Target Corp's Climate Change Survey 2021: Solar & Carbon Pricing Impact, Lecture notes of Business

Download Target Corp's Climate Change Survey 2021: Solar & Carbon Pricing Impact and more Lecture notes Business in PDF only on Docsity! Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 1 Welcome to your CDP Climate Change Questionnaire 2021 C0. Introduction C0.1 (C0.1) Give a general description and introduction to your organization. Minneapolis based Target Corporation (NYSE: TGT) serves guests at 1909 stores and via Target.com. As one of the largest U.S. retailers, at Target, we use our scale and scope to design, source and sell quality products that delight our guests. We are committed to providing inclusive and sustainable choices that support the needs of our guests, align with their values and uplift and protect the people, communities and ecosystems all along our value chain. As we work to meet these commitments, we are guided by a strategy that is an expression of our purpose and values of inclusivity, optimism, connection, inspiration and drive, as well as ethics and delivering a great experience for our guests. To help all families discover the joy of everyday life—that’s Target’s purpose and there are countless ways we live it. No matter how our guests choose to shop with us—whether in-store, through our digital channels or both—we aim to make their experience easy and inspiring, at an only-at-Target value. We have stores in all 50 U.S. states and the District of Columbia, with team members who reflect our communities and are passionate about bringing joy to our guests, day in and day out. We work together as a team and stand together with our communities, in good times and hard times, striving to always be a source of convenience, continuity and joy. Since 1946, Target has given 5 percent of its profit to communities. For more information about Target’s commitment to corporate responsibility, visit https://corporate.target.com/corporate- responsibility/. Target considers multiple factors in evaluating risk. Target considers risks substantive when they are assessed to be high or critical using proprietary criteria. Importantly, issues deemed material for the purposes of this report may not be considered material for SEC reporting purposes. Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 2 Target’s responses to this questionnaire contains forward-looking statements, which are based on our current assumptions and expectations. These statements are typically accompanied by the words “expect,” “may,” “could,” “believe,” “would,” “might,” “anticipates” or similar words. The principal forward-looking statements in this report include our sustainability goals, commitments and programs; our business plans, initiatives and objectives; our assumptions and expectations; the scope and impact of corporate responsibility risks and opportunities; and standards and expectations of third parties. All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although we believe there is a reasonable basis for the forward looking statements, our actual results could be materially different. The most important factors that could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors included in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended January 30, 2021, which should be read in conjunction with the forward looking statements in this report. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement. C0.2 (C0.2) State the start and end date of the year for which you are reporting data. Start date End date Indicate if you are providing emissions data for past reporting years Reporting year February 2, 2020 January 31, 2021 No C0.3 (C0.3) Select the countries/areas for which you will be supplying data. United States of America C0.4 (C0.4) Select the currency used for all financial information disclosed throughout your response. USD C0.5 (C0.5) Select the option that describes the reporting boundary for which climate- related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory. Operational control Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 5 to help coordinate and strategize on work. The Process of monitoring climate-related issues further includes a quarterly meeting with the SVP of CR, the Vice President of Property Management and the Vice President of Responsible Sourcing & Sustainability.to discuss progress toward goals (for example, Scope 1 & 2, and Scope 3 goals) and any changes in our business context that may have implications for climate-related issues relevant to Target. The Vice President of Property Management oversees the Property and Energy Management across Target. They report to the Senior Vice President of Properties at Target. The Property and Energy Management teams conduct critical work around our waste minimization efforts, store HVAC efficiencies, EV charging stations, and lead the work around procuring renewable energy sources. The Property and Energy Management teams also drive a majority of the strategy behind our Scope 1 and 2 goals in conjunction with the Business Integration team within CR. On a quarterly basis the Vice President of Property Management brings together their team along with other critical partners like Responsible Sourcing & Sustainability and CR to review progress on goals and understand key milestones. The process of monitoring climate- related issues is brought up during this meeting to review progress of Scope 1 and 2 goals. The Vice President of Responsible Sourcing & Sustainability oversees Target's global commitment to manufacture our goods and services in a responsible and sustainable manner. The Vice President of Responsible Sourcing & Sustainability reports to the SVP & President of Owned Brand Sourcing. The process of monitoring climate-related issues involves the Responsible Sourcing & Sustainability team leading our Scope 3 climate commitment specifically, around