Critically, Gap Inc. should also set a renewable energy target for its supply chain, with a commitment to report on progress transparently each year. Currently Gap Inc.’s supply chain reporting is far from transparent, providing no detail on its energy or electricity use or sourcing, and offering no data to show progress towards phasing out coal-fired boilers. The company does demonstrate that it offers training and engagement with manufacturers in its supply chain but it does not report offering any financing with just a vendor scorecard system to incentivize action. This appears to be reflected in a relative lack of movement among key suppliers.
Total Score
20.5 / 100
Emissions
5%
About the Clean Energy Analysis
The 2024 Clean Energy Close-Up builds on the foundation of the 2023 Scorecards. It provides an in-depth analysis of the tangible progress of 11 of the most influential global fashion brands. Their performance is measured against the runway to an equitable fossil fuel phase-out by 2030 on criteria related to energy efficiency and renewable energy, drawing in data shared publicly by manufacturers in their supply chains.
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Score Breakdown
Score
3.5/10
| Target | Brand Commitment | Meets Benchmark |
| Stores and offices GHG Emission reduction target (Scope 1 & 2) | 90% reduction from 2017 levels by 2030[23] | ✔ |
| Stores and offices Renewable Electricity target (Scope 2) | 100% renewable electricity by 2030 | ✔ |
| Manufacturing emissions target (Scope 3) | 30% reduction from 2017 levels by 2030 | ❌ |
| Manufacturing Renewable Energy target (Scope 3) | No | ❌ |
| Public commitment to phase out thermal coal and transition to electrification/avoid harmful biomass | Coal phase out by 2030[24] | – |
Score
3/10
Gap Inc. publishes a 3-year record and base year of GHG emissions from Scopes 1, 2 and 3 including full Scope 3 breakdown in its CDP disclosure and ESG data. [25][26] The company shares a partial Tier 1 and Tier 2 supplier list publicly via Open Supply Hub.[27] Gap Inc. provides a degree of information on the percentage of renewable energy used in its own operations stating that as of the financial year 2021, this was 37%. [28] However, no information is available on supply chain energy demand or sourcing. Neither does Gap Inc. share details on thermal energy demand across the supply chain by source.
Score
8/40
Gap Inc. reported an increase in Scope 3 Category 1 emissions from financial year of 2021 to 2022 by 5.01%. Despite this increase, the company does not have a public commitment to source 100% renewable energy in the supply chain. There is little evidence on Gap Inc.’s wider external efforts to increase additional renewable energy access and procurement in supply chain regions or in its supply chain. Gap Inc. says it is exploring international RECs but does not report any progress. In order to support an effective long-term transition, the retailer must focus on applying high integrity methods to its own operations to transition to renewable energy.
Gap Inc. reports engaging with Tier 1 and Tier 2 suppliers directly on climate action training which includes identifying the challenges of a coal phase out, but does not provide evidence on its progress. [29]
Score
6/40
Step 1: Gap Inc. does provide support on energy efficiency through training, feasibility studies, and non-financial resources. Examples include in-house programs on SBT setting and joining the Aii Carbon Leadership Program with RESET carbon which focuses on target setting, toolkits, implementation and collaboration.[30] These same efforts and engagement apply to the support provided to suppliers to transition to renewable energy.
Step 2: Gap Inc. provided no clear evidence of direct financial support on energy efficiency or renewable energy programmes for suppliers. The company only mentions its Vendor Scorecard as a method of incentivization. [31]
Step 3: Gap Inc. does not have climate requirements as a condition of contract for suppliers although it does use tools such as internal Vendor Scorecard and the Higg FEM to benchmark best practice.
While the company shares it is engaging with a number of Tier 1 and Tier 2 facilities on a coal phase out, the company has also not acknowledged limitations of burning alternatives, including biomass, biomass isn’t mentioned in the retailer’s ESG report. Stand.earth research indicates Gap Inc. is linked to suppliers using biomass.[32]
Gap Inc. has been awarded points for evidence on its renewable energy advocacy. Gap Inc. has engaged with Ceres BICEP policy group – throughout the development of California Senate Bill 253 and 261, climate disclosure bills. Unlike other brands, the company also shares a Political Engagement Policy which includes memberships and political donations. [33]
It discloses membership of various initiatives including: Fashion Pact, Business Roundtable, American Apparel and Footwear Association, National Retail Federation. However, it is important to note that Business Roundtable opposed Build Back Better and Inflation Reduction Act suggesting misalignment between membership and stance on climate. [34]
Supply Chain Movement
From the 10 suppliers available in the Supply Chain Map linked to Gap Inc., 5 share details on their decarbonization plan. It is positive that Eclat Textile Co. has set near term targets to reduce emissions intensity by 30% from a 2017 base year by 2025. Similarly, Pratibha Syntex Ltd has key goals for 2025, including reducing GHG emissions by 80% by 2025. The company also has a relatively high renewable energy ratio of 24% compared to others, where data is available, which ranges from 0.52% to 10.46%.