Reformation Annual Report by DEARZAVA

THE REFORMATION

2019 ANNUAL REPORT

CONTENTS INTRODUCTION

#WEAREREFORMATION

CHAPTER 1: PEOPLE

CEO Letter

Board Members

Actions + Goals

CHAPTER 2: PRODUCT

Financial Review

Actions + Goals

CHAPTER 3: PLANET

Sustainability Report

Fashion Impacts

Action + Goals

CHAPTER 4: PROGRESS

Reuse + Recycle

Actions + Goals

Design Process

REFRAMING THE WAY WE THINK ABOUT FASHION We are a clothing brand that focuses on making sustainble fashion and making it accessible for everyone. Product, People, Planet & Progress are our core values and we strive for “no tradeoff” solutions. We treat all people on this planet with respect. We do more with less. We believe climate change is the biggest issue facing the planet. We create impressive environmental results. We are focused on profits and know they are key to the sustainability of Reformation. We put sustainability at the center of everything we do and that translate to our team as well. We are Reformation.

2019 ANNUAL REPORT

#WEAREREFORMATION

LESLIE Shipping Clerk “My Parents own a little business and when I’m not working here I go help them or babysit my brothers.” I’m a very interactive person so for me to not do anything is totally boring so what I like about here is that I’m up and running.”

ALBERTO Facilities Manager “ If someone has a problem with the machines I have to go in an get it fixed. I like to help. I like to help everyone. Since I was a child I like to be playing with stuff and figuring out how to fix things. I thinks that how I learned and I’m also going to school cause everything around us has electricity that’s why I want to get a masters in electricity.”

JUAN Sewing Machine Operator “I learned with my father In Guatemala. He own a small shop and I started learning when I was 12 years old. I met my wife at church and we got married four weeks ago.”

LUCILA Seamstress “I came here in 1986 and have been a seamstress for 20 years. Sometimes when I buy clothes that are too big I fix them at home. In fact three weeks ago I bought a dress that was too long and to cut it. I wore it to my nephews graduation and everyone liked the style and color. I had a lot of likes.”

JOE Cutting Team “I’m a soccer fanatic, I love spending time with my kids when I’m at home and teaching the oldest one to play soccer and I can’t wait till the younger one gets old enough to play too.”

LUPE Pattern maker “I work closely with the designers. They give me the design with just one sketch and I imagine in my mind of how the ruffle and style will lay on the body and then when I see it in the stores or famous people wearing that stye I feel so proud.”

There are people behind the clothes we wear, and too often they work under terrible conditions. That’s why we built our own sustainable factory in Los Angeles, where we work with awesome people from all over the world.

PEOPLE There are people behind our clothes, and we are responsible to ensure safe, healthy, and fair working conditions. We want to be good partners, and focus on building mutually beneficial relationships, understanding and progress with our vendors. We invest in our communities.

2019 ANNUAL REPORT

WE WANT TO RE VOLUTIONIZED SUSTAINABLE FASHION. Since 2009, Reformation was born with a mission to recast ethical fashion as a desirable, stylish and contemporary proposition. Reformation has been carbon neutral since 2015, it sources locally when possible, uses eco-friendly packaging, screens its suppliers, and invests in green building infrastructure to minimize waste, water and energy footprints. This years report showcases our efforts to move forward in mission to recast ethical fashion and bring on a new light. Focusing on how our clothing is made and being conscious of our choices that truly make a difference in your carbon footprint while looking good in it is what Reformation is all about. We work hard because we know our market works hard to receive our products. We are pleased with the team’s performance to date in the early stages of our new financial year, with trading in line with our expectations. A major focus for the Group in the year ahead will be on continuing to expand the brand in our targeted international markets, through our wholesale and digital sales channels. In addition, we have an exciting pipeline of new products, partnerships and initiatives to expand the brand into new categories. We are excited to move forward and create a culture within fashion where we are conscious about who, how and where our clothes are being made.

