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National Oceanic and Atmospheric Administration (NOAA): We attended a NOAA meeting in to discuss possible climate impacts on our business, from droughts impacting cotton to the effect of snowstorms on logistics.
We also partner on advocacy for climate policy in key sourcing markets.
For instance, together with more than we signed a call to the government of Vietnam to simplify and expand access to renewable energy.
The TCFD outlines how companies should report on climate-related risks and mitigation strategies.
This year we are aligning our report to TCFD and have outlined our governance, strategy, risk management, and metrics and targets for Gap Inc.’s climate-related risks.
See the TCFD index at the back of this report for our disclosures in full; we also share information in our latest CDP Climate Change Disclosure Response and the ESG Oversight section of this report.
Our preferred fibers strategy aims for resilient supply chains that have a lower impact on the environment and support social well-being.
We support this work by developing impact measurements that allow better decision-making by our Product Development teams, collaborating with our supply chain partners, and participating in industry initiatives.
This strategy enables our brands to make decisions to source more preferred fibers, especially cotton and recycled polyester.
To identify preferred fibers, we use life cycle assessment data on indicators including global warming potential, water use, and eutrophication, as well as evaluating biodiversity, potential for circularity, chemistry, land-use change, and social conditions within production.
To support this, we use industry tools such as the Sustainable Apparel Coalition’s Higg Materials Sustainability Index (MSI) and Textile Exchange’s Preferred Fiber and Material Matrix.
A critical component of our work is collaboration with our suppliers to develop sustainable fabric and manufacturing processes.
We report transparently via the Open Apparel Registry on all Tier 65 percent visibility into Tier 2.
In addition, our Product Development teams depend on resources that allow them to make informed decisions about low-impact raw materials.
These resources include recorded training sessions, regularly updated fiber consumption reports, an extensive internal Product Claims Toolkit, and a new calculator that enables them to estimate how the selection of different fibers will affect a product’s footprint.
Our brands are empowered to set their own raw materials goals and integrate sustainable solutions into product development, where more than of impact decisions are made.
This has resulted in new sustainable product attributes, including Gap Teen, Gap’s Generation Good, and the Yeezy Gap Round Jacket; Athleta’s featherweight stretch with recycled poly; Old Navy’s sugarcane-derived EVA-foam flip flop; and Banana Republic’s recycled materials travel collection with Paravel. Find more abou...
PROTECTING BIODIVERSITY A number of our environmental goals support our commitment to biodiversity.
We also partner with nearly a dozen different coalitions that are committed to protecting nature, including the World Resources Institute, WWF, and Textile Exchange.
We are committed to supporting the development of SBTs on nature, and looking ahead, we plan to develop a Gap Inc. biodiversity strategy that will help us meet them.
We are committed to selecting fibers that have a lower carbon footprint, use less water, create less waste, and support efforts to protect biodiversity.
from more sustainable sources At least 45% of polyester sourced from recycled sources (rPET).
of cotton was sourced from more sustainable sources 10% of polyester was sourced from recycled sources 17.
Defined as: Better Cotton (formerly BCI), verified U.S.-grown cotton (USCTP), organic, in conversion (to verified organic), recycled, and regenerative.
Award at the which recognizes inventions and research around the world under the patronage of the World Intellectual Property Organization (WIPO), the Swiss Government, and the City of Geneva.
We were the first brand to sign up to the new U.S. Cotton Trust Protocol (USCTP), in USCTP’s platform for tracing products with U.S.-grown cotton through the supply chain.
In partnership with technology provider TextileGenesis™, we successfully traced over and will expand on this pilot in 2022.
Our brands are leading the way on natural fibers.
Gap has set an ambitious new in conversion to organic, or recycled cotton and Banana Republic has partnered with Arvind Limited in a multi-year investment to support a farm in India that is transitioning to growing certified organic cotton.
In Cashmere Standard® and Leather Working Group to source responsible animal-derived materials.
Synthetics All our brands have committed to increasing their sourcing of recycled polyester to at least with some brands, such as Old Navy, setting an even higher target.
We are also an active member of Textile Exchange’s rPET Round Table and Biosynthetics Working Group, which help drive industry innovation on more sustainable fibers.
We are especially interested in advancing opportunities around lower-impact nylon and elastane, two critical performance fibers with few existing alternative options.
