planet
biodiversity
At Carter’s, we recognize our responsibility to protect and preserve the natural environment that future generations will inherit. Our partnership with the Arbor Day Foundation continues to demonstrate our commitment to environmental stewardship and biodiversity conservation.
As North America’s largest branded marketer of children’s apparel, we acknowledge the interconnection of our business operations with biodiversity and ecosystem health. Our collaboration with the Arbor Day Foundation strategically addresses multiple priorities:
- Carbon sequestration to support emissions reduction
- Water conservation in key manufacturing regions
- Biodiversity protection in critical ecosystems
- Employee engagement in environmental initiatives
Our commitment to future generations extends to our Carter’s family. In 2024, we continued our tradition of planting trees to celebrate new additions to our employees’ families, with more than 460 trees planted.
While we’ve made significant progress in our reforestation efforts, we recognize the need for a more comprehensive approach to biodiversity protection. The apparel industry faces unique challenges in measuring and managing biodiversity impacts throughout the supply chain, from cotton cultivation to final product distribution. We are exploring additional ways to reduce our impact on biodiversity and expect to disclose progress in future reporting.
Estimated impacts from our 2024 tree planting, across the next 40 years, include:17
6,535 metric tons CO2e emissions sequestered, equivalent to 1,420 cars off the road for one year
3.2 million gallons of water runoff avoided, equivalent to water provided to 39,000 people for one day
17
These figures were provided by the Arbor Day Foundation using the i-Tree Planting calculator, developed by the USDA Forest Service, and the EPA’s Greenhouse Gas Equivalencies Calculator.
managing our water impact
Water management remains a significant environmental challenge, particularly in the textile industry where manufacturing processes are water intensive. At Carter’s, we recognize our responsibility to support adequate water access for future generations by minimizing water consumption across our operations and supply chain, focusing particularly on our manufacturing processes where we have the greatest opportunity for impact.
Balancing consumer preferences for soft, comfortable clothing with water reduction goals presents ongoing challenges. However, we see these challenges as opportunities for innovation. We have developed a two-pronged strategy that balances innovation with practical optimization:
- Embracing Technological Innovation In late 2024, we introduced ozone washing technology for a portion of our OshKosh brand – our World’s Best Overalls™. This innovative wash approach marks a significant shift from conventional washing methods. In 2025, we are expanding implementation of this technology across our denim production for playwear products and Little Planet.
- Reimagining Design Processes Our design teams are pioneering new ways to achieve the soft, comfortable feel parents expect from Carter’s products while minimizing water usage. For instance, we are exploring alternative fabric finishing techniques that create the same cozy feel without water-intensive washing processes.
TOTAL WATER USE (millions gallons)
59%
Goal
Reduce water usage in the manufacturing and washing of our products
2024 PROGRESS
59% reduction since 2019 in number of styles requiring additional wash during manufacturing
