CDP 2017 Climate Change 2017 Information Request · CDP CDP 2017 Climate Change 2017 Information Request Hanesbrands Inc. Module: Introduction Page: Introduction CC0.1 Introduction

CDP CDP 2017 Climate Change 2017 Information Request

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

benefit from these

incentives?

The type of incentives

Incentivized performance indicator

Comment

Corporate executive team

Monetary reward

Emissions reduction target Energy reduction target Supply chain engagement Other: Water reduction target; Renewable energy target; integration of energy/emissions/water management into acquired businesses.

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 incentives are linked to GHG emissions. Energy expenditures within the supply chain are significant contributors to overall conversion cost targets. Energy cost, energy use, and resultant GHG management is included as part of overall sustainability and performance goals, including a corporate energy target, for key staff at both the executive level and the operating levels. Additionally, HanesBrands utilizes a variety of indirect incentives that are linked to the 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.

Energy managers

Recognition (non-monetary)


HanesBrands sets annual energy, carbon, and water reduction goals that are rolled out to all locations. Energy managers at our manufacturing and distribution centers translate these goals into energy-saving actions and projects at their facilities. Performance incentives for these actions include the President’s Energy Efficiency Award and the US EPA ENERGY STAR Challenge for Industry, which the energy managers at each of our facilities pursue as part of their annual goals. Locations are eligible for recognition through the US EPA ENERGY STAR 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

benefit from these

incentives?



Comment

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

Monetary reward


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 performance incentives offered to facility managers include the President’s Energy Efficiency Award, which requires locations to demonstrate achievements. In addition, locations are eligible for recognition through the US EPA ENERGY STAR Challenge for Industry program which requires locations to reduce energy usage intensity by 10% within a 5-year period. Production locations are also eligible to earn the HanesBrands President’s Energy Efficiency Award. 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. 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.

All employees Recognition (non-monetary)

Emissions reduction target Energy reduction target Efficiency target Supply chain engagement

The company’s commitment to environmental responsibility is integrated into the company’s core business strategy. Each year, the company highlights its performance and achievements compared with targets and incorporates this review in its annual global leadership meeting, which is attended by more than

Who is entitled to

benefit from these

incentives?



Comment

Other: Water reduction target; Renewable energy target; integration of energy/emissions/water management into acquired businesses.

1,000 representatives of Hanesbrands' global management team, most of whom are Director level and above.

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

Frequency

of monitoring

To whom are

results reported?

Geographical areas considered

How far into

the future are risks

considered?

Comment

Frequency

of monitoring

To whom are

results reported?

Geographical areas considered

How far into

the future are risks

considered?

Comment

Six-monthly or more frequently

Senior manager/officer

HBI's global supply chain spans across both the western and eastern hemispheres including: North America, Central America, Caribbean and SE Asia. Late in 2014, HBI acquired DBApparel which has been renamed to Hanes Europe Innerwear (HEI). Full integration of HEI energy and environmental metrics was completed during 2016. In 2016, HBI acquired PacBrands (Australia), Champion Europe (Italy) and GTM (U.S.). Full integration of their energy and environmental metrics will be completed during 2017.

3 to 6 years

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 if necessary. In addition, the company manages risk by actively conserving natural resources, reducing energy usage, GHG emissions, water use, and waste to landfills. The company's conservation strategy is accomplished through an enterprise-wide employee engagement process that is focused on empowerment and recognition. Also, the company continues to invest in strategic energy efficiency and renewable energy projects with the goal to save energy and 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 legislation

Corporate Position

Details of engagement

Proposed legislative solution

Energy efficiency

Support

Hanesbrands participated in the CDP Cities North American Workshop held in Charlotte, North Carolina as a presenter and sponsor, and participated as well in roundtable and panel discussions on topics relating to energy efficiency and climate change. In addition, Hanesbrands also engages with policy makers through its active participation as a US EPA ENERGY STAR industrial partner, through participation in the World Energy Engineering Congress (WEEC), and the Association of Energy Engineers (AEE), and through membership in the

Hanesbrands engages with various national trade associations (like the AAFA), the US government, foreign governments and their administrations on a variety of initiatives targeting the expansion of free market concepts that encourage responsible economic development while reducing environmental impact. As an example, the US EPA ENERGY STAR program is a voluntary program that helps businesses and individuals save money and protect the climate through superior energy efficiency which has resulted in helping families and businesses save $362 billion on

Focus of legislation

Corporate Position

Details of engagement

Proposed legislative solution

American Apparel and Footwear Association (AAFA), the Business Roundtable, Cotton Leads, the Council for 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.

utility bills, while reducing greenhouse gas (GHG) emissions by 2.5 billion metric tons since 1992.

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

Trade association

Is your position

on climate change

consistent with

theirs?

Please explain the trade association's position

How have you, or are you attempting to, influence the position?

