At On, we're building a fair and inclusive future, driving progress on circularity and renewable materials. For us, impact encompasses both environmental stewardship and social responsibility and the goals that we set to achieve this are deeply woven into the fabric of everything we do. Across our company, we are always assessing and taking into account the needs of both people and the planet. That's why we're committed to reducing our environmental impact while also putting the welfare of our team, our partners and our community at the heart of what we do. We know these are complex challenges and achieving them won't be easy – but this doesn't stop us from pushing forward. We're already making progress. From materials to manufacturing, we're committed to pioneering solutions that lessen our impact for a better tomorrow. From our people to our partners, we're committed to defending everyone's right to move. To deep dive into our impact strategy, we encourage you to read our most recent annual Impact Progress Report.

Yes, we publish an Impact Progress Report every year to provide you with updates on our goals and progress.

We are actively working to lower our environmental footprint with a strategy that spans emissions, materials, processes, circularity, and responsible manufacturing. In 2025, we updated our emission targets to more accurately reflect our business and the lifecycle of our products. Our goals for 2030 are: - Reduce absolute Scope 1 and 2 emissions by 42% compared to 2023. - Reduce Scope 3 emissions per product by 51.6% compared to 2023. Beyond this, we continue to work on how we manage water, chemicals, and waste across our supply chain. Explore our progress in the latest Impact Progress Report.

A scientific outlook is just the first step. Protecting people and the planet also requires partnering with like-minded innovators.

We’re proud to work with the following organizations, all of which align with our ambitions to advance circularity and reduce emissions:

FastFeetGrinded A Dutch company that developed a shoe recycling installation to pulverize and separate all types of footwear. On partners with Fast Feet Grinded to recycle components of damaged shoes.

Ellen MacArthur Foundation (EMF) A non-profit that supports research on the benefits of a circular economy and its role in addressing global challenges such as climate change and biodiversity loss. On has been working with EMF to provide training in circular principles to our product design and creation teams and has collaborated on testing a new training platform on circularity foundations.

Fashion for Good (FFG) As of September 1, 2023, On is a member of the Fashion for Good Innovation Platform. FFG’s mission to drive innovation and systemic change in fashion aligns with On’s sustainability goals. Through this partnership, we have opportunities to collaborate with industry partners on pilots and projects, driving innovation and contributing to a more sustainable future.

The Footwear Collective The Footwear Collective has a vision to build a sustainable future for the footwear industry on the foundations of a circular economy. We have formed a collaborative group with them and other organisations that will serve as the catalyst for circular footwear at scale. It is a partnership with leading brands, suppliers, solution providers, investors and other industry stakeholders to scope, develop, and scale circular solutions.

Cascale A global alliance of fashion companies, academic institutions, and governmental bodies aims to promote sustainable and responsible practices by providing standardized tools and measurement resources.

Textile Exchange A global non-profit that develops, manages, and promotes a suite of leading industry standards to reduce the environmental and social impacts of the textile industry.

The Policy Hub An initiative uniting brands, suppliers, and NGOs to advocate for policies supporting sustainability and circularity in fashion.

Watershed A leading sustainability platform for emissions measurement, reductions and reporting. Used for tracking Scope 1, 2 and 3 greenhouse gas emissions.

Carbonfact An environmental data platform for apparel and footwear for brands and suppliers to measure the planetary impact of their products.

Vaayu The world’s first automated AI software empowering retail brands and businesses to track and cut environmental impact in real-time. We partner with Vaayu to conduct material and LCA studies. In 2024, we worked together to measure the carbon footprint reductions achieved by our LightSpray™ technology.

Textile Genesis A pioneering traceability platform that provides transparency across the textile supply chain. Our partnership aims for full traceability of preferred materials from fiber to finished product.

Transparency is at the heart of how we operate, requiring continuous effort as our company grows. As part of this commitment, we publicly list our Tier 1 and Strategic Tier 2 suppliers on our Transparency page.

Our commitment to sustainable and ethical business practices is embedded in our Code of Conduct, our Supplier Code of Conduct, and our updated Blueprint for Responsible Manufacturing. The principles they contain unite our partners and us. We believe human rights are fundamental to sustainable business, which is why we expect everyone we work with to demonstrate integrity and respect for people and the planet. You can explore these commitments and learn more about our responsible manufacturing initiatives on our Transparency page.

