Gap : 2023 ESG Report (English)

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E S G R E P O R T

CONTENTS

3	THE BIG PICTURE	15	ENVIRONMENT	29	SOCIAL:	51	GOVERNANCE	58	APPENDIX
					SUPPLY CHAIN
3	About Gap Inc.	16	Water Stewardship	30	Human Rights	52	ESG Oversight	59	Materiality
	About This Report	17	Access: Community	32	Assessment and	53	Risk Management	60	United Nations SDGs
4
Our Commitment to ESG:		Water Resilience		Remediation	54	Stakeholder and Political		Alignment
	CEO Message	18		34		61
	Reduction and	Capability Building		Engagement	GRI Index
5
Our Value Creation Model		Replenishment: Tackling	36	Gap Inc. P.A.C.E. and RISE	56	Business Ethics and Integrity	68	SASB Index
6	Our Product Life Cycle		Water Consumption
	38	Supply Chain and			77	TCFD Index
20	Chemicals Management
7	ESG Through the Years
	Community Stories			78	Supplemental Data
21	Climate Action
8	2023 Highlights
				82	Data Assurance
24	Raw Materials and Product
9	Our ESG Approach	39	SOCIAL:
26	Circularity		WORKPLACE AND
10	Our Supplier
	COMMUNITY
28	Waste
	Sustainability Approach	40	Enabling Opportunity
11	Gap Inc. Goals and Progress
			and Social Impact
13	Our House of Brands			44	Equality & Belonging
14	Brand Goals and Progress			47	People
				49	Employee Engagement
					and Corporate Giving

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

ABOUT GAP INC.

The Gap, Inc. (Gap Inc., the "company," "we," and "our") is a collection of lifestyle brands offering apparel, accessories, and personal care products for women, men, and children under the Old Navy, Gap, Banana Republic, and Athleta brands. Gap Inc. is an omni-channel retailer, with sales to customers both in stores and online, through company- operated and franchise stores, company-owned websites, and third-party arrangements.

ABOUT THIS REPORT

This Environment, Social, and Governance (ESG) Report covers Gap Inc.'s global operations for fiscal 2023. All previous years' reports are available on our website. This report focuses on developments and actions for our key programs, progress toward our corporate and brand goals during the 2023 fiscal year, and preparations for activities in 2024. We provide detailed information on program objectives, operations, and our management approach.

We sought to prepare this report in reference to the Global Reporting Initiative (GRI) Standards and in alignment with the Sustainable Accounting Standards Board (SASB) Standards and the Task Force on Climate-related Financial Disclosures

The inclusion of information contained in this report is being made in good faith based on information that is available to Gap Inc. as of February 3, 2024 (unless otherwise specified). Given the inherent uncertainty in predicting and modeling future conditions, caution should be exercised when interpreting the information provided in this report. In addition, the controls, processes, practices, and infrastructures described in this report are not intended to constitute any representation, warranty, or other assurance that such controls, processes, practices, and infrastructures will result in any specific outcome, result, or achievement of a stated target or goal.

As of February 3, 2024, we had company- operated stores in the United States, Canada, Japan, and Taiwan. In fiscal 2022, we signed agreements with a third party, Baozun Inc. (Baozun), to operate Gap China and Gap Taiwan (Gap Greater China) stores and the in-market website as a franchise partner. On January 31, 2023, the Gap China transaction closed with Baozun. The Gap Taiwan operations will continue to operate as usual until regulatory approvals and closing conditions are met.

We have franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta throughout Asia, Europe, Latin America, the Middle East, and Africa. Under these agreements, third parties operate, or will operate, stores and websites that sell apparel and related products under our brand names. We also have licensing agreements with licensees to sell products using our brand names.

In addition to operating in the specialty, outlet, online, and franchise channels, we use our omni- channel capabilities to bridge the digital world and physical stores to further enhance the shopping experience for our customers. Our omni-channel services, including buy online pick-up in store, order- in-store,find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences, are tailored uniquely across our collection of brands.

