Global Sustainability Report - Sustainability | Gap Inc.
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Global Sustainability Report
Home Overview Strategy Social Environment Product Appendix
About
ABOUT GAP INC. ABOUT THIS REPORT
Founded in San Francisco in 1969, Gap Inc. This report covers Gap Inc.’s global
is a leading global retailer offering clothing, operations for fiscal 2019, which ended on
accessories and personal care products for February 1, 2020.
men, women and children under the Old Navy,
Gap, Banana Republic, Athleta, Intermix, Janie Our last report covered fiscal 2018 and is
and Jack and Hill City brands. available with our other past sustainability
reports.
Our Athleta brand is a certified B Corp,
demonstrating our commitment to using This report focuses on developments and
business as a force for good by meeting actions for our key programs, progress
rigorous standards across social and toward our corporate and brand goals
environmental performance, accountability during the 2019 fiscal year, preparations
and transparency. We have amended Athleta's for activities in 2020, and an analysis
legal charter to become a Delaware Public of trends and business impacts where
Benefit Corporation to further uphold the available. For our many programs, we
brand’s commitment to people and the planet. provide detailed information on objectives,
Our Hill City brand was also a certified B Corp, operations and our management approach
but we made the difficult decision to wind at gapincsustainability.com, which can be
down operations by the end of 2020. accessed via links in each section.
We purchase private-label and non-private- We sought to prepare this report in
label merchandise from about 800 vendors. accordance with the Global Reporting
Our vendors have facilities in about 30 Initiative (GRI) Standards: Core option.
countries. Gap Inc. is committed to the United Nations
(UN) Global Compact Ten Principles and
At the end of fiscal 2019, we had this report serves as our Communication
approximately 129,000 part-time and full-time on Progress (CoP). We have not obtained
employees. Our products were available for external assurance for this report.
purchase in more than 90 countries through
3,345 Company-operated stores, 574
franchise stores, and e-commerce sites.
Learn more
> Annual Filings
2019 Global Sustainability Report 2
Home Overview Strategy Social Environment Product Appendix
CEO Letter
If 2020 has taught us anything, it’s that crisis to our business. Over the years, their vision communities. We look forward to sharing our
has the potential to create opportunities has guided our company to imagine how we progress on this journey.
to unlock necessary change. We’re facing can do more to support sustainable societies
the worst crisis in our history – one that and a resilient planet. Our foundational values Not only do we have an enormous opportunity
has been destabilizing for not only our are more important than ever and they fuel our to build on our legacy of doing more than
industry, but for our employees, customers, commitment to being a force for good – to help selling clothes, our brands are leading the way
partners and communities around the world. people, planet and communities. by amplifying our values and connecting with
This global health crisis has magnified the consumers in creative, compelling and relevant
severity and complexity of other social and ways. Through designing sustainability into our
cultural imperatives, including addressing "Our foundational values products, reducing water use in manufacturing,
ongoing impacts of climate change and and developing climate strategies for our
systemic racism. Yet, the enormous are more important than business, our sustainability work matters – to
challenges brought on by COVID-19 have
also accelerated the pace of much-needed
ever and they fuel our us and to our stakeholders.
transformation – both within our company commitment to being a Enclosed in this report is a detailed account of
and in society on a global scale. our progress. As a company co-founded by a
force for good — to help woman and led by women at every level of the
While we can’t ignore that this global people, planet and company, I am especially proud of the ways
pandemic will have lasting consequences in which our company continues to support
on all of us, it’s also true that this has been communities." the women who create the world’s clothes.
a time of greater collaboration, clarity and We have greatly expanded our P.A.C.E. including our ongoing engagement with other
unity. I have witnessed untold kindness program, which has reached over half a million signatories of the UN Global Compact, who’ve
and intrepidness, and experienced bold Earlier this year, Gap Inc. took necessary women and girls, and I’m excited the program defined the path for the industry to contribute
innovation and creativity. I am seeing that actions to survive and emerge from this period will potentially reach even more, including to sustainable change.
show up in countless ways as we design for even stronger, including temporarily closing through a new initiative whose members
the future – one we can all be proud of. stores to protect the health of employees and collectively engage 4.5 million women in The experiences of 2020 have been
customers. We didn’t make decisions lightly the global supply chain. From achieving our generation-defining and, in the face of still so
In reflecting on Gap Inc.’s role in creating because so many depend on our business. goal to save 10 billion liters of water through much uncertainty, I know what we’re made of:
positive change, the very premise of our Guided by our values, we worked quickly to re- sustainable manufacturing processes ahead resilient teams and a company of powerful,
company is what we look to. Our founders, open stores safely, bring our teams back, and of schedule, to developing major renewable purpose-led lifestyle brands. Now, more than
Doris and Don Fisher, built this company in mitigate impacts to our supplier partners and energy projects, to hiring young people who ever, we have the opportunity to leverage
1969 on a single need: fit. When Don could garment workers. will become our future leaders for their first our size and scale to win and position us for
not find a pair of jeans that fit him, they job from our This Way Ahead program, to growth in the future. I believe in our ability to
opened a store as an equal partnership that Another critical lesson of 2020 has been establishing Gap Inc.’s first science-based be a force for good.
became a company of purpose-led brands the need to create space to learn and to targets, we accomplished a great deal in 2019.
that shape people's way of life, guided by the help break down the centuries-old systems
belief that we can not only bridge the gaps that have held back our Black and Brown We have achieved progress thanks to the
between us, but future generations. They communities. In June, we outlined a new set dedication of our employees, partners and
believed Gap Inc. would achieve success by of commitments to drive systemic change both industrywide collaboration. We cannot do
being open to all, and creating opportunities in and outside our walls, and enable a culture this work alone, and we are grateful for those Sonia Syngal
for the people and communities connected of belonging for our teams, customers and who guide us, stand behind us and beside us,
CEO, Gap Inc.
