Hanesbrands-2017-CDP-Report.Pdf

CDP 2017 Climate Change 2017 Information Request CDP Hanesbrands Inc.

Module: Introduction

Page: Introduction

CC0.1

Introduction Please give a general description and introduction to your organization.

HanesBrands, based in Winston-Salem, N.C., is a socially responsible leading marketer of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia-Pacific. The company sells its products under some of the world’s strongest apparel brands, including Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Berlei, and Gear for Sports. The company sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery, and activewear produced in the company’s low-cost global supply chain. A member of the S&P 500 stock index, Hanes has approximately 68,000 employees in more than 40 countries and is ranked No. 432 on the Fortune 500 list of America’s largest companies by sales. Hanes takes pride in its strong reputation for ethical business practices. The company is the only apparel producer to ever be honored by the Great Place to Work Institute for its workplace practices in Central America and the Caribbean, and is ranked No. 110 on the Forbes magazine list of America’s Best Large Employers. For eight consecutive years, Hanes has won the U.S. Environmental Protection Agency Energy Star sustained excellence/partner of the year award for energy management – the only apparel company to earn sustained excellence honors. The company ranks No. 172 on Newsweek magazine’s green list of 500 largest U.S. companies for environmental achievement. More information about the company and its corporate social responsibility initiatives, including environmental, social compliance and community improvement achievements, may be found at www.Hanes.com/corporate and www.hanesforgood.com. Connect with HanesBrands via social media on Twitter (@HanesBrands) and Facebook (www.facebook.com/HanesBrandsinc).

CC0.2

Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosed

Fri 01 Jan 2016 - Sat 31 Dec 2016

CC0.3

Country list configuration

Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response.

Select country

CC0.4

Currency selection

Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency.

USD($)

CC0.6

Modules As part of the request for information on behalf of investors, companies in the electric utility sector, companies in the automobile and auto component manufacturing sector, companies in the oil and gas sector, companies in the information and communications technology sector (ICT) and companies in the food, beverage and tobacco sector (FBT) should complete supplementary questions in addition to the core questionnaire. If you are in these sector groupings, the corresponding sector modules will not appear among the options of question CC0.6 but will automatically appear in the ORS navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below in CC0.6.

Further Information

Module: Management

Page: CC1. Governance

CC1.1

Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1a

Please identify the position of the individual or name of the committee with this responsibility

Hanesbrands’ environmental policies and practices are integrated into the company’s overall business strategy development, business risk assessment process, environmental management program, and corporate social responsibility program. Each of these interlocking areas are led by a team of our most senior executives up to and including the chief executive officer and corporate board of directors. The chief executive officer, in conjunction with senior executive management and board of director oversight, sets the business strategy and environmental policies. The board of directors’ audit committee has oversight responsibility for risk assessment, and environmental management is the purview of the president of global supply chain and vice president of corporate social responsibility. The CSR oversight committee, comprised of the most senior executive officers of the company including the CEO, CFEO, CAO and the presidents of supply chain and commercial businesses, meets quarterly to provide direction, monitor results and oversee the implementation of environmental policies, environmental management, and CSR.

CC1.2 Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2a

Please provide further details on the incentives provided for the management of climate change issues

Who is entitled to The type of benefit from Incentivized performance indicator incentives these Comment

incentives?

Executive incentive compensation is linked to performance metrics under the core business strategy. Emissions, energy, water and acquisition integration management are components of an overall cost management strategy. Indirect Emissions reduction target incentives are linked to GHG emissions. Energy expenditures within the supply Energy reduction target chain are significant contributors to overall conversion cost targets. Energy cost, Supply chain engagement energy use, and resultant GHG management is included as part of overall Corporate Monetary Other: Water reduction target; Renewable sustainability and performance goals, including a corporate energy target, for key executive reward energy target; integration of staff at both the executive level and the operating levels. Additionally, team energy/emissions/water management into HanesBrands utilizes a variety of indirect incentives that are linked to the acquired businesses. management of climate change issues. These incentives are designed to drive conservation of natural resources, reduce emissions to the environment and to reduce waste. The company has established four key performance indicators that measure progress toward achieving annual goals to reduce energy usage, GHG emissions, water usage, and solid waste. HanesBrands sets annual energy, carbon, and water reduction goals that are Emissions reduction target rolled out to all locations. Energy managers at our manufacturing and distribution Energy reduction target centers translate these goals into energy-saving actions and projects at their Supply chain engagement facilities. Performance incentives for these actions include the President’s Energy Recognition Energy Other: Water reduction target; Renewable Efficiency Award and the US EPA ENERGY STAR Challenge for Industry, which (non- managers energy target; integration of the energy managers at each of our facilities pursue as part of their annual goals. monetary) energy/emissions/water management into Locations are eligible for recognition through the US EPA ENERGY STAR acquired businesses. Challenge for Industry program which requires locations to reduce energy usage intensity by 10% within a 5-year period. Locations are also recognized with HanesBrands’ President’s Energy Efficiency Award, and the majority of Who is entitled to The type of benefit from Incentivized performance indicator incentives these Comment

incentives?

production locations have earned US EPA ENERGY STAR Challenge for Industry recognition. The Challenge for Industry and President’s Energy Efficiency programs are being rolled out to additional supply chain locations as part of acquisition integrations in Europe, Asia and Australia. In addition, HanesBrands has received the US EPA ENERGY STAR Partner of the Year Award for eight years in a row for its superior energy and environmental management programs. These notable events are communicated and shared throughout the company via The Common Thread, HanesBrands’ internal newsletter that is distributed to employees across the globe in 6 languages, as well as through company intranet, press releases, media outreach, and integration into brand communications.. Facility managers receive monetary incentives based on performance criteria, which are linked with and partially dependent upon reductions of emissions, energy use, and water use. Energy expenditures within the supply chain are significant contributors to overall conversion cost targets. Facility managers play a key part in identifying, developing, and implementing energy and environmental initiatives and providing leadership and motivation to their teams. Non-monetary Emissions reduction target performance incentives offered to facility managers include the President’s Energy reduction target Energy Efficiency Award, which requires locations to demonstrate achievements. Supply chain engagement In addition, locations are eligible for recognition through the US EPA ENERGY Facility Monetary Other: Water reduction target; Renewable STAR Challenge for Industry program which requires locations to reduce energy managers reward energy target; integration of usage intensity by 10% within a 5-year period. Production locations are also energy/emissions/water management into eligible to earn the HanesBrands President’s Energy Efficiency Award. In addition, acquired businesses. HanesBrands has received the US EPA ENERGY STAR Partner of the Year Award for eight years in a row for its superior energy and environmental management programs. Facility achievements are celebrated at the local level through media outreach and highlighted in internal intranet and published communication vehicles. Additional non-monetary incentives for facility level managers has included the invitation of key individuals to accompany HanesBrands representatives attending the US EPA ENERGY STAR Awards Banquet held in Washington DC each spring. Emissions reduction target The company’s commitment to environmental responsibility is integrated into the Recognition Energy reduction target company’s core business strategy. Each year, the company highlights its All employees (non- Efficiency target performance and achievements compared with targets and incorporates this monetary) Supply chain engagement review in its annual global leadership meeting, which is attended by more than Who is entitled to The type of benefit from Incentivized performance indicator incentives these Comment

incentives?

Other: Water reduction target; Renewable 1,000 representatives of Hanesbrands' global management team, most of whom energy target; integration of are Director level and above. energy/emissions/water management into acquired businesses.

Further Information

Page: CC2. Strategy

CC2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a

Please provide further details on your risk management procedures with regard to climate change risks and opportunities

How far into Frequency To whom are the future of results Geographical areas considered Comment are risks monitoring reported? considered?

The company manages risks related to climate change by maintaining comprehensive enterprise risk management and business interruption plans which may include redistribution of manufacturing capacity throughout the company's global supply chain network HBI's global supply chain spans across both the if necessary. In addition, the company manages risk western and eastern hemispheres including: North by actively conserving natural resources, reducing America, Central America, Caribbean and SE Asia. energy usage, GHG emissions, water use, and waste Late in 2014, HBI acquired DBApparel which has to landfills. The company's conservation strategy is Six-monthly Senior been renamed to Hanes Europe Innerwear (HEI). Full accomplished through an enterprise-wide employee or more 3 to 6 years manager/officer integration of HEI energy and environmental metrics engagement process that is focused on empowerment frequently was completed during 2016. In 2016, HBI acquired and recognition. Also, the company continues to PacBrands (Australia), Champion Europe (Italy) and invest in strategic energy efficiency and renewable GTM (U.S.). Full integration of their energy and energy projects with the goal to save energy and environmental metrics will be completed during 2017. reduce emissions to the environment while reducing costs. Monthly progress reports, risks, and opportunities are reviewed by the President, Chief Global Supply Chain/IT Officer and other key executives as part of an operations In-Depth-Review (IDR) process.

CC2.1b

Please describe how your risk and opportunity identification processes are applied at both company and asset level

I. Risk/opportunity identification at the company level: HanesBrands carries out continual risk and opportunity assessments through the board-level, senior management and the Corporate Social Responsibility (CSR) governance structures as well as through corporate and operational functions including our legal, engineering, finance, government relations, and internal audit teams. Short-term risks and opportunities are discussed as needed at senior management weekly staff meetings. Corporate-level risks are also evaluated through the formal Enterprise Risk Management process which is actively reviewed by the Audit Committee of our board of directors. We regularly evaluate all risks to our business and maintain contingency plans to ensure that the potential risks do not have an adverse effect on the revenue of the company.