Since 2018, Athleta has been certified as a benefit corporation ("B Corp"), furthering its commitment to using the business as a force for good to drive social and environmental impact. The company continues to meet rigorous standards across social and environmental performance, with accountability and transparency. With this accreditation, Gap Inc. is one of the largest publicly traded retail companies with a B Corp-certified subsidiary apparel brand.

Learn more:

> Annual Filings

(TCFD). Gap Inc. is committed to the United Nations Global Compact (UNGC) Ten Principles, and this report serves as our Communication on Progress. We have not obtained external assurance for this report, but its contents have been subject to an internal quality review.

For questions regarding Gap Inc.'s sustainability efforts or the content of this report, please contact [e-mail].

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

3

OUR COMMITMENT

TO ESG: CEO MESSAGE

At Gap Inc. we believe there is a world of good in our shared humanity.

It's why we've been bridging gaps since 1969… and we're just getting started.

When Don and Doris Fisher opened the very first Gap store in 1969, they bridged the generation gap with clothing and experiences that spoke to an energetic new idealism. One that questioned convention and imagined better.

Today, 55 years later, the people of Gap Inc. are still bridging gaps, inspired by our shared humanity, to create a better world. A world where purpose and profit co-exist in pathbreaking ideas that better the well-being of people and the planet.

BRIDGING THE CLIMATE GAP

We are dedicated to protecting natural resources and ensuring healthy communities for generations to come.

	Earlier this year, in partnership with Arvind
	Limited, Gap Inc. was proud to launch an open-
	source water innovation center to accelerate
	water-saving innovations across the apparel
	supply chain in India. Additionally, we scaled the
	U.S. Agency for International Development
	(USAID) Gap Inc. Women + Water Alliance to
RICHARD DICKSON	reach more than 2.5 million people, improving
PRESIDENT & CEO, GAP INC.	their access to clean water and sanitation. And
	we've just launched an entirely new Water
	Collaborative with the Water Resilience Coalition
	and WaterAid, with the support of Cargill and
	GSK, that expands clean water access in even
	more communities that are connected to our
	global supply chain.

BRIDGING THE EQUITY GAP

Women comprise the majority of our customers, leaders, employees, and apparel supply chain. So, Gap Inc. makes industry-leading investments to ensure that women are empowered to reach their full potential.

In 2007, we launched P.A.C.E. (Personal Advancement & Career Enhancement), a groundbreaking initiative designed to support women and girls connected to our global supply chain with a practical education curriculum. More than 15 years later, this remarkable program has reached an impressive milestone, uplifting more than 1.4 million women and girls.

This year, Gap Inc. merged P.A.C.E. Workplace programming into RISE, a powerful partnership we created in 2019 alongside BSR (Business for Social Responsibility), HERproject™, CARE International, and ILO-IFC Better Work.

RISE actively promotes gender equality through partnerships with local civil society organizations to improve workplace systems and practices, while simultaneously encouraging greater leadership from brands, buyers, suppliers, and worker representatives.

BRIDGING THE OPPORTUNITY GAP

Gap Inc. is committed to creating sustainable economies and a culture of equality and belonging, which means we use the assets and scale of our business to provide opportunity access for historically marginalized people and communities.

Our This Way ONward initiative was created to unlock career potential, one young person at a time, with a focus on underserved communities. Since 2007, the program has provided one-on-one mentorship, coaching, and on-the-job skill building, as a pathway to a more secure future. And, to date, we're on track to hire more than 20,000 young people by 2025 through This Way ONward.

BRIDGING THE INCLUSION GAP

Inclusion has been integral to our business approach since we opened in 1969. Gap Inc.'s comprehensive Equality & Belonging effort, rooted in ethical governance, focuses on embedding belonging into every aspect of our business.

This year, we launched our Inclusive Leadership Coaching Series - facilitated by a third-party expert and focused on building allyship in action and a sense of belonging - as well as our Inclusive Hiring Training, which aims to actively mitigate bias and any form of discrimination in the recruitment process.