2019 Global Sustainability Report 3
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Contents
OVERVIEW SOCIAL ENVIRONMENT
Highlights 6 Our Employees: Water Stewardship Strategy 47
Our Purpose-Led Brands 7 Talent 20 Women + Water 50
Goals + Progress 8 Equality + Belonging 22 Resource Efficiency + Manufacturing 52
Employee Engagement 27 Chemicals Management 56
STRATEGY This Way Ahead: First Jobs 29 Climate 59
Sustainability Strategy 12 Waste 62
Supply Chain + Communities:
Core Focus Areas 13 Circularity 63
Supplier Sustainability 32
Materiality 14
Assessment + Remediation 33
Product Life Cycle 15 PRODUCT
Capability Building 39
Management Approach 16 Product Sustainability 66
P.A.C.E.: Empowering Women 43
Governance 17 Raw Materials 67
Stakeholder Engagement 18 Brand Goals 69
APPENDIX
Sustainable Development Goals 75
SASB Reference Table 76
2019 Global Sustainability Report 4
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Overview
Highlights 6
Our Purpose-Led Brands 7
Goals + Progress 8
Home Overview Strategy Social Environment Product Appendix
Highlights
PEOPLE ENVIRONMENT PRODUCT
Advancing people + communities A healthy planet is a human right Great product designed
with sustainability in mind
Our Employees Water Chemicals Management
1,600+ 11.2B 0
youth hired liters of water saved PFC-based
in manufacturing finishes by 2023
We hired over 1,600 youth facing barriers
to employment through This Way Ahead In early 2020, we achieved our goal to save 10 billion We committed to eliminate PFC-based
(p.29), our first-jobs program. liters of water (p.55) in manufacturing since 2014. finishes (p.57) from our products by 2023.
Supply Chain Workers Climate Circularity
98% 90MW 1X1
sourcing facilities renewable-energy textile circularity
rated green or yellow generation collaboration
We sourced almost exclusively from facilities We signed a 90-megawatt wind project Our collaboration with the Hong Kong Research
rated green or yellow (p.33) as evaluated (p.61), which will generate enough clean energy Institute of Textiles and Apparel (HKRITA) will
against our Code of Vendor Conduct (COVC). to power half of our stores starting in late 2020. accelerate circularity (p.63) models for textiles.
Communities Waste Raw Materials
580K+ 0 100%
women + girls single-use plastics sustainable cotton
empowered by 2030 by 2025
We continued our commitment to scale our P.A.C.E. We committed to eliminate single-use plastics We committed to source all of our cotton from
program (p.43), empowering over 580,000 women (p.62) by 2030 as part of our efforts to reduce more sustainable sources (p.68) including Better
and girls since the program launched in 2007. plastic packaging across our brands. Cotton Initiative (BCI), recycled and organic cotton.
2019 Global Sustainability Report 6
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Our Purpose-Led Brands
We grow purpose-led, billion-dollar brands that have lasting
impact on people and the planet.
For every brand within Gap Inc., sustainability is a business
priority and a critical way to express each brand’s values.
All of our brands have established executive sustainability
steering committees, defined their own priorities and
goals, and led sustainability-strategy workshops with
cross-functional teams. This work has empowered each
brand to build a strategy true to its identity while pursuing
meaningful environmental and social impact.
Modern
We believe in the American WILL WORK FOR A POWER OF SHE
democracy of style. Optimism BETTER REPUBLIC
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On track
Goals + Progress Needs attention
New goal since last report
Holding ourselves accountable is fundamental to our
approach to sustainability.
Below is a snapshot of key goals, our progress to date
and where we are heading in the future. All target years
are fiscal year end. Report data is through fiscal 2019
(February 1, 2020) unless otherwise noted. Additional
detail can be found in respective sections of this report.
Target
SOCIAL Year Status FY2019 Progress (unless otherwise noted)
Our Double the representation of Black and Latinx employees at 2025 NEW New goal. Progress to date:
Employees our U.S. headquarters offices 14% of employees at our U.S. headquarters offices are Black or Latinx
Increase the representation of Black employees in U.S. store 2025 NEW New goal. Progress to date:
leader roles by 50% 9% of U.S. store leaders are Black (2019 baseline)
Support $15 million in annual employee-driven community Ongoing $12.2 million in employee-driven community investment (volunteer hours,
investment employee financial donations and Gap Inc. matching of time and money)
Reach 20,000 youth through This Way Ahead 2025 8,201 youth have participated since the program launched in 2007
(Previous goal: Reach 10,000 youth by 2020)
Hire 5% of entry-level employees from This Way Ahead 2025 2.3% of entry-level employees were hired from This Way Ahead
annually
Supply Chain + 100% of supplier facilities producing branded apparel are 2020 98% of supplier facilities were rated yellow or green
Community rated yellow or green
100% of Tier 1 suppliers transition to digital wage payments 2020 92% of suppliers paid wages via mobile wallet, bank account or debit card
Reach 1 million women through P.A.C.E. 2022 Over 580,000 women and girls have participated in P.A.C.E. since the
program launched in 2007
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On track
Goals + Progress Needs attention
New goal since last report
Target
ENVIRONMENT Year Status FY2019 Progress (unless otherwise noted)
Water Save 10 billion liters of water in manufacturing, from a 2020 11.2 billion liters of water saved since 2014 (achieved in early 2020)
2014 baseline
Water-resilient value chain 2030 NEW New commitment. Establishing baselines and context-based targets
Net-positive water impact in water-stressed regions 2050 NEW New commitment. Establishing baselines and context-based targets
Work toward zero discharge of hazardous chemicals in our 2020 Strategic facilities must comply with the ZDHC MRSL and verify through
supply chain wastewater testing.