II. Risk/opportunity identification at the asset level: Risk factors such as natural disasters, system failures, environmental impacts, accidents and health pandemics that could damage or disrupt our operations, or our suppliers and distributors' operations, are managed globally by our CSR, operations, and security teams and locally by our plant/site managers who have dedicated environmental, energy, emergency response and safety coordinators that focus on full implementation of the company's policies and procedures, which formally document management systems that are designed to continuously manage and reduce risks. These coordinators receive directional and technical support from the corporate staff.

CC2.1c

How do you prioritize the risks and opportunities identified?

Opportunities identified either through the company's global employee engagement process or at the corporate level through our enterprise risk management process are prioritized by our Audit Committee and Senior Management team and by measuring results toward achieving the company's 2020 Vision for Energy and the Environment, which establishes very aggressive goals to improve energy usage efficiency by 40%, reduce water usage by 50%, reduce GHG emissions by 40%, increase renewable energy to 40% and reduce waste to landfills compared to a 2007 baseline. Projects that provide the largest financial or goal-related returns are implemented first and tracked to ensure the benefits are sustained. Many of the projects are low-cost or no-cost opportunities that involve changing a procedure or process that, in turn, drives behavior changes through the organization. In addition, strategic projects that require capital compete with other projects based on the internal rate of return generated by the project and progress toward achieving the company's goals. In an effort to continually improve, the company hosts an annual energy summit during which a team of key operational executives, process engineers, facility engineers and energy managers come together to reflect on accomplishments, share best practices and map a course to achieve the 2020 vision.

CC2.1d

Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future

Main reason for not having a process Do you plan to introduce a process? Comment

CC2.2

Is climate change integrated into your business strategy?

Yes

CC2.2a

Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

HanesBrands works to mitigate climate change risk through continual efforts to improve energy and water usage efficiency, reduce overall GHG emissions, reduce waste and increase the use of sustainable materials. This strategy is integrated into our product offerings. One of HanesBrands' key business strategies is to effectively manage a global energy program to minimize energy consumption, reduce operating costs, and continually reduce emissions to the environment. To accomplish this strategy HanesBrands has implemented:

1) An exceptional global energy management program that involves all facilities, and has earned multiple recognitions from the US EPA Energy Star program including achieving eight consecutive Energy Star Partner of the Year awards. Additionally, 23 of HanesBrands' facilities have also earned the US EPA Energy Star Challenge for Industry award, which requires a facility to demonstrate a 10% reduction in energy usage within a five-year period.

2. Global Environmental Management System (GEMS) - Issues associated with climate change, availability of water, energy costs, raw materials costs, and extreme weather conditions have influenced the company's need to bolster its environmental responsibility efforts. As a result, the company has implemented GEMS, which establishes extensive and very detailed policies and procedures to ensure a consistent, global approach to environmental compliance and minimization of emissions.

3. Continuous Improvement Process - Many of HanesBrands' products and process innovations are driven by our focused environmental strategy. Applying an environmental lens has significantly helped identify new opportunities for innovation. Examples include: procuring yarn made from recycling the equivalent of 62 million plastic-plus water bottles to make polyester yarn for both blended spun yarns and filament yarns; expanding the use of recycled cotton fiber; and use of a spinning process that consumes significantly less energy per pound of yarn. The procurement of yarn from a supplier using a spinning process thus far has reduced consumption of electricity used to produce the yarn by 30,937 mega watt-hours resulting in a 21,742 MT reduction in CO2e. Energy management programs and other environmental initiatives deliver win-win results, reducing both costs and environmental impacts. As an example, the company has recently completed the construction of a $19 million biomass-fueled 5.5 megawatt combined heat and power plant in El Salvador. This new facility will reduce heavy fuel oil usage by more than 4 million gallons a year and GHG emissions by 32,750 metric tonnes. This is the equivalent of planting 839,755 trees. We are pursuing resources to power our key El Salvador facilities with 100% renewable resources.

CC2.2b

Please explain why climate change is not integrated into your business strategy

CC2.2c Does your company use an internal price on carbon?

Yes

CC2.2d

Please provide details and examples of how your company uses an internal price on carbon

The company places an indirect value on carbon emission reductions as related to achieving the overall corporate goal of reducing carbon by 40% vs a 2007 baseline. Operational decisions related to the economics of energy supply includes evaluating impacts on carbon reductions.

CC2.3

Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Direct engagement with policy makers Trade associations Funding research organizations

CC2.3a

On what issues have you been engaging directly with policy makers?

Focus of Corporate Details of engagement Proposed legislative solution legislation Position

Hanesbrands participated in the CDP Cities North American Hanesbrands engages with various national trade associations Workshop held in Charlotte, North Carolina as a presenter and (like the AAFA), the US government, foreign governments and sponsor, and participated as well in roundtable and panel their administrations on a variety of initiatives targeting the discussions on topics relating to energy efficiency and climate expansion of free market concepts that encourage responsible Energy Support change. In addition, Hanesbrands also engages with policy economic development while reducing environmental impact. As efficiency makers through its active participation as a US EPA ENERGY an example, the US EPA ENERGY STAR program is a voluntary STAR industrial partner, through participation in the World program that helps businesses and individuals save money and Energy Engineering Congress (WEEC), and the Association of protect the climate through superior energy efficiency which has Energy Engineers (AEE), and through membership in the resulted in helping families and businesses save $362 billion on Focus of Corporate Details of engagement Proposed legislative solution legislation Position

American Apparel and Footwear Association (AAFA), the utility bills, while reducing greenhouse gas (GHG) emissions by Business Roundtable, Cotton Leads, the Council for 2.5 billion metric tons since 1992. Economically Sustainable Textile and Apparel Business (CESTAB), Corporate Eco Forum, the National Council of Textile Organizations (NCTO), the Sustainable Apparel Coalition (SAC), the US Council of International Business (USCIB), and tier I membership in The Sustainability Consortium (TSC). This engagement includes discussions involving policy, best management practices, and new technologies. The company also engages directly with its utility providers and with government and regulatory agencies on energy and emissions- related issues.

CC2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Is your position on climate Trade How have you, or are you attempting to, influence the change Please explain the trade association's position association position? consistent

with theirs?

American The AAFA supports the following statement: "In the past HanesBrands agrees that being a good corporate citizen is a Apparel and decade the apparel and footwear industry has moved to the great business decision. HanesBrands encourages the Mixed Footwear forefront of sustainability. The industry has found that being a adoption of environmentally responsible manufacturing and Association good corporate citizen and producing sustainably is a great business practices of member companies by sharing the Is your position on climate Trade How have you, or are you attempting to, influence the change Please explain the trade association's position association position? consistent

with theirs?

business decision. Various sustainability initiatives have company's goal-oriented, metrics driven approach to energy brought together the industry and led to a collective push management, chemical management and employee towards ever-more sustainable products and manufacturing management. HanesBrands' President, Chief Global Supply processes. With more and more resources being put towards Chain/IT Officer holds a leadership position serving on the sustainability initiatives, it is likely that the industry will continue Executive Committee of the AAFA Board of Directors. to push the envelope in the coming years." From the TSC website: “The Sustainability Consortium (TSC) is a global organization transforming the consumer goods HanesBrands actively engages with The Sustainability industry to deliver more sustainable consumer products. We Consortium through frequent participation in industry working are dedicated to improving the sustainability of consumer group meetings and attendance at the group’s annual summit. products. Our Members and partners include manufacturers, HanesBrands reviews and comments on TSC Product The retailers, suppliers, service providers, NGOs, civil society Category Toolkits and further engages with other member Sustainability Mixed organizations, governmental agencies and academics. Each organizations on environmental projects such as the multi- Consortium member brings valuable perspectives and expertise. TSC industry Cold Water Wash initiative, which is focused on convenes our diverse stakeholders to work collaboratively to developing a consumer messaging toolkit for use by all build science-based decision tools and solutions that address participants to talk about energy and the other benefits of sustainability issues that are materially important throughout a washing garments in cold water. product’s supply chain and lifecycle. TSC also offers a portfolio of services to help drive effective implementation.” Hanesbrands demonstrates industry leadership through active participation in the Corporate Eco Forum. The company participates in CEF's Annual Leadership Retreat, and Hanesbrands' President, Chief Global Supply Chain/IT Officer Corporate Eco Forum (CEF) is an invitation-only membership holds a position on their Leadership Council, "a group of organization for large companies that demonstrate a serious pioneering executives whose leadership has advanced commitment to sustainability as a business strategy issue. sustainability strategy and execution within the Global 500," Corporate Eco Mixed CEF’s mission is to help accelerate sustainable business which has responsibility for shaping the agenda of the annual Forum innovation by creating the best neutral space for senior leadership meeting. Hanesbrands encourages the adoption of business leaders to strategize and exchange best-practice environmentally responsible manufacturing and business insights. practices of member companies by sharing the company's approach to integrating sustainability strategy into business plans. Elements of the strategy include environmental stewardship, energy management, chemical management and employee engagement. Is your position on climate Trade How have you, or are you attempting to, influence the change Please explain the trade association's position association position? consistent

with theirs?

