result

disclosure index

Global Reporting Initiative (GRI) Index

Statement of Use

Carter’s Inc. has reported in accordance with the GRI standard for the period January 1, 2023 through December 31, 2023.

GRI 1 Used

GRI 1: Foundation 2021

2: General Disclosures

Location

2-1

Organizational details

About This Report Carter’s, Inc. 2023 Form 10-K

2-2

Entities included in the organization’s sustainability reporting

Carter’s, Inc. 2023 Form 10-K

2-3

Reporting period, frequency, and contact point

About This Report We intend to continue to publish a CSR report annually. Questions and comments may be addressed to CSR@carters.com.

2-4

Restatements of information

We now have better visibility and more accurate data regarding our diverse supplier spend and have updated our 2022 value to reflect these findings. Further information can be found in our Diversity and Inclusion section.

2-5

External assurance

Our performance disclosures on Scope 1 GHG emissions, Scope 2 GHG emissions, water, and waste for 2021, 2022, and 2023 have undergone independent limited assurance carried out by a third party. See our Independent Limited Assurance Statement

2-6

Activities, value chain, and other business relationships

About Carter’s, Carter's at a Glance About Carter’s, Our Family of Brands About Carter’s, Our Global Value Chain Planet, Energy and Emissions Product, Responsible Sourcing

2-7

Employees

People, Diversity & Inclusion

2-8

Workers who are not employees

Workforce Data

2-9

Governance structure and composition

About Carters, ESG Governance Carter’s Inc. 2023 Annual Report

2-10

Nomination and selection of the highest governance body

Carter’s, Inc. 2023 Annual Report

2-11

Chair of the highest governance body

Carter’s, Inc. 2023 Annual Report

2-12

Role of the highest governance body in overseeing the management of impacts

About Carter’s, ESG Governance Our Board of Directors provides oversight of management and our business.

2-13

Delegation of responsibility for managing impacts

About Carter’s, ESG Governance We have developed a strategic plan that reflects, in part, the goals and initiatives disclosed in this report. The CSR team is responsible for the execution of our Raise the Future strategy, which is based on our Company purpose, and the ESG Council meets quarterly to review progress. Because the SVP, General Counsel, Secretary, CSR, and Chief Compliance Officer serves on the Company’s Leadership Team, other executives receive information and updates regularly.

2-14

Role of the highest governance body in sustainability reporting

About Carter’s, ESG Governance Our SVP, General Counsel, Secretary, CSR and Chief Compliance Officer, reports directly to our Chairman and CEO.

2-15

Conflicts of interest

The Company has a Conflicts of Interest and Gift Policy that is communicated to employees annually. The policy includes detailed requirements for reporting violations or suspected misconduct, including, but not limited to, anonymous reporting telephonically via phone numbers provided for various locations where the Company and/or its distributors operate, as well as anonymous reporting via dedicated (and attended) email addresses and online via the Carter's Ethics Hotline. Upon receipt of a report of a suspected violation of the policy, the Company is required to launch a prompt and thorough investigation, and the Company will, as needed, escalate any such investigation to the Audit Committee of the Board of Directors.

2-16

Communication of critical concerns

There were no critical concerns reported in 2023. When there are critical concerns, the Audit Committee and, if needed, the Board are informed pursuant to established reporting lines, processes, and procedures, including, but not limited to, the Company's Fraud Policy."

2-17

Collective knowledge of the highest governance body

About Carter’s, ESG Governance The Board’s Nominating and Corporate Governance Committee provides oversight of the Company’s environmental, social, and governance (ESG) initiatives through quarterly or more frequent reviews of progress. These reviews include assessments of ongoing efforts related to climate change, global supply chain compliance, diversity and inclusion (D&I), and product sustainability, among other issues.

2-18

Evaluation of the performance of the highest governance body

Carter’s, Inc. 2023 Annual Report

2-19

Process to determine remuneration

Carter’s, Inc. 2023 Annual Report

2-20

Carter’s, Inc. 2023 Annual Report

2-21

Annual total compensation ratio

Carter’s, Inc. 2023 Annual Report

2-22

Statement on sustainable development strategy

A Message from Our CEO

2-23

Policy commitments

Corporate Social Responsibility Policy

2-24

Embedding policy commitments

Product, Responsible Sourcing

2-25

Process to remediate negative impacts

Product, Responsible Sourcing

2-26

Mechanisms for seeking advice and raising concerns

We encourage anyone who has concerns about the behavior of any employee—including senior leaders as it relates to compliance with applicable laws—or unethical behavior of any kind to report the issue to our Ethics Hotline, which can be done anonymously. Our Ethics Hotline is monitored by an independent company that provides a dedicated phone line and internet site for anonymous communication of any questions or concerns to a trained specialist, 24 hours a day. Users of the Hotline are assigned an identification number and security code so that they can follow up on their report later. A written notice of each report is sent to the Chief Compliance Officer, who provides updates to the Leadership Team and the Audit Committee of the Board of Directors as warranted. All reports are investigated. Resolution for substantiated cases can include termination of employees found to have violated our Code of Ethics.

2-27

Compliance with laws and regulations

Carter’s does not publicly disclose matters related to non-compliance.

2-28

Membership associations

Pushing the Industry Forward Partnering for Worker Well-being

2-29

Approach to stakeholder engagement

About Carter’s, ESG Governance About Carter’s, Our ESG Strategy Both internal and external stakeholders across our employees, investors, wholesalers, suppliers, and community partners were engaged via interviews and online surveys.

2-30

Collective bargaining agreement

We have zero employees covered by collective bargaining agreements.

3-1

Process to determine material topics

Our ESG Strategy

3-2

List of material topics

Climate Change Management and Employee Safety were not found to be top priorities based on the results of our 2023-24 ESG materiality assessment. However, they remain integrated into many parts of our business, including other priority topics like Sourcing, as this report shows. Additionally, Consumer Behavior has been elevated to a priority topic.

201: Economic Performance

3-3

Management of material topic

Carter’s, Inc. 2023 Annual Report

201-2

Financial implications and other risks and opportunities due to climate change

Planet, Climate Risks and Opportunities Carter's Climate Risks and Opportunities

301: Materials

3-3

Management of material topic

Product, Our Sustainable Materials Journey

301-2

Recycled input materials used

Product, Our Sustainable Materials Journey Raw Materials Usage

308: Supplier Environmental Assessment

3-3

Management of material topic

We intend to source only from suppliers that use the Sustainable Apparel Coalition’s Higg Facility Environmental Module (Higg FEM) by 2025.

308-1

New suppliers that were screened using environmental criteria

Tier 1 suppliers are currently evaluated on social and environmental criteria. We intend, by 2025, to source only from Tier 1 suppliers that use the Higg FEM.

401: Employment

3-3

Management of material topic

Benefits & Well-being

401-1

New employee hires and employee turnover

Workforce Data

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

Workforce Data

404: Training and Education

3-3

Management of material topic

People, Career Development

404-1

Average hours training per year per employee

People, Career Development

404-2

Programs for upgrading employee skills and transition assistance programs

People, Career Development

404-3

Percentage of employees receiving regular performance and career development reviews

Total percentage of employees who received a regular review is 98% and gender is the following percentages¹: • Female – 81% • Male – 12% • Not Declared – 7%

405: Diversity and Equal Opportunity

3-3

Management of material topic

People, Diversity and Inclusion

405-1

Diversity of governance bodies and employees

Workforce Data

408: Child Labor

3-3

Management of material topic

Product, Responsible Sourcing

408-1