Environmental, Social and Governance Goals

As a purpose-driven company, it’s important for A&F Co. to align its business practices and priorities with our values. To begin to do this with greater transparency and impact, in 2022, and in partnership with an experienced third-party, we conducted our first materiality assessment to identify the environmental, social and governance (ESG) topics that are most important to our stakeholders and our long-term business success.

From this assessment, we refreshed our existing 2019 sustainability goals and added new goals related to other social and governance priorities. Our updated ESG goals listed below align with the United Nations’ Sustainable Development Goals (SDGs).

Impact AreasGoalsPrimary SDG Impact
Waste Management
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Reduce waste at Global Home Office by 50% by 2025 compared to 2019
Responsible Consumption and Production, Life on Land.
Raw Materials & Eco-Friendly Sourcing
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Trace bovine leather and strive to source deforestation/conversion free according to 3rd party standards by 2030
Responsible Consumption and Production, Life on Land.

Source 30% of cotton as Better Cotton by 2024		Responsible Consumption and Production, Life on Land.

Source 25% recycled polyester by 2025
Responsible Consumption and Production, Life on Land.
Source 100% virgin wool through Responsible Wool Standard by 2025Responsible Consumption and Production, Life on Land.

Source 100% manmade cellulosic fiber (MMCF) from non-endangered or ancient forests or 50% Canopy-supported Next Generation MMCF		Responsible Consumption and Production, Life on Land.
Sustainable Packaging
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Mailers and polybags minimum of 50% recycled content by 2023 Responsible Consumption and Production, Life on Land.
100% of mailers in APAC, EMEA, and USA are recyclable by 2023Responsible Consumption and Production, Life on Land.
Tracking percentage of  third-party certified packaging materials by 2023 Responsible Consumption and Production, Life on Land.
100% of polybags in USA are recyclable by 2023 Responsible Consumption and Production, Life on Land.
GHG Emissions & Energy Efficiency
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Reduce total Scope 1 and 2 GHG emissions by 47% by 2030 from a 2019 baselineAffordable and clean energy, Climate Action
Water Management
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30% reduction in water intensity in denim production by 2028Clean water and sanitation, Responsible consumption and production
50% use of recycled water by 2028Clean water and sanitation, Responsible consumption and production
Suppliers Environmental Assessment
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100% of Tier 1 and 2 suppliers to complete environmental self-assessment annually by 2025Clean water and sanitation, Responsible consumption and production, Climate action, Partnerships for the goals
80% of Tier 1 and 2 suppliers to verify environmental self-assessment by 2025Clean water and sanitation, Responsible consumption and production, Climate action, Partnerships for the goals
Chemical Management
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< 3% of product failures due to chemical non-compliance by 2024 Clean water and sanitation, Responsible consumption and production, Life on land
Impact AreasGoalsPrimary Impact
Human Rights and Labor Conditions
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Continue 100 % of Tier 1 and logoed suppliers participate in A&F’s social audit programGood health and well being, Gender equality, Decent work and economic growth, Partnerships for the goals
100% of laundries to complete Higg Index Facility Social & Labor Module (“FSLM”) or Social & Labor Convergence Program (“SLCP”) by 2025 Good health and well being, Gender equality, Decent work and economic growth, Partnerships for the goals
100% top producing fabric mills (i.e. 80% production volume) complete Higg Index FSLM or SLCP by 2025  Good health and well being, Gender equality, Decent work and economic growth, Partnerships for the goals
100% Better Work (“BW”) factories with employees trained on gender-based violence prevention and response by 2025 Good health and well being, Gender equality, Decent work and economic growth, Partnerships for the goals
Human Rights and Labor Conditions
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50,000 access to worker well-being and empowerment programs by 2027 No poverty, Good health and well being, Decent work and economic growth, Partnerships for the goals
Talent Management
Execute a listening strategy across the end-to-end associate experience to drive actionable insights across performance, retention, development and engagementDecent work and economic growth
Investment in Community and Volunteerism
Invest $4M in donations and 20,000 volunteer hours per year across a portfolio of global community partnersPartnerships for the goals
Mental Health and Well-Being  
Integrate mental health & well-being offerings across the associate experienceGood health and well being, Partnerships for the goals
Invest $2M per year in community organizations with a focus on mental health & well-beingGood health and well being, Partnerships for the goals
Health and Safety
Maintain low annual rate of worker accidents and injuries of 2-3% (industry standard) Good health and well being
Inclusion and Diversity
Reflect the diversity of the communities we serve around the world by maintaining 60% or greater female representation as a total company (global) by 2026Reduced inequalities
Reflect the diversity of the communities we serve around the world by maintaining 60% or greater of Underrepresented Communities (URC) representation as a total company (U.S.) by 2026Reduced inequalities
Reflect the diversity of the communities we serve around the world by achieving 30% URC representation at our Global Home Office (U.S.) by 2026Reduced inequalities
Committed to an inclusive leadership team and board, representative of our workforce with 50% or more of external hires identifying as URC at Director level and above (U.S.)Reduced inequalities
Involve a third party that allows for annual pay analysis to further develop strategies to ensure total pay equity.Reduced inequalities, Gender equality
Expand our training, learning & development to promote inclusivity and belonging by developing a core curriculum for associates and trainings to upskill our Leadership.Good health and well being, Quality education, Reduced inequalities
Impact AreasGoalsPrimary Impact
Cybersecurity and Data Privacy
Perform one or more risk and control assessments to validate reasonable security practices are in place to protect sensitive information in line with the organization’s risk tolerancesIndustry, innovation and infrastructure
Maintain secure payment technology to protect customer payment information in accordance with the Payment Card Industry Data Security Standards Industry, innovation and infrastructure

Note: When we refer to “materiality” and our “materiality assessment”, we are referring to the identification of material issues for purposes of guiding our ESG strategies, goals, and programs, and we are not using the definition of materiality for purposes of our financial statements or other filings with the U.S. Securities and Exchange Commission (SEC).