Our founders understood the transformative power of mattering well before most and built a company with the scale to make a real difference.

TODAY, WE BRIDGE GAPS TO CREATE A BETTER WORLD

We are remarkably proud of the meaningful change we created in fiscal 2023. And this year, we're motivated to matter even more.

As a signatory of the United Nations Global Compact for two decades, Gap Inc.'s 2023 ESG Report serves as our Communication on Progress, providing transparent updates on the company's work toward building a more sustainable and inclusive business.

Thank you for your interest in our work. To stay connected, please visit us at gapinc.com.

Onward!

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

4

OUR VALUE CREATION MODEL

We consider environmental and social factors as part of our end-to-end

INPUTS

NATURAL CAPITAL

OUR BUSINESS

END-OF-LIFE

PRODUCT DEVELOPMENT

IMPACT

FOR THE ENVIRONMENT

business strategy. Our value creation model demonstrates how our business creates environmental, social, and economic value through our brands and operations.

• Water, for operations, apparel manufacturing, and growing cotton and other fibers
• Energy and fuel, for operations, production, and logistics
• Raw materials, including natural fibers like cotton, synthetics like polyester and nylon, and manmade cellulosic fibers
• Chemicals, for using pesticides and fertilizers in cotton growth and dyeing and finishing fabrics in manufacturing

HUMAN AND SOCIAL

CAPITAL

• 85,000 employees (approximately)
• Over 250 vendors with factories in approximately 30 countries

FINANCIAL CAPITAL

8

RECYCLING

7

6

CONSUMER USE

1

SUPPLIERS

2

3

LOGISTICS

• Water stewardship
• Chemicals management
• Climate change response and emissions reduction
• Circularity and waste
• Responsible land and natural resource use

FOR WORKERS

• Fair employment and labor standards
• Gender equity
• Diversity, equity, inclusion, and belonging
• Workforce development
• Health and safety
• Human rights protections
• Social involvement

FOR CUSTOMERS

• Product quality and safety

• $14.9 billion in net sales, with 37% related to online sales1
• 2,562 company-operated and 998 franchise stores in about 40 countries

5

4

MARKETING AND

ADVERTISINGRETAIL

•	Responsible marketing and
	consumer engagement
•	Data privacy and cybersecurity

FOR COMMUNITIES

• Engagement, development, and investment

FOR INVESTORS

• Financial value
• Transparent reporting

1 Online sales primarily include sales originating from our online channel, including those that are picked up or shipped from stores and net sales from revenue- generating strategic initiatives.

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

5

OUR PRODUCT LIFE CYCLE

We seek to improve the sustainability performance of our business at every stage of

a product's life, from the first design concepts through materials sourcing, manufacture, and distribution to sale, use, and end-of-life.

1 PRODUCT DEVELOPMENT

Our Product Development teams are encouraged to design and manufacture more sustainable products and have influence over who makes our clothes. This enables us to address our wider environmental footprint and improve working conditions in factories. See more about our supplier assessments, water, chemicals management, materials, and circularity practices in the Environment and Social - Supply Chain sections.

RAW MATERIALS

2 (TIER 3 SUPPLIERS

AND BEYOND)2

To minimize the impacts of the fibers we use in our products, we place a special focus on cotton, and are taking steps toward sourcing more sustainable synthetic and manmade cellulosic fibers. See more about our water and climate practices in the Environment section.

TEXTILE

3 MANUFACTURING

(TIER 2 SUPPLIERS)3

Fabric mills use large quantities of energy and water, as well as chemicals that may impact local watersheds if not treated properly. Through our Mill Sustainability Program, we integrate clear environmental and social standards into our sourcing decisions. See more about our supplier assessments, labor, water, chemical, and climate practices in the Environment and Social - Supply Chain sections.