American Apparel and Footwear Association

Mixed

The AAFA supports the following statement: "In the past decade the apparel and footwear industry has moved to the forefront of sustainability. The industry has found that being a good corporate citizen and producing sustainably is a great

HanesBrands agrees that being a good corporate citizen is a great business decision. HanesBrands encourages the adoption of environmentally responsible manufacturing and business practices of member companies by sharing the

Trade association

Is your position

on climate change

consistent with

theirs?



business decision. Various sustainability initiatives have brought together the industry and led to a collective push towards ever-more sustainable products and manufacturing processes. With more and more resources being put towards sustainability initiatives, it is likely that the industry will continue to push the envelope in the coming years."

company's goal-oriented, metrics driven approach to energy management, chemical management and employee management. HanesBrands' President, Chief Global Supply Chain/IT Officer holds a leadership position serving on the Executive Committee of the AAFA Board of Directors.

The Sustainability Consortium

Mixed

From the TSC website: “The Sustainability Consortium (TSC) is a global organization transforming the consumer goods industry to deliver more sustainable consumer products. We are dedicated to improving the sustainability of consumer products. Our Members and partners include manufacturers, retailers, suppliers, service providers, NGOs, civil society organizations, governmental agencies and academics. Each member brings valuable perspectives and expertise. TSC convenes our diverse stakeholders to work collaboratively to build science-based decision tools and solutions that address sustainability issues that are materially important throughout a product’s supply chain and lifecycle. TSC also offers a portfolio of services to help drive effective implementation.”

HanesBrands actively engages with The Sustainability Consortium through frequent participation in industry working group meetings and attendance at the group’s annual summit. HanesBrands reviews and comments on TSC Product Category Toolkits and further engages with other member organizations on environmental projects such as the multi-industry Cold Water Wash initiative, which is focused on developing a consumer messaging toolkit for use by all participants to talk about energy and the other benefits of washing garments in cold water.

Corporate Eco Forum

Mixed

Corporate Eco Forum (CEF) is an invitation-only membership organization for large companies that demonstrate a serious commitment to sustainability as a business strategy issue. CEF’s mission is to help accelerate sustainable business innovation by creating the best neutral space for senior business leaders to strategize and exchange best-practice insights.

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 holds a position on their Leadership Council, "a group of pioneering executives whose leadership has advanced sustainability strategy and execution within the Global 500," which has responsibility for shaping the agenda of the annual leadership meeting. Hanesbrands encourages the adoption of environmentally responsible manufacturing and business 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.

Trade association

Is your position

on climate change

consistent with

theirs?



Business Roundtable

Mixed

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 economy and business. In the Business Roundtable's Energy and Environment Committee Policies and Priorities, they state the following: "Access to reliable, affordable energy undergirds US national and economic security, and a clean, healthy environment is essential for economic prosperity now and for future generations. Business Roundtable supports policies that capitalize on America's strengths in technology and energy 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.”

Hanesbrands encourages the adoption of environmentally responsible manufacturing and business practices of member companies by sharing the company's approach to energy management, chemical management and employee engagement. It is the intent of the company to influence its suppliers and other companies to leverage best management practices thereby further reducing energy usage, GHG emissions, water usage, and costs.

CC2.3d

Do you publicly disclose a list of all the research organizations that you fund? No

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

ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions covered by

target (metric tonnes CO2e)

Target year

Is this a science-

based target?

Comment

CC3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in scope

% reduction

from base year

Metric

Base year

Normalized base year emissions covered by

target

Target year

Is this a science-based target?

Comment

Int1 Scope 1+2 (location-based)

100% 40%

Metric tonnes CO2e per unit of production

2007 0.001193 2020

No, as there is currently no established science-based targets methodology in this sector

Scope 1 & 2 CO2e intensity emission goal of 40% reduction by 2020 versus baseline year 2007. Our normalized 2007 gross base year scope 1 and 2 GHG emissions were 396,967 metric tonnes, yielding an intensity of 0.001193. Our 2020 GHG emissions intensity reduction goal is calculated as 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

ID

Direction of change

anticipated in absolute Scope 1+2 emissions

at target completion?

% change anticipated in

absolute Scope 1+2 emissions

Direction of change

anticipated in absolute Scope 3 emissions at

target completion?

% change anticipated in

absolute Scope 3 emissions

Comment

Int1 Decrease 46.00 No change 0 Achieving a 40% reduction in carbon emissions intensity by 2020 versus a 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

ID

Energy types covered by

target

Base year

Base year energy for

energy type covered (MWh)

% renewable

energy in base year

Target year

% renewable

energy in target year

Comment

RE1 All energy consumed

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

CC3.1e

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

ID

% complete (time)

% complete (emissions or renewable energy)

Comment

Int1 76.92% 40.75% Our carbon emission reduction strategy is to improve energy usage efficiency while at the same time growing our use of renewable energy. During the 2016 reporting year, our carbon intensity fell to 40.75% of our 2020 40% reduction target.

RE1 76.92% 63.25% Our renewable energy improved to 63.25% of our 40% renewable target. Going forward, the company has 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

Level of

aggregation

Description of product/Group of

products

Are you

reporting low carbon product/s or avoided emissions?

