREATMENT OF SOLD PRODUCTS	10,711	10,223	11,299	16,828	13,312	19,906	30,917
13: DOWNSTREAM LEASED ASSETS (EXCLUDED)	-	-	-	-	-	-	-
14: FRANCHISES	-	60,797	70,976	100,061	49,227	20,708	17,596
15: INVESTMENTS (EXCLUDED)	-	-	-	-	-	-	-
TOTAL SCOPE 3 EMISSIONS	858,848	950,551	1,104,154	1,457,213	984,494	1,074,724	1,083,955

*Note: In cases where shifts in scope, methodology and/or data quality have led to changes in previously reported performance results, we've restated historically reported results.

‌Key Climate Impacts

A DEEP DIVE INTO OUR VALUE CHAIN

SCOPE 1 + 2

MATERIALS

MANUFACTURING

PACKAGING

TRANSPORTATION

USE OF SOLD

PRODUCTS END OF LIFE

OTHER SCOPE 3

EMISSIONS

DECKERS DIRECT &

INDIRECT EMISSIONS

59%

11%

12% 5%

1% 3% 9%

SHARE OF SCOPE 3 EMISSIONS

100% SHARE OF SCOPE 1 + 2

EMISSIONS

KEY LEVERS

CLIMATE TARGETS

PREFERRED MATERIALS

RENEWABLE ENERGY

VALUE CHAIN ENGAGEMENT

RESOURCE USE + CIRCULARITY

Scope 1&2 Energy Efficiency We are ensuring efforts have been made to reduce consumption through energy efficient activities across all sites and distribution centers. This will include transitioning all

lights to LED and installing control systems such as motion sensors.

In progress - Target achievable

Scope 1 Reducing Refrigerant Emissions Exploring options to reduce emissions from F-gas by moving to low GWP refrigerant. Exploring Opportunities

Scope 1 Upgrading Our Buildings Potentially investing in building improvements and improved insulation and air-tightness to minimize heating and cooling demand. Exploring Opportunities

Scope 1&2 Energy Efficiency Our second Distribution Center location in Mooresville, Indiana, was designed with LED lighting, power monitoring, enhanced energy modeling and commissioning of HVAC

systems, green parking with electric vehicle charging stations and construction waste landfill diversion programs.

Target Achieved

Scope 1&2 Renewable Energy Procurement Installed 1,170 solar panels at our corporate headquarters which help to offset electric energy usage. Our remaining electric energy consumption is sourced via clean and

renewable sources, making our corporate headquarters 100% renewable.

Target Achieved

Scope 1&2 Renewable Energy Installed 120 solar panels in our Moreno Valley Distribution Center, helping to offset electric energy usage. Target Achieved

Scope 1&2 Renewable Energy Ensuring electricity across all owned sites is generated from renewables. Target Achieved

Scope 1&2 Energy Efficiency Moreno Valley Distribution Center is equipped with operating systems that go into an energy conservation mode when the operation senses a certain amount of inactivity,

which allows us to only apply the minimum amount of electricity required across all areas of fulfillment.

Target Achieved

Scope 1&2 Solar Installation We are exploring the possibility of solar expansion in our Moreno Valley, California Distribution Center and other renewable energy options at our Mooresville, Indiana

Distribution Center.

Exploring Opportunities

Key Climate Impacts (continued)

FOCUS AREAS & DECARBONIZATION LEVERS - SCOPE 1 & 2

SCOPE

LEVER

IMPLEMENTED OR PLANNED ACTIVITIES

DESCRIPTION OF PROGRESS

Scope 3 Adapting procurement processes We are exploring ways to reduce the impact of key materials in our supply chain, such as leather and sheepskin, based on their origin and upstream processing techniques.

We assess the full environmental impact of our materials through lifecycle analysis focused on greenhouse gas emissions intensity and are committed to maximizing the amount of preferred materials in our products.

