43 2021 ESG REPORT THE BIG PICTURE EMPOWERING WOMEN ENABLING OPPORTUNITY ENRICHING COMMUNITIES GOVERNANCE 2021 PROGRESS Synthetics All our brands have committed to increasing To help streamline industry approaches and expand best practices in their sourcing of recycled polyester to at raw materials sourcing, Textile Exchange made a beta version of the least 45 percent of polyester used by 2025, Preferred Fiber and Material Matrix (based on the Gap Inc. Preferred with some brands, such as Old Navy, setting Fiber Toolkit, which we donated to Textile Exchange in 2020). an even higher target. We are also an active member of Textile Exchange’s rPET Round We also piloted the SAC’s Higg Product Environmental Module to Table and Biosynthetics Working Group, understand the impacts of selected products and sought to create which help drive industry innovation on robust estimates of environmental impacts where possible. As well more sustainable fibers. We are especially as this, we developed an internal calculator for all our brands that interested in advancing opportunities uses MSI data to provide a more holistic picture of a raw material’s around lower-impact nylon and elastane, climate and water impact for baselining and goal tracking. two critical performance fibers with few existing alternative options. As R&D evolves Natural Fibers on microfiber and microplastics shedding To achieve our goals, we take a portfolio approach to sourcing in garments, we will incorporate the latest materials in order to scale multiple options and develop fiber insights into our preferred fiber strategies. security. In addition, we work with industry partners to increase the traceability of the sustainable cotton options available to our Manufactured Cellulosics brands. For example, the Hong Kong Research Institute of Textiles We have worked closely with our fiber and Apparel Limited (HKRITA) is studying the desired hydroponic suppliers to eliminate production that farming conditions for growing extra long staple (ELS) cotton in Award at the 2022 International Exhibition of Inventions of Geneva, uses wood-derived fibers from ancient, an urban environment to enable a consistent, stable, transparent which recognizes inventions and research around the world under endangered, high conservation value, and supply of cotton in an urban environment, supporting our goals the patronage of the World Intellectual Property Organization high carbon stock forests. We continue for fiber security and traceability. This 2021 project won the Silver (WIPO), the Swiss Government, and the City of Geneva. to work with the CanopyStyle initiative to encourage global suppliers to set policies We were the first brand to sign up to the new U.S. Cotton Trust and complete audits to guarantee they are Protocol (USCTP), in 2020, and are now leading a pilot to deploy not sourcing from ancient and endangered USCTP’s platform for tracing products with U.S.-grown cotton forests in their production. We are GOALS BY 2025 PROGRESS IN 2021 through the supply chain. In partnership with technology provider also partnering with Canopy on next- TextileGenesis™, we successfully traced over 140,000 garments generation fiber sourcing, which prioritizes and will expand on this pilot in 2022. We also joined nine other alternative inputs such as recycled 17 100% of cotton sourced 79% brands on a panel dedicated to advancing traceability with textiles and waste materials. Our aim is to from more sustainable Better Cotton. consolidate our business to only work with sources of cotton was sourced suppliers that receive Canopy’s highest from more sustainable On track sources Our brands are leading the way on natural fibers. Gap has set an “green shirt” ranking, which indicates they ambitious new 2030 goal to source 100% regenerative, organic, meet the criteria for best practices in in conversion to organic, or recycled cotton and Banana Republic protecting forests. At least 45% of polyester has partnered with Arvind Limited in a multi-year investment to sourced from recycled 10% support a farm in India that is transitioning to growing certified We will continue to explore ways to sources (rPET). of polyester was organic cotton. In 2021, Banana Republic also joined the Good develop definitions and a validated ® sourced from recycled Cashmere Standard and Leather Working Group to source approach to adopting regenerative Some Gap Inc. brands have higher goals. sources responsible animal-derived materials. In addition, Banana agriculture and alternatives to fossil On track Republic also partners with the Responsible Wool Standard, while fuel-derived raw materials. Find out Athleta uses the Responsible Down Standard. more in our 2021 SASB Index. 17. Defined as: Better Cotton (formerly BCI), verified U.S.-grown cotton (USCTP), organic, in conversion (to verified organic), recycled, and regenerative.