Yael Aflalo

2019 ANNUAL REPORT

BOARD MEMBERS

Jennifer Maclellan CFO

CH.1 | PEOPLE

Alex Becker VP of E-Commerce

Hali Borenstein Director of Merchandising

The Board is collectively responsible for the long term success of the the company. Provides entrepreneurial leadership, sets Group strategy, upholds the company’s culture and values, reviews management performance and ensures that the company’s obligations to shareholders are understood and met. They are the building blocks of this brand and movement that trancends fashion into a new meaning.

Sarah Logan VP Planning + Merchandising

Kathleen Talbot VP Operations + Sustainability

2019 ANNUAL REPORT

ACTIONS & GOALS Social responsibility & accountability Actions • Maintain supplier vetting, onboarding, Corrective Action Plan (CAP) program per the Sustainable Paners Guide (SPG) • Develop & implement sustainable remediation solutions • Network with brands in shared facilities to reduce audit fatigue • Grow monitoring and capacity building via preferred monitoring • Align with a credible MSI focused on social responsibility; paicipate in early stages and help pilot new programs & initiatives • Living wage initiative for Reformation’s in-house factory Implement collaborative initiatives to enhance working conditions in main facilities • Join global plaorms to promote better wage systems • Launch trainings on social responsibility for relevant internal teams

Goals • Publish Code of Conduct and additional guidelines on website & post in all facilities • Monitor 100% Tier 1 & 2 suppliers • Build a social compliance program that focuses on capacity building rather than audits • Pursue FLA accreditation • 100% Reformation Factory team earning L.A. living wage

CH.1 | PEOPLE

Stakeholder Engagement Actions • Launch sustainable purchasing practices training • Paicipate in Better Buying program • Long-term sourcing strategy & panership building • Suppo lobbying effos for industry critical issues • Paicipate in a multi-stakeholder initiatives (MSI) w/ focus on industry collaboration & shared learning

Goals • Paicipate in Better Buying and improve our purchasing practices based on feedback • Complete stakeholder map & materiality matrix • Membership in MSIs (i.e. Textile Exchange)

2019 ANNUAL REPORT

Giving + Advocacy Actions •Expand VTO program •Pursue strategic collaborations with non-profit paners

Goals •Increase VTO paicipation year over year by 10% •At least 2 strategic non-profit campaigns a year

CH.1 | PEOPLE

2019 ANNUAL REPORT

PRODUCT We put product first—how and where we make it matter. Material choices have the greatest impact, so we push for better fibers and finishing processes. We want to be able to answer “who made our clothes” at every level of the supply chain.

2019 ANNUAL REPORT

FINANCIAL RE VIEW REVENUE Revenue increased by 17.2% to $218.0 million from $185.9 million in FY18 (up 16.8% on a constant currency basis). Retail and Wholesale revenue figures in the Period were impacted by the transition of two large US wholesale accounts to the retail concession model - a move that provides Reformation greater future trading flexibility. For comparable purposes the approximate revenue growth excluding the impact of this transition is disclosed in the table below:

STORES During the year we opened seven new stores and closed one store. At the end of the Period, the Group operated 125 owned stores, in addition to 34 concessions and three franchises. Our stores are in desirable locations with a reason to visit, they operate on relatively short lease terms and continue to play an important role in the expansion of the brand in France. As part of our flexible and integrated ‘Total Retail’ model our stores portfolio plays an increasingly important role in a customer’s digital purchase journey, with increased utilisation of our click & collect, order in store and in-store return services, with digital transactions now representing approximately 20% of store transactions.

CH.2 | PRODUCT

RE TAIL Retail revenue increased by 22.7% to 159.1 million, which represents growth of approximately 10% when adjusted for the transition of two large wholesale accounts to the retail concession model in the Period. Revenue growth benefitted from the Group’s flexible and integrated ‘Total Retail’ model as well as our steadfast focus on delivering a seamless and enjoyable experience to customers, irrespective of how, when and where they choose to shop The Reformation.

