planet data

Certain data presented have not been audited or assured. See the “Independent Limited Assurance Statement” on page 76 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.

36

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.

37

For market-based emissions, Carter’s used emission factors (EF) from the Green-e residual mix (updated January 29, 2026). Market EF are not available for many international facilities.

38

This value and the values for total emissions and emissions intensities reflect RECs purchased for the respective calendar years 2023–2025.

39

The GHG Protocol defines Scope 2 emissions as indirect emissions from the use of purchased electricity and chilled water. Carter’s used emissions factors from the latest release of the EPA eGrid emissions factors (eGrid 2023 Rev 2, released June 12, 2025) to calculate location-based emissions.

40

Scope 3 emissions are from sources not owned or directly controlled by Carters but which 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, fuel and energy-related activities, upstream transportation, processing of waste (landfill waste, recycling, and wastewater), business travel, employee commuting, and end-of-life treatment of sold products. As is commonly understood in the GHG inventory process, Scope 3 emissions tend to be the most difficult to quantify accurately and may require estimations due to the complexity of global supply chains.

41

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).

42

The reported value is calculated from reported and estimated electricity and fuel usage. Correspondingly, the per-sq-ft number includes fuels.

2025 waste (metric tons)

2019 Base Year

2023

2024

2025

Distribution centers

Landfilled

287

506

520

573

Recycled

2,853

2,375

2,299

2,256

Stores⁴³

Landfilled

12,390

8,151

7,429

8,188

Recycled

20,043

12,221

12,718

11,495

Corporate Office

Landfilled

–

56

58

Recycled

–

34

19

2

Waste from direct operations⁴⁴

35,374

23,343

23,041

22,572

Total landfilled waste

12,677

8,713

8,005

8,819

Total recycled waste

22,897

14,631

15,036

13,753

Diversion rate⁴⁵

64%

63%

65%

61%

Certain data presented have not been audited or assured. See the “Independent Limited Assurance Statement” on page 76 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.

43

We receive waste data from approximately 20% of our stores. We have limited visibility to waste data at the majority of our stores due to our leasing structures and relationships with landlords. 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.

44

“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.

45

Diversion rate equals waste sent to recycling divided by total waste generated.

2025 water use (millions gallons)

2019 base year

2023

2024

2025

Direct operations⁴⁶

60

55

59

55

Distribution centers

6

5

Corporate offices

0.3

3

4

5

Retail stores

54

46

50

45

Indirect operations⁴⁷

1,392

428

454

341

Total water use (direct and indirect)

1,452

483

513

396

Intensity metrics

Water intensity: direct only (per million $ revenue)

0.02

Water intensity: direct and indirect (per million $ revenue)

0.41

0.16

0.18

0.14

Certain data presented have not been audited or assured. See the “Independent Limited Assurance Statement” on page 76 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.

46

“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.

47

“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. In 2025, this value was derived from the Higg FEM database in an effort to improve the accuracy and completeness of our supplier data.