Eliminate all PFC-based finishes from our supply chain 2023 NEW New goal. Tracking in progress
Climate Carbon neutral across our value chain 2050 New commitment. Tracking in progress
Reduce GHG emissions by 50% in our owned and operated 2020 23% cumulative GHG emissions reduction (363,586 metric tons CO2e)
facilities globally, from a 2015 baseline since 2015; 100.5 megawatts of energy secured through renewable-energy
contracts or Virtual Power Purchase Agreements (VPPAs)
Source 100% renewable electricity for our owned and 2030 NEW New goal. Progress to date:
operated facilities globally, from a 2017 baseline The VPPAs mentioned above will help us meet this goal.
Reduce absolute Scope 1 and 2 GHG emissions by 90%, 2030 NEW New goal. Progress to date:
from a 2017 baseline 10.3% GHG emissions reduction (2017 baseline)
Reduce Scope 3 GHG emissions from purchased goods and 2030 NEW New goal. Progress to date:
services by 30%, from a 2017 baseline 5.18 million metric tons CO2e in Scope 3 GHG emissions (2017 baseline)
Waste Divert 80% of waste from landfill across our U.S. facilities 2020 65% of waste diverted from landfill; On track to meet goal FY2021
Eliminate single-use plastics 2030 NEW New commitment. Tracking in progress
PRODUCT Eliminate the use of wood-derived fibers sourced from 2025 86% of our cellulosic-fiber volume was compliant with our commitment
ancient and endangered forests
Source 100% of cotton from more sustainable sources 2025 New goal. Progress to date:
57% of cotton was sourced from more sustainable sources in Q1 2020
2019 Global Sustainability Report 9
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On track
Goals + Progress Needs attention
New goal since last report
Target
OUR PURPOSE-LED BRANDS Year Status FY2019 Progress (unless otherwise noted)
Source 100% of cotton from more sustainable sources 2022 NEW New goal. Progress to date:
56% of cotton was sourced from more sustainable sources
Make 100% of denim products using water-saving 2022 NEW New goal. Progress to date:
techniques 88% of denim products were made using water-saving techniques
Source 100% of cotton from more sustainable sources 2021 67% of cotton was sourced from more sustainable sources
Make 75% of qualifying products using Washwell™ water- 2021 42% of qualifying denim products were made using Washwell™
saving techniques
Source 100% of cotton from more sustainable sources 2023 NEW New goal. Progress to date:
75% of cotton was sourced from more sustainable sources
Make 50% of products with more sustainable fibers 2023 NEW New goal. Progress to date:
55% of products were made with sustainable fibers
Make 50% of products using water-saving techniques and 2025 NEW New goal. Progress to date: 1.4% of Spring 2020 products were made with
cleaner chemistry practices in our supply chain techniques that save water or preserve water quality
Make more eco-friendly denim 2023 NEW New goal. Progress to date:
68% of denim was eco-friendly in Q2 2020
Make 80% of materials with sustainable fibers 2020 70% of materials used in product were made with more sustainable fibers
Make 25% of products using water-saving techniques 2020 4% of products were made using water-saving techniques
Divert 80% of store waste from landfill 2020 72% of store waste was diverted from landfill
Empower 10,000 women through P.A.C.E. and Fair Trade 2020 16,555 women have participated in P.A.C.E. or received premiums from
Fair Trade USA since 2007
2019 Global Sustainability Report 10Home Overview Strategy Social Environment Product Appendix
Strategy
Sustainability Strategy 12
Core Focus Areas 13
Materiality 14
Product Life Cycle 15
Management Approach 16
Governance 17
Stakeholder Engagement 18Home Overview Strategy Social Environment Product Appendix
Sustainability Strategy
As one of the world's leading apparel retailers, we
recognize that we contribute to and have the opportunity
to address systemic social and environmental challenges.
We continue to be committed to contributing to our
business; enabling safe, fair working conditions for
the people who make our products; minimizing our
environmental impact; and working with our industry
to achieve progress on global goals. We do this by
addressing impacts in our owned and operated facilities
and collaborating throughout our value chain and across
government, business and civil society. Recognizing the
importance of engaging customers and employees, we
are also communicating through our brands in our effort
to build a more sustainable world.
We align our strategy with the international sustainability
agenda. Guided by frameworks including but not limited
to the UN Guiding Principles on Business and Human
Rights, the UN Sustainable Development Goals (SDGs)
and the Paris Agreement on climate change, we have
identified the issues that are most important to our “The health of our business and the
business and where we have the most influence.
health of our planet are undeniably
connected. We are investing in Gap Inc.
for the future – a portfolio of brands that
is resilient, sustainable and reflective of
our diverse customer base.”
Katrina O’Connell
Chief Financial Officer, Gap Inc.
2019 Global Sustainability Report 12Home Overview Strategy Social Environment Product Appendix
Core Focus Areas
We recognize that we SOCIAL ENVIRONMENT PRODUCT
cannot lead on every
issue. Given our business
operations and strengths,
we prioritize our greatest
opportunities for Our Employees Water Product Sustainability
leadership to maximize We aim to create opportunities for the Water is essential for our business and We work with our Product Designers
impact. employees who support our business in the people and communities where we and Developers to balance the needs of
our stores and headquarters offices. operate. We look for ways to address getting great product into our customers’
water impacts throughout our value chain hands, with efforts to reduce our impact
Gap Inc.’s sustainability and in communities. on the environment.
materiality assessment
sets our overarching
sustainability agenda
and helped to establish
our core focus areas.
Communities Climate Raw Materials
Our P.A.C.E. (Personal Advancement We are reducing our greenhouse gas We believe great products are created
& Career Enhancement) program gives (GHG) emissions through renewable- with sustainability at their core, which
women and girls the foundational life energy projects; and we work with our means going all the way down to the
skills, technical training and support they logistics and procurement partners to earliest stages of the product life cycle
need to advance in the workplace and in improve efficiency and environmental to reduce impacts.
their communities. performance.