E-COMMERCE On average, e-commerce uses about 30% less energy than traditional retail. Good news because the majority of our customers use our online site to make purchases (we’re all for never getting out of bed either). We also calculate the carbon footprint of our web server and your screen’s energy demand while browsing the Ref website. And yes, we offset that too! E-commerce performed particularly well this year and now represents 49.5% of all retail sales (FY18: 38.4%), benefitting from the transition to a retail concession model in the Period. The strong performance of our owned e-commerce channels was attributable to a 15% increase in traffic. In addition, ongoing investment in both the customer experience and infrastruture of our digital platforms continues to make them easier to shop and drive improved conversion trends. This growth was complemented by good perfmance on our concession partner retailer websites.

LICENSING Revenue from licensing activity increased by 147% to $1.8 million. This increase is the result of improved performance within existing licensing partnerships, as we increased distribution and grew the productrange, and the launch of new brand licence partnerships in new product categories including watches and accessories.

2019 ANNUAL REPORT

WHOLESALE During the year we opened seven new stores and closed one store. At the end of the Period, the Group operated 125 owned stores, in addition to 34 concessions and three franchises. Our stores are in desirable locations with a reason to visit, they operate on relatively short lease terms and continue to play an important role in the expansion of the brand in France. As part of our flexible and integrated ‘Total Retail’ model our stores portfolio plays an increasingly important role in a customer’s digital purchase journey, with increased utilisation of our click & collect, order in store and in-store return services, with digital transactions now representing approximately 20% of store transactions

INTERNATIONAL REVENUE Total international revenue increased by 43.5% and now represents 16.1% of total Group revenue (FY18: 13.1%). This very strong performance demonstrates the appeal of the Joules brand in our target international markets. International wholesale grew by 42.3% in constant currency, with growth in existing accounts and the addition of several new accounts. International e-commerce in the US and Germany continued to perform very well, with strong and encouraging growth albeit from a relatively low base.

CH.2 | PRODUCT

ACTIONS & GOALS Better Materials Actions • Implement Reformation Fiber Standards in sourcing criteria & process • Publish Reformation Fiber Standards to all suppliers • Build materials library for Design & Product Development • Publish fiber sourcing interactive toolkits to engage internal teams on how to limit environmental and social impact • Expand direct panerships with fiber producers (i.e. Econyl, Lenzing) • Create trim-specific standards & begin roll out of better trim options

Goals • 75% of fabric spend meet A/Bs for Ref’s Fiber Standards by 2019 • 90% of fabric spend meet A/B/Cs for Ref’s Fiber Standards by 2023

CH. 2 | PRODUCT

Chemical Management Actions • Work with mills & wet processing facilities to define & implement MRSL chemical management & wastewater quality programs • Maintain Restricted Substance List (RSL) & roll out to all suppliers • Ensure robust testing protocols & enforcement of RSL • Recruit suppliers to join NRDC s Clean by Design program, ZDHC or SAVE to implement water, energy and chemicals efficiency programs

Goals • 100% RSL compliance of finished goods & fabrics

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Clean Chemistry Actions • Identify non-compliant mills / printers and pursue ceification process (i.e. Bluesign, Oeko-Tex, GOTS) • Reduce non-ceified paner mills • Invest & commit to orders / co-share cost if necessary to push for improvements

Goals • Define all accepted clean ceifications 75% of fabric spend ceified clean

CH.2 | PRODUCT

Traceability Actions • Tier 1 & 2 traceability and supply chain visibility; oppounistically extend to Tier 3 & 4 when appropriate • Focus on relationship building & emphasize panership in sourcing; increase leverage & build relationships • Include environmental and social responsibility in allocation decisions • Define and implement chain of custody process

Goals •Annual on-site visits to established vendor base •Publish vendor list on website •Publish factory & mill spotlights on website •HIGG assessment rollout for Tier 1 & 2

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PL ANET We calculate our environmental footprint in terms of gallons of water, pounds of CO2e, and pounds of waste. We keep our true costs—including environmental impact—in mind when we make design and business decisions. We limit our footprint, but offset the rest so our stuff is 100% “neutral”.

