Climate Change Data

The Children’s Place, Inc.

Climate Impact & Sustainability Data (2020, 2022)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:1,734,137 tCO2e/year (2018)
Scope 1 Emissions:54,297 tCO2e/year (2018)
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:1,679,840 tCO2e/year (2018)
Renewable Energy Share:Not disclosed
Total Energy Consumption:137,980 MWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Management of Chemicals in Products
  • Environmental Impacts in the Supply Chain
  • Labor Conditions in the Supply Chain
  • Raw Materials Sourcing

Environmental Achievements

  • Increased Better Cotton usage to 17.9% in 2020 (goal of 30% by 2022)
  • Completed first greenhouse gas inventory, establishing a 2018 baseline of approximately 1,734,137 mtCO2e
  • Science-Based Targets initiative (SBTi) approved 2030 GHG reduction goals (30% reduction in scope 1 & 2, and reduction in scope 3 emissions)
  • 95% of vendors managing top 20 denim and woven bottoms factories committed to reducing water, chemical, and energy use by the end of fiscal year 2020
  • Planning to analyze waste across offices, retail stores, and distribution centers in 2021 to establish a baseline and identify improvement opportunities
  • Elimination of all ecommerce packing slips in early 2021, impacting at least 11 million packing slips annually

Social Achievements

  • Donated approximately 2 million units of clothing (valued at over $15 million) to Delivering Good in 2020 due to the COVID-19 pandemic
  • Reached approximately 70,000 workers through worker well-being programs (goal to impact 140,000 by 2023)
  • Landmark agreement with leading brands, trade unions, and women’s rights organizations to combat gender-based violence and harassment in Lesotho

Governance Achievements

  • Board proactively reviews and enhances corporate governance framework
  • Significant portion of executives’ pay linked to company performance
  • Shareholder engagement activities with over 85% of outstanding shares in 2020
  • Implementation of Corporate Governance Guidelines, Code of Business Conduct, Anti-Corruption Policy, Insider Trading Policy, and Clawback Policy

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 30% reduction in absolute scope 1 and 2 GHG emissions by 2030
  • Reduction in absolute scope 3 GHG emissions from purchased goods and product transport by 2030
  • Work with top 25 vendors to implement ongoing worker well-being programs by the end of fiscal year 2023, impacting approximately 70,000 workers
Short-term Goals:
  • Increase Better Cotton usage to 30% by 2022
  • Analyze waste streams across corporate operations in 2021

Environmental Challenges

  • Reducing environmental impact of cotton sourcing
  • Reducing greenhouse gas emissions across scope 1, 2, and 3
  • Reducing water and chemical use in manufacturing
  • Minimizing waste generated by corporate operations, packaging, and end-of-life products
  • Ensuring safe and fair working conditions in the supply chain
  • Supporting worker well-being in the supply chain
Mitigation Strategies
  • Joined the Better Cotton Initiative (BCI)
  • Exploring alternative fibers like recycled polyester
  • Implementing energy efficiency upgrades and engaging with partners and suppliers
  • Working with vendors to reduce water consumption and implement wastewater practices
  • Utilizing industry-endorsed restricted substance lists (RSL and MRSL)
  • Conducting factory audits and providing guidance and training to vendors and factories
  • Launching trainings and vendor engagements to combat gender-based violence and harassment
  • Implementing worker well-being programs in collaboration with non-profit organizations

Supply Chain Management

Supplier Audits: Audits for all new suppliers; re-audits of existing suppliers

Responsible Procurement
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: SASB, UN Sustainable Development Goals (SDGs), ILO core conventions, UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:602,036 tCO2e/year
Scope 1 Emissions:3,964 tCO2e/year
Scope 2 Emissions:25,252 tCO2e/year
Scope 3 Emissions:572,820 tCO2e/year
Total Energy Consumption:87,976 MWh/year
Water Consumption:35,811 kGal/year
Waste Generated:45,179 tons/year
Carbon Intensity:0.0055 metric tons CO2e/sq ft (FY22)

ESG Focus Areas

  • Climate & Energy
  • Raw Materials
  • Water Stewardship
  • Chemical Management
  • Waste
  • Circularity
  • Diversity, Equity & Inclusion
  • Community
  • Supply Chain Compliance
  • Worker Well-Being