Supply Chain Waste
By partnering with our suppliers, we strive We are reducing waste throughout our value
to provide safe, fair and healthy working chain and building circularity programs to
conditions for the individuals who create redefine the life cycle of our products in
our clothes. order to reduce resource consumption.
2019 Global Sustainability Report 13Home Overview Strategy Social Environment Product Appendix
Materiality
We integrate sustainability deeply into our business to MATERIAL ISSUES
create greater impact across our value chain.
Governance + Operating Context
Within sustainability, materiality* refers to the areas • Corporate Governance
of heightened concern from our internal and external • Transparency
• Technology + Product Innovation
stakeholders compared to relevant environmental, social • Resiliency
and governance issues. Our material issues, viewed • Country / Regional Legal + Economic
alongside our value chain, demonstrate focus areas Conditions
where we can develop programs more directly targeted
to the areas of greatest impact.
Human Rights + Social Impact
We prioritize the sustainability opportunities and
• Worker Rights + Well-being
challenges that matter most to our stakeholders and • Income, Wages + Inequality
business. • Human Capital + Development
• Diversity + Inclusion
• Reputation + Consumer Engagement
We periodically refresh our materiality assessment in
order to:
• Identify the most material sustainability issues for
Gap Inc. in terms of business value, risks and Resource Use, Scarcity + Impacts
opportunities for long-term planning
• Water
• Understand how sustainability and key business issues • Chemicals Management + Compliance
intersect • Energy + Climate Stewardship
• Inform future sustainability commitments and • Waste + Circularity
• Sustainable Materials Sourcing
resource allocation
• Support Gap Inc.’s engagement with external Learn more
stakeholders > Materiality
Our material issues fall into three categories: governance *Materiality in this report refers to the definition from
and operating context; human rights and social the Global Reporting Initiative (GRI) Standards, and
is not the definition of materiality used for filings
impact; and resource use, scarcity and impacts. Fifteen with the U.S. Securities and Exchange Commission
sustainability-related aspects guide our strategy. (SEC). Issues deemed material in this report may not
be considered material for SEC reporting purposes.
2019 Global Sustainability Report 14Home Overview Strategy Social Environment Product Appendix
Product Design +
Development
Raw Materials +
Processing
Textile
Manufacturing
Life Cycle Most of a product’s environmental impacts
Tier 3 Suppliers
Our products use many types of fibers –
Tier 2 Suppliers
Fabric mills use large quantities of energy
are determined at the concept phase. natural fibers like cotton and wool, synthetic and water, and the chemicals used to dye
Each stage of a garment’s Thus, our designers’ creative vision can fibers like polyester and spandex, and and finish fabrics may pose a risk to local
have a significant impact on people and pulp-based manufactured cellulosic fibers watersheds if not treated properly. Our
life – from the first design the environment. Our production and like rayon and modal. We work to minimize Mill Sustainability Program establishes
sketches to end of use – sourcing teams bring this vision to life by the social and environmental impacts unique clear environmental standards, which we
presents opportunities to placing orders with independent suppliers. to each fiber. We place a special focus on integrate into our sourcing decisions. We
These teams are trained on sustainability cotton, given its importance to many of our also aim to scale improvements across the
improve the sustainability principles and have significant influence products and water-intensive production industry by working with our peers to identify
performance of our over who makes our clothes. This affords process. We are also taking steps to ensure and share best practices for the responsible
business. Gap Inc. the ability to improve working that we source more sustainable synthetic use of water, chemicals and energy.
conditions in facilities and address our larger and man-made cellulosic fibers.
environmental footprint. Our Programs
Our Programs > Assessment + Remediation (p.33)
Our Programs > Water Stewardship Strategy (p.47) > P.A.C.E.: Empowering Women (p.43)
> Water Stewardship Strategy (p.47) > Climate (p.59) > Water Stewardship Strategy (p.47)
> Chemicals Management (p.56) > Product Sustainability (p.66) > Chemicals Management (p.56)
> Product Sustainability (p.66) > Climate (p.59)
> Circularity (p.63)
Product + Logistics + Retail Consumer Use +
Finishing Distribution Stores Circularity
Tier 1 Suppliers
We believe in a comprehensive approach We ship products through a combination of Our stores express who we are – from our How our customers wear, care for and
for improving working conditions in our sea, air, truck and rail from supplier facilities style to our commitment to operating in discard their clothes accounts for a portion
supply chain, combining facility-monitoring to our distribution centers and then on to a way that cares for both people and the of our products’ total environmental
and capability-building programs to help stores or directly to customers. We use the environment. They are where we sell our footprint. We use product labeling, catalogs,
our suppliers continually improve. We also optimal mix of shipping options based on products and communicate directly with our social media and blog posts to share
engage closely with all of our vendors to speed, cost and sustainability and have employees and customers. As part of our our efforts to improve sustainability. This
measure and address their environmental taken steps to conserve energy and reduce owned and operated footprint, they offer informs customers about our work, inspires
impact. waste at our distribution centers, the largest an opportunity to reduce our environmental them to consider water use in their daily
facilities we own and operate. impact. We also run our This Way Ahead lives, and communicates the urgency of
Our Programs program at our stores to help young people our environmental and social initiatives.
> Assessment + Remediation (p.33) Our Programs experiencing barriers to employment obtain Recognizing that we have an opportunity
> Capability Building (p.39) > Climate (p.59) their first jobs. to improve circularity, we engage in and
> P.A.C.E.: Empowering Women (p.43) > Waste (p.62) contribute to industrywide solutions to end-
> Water Stewardship Strategy (p.47) Our Programs of-life impacts.