the purchased goods and services category and inclusive of the strategy and implementation of our supplier focused climate goal. Our supplier engagement initiatives that are tied to our climate goal are focused on engaging and supporting our top 80% of suppliers by spend set their own Scope 1 and 2 science-based emission reduction targets. The Responsible Sourcing & Sustainability team also leads our supplier and factory engagements to drive sustainable operations via transparency and improved supply chain operational efficiencies. Key efforts of Responsible Sourcing & Sustainability include: manufacturing performance improvement programs, training of suppliers on our energy and climate goals, as well as factory compliance audits across our global supply chain. These initiatives ladder up to Target's energy and climate goals within the Owned Brand Sourcing and Development team objectives and our overarching science-based emission reduction targets. The Vice President of Responsible Sourcing & Sustainability meets quarterly with the SVP of CR, VP of Property Management and VP of Responsible Design to discuss progress towards climate goals and review forward moving plans to support climate-related strategies. C1.3 (C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets? Provide incentives for the management of climate-related issues Comment Row 1 Yes Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 6 C1.3a (C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals). Entitled to incentive Type of incentive Activity inventivized Comment Energy manager Monetary reward Emissions reduction project Energy reduction project Efficiency target Progress toward Target's carbon reduction goal is included in applicable individuals' Goals and Objectives. Performance against these Goals and Objectives is a key factor in annual performance reviews and compensation adjustments. Environment/Sustainability manager Monetary reward Emissions reduction project Emissions reduction target Energy reduction project Energy reduction target Efficiency target Supply chain engagement Progress toward the carbon reduction goal is included in individual Goals and Objectives; performance against Goals and Objectives is a key factor in annual performance reviews and compensation adjustments. C2. Risks and opportunities C2.1 (C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities? Yes C2.1a (C2.1a) How does your organization define short-, medium- and long-term time horizons? Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 7 From (years) To (years) Comment Short-term 0 5 Medium-term 5 10 Long-term 10 20 C2.1b (C2.1b) How does your organization define substantive financial or strategic impact on your business? Target considers multiple factors in evaluating risk. Target considers risks substantive when they are assessed to be high or critical using proprietary criteria. Importantly, something that has a "substantive financial or strategic impact on our business" is not necessarily "material" to investors as defined by the SEC. In the context of climate-related issues and this response, Target leverages both the TCFD framework and our internal Enterprise Risk Management Framework. We considered level of financial impact, likelihood of potential events occurrence over time and our ability to mitigate potential risks. Target’s answers to this questionnaire contain forward-looking statements, which are based on our current assumptions and expectations. These statements are typically accompanied by the words "expect," "may," "could," "believe," "would," "might," "anticipates," or similar words. All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although we believe there is a reasonable basis for the forward-looking statements, our actual results could be materially different. The most important factors which could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors in Item 1A of our Form 10-K for the fiscal year ended February 1, 2020, which should be read in conjunction with the forward-looking statements in this report. Forward- looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement. C2.2 (C2.2) Describe your process(es) for identifying, assessing and responding to climate- related risks and opportunities. Value chain stage(s) covered Direct operations Upstream Downstream Risk management process A specific climate-related risk management process Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 10 we operate, with our NGO stakeholders and partners, and with third party industry analysts. Target's existing climate policy and goals are designed to set a leadership example within the retail industry and are accompanied by internal execution strategies and management plans to hold our team accountable to meeting the goals and maintaining our credible reputation in this space. Target commits to publicly reporting annually on our goal progress. Reputational risks were considered in the scenario analysis from both a consumer standpoint and investor standpoint. Target identified both reputational risks and opportunities associated with climate change, and consumer shifting preference to sustainable brands. As part of the new Target Forward sustainability strategy, Target has committed to being a net zero enterprise by 2040. Acute physical Relevant, always included Target operates in many communities impacted by extreme weather events. In 2020 Target experienced impact from extreme weather events such as Tornadoes, Floods, a Derecho, Hurricanes like Delta, Laura and Sally and wildfires across west coast. Outfitting our facilities with shutters and air scrubbers along with repairing damaged stores and other facilities has direct costs to Target. Acute physical risks played a large role in the scenario analysis, as Target is already prone to climate-related acute weather events. As described above, Target has already experienced financial