Carter’s 2022 Environmental Data

GHG Emissions (metric tons CO₂e)

Certain data presented have not been audited or assured. See the “Independent Limited Assurance Statement” on page 69 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. ¹Total 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. ²Carter’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. ³The 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. ⁴For 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. ⁵Scope 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. ⁶The 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). ⁷The reported value is calculated from reported and estimated electricity and fuel usage. Correspondingly, the per-sq-ft number include fuels. *This data has been assured by SGS (“the assurer”). As per the limited assurance statement, nothing has come to the assurer’s attention to indicate that the selected information is not fairly stated in all material respects.

Intensity Metrics

Energy Consumption

Waste (metric tons)