Taxonomy, project or

methodology used to classify

product/s as low carbon

or to calculate avoided

emissions

%

revenue from low carbon

product/s in the

reporting year

% R&D in

low carbon

product/s in the

reporting year

Comment

Company-wide

Environmental responsibility means changing not only the way we make products, but also the nature of the products we make. Hanesbrands’ EcoSmart® line features hoodies, socks, sweats and T-shirts made in part from recycled plastic bottles or recycled cotton. Across all of Hanesbrands, our EcoSmart® products keep the equivalent of more than 62 million plastic bottles from landfills each year. Also, many of our additional products are made with recycled yarns, innovative processes, and renewable energy. For example, in 2016 Hanesbrands manufactured products from raw materials that included over 1 million pounds of recycled cotton. The project involves collecting clipping waste and yarn from cut and sew operations and sorting the waste material for fiber content, color and quality. This practice achieves significant reductions in emissions to the environment through reduced use of process water and energy. More importantly, the use of recycled fabric reduces environmental impacts for growing cotton. This results in significant reductions in water used for irrigation, less fertilizer, which is energy intensive to produce, reductions in the use

Avoided emissions

Other: See comment

Our overall environmental program encourages innovation in the development of low energy intensity and reduced environmental impact products. The company's energy management program has reduced global carbon emissions by approximately 53,000 metric tons (MT) by improving energy usage efficiency and consumption of renewable energy sources. In addition, the company has increased use of raw materials that are manufactured with reduced GHG emissions. For example, in 2016 the company consumed a significant amount of yarn that was manufactured using a more energy efficient process that consumes over 50% less energy per pound, reducing our scope 3 emissions from yarn suppliers. Further, by recycling plastic bottles to make polyester yarn, the company recovers polyester material from the equivalent of over 62 million 20 ounce plastic bottles, which equates to 1,520 tons of landfill avoidance, and 1,720 MT of CO2e emissions reduced.

Level of

aggregation

Description of product/Group of

products

Are you

reporting low carbon product/s or avoided emissions?

Taxonomy, project or

methodology used to classify

product/s as low carbon

or to calculate avoided

emissions

%

revenue from low carbon

product/s in the

reporting year

% R&D in

low carbon

product/s in the

reporting year

Comment

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

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes 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

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

Low carbon energy installation

Installation of a 5.5 MW biomass fired combined heat and power plant

32750

Scope 2 (market-based)

Voluntary

0 19000000 11-15 years

21-30 years

The savings resulting from the company's investment in the combined heat and power plant in El Salvador have been challenged by low oil prices. Even so, in 2016 El Salvador 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

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Scope

Voluntary/ Mandatory

Annual monetary savings

(unit currency

- as specified in CC0.4)

Investment required

(unit currency -

as specified in CC0.4)

Payback period

Estimated lifetime of

the initiative

Comment

change engagement - energy kaizens and treasure hunts.

Scope 2 (location-based)

focusing on low/no cost

CC3.3c

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

Method

Comment

Compliance with regulatory requirements/standards

New equipment is installed to meet applicable local environmental standards. It is the policy and commitment of the company to meet or exceed performance designated by applicable regulations.

Dedicated budget for energy efficiency

Money is earmarked in the capital budget for energy efficiency projects and for use of alternate fuels.

Employee engagement

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 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.

Internal incentives/recognition programs

The company offers internal recognition through a variety of avenues including publication in the corporate newsletter and the employee intranet and also through the President's Energy Efficiency Award, a global award that recognizes outstanding achievement in energy efficiency in our organization.

Method

Comment

Financial optimization calculations

Investments in emissions reduction activities are prioritized based on payback period and the extent of emissions reductions. 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)

Publication

Status

Page/Section reference

Attach the document

Comment

In voluntary communications

Complete

1

https://www.cdp.net/sites/2017/08/30108/Climate Change 2017/Shared Documents/Attachments/CC4.1/HBI-EnvironmentalPerformance-2017-Chart.pdf

HBI Environmental performance data and more can be found at http://hanesforgood.com/


Complete

1

https://www.cdp.net/sites/2017/08/30108/Climate Change 2017/Shared Documents/Attachments/CC4.1/Hanesbrands Energy Star Profile.JPG

U.S. EPA Energy Star application. Hanesbrands is active in the US EPA ENERGY STAR Industrial partner network. The US EPA ENERGY STAR website hosts a variety of communications and company profiles relating to individual sites and overall company performance. Attached is an example of Hanesbrands company profile

Publication

Status


Attach the document

Comment

relating to the Partner of the Year Award recognition. https://www.energystar.gov/about/content/hanesbrands_inc


Complete

1

https://www.cdp.net/sites/2017/08/30108/Climate Change 2017/Shared Documents/Attachments/CC4.1/HBI EPA Energy Star 2017 POY Award Press Release 04-25-17 FINAL.docx

Company news release announcing U.S. EPA Energy Star Award issued on Business Wire. http://www.businesswire.com/news/home/20170426005878/en/HanesBrands-Earns-Eighth-Consecutive-U.S.-EPA-Energy


Underway - previous year attached

1

https://www.cdp.net/sites/2017/08/30108/Climate Change 2017/Shared Documents/Attachments/CC4.1/HBI CDP 2016 Disclosure Press Release 11-3-16 FINAL.doc

Company news release announcing voluntary submission to CDP to be issued on Business Wire.


