At VS&Co, we champion responsible, forward-looking business practices. ESG (Environmental, Social, and Governance) is the framework we use to evaluate and deliver on what matters most. Our approach is deliberate, grounded in principles that strengthen trust with our stakeholders, mitigate risk, and advance the priorities of our customers, communities, and business. This strategy enables us to deliver quality products our customers feel good about, sustain the resources critical to our supply chain, and empower the people who make and use our products.

Our strategy remains anchored in our unwavering commitment to supporting women. Women are at the heart of everything we do. They are our customers, associates, talent, and partners in our supply chain. Our commitment to women is not just a reflection of our values; it's a strategic focus on understanding and meeting the needs of our core customers who drive our business success.

We are committed to:

• Supporting Women: Through product offerings, operations across our value chain, online and in-store experiences, and all ways we engage with women in our community, we aim to support women in all they do.
• Sustainable Operations: Committed to improving environmental impact across our supply chain and product lifecycle.
• Ethical Governance: Upholding high standards of corporate governance and ethical business practices.
• Community Engagement: Investing in initiatives that support the communities where we operate.

These priorities are integrated into our company’s overall strategy, influencing decision-making processes and operational practices.

Governance

Our Nominating and Governance Committee of the Board of Directors oversees ESG strategy and sustainability-related risks and opportunities. The Committee reviews progress at least quarterly, or more frequently as needed.

This strategy is led by our ESG Committee, a cross-functional executive working group chaired by the Associate Vice President of ESG. This committee is accountable for integrating environmental and social sustainability considerations into core business strategy and operations.

The ESG & Sustainability team manages the day-to-day coordination of our program and engages with key leaders and partners across the business. To ensure alignment and execution across functions, the team facilitates task forces on priority topics - such as climate, traceability, and human rights - bringing together subject matter experts, operations teams, and functional leaders.

Traçabilité

Foundational to understanding our ESG-related impacts, risks, and opportunities is traceability. By tracking inputs from raw materials to finished goods, we gain critical insights into our upstream operations. This allows us to reduce risk of supply chain disruptions, identify cost efficiencies and product quality opportunities, and uphold our standards for ethical practices.

We currently map 100 % of our Tiers 1 and 2 of our lingerie and apparel supply chain, 100 % of tier 3 cotton spinners, and one-third of Tier 4 cotton fibers.

Each year, we direct-source approximately one-third of our cotton, which helps to reduce supply chain disruptions and ensure a reliable, quality material supply. Further, over 80 % of our core production partners have worked with us for over twenty years. These long-standing supplier relationships drive cost efficiencies, operational stability, and high manufacturing standards. Our sourcing continues to evolve with the world around us, but one thing remains constant: our commitment to raising the bar with our partners. We're continuously strengthening our partnerships, setting higher standards, testing new markets, and elevating production capabilities to remain at the forefront of product and supply chain innovation.

Identifying Material Issues

In 2024, we updated our materiality assessment in accordance with latest guidance from the EU's ESRS (European Sustainability Reporting Standards) framework, facilitated by a third-party. This process serves as the foundation for our ESG disclosures and strategy.

Our assessment considered:

• Impact materiality: where our business may have positive or negative effects on people or the planet;
• Financial materiality: where ESG-related topics may present risks or opportunities that could affect our business performance, position, or value over time.

Topics were assessed across our full value chain, including upstream (e.g., suppliers, raw materials), our own operations (e.g., design, stores, corporate), and downstream (e.g., product use and end-of-life).

We engaged extensively with stakeholders - including internal leaders, subject matter experts, and proxies for investors, suppliers, customers, employees, and nature - to validate and refine our findings. Materiality thresholds were applied based on a 10-point scoring rubric, and final results were reviewed and approved by our executive leadership team.

At the conclusion of our assessment, 10 topics were determined to be material to VS&Co — whether from an impact perspective, a financial perspective, or both:

These topics represent the most critical areas where VS&Co must mitigate risk, drive impact, and unlock long-term value. While other topics remain important, these material topics guide our reporting priorities and resource allocation in the near term.

ESG considerations are not separate from our core business-they are essential to how we build trust, deliver value, and position ourselves for the future. By staying grounded in what matters most to our stakeholders and remaining focused on supporting women at every step of our value chain, we are advancing a strategy that supports long-term value creation and prepares our business for the future.