0 Introduction Environmental Social Governance Indexes and Glossary Community Social Overview Inside Social impact Supporting Our Team Members Board and Workplace Diversity Products and Guest Experiences Built on Fairness and Equity Serving and Strengthening Communities Target Foundation We envision a world where all families and communities have the resources they need to determine and realize their own joy in life. Through the Target Foundation, we enable shared prosperity and opportunity by upholding equity and inclusion in our hometown, across the country and around the world. Guided by our commitment to community, we invest in leaders, organizations, coalitions and networks that expand economic opportunity equitably, enabling communities to determine their own futures. By 2025, Target and Target Foundation plan to evolve our philanthropic practices and place- based solutions to invite participation from communities. The Target Foundation is leaning into trust-based philanthropy to drive systems change, with values rooted in advancing equity, shifting power and building mutually accountable relationships. The Foundation’s capabilities allow it to work toward long-term solutions across complex and interconnected economic issues, grounded in the voices of BIPOC as well as Global South communities and organizations. The Target Foundation also closed on its first- ever Program-Related Investment (PRI) to the Minnesota Inclusive Growth Fund (MIGF) . MIGF launched late last year to serve as a recovery aid for small businesses in Minnesota that have experienced direct economic hardship as a result of the COVID-19 pandemic and the civil unrest following the murder of George Floyd. The goal of MIGF is to connect small businesses to affordable, flexible working capital loans to rebuild and reinvest in their businesses. Our Target Foundation work supports three focus areas: Focus area Engagement highlights Hometown: Advancing racial equity and shared prosperity in the Twin Cities of Minneapolis and St. Paul National: Building financial stability and economic opportunity for working people and their families in a rapidly changing economy Global: Improving economic opportunities for families in emerging economies to sustain themselves and their communities for the long term The Mni Sota Fund is an Urban Native Community Development Financial Institution that provides training and access to capital to promote homeownership, entrepreneurship and financial capabilities among American Indian men and women throughout Minnesota. Founded in 2012, the Mni Sota Fund was created in response to community conversations about key tools missing from the Native community development ecosystem in the Twin Cities. Target Foundation’s grant helps the Fund in creating a thriving ecosystem of American Indian entrepreneurs throughout the Twin Cities with a vibrant Native-business district on the American Indian Cultural Corridor, as well as widespread American Indian homeownership and financial empowerment. We support the work of National Coalition for Asian Pacific American Community Development (National CAPACD) , a group of local community organizations that advocate for low-income Asian American and Pacific Islander (AAPI) communities and neighborhoods. The organization strengthens and mobilizes its members to build economic power and further its vision of economic and social justice for all. Target Foundation’s funding supports National CAPACD in a number of areas, including building capacity; supporting local community-based organizations (CBOs) to foster financial stabilization and well-being for low- to moderate-income AAPIs; and building the capacity of CBOs to engage in broader systems change work. We’re proud to support the work of Friendship Bridge , a nonprofit social enterprise creating opportunities that empower Guatemalan women to build a better life. Target Foundation’s grant supports its Bridge to Success program , which delivers intensive business development training and specialized financial services to women entrepreneurs with the goals of increasing resilience, empowerment and community leadership, and accelerating economic opportunities for the participants and their communities. Photo credit: Friendship Bridge, Target Foundation partner 2022 Target ESG Report 48