Business Roundtable (BRT) is an association of chief executive officers of leading U.S. Companies working to promote sound public policy and expanded opportunity for all Americans through sound public policy. Business Roundtable CEOs are focused on ten key issues at the intersection of the Hanesbrands encourages the adoption of environmentally economy and business. In the Business Roundtable's Energy responsible manufacturing and business practices of member and Environment Committee Policies and Priorities, they state companies by sharing the company's approach to energy Business the following: "Access to reliable, affordable energy undergirds management, chemical management and employee Mixed Roundtable US national and economic security, and a clean, healthy engagement. It is the intent of the company to influence its environment is essential for economic prosperity now and for suppliers and other companies to leverage best management future generations. Business Roundtable supports policies that practices thereby further reducing energy usage, GHG capitalize on America's strengths in technology and energy emissions, water usage, and costs. diversity to maximize U.S. energy options and preserve environmental quality. The business community has a special obligation to step forward and help build an economically sustainable future.”

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund?

CC2.3e

Please provide details of the other engagement activities that you undertake

CC2.3f What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

HanesBrands' environmental and energy sustainability strategy is solidly embedded into our global corporate long-range operational business goals and plans. The Board-level Audit Committee has responsibility for HanesBrands' enterprise risk management functions and provides oversight on issues such as climate change risk exposures and the steps management has taken to monitor, control, and report such exposures. The management of HanesBrands undertakes, and the Audit Committee reviews and discusses, an annual assessment of HanesBrands' risks on an enterprise-wide basis. The strategy's impacts are primarily carried out through its involvement in various trade associations, interaction with community leaders and through the company's owned and operated supply chain, where the majority of HanesBrands environmental emissions occur. In addition, the company's corporate social responsibility organization is included in environmental sustainability strategy and policy discussions to ensure alignment.

CC2.3g

Please explain why you do not engage with policy makers

Further Information

Page: CC3. Targets and Initiatives

CC3.1

Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?

Intensity target Renewable energy consumption and/or production target

CC3.1a

Please provide details of your absolute target

Base year emissions % of % reduction covered by ID Scope emissions in Base year Target year Comment from base year target (metric tonnes Is this a science- scope CO2e) based target?

CC3.1b

Please provide details of your intensity target

Normalized % % of base year reduction Base Target Is this a science- ID Scope emissions Metric emissions Comment from year year based target? in scope covered by base year target

Scope 1 & 2 CO2e intensity emission goal No, as there is of 40% reduction by 2020 versus baseline currently no year 2007. Our normalized 2007 gross base Metric Scope 1+2 established year scope 1 and 2 GHG emissions were tonnes CO2e Int1 (location- 100% 40% 2007 0.001193 2020 science-based 396,967 metric tonnes, yielding an intensity per unit of based) targets of 0.001193. Our 2020 GHG emissions production methodology in this intensity reduction goal is calculated as sector follows: (0.001193*(1-0.4))= 0.716 kg CO2e / lb.

CC3.1c

Please also indicate what change in absolute emissions this intensity target reflects

Direction of Direction of change change % change % change anticipated in anticipated in anticipated in anticipated in ID absolute Scope absolute Scope Comment absolute Scope absolute Scope 1+2 emissions 3 emissions at 1+2 emissions 3 emissions at target target

completion? completion?

Achieving a 40% reduction in carbon emissions intensity by 2020 versus a Int1 Decrease 46.00 No change 0 2007 baseline year will result in an expected 46% reduction in absolute carbon emissions when considering a 2% growth in production.

CC3.1d

Please provide details of your renewable energy consumption and/or production target

Base year % renewable

Energy types energy for % renewable energy in target Base Target ID covered by energy type energy in base year Comment year year target covered year

(MWh)

Our goal is to increase renewable energy generated using All energy RE1 2007 1612817.78 28.7% 2020 40% biomass, hydro, and geothermal from 28.7% in 2007 to consumed 40% in 2020.

CC3.1e

For all of your targets, please provide details on the progress made in the reporting year

% complete % complete (emissions ID Comment (time) or renewable energy)

Our carbon emission reduction strategy is to improve energy usage efficiency while at the same time Int1 76.92% 40.75% growing our use of renewable energy. During the 2016 reporting year, our carbon intensity fell to 40.75% of our 2020 40% reduction target. Our renewable energy improved to 63.25% of our 40% renewable target. Going forward, the company has RE1 76.92% 63.25% plans to increase the utilization of onsite biomass fired steam and power plants and expand the use of purchase renewable electricity.

CC3.1f

Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years

CC3.2

Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

Yes

CC3.2a

Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Taxonomy,

project or % methodology % R&D in Are you revenue used to low Level of Description of product/Group of reporting from low classify carbon aggregation products low carbon carbon product/s as product/s Comment product/s product/s low carbon in the or avoided in the or to reporting emissions? reporting calculate year year avoided

emissions

Environmental responsibility means changing not only the way we make products, but also the nature of the Our overall environmental program products we make. Hanesbrands’ encourages innovation in the EcoSmart® line features hoodies, socks, development of low energy intensity and sweats and T-shirts made in part from reduced environmental impact products. recycled plastic bottles or recycled cotton. The company's energy management Across all of Hanesbrands, our EcoSmart® program has reduced global carbon products keep the equivalent of more than emissions by approximately 53,000 metric 62 million plastic bottles from landfills each tons (MT) by improving energy usage year. Also, many of our additional products efficiency and consumption of renewable are made with recycled yarns, innovative energy sources. In addition, the company processes, and renewable energy. For has increased use of raw materials that example, in 2016 Hanesbrands are manufactured with reduced GHG Company- Avoided Other: See manufactured products from raw materials emissions. For example, in 2016 the wide emissions comment that included over 1 million pounds of company consumed a significant amount recycled cotton. The project involves of yarn that was manufactured using a collecting clipping waste and yarn from cut more energy efficient process that and sew operations and sorting the waste consumes over 50% less energy per material for fiber content, color and quality. pound, reducing our scope 3 emissions This practice achieves significant from yarn suppliers. Further, by recycling reductions in emissions to the environment plastic bottles to make polyester yarn, the through reduced use of process water and company recovers polyester material from energy. More importantly, the use of the equivalent of over 62 million 20 ounce recycled fabric reduces environmental plastic bottles, which equates to 1,520 impacts for growing cotton. This results in tons of landfill avoidance, and 1,720 MT significant reductions in water used for of CO2e emissions reduced. irrigation, less fertilizer, which is energy intensive to produce, reductions in the use

Taxonomy,

emissions

of herbicides, and no additional harvesting. In addition, HanesBrands’ global energy and environmental management systems have reduced carbon emissions by 16% since our baseline year of 2007 and the company has set a goal to reduce our baseline carbon by 40% by 2020.

CC3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Total estimated annual CO2e savings in metric tonnes Stage of development Number of projects CO2e (only for rows marked *)

Under investigation 42

To be implemented* 15 7210 Implementation commenced* 1 32750.00 Implemented* 223 7998 Not to be implemented 0

CC3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Annual Estimated monetary Investment annual savings required Activity Description of CO2e (unit (unit Payback Estimated

type activity savings Voluntary/ currency currency - period lifetime of Scope Comment (metric Mandatory - as as the

tonnes specified specified initiative

CO2e) in CC0.4) in CC0.4)

The savings resulting from the company's investment in the Installation of a combined heat and power plant Scope 2 Low carbon 5.5 MW biomass in El Salvador have been (market- Voluntary 11-15 21-30 energy fired combined 32750 0 19000000 challenged by low oil prices. based) years years installation heat and power Even so, in 2016 El Salvador

plant biomass operations helped the company avoid 12,000 MT of CO2e. Behavioral Employee 7998 Scope 1 Voluntary 1800000 100000 1-3 years 6-10 years Hundreds of projects from Annual Estimated monetary Investment annual savings required Activity Description of CO2e (unit (unit Payback Estimated

type activity savings Voluntary/ currency currency - period lifetime of Scope Comment (metric Mandatory - as as the

tonnes specified specified initiative

CO2e) in CC0.4) in CC0.4)

change engagement - Scope 2 focusing on low/no cost energy kaizens (location- and treasure based) hunts.

CC3.3c

What methods do you use to drive investment in emissions reduction activities?

Method Comment

Compliance with regulatory New equipment is installed to meet applicable local environmental standards. It is the policy and commitment of the company requirements/standards to meet or exceed performance designated by applicable regulations. Dedicated budget for energy Money is earmarked in the capital budget for energy efficiency projects and for use of alternate fuels. efficiency Investing in employee engagement opportunities helps to drive emissions reductions. For example, employees are engaged through inclusion in energy kaizen and treasure hunt events that are focused on energy and water usage reductions that help drive emissions reductions. In addition, the company provides ongoing communications with employees about the importance Employee engagement of conserving energy and water both at work and at home. HanesBrands regularly shares overall company, as well as site- specific, energy achievements including best practices that can be shared across the overall supply chain network. The company invests both significant time and money to build a culture of energy management as a core business value. The company offers internal recognition through a variety of avenues including publication in the corporate newsletter and the Internal incentives/recognition employee intranet and also through the President's Energy Efficiency Award, a global award that recognizes outstanding programs achievement in energy efficiency in our organization. Method Comment

Financial optimization Investments in emissions reduction activities are prioritized based on payback period and the extent of emissions reductions. calculations The company actively pursues energy projects that clear internal financial hurdles.