2019 ANNUAL REPORT

SUSTAINABILIT Y REPORT Big companies report their profits in quarterly earnings reports. We think companies should be accountable for more than just profits. Here is an update on our sustainable progress so far.

TRACEABILITY OF OUR STUFF Traceability is about knowing where our things come from. We want to be able to answer “who made our clothes” at every level of the supply chain to ensure positive environmental and social impacts of our stuff. We’ve shared all the info about our factories, and now we want to go deeper about our materials. The production of materials is a complex process (which makes up Tiers 2-5 below) that includes growing or creating the raw materials, processing it into a fiber, spinning the yarn, weaving or knitting it into a fabric, and then dyeing or printing and finishing it.

CH.3 | PLANET

We are dedicated to supply chain transparency so we can confidently stand by our sustainable product claims and create positive change. We do this by creating strong relationships with our suppliers, and selecting core fiber and fabric producers that meet our standards. But we still have a lot of work to do – supply chains are fragmented and complex. We’ve been building systems in order to better track and evaluate lower tiers of our supply chain. Right now we request supply chain mapping information (aka the supplier contact and location of specific processes and materials) and verify relevant facility certifications and a chronological paper trail for all materials. Our next focus is on real-time assurance, monitoring and developing relationships further down in the supply chain (Tiers 3+!) to ensure fair, safe and healthy conditions for everyone behind your Ref stuff. Our goal for 2019 was to reach 100% traceability into our Tier 1 & 2 suppliers. We made it! Here’s a quick breakdown of our traceability progress in every tier of our supply chain.*

WE HAVE:

100%

Tracebility into our own garment manufacturers

100%

Traceability into our mills, dyers, and printers

72%

Traceability into our raw material processors

56%

Tracebility into our raw material producers

Tracebility into our farms and forests 2019 ANNUAL REPORT

IN 2019 WE USED A TOTAL OF 97 DIFFERENT MATERIALS The dyeing, printing and finishing stages include processes that are super resource intensive. That’s why we are passionate about working with our wet-processing facilities to ensure responsible use of chemicals, water and energy so that products are safe for you and the environment. Certifications like Oeko-tex Standard 100 ensure that products are safe and are a good start. Bluesign certification works more holistically and focuses on implementation to ensure products are manufactured with responsible use of resources and the lowest possible impact on people and the environment. That’s why we work to convert our facilities to Bluesign.

REF x OSOMTEX Waste is the worst. Less than 1% of material used to make clothing is recycled into new fabrics, which is equivalent to wasting $100 billion worth of materials each year. That’s why we partner with Osomtex to upcycle our fabric scraps from our Factory in Los Angeles. Scraps will be used to make new materials.

IMPACT SO FAR IN 2019:

39,065

pounds of fabric scraps up-cycled Equivalent savings:

888,119 lbs of CO2

3,945,174 gallons of water

CH.3 | PLANET

NEVER NOT CIRCULATING There is actually enough clothing and textiles in existence today to meet our annual demand globally. That’s why we signed the 2020 Circular Fashion System Commitment with the goal of recirculating 500,000 garments in the next five years. By encouraging circularity through things like Ref Vintage sourcing, RefRecycling, thredUP and Rent the Runway partnerships, we’re more than halfway there already — so obviously we need to set an even higher bar for next year.

IMPACT SO FAR IN 2019:

311,361

garments reused and recycled Equivalent savings:

2,462

metric tons of CO2

24,000,000 gallons of water

FIBER PREFORMANCE Up to two-thirds of our sustainability impact happens at the raw materials stage—before the clothes have actually been made. Fiber selection also affects how you’re going to wash the garment and potentially recycle it one day - both important factors to consider when it comes to the environmental impact. That’s why we have our own Ref fiber standards. We tried to make these standards as holistic as possible, taking into consideration water input, energy input, land use, eco-toxicity, greenhouse gas emissions, human toxicity, availability and price.We’re so close to our goal of having 75% of our fabrics meet A/B ratings in 2019.

