37 2021 ESG REPORT THE BIG PICTURE EMPOWERING WOMEN ENABLING OPPORTUNITY ENRICHING COMMUNITIES GOVERNANCE By the end of 2021, 99 percent of our Total savings reached 13.8 billion liters in RESOURCE Tier 1 and 91 percent of our strategic 2021 thanks to continued partnerships with Tier 2 suppliers used the Sustainable fabric mill and wet-processing partners. EFFICIENCY AND Apparel Coalition’s Higg Index 3.0 Facility For example, we’ve saved 1.7 billion liters Environmental Module self-assessment of water since 2019 through a partnership to communicate their water and energy with Arvind Limited’s Naroda denim mill, MANUFACTURING use from 2020, along with chemicals which uses reclaimed wastewater from the and waste management; 64 percent city of Ahmedabad, India. (463 facilities) verified their responses. Across our manufacturing, we aim to use all In 2021, wastewater quality tests revealed RAW MATERIALS AND PRODUCT resources in a sustainable way, ultimately that out of 53 priority denim laundries, creating more while using less. 94 percent achieved Foundational level As our brands continue to reduce or better for all Conventional parameters their individual impacts, they are also We are working to map our supply chain further upstream to better and had no detections of ZDHC MRSL contributing to Gap Inc.’s overall water understand our water impacts at the beginning of our product life (Zero Discharge of Hazardous Chemicals strategy and long-term business goals. cycle. This enables us to connect our manufacturing footprint with Manufacturing Restricted Substances For instance, they are reducing their the geographical areas where raw materials are grown. 13.8B List) parameters. water impacts through the expansion of programs such as Washwell™ for denim, Many water issues are based on local context, and with better liters of In total, 89 facilities have participated and which reduces the water used in garment visibility, we aim to enhance transparency, set more ambitious water saved completed our resource efficiency programs. finishing by at least 20 percent compared targets, and improve water impacts across our supply chain. since 2014 As COVID-19 continued to affect our supply to conventional wash methods. Gap We have mapped all preferred wet-processing facilities — chain partners, we offered flexible and brand pioneered this technology in 2016 representing 100 percent of our business for Tier 1 and about lower-cost ways to join our programs and and all Gap jeans featured in the Fall and 65 percent for Tier 2 — against the WWF Water Basin Risk report their results. Find more about our Holiday 2021 lines were made through the Assessment to help us prioritize areas of focus. partnerships to help suppliers address Washwell™ program. emissions in our Scope 3 Emissions section. Through our Mill Sustainability Program, we engage our strategic For more information on our approach to mills using key industry tools and initiatives to help us meet our In 2020, we surpassed our goal to save water-saving materials selection, see p. 42. long-term commitments. All our strategic mills must participate, 10 billion liters of water from a 2014 baseline. enabling us to align our approach with industry standards, increase transparency, and drive innovation. WATER SAVINGS PROGRAMS IN KEY SOURCING COUNTRIES We also work with the Apparel Impact Institute (Aii) on platforms and Country Programs pilots that have helped facilities reduce water use. And through Natural Resources Defense Council Clean by Design our Water Quality Program (WQP), we actively monitor and improve 1 China wastewater quality at denim laundries. The program has evolved China Mill Efficiency Program to include chemicals management, a key component of water quality Arvind Water Partnership 1 (see p. 38). 2 India 4 India Water Partnership Vietnam Improvement Program 2 5 2021 PROGRESS 3 Vietnam 3 Race to the Top In 2021, we began working with WWF and our preferred wet- 4 Pakistan IFC Partnership for Cleaner Textile (PaCT) processing suppliers to set context-based water targets and 5 Bangladesh PaCT develop water-reduction strategies for their facilities.