ESG Report | Gap Inc.

Highlights

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1.3 Million

women and girls (approximately) reached by P.A.C.E. since 2007

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2.4 Million+

people empowered to improve their access to clean water and sanitation through Women + Water since 2017

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15,000+

youth hired by This Way ONward since 2007

Empowering Women

Goal	Target Year	Status	Progress
Reach 1 million women and girls through P.A.C.E.	2022	Achieved	Nearly 1.3 million women and girls have been reached through P.A.C.E./RISE since 2007
100% of workers employed in our strategic factories will have their voices heard through representative workplace committees	2025	On track	84% of strategic factories have representative workplace committees (defined as meeting at least 70% of relevant Better Work Academy Social Dialogue Indicators (SDIs) and minimum requirement indicators (SDI 9, SDI 17, and SDI 18))
100% of our strategic factories (those representing 80 percent of our total volume) are investing in women’s empowerment through participation in P.A.C.E./RISE	2025	On track	35% of strategic factories have at least 50% of their female workers enrolled in or completed the P.A.C.E./RISE curriculum 94% of strategic factories have institutionalized P.A.C.E./RISE as part of their HR management systems
100% of our strategic factories will have achieved gender parity at the supervisor level	2025	On track	18% of strategic factories have achieved gender parity at the supervisor level 49% of supervisors in our suppliers’ strategic factories are women, globally
100% of our factories will have prevention and response management systems and trainings in place to address gender‑based violence	2025	On track	46% of factories have prevention and response management systems and trainings in place to address gender-based violence 79% of factories have functioning grievance mechanisms for complaints and suggestions, including gender-based violence and harassment; and 53% of factories have 100% of employees trained on gender-based violence prevention and response each fiscal year
80% of Gap Inc. sourcing will be allocated to green-rated factories	2025	On track	78% of our business spend was allocated to green-rated factories
By 2023, 100% of our Tier 1 facilities will participate in industry wide efforts, including SLCP and/or ILO Better Work, and 100% of Tier 2 strategic mills will participate by 2025	2023 / 2025	On track	99% of in-scope Tier 1 factories are participating 97% of Tier 2 strategic mills are participating
100% of vendors comprising 90% of Gap Inc.’s business spend are invited to participate in Better Buying, with scores isolated across brands, working toward annual public reporting on purchasing practices improvements	2025	On track	100% of vendors comprising 90% of our business spend have been invited to participate in Better Buying. We continue working toward annual public reporting on purchasing practices improvements

Enabling Opportunity

Goal	Target Year	Status	Progress
Hire 5% of Old Navy store entry-level employees from This Way ONward annually	2025	On track	4% of Old Navy entry-level store employees were hired through This Way ONward
Reach 20,000 youth through This Way ONward	2025	On track	Over 15,000 youth have participated since the program launched in 2007

Enriching Communities

Goal	Target Year	Status	Progress
WATER
Support a water-resilient supply chain	2050	On track	Set 2030 goals (see below) as intermediary milestones
Achieve net-positive water impact in water-stressed regions	2050	On track	Set 2030 goals (see below) as intermediary milestones
Reduce water use and replenish water to nature, equivalent to the water used in manufacturing apparel and in our company-operated facilities	2030	New goal	Establishing baselines and context-based targets
Empower 5 million people touched by the apparel industry to improve their access to clean water and sanitation	2030	New goal	Developed new partnerships to expand upon water access impact made to date
Empower 2 million people - including 1 million women - with access to improved drinking water and sanitation	2023	Achieved	Reached over 2.4 million people
Eliminate PFC-based finishes from our supply chain by 2023, in line with our work toward zero discharge of hazardous chemicals in our supply chain	2023	Achieved	100% of fabrics with PFC-based finishes were successfully converted or exited. At the Gap Inc. level, 95% of apparel and accessories units with water repellent or stain resistant performance were produced without PFCs (up from 38% in 2021, and 7% in 2020). About 1% of apparel and accessories units at the Gap Inc. level had a water repellent or stain resistant finish, down from 1.5% in 2021 (PFC-based finishes (which we define as those based on PFAS, or per- and polyfluoroalkyl substances) are no longer being used intentionally in production. Most products available for purchase as of January 1, 2023 are produced without PFC-based finishes, but due to transportation and store inventory timelines and strategies, some styles available for purchase will still have a PFC-based finish.)
CLIMATE
Reduce Scope 3 greenhouse gas (GHG) emissions from purchased goods and services by 30% from a 2017 baseline	2030	On track	In 2021, our Scope 3 emissions from purchased goods and services decreased 25% from a 2017 baseline. 2022 data will be available later in 2023.
Reduce Scope 1 and 2 GHG emissions by 90% from a 2017 baseline	2030	On track	In 2021, our Scope 1 and 2 emissions decreased 64% from a 2017 baseline. 2022 data will be available later in 2023.
Source 100% renewable energy for owned and operated facilities	2030	On track	In 2021, 37% of our electricity for owned and operated facilities was renewable. 2022 data will be available later in 2023.
Achieve net-zero emissions across our value chain	2050	On track	Transitioned goal from carbon neutral to net-zero
PRODUCT
Source 100% of cotton from more sustainable sources (defined as: Better Cotton (formerly BCI), verified US-grown cotton (USCTP), organic, in-conversion (to verified organic), recycled, or regenerative)	2025	On track	81% of cotton was sourced from more sustainable sources
Source at least 45% of polyester from recycled sources (rPET). (Some brands have higher goals)	2025	On track	16% of polyester was sources from recycled sources
WASTE & CIRCULARITY
Eliminate unnecessary or problematic plastics in packaging to consumers by 2025 and in packaging to businesses by 2030, in line with our Fashion Pact commitments	2025/2030	On track	49% of Gap, Old Navy, and Banana Republic shopper bags (which represent the main source of our identified unnecessary or problematic plastics) have been transitioned to paper. 100% of Athleta’s bags are reusable and were not included in this calculation
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, in line with our Fashion Pact commitments	2025/2030	On track	50% of the content in our polymailers sent to consumers is from recycled sources and 100% of the content in our polybags used in logistics is from recycled sources. We are continuing to expand our measurement of plastic packaging used for consumers and businesses

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