ecy yd ar l rseat fi 1 0li _J 2do/a , off l h/ ~ select baby gear with G)circle. 0 - - Introduction Environmental Social Governance Indexes and Glossary Product and packaging design Environmental Overview Inside Environmental Investing in Circularity Climate Action Responsible Resource Use As members of the Ellen MacArthur Foundation and a signatory of the New Plastics Economy and the U.S. Plastics Pact , we look to eliminate problematic and unnecessary plastic waste through reduction and innovation. We have made 2025 commitments to: • Eliminate problematic plastics in owned brand packaging. • Make owned brand packaging with 20% PCR plastic content . 11 • Design 100% of owned brand packaging to be recyclable, compostable or reusable. Progress against our goal to reduce the total volume of virgin plastic packaging in our owned brand Food, Beauty and Essentials businesses by 20% by 2025 will be measured against our total plastic packaging baseline volume in these categories for 2020 (45.1 metric tonnes) by 2025. To enhance our efforts, Target became a supporting partner of the Closed Loop Partners Composting Consortium in 2021. The initiative aims to advance recovery of compostable packaging, convening a cross-industry working group to create a framework for strengthening U.S. composting infrastructure and systems. We also joined the Roundtable on Sustainable Biomaterials to gain access to educational information on biomaterials. As digital sales continue to grow, we are also improving our transit packaging materials, including replacing bubble wrap with a 100% recyclable expanded paper cushioning wrap for all products shipped from stores starting in 2020. In November 2021, our packaging team identified an opportunity to replace unrecyclable PET trays and packaging used for our Wondershop ornaments with recyclable corrugate material. This change is expected to impact our 2022 Winter Holiday assortment, eliminating over 200 metric tonnes of plastic. Guest and supplier engagement Achieving a more circular economy requires collaboration, and we maintain several channels for engaging guests and suppliers in sustainability efforts. As a founding partner of the Consortium to Reinvent the Retail Bag , in 2021 we launched pilots of several innovations to replace single-use plastic bags in three Target stores across Northern California. Working alongside the Consortium’s two other founding partners — CVS Health and Walmart — the pilots sought to refine four of nine winning solutions from the Consortium’s global Beyond the Bag innovation challenge. The findings will inform future work to eliminate and replace single-use plastic bags with reusable alternatives. We continue to use the How2Recycle label on our owned brand packaging to make recycling options clearer for guests. Circular economy Metric FY2021 FY2020 FY2019 Framework Cumulative number of team members we trained on circular design since 2018 3,106 2,422 1,632 Recycled polyester used to manufacture primary products (metric tonnes) 63,600 38,700 34,800 301-2 Apparel and accessories 41,700 23,100 20,300 Home and hardlines 21,900 15,600 14,500 Annual amount of waste recycled from car seat recycling program (million pounds) 7.7 3.3 7.0 301-3 GRI GRI 11 We set our commitment to PCR in 2019 but acknowledge that some states will have higher thresholds for PCR content by 2025. 2022 Target ESG Report 16