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, 2024 through December 31, 2024.
GRI 1 Used
GRI 1: Foundation 2021
2: General Disclosures
Response
2-3
Reporting period, frequency, and contact point
2-4
Restatements of information
Our 2022 and 2023 scope 2 market-based emissions have been restated after purchasing and applying RECs.
2-5
External assurance
Our performance disclosures on Scope 1 GHG emissions, Scope 2 GHG emissions, water, and waste for 2021, 2022, 2023, and 2024 have undergone independent limited assurance carried out by a third-party.
For our Independent Limited Assurance Statement, see p. 76
2-6
Activities, value chain, and other business relationships
2-9
Governance structure and composition
2-12
Role of the highest governance body in overseeing the management of impacts
About Carter’s, ESG Governance
The Nominating and Governance Committee of 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 Sustainability and CSR Departments are responsible for the execution of our Raise the Future strategy, which is based on our Company purpose, and our 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 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 2024. 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.
2-22
Statement on sustainable development strategy
2-24
Embedding policy commitments
2-25
Process to remediate negative impacts
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
2-29
Approach to stakeholder engagement
About Carter’s, ESG Governance
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.
201: Economic Performance
Response
201-2
Financial implications and other risks and opportunities due to climate change
301: Materials
Response
308: Supplier Environmental Assessment
Response
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
Response
401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees
People Data
404: Training
Response
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
Total percentage of employees who received a regular review is 100% and gender is the following percentages:32
• Female – 82%
• Male – 13%
• Not Declared – 4%
405: Diversity and Equal Opportunity
Response
408: Child Labor
Response
408-1
Operations and suppliers at significant risk for incidents of child labor
Product, Responsible Sourcing
409: Forced or Compulsory Labor
Response
409-1
Operations and suppliers at significant risk for incidents of forced or compulsory labor
Product, Responsible Sourcing
414: Supplier Social Assessment
Response
416: Customer Health and Safety
Response
416-1
Assessment of the health and safety impacts of product and service categories
417: Marketing and Labeling
Response
3-3
Management of material topic
417-1
Requirements for product and service information and labeling
In compliance with legal requirements, we provide information on fibers, country of manufacture, and safe use via care instruction labeling for textile items and consumer instructions. We also provide guidance for hard goods in the Skip Hop product lines.
Consumer Behavior
Response
Consumer Behavior
People, Diversity & Inclusion
32 All eligible employees hired on or before October 1, 2024 and excludes contractors and temporary employees.