We are committed to promoting safe, fair, and inclusive working conditions for all. Everyone who works with On, including workers in our supply chain, has the right to a good quality of life. Our commitment to ensuring this, through initiatives like implementing a living wage, is integral to our business values, and we work with our suppliers to strive to uphold it. In 2025, 100% of our Tier 1 partners completed our Workplace Standards Monitoring Program. On wages, we expanded our living wage verification beyond footwear to 21 Tier 1 footwear, apparel, and accessories factories across Vietnam, China, Indonesia, and Turkey, covering 96% of our production volumes. Of the 21 factories in scope, all pay above the legal minimum wage and 17 meet the living wage benchmarks (80.9%, covering 77% of our volumes). We are actively working to close these gaps in collaboration with our partners. While we did not fully reach our 2025 target, we have extended this work to 2026 and continue to make living wage performance a core expectation for suppliers. We continue to collect annual wage data from our partners and assess this against the Global Living Wage Coalition (GLWC) benchmark. Working with our internal costing team and leveraging industry best practices, we have developed our methodology to identify wage gaps at specific factories and develop targeted solutions. This data-driven approach helps us track improvements and adjust our strategy. In 2025, we included the WageIndicator Foundation (WIF) Benchmark for geographies where there is no GLWC benchmark available. Read more about our responsible manufacturing initiatives on our Transparency page.

Tier 1 suppliers are footwear, apparel, and accessories manufacturers who make On’s products.

Tier 2 suppliers are manufacturers of materials and components used in On's products. We define Strategic Tier 2 partners as long-term business partners (lasting at least the next three seasons or more), which produce a large volume of our materials or are the sole producers of one of our business-critical materials.

Our footwear and apparel packaging uses 100% FSC-certified cardboard. For our accessories, we use 100% recycled packaging for gloves, caps, and bags, and 10% FSC-recycled material for our sock packaging. We also use 100% recycled High-Density Polyethene (HDPE) for our apparel packagine. All cardboard based packaging used is 100% FSC-certified and recycled, and in 2024, we introduced 100% recycled LDPE polybags for our Bags collection.

Since we set our original material targets in 2020, our net sales have more than tripled. The scale of our business is now very different, causing the total volume of recycled content we use to far exceed our original goals. With a larger product range, new material innovations, and the knowledge gained over the years, we have evolved our Preferred Materials strategy. Our innovation and design teams continue to champion both recycled and renewable materials. By expanding our goals to include renewable sources, we can better tackle two of our main focus areas: moving away from virgin fossil-based materials and advancing circularity through fiber-to-fiber recycling. As we commit to greater transparency across this work, we partner with Textile Genesis to trace our preferred materials through the supply chain. The full list of materials can be found on pages 60–61 of our Impact Progress Report. We have made great progress on our updated goals. As of 2025: - 96% of the cotton and cellulosics used in our apparel and accessories came from preferred sources. - 94% of our PET polyester fibers came from recycled or renewable sources. - 85% of our polyamide fibers came from recycled or renewable sources. - We reached 23% recycled or renewable material by weight in our footwear midsole compounds. More detail on our materials and progress is available in our latest Impact Progress Report.

When it comes to materials, we're constantly widening our scope and exploring new possibilities. We're committed to using more recycled and renewable materials in order to tackle two of our main focus areas: moving away from virgin fossil-based materials, and advancing fiber-to-fiber recycling as a way to progress circularity within our industry. We are also working to find scalable, innovative alternatives and to establish a hierarchy of preferred materials that use less water, less harmful chemicals, lower our carbon footprint, and are sourced responsibly. We class the following as preferred materials: - conventional recycled - advanced recycled - bio-based - bio-attributed - carbon emission-based polymers - preferred cotton - preferred cellulosics For the details and definitions of our preferred materials, you can head to our Transparency page.

Yes, as part of our strategy to lower our environmental impact, we are focused on increasing the use of recycled and renewable materials in our products. Our material goals We have set the following targets for our products: By 2026: More than 95% of cotton and cellulosics used in apparel products manufactured in the year will come from preferred sources. By 2027: - More than 95% of polyamide fibers used in products manufactured in the year will be recycled or renewable. - More than 95% of PET fibers used in products manufactured in the year will be recycled or renewable. - More than 20% of all midsole compounds by weight across footwear styles will be made with recycled or renewable materials. Our 2025 progress We track our progress annually and are transparent about our journey. Here are our results as of 2025: Polyamide: 85% of our polyamide fibers came from recycled or renewable sources. While this is a decrease from 92% in 2024, it reflects an important step forward in our data quality, as we have now expanded our methodology to include polyamide used in footwear for a more complete picture. PET Polyester: We reached 94% recycled or renewable PET polyester fibers, a significant increase from 84% in 2024. Cotton and cellulosics: We achieved 96% use of cotton and cellulosics from preferred sources (up from 80% in 2023), driven by our shift to the US Cotton Trust Protocol. This means we have already met our 2026 goal. Midsoles: We reached 23% recycled or renewable materials by weight across our midsole compounds, surpassing our 2027 goal ahead of schedule.