In progress - Target achievable

Scope 3 Processing of materials To reduce emissions during the processing of animal hide we will encourage our third-party tannery partners to explore the utilization of renewable energy. Exploring Opportunities

Scope 3 Gathering supplier data We are closely tracking Tier 1 factory partners assembly emissions and have set robust non-renewable energy reduction targets at an assembly level. For Tier 2 supplier

partners, we collect lifecycle inventory data and analyze through an LCA tool to assess material, manufacturing, end-of-life, and transport impacts.

Target Achieved

Scope 3 Technology innovation and efficiency Automation will play a pivotal role in developing sustainable production methods using new technologies such as robotic machines and automated fabric cutting systems.

These can optimize energy and operational efficiency during the production process.

Exploring Opportunities

Scope 3 Raw material extraction We know that our largest impact is at the raw materials level. Various strategies will allow us to cut these emissions, such as developing and scaling entirely new materials,

using lower-carbon versions of existing materials and increasing the recycled content found in our products. We are currently utilizing hides sourced from land practicing regenerative farming.

Target Achieved

Scope 3 Raw material extraction 60.08% of all cotton fibers used in our footwear, and 99.79% of our apparel, accessories, and home goods, were sourced from a sustainable cotton growing scheme, or were

made of recycled materials. We are committed to ensuring that all cotton used in our products is either recycled or sourced from farms that utilize sustainable crop growing practices by the end of calendar year 2025.

In progress - Target achievable

Scope 3 Recycled packaging 98.50% of our packaging used for footwear and 99.50% of packaging used for our apparel, accessories and home goods utilize recycled and/or certified materials. Target Achieved

Scope 3 Raw materials 56.28% of all co-polyester fibers and films used in our footwear originated from post-consumer, post-industrial or renewable resources, and we are committed to increasing

these percentages.

In progress - Target achievable

Scope 3 Raw materials 61.39% of all fibers used in our footwear are preferred materials. Target Achieved

Scope 3 Circular business model Our business, brands, and products will actively promote a circular economy. This will include designing out waste and pollution, keeping products and materials in use, and

regenerating natural systems. By transitioning towards a circular ecosystem, we reduce our dependence on natural resources, where a lot of our emissions sit.

In progress - Target achievable

Key Climate Impacts (continued)

FOCUS AREAS & DECARBONIZATION LEVERS - SCOPE 3

SCOPE

LEVER

IMPLEMENTED OR PLANNED ACTIVITIES

DESCRIPTION OF PROGRESS

Scope 3 Circular business model We will continue to explore repair and resale, as well as utilizing materials that naturally degrade, and those that are upcycled, downcycled, recycled or regenerative. In progress - Target achievable

Scope 3 Coal Phaseout As of fiscal year 2025 none of our Tier 1 factory partners use coal-based energy, and we will not onboard any new Tier 1 factory partners who rely on coal for energy. Some

of our key Tier 2 supplier partners use coal-based energy but are committed to a coal phase-out by 2030. Beginning fiscal year 2026, no new key Tier 2 supplier partners will be onboarded should they use coal-based energy.

In progress - Target achievable

Scope 3 Processing of materials and garments We will explore ground or air-source heat pumps and thermal energy storage, which captures heat for later use. Exploring Opportunities

Scope 3 Electrification We are exploring transitioning production for our supply chain partners from thermal energy to electricity, including evaluating opportunities to adopt electric boilers and

turbo and induction heaters.

Exploring Opportunities

Scope 3 Processing of materials We are committed to transitioning our supply chain partners away from energy intensive wet processing techniques and exploring increasing our use of spraying, digital

printing, dope dyeing or waterless dyeing, which reduce the amount of water, energy and chemicals used.

In progress - Target achievable

Scope 3 Transportation opportunities We will work across our supply chain to explore optimization and efficiency opportunities. We are committed to having the right product in the right place, in the right

quantities.

