ESG Report | Gap Inc.

Highlights

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1 Million+

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

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10,600+

youth hired by This Way ONward since 2007

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1.5 Million+

people reached with improved water access through Women + Water since 2017

Empowering Women

Goal	Target Year	Status	Progress
Reach 1 million women and girls through P.A.C.E.	2022	Achieved	As of the end of fiscal 2021, over 1 million women and girls have been reached through P.A.C.E.
100% of workers employed in our strategic factories will have their voices heard through representative, gender-equitable workplace committees	2025	Establishing baseline	We have developed the following key performance indicators (KPIs): % strategic factories where workplace committees have gender-equitable representation % strategic factories where workplace committees are meeting at least 70% of relevant Better Work Academy’s Social Dialogue Indicators (SDIs) and meet 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 Empower@Work	2025	Establishing baseline	We have developed the following key performance indicators (KPIs): % of strategic factories where at least 50% of the factory’s female workers have been enrolled in P.A.C.E./Empower@Work curriculum % of strategic factories that have institutionalized Empower@Work as part of their HR management systems
100% of our strategic factories will have achieved gender parity at the supervisor level	2025	Establishing baseline	We have developed the following key performance indicators (KPIs): % of strategic factories have achieved gender parity at the supervisor level % of supervisors in our suppliers’ strategic factories that are women, globally
100% of our factories will have prevention and response management systems and trainings in place to address gender‑based violence	2025	Establishing baseline	100% of our factories have prevention and response management systems and 70% have internal trainers in place to address gender-based violence We have developed the following key performance indicators (KPIs): % of sourcing factories that have a functioning grievance mechanism for encouraging employee complaints and suggestions, including to report incidents of gender-based violence, harassment and abuse % of sourcing factories where 100% of employees are 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	68% of our sourcing volume is 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	Needs attention	75% of Tier 1 factories are participating 40% 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	Establishing baseline	Our previous goal applied to 100% of Gap Inc. vendors. In 2021 we decided to revise the goal to apply to the vendors comprising the top 90% of our business spend in order to focus on the vendors where we have the greatest influence and impact.

Enabling Opportunity

Goal	Target Year	Status	Progress
Hire 5% of Old Navy store entry-level employees from This Way ONward annually	2025	On track	In 2021, 3% 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 10,600 youth have participated since the program launched in 2007, with 1,170 hired in 2021

Enriching Communities

Goal	Target Year	Status	Progress
WATER: Net-positive water impact in water stressed regions by 2050
Support a water-resilient supply chain	2050	Establishing baseline	Establishing baselines and context-based targets
Empower 2 million people - including 1 million women - with access to improved drinking water and sanitation	2023	On track	As of the end of fiscal 2021, we have empowered 1.5 million people
Work toward zero discharge of hazardous chemicals in our supply chain: Eliminate PFC-based finishes from our supply chain	2023	On track	38% of products with water- or stain-repellent finishes were made using non-PFC based finishes. Gap Inc. successfully converted or exited 92% of fabrics with a PFC-based finish
CLIMATE: Carbon neutral across our value chain by 2050
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
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
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
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 and regenerative)	2025	On track	79% 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	10% of polyester was sources from recycled sources
WASTE & CIRCULARITY
Eliminate unnecessary and problematic plastic	2030	Needs attention	Tracking in progress