> Chemicals Management (p.56) > Equality + Belonging (p.22)
> Climate (p.59) > This Way Ahead: First Jobs (p.29) Our Programs
> Product Sustainability (p.66) > Climate (p.59) > Circularity (p.63)
> Waste (p.62)
> Product Sustainability (p.66)
2019 Global Sustainability Report 15Home Overview Strategy Social Environment Product Appendix
Management Approach
Given our company's size, we recognize our responsibility OUR APPROACH RISK MANAGEMENT
to the planet and to the people touched by our business.
1. Integrate sustainability into Gap Inc. has developed systems and
our business procedures focused on identifying and
Our global scale provides an opportunity to make a real managing risks, including those related to
sustainability.
difference. We do this by enabling long-term business We create broader accountability for our
sustainability strategy by creating shared
performance through managing risks, advancing Our Global Sustainability team works with
goals and targets across Gap Inc. with the
greater equality and opportunity, developing social and relevant business units. While we maintain business partners and experts to assess
environmental innovations that allow people to fulfill their a centralized Global Sustainability function, the importance of potential social and
environmental risks and opportunities for our
potential, and scaling these innovations by integrating we integrate our approaches wherever it
business and external stakeholders, including
helps to deepen or broaden our impact.
them into our business and products. suppliers and the people who make our
products. These include the risks that climate
and environmental impacts could pose to
In addition to aligning our goals with the UN Global 2. Set ambitious goals
our business. The team uses tools to help
Sustainable Development agenda, we take an intentional We focus on key indicators across the prioritize risks and opportunities, including
approach in all of our social and environmental programs. company so that we can measure our a sustainability materiality assessment, an
assessment of representative products and a
progress on delivering real benefits to the
stakeholder-engagement process.
people and communities we serve.
For these materiality and other risk
assessments, we consider such factors as
3. Make progress toward our
the magnitude, likelihood and time horizon
commitments of potential impacts on our business and
stakeholders. We also create country-specific
We contribute in a meaningful way to the
strategies that take into consideration local
people and communities we rely on for our
context when developing our program and
business – which also helps our company
addressing key issues.
succeed.
Learn more
> Our risk-management process
4. Form partnerships with
civil society, governments
and other sectors to increase
collective impact
By partnering with organizations from the
local to the global level, we deliver impact
on a bigger scale and create long-term,
sustainable progress.
2019 Global Sustainability Report 16Home Overview Strategy Social Environment Product Appendix
Governance
SUSTAINABILITY CODE OF BUSINESS communication, including guidance DATA PRIVACY
GOVERNANCE CONDUCT for leaders on how to have effective
conversations with their teams, FAQs, We believe that trust is a cornerstone of
Our governance structure ensures that our Our Global Code of Business Conduct (COBC) policy links and contacts. a great brand and respecting the privacy
Global Sustainability program both meets serves as our ethical compass, articulating our rights of our customers and employees is
the company’s social and environmental commitment to high standards. • Our Global Integrity team conducts an integral part of building that trust. Our
goals and supports our business. annual interviews with employees in comprehensive privacy program includes
We encourage our employees to use our various business units and offices policies, standards and practices focused on
Gap Inc.’s Board of Directors, particularly open-door process for discussing concerns and select suppliers. These interviews keeping the data we collect secure and
the Governance and Sustainability with their supervisor, next-level manager or allow us to gauge how well our respecting privacy rights around the globe.
Committee, oversees our Global human resources representative. Employees employees understand our COBC,
Sustainability program. The board may also contact our Global Integrity remind employees and suppliers of their As a global company, our Privacy Policy
receives regular updates from Chief Legal, team, which oversees our COBC program. responsibilities and our expectations of adheres to laws across the jurisdictions
Compliance and Sustainability Officer, Additionally, we provide a confidential COBC how we engage with one another, and where we do business. While these rights
Julie Gruber, and the leaders of the Global Hotline: a telephone and web-based reporting ensure that employees know how to may vary, we make reasonable efforts
Sustainability team. Julie reports directly to system that is available 24 hours a day, seven report COBC violations. to honor requests even if a country or
Gap Inc. CEO, Sonia Syngal, and meets days a week to employees and anyone who jurisdiction does not require us to do so. Our
regularly with Gap Inc. Chief Operating conducts business with Gap Inc. or is affected • Senior-level employees must certify privacy policies have received accolades for
Officer, Shawn Curran. by our business. We have investigative teams their COBC compliance annually and their clarity and simplicity, and we continue
that log, process and address complaints are briefed on relevant compliance and to put privacy at the center of our customer
Our organizational structure allows received through any channel, including our integrity topics to raise their awareness. experience.
collaboration across key departments. Our COBC Hotline.
Global Sustainability team works closely We are diligent about addressing corruption Maintaining brand trust is paramount as we
with our brands’ Product and Marketing Key aspects of how we implement our COBC: risks, particularly in developing countries continue to embrace technology. Our goal is
teams, as well as our Supply Chain, with limited rule of law. We have a to provide the highest quality experience to
Corporate Strategy, Government Affairs, • All employees globally are required to take companywide program for monitoring, our customers while respecting their
Public Affairs, Legal and Gap Foundation a COBC overview course within 30 days of enforcing and addressing any issues related privacy. We have adopted seven
teams, among others. their initial hire date. to our Anti-Corruption / Anti-Bribery principles that guide our choices as we
Policy, which combines elements from our adopt new products and services. These
Learn more • We provide ongoing compliance training COBC with anti-bribery requirements under principles include consent, control,
> Sustainability Governance to relevant employees on topics of the Foreign Corrupt Practices Act (FCPA) fairness, minimization, confidentiality,
> Corporate Governance nondiscrimination and harassment, and other similar laws around the world. access and accountability. We also know
wage and hour compliance, workplace The policy and related training programs that security is at the center of any good
accommodations, anti-corruption, help employees recognize and avoid corrupt privacy program. We use widely accepted
competition law compliance, and data business practices in all aspects of Gap security standards and practices to guide
privacy and security. Our Global Integrity Inc.’s business. our decisions around securing personal
team also conducts periodic live training information.
