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AEO has strong foundations in place for its supply chain decarbonization strategy with Scope 3 reduction targets and interim targets for 2040 in place to reach net zero by 2050. However, the brand must work to set supply chain renewable energy targets in the near-future to support other efforts such as its plan to phase out coal fired boilers by 2030. This will be important to mitigate the rise in overall Scope 3 emissions (17%) against its baseline year.

Total Score

D

Manufacturing Emissions Change

29%

2023 Score

D
* Baseline year for emissions comparison: 2018

Emissions change of Scope 3 Category 1 emissions when compared with the brand’s baseline year. Emissions change of -27% is used as the benchmark for alignment with 1.5C, based on 50% total reduction by 2030 compared with 2018 levels.

The company stood out for its strong level of disclosure across its reporting, providing details of supply chain energy and electricity disclosure by tier, as well as data on supplier thermal energy. Positively, the company has increased renewable energy from manufacturing by 23% from 2022 to 2023.

When it comes to promoting renewable and energy efficient manufacturing, alongside its own Water and Carbon Leadership Program to drive improvement on carbon management, AEO works with organisations like GIZ to provide climate action training and USAID to support trainings on renewable energy solutions. However, the company does not provide evidence of financial support for suppliers to decarbonize, such as access to preferential loan agreements.

To improve its score, AEO must focus on greener shipping and include Category 4 emissions in its Scope 3 Target. This is important given the increase in upstream emissions from 2022 to 2023 of 115%.

More effort should be directed to engaging on renewable energy policies and supporting infrastructure across the regions where AEO operates.

Score Breakdown

Climate and Net Zero Targets

Scope 1 and 2: American Eagle Outfitters commits to reduce absolute scope 1 and scope 2 GHG emissions 80% by 2030 from a 2018 base year.

Scope 3: No – Reduce carbon emissions 40% by 2030 and 60% by 2040 in AEO’s manufacturing, 2018 base year

Mid-term (2035/2040) milestones: Yes – 2040 goal of 60% emissions reduction

Net Zero Roadmap: Brand has a net zero by 2050 goal, with a clear interim target for 2040. Plus other measures set for 2030, like phasing out coal.

Renewable Energy Targets

Own operations RE target: Yes. Secure renewable energy for 100% of electrical power demand for owned and operated facilities by 2030. High impact sourcing unclear. American Eagle is a member of RE100 and communicates that it follows the RE100 Technical Criteria on what is deemed to be renewable energy.

Supply chain RE target: No

Thermal Coal Phase Out

2030 Coal Phase-out Target: Phase out coal-fired boilers in our supply chain by 2030; No new factories with coal-fired boilers after 2025. electrification not specifically prioritised

Thermal energy transition/ electrification: No new factories with coal-fired boilers after 2025. electrification not specifically prioritised. The brand is also transparent about the number of suppliers using coal in different sourcing countries.

Transparency

Emissions data: Yes – clear disclosure of emissions inventory with category breakdown. Breakdown provided by country and energy type. Other brands should follow this example.

Supply chain energy data: Detailed list of suppliers using coal in T1 and T2 and detailed breakdown of supplier thermal energy and electricity in T1 suppliers. Good example. The brand told Stand.Earth that based on 2023 data collected from our strategic factories, 17% of their total energy consumption was from renewable energy, which includes solar, biomass, etc. The renewable energy comes from the following countries: Vietnam 92%, India 4%, and others 6%.

Supplier lists published: No supplier list published.

Training, feasibility studies, and non-financial support for climate action

Demonstrates good effort here. Launched the AEO Water and Carbon Leadership Program to strategic Tier 1 and 2 suppliers to drive improvement on their carbon management system.
Brand provided suppliers with online training workshops for different regions and invited suppliers to share their best practices around onsite solar rooftop systems and coal fired boiler phase out status. In 2022, suppliers in the program have covered 80% of our direct procurement from Tier 1 and at least 30% from our Tier 2 fabric mills.

American Eagle communicated PRIVATE information that; Strategic suppliers are all required to complete the GIZ Climate action training for the fashion industry by the year 2025. More than 60% of the suppliers have already completed the training and obtained the certificates. In 2024, worked with USAID and local consulting firms to offer online trainings on renewable energy solutions (e.g. RECs, DPPA, solar rooftop system local regulation) to suppliers in Vietnam, Bangladesh and China. Working with 30 suppliers in Vietnam to join GIZ Climate Action Training.

