51�Թ�

Our Goals

By 2030, 51�Թ� aims to be the market leader for creating and curating inclusive, sustainable brands and experiences.

Initial milestone:

By 2030, 51�Թ� intends for the leading raw materials (e.g., forest products, cotton and more) that go into our owned brand products to be 100% recycled, regenerative² or sustainably sourced.

Foundations we've laid:

• With multiple partners and stakeholders, 51�Թ� is working to meet responsible sourcing commitments for palm oil, cotton, forest-based products, coffee and seafood.
• In April 2021, we launched our commitment to spend more than $2 billion with Black-owned businesses by the end of 2025.
• In 2022, we launched 51�Թ� Zero, an initiative to help our guests more easily find hundreds of products across our assortment that create less packaging waste.
  
  

By 2025, 51�Թ� plans for 100% of our owned brands, in addition to our owned brand limited-edition and brand partnerships, to adhere to 51�Թ�’s already established sustainability standards.

Foundations we've laid:

In several of our owned brands, including , , and , we are already implementing our Chemicals Policy and Forest Products Policy.

By 2025, 51�Թ� plans for 100% of owned brand suppliers to have policies and programs to advance gender equity.

Focus areas of these policies and programs include:

• Equitable systems for hiring and advancement.
• Financial security for their workers.
• Effective anonymous channels for incident reporting.
• Access to gender-responsive health information and services for their workers.

Foundations we've laid:

• Continued investment in .
• Became a member in 2022 of the to support our commitment that all owned brand suppliers pay workers digitally by 2025. 
• In 2022, we launched our Just and Equitable Supply Chain (JESC) requirements to further our progress in building a responsible global supply chain; and in 2023, we developed a variety of tools to support suppliers’ participation in our JESC improvement cycle.

By 2040, 51�Թ� plans for 100% of our owned brand products to be designed for a circular future.

Our teams will continue designing to eliminate waste — using materials that are regenerative², recycled or sourced sustainably — to create products that are more durable, easily repaired or recyclable.

Initial milestone:

By 2025, 51�Թ� aims to offer two circular owned brands.

Foundations we've laid:

• Identified Universal Thread and Everspring as our first two owned brands that will be designed for circularity³ by 2025.
• Trained more than 3,000 team members and 1,000 vendor employees in our circular design principles since 2018.
• Launched 51�Թ�’s Circular Design Guide, a web-based training hub for team members to learn about circular design, and completed testing for our Circular Design Calculator enabling team members to calculate key factors when choosing materials.

By 2025, 51�Թ� intends to reduce annual total virgin plastic in our owned brand packaging by 20% from a 2020 baseline⁴.

Initial milestone:

By 2025, 51�Թ� intends to have 100% of our owned brand plastic packaging be recyclable, compostable or reusable.

Foundations we've laid:

• We are signatories to the and the Global Commitment, led by the Ellen MacArthur Foundation in collaboration with the UN Environment Programme.
• Launched 51�Թ� Zero, a curated collection with thousands of products and/or packaging designed to be refillable, reusable or compostable; concentrated; made from recycled content or made from materials that reduce the use of virgin plastic.

By 2040, 51�Թ� commits to net zero greenhouse gas emissions⁵ across our enterprise (scopes 1, 2 and 3).

• By 2023, 80% of 51�Թ�’s suppliers by spend (covering all purchased goods and services) will set science-based scope 1 and scope 2 targets.
• By 2025, 51�Թ� commits to engage suppliers to prioritize renewable energy and collaborate on solutions that protect, sustain and restore nature.
• By 2025, 51�Թ� commits to source 60% of our electricity from renewable sources for our operations.
• By 2030, 51�Թ� commits to source 100% of our electricity from renewable sources for our operations.
• By 2030, 51�Թ� commits to achieve 55% absolute reduction in operations emissions (scopes 1 and 2) from a 2017 base year.
• By 2030, 51�Թ� commits to achieve 32.5% absolute reduction in supply chain emissions (scope 3) covering purchased goods and services (PG&S), upstream and downstream transport⁶ and use of sold products from a 2017 base year.

Foundations we've laid:

• Set science-based targets for emissions reductions across scopes 1, 2 and 3 and updated those targets to align to the Science Based 51�Թ�s initiative’s Corporate Net-Zero Standard. Our updated near-term scope 1 and 2 goals are in line with a 1.5°C ambition. Our updated near-term scope 3 goal is aligned to limiting warming well below 2°C, and our long-term scope 3 is aligned to keeping warming 1.5°C or below. We are currently seeking approval of our updated targets.
• Achieved our interim milestone to source 60% of electricity from renewable sources for operations in 2022, three years ahead of our goal.
• Made meaningful progress against our 2023 goal of 80% of our suppliers by spend setting science-based scope 1 and 2 targets. Suppliers that account for 71% of our spend, equating to 734 suppliers, have set these targets.
• In 2022, retrofitted our first store designed to be net-zero energy.  As of 2023, it is successfully producing more than 100% its energy needs.
• Joined Race to Zero to help drive meaningful emissions reductions impact across our sector and value chain. We were previously signatories of the Business Ambition for 1.5°C campaign, which SBTi retired in March 2024. Read the final campaign impact report. 