CC3.3d

If you do not have any emissions reduction initiatives, please explain why not

Further Information

Page: CC4. Communication

CC4.1

Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Page/Sectio Publication Attach the document n reference Status Comment

https://www.cdp.net/sites/2017/08/30108/Cli In voluntary Complet mate Change 2017/Shared HBI Environmental performance data and more can be found at communicatio 1 e Documents/Attachments/CC4.1/HBI- http://hanesforgood.com/ ns EnvironmentalPerformance-2017-Chart.pdf U.S. EPA Energy Star application. Hanesbrands is active in the US https://www.cdp.net/sites/2017/08/30108/Cli In voluntary EPA ENERGY STAR Industrial partner network. The US EPA Complet mate Change 2017/Shared communicatio 1 ENERGY STAR website hosts a variety of communications and e Documents/Attachments/CC4.1/Hanesbrand ns company profiles relating to individual sites and overall company s Energy Star Profile.JPG performance. Attached is an example of Hanesbrands company profile Page/Sectio Publication Attach the document n reference Status Comment

relating to the Partner of the Year Award recognition. https://www.energystar.gov/about/content/hanesbrands_inc https://www.cdp.net/sites/2017/08/30108/Cli Company news release announcing U.S. EPA Energy Star Award In voluntary mate Change 2017/Shared Complet issued on Business Wire. communicatio 1 Documents/Attachments/CC4.1/HBI EPA e http://www.businesswire.com/news/home/20170426005878/en/HanesB ns Energy Star 2017 POY Award Press rands-Earns-Eighth-Consecutive-U.S.-EPA-Energy Release 04-25-17 FINAL.docx Underwa https://www.cdp.net/sites/2017/08/30108/Cli In voluntary y - mate Change 2017/Shared Company news release announcing voluntary submission to CDP to be communicatio previous 1 Documents/Attachments/CC4.1/HBI CDP issued on Business Wire. ns year 2016 Disclosure Press Release 11-3-16 attached FINAL.doc https://www.cdp.net/sites/2017/08/30108/Cli Company news release announcing 2016 environmental performance In voluntary mate Change 2017/Shared Complet data on Business Wire. communicatio 1 Documents/Attachments/CC4.1/HBI Hanes e http://www.businesswire.com/news/home/20170417005594/en/HanesB ns 2016 Enviro Data Release FINAL rands-Releases-2016-Environmental-Performance-Data 041717.docx

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1

Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

CC5.1a

Please describe your inherent risks that are driven by changes in regulation

Potential Direct/ Magnitude Risk driver Description Timeframe Likelihood Estimated impact Indirect of impact Management Cost of financial method management implications

Some states The financial within the United impact that is States of America directly linked to Hanesbrands has (North Carolina) renewable a robust energy as well as some energy management countries in regulations that program in place Europe have have been and has worked enacted promulgated in to reduce and Renewable the United States offset the impacts Energy and is currently of rising energy Energy Efficiency expected to be rates through None - a holistic Portfolio very small mainly Renewable Increased energy efficiency. energy Standards 3 to 6 due to lower energy operational Direct Likely Low The impact on the management (REPS) that years energy use regulation cost overall business structure is in require investor- compared to is very small due place. owned utilities in more complex in large part to the North Carolina to operations that amount of energy meet up to 12.5% are not currently consumed in of their energy impacted; warehouse needs through HanesBrands operations as renewable energy electricity use in compared to resources or the U.S. overall company energy efficiency represents energy use. measures. approximately HanesBrands 12.5% of the operates several company's

Potential Direct/ Magnitude Risk driver Description Timeframe Likelihood Estimated impact Indirect of impact Management Cost of financial method management implications

large distribution overall energy and warehouse use portfolio. operations in However, North Carolina. renewable Electricity rates portfolio per kilowatt hour standards could have increased have an impact somewhat in on the company's recent years in electricity costs part due to the going forward. renewable For example, portfolio standard renewable set by the State. energy regulations in the European Union has a significant impact on electricity rates across the EU. Changes in Capital cost To manage the HanesBrands regulation of impacts related to risk of changing energy and carbon and other emission control environmental environmental GHG emission as equipment or regulations, the management hazardous air mandatory company has systems are in pollutants could conservation implemented a large part driven General have a financial measures are Global by an employee environmental Increased impact on the 3 to 6 difficult to predict Environmental engagement regulations, operational Direct Unlikely Low company, years and will depend Management process that has including cost affecting both on investments System (GEMS) reduced carbon planning capital and that may be that requires all emissions by operating costs. required to locations to 16% (~52,000 MT In addition, comply with manage per year) since regulatory actions regulatory limits; operations in a 2007. A large taken to address however, we manner that part of this urgent expect that the ensures the reduction has

Potential Direct/ Magnitude Risk driver Description Timeframe Likelihood Estimated impact Indirect of impact Management Cost of financial method management implications

environmental magnitude of location meets or come from low- conditions such investment would exceeds or no-cost energy as urban smog, be relatively low applicable conservation availability of due to prior regulations. The projects. In water, floods, and investment in goals of GEMS addition, the violent storm conservation are the same as company risks, present measures and our global energy continues to additional risks -- renewable management make strategic including energy assets program which is investment in business such as the to reduce high-efficiency interruption biomass fired consumption and utility support and/or mandates combined heat to reduce systems, such as to reduce and power plant emissions to the air conditioning, manufacturing in El Salvador. In environment. air compressors, capacity that addition, our These two and heat could increase ongoing strategy management recovery. both capital and to increase our systems are Significant, multi- operating costs. renewable focused on waste million dollar energy portfolio minimization, investments have reduces carbon employee also been made emissions which engagement, and in biomass fired further mitigates compliance. boiler systems the risk of capital and combined investment. heat and power systems. Other than personnel costs, the cost of managing this risk is generally small when taking into account the cost savings generated.

CC5.1b

Please describe your inherent risks that are driven by changes in physical climate parameters

Direct/ Potential Magnitude Risk driver Description Timeframe Indirect Likelihood Estimated impact of impact Cost of financial Management method management implications

HanesBrands physical risks are regularly assessed. The company’s business Significant continuity plan, which is fluctuations in reviewed by the Audit climate patterns Committee, identifies could lead to change risks from extreme in weather, droughts, weather impacting floods, etc., creating product flows and raw volatility in the price materials. The risks are of various input known, manageable, costs, such as cotton and quantified on a cost and petroleum- Hanesbrands' per unit basis. related materials, Uncertainty Increased physical risks Elements of the plan utilities, freight and Uncertainty of of physical operational Unknown Direct Unknown Low are quantified, include managing wages, leading to physical risks risks cost known and operations through material adverse manageable. HanesBrands' global effects on our supply chain, business, operations, implementing financial conditions environmental and cash flows. In measures such as addition, these energy and water climate changes can conservation, and loss adversely impact prevention measures physical plant that prepare sites for operations and potential catastrophic schedules. impacts. Potential risks may include: 1)Temperature events: Higher temperatures Direct/ Potential Magnitude Risk driver Description Timeframe Indirect Likelihood Estimated impact of impact Cost of financial Management method management implications

may cause increased air conditioning loads within plants, while extreme temperature fluctuations may negatively impact the stability of manufacturing processes. Elevated cooling demand would contribute to greater energy use, costs, and resultant GHG emissions, and extremes could have adverse effects on chemical and raw material inputs and influence the availability of consistent power to our facilities. 2)Hurricanes: Increased hurricane frequency poses risks of wind and water damage to manufacturing sites, leading to possible disruptions in the flow of goods. 3)Drought & Floods: Unpredictable rain amounts could negatively impact our supply of raw materials (cotton) and supplies of biomass used to fuel industrial boilers within Direct/ Potential Magnitude Risk driver Description Timeframe Indirect Likelihood Estimated impact of impact Cost of financial Management method management implications

our textile manufacturing operations. HanesBrands has a robust global and local set of emergency response procedures to mitigate the above risks.

CC5.1c

Please describe your inherent risks that are driven by changes in other climate-related developments

Direct/ Risk Potential Magnitude Description Timeframe Indirect Likelihood Estimated driver impact of impact Management Cost of financial method management implications

As an apparel HanesBrands company, changing operates in mature climate conditions market segments. may affect our The company's It is difficult to consumers' behavior products are in accurately Production and with respect to categories with Changing Reduced estimate the capacity products that they minimal risk of consumer demand for Unknown Direct Unlikely Low impact. planning is a buy. Periods of becoming obsolete. behavior goods/services However, we part of our cost unseasonably warm Our management expect it to be of goods sold. weather in the fall or process is to minimal. winter, or periods of monitor point-of- unseasonably cool sale data to and wet weather in determine customer the Spring or preference. Direct/ Risk Potential Magnitude Description Timeframe Indirect Likelihood Estimated driver impact of impact Management Cost of financial method management implications

Summer, can negatively impact consumer traffic and retail spending. Increased concern about the environment, both within the communities where Our strategy is to we do business and meet or to exceed internationally, has regulatory created inherent requirements while risks for companies at the same time that do not The minimizing our responsibly manage company’s emissions of We do not see impact on the good carbon by this environment. reputation is improving energy management as Corporate difficult to usage efficiency a cost. To the reputations can be place a value and increasing the contrary, we Reduced Other detrimentally on. However, use of renewable believe the way demand for Unknown Direct Unlikely Low drivers affected by we do not energy. By we manage goods/services ineffective anticipate any demonstrating environmental environmental material environmental and climate- management. To adverse leadership and by related risk ensure that financial being engaged in generates cost HanesBrands impacts at this community savings. effectively manages time. improvement these risks, the initiatives, the company has company seeks to integrated protect its environmental reputation and drive management with an shareholder value. award-winning Corporate Social Responsibility program that has Direct/ Risk Potential Magnitude Description Timeframe Indirect Likelihood Estimated driver impact of impact Management Cost of financial method management implications

been recognized multiple times by independent organizations such as Glasswing International, Great Place to Work Institute, Forbes U.S. Best Large Employer and various other regional recognitions. These recognitions are largely the result of the company’s comprehensive compliance program governing five pillars of corporate responsibility including: global ethics, facility compliance, environmental sustainability, product development and product safety, community and philanthropy.