As R&D evolves on microfiber and microplastics shedding in garments, we will incorporate the latest insights into our preferred fiber strategies.
Manufactured Cellulosics We have worked closely with our fiber suppliers to eliminate production that uses wood-derived fibers from ancient, endangered, high conservation value, and high carbon stock forests.
We continue to work with the CanopyStyle initiative to encourage global suppliers to set policies and complete audits to guarantee they are not sourcing from ancient and endangered forests in their production.
We are also partnering with Canopy on nextgeneration fiber sourcing, which prioritizes alternative inputs such as recycled textiles and waste materials.
Our aim is to consolidate our business to only work with suppliers that receive Canopy’s highest “green shirt” ranking, which indicates they meet the criteria for best practices in protecting forests.
We also piloted the SAC’s Higg Product Environmental Module to understand the impacts of selected products and sought to create robust estimates of environmental impacts where possible.
As well as this, we developed an internal calculator for all our brands that uses MSI data to provide a more holistic picture of a raw material’s climate and water impact for baselining and goal tracking.
Natural Fibers To achieve our goals, we take a portfolio approach to sourcing materials in order to scale multiple options and develop fiber security.
In addition, we work with industry partners to increase the traceability of the sustainable cotton options available to our brands.
For example, the Hong Kong Research Institute of Textiles and Apparel Limited (HKRITA) is studying the desired hydroponic farming conditions for growing extra long staple (ELS) cotton in an urban environment to enable a consistent, stable, transparent supply of cotton in an urban environment, supporting our goals for f...
In Republic launched denim lines created for the Ellen MacArthur Foundation (EMF) Jeans Redesign project.
The denim was produced according to EMF’s three principles of circularity, which state that the jeans should be used more, made to be made again, and made from safe and recycled or renewable inputs.
The group uses research, mapping, supply chain modeling, pilot projects, and more to jumpstart circular solutions for apparel.
In Republic and Old Navy began testing ways to recycle fiber from the textile waste stream into new products.
We’re also working with Accelerating Circularity to develop knowledge on textile-to-textile recycling, anticipating the transition to advanced chemical recycling techniques.
We co-founded a collaborative initiative focused on building the circular economy for fashion in California that is planned to be launched in 2022.
Together with the HKRITA, we are developing more sustainable production processes and technology solutions that enable the industry to advance circular models across the life cycle of textiles.
Firstly, HKRITA is partnering with Artistic Milliners, one of our key suppliers, to develop an environmentally safe dissolution method to remove spandex from used garments.
Secondly, HKRITA is working with Arvind Limited, another key supplier, to create a new method of removing indigo dye from cotton so that denim waste can be more easily reused or re-dyed.
In Roadmap as part of our commitment to The Microfibre Consortium (TMC).
We are also contributing fiber samples for a research collaboration between TMC and the University of Leeds (U.K.) to improve understanding of techniques that reduce shedding of microplastics and microfibers in garment production.
Give Back Box, and Howengage customers in reselling old clothes and donating clothes to people in need.
Gap brand customers have donated program since March 2021.
Working with thredUP®, which gives used clothes a second life, our Gap, Athleta, and Banana Republic customers sent in over Clean Out Kits, resulting in 1.25 million items listed for resale in 2021.
Also in sales to reduce waste and raised more than $157,000 for the Gap Inc. Selvage Fund (see more on p. 9).
Banana Republic Vintage launched in June platform to resell 200+ sought-after heritage pieces from past collections.
Since defining our strategy in have been working with our partners and brand teams on circularity initiatives and goals, and all our brands have embraced work that aligns with at least one pillar of the strategy.
As part of our circularity efforts, we also tackle different waste streams.
We continue to reduce, eliminate, and recycle packaging waste, and have signed The Fashion Pact’s commitment on single-use plastics. Read more about our circularity and waste efforts on our website.
Giving our design teams the tools to make choices that can positively impact product longevity, reuse, and recyclability (read about our sourcing approach on p.
Increasing the use of safe, renewable, and recycled materials, and supporting innovation in circular manufacturing.
Supporting systems for collecting, sorting, and recycling worn textiles into new materials for the fashion industry.
Decoupling profits from the use of natural resources, resulting in new value propositions for the customer.
We prioritize addressing plastic waste in the critical areas that account for single-use plastic: hangers, polybags, shopping bags, and e-commerce mailers.
