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disclosure index

Environmental Data

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GHG Emissions (metric tons CO2e)
2023
2022
2021
Scope 1 Emissions11
7,433
7,042
8,118
Scope 2 Emissions market-based12
35,205
29,017
41,760
Scope 2 Emissions location-based13
33,840
34,818
Scope 3 Emissions14
767,069
1,029,075
1,291,473
Category 1 – Purchased goods and services
665,040
868,555
Category 3 – Fuel and energy-related activities
7,699
10,131
Category 4 – Upstream transportation and distribution
44,295
83,247
Category 5 – Waste generated in operations
7,003
77,289
Category 6 – Business travel
1,127
251
Category 7 – Employee commuting
12,976
13,953
Category 12 – End-of-life treatment of sold products
28,928
45,220
Total Absolute Emissions15
809,707
1,065,035
1,341,351
Emissions Intensity (per net sales)
260.41
331.75
384.78
Emissions Intensity (per million units produced)
1,473.98
1495.71
1,660.36
Energy Consumption
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2023
2022
2021
Total Energy Consumption for Operations (MWh)16
133,644
133,616
139,320
Energy Intensity (kWh per square foot)17
18.24
18
15
Waste (tons)
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2023
2022
2021
Waste from Direct Operations18
28,868
26,939
27,781
Distribution Centers
Landfilled
492
385
360
Recycled
5,830
3,692
3,448
Stores19
Landfilled
8,985
9,731
8,907
Recycled
13,471
13,027
15,066
Corporate Office
Landfilled
56
72
-
Recycled
34
32
-
Diversion Rate20
Rate
67%
62%
67%
Water Use (million gallons)
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2023
2022
2021
Total water use (direct and indirect)
490
799
1,551
Direct Operations21
62
58
36
Distribution Centers
12
7
7
Corporate Offices
3
4
0.1
Retail Stores
46
47
28
Indirect Operations22
428
741
1,516
Intensity Metrics
Water Intensity: Direct Only (per million $ revenue)
0.02
0.02
0.01
Water Intensity: Direct and Indirect (per million $ revenue)
0.17
0.25
0.43
Certain data presented have not been audited or assured. See the “Independent Limited Assurance Statement” for a description of the scope of the assurance work performed. Additionally, while we attempt to ensure consistent methodologies for each inventory year, Carter’s cautions against year-over-year comparison as inconsistency in data, particularly as it relates to Scope 3 and indirect operations, may still be present.
11 Carter’s GHG inventory utilizes the operational control approach. As such, reported “Scope 1 emissions” are direct emissions from sources controlled by Carter’s and include stationary and mobile use of fuels such as natural gas, and propane, as well as estimated fugitive emissions from refrigerants used in HVAC equipment. Where possible, direct consumption values were used. However, in instances where consumption was unknown or only partially reported, estimations were made based on average consumption values of similar locations per square foot. 12 For market-based emissions, Carter’s used emission factors from the latest release of Green-e residual mix (Green-e 2022, updated Oct 2022). Market emission factors are not available for many international facilities. 13 The GHG Protocol defines Scope 2 emissions as indirect emissions from the use of purchased electricity and chilling water. Following the GHG Protocol, Carter’s elected to report Scope 2 emissions using both the location and market-based approaches. Carter’s used emissions factors from the latest release of the EPA eGrid emissions factors (eGrid2021, released Jan 2023) to calculate location-based emissions. 14 Scope 3 emissions are from sources not owned or directly controlled by Carter’s, but are related to Carter’s activities. The GHG Protocol defines 15 Scope 3 categories. Of these categories, the following are included in the reported Scope 3 value: purchased goods and services, upstream transportation, employee commuting, business travel, fuel and energy-related activities, end-of-life treatment of sold products, and processing of waste (landfill waste, recycling, and wastewater). As is commonly understood in the GHG inventory process, Scope 3 emissions tend to be the most difficult to quantify accurately and may require significant estimations due to the complexity of global supply chains. 15 Total absolute emissions refer to the total GHG emissions released into the atmosphere due to Carter’s activities, as defined by the World Resource Institute GHG Protocol. The total absolute emissions presented here are the sum of the Scope 1, Scope 2 (market-based), and Scope 3 emissions shown in the lines below. 16 The term “operations” refers to those directly controlled by Carter’s. Values include purchased electricity and fuels. Sources are the same as those listed in “Scope 1 emissions.” Where possible, the calculation used direct consumption values. However, in instances where consumption was unknown or only partially reported, estimations were made based on average consumption values of similar locations per square foot. This value also includes fuel (natural gas, propane). 17 The reported value is calculated from reported and estimated electricity and fuel usage. Correspondingly, the per-sq-ft number include fuels.
18 “Direct” refers to waste generated at Carter’s operated distribution centers and retail stores. Where possible, Carter’s waste inventory used direct waste generation values provided by each location. However, in instances where waste generation was unknown or only partially reported, Carter’s made estimations based on the average per square foot waste generation value of similar locations and historical data. Unlike water and energy, indirect waste generation values from suppliers are not reported due to uncertainty in data quality. Carter’s is working to better understand the waste generation profile of suppliers. 19 Due to the location and lease structure of stores, it is difficult for every store to report an annual waste generation value. Between 2019 and 2023, only 10-15% of stores have reported waste values. For stores that could not report waste values, Carter’s extrapolated waste and recycling rates submitted by the stores that were able to track this information. Carter’s is working to improve waste tracking at all locations. 20 Diversion rate equals waste sent to recycling divided by total waste generated.
21 “Direct” refers to Carter’s owned operations (e.g., distribution centers, retail stores, corporate offices). Where possible, Carter’s water inventory used direct consumption values. However, in instances where consumption was unknown or only partially reported, Carter’s made estimations based on the average water consumption value of similar locations per square foot. 22 “Indirect” refers to the operations of Carter’s suppliers. Due to the uncertainty of supplier information, water use can be different year over year. Carter’s is exploring the reasons for this and is committed to improving data quality within the Company’s environmental reporting framework and supply chain. Outliers in data have been excluded based on assumptions due to potential errors in billing by utility companies.