Exploring Opportunities

Scope 3 Switching to lower-impact transport We will be evaluating using lower-impact modes of transport with particular focus on electric vehicles (EV) for shipping and logistics. In regions where EV infrastructure is

less advanced, we will explore switching from standard diesel and petrol to sustainable fuel, such as biofuel as a transitional alternative.

Exploring Opportunities

Key Climate Impacts (continued)

FOCUS AREAS & DECARBONIZATION LEVERS - SCOPE 3

SCOPE

LEVER

IMPLEMENTED OR PLANNED ACTIVITIES

DESCRIPTION OF PROGRESS

Key Climate Impacts (continued)

SCOPE 1 & 2 LEVERS

OWN OPERATIONS

As of March 31, 2025, we operate approximately 179 stores, 3 distribution centers, 20 offices, and we employ more than 5,500 people. In our operations, our scope 1 and 2 emissions come from fuels and energy used in stores, distribution centers, offices and cars, plus leakage of refrigerants used in cooling systems. In FY25, emissions from our own operations amounted to about 9,109 tCO2e.* Using the location-based method our emissions would be 8,935 tCO2e. Scope 1 and 2 make up less than 1% of our total emissions.

*Calculated using the market-based method

ACTIONS

These emissions are part of our science-based target to reduce our absolute Scope 1 and 2 GHG emissions 46% by FY30 from a FY19 baseline year.

• All of our distribution centers in Moreno Valley, California and Mooresville, Indiana are LEED Gold Certified.

• Deckers Shanghai office is LEED Gold Certified while our office in Macau is LEED Platinum Certified.

• Our LEED Silver Certified corporate headquarters has approximately 1,170 solar panels installed on the roof which help to offset electric energy usage.

  
  
  

• Our corporate headquarters also utilizes 95%* LED lighting which reduces our carbon footprint, saves energy, and reduces waste as it decreases the frequency of replacing bulbs when compared to regular bulbs. We are working to convert the outstanding 5% to LED bulbs within the next 1-2 years.

• Deckers' remaining electric energy consumption is sourced via renewable sources, making our corporate headquarters 100% renewable.

• We are considering engaging a qualified third-party specialist to evaluate our distribution centers. The scope of this assessment may include reviewing building outfitting and identifying potential opportunities to improve efficiencies.

• For more information, please see our annual Creating Change report.

*By square footage - approximately 95% of our square footage is covered by LED lighting currently

Key Climate Impacts (continued)

MATERIALS FOCUS IMPACTING SCOPE 3

TOP MATERIALS

At Deckers, our key footwear materials based on volume are EVA, Leather, Recycled Polyester, Polyester, and Sugarcane EVA. For apparel our top materials are Recycled Polyester, Responsible Cotton, Polyester, Spandex, and LENZING™ ECOVERO™. These materials may change each year but are reported annually in our Creating Change report.

In FY25, emissions from our materials amounted to approximately 59% of our total Scope 3 emissions. This illustrates the need to focus on our materials in order to lower the environmental intensity of our operations.

TARGETS AND PARTNERSHIPS

Our materials targets and materials related partnerships are noted in our annual Creating Change report.

ACTIONS

Continued progress toward the optimization of preferred materials in our products:

• In FY25, 38.74% of our total footwear materials were preferred with a commitment to ensure 55% of all materials used in Deckers footwear will be made from preferred materials by FY27.

• In FY25, 72.55% of our total apparel and accessories materials were preferred with a commitment to ensure 65% of all materials used in Deckers apparel and accessories will be made from preferred materials by FY27.

• In FY25, 99.73% of all footwear SKUs are comprised of at least one preferred material with a commitment to ensure 100%

  of footwear SKUs will be comprised of at least one preferred material by FY30.

• In FY25, 100% of our leather and sheepskin was sourced from Leather Working Group tanneries.

  These emissions are part of our science-based target to reduce Scope 3 GHG emissions 58% per $m gross profit by FY30 from a FY19 baseline year.