4	PRODUCT & FINISHING
(TIER 1 SUPPLIERS)4

Our comprehensive approach for improving working conditions in our supply chain combines factory monitoring and capability building programs that engage our vendors to measure and address their environmental and social impacts. See more about our supplier assessments, capability building, P.A.C.E./ RISE, water, chemical, and climate practices in the Environment and Social - Supply Chain sections.

We use product labeling, catalogs, social media, and blog posts to educate our customers on how they can wear, care for, and discard their clothes to reduce our products' total environmental footprint. We also engage in and contribute to industrywide solutions to reduce end-of-life impacts. See more about our circularity in the Environment section.

Our stores are where our products, employees, and customers interact, and we aim to foster an equitable and inclusive environment for all. For example, This Way ONward at our Old Navy stores helps young people experiencing barriers to employment obtain their first jobs. See more about This Way ONward and our Equality & Belonging initiatives in the Social - Workplace and Community sections.

We use a mix of transportation methods via sea, air, truck, and railroad to move products from suppliers to our distribution centers (DCs), and then to stores and customers. We are working to conserve energy, implement electric vehicles, and reduce waste at our DCs, where we also support hiring programs for refugees and immigrants. See more about our climate and opportunity hiring programs in the Environment and Social - Workplace and Community sections.

7	CONSUMER USE	6	RETAIL	5	LOGISTICS
& CIRCULARITY

1. "Beyond" refers to Tier 3 (yarn spinners) and Tier 4 (suppliers of raw materials such as farmers and ginners).
2. Tier 2: Fabric knitting, weaving, and dyeing mills.
3. Tier 1: Cut and sew garment factories.

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

6

ESG THROUGH THE YEARS

Reflecting on 2023, we celebrate 20 years of ESG reporting, as well as the progress made toward social and environmental sustainability over the past three decades.

1994	2003		2004	2007			2008
Supplier Sustainability			Published	Launched Water Quality Program	Launched This Way Ahead	Launched the Personal	Conducted our first environmental
program established			first Social	Published first GRI and UN Global	(now This Way ONward), our award-	Advancement & Career	footprint assessment
			Responsibility	winning Opportunity Hiring program	Enhancement (P.A.C.E.) program
			Compact indices
			Report

We recognize that there is still more work to be done, and that future progress against our goals will require deepened partnership with priority stakeholders and further integration of sustainability objectives across our business.

2018

Achieved

B Corp status for Athleta

2017

Signed on to the Science Based Targets initiative (SBTi)

Launched the USAID Gap Inc. Women + Water Alliance public-private partnership

Published first SASB index

2016

Joined the UN Global Compact CEO Water Mandate and launched Washwell method to reduce water use in manufacturing

2014	2011	2010
Announced equal pay for equal	Submitted first CDP	Submitted first CDP
work - the first Fortune 500	Water response	Climate response
company to do so

2019	2020
Joined The Fashion Pact	Achieved goal to save 10 billion	Set our 2025 goals and strategy
	liters of water in manufacturing	for Empowering Women,
	since 2014	Enabling Opportunity, and
	Set science-based targets	Enriching Communities
	for climate	Evolved our diversity, equity,
		and inclusion (DEI) efforts to
		establish our Equity & Belonging
		team and strategy, and
		announced our commitments
		to employee, customer,
		and community belonging

2021

Published first TCFD index

Exceeded our goal to reach 1 million direct beneficiaries through P.A.C.E./RISE

2022	2023
Set our 2050 net-zero emissions		See 2023 Highlights on p.8
target
Set our 2030 water goals and
exceeded our goal to reach 2M
people with improved access to
water and sanitation by 2022

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

7

2023 HIGHLIGHTS

GAP INC. AND OUR

FIBER GOALS PROGRESS5

AWARDS AND RECOGNITION

PARTNERS LAUNCHED THREE MAJOR PROGRAMS:

WOMEN + WATER COLLABORATIVE

98%

of cotton was from more sustainable sources6

19%

of polyester was from recycled sources

American Opportunity Index

7th in Retail and 54th of nearly

CDP Climate Change response scored an A- and CDP Water

World Benchmarking Alliance Gender Benchmark - 4th of

with partners WaterAid, Cargill, and GSK to improve access to clean water and sanitation in India