damage from weather-related events. Chronic physical Relevant, always included Rising temperatures require longer run times on HVAC equipment in impacted stores. Longer HVAC run times incur additional energy costs to Target. Chronic physical risks played a large role in the scenario analysis, as it is very likely that chronic risks associated with climate change will impact Target. These physical risks could imply decreased revenue due to disruption in supply chain and operations, increased operating costs and infrastructure damage at Target’s facilities, increases in raw material, food, and produce costs, and delays in distribution. C2.3 (C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business? Yes C2.3a (C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business. Identifier Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 11 Risk 1 Where in the value chain does the risk driver occur? Upstream Risk type & Primary climate-related risk driver Market Uncertainty in market signals Primary potential financial impact Increased indirect (operating) costs Company-specific description Changing prices for electricity and other fuels could significantly impact Target’s business. For example, higher fuel costs will lead to higher logistics costs. With almost 2,000 stores in the US and nearly 40 distribution centers, Target relies heavily on a complex supply chain and logistics network. An increase in higher fuel costs will lead to a higher logistics cost for Target. Both the IEA WEO 2018 and the EIA Outlook 2019 project increases in fossil fuels costs under the BAU scenario through 2040. The 2025 global oil price is projected at $101/ barrel and the 2025 US oil price is projected at $80/ barrel. The 2040 global oil price is projected at $137/ barrel and the 2040 US oil price is projected at $105/ barrel. Time horizon Long-term Likelihood Very likely Magnitude of impact High Are you able to provide a potential financial impact figure? Yes, an estimated range Potential financial impact figure (currency) Potential financial impact figure – minimum (currency) 200,000,000 Potential financial impact figure – maximum (currency) 300,000,000 Explanation of financial impact figure By 2040, the cost of diesel used in heavy-duty trucks is expected to increase by roughly 75% compared to 2018. If this increase in fuel cost is passed down to Target from its logistics suppliers, the potential financial impact could be $200,000,000 to $300,000,000 USD/year by 2040. Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 12 Cost of response to risk 0 Description of response and explanation of cost calculation Within our Scope 3 emissions footprint inventory, Upstream Transportation and Distribution accounts for around 3% of our GHG emissions. In 2008, we joined the EPA's SmartWay Transportation Partnership, which includes an annual carbon footprint assessment of domestic transportation operations. Because the majority of Target’s logistics are carried out by third-party operators, and increased costs faced by these operators would likely be passed on to Target, we work closely with suppliers to determine the best ship points and delivery routes to reduce the number of transportation miles and to mitigate risk associated with transportation of merchandise. We apply careful research and utilize optimization technology to choose the most efficient combination of transportation methods to carry each shipment throughout our supply chain and continue to improve loading practices and efficiencies at our regional distribution centers. The cost of the response to the risk is estimated at $0. There is no incremental cost to respond to this climate-related risk mitigation response because maintaining adequate insurance coverage for all Company sites is part of the normal cost of doing business. Comment The cost of the response to the risk is estimated at $0. There is no incremental cost to respond to this climate-related risk mitigation response because maintaining adequate insurance coverage for all Company sites is part of the normal cost of doing business. Identifier Risk 2 Where in the value chain does the risk driver occur? Direct operations Risk type & Primary climate-related risk driver Technology Substitution of existing products and services with lower emissions options Primary potential financial impact Increased capital expenditures Company-specific description We aim to build and remodel intentional spaces that are designed with our long-term impact on the environment in mind. Target has built an energy efficient portfolio of stores by continuously adopting new technologies and operating procedures. Building and equipment codes will continue to evolve toward higher efficiency and more sustainable operational models, which will lead to increased capital costs for new and existing stores. For example, increased CAPEX tied to local renewable energy Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 15 occurrence: Miami, Minneapolis, Los Angeles (medium to high risk); Houston (high risk); Chicago (extremely high risk). Increased storms/ hurricane occurrence can cause infrastructure damage of owned facilities, potential incurred costs for transporting workers post impacts, and temporary closures resulting in lost sales. Wildfires could cause infrastructure damage of owned facilities, potential incurred costs for transporting workers post impacts, and temporary closures resulting in lost sales. The cumulative forest area burned by wildfires has greatly increased between 1984 and 2015, with analyses estimating that the area burned by wildfire across the western United States over that period was twice what would have burned had climate change not occurred. In Southwest (CA, AZ) wildfire can threaten people and homes, particularly as building expands in fire-prone areas. Wildfires around Los Angeles from 1990 to 2009 caused $3.1 billion in total