Complete

1

https://www.cdp.net/sites/2017/08/30108/Climate Change 2017/Shared Documents/Attachments/CC4.1/HBI Hanes 2016 Enviro Data Release FINAL 041717.docx

Company news release announcing 2016 environmental performance data on Business Wire. http://www.businesswire.com/news/home/20170417005594/en/HanesBrands-Releases-2016-Environmental-Performance-Data

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

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Renewable energy regulation

Some states within the United States of America (North Carolina) as well as some countries in Europe have enacted Renewable Energy and Energy Efficiency Portfolio Standards (REPS) that require investor-owned utilities in North Carolina to meet up to 12.5% of their energy needs through renewable energy resources or energy efficiency measures. HanesBrands operates several

Increased operational cost

3 to 6 years

Direct Likely Low

The financial impact that is directly linked to renewable energy regulations that have been promulgated in the United States is currently expected to be very small mainly due to lower energy use compared to more complex operations that are not currently impacted; HanesBrands electricity use in the U.S. represents approximately 12.5% of the company's

Hanesbrands has a robust energy management program in place and has worked to reduce and offset the impacts of rising energy rates through energy efficiency. The impact on the overall business is very small due in large part to the amount of energy consumed in warehouse operations as compared to overall company energy use.

None - a holistic energy management structure is in place.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

large distribution and warehouse operations in North Carolina. Electricity rates per kilowatt hour have increased somewhat in recent years in part due to the renewable portfolio standard set by the State.

overall energy use portfolio. However, renewable portfolio standards could have an impact on the company's electricity costs going forward. For example, renewable energy regulations in the European Union has a significant impact on electricity rates across the EU.

General environmental regulations, including planning

Changes in regulation of carbon and other GHG emission as hazardous air pollutants could have a financial impact on the company, affecting both capital and operating costs. In addition, regulatory actions taken to address urgent


3 to 6 years

Direct Unlikely Low

Capital cost impacts related to emission control equipment or mandatory conservation measures are difficult to predict and will depend on investments that may be required to comply with regulatory limits; however, we expect that the

To manage the risk of changing environmental regulations, the company has implemented a Global Environmental Management System (GEMS) that requires all locations to manage operations in a manner that ensures the

HanesBrands energy and environmental management systems are in large part driven by an employee engagement process that has reduced carbon emissions by 16% (~52,000 MT per year) since 2007. A large part of this reduction has

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

environmental conditions such as urban smog, availability of water, floods, and violent storm risks, present additional risks --including business interruption and/or mandates to reduce manufacturing capacity that could increase both capital and operating costs.

magnitude of investment would be relatively low due to prior investment in conservation measures and renewable energy assets such as the biomass fired combined heat and power plant in El Salvador. In addition, our ongoing strategy to increase our renewable energy portfolio reduces carbon emissions which further mitigates the risk of capital investment.

location meets or exceeds applicable regulations. The goals of GEMS are the same as our global energy management program which is to reduce consumption and to reduce emissions to the environment. These two management systems are focused on waste minimization, employee engagement, and compliance.

come from low- or no-cost energy conservation projects. In addition, the company continues to make strategic investment in high-efficiency utility support systems, such as air conditioning, air compressors, and heat recovery. Significant, multi-million dollar investments have also been made in biomass fired boiler systems and combined 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

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

Uncertainty of physical risks

Significant fluctuations in climate patterns could lead to change in weather, droughts, floods, etc., creating volatility in the price of various input costs, such as cotton and petroleum-related materials, utilities, freight and wages, leading to material adverse effects on our business, operations, financial conditions and cash flows. In addition, these climate changes can adversely impact physical plant operations and schedules.


Unknown Direct Unknown Low

Hanesbrands' physical risks are quantified, known and manageable.

HanesBrands physical risks are regularly assessed. The company’s business continuity plan, which is reviewed by the Audit Committee, identifies risks from extreme weather impacting product flows and raw materials. The risks are known, manageable, and quantified on a cost per unit basis. Elements of the plan include managing operations through HanesBrands' global supply chain, implementing environmental measures such as energy and water conservation, and loss prevention measures that prepare sites for potential catastrophic impacts. Potential risks may include: 1)Temperature events: Higher temperatures

Uncertainty of physical risks

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

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

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

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

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Changing consumer behavior

As an apparel company, changing climate conditions may affect our consumers' behavior with respect to products that they buy. Periods of unseasonably warm weather in the fall or winter, or periods of unseasonably cool and wet weather in the Spring or

Reduced demand for goods/services

Unknown Direct Unlikely Low

It is difficult to accurately estimate the impact. However, we expect it to be minimal.

HanesBrands operates in mature market segments. The company's products are in categories with minimal risk of becoming obsolete. Our management process is to monitor point-of-sale data to determine customer preference.

Production and capacity planning is a part of our cost of goods sold.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Summer, can negatively impact consumer traffic and retail spending.