Additional, targeted support for transition planning: From privately disclosed information; nominating 3 fabric mills to join Aii CLP and 13 facilities to join Cascale, GIZ PDP on feasibility study for solar roof top systems. From desk research; In 2022, we have also asked all suppliers in this program to complete the Climate Action Training program which is designed to help brands and manufacturers to meet the goals of the UN Fashion Industry Charter for Climate Action from 2022. As an introductory training, it aims to enable suppliers to get started to achieve science based reduction target by 2030 and net zero emissions by 2050. Unclear if training is financed by AEO.

Financial Support for Decarbonization

Loans and financing: No evidence

Collective financing initiatives: No evidence

Direct/debt-free financing: No evidence

Responsible/equitable buying to enable climate action

Purchasing decisions incentivize climate action: Limited. Supplier Code of Conduct has clause on environment. The brand communicated that ‘In 2024, we assessed the environmental performance of our top 40 vendors through the WCLP program, with their ratings integrated into the vendor scorecard to inform purchasing decisions.’

Equitable/long-term sourcing to enable climate action: No evidence

Prices enable climate action: No evidence

Climate Adaptation

Adaptation/worker just transition training funded or provided: No evidence

Emergency support developed with local groups: No evidence

Decarbonization Progress

Reducing manufacturing emissions: No. Increase FY22-FY23 and from FY18 numbers.

Increasing supply chain renewable electricity: The brand shares supply chain breakdown by energy source in its GHG inventory for 2023 but this data was not shared for 2022 so unable to deduce pattern.

Coal phase out transition progress: Unclear

Commitment to phase out fossil fuel-derived fibers

No. Has a goal to source 100% polyester from sustainable sources, including recycled by 2030.

Deforestation-free materials

Leather: Yes. Brand is a signatory to the Deforestation-Free Call to Action for Leather, which aims to reduce the amount of leather sourced from deforested areas. The call to action was developed by the Leather Working Group (LWG) and Textile Exchange in collaboration with the World Wildlife Fund (WWF) and other organizations

Man-made Cellulosic Fibers: Yes – Ensure that 100% of viscose is from non-endangered forests and increase sourcing of sustainably produced viscose fibers

Low-carbon materials

No – Limited to singular initiatives e.g. clothing collection at corporate offices.

Increasing Circularity

American Eagle Outfitters does not have a specific goal to increase recycled, organic or regenerative cotton, but has a broad goal to use sustainable sources for 75% of all fibers by 2028, which includes BCI. No strong examples of support for regenerative farming. AEO does not offer repairs, but has a resale shop through ThredUp.

Target & increase recycled cotton

No. Broad goal; Use sustainable sources for 75% of all fibers by 2028. Breakdown provided by brand; 100% of cotton fiber (58% as of 2023: 54% Better Cotton, 3.7% recycled, 0.4% organic)

100% recycled/organic/regen cotton + wool, report on progress

No. Broad goal; Use sustainable sources for 75% of all fibers by 2028. Breakdown provided by brand; 100% of cotton fiber (58% as of 2023: 54% Better Cotton, 3.7% recycled, 0.4% organic)

Support farmers, transition to regen/organic farming

No strong examples. “AEO signed on as a member of the Trust Protocol in 2022, and we are excited to begin to scale this program across our cotton products. “

Resale/repair – % total sales/disclosure on #

No repairs, resale shop run through ThredUp.

Direct link resale/repair to reduce production

No

Materials transparency

Shares material mix: Only disclosed by % of fibre basket. 61% cotton
14% polyester
8%nylon
5% MMCF
3% Spandex
9% other – includes wool, leather, linen and hemp

Provides data on units sold: No

AEO does not disclose any targets or actions related to reducing the impact of its upstream transportation, which is a major blindspot for the company. Its Scope 3 emissions target does not include shipping, and it does not share details of its transportation modes or share any information about commitments to avoid aviation, reduce the impact of its marine transportation, or transition to zero emission vessels.

AEO’s transportation emissions increased significantly (115%) from 2022-2023, which is concerning, although were still a reduction compared with its baseline year.

No direct examples.