Gap Inc. Leads the Charge in Sustainability Through Supplier Engagement in MCAP

  • Brands & Retailers
  • Collective Action
  • Decarbonization
  • MCAP

By embracing initiatives like MCAP, Gap Inc. helps its suppliers set science-aligned targets to significantly reduce GHG emissions and drive meaningful environmental change across the industry.

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August 27, 2024

Gap, Inc., a global fashion retailer and Cascale member since 2013, consistently demonstrates its commitment to sustainability.

Gap Inc. has pledged to reduce its environmental footprint through innovative initiatives and collaborative efforts, such as Cascale’s Manufacturer Climate Action Program (MCAP), which accelerates the adoption of science-aligned targets (SATs) and fosters a culture of collaborative sustainability within the consumer goods industry.

Gap Inc.’s 2023 ESG Report highlights significant progress toward its sustainability goals, demonstrating the company’s commitment to reducing its environmental impact. The report outlines two major emissions-related targets:

  • Scope 1 and 2 GHG Emissions: Gap Inc. aims to reduce these emissions by 90 percent from a 2017 baseline by 2030. Impressively, the company has already achieved a 77 percent reduction between 2017 and 2022, showcasing substantial progress toward this ambitious goal.
  • Scope 3 GHG Emissions: Gap Inc. is working to reduce emissions from purchased goods and services by 30 percent from a 2017 baseline by 2030. The company is on track, having achieved a 16 percent reduction from 2017 to 2022.

Additionally, Gap Inc. set a goal for 80 percent of its sourcing to be allocated to green-rated factories by 2025. This goal was surpassed in 2023, with 87 percent of business spending allocated to green-rated factories.

These milestones reflect Gap Inc.’s dedication to sustainability and its proactive approach to environmental stewardship across its operations and supply chain.

Supplier Engagement and Collaboration

Central to Gap Inc.’s sustainability strategy is active engagement with suppliers. Recognizing that meaningful change requires collaborative efforts, Gap Inc. coordinated with three key suppliers — Hansae Co Ltd, Makalot Industrial Co Ltd, and Yakjin Trading Corp — to engage in MCAP. After participating in MCAP, the three suppliers completed setting their SATs, and their targets were validated by either TÜV Rheinland, BV, or SGS. The validated targets have been reviewed and approved by Cascale, and their MCAP status will be publicly disclosed on the MCAP Disclosure Dashboard.

 

 

MCAP is a pivotal initiative within Cascale’s Decarbonization Program, uniting manufacturers worldwide to combat climate change in the consumer goods industry. MCAP drives sustainable change through science-aligned targets (SATs), aiming for a 45 percent reduction in greenhouse gas emissions by 2030. This effort is aligned with the goal of limiting global temperature increases to 1.5°C above pre-industrial levels.

Impact of MCAP and Higg Index Tools

Gap Inc.’s engagement with its suppliers, MCAP, and the Higg Index tools underscores its commitment to sustainability and climate action. By working closely with suppliers like Hansae, Markalot, and Yakjin, Gap Inc. has achieved significant environmental improvements. These efforts highlight the spirit of collaboration and dedication within the consumer goods industry, showcasing the impactful results of strategic supplier engagement to combat climate change.

Supplier Sustainability Program

Gap Inc.’s Supplier Sustainability program focuses on social and environmental issues. It uses remediation practices and a compliance rating system to incentivize suppliers to implement proper labor, health, safety, and environmental standards. This approach aims to protect and support workers, improve air and water quality, increase energy efficiency, and minimize violations across the supply chain.

Initially, Gap Inc.’s Supplier Sustainability team focused on Tier 1 of the supply chain but is now expanding efforts to Tier 2 and 3 suppliers. They use industry tools like the Social & Labor Convergence Program (SLCP) Converged Assessment Framework and the Higg Index Facility Environmental Module (FEM) to assess and collaborate with suppliers to develop capacity-building and efficiency programs.

Leading by Example

Gap, Inc. continues to lead by example, demonstrating that meaningful change is possible when industry leaders and their partners work together toward common goals. By engaging with MCAP and its strategic suppliers and using the Higg Index tools, Gap Inc. has made significant strides in reducing its environmental footprint and fostering a sustainable supply chain. This proactive approach sets a benchmark for others in the industry, contributing to a more sustainable future for all.