Climate Change Data

Chico's FAS, Inc.

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022)

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Environmental Sustainability
  • Ethical Sourcing
  • Employee Well-being
  • Community Engagement

Environmental Achievements

  • Saved over 759 trees through the Shred-It recycling program in 2019
  • Replaced 90% of on-campus lighting with high-efficiency LED lighting at NSSC
  • Replaced aged HVAC equipment with high-efficiency units at NSSC and stores
  • Implemented eco-friendly containers in NSSC cafes
  • 27% of Soma bras made in a LEED Platinum-certified facility
  • Soma implemented 3D sampling technology to reduce physical samples shipped
  • Utilized low-flush toilets, programmable thermostats, and high-efficiency LED lighting across stores
  • Four ocean carriers follow IMO 2020, limiting sulfur in fuel
  • Strategically consolidated domestic shipments to reduce truck usage
  • All domestic trucking partners are EPA SmartWay® High Performers
  • All commercial invoices and packing lists generated electronically

Social Achievements

  • Established an associate-led Sustainability Committee with Board oversight
  • Launched an internal website with sustainability tips
  • Soma Bra Donation and Recycling programs resulted in reuse/repurposing of nearly 2 million bras
  • Brands regularly collect gently used work wear to donate
  • Provided Associates with Material Safety Data Sheets (MSDS)

Governance Achievements

  • Established an associate-led Sustainability Committee with Board oversight
  • Implemented an Ethical Sourcing of Animal Products policy

Climate Goals & Targets

Environmental Challenges

  • Reducing environmental impact throughout the supply chain
  • Ensuring ethical sourcing of animal products
Mitigation Strategies
  • Established Sustainability Committee
  • Implemented various environmental programs across NSSC, stores, and distribution center
  • Partnered with Staples for environmentally friendly office supplies
  • Encouraged suppliers to improve sustainability efforts
  • Conducted product testing for chemicals and toxins
  • Implemented Ethical Sourcing of Animal Products policy

Supply Chain Management

Responsible Procurement
  • Considering sustainability capabilities when selecting new suppliers
  • Encouraging existing suppliers to improve sustainability efforts
  • Ethical Sourcing of Animal Products policy

Climate-Related Risks & Opportunities

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Environmental Sustainability
  • Ethical Sourcing
  • Employee Well-being
  • Community Engagement

Environmental Achievements

  • Constructed a Florida Green Commercial Building at the National Store Support Center
  • Replaced aged HVAC equipment with high-efficiency units across multiple locations
  • Replaced 90% of on-campus lighting with high-efficiency LED lighting at NSSC
  • Implemented a fleet of bicycles and electric vehicles for on-campus transportation at NSSC
  • Provided EV-charging stations for employees at NSSC
  • Utilized Lee County’s integrated Solid Waste Management System for waste processing
  • Saved over 759 trees through the Shred-It® recycling program in 2019
  • Launched an internal website with tips on reducing environmental footprint
  • Introduced eco-friendly biodegradable containers in NSSC cafes
  • 27% of Soma bras made in a LEED Platinum®-certified facility in 2019
  • Soma Bra Donation and Bra Recycling programs reused/repurposed nearly 2 million bras since 2010
  • Soma implemented 3D sampling technology to reduce physical sample shipments
  • Introduced products featuring recycled polyester, organic cotton, Tencel®, EcoVeroTM, and NaiaTM
  • Utilized low-flush toilets, programmable thermostats, high-efficiency LED lighting, and low-VOC paints in stores
  • Replaced aged HVAC equipment with high-efficiency units in stores
  • Installed automated light sensors to reduce energy use at the Global Distribution Center
  • Implemented green optimization efforts in logistics (IMO 2020 compliant carriers, port selection, freight consolidation, SmartWay® High Performers)

Social Achievements

  • Established an Associate-led Sustainability Committee in 2019
  • Philanthropic efforts (details in separate document)
  • Improved lives of those who work at and with the Company (details in separate document)
  • Completed phase-out of cotton sourced from Xinjiang in 2020
  • Each brand regularly collects gently used work wear to donate to women in need
  • Provided Associates with Material Safety Data Sheets (MSDS)

Governance Achievements

  • Sustainability Committee with oversight by the Board of Directors
  • Annual Conflict Minerals Report in accordance with Conflict Minerals Policy
  • Supplier audits to ensure compliance with AAFA RSL and Codes of Conduct and Ethics

