Climate Change Data

Environmental Metrics

ESG Focus Areas

• Labour Practices
• Community Relations
• Environmental Sustainability

Environmental Achievements

• Implemented a biological high-efficiency wastewater treatment system (biotope) at its Rio Nance textile plant in Honduras and its new Dominican Republic textile facility.
• Renewed Oeko-Tex Standard 100 certification.

Social Achievements

• Constructive engagement with NGOs (Maquila Solidarity Network and Worker Rights Consortium).
• Verité training and auditing program implemented across facilities.
• Major sponsorship of Dans la rue (Montreal-based organization helping homeless youth).
• Initiated and led corporate sponsorship of the Central American Polytechnic Institute (IPC), donating US$500,000 and committing to a five-year scholarship program (US$300,000 annually).
• Expanded WRAP certification to several sewing facilities.

Governance Achievements

• Commitment to establishing a strong internal corporate social responsibility compliance function by the end of fiscal 2006.

Climate Goals & Targets

Environmental Challenges

• Issues and concerns raised by NGOs regarding labor practices.
• Security conditions in Haiti preventing on-site audits.

Mitigation Strategies

• Engaged Verité for comprehensive training and auditing.
• Developed corrective action plans to address audit findings.
• Built constructive relationships with NGOs to resolve issues.
• Postponed Haiti audits due to security concerns.

Supply Chain Management

Responsible Procurement

• Environmental Code of Practices (ECP) requiring exclusion of harmful chemicals and preference for biochemistry technology.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: FLA, WRAP

Certifications: WRAP, Oeko-Tex Standard 100

Third-party Assurance: EMIH (local Honduran NGO) for El Progreso plant reintegration program; Verité for social compliance audits

Environmental Metrics

ESG Focus Areas

• Labour Practices
• Community Relations
• Environmental Sustainability
• Corporate Governance

Environmental Achievements

• Renewed Oeko-Tex Standard 100 certification for all activewear, underwear, and athletic sock product lines.
• Developed a company-wide environmental management system plan for 2007 implementation.
• Developed a salt recovery system to reuse salt from wastewater in the dyeing process (pilot testing in 2007).

Social Achievements

• Developed and implemented a new integrated code of conduct incorporating FLA and WRAP standards.
• Established a corporate social responsibility working group.
• Created a social compliance tracking system tool.
• Implemented a new structured program for offshore locations supporting humanitarian aid and youth/education.
• Acquired Kentucky Derby Hosiery Co., Inc.

Governance Achievements

• Ranked in the top 10% in the 2006 Globe and Mail Report on Business corporate governance survey.
• Six of seven Board members are independent.
• Implemented an Ethics and Integrity policy with a 24/7 toll-free hotline for reporting improper practices.

Climate Goals & Targets

Environmental Challenges

• Closure of manufacturing capacity in Canada and the U.S. due to global competition.
• Restructuring of Kentucky Derby’s manufacturing operations to improve cost competitiveness.
• Political instability in Haiti hampering audit processes.

Mitigation Strategies

• Providing support to alleviate the transition for affected North American employees (pre-notices, psychological assistance, employment transition services).
• Offering jobs at a new retail distribution center in Martinsville, Virginia to Kentucky Derby employees affected by the consolidation of distribution operations.
• Relocating basic high-volume sock production to a new state-of-the-art facility and concentrating remaining operations on value-added specialty products.
• Continuing to evaluate the economics of North American manufacturing operations based on global competitiveness.

Supply Chain Management

Supplier Audits: 18 facilities audited or verified in 2006 by Verité, Accordia, and FLA.