CLIMATE GOALS PROGRESS (as of the end of FY 2022)

400 overall

Security scored a B in 2023

112 companies

GWICA

(the Global Water Innovation Centre for Action) in partnership with Arvind Limited

58%

of electricity in direct operations is from renewable sources

77%

reduction in Scope 1 and 27 emissions since 2017

Ceres' Valuing Water Finance Initiative Benchmark report - top 11 "On Track" of 72 companies (and the only apparel company in that group)

Newsweek - America's Best Retailers: Athleta 2nd in Athletic Apparel; Banana Republic 10th overall

FTSE Diversity & Inclusion Index - 2nd most diverse and inclusive company

RISE

OPPORTUNITY HIRING AND EMPLOYEE ENGAGEMENT

Newsweek - America's Most

Responsible Companies:

1st in retail

in collaboration with BSR, HERproject, CARE, and Better Work to accelerate women's empowerment programs across the apparel supply chain

19.6k

youth engaged in This Way ONward since 2007

45%

of employees volunteered

The Retail Influencer Network, The Z Suite, and WWD named Gap Inc.'s Bahja Johnson one of their Most Influential ESG Leaders for her work on Equality & Belonging

Dow Jones Sustainability Index Member for the 11th year in a row

TIME - World's Best Companies: 50th for sustainability

1. Gap Inc. fiber data is derived on a seasonal calendar from purchase order materials data for all brands, excluding BR Home products. We currently do not trace fiber consumption for franchises or VMI (vendor managed inventory) because their data is not in our booking system. We have limited visibility into third-party licensing and accessories, but are continuously improving this connection.
2. Defined as: Better Cotton (formerly BCI), verified U.S.-grown cotton (USCTP), organic, in conversion (to verified organic), recycled, or regenerative.
3. Scope 1: Direct emissions; Scope 2: Indirect emissions from purchased electricity use at company-operated facilities.

3BL's 100 Best Corporate Citizens

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

8

OUR ESG APPROACH

At Gap Inc., we lead with our values and think holistically about how environmental and social responsibility is embedded

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ClimateProducts

SIGNATORIES AND MEMBERSHIPS

Another critical component of our approach is industry collaboration and international coalitions. We are proud signatories, members, or active participants of the following organizations:

within our business.

The ESG framework guides our business to integrate sustainable and responsible practices both in our direct operations and across our value chain.

Gap Inc.'s three sustainability pillars - Empowering Women, Enabling Opportunity, and Enriching Communities - are complemented by our Equality & Belonging work. Our internal pillars align with the broader ESG framework, with ethical governance as a foundation. Our focus areas are informed by our materiality assessment.

Learn more:

> Materiality

Waste &

Circularity

Human

Rights

S

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L	W
-	E		Equity
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Water &

Chemicals

Data

Privacy

Reporting

Stakeholder

Transparency and

and Political

Accountability

Engagement

G

N

GOVERNANCE

Talent Attraction

I

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& Workforce

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Development

L

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&

Oversight & Risk

Business Ethics

Y

Management

& Integrity

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Diversity, Equity,

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& Inclusion

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Health &

Community

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Safety

Engagement

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K

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N U M M O C &

• 15 Percent Pledge
• Better Cotton
• Better Than Cash Alliance
• Black In Fashion Council
• Boys & Girls Clubs of America
• Business for Social Responsibility (BSR)
• Cascale, Inc.
• CEO Water Mandate
• The Fashion Pact
• International Labour Organization (ILO) and International Finance Corporate (IFC) Better Work programme
• International Accord for Health and Safety in the Textile and Garment Industry
• Nirapon
• Life and Building Safety (LABS) Initiative
• Open to All
• RISE (Reimagining Industry to Support Equality; formerly Empower@Work)
• Social & Labor Convergence Program (SLCP)
• Tent Partnership for Refugees
• Textile Exchange
• thredUp®
• UN Free & Equal
• UN Global Compact (UNGC)
• UN Framework Convention on Climate Change (UNFCCC) Fashion Industry Charter
• Water Resilience Coalition (WRC)
• Welcome.US
• YWCA USA

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

9

OUR SUPPLIER SUSTAINABILITY APPROACH

We work closely with our suppliers to reflect our dedication to human rights, women's empowerment,

UNDERSTANDING OUR SUPPLY CHAIN

and environmental sustainability across the value chain.