CC5.1d

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1e

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC5.1f

Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Page: CC6. Climate Change Opportunities

CC6.1

Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments

CC6.1a

Please describe your inherent opportunities that are driven by changes in regulation

Magnitud Opportunit Potential Timefram Direct/Indire Likelihoo Estimated Description e of Cost of y driver impact e ct d financial impact Manageme manageme implication nt method nt s

Ratification of the Paris Climate Agreement, While the which calls value of our for a new carbon mechanism emissions similar to credits are Selling the Clean likely to credits International agreements such as Developme increase, would come COP21 Paris Agreement purport to nt the at the align international regulatory Mechanism company’s expense of initiatives that may increase the under the internal goal counting the Internationa value of carbon emission credits Reduced Kyoto to reduce 1 to 3 investment l which would increase the value of operation Direct Very likely Low Protocol, carbon 40% years as progress agreements renewable energy assets that are al costs will enable by 2020 vs towards the currently certified (see UNFCCC emission our 2007 company’s Project #6929; reductions baseline renewable https://cdm.unfccc.int/Projects/DB/D in one requires energy NV-CUK1344079596.55/view ). country to retaining the portfolio be counted credits to goal. toward avoid another increasing country’s our internal nationally carbon determined emissions. reduction contribution (NDC).

Magnitud Opportunit Potential Timefram Direct/Indire Likelihoo Estimated Description e of Cost of y driver impact e ct d financial impact Manageme manageme implication nt method nt s

Such a mechanism, which is aimed to achieve the goal of limiting global temperature increase well below 2 degrees Celsius, could increase the value of renewable energy assets with certified carbon emissions credits. The new mechanism could increase the value of our current emission credit from direct owned renewable energy assets

Magnitud Opportunit Potential Timefram Direct/Indire Likelihoo Estimated Description e of Cost of y driver impact e ct d financial impact Manageme manageme implication nt method nt s

(35,732 MT) to $20 to $30/Mt. This represents annual financial opportunity of $700,000 to $1,000,000.

CC6.1b

Please describe your inherent opportunities that are driven by changes in physical climate parameters

Opportunity Direct/ Magnitude Description Potential impact Timeframe Likelihood Estimated driver Indirect of impact Management Cost of financial method management implications

Other: Production There is a risk of of lighter-weight We forecast manufacturing garments in hot Impact on sales Change in product products that are Change in climates and related to product mix demands based not aligned with mean heavier-weight 1 to 3 More likely Low- manufacturing to meet Direct on a variety of seasonal (average) garments in cold years than not medium to meet market inputs and demand, precipitation climate s can seasonal market demands consumer potentially drive sales and demands insights resulting in margin reduced sales. opportunities.

CC6.1c

Please describe your inherent opportunities that are driven by changes in other climate-related developments

Opportunity Direct/ Magnitude Description Timeframe Likelihood Estimated driver Potential Indirect of impact Cost of financial Management method impact management implications

The recognition opportunities As of June mentioned The company’s 2017, nearly previously in good reputation 100 community CC5.1c help is difficult to By demonstrating development to improve place a value environmental leadership, projects have employee on, but the engaging in community been morale, Wider impact of low improvement initiatives, and completed with 1 to 3 Virtually Reputation reduce social Direct Medium employee growing our Hanes for an investment years certain turnover, benefits morale, Good program (see: of more than attract talent, increased turn www.hanesforgood.com/ ), $2.5 million, and bolster over, and the company protects and 500,000-plus the company’s noncompliance enhances its reputation. volunteer reputation with could potentially hours and over government be costly. 11,000 officials and volunteers. our customers. Our corporate culture, which values sustainability None; and corporate social integrated into responsibility, translates holistic into more insurers eager to corporate Fluctuating Improve Other: More do business with us, and culture. As socio- corporate Lower 1 to 3 Low- competitive Direct Very likely arguably at lower premiums noted economic culture and insurance years medium insurance than most of our peers, previously, we conditions reputation. costs premiums. because companies like us believe our tend to have better loss overall CSR experience. To put it more efforts reduce succinctly, by being costs. sustainable and good

Opportunity Direct/ Magnitude Description Timeframe Likelihood Estimated driver Potential Indirect of impact Cost of financial Management method impact management implications

corporate citizens, our indirect business expenses are also reduced.

CC6.1d

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1e

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

CC6.1f

Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Base year Base year emissions (metric tonnes CO2e) Scope

Sun 31 Dec 2006 - Sat 29 Dec Scope 1 2007 140963

Sun 31 Dec 2006 - Sat 29 Dec Scope 2 (location-based) 2007 182215

Sun 31 Dec 2006 - Sat 29 Dec Scope 2 (market-based) 2007 73789

CC7.2

Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

CC7.2a

If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

CC7.3

Please give the source for the global warming potentials you have used

Gas Reference

CO2 IPCC Fourth Assessment Report (AR4 - 100 year) CH4 IPCC Fourth Assessment Report (AR4 - 100 year) N2O IPCC Fourth Assessment Report (AR4 - 100 year)

CC7.4

Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Emission Fuel/Material/Energy Unit Reference Factor

Other: Metric Tonne US EPA Emission Factors for Greenhouse Gas Inventories, last modified 19 November 2015 Distillate fuel oil No 2 0.0742 per Million British (https://www.epa.gov/sites/production/files/2015-12/documents/emission- Thermal Units factors_nov_2015.pdf) Other: Metric Tonne US EPA Emission Factors for Greenhouse Gas Inventories, last modified 19 November 2015 Natural gas 0.0531 per Million British (https://www.epa.gov/sites/production/files/2015-12/documents/emission- Thermal Units factors_nov_2015.pdf) Other: Metric Tonne US EPA Emission Factors for Greenhouse Gas Inventories, last modified 19 November 2015 Propane 0.0631 per Million British (https://www.epa.gov/sites/production/files/2015-12/documents/emission- Thermal Units factors_nov_2015.pdf) Other: Metric Tonne US EPA Emission Factors for Greenhouse Gas Inventories, last modified 19 November 2015 Residual fuel oil 0.0754 per Million British (https://www.epa.gov/sites/production/files/2015-12/documents/emission- Thermal Units factors_nov_2015.pdf) metric tonnes CO2e Electricity 0.5126 various - Egrid 2014 per MWh

Further Information

File attached for electricity emission factors for USA, international locations and fuel types. On table 7.4 above the USA average is listed as 0.5126 MT CO2e/MWH; state and region specific eGrid factors used for each location. International grid averages from Ecometrica (2011). Electricity-specific emission factors for grid electricity.

Attachments

https://www.cdp.net/sites/2017/08/30108/Climate Change 2017/Shared Documents/Attachments/ClimateChange2017/CC7.EmissionsMethodology/HanesBrands Emission Factors for 2016 GHG Inventory.pdf

Page: CC8. Emissions Data - (1 Jan 2016 - 31 Dec 2016)

CC8.1 Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

103392

CC8.3

Please describe your approach to reporting Scope 2 emissions

Scope 2, location-based Scope 2, market-based Comment

We are reporting a Scope 2, location-based figure We are reporting a Scope 2, market-based figure

CC8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location-based Scope 2, market-based (if applicable) Comment

123885 48882

CC8.4

Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Yes

CC8.4a

Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Relevance of Relevance of Relevance of market-based location-based Source Scope 1 Scope 2 Explain why the source is excluded Scope 2 emissions emissions from emissions from this this source (if from this source applicable) source

Accounting for refrigerants is governed under Hanesbrands' Global Environmental Management System (GEMS) and associated Fugitive emissions from operational policies and procedures. An independent verification was HFC’s, CFC’s and other Emissions are No emissions No emissions performed of Hanesbrands' 2016 greenhouse gas emissions inventory. refrigerants associated with not relevant from this source from this source During the verification, the team examined documentation and data unintentional releases such as relating to the company’s refrigerant use to confirm the low proportions equipment leaks this source category contributed to the overall GHG emission profile and deemed not relevant. HanesBrands Retail Stores - Emissions are Emissions are Emissions are Hanesbrands' Direct to Consumer operations include domestic USA not relevant not relevant not relevant company-owned retail stores that sell its branded products directly to

consumers in the United States. As of January 2, 2016, we had 252 stores in the United States. Many of the locations are comprised of sub-leased space in commercial outlet malls, some of which have utilities included in the rental agreement. A sampling of energy use and subsequent GHG emissions of retail stores from across the country is tracked and reported using US EPA’s ENERGY STAR Portfolio Manager tool. The analysis of 2015 sample data indicated that an individual retail store averaged 49.5 Metric tonnes CO2e per year. Applying this average to the entire portfolio of 252 domestic locations yields a GHG emission of 12,474 metric tonnes CO2e. When considering the size of the emissions from an individual location, the quantity of locations, their individual potential to drive emissions reductions, and the overall contribution to the company's GHG inventory, the relevance of reporting the portfolio of retail stores must be evaluated. Scope 1 fugitive GHG emissions reported as CO2e from company owned and operated on-site Waste Water Treatment facilities have Fugitive emissions from been evaluated and quantified by our engineering team and a third- company-operated on-site Emissions are No emissions No emissions party wastewater consult and determined to be 462 metric tonnes industrial waste water not relevant from this source from this source CO2e for 2015. The findings and calculations have subsequently been treatment works reviewed by an independent verification team. The quantity of GHG’s from this source had minimal contribution (1%) to the company’s overall GHG emission profile and determined not relevant nor material. Our regional sales and administrative offices are small local offices primarily used for sales or customer service and are typically,5,000 Regional Sales and Emissions are Emissions are Emissions are square feet. The energy use and GHG emissions are materially Administrative Offices not relevant not relevant not relevant insignificant. Oftentimes, utilities are included in the rent and HanesBrands does not have visibility of energy use and charges. Hanesbrands has a few commercial properties that primarily consist of Temporary and Seasonal Emissions are Emissions are Emissions are overflow warehouses used for the storage of surplus equipment and/or Small Warehouses and not relevant not relevant not relevant the storage of excess finished product due to seasonal swings in Storage Locations supply and demand. These spaces are usually leased/rented on a