Responsible Procurement

• Environmental Code of Practice (ECP) requiring materials to be free of environmentally harmful substances.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: FLA, WRAP

Certifications: Oeko-Tex Standard 100, WRAP (selected facilities)

Awards & Recognition

• Mercuriades Award in Social Responsibility and Sustainable Development
• CAFTA Regional Development Award
• Award from Textile Industry of Quebec’s Sectional Committee of Labour
• Recognition from INCAE University in Costa Rica

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Labour Practices
• Community Relations
• Environmental Sustainability

Environmental Achievements

• Developed and implemented a brine recovery system to reuse salt in the dyeing process.
• Developed and implemented a company-wide Waste Management System based on the 4R-D concept.
• Completed a greenhouse gas (GHG) emissions inventory for 2006.

Social Achievements

• Obtained Fair Labor Association (FLA) accreditation for its labour compliance program.
• Maintained or obtained WRAP certification for all sewing facilities and encouraged contractors to seek certification.
• Implemented health prevention programs for employees, including vaccinations, women's health initiatives, and STD awareness campaigns.
• Continued the Educatodos program to reduce illiteracy and promote education.

Governance Achievements

• Received the Korn/Ferry International “Lighthouse” prize for best corporate governance among mid-sized businesses in Quebec.
• Ranked third among the top 25 boards in the seventh annual ranking of corporate governance in Canada by Canadian Business Magazine.
• Ranked second among 190 Canadian publicly-listed corporations in the Globe and Mail’s 2007 Board Games ranking.

Climate Goals & Targets

Environmental Challenges

• Plant closures in North America and Mexico due to global competition.
• Recurring non-compliance issues in Central American facilities related to health and safety.
• High dropout rate in the Educatodos program.

Mitigation Strategies

• Followed best practices in managing plant closures, working with unions and NGOs.
• Implemented root cause analysis workshops to address persistent non-compliance.
• Strengthened the Educatodos program by adding experienced teachers and providing support to students.

Supply Chain Management

Supplier Audits: 92 monitoring visits in 2007 (including 36 complete social compliance audits)

Responsible Procurement

• Gildan Vendor Guidebook for contractors

Climate-Related Risks & Opportunities

Physical Risks

• Flooding (Hurricane Felix)

Reporting Standards

Frameworks Used: GRI (planned for future reports)

Certifications: WRAP, Oeko-Tex Standard 100

Third-party Assurance: Canadian Business for Social Responsibility (CBSR), Heather White (Verité/New Standards)

Awards & Recognition

• Korn/Ferry International “Lighthouse” prize
• Canadian Business Magazine ranking
• Globe and Mail’s 2007 Board Games ranking

Environmental Metrics

ESG Focus Areas

• Labour Practices
• Environmental Sustainability
• Community Relations
• Corporate Governance

Environmental Achievements

• Implemented waste management system based on the 4R concept (reduce, reuse, recycle, recover, and dispose)
• Implemented a brine recovery system to reduce salt and water use
• Renewed Oeko-Tex Standard 100 certification for all Gildan branded products

Social Achievements

• Implemented an ergonomics program in Honduras sewing plants to reduce MSDs
• 87 social compliance audits conducted at Gildan and contractors’ facilities
• Achieved FLA accreditation in 2007
• Won top honours in the Globe & Mail Report on Business “Board Games” ranking for corporate governance

Governance Achievements

• Amended Insider Trading Policy
• Ranked first among 180 publicly-listed Canadian companies in the Globe and Mail's corporate governance ranking
• Awarded AAA+ rating by the Clarkson Centre for Business Ethics and Board Effectiveness

Climate Goals & Targets

Environmental Challenges

• Increased global competition and downturn in the global economy leading to US facility closures
• Need to enhance processing of social and environmental audit data to focus on impacts and root causes
• Need to further reduce environmental impacts of energy, waste, and water usage

Mitigation Strategies

• Consolidating sock operations in Honduras
• Strategic review of programs to better incorporate social and environmental factors into business
• Enhancing the way social and environmental audit data is processed
• Further reducing environmental impacts of energy, waste, and water usage
• Building relationships with responsible NGOs and analysts