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IMPACTS OF FASHION Fashion is the third most polluting industry in the world, and one of the largest consumers of water. Making fabric uses water, energy, chemicals, and other resources that most people don’t think about, or ever see. We think knowledge is power, so we talk about resource use, climate change, and other impacts of fashion.

CH.3 | PLANET

WATER We all know that the world is facing extreme freshwater scarcity - in fact over a billion people don’t have access to safe water. Fashion is the second largest consumer and polluter of water because processing raw materials and manufacturing clothing consume extreme amounts of precious H2O.

CONSUMPTION Manufacturing textiles is extremely water intensive. For example, producing one pair of denim jeans uses over 1,000 gallons of water. This amounts to over 450 billion gallons of water every year just to make the jeans sold in the US.

POLLUTION After the water is used in the manufacturing process, this often-polluted water is then sent back to our rivers, lakes and oceans. The World Bank estimates almost 20% of global industrial water pollution comes from the treatment and dyeing of textiles. In China alone, the textile industry pumps out more than 3 billion tons of wastewater every year.

PLASTIC POLLUTION Synthetic clothes are made with plastic and when you wash synthetics they shed small plastic pieces called microfibers. Microfibers are too small to be filtered out by waste treatment plants, so they end up in our waterways and oceans by the billions. Once in the ocean, they act as pollution magnets that marine animals mistake for food, and which can eventually end up in our food. We use recycled synthetics to lessen our environmental impact, but these potentially shed microfibers too. That’s why we’re working hard to phase out all synthetics, recycled or not from highly washed garments like tops, bottoms, and dresses. That way you can wear and wash all your clothes without adding to this mess. 2019 ANNUAL REPORT

CLIMATE CHANGE Contrary to what some of those crazies say, we think climate change is real and fashion is not making it better. From growing textile fibers to moving fabrics around the world, making clothes sadly fuels this global climate crisis.

PRODUCTION EMISSION Manufacturing textiles is extremely water intensive. For example, producing one pair of denim jeans uses over 1,000 gallons of water. This amounts to over 450 billion gallons of water every year just to make the jeans sold in the US.

TRANSIT EMISSIONS After the water is used in the manufacturing process, this often-polluted water is then sent back to our rivers, lakes and oceans. The World Bank estimates almost 20% of global industrial water pollution comes from the treatment and dyeing of textiles. In China alone, the textile industry pumps out more than 3 billion tons of wastewater every year.

POLLUTION + TRASH Synthetic clothes are made with plastic and when you wash synthetics they shed small plastic pieces called microfibers. Microfibers are too small to be filtered out by waste treatment plants, so they end up in our waterways and oceans by the billions. Once in the ocean, they act as pollution magnets that marine animals mistake for food, and which can eventually end up in our food.

CHEMICALS Contrary to what some of those crazies say, we think climate change is real and fashion is not making it better. From growing textile fibers to moving fabrics around the world, making clothes sadly fuels this global climate crisis.

CH.3 | PLANET

RUNOFF We all know that the world is facing extreme freshwater scarcity - in fact over a billion people don’t have access to safe water. Fashion is the second largest consumer and polluter of water because processing raw materials and manufacturing clothing consume extreme amounts of precious H2O.

TRASHED CLOTHES Manufacturing textiles is extremely water intensive. For example, producing one pair of denim jeans uses over 1,000 gallons of water. This amounts to over 450 billion gallons of water every year just to make the jeans sold in the US.

COTTON After the water is used in the manufacturing process, this often-polluted water is then sent back to our rivers, lakes and oceans. The World Bank estimates almost 20% of global industrial water pollution comes from the treatment and dyeing of textiles. In China alone, the textile industry pumps out more than 3 billion tons of wastewater every year.

PESTICISES Synthetic clothes are made with plastic and when you wash synthetics they shed small plastic pieces called microfibers. Microfibers are too small to be filtered out by waste treatment plants, so they end up in our waterways and oceans by the billions. Once in the ocean, they act as pollution magnets that marine animals mistake for food, and which can eventually end up in our food.