short term basis to accommodate a dynamic supply chain. Spaces may include sublease of a facility for warehouse space or security structures (guard house) for trailer parking storage. Most of these spaces are small in size and use very little energy. Oftentimes, the energy is included in the space rental and Hanesbrands does not have visibility of the energy use. This space is materially insignificant with regards to energy use and greenhouse gas emissions. The scope 1 and 2 emissions associated with these spaces are considered de minimus. Hanes recently acquired Pacific Brands of Australia in July 2016. Efforts are underway to incorporate the energy and GHG metrics Emissions Emissions Emissions reporting into the overall company's GHG emissions inventory. In the Recent Acquisition of Pacific excluded due to excluded due to excluded due to coming year Hanesbrands will develop appropriate tracking Brands of Australia a recent a recent a recent mechanisms and incorporate energy use and carbon emissions from acquisition acquisition acquisition these sites into overall company metrics. The recent acquisition added a mixed portfolio of real estate including retail locations and office, distribution and manufacturing locations. Hanes recently acquired GTM Sportswear in September 2016. Efforts are underway to incorporate the energy and GHG metrics reporting Emissions Emissions Emissions into the overall company's GHG emissions inventory. In the coming Recent Acquisition GTM excluded due to excluded due to excluded due to year Hanesbrands will develop appropriate tracking mechanisms and Sportswear a recent a recent a recent incorporate energy use and carbon emissions from these sites into acquisition acquisition acquisition overall company metrics. The recent acquisition added a mixed portfolio of real estate including office, distribution and manufacturing locations. Hanes recently acquired Champion Europe in April 2016. Efforts are underway to incorporate the energy and GHG metrics reporting into the Emissions Emissions Emissions overall company's GHG emissions inventory. In the coming year Recent Acquisition Champion excluded due to excluded due to excluded due to Hanesbrands will develop appropriate tracking mechanisms and Europe a recent a recent a recent incorporate energy use and carbon emissions from these sites into acquisition acquisition acquisition overall company metrics. The recent acquisition added a mixed portfolio of real estate including retail locations and office, and

distribution.

CC8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Uncertainty Main sources of Please expand on the uncertainty in your data range uncertainty Scope

Hanesbrands has gone through exhaustive efforts to identify all relevant sources of scope 1 emissions. Hanesbrands uses a wide variety of methods to capture and record energy data from multiple facilities Data Gaps around the globe. Methods and sources of data include supervisory control and data acquisition systems Metering/ (SCADA), manual reading and recording of utility meters such as natural gas, steam and propane, fuel Less than or Measurement Scope 1 inventories, manual data entry, and review of utility invoices. The potential exists for human error of equal to 2% Constraints misreading a meter or data entry error during the input process. Utility data is reviewed for accuracy and Data Management analyzed each month at multiple levels throughout the company for anomalies and changes to energy

use. Relevant emission factors such as for fuel are regularly checked from reputable sources such as the US DOE EIA to ensure calculations are correct. No known uncertainty is present; Hanesbrands has gone through exhaustive efforts to identify all relevant sources of scope 2 emissions. Hanesbrands uses a wide variety of methods to capture and record energy Scope 2 No Sources of data from multiple facilities around the globe. Methods and sources of data include utility invoices, Less than or (location- Uncertainty supervisory control and data acquisition systems (SCADA), manual reading and recording of utility meters, equal to 2% based) and manual data entry. The potential exists for human error of misreading a meter, invoice or data entry error. Utility data is reviewed for accuracy and analyzed each month at multiple levels throughout the company for anomalies and changes to energy use and cost. Relevant emission factors for scope 2

Uncertainty Main sources of Please expand on the uncertainty in your data range uncertainty Scope

emissions such as grid factors are regularly checked from reputable sources such as the US EPA eGRID and the IEA to ensure calculations are correct. No known uncertainty is present; Hanesbrands has gone through exhaustive efforts to identify all relevant sources of scope 2 emissions. Hanesbrands uses a wide variety of methods to capture and record energy data from multiple facilities around the globe. Methods and sources of data include utility invoices, Scope 2 No Sources of supervisory control and data acquisition systems (SCADA), manual reading and recording of utility meters, Less than or (market- Uncertainty and manual data entry. The potential exists for human error of misreading a meter, invoice or data entry equal to 2% based) error. Utility data is reviewed for accuracy and analyzed each month at multiple levels throughout the company for anomalies and changes to energy use and cost. Relevant emission factors for scope 2 emissions such as grid factors are regularly checked from reputable sources such as the US EPA eGRID and the IEA to ensure calculations are correct.

CC8.6

Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

Third party verification or assurance process in place

CC8.6a

Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Proportion Type of of reported Status in verification Relevant Verification Scope 1 the current or Page/section standard or assurance Attach the statement emissions reporting assurance reference cycle in place verified (%) year

https://www.cdp.net/sites/2017/08/30108/Climate Change Annual Limited Pages 1 and ISO14064- Complete 2017/Shared Documents/Attachments/CC8.6a/Hanesbrands 2017 71 process assurance 2 3 GHG Verification Statement_20170626.pdf

CC8.6b

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emission Monitoring Systems (CEMS)

Regulation % of emissions covered by the system Compliance period Evidence of submission

CC8.7

Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures

Third party verification or assurance process in place

CC8.7a

Please provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Proportion Type of Location- Verification Status in of verification Page/Section Relevant based or or the reported or reference standard market- assurance current Attach the statement Scope 2 assurance based cycle in reporting emissions

figure? place year verified

(%)

https://www.cdp.net/sites/2017/08/30108/Climate Change Location- Annual Limited 2017/Shared pages 1 and ISO14064- Complete 71 based process assurance Documents/Attachments/CC8.7a/Hanesbrands 2017 GHG 2 3 Verification Statement_20170626.pdf https://www.cdp.net/sites/2017/08/30108/Climate Change Market- Annual Limited 2017/Shared pages 1 and ISO14064- Complete 71 based process assurance Documents/Attachments/CC8.7a/Hanesbrands 2017 GHG 2 3 Verification Statement_20170626.pdf

CC8.8

Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2

Additional data Comment points verified

Hanesbrands contracted with Trinity Consultants Inc. to provide independent third-party technical services relating to conducting a limited assurance verification of the company’s greenhouse gas (GHG) emission inventory for year 2016. The scope of the verification Year on year change in included the activity data, calculations, and formulas used to calculate GHG emissions for Hanesbrands operational control boundary emissions (Scope 1 with the objective to review 70% or more of activity data and resultant Scope 1 and Scope 2 GHG emissions. Similarly, Trinity and 2) consultant provided independent technical services in previous years to provide a limited assurance verification of 2014 and 2015 activity data and resultant Scope 1 and 2 GHG emissions. As such, a year over year comparison of scope 1 and 2 emissions was possible.

CC8.9 Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

Yes

CC8.9a

Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2

45870

Further Information

CC8.9a - CO2e emissions associated with biomass fired steam and CHP plants in Dominican Republic and El Salvador.

Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC9.1

Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1a

Please break down your total gross global Scope 1 emissions by country/region

Country/Region Scope 1 metric tonnes CO2e

Argentina 0 Brazil 956 Canada 252 China 197 Czech Republic 199 Dominican Republic 16267 El Salvador 43092 France 4127 Germany 825 Honduras 790 Italy 236 Mexico 1629 Puerto Rico 3970 Romania 2566 Slovakia 2536 Spain 335 Thailand 25 United States of America 24920 Vietnam 649

CC9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By activity

CC9.2a Please break down your total gross global Scope 1 emissions by business division

Business division Scope 1 emissions (metric tonnes CO2e)

CC9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility Scope 1 emissions (metric tonnes CO2e) Latitude Longitude

CC9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 emissions (metric tonnes CO2e)

CC9.2d

Please break down your total gross global Scope 1 emissions by activity

Scope 1 emissions (metric tonnes CO2e) Activity

Manufacturing 98025 Distribution 5607 Office/Other Miscellaneous Mixed Use 300

Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2016 - 31 Dec 2016)

CC10.1

Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1a

Please break down your total gross global Scope 2 emissions and energy consumption by country/region

Purchased and Purchased and consumed low Scope 2, market-based Country/Region consumed carbon electricity, heat, steam or Scope 2, location-based (metric (metric tonnes CO2e) electricity, heat, cooling accounted in market-based tonnes CO2e) steam or cooling approach (MWh)

(MWh)

Argentina 229 0 747 0 Purchased and Purchased and consumed low Scope 2, market-based Country/Region consumed carbon electricity, heat, steam or Scope 2, location-based (metric (metric tonnes CO2e) electricity, heat, cooling accounted in market-based tonnes CO2e) steam or cooling approach (MWh)

(MWh)

Brazil 332 0 3937 0 Canada 377 0 1897 0 China 52167 0 130472 0 Czech Republic 11 0 183 0 Dominican Republic 0 22811 62317 0 El Salvador 0 2961 77775 66532 France 0 1024 15039 0 Germany 558 3553 8655 0 Honduras 0 10888 26510 0 Italy 461 0 1198 0 Mexico 0 5438 10550 0 Puerto Rico 10531 0 12332 0 Romania 1136 0 2361 0 Slovakia 870 0 4483 0 Spain 101 0 331 0 Thailand 0 0 3189 3189 United States of 50501 2207 132023 0 America Vietnam 6612 0 14852 0

CC10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By activity

CC10.2a

Please break down your total gross global Scope 2 emissions by business division

Scope 2, location-based Business division (metric tonnes CO2e) Scope 2, market-based

(metric tonnes CO2e)

CC10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility Scope 2, location-based (metric tonnes CO2e) Scope 2, market-based (metric tonnes CO2e)

CC10.2c

Please break down your total gross global Scope 2 emissions by activity

Scope 2, location-based Activity (metric tonnes CO2e) Scope 2, market-based

(metric tonnes CO2e)

Manufacturing 100518 46233 Distribution 18106 2399 Office/Other Miscellaneous Mixed Use 5260 251

Further Information

Page: CC11. Energy

CC11.1

What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2

Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type MWh

Heat 0 Steam 92752 Cooling 0

CC11.3

Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

610457

CC11.3a Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWh

Natural gas 161183 Propane 126549 Distillate fuel oil No 2 10422 Residual fuel oil 163920 Wood or wood waste 148384

CC11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Emissions MWh consumed factor (in associated with units of Basis for applying a low carbon low carbon metric Comment emission factor electricity, heat, tonnes

steam or cooling CO2e per MWh)

El Salvador Textile Manufacturing Facility and El Salvador Sock Manufacturing Facility - Electricity is provided by geothermal sources in an effort to reduce GHG emissions. A part of the company's energy management strategy includes negotiating contracts Off-grid energy consumption from and/or supply agreements for renewable electricity. This strategy impacts the emissions an on-site installation or through a calculations for the two facilities mentioned above in El Salvador (beginning August 66532 0 direct line to an off-site generator 2009). In each case, the basis for the emissions factor applied was written owned by another company communication from the electricity supplier and/or a Purchase Power Agreement (PPA) detailing the attributes of the electricity provided. The PPA instrument satisfies the definition of Low Carbon energy as outlined in the GHG Protocol Scope 2 Guidance, an amendment to the GHG Protocol Corporate Standard. The geothermal PPA is for 100%

Emissions MWh consumed factor (in associated with units of Basis for applying a low carbon low carbon metric Comment emission factor electricity, heat, tonnes

steam or cooling CO2e per MWh)

geothermal energy. Therefore, an emissions factor of 0.0 is applied to this electricity. Electricity is provided by Power Purchase Agreement (PPA) and is 100% renewable. (beginning January 2013). The basis for the emissions factor applied was written Contract with suppliers or utilities, communication from the electricity supplier detailing the attributes of the electricity with a supplier-specific emission 3189 0 provided. The PPA instrument satisfies the definition of Low Carbon energy as outlined rate, not backed by electricity in the GHG Protocol Scope 2 Guidance, an amendment to the GHG Protocol Corporate attribute certificates Standard. The PPA is for 100% hydro-electricity. Therefore, an emissions factor of 0.0 is applied to this electricity.

CC11.5

Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Consumed Total Consumed Total electricity that Total renewable renewable electricity is purchased electricity electricity electricity that is Comment consumed (MWh) produced produced produced by (MWh) (MWh) (MWh) company (MWh)

2400 MWH of electricity was produced in 2016 in El Salvador from biomass fired combined heat and power plant. Biomass fuel used to make 418469 416098 2400 2400 2400 steam and electricity has been accounted for in question 11.3a under fuels.

Further Information

Page: CC12. Emissions Performance

CC12.1

How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Decreased

CC12.1a

Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Emissions Direction Reason value Please explain and include calculation of change (percentage)

HanesBrands experienced a decrease of 4.8% in Scope 1 and 2 gross global emissions due to emissions reduction activities. In El Salvador a large biomass fired Combined Heat and Power plant came on line Emissions 4.8 Decrease and significantly reduced the amount of petroleum based fossil fuel previously required for boiler reduction activities operations. The biomass plant contributed a reduction of 3.8% in gross GHG; Additionally, multiple energy savings projects throughout Hanes global supply chain contributed a 1% decrease. Divestment 0 No change N/A Acquisition of Hanes Europe innerwear resulted in a 1% increase in GHG when comparing year over year Acquisitions 1 Increase due to the more energy intensive nature of the portfolio of products manufactured and facility mix. Mergers 0 No change N/A HanesBrands had a change in production output that had a favorable reduction in global scope 1 and 2 Change in output 2.5 Decrease GHG's. The reduced production adversely affected energy intensity in some locations, but overall resulted in a 2.5% decrease in ghg emissions. Change in 0 No change N/A methodology Change in 0 No change N/A boundary Emissions Direction Reason value Please explain and include calculation of change (percentage)

Change in physical operating 0 No change N/A conditions Unidentified 0 No change N/A Other 0 No change N/A

CC12.1b

Is your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Location-based

CC12.2

Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Metric Metric % Direction denominator: numerator (Gross change of change Intensity Unit total global combined Scope 2 from from Reason for change figure = revenue Scope 1 and 2 figure previous previous

emissions) used year year

Location- For reporting year 2015, Hanesbrands had gross global scope 1 and 2 0.0459 metric tonnes CO2e 6028199 10.9 Decrease based GHG emissions of 295,201 MTCO2e and net sales of $5,731,549 Metric Metric % Direction denominator: numerator (Gross change of change Intensity Unit total global combined Scope 2 from from Reason for change figure = revenue Scope 1 and 2 figure previous previous

emissions) used year year

($000), yielding a GHG intensity of 0.0515 MT/$000. In 2016, global scope 1 and 2 emissions were 276,699 MTCO2e and net sales of $6,028,199 ($000), yielding a GHG intensity of 0.0459 MTCO2e/$000' a 10.9% decrease. The decrease is due to a variety of factors such as reduction in production output to adjust inventory while still servicing the business; the acquisition of Hanes Europe Innerwear providing a boost to sales; changes in the mix of products sold.

CC12.3

Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Metric % Direction numerator (Gross change of change Intensity Metric global combined Metric Scope 2 from from Reason for change figure = denominator Scope 1 and 2 denominator: figure previous previous

emissions) Unit total used year year

HanesBrands had a decrease in overall global gross scope 1 and 2 ghg emissions and also had a Other: 000 metric tonnes Location- decrease in production. The decline in production 1.002 pound of 276146 4.3 Increase CO2e based was at a higher rate than the drop in global ghg finished product emissions and resulted in an unfavorable increase in the ghg intensity performance indicator.

Further Information 12.1a - Base year 2007 and 2015 have been normalized to account for acquisitions in accordance with the Greenhouse Gas Protocol. HanesBrands had a normalized 6.3% reduction in overall global gross scope 1 and 2 ghg emissions in 2016 as compared to 2015. Un-normalized to account for acquisitions, Hanes had a 0.9% increase in gross global scope 1 and 2 emissions.

Page: CC13. Emissions Trading

CC13.1

Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Period for which Verified emissions in Scheme name Allowances allocated Allowances purchased Details of ownership data is supplied metric tonnes CO2e

CC13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

CC13.2

Has your organization originated any project-based carbon credits or purchased any within the reporting period?

Yes

CC13.2a

Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Number of Number credits Credit of (metric origination Project Verified to which credits tonnes Credits Purpose, e.g. Project identification or credit type standard (metric CO2e): canceled compliance

purchase tonnes Risk

CO2e) adjusted

volume

Credit Biomass Voluntary Hanesbrands El Salvador Biomass Fired CHP Not yet verified 10588 10588 Yes origination energy Offsetting CDM Project No. 6929 CDM (Clean Credit Biomass Not https://cdm.unfccc.int/Projects/DB/DNV- Development 35738 26803 Not applicable origination energy relevant CUK1344079596.55/view Mechanism)

