0 Introduction Environmental Social Governance Indexes and Glossary Environmental Overview Water use and management Inside Environmental Investing in Circularity Climate Action Responsible Resource Use We’re finding new ways to manage water sustainably, putting the needs of people, communities and the planet at the heart of how we work to deliver on our Target Forward strategy. Water is essential to our agricultural materials for food, textile products and manufacturing, and in the operation of every Target facility. Access to clean water is also a fundamental need for guests and communities all along our value chain, and we are committed to help build water resiliency in the areas where we operate so this need can always be met. Identifying and managing water risks When developing our management strategy, we first identify water-related risks 40 that may have a financial or strategic impact on our business and/ or communities where we operate. We focus on addressing high-priority areas, products and processes to safeguard freshwater quality, quantity and access. In the U.S., this is particularly important along the West Coast — where water scarcity 41 is a significant issue — and in the Northeast where our greatest impacts relate to water quality. Since 2018, we have been guided by our freshwater stewardship approach . Annually, we use the WRI’s Aqueduct tool to understand water risk for both domestic and international facilities. One key finding from our latest assessment was that quantity and quality are issues we should continue to monitor and work to mitigate through increasingly robust measures. In domestic locations, we are using the insights from this assessment to inform our latest water goals and to accelerate efforts in the highest-risk watersheds, identifying priority areas of impact based on withdrawals in water-stressed 42 areas. This will help us focus efforts at facilities where there’s current and/or future potential for higher water risk. In our manufacturing supply chain, this information is incorporated into a hotspot mapping exercise, alongside Higg FEM data. This helps us assess their environmental footprint and prioritize which supply chain locations to focus on for programs like Apparel Impact Institute (Aii)’s Clean by Design. Advancing Target Forward through water security Securing water resources is a key consideration across both our sustainable brands and waste elimination pillars. Only by conserving water sources can we deliver sustainably sourced materials and operations that protect, sustain and restore nature. We draw on key partnerships to direct efforts and reduce our impact, with a strategic focus on: • Food and fiber in our raw material supply chain. • Textile and apparel factories in priority watersheds in our manufacturing supply chain. • Water risk reduction and stormwater management in direct operations, supporting resilience and collective water security 43 in the communities we serve. In identifying water risks and water-stressed regions where we operate, we will begin to set new value chain goals that reflect the context of our water stewardship approach, as well as our understanding of setting targets around the nexus between climate, water and biodiversity. Water use in our operations While we work on developing new science- based contextual water goals in connection with Target Forward, we continue to operate under the principles originally outlined in our Freshwater Stewardship Approach to guide our ongoing work. Direct operations Across our stores, supply chain facilities and headquarters locations, we’re acting to reduce water scarcity and improve water quality outcomes. Target is recognized for maintaining best practices in managing stormwater and the quality of water leaving our sites. Many of our facilities have stormwater management systems in place, and we partner with local organizations to improve infrastructure and benefit local watersheds. We are also refining our salt application practices to reduce the amount of chloride entering local water bodies. Target has many sites where salt is used to maintain safety during adverse weather conditions for guests and team members during the winter. To address any impacts the salt may have on local lakes and rivers, we refreshed our training at our stores, supply chain facilities and other sites that experience snow events. The training, which includes application techniques and disposal methods, is based on smart salting techniques developed by the Minnesota Pollution Control Agency . We will continue to evolve our approach as new practices, techniques and equipment are developed. 40 Water risk refers to the possibility of an entity experiencing a water-related challenge (e.g., water scarcity, water stress, flooding, infrastructure decay, drought). Source: CEO Water Mandate 41 Water scarcity refers to the volumetric abundance, or lack thereof, of freshwater resources. Source: CEO Water Mandate 42 Water stress refers to the ability, or lack thereof, to meet human and ecological demand for freshwater. It considers several aspects, including water availability, quality and accessibility. Source: CEO Water Mandate 43 Water security refers to the capacity of a population to safeguard sustainable access to adequate quantities of acceptable quality water for sustaining livelihoods, human well-being and socioeconomic development, for ensuring protection against water-borne pollution and water-related disasters, and for preserving ecosystems in a climate of peace and political stability. Source: IPCC WGII Sixth Assessment Report 2022 Target ESG Report 28