sessions throughout the year. Learn more
> Code of Business Conduct (COBC) Learn more
• We provide a variety of online self-help > Policies > Privacy Policy
tools for compliance education and
2019 Global Sustainability Report 17Home Overview Strategy Social Environment Product Appendix
Stakeholder Engagement
Advancing progress We have a multitude of key stakeholders: the Our approach to working with stakeholders With over two decades of experience in
people who make our clothes, customers, is guided by both a proactive engagement engaging stakeholders, we know there
on systemic issues in suppliers and facilities, employees, unions, strategy, and our belief that it is important is no single formula for the frequency or
the apparel sector – governments, multilateral institutions, NGOs, to respond to any credible inquiry that is mode of engagement that we pursue. We
such as water access, industry associations, investors, communities relevant to potential misconduct in our supply balance regularly scheduled meetings
and others. We also belong to a number chain. Our Global Partnerships team, along and calls – to systematically capture and
climate change, women’s of organizations that enable us to more with our Supplier Sustainability team, is respond to stakeholder feedback – with
empowerment, and safe effectively collaborate with and learn from responsible for managing and implementing dialogue and engagement in the moment
and fair working conditions stakeholders. Multistakeholder initiatives our stakeholder engagement strategy, and as issues arise. Importantly, we have
bring together organizations and people from is in regular dialogue with expert labor and developed the relationships and connections
– demands collaboration
different sectors, all of whom play a key role in human-rights organizations around the world. necessary to bring a broader perspective and
and jointly developed finding new approaches and creating collective Our Supplier Sustainability team engages with multistakeholder approach to the issues with
approaches. action. community-based organizations, NGOs and which we wrestle.
trade unions at the local level enabling them
Having operated a variety of facility-focused to gather insight into facilities’ employment Learn more
We engage stakeholders programs in the 25 years since our Global practices and working conditions. This insight > Our stakeholder-engagement approach
and establish partnerships Sustainability team was established, we helps augment the findings we gather through > A full list of our initiatives and partner
with diverse groups of have developed a comprehensive network the assessments, training and surveys that we organizations
of stakeholders on whom we rely for insight, conduct at our suppliers’ facilities around the
experts and organizations guidance and accountability. world. These networks and the issues that they
to more clearly understand surface are one of the primary inputs into how
complex issues and local One area where stakeholder engagement we evolve and improve our programs focused
has supported progress is improving labor on catalyzing improvements in labor standards
conditions in the countries standards in our supply chain. We regularly and working conditions.
where we do business. partner, both formally and informally, with a
This dialogue helps us to broad set of stakeholders to help us ensure When issues arise, we seek to work with
that we are maximizing our impact. These suppliers, unions, worker-representative
improve our programs, stakeholders range from local trade unions organizations, and local and international
refine strategies, reveal in the countries from which we source, to NGOs that have expertise and connections in
unexplored issues and international NGOs and multilateral institutions, that area. Our aim is to prioritize the impact
each with a specific expertise and focus. on affected parties and come to a resolution
scale industry solutions.
Within this diverse group, our approaches and that is fair and ethical given the events that
practices are not always agreed upon, but we transpired. We take what we learn from
remain open and willing to work with any entity, these experiences to continually improve our
provided it will help us achieve our objectives: processes and protocols in responding to
to improve worker well-being, labor standards, future issues, and seek to partner with other
working conditions and the overall social buyers, governments and stakeholders to
performance of our suppliers’ facilities. apply these lessons more broadly.
2019 Global Sustainability Report 18Home Overview Strategy Social Environment Product Appendix
Social
Our Employees:
Talent 20
Equality + Belonging 22
Employee Engagement 27
This Way Ahead: First Jobs 29
Supply Chain + Communities:
Supplier Sustainability 32
Assessment + Remediation 33
Capability Building 39
P.A.C.E.: Empowering Women 43Home Overview Strategy Social Environment Product Appendix
Talent
Our business success depends on our people. OUR APPROACH and increases their engagement at work,
which contributes value to our business.
Our workplace culture and benefits are
We cultivate a culture that attracts and engages talented designed to meet the professional and We invest in new programs to expand and
employees and gives them opportunities to achieve personal needs of our employees and their enhance our training programs and resources
and we are adopting a new approach to
their work and life goals, and we provide programs and families.
seeking employee feedback: more frequent
customized experiences to help our people achieve their Over the years, we have built on our surveys that help us check the pulse of our
full potential. foundation of putting people first. This includes people and respond more quickly to their
improving wages and scheduling practices needs.
so that the people who work in our stores
Our talent practices are aimed at developing a diverse experience greater stability and flexibility. Looking ahead to 2020 and beyond, we will be
pipeline of employees, giving individuals new challenges to We also offer financial incentives, work-life exploring strategies and programs focused on
building the workplace of the future, with our
help them grow into roles with greater responsibility, and integration and benefits that help employees
make the most of their professional and people at the center.
cultivating great leaders who can build great teams. We
personal lives. This all supports employees
believe in our employees’ potential and provide myriad
career opportunities for those who want to learn and
grow with us.
Old Navy Named a 2019 Best Workplace in Retail
Learn more
> How we help our employees realize their potential Great Place to Work and Fortune named Old Navy on its list of 2019 Best Workplaces
in Retail for the third consecutive year, an honor that came the same year the brand
celebrated its 25th anniversary. Great Place to Work, the global people analytics and
consulting firm, determined the honorees based on the results of an anonymous survey
of more than 694,000 employees working at Great Place to Work-certified organizations
in the retail industry.