2019 ANNUAL REPORT

DAMAGING FABRICS Synthetic clothes are made with plastic and when you wash synthetics they shed small plastic pieces called microfibers. Microfibers are too small to be filtered out by waste treatment plants, so they end up in our waterways and oceans by the billions. Once in the ocean, they act as pollution magnets that marine animals mistake for food, and which can eventually end up in our food.

SHOES We all know that the world is facing extreme freshwater scarcity - in fact over a billion people don’t have access to safe water. Fashion is the second largest consumer and polluter of water because processing raw materials and manufacturing clothing consume extreme amounts of precious H2O.

PRODUCTION Manufacturing textiles is extremely water intensive. For example, producing one pair of denim jeans uses over 1,000 gallons of water. This amounts to over 450 billion gallons of water every year just to make the jeans sold in the US.

AF TER-LIFE After the water is used in the manufacturing process, this often-polluted water is then sent back to our rivers, lakes and oceans. The World Bank estimates almost 20% of global industrial water pollution comes from the treatment and dyeing of textiles. In China alone, the textile industry pumps out more than 3 billion tons of wastewater every year.

CH.3 | PLANET

2019 ANNUAL REPORT

ACTIONS & GOALS Environmental resource management Actions • Calculate & publish product lifecycle impacts via RefScale • Offset product footprint through strategic paners • Analyze supply chain for transpoation footprint & ID oppounities for efficiency • Analyze retail development footprint & oppounities to “green” materials or processes • Perform utility analysis for all Ref facilities • Purchase Renewable Energy Credits (RECs) for all Ref facilities -ensure RECs contribute directly to new renewable projects • Implement collaborative resource efficiency programs in main facilities (i.e.renewable energy projects, zero waste)

Goals • 100% RefScale totals offset • HIGG Facilities assessment rollout for Tier 1 & 2

CH.3 | PLANET

Quality & low impact care Actions • Design for durability & quality • Engage PD & Quality teams to expand fabric testing • Publish low impact care guides for customers • Explore finishing innovations for product longevity & durability • Activate green cleaning network & resources

Goals • 60%+ of product assoment safe for hand / machine wash

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PROGRESS We push sustainability forward. We lead & inspire a sustainable way to be fashionable. We invest in the future, and take risks to solve hard problems .

2019 ANNUAL REPORT

REUSE + RECYCLE SUSTAINABLE PRACTICES We put sustainability at the core of everything we do. We invest in green building infrastructure to minimize our waste, water, and energy footprints. By providing on-the-job training and opportunities for growth, we also invest in the people who make this revolution possible.

RECYCLING We recycle, compost organic wastes, and recycle or donate our textile scraps whenever possible. Zero waste is our goal. Right now, we recycle about 75% of all our garbage. Our goal is to reach over 85%. Every little thing adds up.

SUSTAINABLE PURCHASING Reformation is committed to minimizing our environmental impact and achieving fair, safe and healthy working conditions throughout our supply chain. We seek to partner with suppliers who share a common vision of sustainability, accountability and transparency. We currently require that suppliers meet our standards for: social responsibility, safe & non-toxic, and better materials.

SUPPLIES A business uses a ton of stuff. To manage our impact, we adopted Environmentally Preferred Purchasing policies across all our operations for things like office and cleaning supplies, shipping materials, and manufacturing equipment. We prioritize products with recycled-content, and opt for solutions that are recyclable or biodegradable.

CH.4 | PROGRESS

PACKAGING Our packaging is plastic-free and made from 100% recycled paper products and compostable bio-based films. Plus our tape and hangers use bio-based, non-toxic adhesives. Our garment bags are made from 30% recycled plastic and always get reused. It’s the best we could find, but we want it to be better. If anybody wants to work with us to develop even more magical packaging solutions, let’s chat. The vegetable bag that your cute clothes came in is 100% compostable. That basically means it’ll disintegrate and completely return to the Earth just like organic waste, leaving no toxic chemicals behind. Kind of like an apple core except not edible. It’s home compostable so you can toss it into the yard trimmings bin or compost it yourself. If you live near a Ref store, the easiest thing you can do is just drop your bags off with us. We’ll do all the hard work for you.

