40 2021 ESG REPORT THE BIG PICTURE EMPOWERING WOMEN ENABLING OPPORTUNITY ENRICHING COMMUNITIES GOVERNANCE 2021 PROGRESS Addressing Emissions: Scope 1 and 2 Apparel Impact Institute (Aii): Our Retail stores generate approximately partnership with Aii and its predecessor We are exploring climate adaptation strategies 85 percent of Gap Inc.’s direct (Scope 1 (Clean By Design) has resulted in an that mitigate the financial and physical impacts and 2) GHG emissions and are the focus emissions reduction of 56,368 metric of climate change while building business and of our operational energy program. We tons of carbon dioxide equivalents, community resilience. These include renewable continue to invest in energy-efficiency helping support our Scope 3 SBTs. programs, and have rated all stores to In 2020, Gap Inc. joined Aii’s new Carbon energy projects within our supply chain and prioritize retrofit projects and established Leadership Program, through which five accelerating the transition to raw materials protocols for new buildings. of our facilities have completed a pilot with a lower carbon footprint, such as recycled Generated over to understand their emissions reduction polyester (see more on p. 42). Our renewable energy projects, power targets and plans. 80,000 purchase agreements, and onsite The ongoing effects of COVID-19 have slowed progress on installations generated over 80,000 We also work with Aii, IDH (The megawatt hours of megawatt hours of clean energy in 2020. Sustainable Trade Initiative), and CEIA our Scope 3 supply chain energy-efficiency programs, as clean energy in 2020. These projects make us one of the largest (Clean Energy Investment Accelerator) we paused them to reduce the cost burden to our suppliers. purchasers of clean energy in the U.S. alongside other brands to identify However, our ongoing partnerships are driving meaningful retail industry. rooftop solar opportunities for facilities reductions across our Asia-based Tier 1 and Tier 2 facilities and identifying future areas of action. in Vietnam Addressing Emissions: Scope 3 Our 2021 GHG data and progress toward our 2030 goals will be The majority of our climate impacts cKinetics: We have been working with available later this year and shared on our website (ESG Resources). lie within our supply chain emissions, cKinetics to identify top mills and vendors which are directly tied to our production. to get clarity on their emissions reduction We work closely with our Product targets and strategies. We aim to collect Development teams and suppliers to more accurate facility-level data so that address material and facility emissions. we can create more robust strategies to In addition to implementing energy- help our suppliers set SBTs and support efficiency programming across our our own goals. supplier base, we are also engaging our strategic suppliers to commit to Schneider Electric: We worked with emissions reduction strategies and Schneider Electric in 2021 to conduct explore renewable energy opportunities. renewable energy opportunity assessments in key supply chain markets A strong part of our approach to reducing to identify strategies for collaboration Scope 3 emissions is partnerships with with our vendors in those regions. industry organizations that work in our key supplier markets: