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