Supply Chain Management

Supplier Audits: 87

Responsible Procurement

• Gildan’s environmental code of practice (ECP)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: WRAP, Oeko-Tex Standard 100

Awards & Recognition

• Globe & Mail Report on Business “Board Games” ranking
• Clarkson Centre for Business Ethics and Board Effectiveness AAA+ rating
• FundAHRSE Seal

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 40% of total energy use from renewable sources in 2018
• Recycled or repurposed 89% of non-hazardous waste in 2018
• Updated Global Environment and Energy Policy in 2019

Social Achievements

• Gildan’s labour compliance program re-accredited by the Fair Labor Association (FLA)
• Offered more than 5 million hours of training and development to employees
• Provided support to communities through numerous programs

Governance Achievements

• Global ethics survey conducted to gain better insights from employees
• Extensive training conducted on Code of Conduct and Code of Ethics
• Directors visited principal manufacturing hub in Honduras

Climate Goals & Targets

Environmental Challenges

• Weaker imprintables market demand in North America and internationally
• Higher manufacturing costs, including higher raw material costs and inflationary pressures
• Unfavorable foreign exchange

Mitigation Strategies

• Back to Basics strategy: simplifying product portfolio, optimizing operations, driving manufacturing cost advantage
• Consolidating distribution network, closing smaller warehouses
• Relocating higher-cost textile and sewing operations from Mexico to Central America

Supply Chain Management

Responsible Procurement

• Strict implementation of codes and policies designed to protect the rights of employees

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes, floods, earthquakes, pandemics

Transition Risks

• Government policies to address climate change

Reporting Standards

Frameworks Used: GRI-Comprehensive

Certifications: FLA

Awards & Recognition

• Dow Jones Sustainability Index (7th consecutive year)
• CDP’s 2019 scores for corporate transparency and action on climate change (A- score)
• SAM Sustainability Yearbook (Bronze Class Distinction, 8th consecutive inclusion)

Environmental Metrics

ESG Focus Areas

• Climate change and energy
• Circularity
• Human capital management
• Long-term value creation
• Transparency and disclosure

Environmental Achievements

• Reduced absolute Scope 1 and Scope 2 GHG emissions (market-based) to 671,244 tCO2e, a 10.9% reduction from the 2018 base year.
• Reduced water intensity by 18.4% compared to the 2018 base year.
• Sourced 21.7% of cotton from verified U.S.-grown cotton suppliers (USCTP and Better Cotton).
• Increased from 6.2% in 2021 to 14.2% of total SKUs of packaging and trim materials specific to apparel containing recycled materials or having relevant sustainability certifications.

Social Achievements

• Increased the percentage of women in director-level and above positions from 26.7% to 30.3%.
• Achieved the lowest global work-related injury rate in 12 years.
• Donated $1.1M in cash and in-kind donations, representing 0.19% of pre-tax earnings.

Governance Achievements

• Published the first stand-alone Climate Change Disclosure Report, structured in accordance with TCFD recommendations.
• Gildan’s Board of Directors tied a portion of the executive short-term incentive program to the advancements of ESG targets.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to changing climate patterns and extreme weather events.
• Limited availability of biomass in Central America.
• Increased production resulting in higher Scope 2 GHG emissions.
• Labour shortages.
• Increasing mental health challenges.

Mitigation Strategies

• Integrating ESG into core business strategy and investment decisions.
• Investing in water efficiency and water reuse systems.
• Seeking opportunities to enhance operational efficiency and reduce energy.
• Targeted talent acquisition, talent management, training and development, and retention strategies.
• Strengthening focus on mental health resources (EAP, training, workshops).

Supply Chain Management

Supplier Audits: More than 100/year

Responsible Procurement

• Code of Conduct
• Social & Sustainable Compliance Guidebook
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels

Transition Risks

• Decreasing reliance on fossil fuels
• Rising energy prices

Opportunities

• Increased customer preference for sustainably-made apparel
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB, TCFD, UN SDGs

Certifications: WRAP, ISO 45001 (one facility)

Third-party Assurance: KPMG LLP (limited assurance), LBG Canada (community investment)

UN Sustainable Development Goals

• Goal 6
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 17

Alignment with SDGs explained throughout the report.