Environmental Achievements

  • 46% GHG reduction in FY22 against an FY18 baseline (Scope 1 and 2)
  • 38% GHG reduction in FY22 against an FY18 baseline (Scope 3)
  • 72% of the cotton in our apparel was responsibly sourced cotton
  • 73% of waste diverted from landfill in FY22
  • Achieved a range of 25%-95% in recycled content in customer-facing packaging

Social Achievements

  • 45% increase in Black associate representation at US corporate offices vs. 2020 baseline
  • Launched an early childhood development center in Hawassa, Ethiopia
  • 92% of third-party workers are paid via digital wages

Governance Achievements

  • Implemented our first internal ESG scorecard
  • Included two core ESG performance metrics in our 2022 long-term incentive plan (LTIP)

Climate Goals & Targets

Long-term Goals:
  • Reduce absolute scope 1 and scope 2 market-based GHG emissions across our global operations by 30% by end of 2030
  • Double representation of Black/African American associates at our U.S. corporate offices by end of FY25
Medium-term Goals:
  • Reduce absolute scope 1 and scope 2 market-based GHG emissions across our global operations by 50% by end of 2030
  • Reduce absolute scope 3 GHG emissions from purchased goods and product transport by 30% by end of 2030
  • Source 25% recycled material for the polyester fibers used in our apparel by end of 2030
  • Divert 80% of waste generated by our corporate headquarters, distribution centers and retail stores from landfill by end of 2025
  • Use a minimum of 50% recycled content in customer-facing packaging by end of 2025
  • 100% of customer-facing packaging labeled with the How2Recycle label by end of 2025
  • Source 100% responsibly sourced cotton for the cotton fibers used in our apparel by end of 2025
  • Source 100% recycled material for the polyester fibers in pocket bags used in our denim and woven bottoms by end of 2025
  • Source 100% recycled material for the polyester fibers used in our woven labels and zipper tape by end of 2025
  • Source 100% price tickets, hangtags, wrap bands and accessories carding with more sustainable paper sources by end of 2025
  • Convert 100% zippers and other hardware to finishes that use fewer chemicals and less water and energy by end of 2025
Short-term Goals:
  • Reduce water consumption by 25% in top 20 denim and woven bottoms factories by end of 2023
  • Top 20 denim and woven bottom factories to meet Higg FEM Level 1 sustainability rating in management systems for chemicals by end of 2023
  • Implement systems to assess and improve compliance and traceability in our global supply chain by end of FY23
  • Finished goods manufacturers representing 80% annual volume to complete the Sustainable Apparel Coalition’s Higg Facility Social & Labor Module (FSLM) by end of FY23
  • Implement third-party worker well-being programs with our top 25 global vendors impacting 140,000 workers in the global supply chain by end of FY23
  • 100% of workers in third-party manufacturing factories transitioned from cash-based systems to digital wage payments by end of FY23

Environmental Challenges

  • Decline in operational waste recycling rate due to changes in waste stream composition
  • Limited wastewater testing services in key African sourcing countries
  • High material costs impacting recycled polyester integration
Mitigation Strategies
  • Action plan targeting employee awareness and mall landlord engagement to improve operational waste recycling
  • Collaborated with vendors and laboratory partners to build local expertise on wastewater testing
  • Developing stronger relationships with vendors with recycled content expertise and internal processes to manage product certifications

Supply Chain Management

Supplier Audits: 91% of third-party factories assessed through onsite compliance audits in FY22

Responsible Procurement
  • Vendor Code of Conduct aligned with ILO core conventions, UN Guiding Principles on Business and Human Rights, and OECD Guidelines for Multinational Enterprises
  • Use of Higg Index tools
  • ZDHC MRSL parameters

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme temperatures
  • Inland flooding
  • Wildfires
  • Increasing temperatures
  • Water stress
Transition Risks
  • Changing customer behavior
  • Increased cost of raw materials and production costs
  • Supply chain logistics
Opportunities
  • Resource efficiency
  • Energy source
  • Products and services
  • Resilience

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: OEKO-TEX® STANDARD 100

UN Sustainable Development Goals

  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15
  • Goal 16

Initiatives mapped to relevant SDGs using GRI's guidance

Sustainable Products & Innovation

  • OEKO-TEX® STANDARD 100 certified products
  • Products with recycled materials

Awards & Recognition

  • 2022 Best Distribution Center of Dekalb Award