planet
waste
We continue working toward our goal to divert 80% of our operational waste18 from landfill by 2025. In 2024, we achieved an overall diversion rate of 65%, led by our distribution centers which diverted more than 80% of their waste from landfill.
We aim to replicate the success of our distribution centers across all retail operations; however, data collection and waste management capabilities vary across locations, affecting our access to primary data. We directly manage waste and can obtain primary data through a dedicated vendor at more than 200 stores. The remaining retail locations operate under landlord-managed waste systems. For these locations, we estimate waste volumes by extrapolating data from directly-managed stores using an average per square foot of retail space. Given these challenges, we are reevaluating the timing of our waste goal. Detailed waste metrics are third-party validated and can be found in our Disclosure Index.
WASTE FROM DIRECT OPERATIONS (tons)
18
Operational waste includes waste disposed of at our offices, retail stores and distribution centers.
65%
Goal
Divert 80% of operational waste from landfill by 2025
2024 PROGRESS
65% of waste diverted from landfill
Electronic Waste Management
Carter’s headquarters in Atlanta, Georgia has participated in the building’s electronic waste recycling program for many years. Through this program, we collect electronics that have reached the end of their lives and provide them to our landlord. The landlord works with a certified recycler who follows federal guidelines to ensure they do not end up in landfills. Since 2023, we have collected nearly 20,000 pounds of electronics for recycling.
product circularity
A circular fashion economy promotes products designed for regeneration by using safe, recycled, and renewable materials to extend product lifespan. Carter’s plans to advance toward product circularity by integrating end-of-life considerations into our design and manufacturing processes.
The children’s apparel sector presents unique opportunities and challenges for circularity. The inherent “hand-me-down” nature of children’s clothing aligns naturally with circular principles, yet factors like fiber-to-fiber recycling technology and the availability and cost of recycled textile inputs present challenges. Through carefully designed programs and partnerships, we are creating and seeking scalable solutions that address these industry-specific challenges while meeting our consumers’ increased demands for sustainable products.
Textile Recycling
Our flagship circularity program, KIDCYCLE™, continues to demonstrate the potential for scaled textile recycling in the children’s apparel sector. Customers can mail apparel that would otherwise be discarded to our partner, TerraCycle, for recycling at no cost. TerraCycle sorts, shreds, and transforms the collected materials into items such as insulation for mattresses, pet bedding, and sports equipment. In 2025, we are excited to pilot an evolved approach to KIDCYCLE that will strengthen our collection infrastructure while improving customer accessibility to the program through in-store drop-off locations at specific U.S. stores.
KIDCYCLE METRICS
We are grateful to leverage industry support through the emergence of Producer Responsibility Organizations, who have taken on the role of managing state-specific regulations and serve as the liaison between regulating bodies and producers like us.”
Anu Piduru, Sr. Director – Sustainability
Extended Producer Responsibility (EPR)
The regulatory landscape for packaging and textile waste is rapidly evolving, driven by new EPR laws emerging across multiple jurisdictions. Through these regulations, Carter’s is held responsible for the full lifecycle of our packaging and textile products, which includes how these items are disposed of at the end of life. While we currently manage packaging EPR obligations in Canada and Germany, the introduction of similar requirements in additional jurisdictions and the expansion into textile requirements will expand our responsibilities.
We are actively preparing for increasing EPR regulations through activities such as:
- Registering with compliant Producer Responsibility Organizations
- Creating implementation plans for upcoming state-specific requirements
- Developing comprehensive, internal packaging data tracking systems
- Exploring expansion of eco-modulation opportunities (product recycling, reuse, resale, etc.), including through our KIDCYCLE™ program, to optimize future compliance costs
packaging
Packaging plays a critical role in protecting our products during their journey from manufacturing to our customers’ homes. It is also often the first touchpoint a consumer has to our product, whether checking the tag or unboxing an eCommerce order. As regulations and consumer expectations evolve, we are strengthening our approach to making impactful changes to our packaging. Our packaging strategy focuses on eliminating unnecessary materials and costs, increasing recycled content, and improving recyclability—all while maintaining the protection our products need.
Our commitment to reduce 50% of virgin plastic packaging by 2030 (from a 2022 baseline) has driven several of our packaging decisions. We met, and exceeded, this goal six years early through three key strategies:
- Elimination: Removing unnecessary packaging and transitioning to more sustainable alternatives
- Optimization: Improving packaging efficiency and reducing materials
- Innovation: Increasing recycled content and testing new materials
64%
Goal
Achieve 50% reduction in virgin plastic packaging by 2030
2024 PROGRESS
64% of our total plastic packaging was made of recycled content
2024 Packaging Reduction Efforts
Retail Operations
- Converted to 100% recycled content shopping bags and poly mailers across U.S. operations
- Expanded electronic receipts program, with nearly 50% of transactions resulting in digital receipts in 2024
- Consumed 32% less plastic by expanding our use of hybrid hangers from Little Planet to our PurelySoft product line
- Maintained carton reuse for shipping from distribution centers to retail stores, with approximately 100% of corrugate boxes reused
- Generated cardboard recycling rebates
- Committed to transition to 100% recycled content hangers for Carter’s brand retail stores and non-exclusive wholesale accounts by 202619
- Skip Hop continued using 100% recycled polybags and printed retail packaging across soft goods lines
19
Both types of hangers will be in circulation as we phase out our existing hanger inventory.
