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 enhance our transparency and impact, we partnered with an experienced third-party to conduct 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.

Informed by the results of this assessment, we refreshed the company’s original 2019 sustainability goals and, in 2023, established a comprehensive set of ESG goals aligned with the United Nations’ Sustainable Development Goals (SDGs).

With many of our 2019 goals reaching their target dates in 2025, we established a new set of goals that reflect the evolution of the Company’s ESG strategy, priorities, and long-term vision for delivering meaningful impact. Building on the progress made to date and complementing the goals introduced in 2023 that remain underway, our 2026 goals are intended to advance lasting impact across our environmental, social, and governance focus areas.

Impact AreasGoalsPrimary SDG Impact
Raw Materials & Eco-Friendly Sourcing
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Suppliers document traceability to raw material origin, as well as strive to source 75% of key fibers as preferred*, in A&F Co. owned and operated production by 2030 

*Preferred fibers include Better Cotton, US Cotton, Recycled Polyester, Canopy Dark Green Fiber Suppliers, or Recycled Nylon. Preferred fibers may also include those that demonstrate improved environmental and social sustainability compared to conventional product. 
Responsible Consumption and Production, Life on Land.
GHG Emissions & Energy Efficiency
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Reduce total Scope 1 and 2 GHG emissions by 55.7% by 2030 from a 2019 baselineAffordable and clean energy, Climate Action
Reduce absolute Scope 3 GHG emissions from purchased goods and services by 27.5% by 2030 from a 2019 baseline Affordable 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
Chemical Management
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< 3% of product failures due to chemical non-compliance  Clean water and sanitation, Responsible consumption and production, Life on land
Impact AreasGoalsPrimary Impact
Human Rights and Labor Conditions
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100% of strategic vendors’ high-volume factories will have mature social dialogue* and vendor-owned workplace management systems** in place​ by 2030 

*Mature social dialogue refers to complete grievance handling procedure, dispute resolution procedures 

**Mature workplace management systems refer to proper human resources and occupational safety and health policies and procedures on recruitment, discipline, termination, emergency preparedness, OSH risk management and control, and accident investigation 
Good health and well being, Gender equality, Decent work and economic growth, Partnerships for the goals
50,000 workers with access to 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 with respect to female representation as a Total CompanyReduced inequalities, Gender equality
Reflect the diversity of the communities we serve around the world with respect to underrepresented communities at leadership levels, Global Home Office and Total CompanyReduced inequalities
Involve a third party that allows for annual pay analysis to ensure total pay equityReduced inequalities, Gender equality
Expand our training and learning & development to promote inclusion and belonging for associates to upskill leadershipGood 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).