Elimination of unnecessary or problematic plastics in packaging to consumers by and in packaging to businesses by 2030 Ensure at least half of all plastic packaging is 100% recycled content, for packaging to consumers by 2025, and in packaging to businesses by 2030 After rolling out new polymailers that contain 50 perc...
This will ensure a data-backed strategy going forward.
In cross-brand working group to help fund their research and development of paperbased alternatives to polybags.
Needs attention Our cross-functional task force is working to find solutions for these high-impact categories, and we also invest in innovative packaging design, product labeling, and recycling systems.
We continue to test solutions that take into account the fact that only a handful of U.S. municipalities are able to recycle soft plastics.
These include better communication with store employees about current recycling opportunities at their location, creating in-store marketing materials with recyclability in mind, and collaboration across our vendors to reduce the size of polybags shipped to stores.
for Gap Inc., and our planet and communities.
Good governance is at the center of how we evolve, keep pace, and push ourselves for change while always acting with the highest ethical values.
women, and create opportunity in the world around us.
we hold ourselves accountable with our strong governance structure and management oversight approach.
Our policies and sustainability frameworks guide as as we strive to meet the company's social and environmental goals.
We take a forward-looking approach to governance, prioritizing a structure that includes Board oversight facilitated and enabled by the Strategic Growth Office (SGO).
Our robust management processes and policies are the foundation of a responsible, future-fit business.
In organizational structure to place the ESG team within Gap Inc.’s SGO, a unit of the company charged with thinking beyond its core business to meet the consumer and industry demands of the future.
The SGO brings together Gap Inc.’s Strategy, Environment, Social & Governance, Government Affairs, Corporate Development, and New Business functions to drive sustainable growth aligned with the company’s mission and values.
We have established an ESG steering committee of leaders from critical functions across our organization.
Bringing ESG into the SGO was designed to maximize cross-departmental collaboration, a crucial part of our ESG team’s work.
OUR OVERSIGHT STRUCTURE At Gap Inc., good governance begins with a strong Board of Directorsthat has delegated its oversight of our Sustainability Program to its Governance and Sustainability Committee, which comprises independent directors.
The Governance and Sustainability Committee provides an independent perspective on our Sustainability Program in concert with our overarching strategic objective and oversees our internal ESG team’s management of the Program.
Oversight of Gap Inc.’s ESG Program is overseen by the Governance and Sustainability Committee of the Board of Directors, which provides regular updates to the Board of Directors regarding Gap Inc.’s sustainability programs.
As of the date of this report, Gap Inc.’s Board of Directors which comprises 12 members 10 of whom are independent under NYSE rules.
Five are women, and three are people of color.
OPPORTUNITY https://www.gapinc.com/en-us/values/sustainability/esg-hub/governance-and-strategy Integrate into our business To ensure sustainability is a business imperative at Gap Inc., we have embedded it into our business strategy.
Our ESG team works across our brands and operations.
Set ambitious goals We have set annual KPIs and longterm goals for the company to drive our work forward, measure our progress, and ensure accountability.
Measure progress toward our commitments We strive to always move forward in creating long-term, sustainable progress and delivering real benefits to the people and communities we rely on for our business, which also helps our company succeed.
Form partnerships with civil society, governments, and other sectors to increase collective impact By partnering with organizations from the local to the global level, we fuel sustainable solutions, create greater equality, and scale impact throughout our business, across our industry, and beyond.
Risk Management Each year, management and Internal Audit work together to identify and assess the greatest existing and emerging risks that could impact the company’s operations or ability to achieve its objectives.
Senior executives and VPs provide input on risks and mitigations via an online questionnaire or an interview.
The Risk Committee reviews results, identifies any other key risks, and prioritizes them in the appropriate quadrants based on risk exposure and mitigation maturity.
THE BIG PICTURE EMPOWERING WOMEN ENRICHING COMMUNITIES GOVERNANCEENABLING OPPORTUNITY https://www.gapinc.com/en-us/values/sustainability/esg-hub/governance-and-strategy/responsible-business-practices RESPONSIBLE BUSINESS PRACTICES At Gap Inc., integrity is woven into every aspect of our business.
We hold ourselves to the highest standards of ethics, transparency, and compliance through a strong set of policies.
We create a culture of integrity and trust by Doing the Right Thing: doing business responsibly, ethically, and honestly.