66 2021 ESG REPORT THE BIG PICTURE EMPOWERING WOMEN ENABLING OPPORTUNITY ENRICHING COMMUNITIES GOVERNANCE Unit of Topic Accounting Metric Category Measure Code Data Reference Labor Conditions Percentage of (1) Tier 1 Quantitative Percentage CG-AA-430b.1 * 83 percent of Tier 1 branded apparel suppliers that were active for the in the Supply supplier facilities and (%) full year were audited to our COVC during the fiscal year. Chain (2) supplier facilities • 68 percent of audits were conducted by a third-party assessor, ILO-IFC beyond Tier 1 that have Better Work and SLCP. been audited to a labor • Facilities with a consistently low non-conformance rate may be assessed on code of conduct, a biennial basis; all facilities are audited prior to initial production. (3) percentage of total audits conducted by a Suppliers beyond Tier 1 audited to COVC third-party auditor • N/A As part of our Mill Sustainability Program, we communicated to our entire mill base our expectations of their social and environmental performance, which are requirements of doing business with us. % of audits conducted by third-party % Tier 1 branded assessor (ILO-IFC % of suppliers suppliers audited Better Work and beyond Tier 1 Year to COVC SLCP) audited to COVC 2019 91 34 N/A 2020 81 71 N/A 2021 83 68 N/A Priority non- Quantitative Rate CG-AA-430b.2 We use a color-coded system to rate each facility’s performance. High- Sustainability conformance rate and performing facilities with few violations, none of which were critical, are rated Webpages: associated corrective green, average performers are yellow, and those that need to address one or Assessment and action rate for more serious issues are red. As of fiscal 2021, fewer than 1 percent of facilities Remediation suppliers’ labor code of received red ratings during assessments against our COVC. conduct audits For issues open as of 2/1/2021, 84 percent of corrective action plans were resolved by 2/1/2022. 2/1/2021 5/1/2021 (3 months) 8/1/2021 (6 months) 2/1/2022 (1 year) Sourcing # of open # of open % # of open % # of open % Country issues issues resolution issues resolution issues resolution Bangladesh 231 200 13 170 26 45 81 Cambodia 309 177 43 127 59 40 87 China 209 103 51 44 79 13 94 Guatemala 52 0 100 0 100 0 100 India 550 509 7 383 30 113 79 Indonesia 155 87 44 72 54 50 68 Pakistan 78 78 0 62 21 6 92 Sri Lanka 69 68 1 59 14 10 86 United States 0 0 - 0 - 0 - Vietnam 694 560 19 284 59 90 87 Other 133 114 14 110 17 36 83 Grand Total 2480 1896 24 1311 47 403 84