Other drivers

Increased concern about the environment, both within the communities where we do business and internationally, has created inherent risks for companies that do not responsibly manage impact on the environment. Corporate reputations can be detrimentally affected by ineffective environmental management. To ensure that HanesBrands effectively manages these risks, the company has integrated environmental management with an award-winning Corporate Social Responsibility program that has

Reduced demand for goods/services

Unknown Direct Unlikely Low

The company’s good reputation is difficult to place a value on. However, we do not anticipate any material adverse financial impacts at this time.

Our strategy is to meet or to exceed regulatory requirements while at the same time minimizing our emissions of carbon by improving energy usage efficiency and increasing the use of renewable energy. By demonstrating environmental leadership and by being engaged in community improvement initiatives, the company seeks to protect its reputation and drive shareholder value.

We do not see this management as a cost. To the contrary, we believe the way we manage environmental and climate-related risk generates cost savings.

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

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

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management method

Cost of

management

International agreements

International agreements such as COP21 Paris Agreement purport to align international regulatory initiatives that may increase the value of carbon emission credits which would increase the value of renewable energy assets that are currently certified (see UNFCCC Project #6929; https://cdm.unfccc.int/Projects/DB/DNV-CUK1344079596.55/view ).

Reduced operational costs

1 to 3 years

Direct Very likely Low

Ratification of the Paris Climate Agreement, which calls for a new mechanism similar to the Clean Development Mechanism under the Kyoto Protocol, will enable emission reductions in one country to be counted toward another country’s nationally determined reduction contribution (NDC).

While the value of our carbon emissions credits are likely to increase, the company’s internal goal to reduce carbon 40% by 2020 vs our 2007 baseline requires retaining the credits to avoid increasing our internal carbon emissions.

Selling credits would come at the expense of counting the investment as progress towards the company’s renewable energy portfolio goal.

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management method

Cost of

management

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

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of

impact

Estimated financial

implications

Management method

Cost of

management

(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 driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management

method

Cost of

management

Change in mean (average) precipitation

Change in product mix to meet market demands

Other: Production of lighter-weight garments in hot climates and heavier-weight garments in cold climate s can drive sales and margin opportunities.

1 to 3 years

Direct More likely than not

Low-medium

Impact on sales related to manufacturing to meet seasonal market demands

We forecast product demands based on a variety of inputs and consumer insights

There is a risk of manufacturing products that are not aligned with seasonal demand, potentially resulting in reduced sales.

CC6.1c

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

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

Reputation

The recognition opportunities mentioned previously in CC5.1c help to improve employee morale, reduce turnover, attract talent, and bolster the company’s reputation with government officials and our customers.

Wider social benefits

1 to 3 years

Direct Virtually certain

Medium

The company’s good reputation is difficult to place a value on, but the impact of low employee morale, increased turn over, and noncompliance could potentially be costly.

By demonstrating environmental leadership, engaging in community improvement initiatives, and growing our Hanes for Good program (see: www.hanesforgood.com/ ), the company protects and enhances its reputation.

As of June 2017, nearly 100 community development projects have been completed with an investment of more than $2.5 million, 500,000-plus volunteer hours and over 11,000 volunteers.

Fluctuating socio-economic conditions

Improve corporate culture and reputation.

Other: Lower insurance costs

1 to 3 years

Direct Very likely Low-medium

More competitive insurance premiums.

Our corporate culture, which values sustainability and corporate social responsibility, translates into more insurers eager to do business with us, and arguably at lower premiums than most of our peers, because companies like us tend to have better loss experience. To put it more succinctly, by being sustainable and good

None; integrated into holistic corporate culture. As noted previously, we believe our overall CSR efforts reduce costs.

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

Estimated financial

implications

Management method

Cost of

management

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)

Scope

Base year

Base year emissions (metric tonnes CO2e)

Scope 1 Sun 31 Dec 2006 - Sat 29 Dec 2007

140963

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

182215

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

Fuel/Material/Energy

Emission Factor

Unit

Reference

Fuel/Material/Energy

Emission Factor

Unit

Reference

Distillate fuel oil No 2 0.0742 Other: Metric Tonne per Million British Thermal Units

US EPA Emission Factors for Greenhouse Gas Inventories, last modified 19 November 2015 (https://www.epa.gov/sites/production/files/2015-12/documents/emission-factors_nov_2015.pdf)

Natural gas 0.0531 Other: Metric Tonne per Million British Thermal Units


Propane 0.0631 Other: Metric Tonne per Million British Thermal Units


Residual fuel oil 0.0754 Other: Metric Tonne per Million British Thermal Units


Electricity 0.5126 metric tonnes CO2e per MWh

various - Egrid 2014

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

Source

Relevance of

Scope 1 emissions from this source

Relevance of

location-based Scope 2

emissions from this source

Relevance of market-based

Scope 2 emissions from this source (if

applicable)

Explain why the source is excluded

Fugitive emissions from HFC’s, CFC’s and other refrigerants associated with unintentional releases such as equipment leaks

Emissions are not relevant

No emissions from this source


Accounting for refrigerants is governed under Hanesbrands' Global Environmental Management System (GEMS) and associated operational policies and procedures. An independent verification was performed of Hanesbrands' 2016 greenhouse gas emissions inventory. During the verification, the team examined documentation and data relating to the company’s refrigerant use to confirm the low proportions this source category contributed to the overall GHG emission profile and deemed not relevant.