Climate Goals & Targets

Environmental Challenges

  • Environmental impact in the supply chain
  • Sourcing ethical raw materials
  • Managing chemical footprint and water usage
  • Ensuring humane treatment of animals in supply chain
Mitigation Strategies
  • Tier 1 supplier facility E&S audit questionnaire to gain insight into suppliers’ environmental and social practices
  • Phasing out cotton from Xinjiang and implementing a certification program with suppliers
  • Introducing more sustainable raw materials (recycled polyester, organic cotton, Tencel®, EcoVeroTM, NaiaTM, linen)
  • Ethical Sourcing of Animal Products policy with due diligence requirements
  • Supplier compliance with AAFA RSL and Codes of Conduct and Ethics

Supply Chain Management

Responsible Procurement
  • Global Code of Conduct
  • Chico’s FAS, Inc. Code of Ethics
  • AAFA Restricted Substance List (RSL) compliance
  • Consideration of sustainability capabilities and goals when selecting new suppliers
  • Encouragement of continuous improvement in sustainability efforts among existing suppliers
  • Product testing for certain chemicals and toxins

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Products featuring recycled polyester, organic cotton, Tencel®, EcoVeroTM, and NaiaTM

Reporting Period: 2021

Environmental Metrics

Total Energy Consumption:9,900 MWh/year (DC)
Water Consumption:1,300 kgal/year (DC)
Waste Generated:1,417 tons/year (recycled)

ESG Focus Areas

  • Women's Empowerment
  • Inclusion & Diversity
  • Responsible Supply Chain
  • Circularity
  • Sustainable Innovation
  • Information Security and Privacy
  • Sustainable Operations
  • Ethics and Integrity
  • Corporate Governance

Environmental Achievements

  • Recycled 1,417 tons of cardboard, paper products, corrugated, plastic, and metal scrap from our NSSC and DC
  • Approximately 70,100 trees saved via Shred-It® since inception
  • 41% of Soma bras are made in ISO 14001:2015 factories, which are also Global Recycled Standard (GRS), Global Organic Textile Standard (GOTS), Organic Content Standards (OCS), or LEED Platinum® certified factories
  • 92,000+ laser-processed pairs of denim delivered to Chico’s brand

Social Achievements

  • 100% of new hires are introduced to our Inclusion & Diversity (I&D) programs & inclusive culture
  • Launched Leadership Summer Camp
  • Implemented Top Talent Program
  • Donated approximately 9,900 bras through Soma’s Bra It Forward campaign
  • Collected 8,099 pairs of jeans through WHBM’s Give Back: Denim Recycling Program

Governance Achievements

  • Established a Board-level ESG Committee and Executive-level ESG Steering Committee
  • Developed mid-term ESG goals
  • 100% compliance with the 108 controls of the NIST Cybersecurity Framework

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce landfill waste by aligning brands on and adopting at least one new sustainable packaging opportunity per year for 3 years
  • Analyze, disclose, and engage with Tier 1 factories on water consumption, energy use, and waste output, aiming for at least a 1% annual reduction for 3 years
  • Introduce 2-3 sustainable fabrics, innovations, or technologies annually for 3 years
  • Enhance racial and ethnic diversity of workforce
  • Develop expanded product assortments for diverse body types
  • Implement Higg Index sustainability reporting for top 80% of Tier 1 vendors and factories
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic impact on supply chain (limiting on-site audits)
  • Data limitations in supply chain reporting (not all factories reported on optional metrics in Higg Index)
Mitigation Strategies
  • Accepting certain third-party audits under specific conditions to reduce audit fatigue
  • Implementing Higg Index sustainability reporting for 80% of Tier 1 vendors and factories by 2025
  • Surveying Tier 1 factories to establish environmental baselines

Supply Chain Management

Supplier Audits: 73% of Tier 1 factories audited in 2021

Responsible Procurement
  • Global Vendor Code of Conduct
  • Supplier certifications (e.g., ISO 14001, Higg Index)
  • Conflict Minerals Policy
  • Supplier Certification for the Ethical Sourcing of Animal Products

Climate-Related Risks & Opportunities

Physical Risks
  • Weather-related disasters
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB Standards, UN SDGs, TCFD (in process of review)

Certifications: ISO 14001 (some factories), LEED Platinum® (some factories), GRS (some factories), GOTS (some factories), OCS (some factories)

UN Sustainable Development Goals

  • Goal 5 (Gender Equality)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 10 (Reduced Inequalities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 17 (Partnerships for the Goals)

Initiatives align with various SDG targets related to gender equality, water and energy efficiency, responsible consumption, climate action, and partnerships