• Over 98% of packaging materials used in Deckers footwear were made from preferred materials and over 85% of packaging materials used in Deckers apparel and accessories products were made from preferred materials.

  
  
  

• We established a long-term grant with the Savory Institute. The grant provides holistic solutions and world-class implementation to promote soil health and biodiversity, with a goal of revolutionizing the Australian sheep farming industry, from which our sheepskin is a byproduct, to regenerative agriculture.

• Use of more preferred finishing methods where possible (inclusive of preferred dyeing methods, pigment dyeing methods, bleach only methods and undyed materials e.g. greige).

• Our business, brands, and products will actively engage in the circular economy (design out waste and pollution,

  keep products and materials in use, and regenerate natural systems). For us, this means we will continue to explore repair and resale, and utilizing materials that naturally degrade, are upcycled, downcycled, recycled, regenerative, etc.

  
  
  
  
  
  
  Key Climate Impacts (continued)

  CIRCULAR ECONOMY

  
  
  

  We want to challenge ourselves and our industry to be innovative and identify solutions for the challenges impacting our planet.

  We strive to think in a circular way rather than the linear model of 'take-make-waste.' There are three key pillars of a circular economy:

  
  
  

  (1) design out waste and pollution, (2) keep products and materials in use, and (3) regenerate natural systems.

  Here is our approach to a circular economy:

  1. DESIGN OUT WASTE AND POLLUTION:

     
     
     

     • Looking at our products and packaging in detail and asking ourselves, "Is this necessary?" By simplifying our products, we can cut down on materials and waste.

     • Each of our brands have midsole/outsole, packaging, and textile waste targets.

       
       
       

     • We recognize that packaging must not be overlooked when it comes to end-of-life. Containers, packaging, and plastic make up a growing share of municipal solid waste.

       
       
       

     • We strive to reduce pollutants by assessing our partners' energy use and associated GHG emissions, exploring alternatives to incineration for waste management, and ensuring proper wastewater disposal.

  2. KEEP PRODUCTS AND MATERIALS IN USE:

     
     
     

     • Longevity and durability are very important and something we are committed to studying for all our brands. UGG is helping to extend the lifecycle of its Classic boots by partnering with NuShoe to restore them and keep them in use longer.

       
       
       

     • Color is an important factor in longevity. We want to explore and identify core and trend colors to determine which are core colors and which are trend colors. Core meaning they will live for a longer period of time in our consumers' closets; and trend meaning they live for a shorter period of time.

       • Understanding footwear recycling is in its infancy globally, we are exploring all available opportunities to extend the life of our

         products. This includes offering refurbishment options and exploring resale opportunities.

       • We remain focused on innovating to help combat the challenges of climate change by actively engaging in the circular economy, giving new life to worn footwear, and collaborating across the industry to bring solutions to scale. We partnered with Fashion for Good on

         its 'Closing the Footwear Loop' initiative to address the footwear industry's significant circularity challenges.

       • We will continue to explore repair and resale opportunities, while prioritizing materials that naturally degrade, are recycled, upcycled, downcycled, or regenerative, etc.

1. REGENERATE NATURAL SYSTEMS:

   • In 2021, we established a long-term grant with Savory Institute to support regenerative farming practices on sheep farms in Australia and, as of March 31, 2025, we have influenced approximately 1,408,369 acres and 105 farms. While we are currently utilizing hides sourced from land practicing regenerative farming, we are exploring other commodities including cotton and rubber.

Key Climate Impacts (continued)

CIRCULAR ECONOMY

Energy from renewable sources

Biological Materials

Technical Materials

Y

L

P

P

L

A

S

R

R

B

T

C

O

O

M

I

N

D

D

E

G

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U

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N

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A

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CIRCULAR ECONOMY

LINEAR ECONOMY

Technical and biological materials mixed up Energy from finite sources

NATURAL RESOURCES

TAKE

MAKE

DISPOSE

WASTE