Conventionally recycled materials undergo mechanical processing to break down materials like cotton and plastic into new fibres, reducing carbon and waste compared to using virgin sources. Recycled polyester is produced from mechanically recycled PET, typically sourced from old plastic bottles. This process removes material from an established circular system – the bottle industry – and converts it into textiles that are not easily recyclable. Therefore, we are committed to replacing conventionally recycled materials, such as polyester, with those produced through advanced technologies, such as chemical recycling, whenever possible.

Advanced recycling technologies transform old textiles into new ones through fiber-to-fiber chemical recycling. This process preserves the material's quality, keeps textiles in circulation, and increases the number of times they can be recycled. We already use these fiber-to-fiber recycled yarns in selected products, and we are paving the way to scale this material across future collections.

Cotton sourced from preferred sources and certification programs, aligned with the Textile Exchange definition of preferred cotton. This includes, but is not limited to, recycled cotton, organic cotton, and traceable U.S. cotton under the U.S. Cotton Trust Protocol.

Materials derived from plants and other renewable agricultural, marine, and forest sources. They offer an alternative to conventional fossil fuel–based materials, allowing resources to be replenished rather than depleted. Examples include the Cloudneo® shoe and Cyclon-T, which incorporate materials derived from castor beans – a drought-tolerant crop that does not compete with forest land or food production.

Bio-attributed materials are made using a mix of bio-based and fossil-based feedstocks through a certified mass balance approach. The renewable content is calculated and attributed to the final product through a verified chain of custody. This approach preserves material quality while enabling a cost-effective transition toward more sustainable production. It also reduces pressure on agricultural land and makes use of waste-derived resources.

Unlike traditional dyeing methods, which color fabrics after they’re woven, dope dyeing injects color directly into the core of synthetic fibers. This seemingly small change has a ripple effect across the production process. By eliminating separate dyeing baths, dope dyeing uses up to 90% less water than conventional methods, significantly reducing chemical-laden wastewater and lowering the textile industry’s environmental footprint. Beyond its environmental benefits, dope dyeing enhances color performance. Because the dye becomes an intrinsic part of the fiber, fabrics exhibit superior colorfastness, retaining vibrancy even after repeated washes. This results in brighter, more consistent colors across production batches and extends the lifespan of garments.

We use selective textiles, both natural and synthetic, for our products, and we are aware of the potential impact that certain textile fibers can have on the environment. In 2025, we participated in a microfibers research pilot with our industry partner, Fashion for Good, and other brand members. The goal was to better understand the challenges and potential solutions related to fiber fragmentation and other sources of pollution. In the next phase, we will involve Tier 2 upstream partners for microfiber testing at independent third-party labs.

We ensure our products are safe and free from harmful substances by adhering to leading industry standards. All of our suppliers must align with the Restricted Substance List (RSL) from the Apparel and Footwear International RSL Management Group (AFIRM), and we also test our products against Oeko-Tex 100 standards. In addition to monitoring our finished products, we are working to improve our manufacturing processes by adopting the ZDHC Manufacturing Restricted Substance List (MRSL). You can read more about this in our Impact Progress Report.

Our products are made without intentionally added PFAS, in compliance with NY and CA state laws.

In 2023, we evolved our strategy and re-evaluated the standards needed to drive the greatest impact across our teams. Following six months of engagement with internal and external stakeholders, we defined 24 clear, measurable goals to guide our sustainability efforts. These goals are split between ‘core goals’, which drive meaningful, real-world impact, and ‘enabling goals’, which build the capabilities and frameworks needed to support future progress. Together, they include 12 foundational goals that establish the groundwork for advancing the three pillars of our strategy. These foundational goals are guided by our Athlete Spirit: a commitment to discipline, continuous improvement, and learning through feedback. Across all our goals, we take a data-driven and ambitious approach, focusing our time and resources on the areas where we can achieve the greatest impact and progress – not only for our business, but for the industry as a whole. You can learn more about these goals and our approach to driving positive impact in our Impact Progress Report.