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Percentage of emissions Sources of metric calculated Scope 3 tonnes Emissions calculation methodology using data Evaluation emissions CO2e obtained Explanation status from

suppliers or value chain partners

The purchased goods & services emissions is a summation of six major categories of purchased goods & services including: sourced garments, yarn, packaging materials, dyes and chemicals, poly/foam & plastics and misc. fabrics. Emissions were calculated based on the following: 1. Data obtained from suppliers that followed the WRI/WBCSD GHG Protocol. 2. 19.3% of the total reported emissions in this Estimates based on internally measured carbon category came from supplier data. The Purchased goods Relevant, emission intensity factors for similar products and remaining emissions were estimated using a 620993 19.30% and services calculated aligned with the WRI/WBC SD GHG Protocol 3. MT of CO2e/$1 million spend factor that was Emission factors (MT CO2e/ $1million spend) by developed using Quantis’ Scope 3 evaluator category as calculated using emission factors tool. taken from the Scope 3 evaluator tool by Quantis in partnership with The Green House Protocol. The tool estimates emissions using 2009 world multiregional estimate of average environmental impacts by region-sector combined with global warming potential impact assessment (Timmer 2012, IPCC 2007). Emissions from capital goods were calculated using emission factors (MT CO2e/ $1million spend) derived from the Scope 3 evaluator tool by Quantis in partnership with The Green House 0.00% of the data came from suppliers, the Not relevant, Capital goods 61037 Protocol. The tool estimates emissions using 0.00% emissions were estimated using a MT CO2e/$1 calculated 2009 world multiregional estimates of average million capital spend. environmental impacts by region-sector combined with global warming potential impact assessment (Timmer 2012, IPCC 2007). Fuel-and-energy- Not relevant, 59909 Emissions for fuel and energy were calculated 0.00% 0.00% of the data came from suppliers, the Percentage of emissions Sources of metric calculated Scope 3 tonnes Emissions calculation methodology using data Evaluation emissions CO2e obtained Explanation status from

suppliers or value chain partners

related activities calculated using conversion multipliers to estimate category emissions were estimated using factors (not included in 3 emissions based on scope 1 and 2 emissions developed by Quantis. Scope 1 or 2) from three case studies carried out by Quantis. Scope 1 emissions were multiplied by 0.25 and Scope 2 emissions were multiplied by 0.20. Emissions for upstream transportation (truck, ocean, air and rail), were calculated using emission factors (MT CO2e/ $1million spend) that came from the Scope 3 evaluator tool by Quantis in partnership with The Green House Protocol. Upstream Not relevant, All upstream transportation and distribution is The tool estimates emissions using 2009 world transportation explanation 156100 0.00% included in the purchased goods and services multiregional estimates of average environmental and distribution provided listed previously. impacts by region-sector combined with global warming potential impact assessment (Timmer 2012, IPCC 2007). The basic price USD associated with each transportation mode was used. Emissions from waste generated were calculated using average emission factors for waste diversion that are published in Category 5: Waste Hanesbrands has a goal to achieve zero landfill Generated in Operations Technical Guidance for in manufacturing and distribution by 2020. The Waste generated Not relevant, 3659 Calculating Scope 3 Emissions published in The 0.00% company currently diverts 84% of its waste out in operations calculated Green House Gas Protocol. Landfill waste of landfills primarily through recycling, which is volumes were multiplied by 300 kg CO2e/MT and an 8% improvement vs. last year. recycled waste volumes were multiplied by 10 kg CO2e/MT Emissions by business travel type (air, Not relevant, automobile, and subway) were calculated using Business travel 11961 0.00% calculated emission factors (MT CO2e/ $1million spend) that came from the Scope 3 evaluator tool by Percentage of emissions Sources of metric calculated Scope 3 tonnes Emissions calculation methodology using data Evaluation emissions CO2e obtained Explanation status from

suppliers or value chain partners

Quantis in partnership with The Green House Protocol. The tool estimates emissions using 2009 world multiregional estimate of average environmental impacts by region-sector combined with global warming potential impact assessment (Timmer 2012, IPCC 2007). The basic price USD associated with each transportation mode was used. Emissions from employees commuting by car were calculated using an emission factor (1700 gCO2e/employee – year) that was taken from Quantis Scope 3 evaluator tool for category 7; "Documentation of the data and calculations to support GHG protocol". An emission factor of 1061 gCO2e/km traveled was used to calculate emissions from employees traveling by urban Employee Not relevant, 31110 buss. The factor was taken from the GHG 0.00% commuting calculated protocol "Calculating CO2 Emissions from Mobile Sources - Guidance to calculation worksheet". An emission factor of 93 gCO2e/km traveled was used to calculate emissions from employees traveling by motorbikes that are <150cc. The factor was taken from the GHG protocol "Calculating CO2 Emissions from Mobile Sources - Guidance to calculation worksheet". Emissions for leased assets (office, retail stores, warehouses, and apartments) were calculated Upstream leased Not relevant, 14287 using emission factors (MT CO2e/ square foot of 0.00% assets calculated lease space) that came from the Scope 3 evaluator tool by Quantis in partnership with The Percentage of emissions Sources of metric calculated Scope 3 tonnes Emissions calculation methodology using data Evaluation emissions CO2e obtained Explanation status from

suppliers or value chain partners

Green House Protocol. The tool estimates emissions using 2009 world multiregional estimate of average environmental impacts by region-sector combined with global warming potential impact assessment (Timmer 2012, IPCC 2007). The basic price USD associated with each transportation mode was used. Emissions from downstream transportation and distribution related to delivery of goods and Downstream Relevant, services is included in the Purchase goods and transportation 0 0.00% calculated services source list previously. To avoid and distribution duplication, this category has been intentionally omitted. Not relevant, Processing of sold products is not applicable to Processing of explanation 0 0.00% Hanesbrands because none of our products sold products provided require further processing. As an apparel company, Hanesbrands recognizes the impacts from consumers washing garments in hot water. (for example, one additional load of laundry per week washed in cold water instead of hot water over the Relevant, not Use of sold course of a year in household doing laundry yet 0 0.00% products could potentially avert 5 million metric tons of calculated GHG emissions). Even though the emissions are very difficult to measure, HanesBrands is actively engaged with The Sustainable Consortium’s efforts to promote cold water washing. End of life Relevant, not As an apparel company, Hanesbrands 0.00% treatment of sold yet recognizes impacts from disposal of our Percentage of emissions Sources of metric calculated Scope 3 tonnes Emissions calculation methodology using data Evaluation emissions CO2e obtained Explanation status from

suppliers or value chain partners

products calculated products. However, due to the complexity of understanding consumer behaviors related to waste disposal, it is difficult to accurately calculate the emissions from this category. The company’s effort to divert waste from landfills including reuse/recycle has pointed to multiple possibilities that could generate meaningful results in this category. As part of the company's efforts to celebrate Earth Day, the company recently tested partnering with Good Will where our customers received a pre-paid "Give Back Box" as well as a discount as encouragement to recycle garments. Not relevant, Downstream All leased assets are included in the upstream explanation leased assets leased assets calculations provided Not relevant, Franchises explanation Franchises are not applicable to Hanesbrands.

provided Hanebrands is a growing company and has made recent acquisition that are not included in the 2017 disclosure; however, acquisitions that Relevant, not were excluded in the 2016 disclosure are now Investments yet included, and work is currently underway to calculated integrate energy and carbon metrics for these more recent acquisitions into the overall corporate accounting of GHG emissions. Not relevant, We are not aware of any other emissions that Other (upstream) explanation are not included in other categories listed provided Percentage of emissions Sources of metric calculated Scope 3 tonnes Emissions calculation methodology using data Evaluation emissions CO2e obtained Explanation status from

suppliers or value chain partners

Not relevant, Other We are not aware of any other emissions that explanation (downstream) are not included in other categories listed provided

CC14.2

Please indicate the verification/assurance status that applies to your reported Scope 3 emissions

Third party verification or assurance process in place

CC14.2a

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of Verification Status in verification Relevant Proportion of Attach the statement or assurance the current or Page/Section standard reported Scope

cycle in reporting assurance reference 3 emissions

place year verified (%)

Annual First year it Limited https://www.cdp.net/sites/2017/08/30108/Climate Change pages 1 and 2 ISO14064- 30

Type of Verification Status in verification Relevant Proportion of Attach the statement or assurance the current or Page/Section standard reported Scope

cycle in reporting assurance reference 3 emissions

place year verified (%)

process has taken assurance 2017/Shared Documents/Attachments/CC14.2a/Hanesbrands 3 place 2017 Scope 3 GHG Verification Statement_20170626.pdf

CC14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3a

Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Emissions Direction Sources of Scope Reason for change value of Comment 3 emissions (percentage) change

Metrics associated with Hanesbrands' acquisition of Hanes Europe Other: Correcting for a Upstream Innerwear, GFS, and Knights Apparel have been included in the 2017 miscategorization in 2016 transportation & 100.00 Increase carbon emissions calculation for Scope 1,2, & 3. Note methodological (downstream versus upstream distribution changes led to an adjustment in this category from 0 in the previous transportation). disclosing year Downstream Acquisitions 100.00 Decrease Metrics associated with Hanesbrands' acquisition of Hanes Europe

Emissions Direction Sources of Scope Reason for change value of Comment 3 emissions (percentage) change

transportation and Innerwear, GFS, and Knights Apparel have been included in the 2017 distribution carbon emissions calculation for Scope 1,2, & 3. Note methodological changes led to an adjustment in this category to 0 from the previous disclosing year. Metrics associated with Hanesbrands' acquisition of Hanes Europe Capital goods Acquisitions 43.59 Increase Innerwear, GFS, and Knights Apparel have been included in the 2017 carbon emissions calculation for Scope 1,2, & 3. Hanesbrands has a goal to achieve zero landfill in manufacturing and Waste generated in distribution by 2020. The company currently diverts 84% of its waste out Emissions reduction activities 8.00 Increase operations of landfills primarily through recycling, which is an 8% improvement vs. last year.

CC14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliers Yes, other partners in the value chain

CC14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

We receive monthly metrics from a major yarn supplier which represents 19.6% of our total scope 3 emissions. In addition, we are an active ENERGY STAR Partner and often benchmark and share best practices with other companies.

CC14.4b To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Type of Number of % of total spend Impact of engagement engagement suppliers (direct and indirect)

Hanesbrands Global Standards for Supplier audit in most of our yarn and fabric suppliers. Part of Compliance 400 55% the audit includes question concerning energy, environmental, and waste. More than 400 audits are conducted annually.

CC14.4c

Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1

Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job category

President, Chief Global Supply Chain and Information Mike Faircloth President Technology Officer

Further Information

CDP 2017 Climate Change 2017 Information Request