HanesBrands Retail Stores - USA




Hanesbrands' Direct to Consumer operations include domestic company-owned retail stores that sell its branded products directly to

Source

Relevance of


Relevance of





applicable)


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.

Fugitive emissions from company-operated on-site industrial waste water treatment works




Scope 1 fugitive GHG emissions reported as CO2e from company owned and operated on-site Waste Water Treatment facilities have been evaluated and quantified by our engineering team and a third-party wastewater consult and determined to be 462 metric tonnes CO2e for 2015. The findings and calculations have subsequently been 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.

Regional Sales and Administrative Offices




Our regional sales and administrative offices are small local offices primarily used for sales or customer service and are typically,5,000 square feet. The energy use and GHG emissions are materially insignificant. Oftentimes, utilities are included in the rent and HanesBrands does not have visibility of energy use and charges.

Temporary and Seasonal Small Warehouses and Storage Locations




Hanesbrands has a few commercial properties that primarily consist of overflow warehouses used for the storage of surplus equipment and/or the storage of excess finished product due to seasonal swings in supply and demand. These spaces are usually leased/rented on a

Source

Relevance of


Relevance of





applicable)


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.

Recent Acquisition of Pacific Brands of Australia

Emissions excluded due to a recent acquisition



Hanes recently acquired Pacific Brands of Australia in July 2016. Efforts are underway to incorporate the energy and GHG metrics reporting into the overall company's GHG emissions inventory. In the coming year Hanesbrands will develop appropriate tracking mechanisms and incorporate energy use and carbon emissions from 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.

Recent Acquisition GTM Sportswear




Hanes recently acquired GTM Sportswear in September 2016. Efforts are underway to incorporate the energy and GHG metrics reporting into the overall company's GHG emissions inventory. In the coming year Hanesbrands will develop appropriate tracking mechanisms and incorporate energy use and carbon emissions from these sites into overall company metrics. The recent acquisition added a mixed portfolio of real estate including office, distribution and manufacturing locations.

Recent Acquisition Champion Europe




Hanes recently acquired Champion Europe in April 2016. Efforts are underway to incorporate the energy and GHG metrics reporting into the overall company's GHG emissions inventory. In the coming year Hanesbrands will develop appropriate tracking mechanisms and incorporate energy use and carbon emissions from these sites into overall company metrics. The recent acquisition added a mixed portfolio of real estate including retail locations and office, and

Source

Relevance of


Relevance of





applicable)


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

Scope

Uncertainty

range

Main sources of

uncertainty

Please expand on the uncertainty in your data

Scope 1 Less than or equal to 2%

Data Gaps Metering/ Measurement Constraints Data Management

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 around the globe. Methods and sources of data include supervisory control and data acquisition systems (SCADA), manual reading and recording of utility meters such as natural gas, steam and propane, fuel inventories, manual data entry, and review of utility invoices. The potential exists for human error of misreading a meter or data entry error during the input process. Utility data is reviewed for accuracy and 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.

Scope 2 (location-based)

Less than or equal to 2%

No Sources of Uncertainty

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, supervisory control and data acquisition systems (SCADA), manual reading and recording of utility meters, 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

Scope

Uncertainty

range

Main sources of

uncertainty

Please expand on the uncertainty in your data

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.

Scope 2 (market-based)

Less than or equal to 2%

No Sources of Uncertainty

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, supervisory control and data acquisition systems (SCADA), manual reading and recording of utility meters, 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 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

Verification

or assurance cycle in place

Status in

the current reporting

year

Type of verification

or assurance

Attach the statement

Page/section

reference

Relevant standard

Proportion of reported

Scope 1 emissions verified (%)

Annual process

Complete Limited assurance

https://www.cdp.net/sites/2017/08/30108/Climate Change 2017/Shared Documents/Attachments/CC8.6a/Hanesbrands 2017 GHG Verification Statement_20170626.pdf

Pages 1 and 2

ISO14064-3

71

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

Location-based or market-based figure?

Verification

or assurance

cycle in place

Status in

the current

reporting year

Type of verification

or assurance



Relevant standard

Proportion

of reported Scope 2

emissions verified

(%)

Location-based

Annual process



pages 1 and 2

ISO14064-3

71

Market-based

Annual process



pages 1 and 2

ISO14064-3

71

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 points verified

Comment

Year on year change in emissions (Scope 1 and 2)

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 included the activity data, calculations, and formulas used to calculate GHG emissions for Hanesbrands operational control boundary with the objective to review 70% or more of activity data and resultant Scope 1 and Scope 2 GHG emissions. Similarly, Trinity 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


Latitude

Longitude

CC9.2c

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

GHG type


CC9.2d

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

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

Country/Region

Scope 2, location-based (metric

tonnes CO2e)

Scope 2, market-based (metric tonnes CO2e)

