Planet-Conscious

Deliberate climate action is needed to ensure a fruitful future for all of us, which is why we are part of the Science Based Targets initiative (SBTi), a global collaboration committed to limiting temperature rise to less than 1.5 degrees Celsius by 2030.

In 2019, we set targets in line with climate science in order to reduce our greenhouse gas emissions (GHG). In 2021, SBTi approved our targets, which include:

• Reduce absolute scope 1 and 2 GHG emissions 50% by 2030 from a 2018 base year.
• Reduce absolute scope 3 GHG emissions covering purchased goods and services, and fuel and energy related activities 30% by 2030 from a 2018 base year.
• Increase annual sourcing of renewable electricity from 40% in 2018 to 100% by 2030.

Thanks to an increase in our use of renewable electricity, we have seen a 68% reduction in scope 1 and 2 emissions since our base year. In 2023, we exceeded our goal to reduce absolute emissions from Scope 1 and 2 by 50% by 2030 on a 2018 base line.

We have maintained consistent emission levels throughout our value chain, specifically in scope 3 emissions, since 2018. Looking ahead, we remain committed to increasing the share of recycled content for our retail and e-commerce plastic packaging. By doing so, we aim to ensure a continued balance in emissions while fostering sustainability throughout our operations.

• 2023 Scope 1 and 2 Verification Statement
• 2023 Scope 3 Verification Statement

Our energy management strategies focus on renewable electricity — an area of emphasis that positively impacts the environment and lowers our emissions on a global scale. It also brings a variety of benefits: better air quality, lower emissions and energy resiliency, which means fewer disruptions in our supply chain.

In 2023, 68% of our global electricity was renewable through a mix of on-site renewables and the purchase of Renewable Energy Certificates (RECs). We utilize eight on-site solar farms which generated 12,623,269 kWh of electricity in 2023. Six of the eight solar-farms generated more power than what the facility required, creating a surplus of solar energy. Generating our own on-site power has ensured business continuity when extreme weather such as hurricanes or storms impacts the local power grid.

Additionally, we purchase international Renewable Energy Certificates (iRECs) from renewable energy projects in Central America to cover Honduras and El Salvador production. This means 68% of our electricity is sourced from renewables.

Over the last year, we also began procuring wind energy and are now progressing towards integrating iRECs sourced from renewable sources in Morocco.

Across our total energy consumption — which includes fuels, natural gas and electricity — 40% of the electricity consumption in 2023 came from renewable sources. We continue to work on our process improvement program to reduce energy and meet efficiency targets by facility. This work is led by our Corporate Environmental Health and Safety Steering team, which tracks all utility and consumption data. In 2023, the team implemented 60 major efficiency projects that reduced our overall electricity consumption by 25% since our baseline year.

Moving forward, we will continue to work on reducing our energy and steam consumption and increase the purchases of RECs as we work toward 100% renewable electricity procurement globally.

Water makes our business possible, from the farmers who rely on it in cotton production to the processes we use to produce and dye cotton textiles.

Along the supply chain, we all have a responsibility to be good stewards of this precious resource. For us, that means prioritizing efficiency in our textile facilities where we have the most control.

Since 2018, we have achieved a 16.2% reduction in water intensity, or the amount of water used per pound of fabric — achieving our goal of a 10% reduction ahead of 2030. We achieved this through multi-year investments in innovative technologies that allowed us to reach greater efficiency in the shortest possible time. We also integrated a higher standard to lessen the impact of textile dyes on people and the planet. And we have on-site wastewater treatment capabilities that filter water back into a system at a higher quality than we withdrew. These process improvements enabled our textile facilities to recycle a portion of the water we use.

Moving forward, we will allow time to realize the full impact of our most recent process improvements and will continue assessing additional opportunities in the future.

Our sustained commitment to waste reduction means all our facilities are zero waste. This vital achievement is made possible through a system of process optimization at every location that looks to better utilize all fabric — from cutting patterns that minimize scraps to implementing new design software to reduce samples.

We also establish collaborative partnerships across our supply chains to divert waste from landfills. For example, our textile waste goes to a partner who recycles textiles or repurposes them into insulation for mattresses or car seats. Since 2018, we have recycled over 140,000 MT of cotton and polyester fiber.

In support of Fruitful Futures, our sustainability plan, we assembled a team of planet-conscious employees to help drive our global sustainability initiatives at a local level: the Green Team. This group helps to educate and engage employees around Fruitful Futures, and to implement planet-conscious changes at our offices through strategic projects.