FABRIC To keep our supply chain as sustainable as possible, we make sure our suppliers take social and environmental standards seriously. By sourcing locally when possible, and screening all of our suppliers, we minimize environmental impacts and ensure there’s no unfair or unsafe labor that goes into making our clothes.

HANGERS + TOTES Typical hangers are made of plastic or metal and have the lifespan of only 3 months. We use recycled paper hangers to lessen the demand for new materials and to keep junk from landfills. Americans toss 102 billion plastic bags a year. We opt for reusable totes because they lighten the load. Plus they’re way cuter.

2019 ANNUAL REPORT

ACTIONS & GOALS Circularity Actions • Expand RefVintage to additional markets • Expand RefRecycling program to responsibly recycle garments • Develop relationship w/ LA-based fiber recycling solution for cutting waste • Develop & implement solutions to reduce & responsibly recycle textile waste from our paner suppliers • Paner with ThredUp & other resale plaorms • Launch “Zero waste” program in the Ref Factory (i.e. Marker efficiency, upcycling, fabric recycling) • Design for circularity training for PD & design teams • Explore repair service & other programs to help extend the use of garments

Goals • Reuse or recycle 100,000 garments a year • Build a program to reduce, recycle & upcycle fabric scraps

CH. 4 | PROGRESS

Sustainable Sourcing Actions • Invest in new fiber innovation & tech at early stages • Focus on low impact sourcing effos especially vegan/traceable leather or alternative, sweater yarns, organic cotton supply chain, & cleaner viscose • Collaborate & suppo select innovation plaorms (i.e. Fashion for Good, Future Tech Lab)

Goals • Secure 2-3 major sourcing “wins” a year • Shi majority of viscose spend to clean & traceable viscose

2019 ANNUAL REPORT

Engagement + Education Actions • Keep pulse of industry to help ID and invest in what is “next” • Publish The Sustainability Repo • Develop messaging hierarchy & content creation for Marketing • Invest in “Planeteers” programs and internal team engagement of sustainability issues & lifestyle • Develop comprehensive retail engagement strategy for internal team & in-store education / events • Curate Ref Action programs to promote customer activism & advocacy for critical sustainability issues • Lead with openness, honesty, and be straighorward about where we are, and what we still need to work on.

CH.4 | PROGRESS

DESIGN PROCESS Reformation’s design mission is to make effortless silhouettes that celebrate the feminine figure. The design process starts with us thinking about what we really want to wear right now. We source the most beautiful and sustainable fabrics possible to bring those designs to life quickly. Most fashion is designed 12-18 months before it’s released, but at Ref a sketch can become a dress in about a month. We’re designing and making what you want to wear right now. We believe the perfect fit is the most important part of our clothes. We spend hours fitting on different bodies and have a meticulous approach to our fits. Our main range is fit on multiple women that are between 5′6 and 5′10. We also launched a petites collection designed for ladies 5′2 and under, an extended sizes collection going up to size 22, as well as a collection specially designed to fit women with a full C-DD cup. These capsules based on body types are just the first steps in our quest to make sure women of many shapes and sizes can wear Ref (and look damn good doing it).

REFSCALE At Reformation we think about all the costs in creating fashion—not just the price tag. RefScale tracks our environmental footprint by adding up the pounds of carbon dioxide emitted and gallons of water we use, and pounds of waste we generate. Then we calculate how Reformation’s products help reduce these impacts compared with most clothes bought in the US. We share this information on every product page of our website and tell you exactly what impact each garment has on the environment. This way we all get to see the total cost of fashion so you can make empowered choices, and we can keep creating better solutions when it comes to making clothes.

2019 ANNUAL REPORT

THIS IS WHO WE ARE