Kontoor Brands, Inc.

Climate Impact & Sustainability Data (2021, 2023)

Expansion of Indigood program to help reach goal of saving 10 billion liters of water by 2025.

Published 2020 Sustainability Report in accordance with GRI and SASB standards.
90% of employees who participated in feedback indicated their managers value diversity.
31% of all content accessed by employees focused on Inclusion & Diversity.
Launched initiatives to increase traceability in products from origin to finished goods.
Expanded mental health resources available to employees globally.

Board of Directors is responsible for promoting responsible corporate citizenship and monitoring adherence to Kontoor’s standards.
Nominating and Governance Committee reviews and evaluates strategies, programs, policies and practices relating to ESG issues.

Short-term Goals:

Global supply chain disruptions due to port congestion and transportation delays.
COVID-19 pandemic impacting global economic conditions and operations.
Delays in product and raw material availability.

Working with customers to minimize impact of supply chain disruptions.
Incurred transitory costs, including air freight, to expedite shipments.
Monitoring safety protocols and health precautions.
Maintaining open offices where permitted, with many associates working remotely.
Continuing to operate manufacturing plants and distribution centers.

Working with supply chain partners who uphold Kontoor's safety standards.
Collaborating with contract supplier factories to provide opportunities to their communities (e.g., BSR’s HERproject™).

Increases in energy, production, transportation, and raw material costs due to climate change legislation and regulations.

Frameworks Used: GRI, SASB

Reached 2025 water savings goal, saving over 10 billion liters of water since 2008.
Science Based Targets initiative approved Kontoor's science-based targets for greenhouse gas emissions, including a 46.2% absolute reduction in scope 1, 2 and 3 emissions by 2030 from a 2019 base year.
Issued the 2021-2022 Sustainability Report and first Task Force on Climate-related Financial Disclosures Report.
Announced Global Design Standards to lower products' environmental and social impacts.
Expanded Indigood program to over 30 denim mills.

Maintained good employee relations with approximately 13,700 employees worldwide.
Operations have an Occupational Safety and Health Administration recordable incident rate significantly below the industry average.
Focus on attracting critical talent, ensuring equitable advancement, and fostering inclusion.
Articulated corporate sustainability and social responsibility commitments in the Code of Conduct.

Board of Directors promotes responsible corporate citizenship and monitors adherence to Kontoor’s standards.
Nominating and Governance Committee reviews and evaluates ESG strategies, programs, policies, and practices.

Medium-term Goals:

46.2% absolute reduction in scope 1, 2 and 3 emissions by 2030 from a 2019 base year.

Macroeconomic conditions (inflation, interest rates, recessionary concerns, currency fluctuations, supply chain issues, uneven post-pandemic recovery in China).
Uncertain consumer spending patterns leading to retailer inventory management impacting results.
Inflation in product and input costs.
Uncertainty in APAC, particularly China, due to economic conditions and consumer behavior.
Supply chain disruptions (Suez and Panama canals).