planet data

35

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.

36

For market-based emissions, Carter’s used emission factors (EF) from the Green-e residual mix (updated October 2022). Market EF are not available for many international facilities.

37

This value and the values for total emissions and emissions intensities have been restated after applying 14,000 RECs purchased in 2023.

38

This value and the values for total emissions and emissions intensities have been restated after applying 10,000 RECs purchased in 2024.

39

The GHG Protocol defines Scope 2 emissions as indirect emissions from the use of purchased electricity and chilling water. Carter’s used emissions factors from the latest release of the EPA eGrid emissions factors (eGrid2021, released January 2023) to calculate location-based emissions.

40

Scope 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, 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.

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.

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.