Sustainable Products & Innovation

  • Chico’s No Iron collection
  • Soma’s Bodify™ Bra
  • Products using recycled polyester and nylon

Awards & Recognition

  • Forbes: Best Employers for Women, Best Employers for Diversity
  • Human Rights Campaign: Corporate Equality Index
  • Newsweek: Best Customer Service

Reporting Period: 2022

Environmental Metrics

Total Energy Consumption:111,142 MWh (U.S. operations)
Water Consumption:40,045 kGal (U.S. operations)
Waste Generated:14,280.94 tons (Higg Factories reporting)

ESG Focus Areas

  • Women's Empowerment
  • Inclusion & Diversity
  • Responsible Supply Chain
  • Circularity
  • Sustainable Innovation
  • Information Security and Privacy
  • Sustainable Operations
  • Ethics and Integrity
  • Corporate Governance

Environmental Achievements

  • Introduced 36 new Mindful Fabrics into product designs.
  • Switched to recyclable low-density polyethylene poly bags for product packaging (starting Fall 2023).
  • Increased use of 3D digital garment technology, digital printing, and laser finishing to increase efficiencies and reduce environmental impact.
  • Increased Higg Index reporting by Tier 1 factories by 100%.

Social Achievements

  • Enhanced Associate attraction efforts and initiated proactive steps to improve internal reporting on recruitment and retention.
  • Championed diversity, equity, and inclusion through training and awareness programs.
  • Developed products with customer confidence in mind, using customer insights from stylists, panels, wear tests, and reviews.
  • Donated 51,300+ bras through Soma's Bra It Forward campaign.

Governance Achievements

  • Enhanced data collection and reporting processes for increased transparency.
  • Leveraged ESG frameworks (SASB Standards, UN SDGs, Investor Stewardship Group’s Corporate Governance Principles) and ESG ratings to guide progress.
  • Published Human Rights Policy, Political Action Statement, and Environmental Policy.
  • Updated Global Vendor Code of Conduct.

Climate Goals & Targets

Long-term Goals:
  • Measure baseline Scope 1 & 2 GHG emissions by FY2023 and develop emissions-reduction plan by FY2024.
  • Identify women’s empowerment programs for engagement by FY2023.
  • Complete initial mapping of Tier 1 value chain by FY2023.
Medium-term Goals:
  • Reduce Tier 1 factory environmental impact by at least 1% per year for 3 years.
  • Introduce 2-3 fabrics, innovations, or efficiencies annually for 3 years to reduce environmental footprint.
  • Implement Higg Index sustainability reporting for top 80% of Tier 1 vendors and factories.
  • Enhance racial and ethnic diversity of workforce.
Short-term Goals:
  • Reduce landfill waste by aligning brands on and adopting at least one new sustainable packaging opportunity per year for 3 years.

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic (limiting on-site factory audits).
  • Data limitations in self-reported factory data (water, energy, waste).
Mitigation Strategies
  • Accepted third-party audits in lieu of on-site audits during the pandemic.
  • Refined data gathering and analysis methodology, improved survey questions, and updated data analysis methodology for improved accuracy and standardization to address data limitations.

Supply Chain Management

Supplier Audits: 77% of Tier 1 factories audited in 2022.

Responsible Procurement
  • Global Vendor Code of Conduct
  • Conflict Minerals Policy
  • Animal Welfare Policy
  • Human Rights Policy
  • Sustainable material sourcing

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather (Hurricane Ian)
Opportunities
  • Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: SASB Standards for Apparel, Accessories and Footwear and E-Commerce, UN SDGs, TCFD (in review)

Certifications: ISO 14001 (Jiva Design), ISO 14064 (Jiva Design), OEKO-TEX®, ZDHC MRSL, CTPAT Tier 3

UN Sustainable Development Goals

  • Goal 5 (Gender Equality)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 10 (Reduced Inequalities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 17 (Partnerships for the Goals)

Initiatives align with various UN SDG targets related to gender equality, water and energy efficiency, waste reduction, responsible consumption, climate action, and partnerships.

Sustainable Products & Innovation

  • Mindful Fabrics
  • Recycled materials
  • 3D digital garment technology
  • Digital printing
  • Laser finishing
  • Ozone processing

Awards & Recognition

  • Seramount 2022 Top Companies for Executive Women
  • Newsweek 2022 Top 100 Most Loved Workplace
  • Forbes 2022 Best Employer for Women
  • Forbes 2022 Best Employer for Diversity
  • Human Rights Campaign 2022 Best Places to Work Corporate Equality Index