In 2019, Old Navy focused on fostering a purpose-led culture by creating powerful
moments that bring fun and creativity into work every day. As part of its 25th birthday
celebration, Old Navy demonstrated its core value of belonging by being the first retailer
to extend the Open to All pledge beyond the U.S. to Old Navy stores in Mexico and
Canada. Old Navy is one of the founding partners to sign the pledge, which is a public
commitment to protect customers from discrimination. Old Navy is proud to be open for
everyone, and open to ideas, differences, dialogue and change.
The brand has also invested in employee programs focused on learning, creativity and
wellness. Old Navy is home to Gap Inc.’s successful This Way Ahead program (p.29),
which helps young people with barriers to employment obtain their first jobs.
2019 Global Sustainability Report 20Home Overview Strategy Social Environment Product Appendix
Talent
BUILDING TALENT In 2019, we also continued our LinkedIn EMPLOYEE OPINION SURVEY
Learning program for the second year,
72%
We invest in Gap Inc. people at every level of providing employees with access to We value our employees’ feedback and use
our organization through accessible resources micro-courses on topics from strategic opinion surveys as a critical component of
and structured training programs that offer thinking and mental agility, to equality our ongoing listening strategy. We use these
all employees opportunities for development. and belonging and communicating insights to understand what is important to our
By delivering best-in-class training, we aim to with confidence. Through this platform, employees and to determine where we should
employees can work through courses
inspire and engage Gap Inc. talent through focus our investments and build new programs employee opinion survey
a consistent framework that empowers based on their development interests and and strategies that help us create a thriving,
employees to drive their work forward while recommendations by Gap Inc. and their productive work environment.
participation
building strong relationships. peers. To date, over 4,000 employees (up from 62% in 2018)
have accessed the platform and since its We are modernizing our approach to soliciting
Our enterprise-wide approach to building talent October 2018 launch, our employees have employee feedback, shifting from an annual
meets employees wherever they are on their viewed more than 40,000 courses. companywide opinion survey to more frequent
professional journey: individual contributor, pulse surveys on topical issues. This allows
new or seasoned manager, director or GREAT BOSSES us to capture real-time data so we can
executive.
We know that one of the primary reasons
understand and respond faster to employees’
immediate needs. We now issue surveys to
81%
We create, manage or offer over 16,000 people stay in their jobs is because they representative samples of employees based
courses for employees that cover a range of have great bosses. Great bosses build on the topic, with an aim to have all employees
subjects: goal setting, how to be a great boss, great teams, and great teams contribute participate in at least one survey every quarter.
situational leadership, unconscious bias and great value to the company. We focus on Each survey is fewer than 20 questions,
employees reported
inclusive leadership, how to have powerful developing our leaders’ ability to connect, and we share results through our ongoing active engagement
conversations and more. Our enterprise listen to feedback and continually improve. employee communications. (up from 69% in 2018)
learning efforts combine classroom-based
experiences with virtual learning, homework, Our Great Bosses program focuses on
hands-on workshops and ongoing learning 10 practical ways our people can “boss
opportunities. better,” like rewarding successes; being
honest, curious, and open-minded; and FIELD TO HQ We have always encouraged hiring store
In 2019, we expanded our training for mid- understanding that progress is better than employees to our headquarters teams and,
level managers through a one-to-one coaching perfection. Fueling our entry-level headquarters roles with in 2017, formalized a program in which
program that prepares these managers for incredible talent is important to our success, we actively market opportunities to store
senior leadership roles. Through a virtual Additionally, our Great Boss Survey is a and field employees are a key source of talent employees, support candidates through the
platform, employees ranging from manager vehicle for managers to receive actionable for these roles. recruiting process, and provide a custom
to vice president connect with experienced feedback directly from the people they lead. onboarding experience to ensure a successful
coaches to receive customized guidance In the spirit of continuous improvement, we Our diverse field employees work with transition. In 2019, 1.5 percent of our entry-
that takes into account each participant’s conduct this survey twice a year and the customers every day and understand what level headquarters roles were filled by field
unique situation. In 2019, over 150 employees results go directly to managers. they need and want. Their connection to employees. Though we had a goal to fill 20
benefited from coaching and 89 percent of customers and understanding of how our percent by 2020, shifting corporate priorities
participants reported reaching their coaching stores work is invaluable at our headquarters. have led to uncertain hiring needs, making it
objectives. challenging to meet this goal.
2019 Global Sustainability Report 21Home Overview Strategy Social Environment Product Appendix
Equality + Belonging
Since our founding, we have embraced core company values
that include celebrating individuality, diversity and treating
all people equally – with respect, dignity and fairness.
Being an inclusive company is both a moral and a business
imperative: It sends a message to the world that we stand
for equality for all and that business can and should be a
force for good. And it makes us a better, stronger company
that reflects and serves the world in which we operate.
We know we are not perfect, but we are committed to
making the necessary changes within our company and Banana Republic's inclusive range
of nude necessities –True Hues –
beyond. We see an opportunity to stand alongside our is designed for every skin tone.
employees and other industry leaders to work toward
greater equality and a sense of belonging for everyone.
This helps our company attract and retain the best
employees, create great products for all of our customers, New Goal New Goal
foster creativity and innovation, and contribute to a more Double the representation Increase the representation
inclusive and just world. of Black and Latinx of Black employees in U.S.
employees at our U.S. store leader roles by 50%
Our ongoing empowerment, employee and workforce headquarters offices by 2025
programs support the rights and well-being of the people by 2025
who embody and drive our business, ensuring they
have equal opportunity and support to develop – both
personally and professionally. Our new commitments,
made in 2020, reflect our ambition to do better, listen
more and drive greater change – starting within our 14% 9%
company and using our influence to enact systems change.