Purchased and consumed

electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or

cooling accounted in market-based approach (MWh)

Argentina 229 0 747 0

Country/Region

Scope 2, location-based (metric

tonnes CO2e)


Purchased and consumed

electricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steam or

cooling accounted in market-based approach (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 America

50501 2207 132023 0

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

Business division

Scope 2, location-based (metric tonnes CO2e)


CC10.2b

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

Facility



CC10.2c

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

Activity



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

Basis for applying a low carbon emission factor

MWh consumed associated with

low carbon electricity, heat, steam or cooling

Emissions factor (in units of metric tonnes

CO2e per MWh)

Comment

Off-grid energy consumption from an on-site installation or through a direct line to an off-site generator owned by another company

66532 0

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 and/or supply agreements for renewable electricity. This strategy impacts the emissions calculations for the two facilities mentioned above in El Salvador (beginning August 2009). In each case, the basis for the emissions factor applied was written 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%

Basis for applying a low carbon emission factor

MWh consumed associated with

low carbon electricity, heat, steam or cooling

Emissions factor (in units of metric tonnes

CO2e per MWh)

Comment

geothermal energy. Therefore, an emissions factor of 0.0 is applied to this electricity.

Contract with suppliers or utilities, with a supplier-specific emission rate, not backed by electricity attribute certificates

3189 0

Electricity is provided by Power Purchase Agreement (PPA) and is 100% renewable. (beginning January 2013). The basis for the emissions factor applied was written communication from the electricity supplier 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 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

Total

electricity consumed

(MWh)

Consumed

electricity that is purchased

(MWh)

Total

electricity produced

(MWh)

Total

renewable electricity produced

(MWh)

Consumed renewable

electricity that is produced by

company (MWh)

Comment

418469 416098 2400 2400 2400

2400 MWH of electricity was produced in 2016 in El Salvador from biomass fired combined heat and power plant. Biomass fuel used to make 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

Reason

Emissions value

(percentage)

Direction of change

Please explain and include calculation

Emissions reduction activities

4.8 Decrease

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 and significantly reduced the amount of petroleum based fossil fuel previously required for boiler 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

Acquisitions 1 Increase Acquisition of Hanes Europe innerwear resulted in a 1% increase in GHG when comparing year over year due to the more energy intensive nature of the portfolio of products manufactured and facility mix.

Mergers 0 No change N/A

Change in output 2.5 Decrease HanesBrands had a change in production output that had a favorable reduction in global scope 1 and 2 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 methodology

0 No change N/A

Change in boundary

0 No change N/A

Reason

Emissions value

(percentage)

Direction of change

Please explain and include calculation

Change in physical operating conditions

0 No change N/A

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

Intensity figure =

Metric numerator (Gross global combined

Scope 1 and 2 emissions)

Metric denominator:

Unit total revenue

Scope 2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

0.0459 metric tonnes CO2e 6028199 Location-based

10.9 Decrease For reporting year 2015, Hanesbrands had gross global scope 1 and 2 GHG emissions of 295,201 MTCO2e and net sales of $5,731,549

Intensity figure =



Metric denominator:

Unit total revenue

Scope 2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

($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

Intensity figure =



Metric denominator

Metric

denominator: Unit total

Scope 2 figure used

% change

from previous

year

Direction of change

from previous

year

Reason for change

1.002 metric tonnes CO2e

Other: 000 pound of finished product

276146 Location-based

4.3 Increase

HanesBrands had a decrease in overall global gross scope 1 and 2 ghg emissions and also had a decrease in production. The decline in production was at a higher rate than the drop in global ghg 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

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

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

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of

credits (metric tonnes CO2e)

Number of credits (metric tonnes CO2e):

Risk adjusted volume

Credits canceled

Purpose, e.g. compliance

Credit origination

Biomass energy

Hanesbrands El Salvador Biomass Fired CHP Not yet verified 10588 10588 Yes Voluntary Offsetting

Credit origination

Biomass energy

CDM Project No. 6929 https://cdm.unfccc.int/Projects/DB/DNV-CUK1344079596.55/view

CDM (Clean Development Mechanism)

35738 26803 Not relevant

Not applicable

Further Information

Page: CC14. Scope 3 Emissions

CC14.1

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

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Emissions calculation methodology

Percentage of

emissions calculated using data obtained

from suppliers or value chain

partners

Explanation

Purchased goods and services

Relevant, calculated

620993

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. Estimates based on internally measured carbon emission intensity factors for similar products and aligned with the WRI/WBC SD GHG Protocol 3. Emission factors (MT CO2e/ $1million spend) by category as calculated using emission factors 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).

19.30%

19.3% of the total reported emissions in this category came from supplier data. The remaining emissions were estimated using a MT of CO2e/$1 million spend factor that was developed using Quantis’ Scope 3 evaluator tool.

Capital goods Not relevant, calculated

61037

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 Protocol. The tool estimates emissions using 2009 world multiregional estimates of average environmental impacts by region-sector combined with global warming potential impact assessment (Timmer 2012, IPCC 2007).