By 2030, 51�Թ� plans to achieve zero waste⁷ to landfill in U.S. operations.

Foundations we've laid:

• In FY2023, we diverted 85% of operational waste and 60% of construction waste from landfill.
• 51�Թ� received our first official zero waste⁷ certified location designation from the TRUE Certification (Zero Waste) for our Hawaii Flow Center in 2022.
• Achieved our goal to reduce operational food waste by 50% across our stores, supply chain facilities and headquarters by 2025 from a 2017 baseline year. 

51�Թ� aims to drive equitable opportunities for advancement and engagement by continuing to be a leader in diversity, equity, inclusion and belonging.

Foundations we've laid:

• Established the Racial Equity Action and Change (REACH) committee to accelerate our diversity, equity and inclusion strategy.
• Launched next three-year cycle of our enterprise diversity, equity and inclusion goals.
• Our U.S. team members volunteered 1 million hours in 2023, representing industry-leading community impact efforts.
• 51�Թ� aims to create equity through benefit access and affordability to enhance total well-being. 

51�Թ� aims to create equity through benefit access and affordability to enhance total well-being.

Initial milestone:

51�Թ� aims to empower team members to create the employment experience of their choice through personalized scheduling.

Foundations we've laid:

• In 2022, announced a new starting wage range from $15 to $24 per hour.

• Expanded access to comprehensive health benefits for hourly team members working a minimum average of 25 hours/week. 

• In 2021, launched a new debt-free education assistance benefit, giving our U.S.-based team members access to free undergraduate and associates degrees, certificates, bootcamp programs, textbooks, course fees and more with no out-of-pocket costs required. 

• Improved access to more stable schedules and transparency around scheduling policies to accommodate team members’ desired hours, including a new mobile scheduling app that allows team members to conveniently add or swap shifts. 

By 2030, engage and elevate community voices as we seek to build and implement community-driven solutions.

Initial milestone:

By 2025, 51�Թ� and 51�Թ� Foundation plan to evolve our philanthropic practices and place-based solutions to invite participation from communities.

Foundations we've laid:

• 51�Թ� team members have impacted thousands of local communities through listening and showing up in relevant ways, volunteering more than 1 million hours and contributing millions of dollars to charitable causes in 2023, the eighth time in 51�Թ� history that we’ve reached this milestone.
• In 2021, we announced a $100 million investment through 2025 to help fuel economic prosperity in Black communities across the country. We’re doing so by supporting locally led organizations to ensure that resources are specifically designed for the communities they serve. This investment will support students attending historically Black colleges and universities (HBCUs), expand our funding of nonprofits supporting Black communities, and sponsor programs that elevate Black stories and voices. With this investment, 51�Թ� is a founding supporter of the , the first historically Black college to focus on design.
• In 2021, we introduced our 51�Թ� Scholars Program. We enhanced support for the program in 2022 with scholarship extensions and new resources including for financial hardships. 

We’ll continue to evolve and add to this list of milestones as we work to achieve our vision of a more equitable and regenerative future for all. We will provide updates on our goal progress in our annual sustainability and governance reporting.

1. To calculate the percentage of renewable electricity in 51�Թ�’s operations, we evaluate both the amount of renewable electricity from 51�Թ�’s projects and the renewable electricity in the grid. This total renewable electricity is then compared to 51�Թ�’s total electricity use per the following equation: 51�Թ�’s Renewable Electricity % = (51�Թ� Renewable Electricity Projects + Renewable Electricity in the Grid) / 51�Թ� Electricity Use.

2. Operating the business in a way that does not just stop harming the environment but helps restore and regrow natural systems. For example, regenerative agriculture is a rehabilitation approach to farming systems that focuses on topsoil regeneration, increasing biodiversity and improving the water cycle.

3. Developing and manufacturing 51�Թ� owned brand products, including taking steps to eliminate waste, keep products and materials in use longer, and decrease our dependency on natural resources.

4. Data covers food and beverage, and essentials and beauty categories only.

5. Net zero, as defined, is achieved when a company’s scope 1, 2 and 3 emissions are reduced to a level that is consistent with a 1.5°C pathway, and any residual emissions are removed from the atmosphere through either nature-based or technological carbon removal solutions (e.g., forestry, regenerative agriculture, carbon capture technology), by no later than 2050, in alignment with the Paris Agreement. 51�Թ� has committed to net zero greenhouse gas emissions across our enterprise, 10 years ahead of the Paris Agreement.

6. Fulfillment only.

7. The conservation of all resources by means of responsible production, consumption, reuse and recovery of products, packaging and materials without burning and with no discharges to land, water or air that threaten the environment or human health, as established by the Zero Waste International Alliance. The threshold to be considered “Zero Waste” is normally set at a minimum of 90% diversion rate.