economic damages (unadjusted for inflation). Time horizon Long-term Likelihood Likely Magnitude of impact Medium-low Are you able to provide a potential financial impact figure? Yes, an estimated range Potential financial impact figure (currency) Potential financial impact figure – minimum (currency) 8,000,000 Potential financial impact figure – maximum (currency) 55,000,000 Explanation of financial impact figure Target tracks its costs in inventory and property damages from extreme weather events, such as hurricanes, lightning strikes, cyclones, rain and hail storms, wildfires, earthquakes, etc. From2011 through 2018, the cost to Target of inventory and property damage due to weather-related events has been more than $170 million, with annual losses ranging from about $8 million to about $55 million per year. The most significant costs have been the result of hurricanes, floods, and rain and hail storms. As the frequency and severity of these types of extreme weather events are expected to increase in both the 2⁰C and 4⁰C scenarios, Target can expect that these costs will increase over time. Cost of response to risk 0 Description of response and explanation of cost calculation Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 16 Target monitors weather forecasts and works with store teams and Target's emergency management team to prepare the stores and prioritize team member and guest safety. When a Target store or distribution center is closed or, and property damages occur from extreme weather-related events, our teams monitor the duration of closure to assess and assign sales loss and team member compensation, costs to repair damages, and costs of products donated to communities to provided necessities such as pallets of water and other necessities. Target provided more than $2 million to support communities impacted by a natural disaster in 2020. In October of 2020,Target donated $250,000 to support communities activating in response to Hurricane Delta’s impact in the Gulf Coast, including the Team Member Giving Fund, Red Cross, Team Rubicon, Community Foundation of Southwest Louisiana and local food banks, such as Second Harvest Greater New Orleans and Acadiana, the Food Bank of Central Louisiana and the Food Bank of Northeast Louisiana. Our store teams also used Target GiftCards to support local first responders and nonprofit organizations on purchasing much needed supplies. The cost of the response to the risk is estimated at $0. There is no incremental cost to respond to this climate-related risk mitigation response because maintaining adequate insurance coverage for all Company sites is part of the normal cost of doing business. Comment The cost of the response to the risk is estimated at $0. There is no incremental cost to respond to this climate-related risk mitigation response because maintaining adequate insurance coverage for all Company sites is part of the normal cost of doing business. C2.4 (C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business? Yes C2.4a (C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business. Identifier Opp1 Where in the value chain does the opportunity occur? Direct operations Opportunity type Energy source Primary climate-related opportunity driver Use of lower-emission sources of energy Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 17 Primary potential financial impact Reduced indirect (operating) costs Company-specific description Multiple federal and regional efforts have emerged that seek to put a price on carbon. Included in these proposals are federal and regional cap-and-trade programs, carbon taxes, and other proposals. The end objective of policymakers is to reduce the price disparity between carbon-based and alternative energy sources, establish increased certainty for future energy prices and regulations, reduce U.S. dependence on foreign energy sources, and incentivize organizations and individuals who act to reduce their energy use. In addition to the certainty that would come from the establishment of significant carbon regulations, we believe Target could benefit in two other ways. First, more than 10 years of substantial investments in energy efficiency will position Target to compete in an economy where energy costs increase. Strategies that de-couple our business operations from carbon-based energy sources will reduce our exposure to price fluctuations and help the organization manage expense. Second, as we continue to invest in energy efficiency and renewable energy – there may be opportunities for Target to further monetize the value we create by reducing GHG emissions through the sale of renewable energy certificates. Target has invested heavily in carbon reduction efforts over the past several years. Target is currently realizing financial value through the sale of Renewable Energy Credits (RECs) in states with renewable energy standards and strong REC markets. When Target sells the RECs from a behind-the- meter solar energy installation, Target does not make public claims to be solar powered nor does Target include the associated solar production in annual renewable energy or GHG reporting. Our investments in both energy efficiency and renewable energy have positive paybacks and are a direct financial benefit. Time horizon Long-term Likelihood Very likely Magnitude of impact Medium-low Are you able to provide a potential financial impact figure? Yes, an estimated range Potential financial impact figure (currency) Potential financial impact figure – minimum (currency) 35,000,000 Potential financial impact figure – maximum (currency) 112,000,000 Explanation of financial impact figure Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 20 identifying opportunities is handled via online calls with our suppliers and we don't incur any additional cost to realize this opportunity. Comment The cost associated with currently managing these risks is