Sustainable Products & Innovation

• Incorporation of recycled yarns into fleece products.

Awards & Recognition

• Dow Jones Sustainability Index (10th consecutive year)
• World’s 100 Most Sustainable Corporations
• Canada’s Best 50 Corporate Citizens
• REPREVE Champions of Sustainability

Environmental Metrics

ESG Focus Areas

• Climate Change and Energy Use
• Water Management
• Circularity
• Biodiversity and Afforestation
• Human Rights and Ethical Labour Practices
• Living Wage
• Modern Slavery
• Right to Freedom of Association and Collective Bargaining
• Employee Well-being
• Learning and Development
• Diversity, Equity, and Inclusion
• Global Health and Safety
• Community Engagement
• Corporate Governance
• ESG Governance
• Stakeholder Engagement
• Risk Management
• Data Privacy and Cybersecurity
• Public Policy and Advocacy

Environmental Achievements

• Reduced absolute Scope 1 and Scope 2 (market-based) GHG emissions by 30.3% from 2018 baseline.
• Reduced Scope 3 GHG emissions by 13.6% from 2019 baseline.
• Reduced water intensity by 18.9% from 2018 baseline.
• Sourced 35.7% of cotton from suppliers certified by USCTP and Better Cotton.
• Increased recycled polyester in 18000 Heavy Blend Fleece Collection from 9.5% to 19%.
• Increased number of styles incorporating recycled polyester to 150 (130% increase).
• Reduced manufacturing waste to landfill to 945 MT (61% reduction from 2022).
• Achieved 46.6% recycled and sustainable packaging and trims (up from 14.2% in 2022).

Social Achievements

• Three Dominican Republic sewing facilities achieved ISO 45001 certification.
• Lowest number of work-related incidents in 13 years.
• Achieved 34.3% female representation at director level and above.
• 85% of hourly employees reported Gildan is an inclusive workplace.
• Earned UN’s Gold Gender Equality Seal in Dominican Republic.
• Donated $1.9M in cash and in-kind donations (0.4% of pre-tax earnings).

Governance Achievements

• 10 out of 11 Board members were independent.
• Board achieved 36% female representation.
• Portion of executive short-term incentive program tied to ESG advancements.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate change.
• Increasing cost and decreasing availability of natural gas in Bangladesh.
• Gender parity.
• Evolving climate disclosure frameworks and regulations.

Mitigation Strategies

• Investing in water efficiency and reuse systems.
• Investing in solar energy and exhaust heat capture in Bangladesh.
• Working with partners to increase women's participation in the workforce.
• Finalized plan for a pilot project to better understand climate-related risks and opportunities.

Supply Chain Management

Supplier Audits: 58 audits in 2023 (16 Gildan-operated, 42 contractor facilities)

Responsible Procurement

• Code of Conduct
• Social & Sustainable Compliance Guidebook
• Global Responsible Production and Sourcing Policy
• Supplier due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Increased water costs

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Standards, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 45001 (3 facilities), STANDARD 100 by OEKO-TEX®

Third-party Assurance: KPMG LLP (limited assurance on select environmental and social indicators), LBG Canada (independent verification of community investment)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• 18000 Heavy Blend Fleece Collection with recycled polyester
• Comfort Colors® products dyed with Pigment Pure®

Awards & Recognition

• Dow Jones Sustainability Index (DJSI) North America Index (11th consecutive year)
• World’s 100 Most Sustainable Corporations
• Canada’s Best 50 Corporate Citizens
• CDP Climate Change score of A-
• Sustainability-linked loan of the year – Americas
• FUNDAHRSE Seal 2023 award