0 Introduction Environmental Social Governance Indexes and Glossary Environmental Overview Greenhouse gas emissions Inside Environmental Investing in Circularity Climate Action Responsible Resource Use We continuously strive to reduce the carbon footprint of our direct operations and supply chain, and have developed an approach to reducing emissions across our enterprise. Partnering with suppliers on emissions reduction strategies We have been working for many years with various third-party partners on initiatives to reduce scope 3 emissions and track progress against our goals. The production, distribution, use and disposal of products are responsible for most of our GHG emissions, so we have set several targets to reduce emissions across our supply chain. Through our climate supplier engagement program, we continue to support suppliers as they calculate their carbon footprint, set science-based emission reduction targets, track progress and drive collaborative action. Around 32% of our top 80% of suppliers by spend had set emissions reduction targets by end of 2021. Our emissions impacts Scope Definition Our impact 1 Direct emissions Target operates a variety of stores, offices, supply chain facilities, data centers and off-site warehouses. These sites create direct emissions through the activities under their control. They also consume electricity, which generates indirect emissions during its production. Together, scope 1 and 2 emissions account for approximately 3% of our emissions footprint. 2 Indirect emissions 3 Indirect emissions (upstream and downstream value chain) Our upstream and downstream value chain activities cover manufacturing, product distribution, business travel, guests using our products and other indirect sources. These types of indirect emissions account for around 97% of our GHG emissions. Specifically, goods and services that we purchase account for approximately 47% of our scope 3 emissions, and the remaining 53% of scope 3 emissions come from use of sold products, transportation and other activities. To date, our suppliers have reported net reductions in their scope 1 and 2 emissions equivalent to 5.3% of the baseline established in 2017. We use the Higg Facility Environmental Module (FEM) and CDP to capture allocated emissions reductions from our suppliers, and these reductions were reported from third-party verified datasets or were validated internally by Target. In 2020, the number of suppliers reporting on their 2019 reductions increased by over 70%. Our suppliers are in the process of completing their 2021 data submissions. The business environment in 2021 impacted our growth and therefore our emissions. Total sales increased by $12.2 billion, from $92.4 billion in 2020 to $104.61 billion in 2021, which contributed to a 4.5% rise year-over-year in scope 3 emissions. As we work on our ambitious climate goals and partner with our suppliers to make reductions, we expect to see those efforts reflected in our future emissions performance over the medium and long term. Key upstream and downstream interventions • Regenerative agriculture: We co-funded a five-year, $8.5 million project with Cargill, McDonald’s and the U.S. Department of Agriculture to help Nebraska farmers advance soil health. • Responsible sourcing: With multiple partners and stakeholders, Target is working to meet responsible sourcing and climate change commitments for palm oil, forest products, cotton, coffee and seafood. • Sustainable logistics: We seek opportunities to work with third-party logistics providers to improve the efficiency with which they move our products. • Packaging: In 2020, we announced ambitious 2025 commitments to eliminate problematic plastics in packaging with the potential to reduce energy use and GHG emissions. • Guest engagement: The use of sold products accounts for approximately 35% of our scope 3 carbon emissions — we have an opportunity to educate our guests on reducing emissions, such as through the purchase of ENERGY STAR- certified products. Read more about our investments into supply chain improvements . 2022 Target ESG Report 20