Improving supplier performance begins with identifying and locating our suppliers and learning about their capabilities

TRACEABILITY

We publish our Tier 1 factory list twice a year and are improving visibility into Tier 2 and beyond.​

COLLABORATION

• Tier 1 and 2 suppliers

• Industry partners

• Innovation and technology

Our Supplier Sustainability program focuses on both social and environmental issues. Through remediation practices and business decisions

2023 PROGRESS

Our Supplier Sustainability team and its programs

and challenges.​

• Open Supply Hub Gap Inc. profile
• Gap Inc. Factory List

partners

• NGOs

> Stakeholder Engagement

based on our compliance rating system, we incentivize suppliers to implement proper labor, health and safety, and environmental standards in their facilities. This approach aims to protect and support workers, improve air and water quality, increase energy efficiency, and minimize the risk of

• which include social and environmental compliance, as well as a portfolio of capability building programs focused on women's empowerment, water, and climate - have historically focused on Tier 18 of our supply chain.

RATING OUR SUPPLIERS

We calculate a Compliance and Sustainability score for

COMPLIANCE AND SUSTAINABILITY SCORE COMPONENTS

violations across our supply chain.

Our rating systems focus on the following areas as metrics to track factory performance and progress:

• Labor and working conditions
• Environmental compliance
• Participation in women's empowerment programs

We have a role to play in advancing our sustainability objectives farther upstream in our supply chain and are taking meaningful steps to expand our efforts to Tier 29 suppliers and beyond.10 We continue increasing our visibility to Tier 2 and 3 and are working to develop policies to extend additional oversight and governance of tiers upstream in our supply chain.

each facility as part of our Tier 1 Vendor Scorecards, which have a rating system of red, yellow, or green (most favorable). We assess suppliers for social and environmental compliance using a variety of methods.

SOCIAL

SLCP, ILO Better Work, and Gap Inc. Code of Vendor Conduct (COVC) Audits

P.A.C.E./RISE participation and percentage of female beneficiaries

ENVIRONMENTAL

Higg Facility Environmental Module (FEM)

We are committed to utilizing industry tools such as the Social & Labor Convergence Program (SLCP) and Higg Index Facility Environmental Module (FEM) to assess our strategic Tier 2 mills. These partnerships have also allowed us to begin

ENCOURAGING ACTION

We aim to support worker well-being, respect human rights, reduce environmental impacts, and improve

REMEDIATION PRACTICES	PURCHASING PRACTICES
Our remediation process collaborates with all	At least 80% of Gap Inc.'s sourcing spend is
stakeholders to develop corrective action plans.	from green-rated factories.

collecting detailed profiles of our Tier 3 spinners.

business performance - while helping our suppliers and their factories improve efficiencies with streamlined industry tools and processes.

> Assessment and Remediation

CAPABILITY BUILDING AND EFFICIENCY PROGRAMS

> Purchasing Practices

1. Tier 1: Cut and sew garment factories.
2. Tier 2: Fabric knitting, weaving, and dyeing mills.
3. "Beyond" refers to Tier 3 (yarn spinners) and Tier 4 (suppliers of raw materials such as farmers and ginners).

Supplier engagement programs support suppliers in their own journey toward more positive working conditions and environmental impacts.

> Water: Reduce and Replenish

> Climate Action

> Capability Building

THE BIG PICTURE

ENVIRONMENT

SOCIAL

SUPPLY CHAIN

SOCIAL

WORKPLACE AND COMMUNITY

GOVERNANCE

APPENDIX

10