0 G)ze Investing in Circularity Product and packaging design We are enhancing the environmental performance of our products and packaging, leveraging our size and scale to innovate lower- impact solutions, including alternatives to plastic. We have plans for 100% of our owned brand products to be designed for a circular future by 2040. We also plan to: • Offer two circular owned brands by 2025. • Reduce annual total virgin plastic by 20% in our owned brand Food, Beauty and Essentials businesses by 2025, measured against our total plastic packaging baseline volume in these categories in 2020. • Have 100% of our owned brand plastic packaging be recyclable, compostable or reusable by 2025, eliminating problematic plastics in owned brand packaging. • Make owned brand packaging with 20% post- consumer recycled (PCR) plastic content. We look to embed closed loop principles right from the design stage. This means prioritizing the use of regenerative, recycled and sustainably sourced materials , and creating products that are durable, recyclable and easily repaired or have modular component parts. Promoting circular design To harness the power of our team, we created and implemented a Circular Design Guide — a web-based training hub for team members to learn about circular design and its impact. In addition, our Circular Design Calculator helps team members determine key factors when choosing materials. The tool was leveraged in 2021 to help our supply chain team create a baseline of the water and greenhouse gas (GHG) impacts of its shipping materials. These resources have supported our work across various areas, including: • Our Universal Thread line, where we are developing denim jeans to contribute to a closed loop model, using materials such as recycled cotton and recycled polyester. • The rethinking of Guest Service GiftCards (GiftCard with Purchase & Merchandise Return) designed by our prepaid team, replacing single-use plastic with a durable, paper-based alternative. The revamped GiftCards launched in select stores in March 2022. • The fixtures used for the launch of Ulta Beauty at Target . Steel, aluminum and UV-stable plastics were selected for their reusability, and component sections were made easy to separate to aid repair or replacement. Introduction Environmental Social Environmental Overview Inside Environmental Investing in Circularity Climate Action Responsible Resource Use As a stakeholder in the CircularID Initiative and the development of the Circular Product Data Protocol , we conducted an early feasibility test using digital identities, in partnership with EON in 2021. The test, using Target’s owned brand Wild Fable, enabled us to understand the process and explore future scalability and key performance indicators (KPIs) for the use of digital identities for Target products. Read more about our circular design principles . Alternative materials and recyclable plastic packaging To address concerns about plastic packaging impacts, we’re working to reduce virgin plastic use. Key to our progress is pre-competitive collaboration across the supply chain, as well as exploration of alternative materials that considers the full environmental implications of substitutes. Governance Indexes and Glossary Target in action Target Zero In February 2022, we launched Target Zero , an initiative to help guests find products in more sustainable packaging. The collection features products with packaging designed to be refillable, reusable or compostable, or made from recycled content or materials like aluminum, steel or glass. The initiative launched with 10 Beauty brands and 65 products in stores, as well as several hundred items across Beauty, Personal Care and Household Essentials on Target.com . The momentum was maintained in April, with new products across our owned brand Everspring, including concentrated items in minimal packaging. 2022 Target ESG Report 15