We are devoted to creating a culture of belonging for our
teams, our customers and future generations. Black + Latinx Black employees
employees at our U.S. in U.S. store leader roles
Learn more
> Our commitment to equality and opportunity
headquarters offices 2019 baseline
2019 baseline
2019 Global Sustainability Report 22Home Overview Strategy Social Environment Product Appendix
Equality + Belonging
OUR APPROACH Step 1 Step 2 Step 3
We have a long history of striving First, we acknowledged that we have more Those conversations informed our second The last step we have taken is toward greater
for equality, and in 2019 and 2020, work to do, taking time to listen to feedback step: setting bold new commitments transparency. Since 2007, we have publicly
deepened our commitments and from our employees. We appreciate those that will foster change in our company reported our global employee gender data and
engagement, elevating our ambition who engaged in these conversations – and beyond. We have established overall U.S. race and ethnicity data. Starting
in response to rightful calls that real they have helped our company understand commitments in three areas (below). in 2020, we will regularly share additional data
progress on racial justice is long overdue. more deeply what it means to be an ally. on how our employees identify their race and
In addition to continuing our strong ethnicity at both stores and headquarters. We
programs and resource groups that foster will also create a new Equality and Belonging
diversity and inclusion, Gap Inc. has report in 2021 to talk openly about our
taken three important steps in 2020. progress and the lessons we have learned
along the way.
Commitment 1: Our Employees Commitment 2: Our Brands Commitment 3: Our Communities
By 2025, we will double the representation of We believe it is our responsibility to ensure that The third pillar of our commitments relates to
Black and Latinx employees at all levels in our everyone feels seen in the products we make and systems change. We see three opportunities for
U.S. headquarters offices, and increase the sell. Gap Inc. to support progress beyond our business:
representation of Black employees by 50 percent through civic engagement; investments that improve
in store leader roles in the U.S. We are proud to Our brands are committed to building and expanding the apparel industry’s accessibility and talent
employ a 76-percent female workforce globally, and initiatives such as True Hues, a product-inclusion pipeline; and policy and advocacy aimed at ending
that 56 percent of our U.S. staff identify as people strategy with a focus on Black consumers. It is racial inequality.
of color. currently developing capsule collections featuring
Black designers and artists. True Hues was initiated We are making it easier for our employees to
But we have more work to do to fully represent the by the Color Proud Council, a cross-enterprise body participate in the democratic process, including
communities we serve. Improving representation founded by employees in 2018 to focus on inclusion providing paid time off for voting. We are also
is one step, but hiring the right talent is not in product design, merchandising and marketing. In partnering with organizations such as Open to All,
enough. We will continue our efforts to cultivate 2020, we formalized the Color Proud Council within the NAACP and Embrace Race to engage with our
a deep sense of belonging, and also increase our brands as a critical and necessary partner in customers, schools and communities on racism and
our investment in pay equity. Since 2014, we achieving a 'best product, best experience' approach social justice. Our longstanding This Way Ahead
have conducted annual reviews of our pay data to the product life cycle. Our brands are committed program (p.29), 95 percent of whose alumni
by gender and, starting in 2020, we will have an to creating online and store experiences that identify as people of color, is helping to create a
external firm assess our pay data by race for all authentically serve all customers and communities diverse pipeline of talented future leaders. We are
U.S. employees. We are committed to fixing any and amplify Black voices. We are also including anti- also proud to continue our partnership with Harlem’s
disparities we find. racism training as part of our ongoing employee- and Fashion Row to champion the next generation of
customer-belonging initiatives. designers.
2019 Global Sustainability Report 23Home Overview Strategy Social Environment Product Appendix
Equality + Belonging
EQUALITY + BELONGING communities where we do business, as TRAINING + RESOURCES launched our Be One. Get One. program to
NETWORK GROUPS well as develop a company culture that empower employees to take an active role in
embraces differences and individuality. Inclusion Training their own development and the development
Gap Inc. Equality + Belonging Network Groups of others.
are employee-led, company-sponsored Gap Inc. proudly supports the following In 2017, we launched a series of unconscious-
communities representing employees from Equality and Belonging Network Groups: bias trainings to employees that we expanded SUPPLIER INCLUSION
diverse backgrounds. They express, represent to our global workforce in 2018. We also PROGRAM
and advocate for equality and belonging for • AANG: African American Networking created curricula and accessible resources
Gap Inc. employees. Group that support equality and belonging. We want We are committed to increasing the diversity
• ASIA: Asians Supporting Inclusion and our leaders and employees to identify how of the suppliers we use, helping diverse
These groups provide opportunities for cross- Awareness unconscious bias and other issues present in businesses become competitive industry
cultural learning, mentoring and relationship • GEAR: Gay Employees, Allies and their everyday work. Through our commitment leaders and enhancing the economic vibrancy
building. They organize networking and Resources, an LGBTQ employee and to the CEO Action for Diversity & Inclusion, of the communities we serve. Our Supplier
volunteering events to encourage belonging, ally group we continued to provide unique and engaging Inclusion Program, launched in January 2018,
foster awareness of under-represented • Gap Parents education opportunities. provides a framework to increase our work
groups, and provide personal and professional • GAPWIL: Women in Leadership with companies that are owned by or employ
development. • HOLA: Honoring Our Latino Ancestry Be One. Get One. a large percentage of minorities, veterans,
women and people with disabilities. Through
Our network groups also help build a Learn more At Gap Inc., we value mentorship as a this program, we are forming new partnerships
workforce that reflects our customers and the > Equality + Belonging Network Groups developmental process that helps build to expand our networks to connect with a more
incredible careers. We view it as a personal diverse set of companies.
journey that works best when people connect
organically, instead of relying on matching Learn more
systems and formalized reports. In 2018, we > Supplier Inclusion Program
2019 Global Sustainability Report 24You can also read
