0 Introduction Environmental Social Governance Indexes and Glossary Environmental Overview Responsibly sourced commodities Inside Environmental Investing in Circularity Climate Action Responsible Resource Use We drive efforts internally and through our supply chain to source materials and commodities in increasingly responsible ways. Our standards, goals and commitments include: • By 2030, Target intends for the leading raw mat erials (e.g., forest products, cotton, etc.) that go into our owned brand products to be 100% recycled, regenerative or sustainably sourced. • Being committed to sourcing 100% of our cott on more sustainably for owned and exclusive brand products by 2022 by participating in programs designed to improve cotton growing practices and working conditions. 33 • Sourcing all owned brand paper-based retail packaging fr om sustainably managed forests by 2022. • Rolling out implementation of our Forest P roducts Policy to Threshold and Smith & Hawk en brands by the end of 2022. 34 • Our seafood sustainability commitment to include best pr actice requirements for the use of transshipment in tuna supply chains. • Implementing an animal welfare policy; moving t o source only cage-free shell eggs, pending available supply, by 2025; and by year-end 2022, aim to have 100% of Good & Gather brand fresh pork produced using open pen gestation systems. Good & Gather currently represents the vast majority of all fresh pork sold at Target. As we look to 2022 and beyond, we will continue t o encourage national brand pork suppliers to further reduce and eliminate the number of days sows are housed in gestation crates. Find updates related to this goal and other food animal welfar e commitments on our website. Standards and certifications Third-party standards help provide confidence in the practices used in our supply chain and help encourage positive change. To guide sourcing decisions for our owned brands, our suppliers utilize certifications including: • Forest Stewardship Council (FSC) • Marine Stewardship Council (MSC) • Aquaculture Stewardship Council (ASC) • Best Aquaculture Practices (BAP) • Roundtable on Sustainable Palm Oil (RSPO) • Fair Trade USA We communicate sustainability-related information of int erest to our guests using clear icons on product labels to highlight such certifications. Forestry products In our forestry supply chains, we use chain-of- cust ody certifications wherever possible to confirm that we source from well-managed forests. We prioritize FSC standards and currently have 1,500 FSC-certified owned brand items. We recently participated in a pilot study with auditing and risk mitigation or ganization Preferred by Natur e. The study aimed to identify ways t o minimize forest product risk where chain-of- custody wood supplies are not available. Read more about our Forest Products Policy . Palm oil Since 2019, our suppliers’ procurement of RSPO physically cer tified (Mass Balance, Segregated or Identity Preserved) palm oil, palm kernels and derivatives increased by 37%, and now spans 3,000 products in relevant owned brand categories. 35 We have set a goal of using RSPO physically certified palm oil, palm kernels and derivatives in relevant owned brand product categories, and aim to trace palm oil to mill level by end of 2022. Working closely with our partners at the Earthworm F oundation, we achieved traceability to the mill level for 76% of our palm oil supply in 2021 and ar e working to trace the remaining volumes by the end of 2022. Transparent supply chains With retailers increasingly keen to understand how and where products are made, Target is accelerating its implementation of traceability programs. We are initially focusing on cotton due to its prevalence in our assortment, the regulatory requirements surrounding cotton and our commitment to source cotton more sustainably for owned brand and exclusive national brand products by 2022. Eventually, we aim to achieve full visibility of where the cotton we use is grown, collaborating with farmers, brands, other retailers and organizations that share our commitment. We also intend to track and validate our progress. 33 Target does not accept products containing Turkmen cotton or cotton originating from the Xinjiang province of China, regardless of where they were produced. 34 2020 was a goal year for these two brands and while much was accomplished, the goal of 100% was not realized. However, pursuit of this goal did not end with the passing of the goal date. As of the end of 2021, the composite of these two br ands has reached 92%. 35 Owned brand food, household cleaning, personal care, baby care, beauty, cosmetics and candle products. 2022 Target ESG Report 25