0.00% 0.00% of the data came from suppliers, the emissions were estimated using a MT CO2e/$1 million capital spend.

Fuel-and-energy- Not relevant, 59909 Emissions for fuel and energy were calculated 0.00% 0.00% of the data came from suppliers, the

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

related activities (not included in Scope 1 or 2)

calculated using conversion multipliers to estimate category 3 emissions based on scope 1 and 2 emissions 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 were estimated using factors developed by Quantis.

Upstream transportation and distribution

Not relevant, explanation provided

156100

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. The tool estimates emissions using 2009 world multiregional estimates 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.

0.00% All upstream transportation and distribution is included in the purchased goods and services listed previously.

Waste generated in operations

Not relevant, calculated

3659

Emissions from waste generated were calculated using average emission factors for waste diversion that are published in Category 5: Waste Generated in Operations Technical Guidance for Calculating Scope 3 Emissions published in The Green House Gas Protocol. Landfill waste volumes were multiplied by 300 kg CO2e/MT and recycled waste volumes were multiplied by 10 kg CO2e/MT

0.00%

Hanesbrands has a goal to achieve zero landfill in manufacturing and distribution by 2020. The company currently diverts 84% of its waste out of landfills primarily through recycling, which is an 8% improvement vs. last year.

Business travel Not relevant, calculated

11961

Emissions by business travel type (air, automobile, and subway) were calculated using emission factors (MT CO2e/ $1million spend) that came from the Scope 3 evaluator tool by

0.00%

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

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.

Employee commuting


31110

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 buss. The factor was taken from the GHG 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".

0.00%

Upstream leased assets


14287

Emissions for leased assets (office, retail stores, warehouses, and apartments) were calculated using emission factors (MT CO2e/ square foot of lease space) that came from the Scope 3 evaluator tool by Quantis in partnership with The

0.00%

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

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.

Downstream transportation and distribution

Relevant, calculated

0

Emissions from downstream transportation and distribution related to delivery of goods and services is included in the Purchase goods and services source list previously. To avoid duplication, this category has been intentionally omitted.

0.00%

Processing of sold products


0

0.00% Processing of sold products is not applicable to Hanesbrands because none of our products require further processing.

Use of sold products

Relevant, not yet calculated

0

0.00%

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 course of a year in household doing laundry could potentially avert 5 million metric tons of 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 treatment of sold

Relevant, not yet

0.00% As an apparel company, Hanesbrands recognizes impacts from disposal of our

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

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.

Downstream leased assets


All leased assets are included in the upstream leased assets calculations

Franchises Not relevant, explanation provided

Franchises are not applicable to Hanesbrands.

Investments Relevant, not yet calculated

Hanebrands is a growing company and has made recent acquisition that are not included in the 2017 disclosure; however, acquisitions that were excluded in the 2016 disclosure are now included, and work is currently underway to integrate energy and carbon metrics for these more recent acquisitions into the overall corporate accounting of GHG emissions.

Other (upstream) Not relevant, explanation provided

We are not aware of any other emissions that are not included in other categories listed

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e


Percentage of



partners

Explanation

Other (downstream)


We are not aware of any other emissions that are not included in other categories listed

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

Verification

or assurance cycle in

place

Status in


year

Type of

verification or

assurance


Page/Section

reference

Relevant standard

Proportion of

reported Scope 3 emissions verified (%)

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

Verification

or assurance cycle in

place

Status in


year

Type of

verification or

assurance


Page/Section

reference

Relevant standard

Proportion of

reported Scope 3 emissions verified (%)

process has taken place

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

3

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

Sources of Scope

3 emissions

Reason for change

Emissions

value (percentage)

Direction

of change

Comment

Upstream transportation & distribution

Other: Correcting for a miscategorization in 2016 (downstream versus upstream transportation).

100.00 Increase

Metrics associated with Hanesbrands' acquisition of Hanes Europe Innerwear, GFS, and Knights Apparel have been included in the 2017 carbon emissions calculation for Scope 1,2, & 3. Note methodological changes led to an adjustment in this category from 0 in the previous disclosing year

Downstream Acquisitions 100.00 Decrease Metrics associated with Hanesbrands' acquisition of Hanes Europe

Sources of Scope

3 emissions

Reason for change

Emissions

value (percentage)

Direction

of change

Comment

transportation and distribution

Innerwear, GFS, and Knights Apparel have been included in the 2017 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.

Capital goods Acquisitions 43.59 Increase Metrics associated with Hanesbrands' acquisition of Hanes Europe Innerwear, GFS, and Knights Apparel have been included in the 2017 carbon emissions calculation for Scope 1,2, & 3.

Waste generated in operations

Emissions reduction activities 8.00 Increase

Hanesbrands has a goal to achieve zero landfill in manufacturing and distribution by 2020. The company currently diverts 84% of its waste out 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

engagement

Number of suppliers

% of total spend (direct and indirect)

Impact of engagement

Compliance 400 55% Hanesbrands Global Standards for Supplier audit in most of our yarn and fabric suppliers. Part of 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

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

President

Further Information

CDP 2017 Climate Change 2017 Information Request