minimal. We utilize internal resources to manage programs and have some expenses related to these programs. However, these costs as a percentage of total costs are minimal. Identifier Opp3 Where in the value chain does the opportunity occur? Downstream Opportunity type Products and services Primary climate-related opportunity driver Development and/or expansion of low emission goods and services Primary potential financial impact Increased revenues resulting from increased demand for products and services Company-specific description From how we build our stores to the products on our shelves, environmental sustainability at Target is integrated throughout our business. Our guests have come to expect attractive, functional, high-quality, and affordable merchandise as a part of our everyday assortment. With the growing awareness of environmental issues including climate change and health and well-being, we see an opportunity to offer our guests additional choices within our product assortment that will drive top-line sales. We constantly revamp our assortment to make sure we're giving guests what they want. We are rethinking the design of products and packaging we sell to incorporate sustainable attributes - because it's the right thing to do and because it creates additional value for our guests. We measure our guests' preferences through surveys, trend research, sales patterns and product tests. In many departments within our stores, guests will find product choices that incorporate recycled materials, nontoxic chemicals or organic ingredients, and packaging designs that minimize waste and incorporate recyclable or other preferable materials. In addition to top-line sales growth opportunities – there are opportunities to drive improved margin through a greater focus on product and packaging design. The elimination of excess material and energy costs from product manufacturing and transportation can translate into lower cost of goods sold. Time horizon Short-term Likelihood Likely Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 21 Magnitude of impact High Are you able to provide a potential financial impact figure? No, we do not have this figure Potential financial impact figure (currency) Potential financial impact figure – minimum (currency) Potential financial impact figure – maximum (currency) Explanation of financial impact figure Target has seen success with lower-carbon products in the past. We are using recycled content in our polyester sourcing as well as in our Everspring product line. Everspring paper products use at least 50 percent recycled pulp, and Everspring bottle packaging uses 100 percent post-consumer recycled content for Everspring room spray, foaming hand soap, liquid hand soap, dish soap and spray cleaning products and 50 percent post-consumer recycled content in laundry bottles. All of the post-consumer recycled plastic is sourced domestically. In total, we estimate we will use almost 700,000 lbs. of recycled plastic annually. There are several additional initiatives underway to expand the provision of goods with a reduced carbon footprint. Target has not yet conducted a full analysis of the opportunity and its magnitude. Cost to realize opportunity 0 Strategy to realize opportunity and explanation of cost calculation Target has measures & plans to offer sustainable products and reduce life-cycle impacts of products (e.g. water efficient products, sustainable sourcing of cotton (which is Better Cotton Initiative, Cotton Leads, Organic or Recycled Cotton), New Plastics Economy Global Commitment, circular fashion design, forest products policy, sustainable seafood, etc.). Yet consumer's sustainability awareness / willingness to pay / boycott could vary across product types (e.g. necessities vs luxury products; healthcare / food), it remains unclear how Target's current measures and policies are well placed against the "consumer awareness hotspots" and also against various age groups of consumers. Target is actively working on a number of projects to understand evolving guest attitudes and how our merchandise assortment meets those needs. For example, we have teams across the enterprise focused on understanding and improving attributes (including environmental) of our owned- and national-brand product assortment. This team is comprised of representatives from key departments within our merchandising, sourcing, and marketing divisions. The work of this team is helping to inform and guide our merchandise strategy. In addition, the CR team works with hundreds of partners across the company to set goals, develop initiatives and monitor and report progress. Link : https://corporate.target.com/article/2020/09/cr-report-2020 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 22 Comment The main effort involved in identifying opportunities is handled via online calls with our suppliers and we don't incur any additional cost to realize this opportunity. C3. Business Strategy C3.1 (C3.1) Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning? Yes, and we have developed a low-carbon transition plan C3.1a (C3.1a) Is your organization’s low-carbon transition plan a scheduled resolution item at Annual General Meetings (AGMs)? Is your low-carbon transition plan a scheduled resolution item at AGMs? Comment Row 1 No, and we do not intend it to become a scheduled resolution item within the next two years C3.2 (C3.2) Does your organization use climate-related scenario analysis to inform its strategy? Yes, qualitative and quantitative C3.2a (C3.2a) Provide details of your organization’s use of climate-related scenario analysis. Climate-related scenarios and models applied Details RCP 4.5 RCP 8.5 IEA Sustainable development scenario Other, please specify IEA Current Policies Scenario, SSP2, SSP3, US Fourth National Climate Assessment In keeping with this best practice, we chose well-established third-party scenarios to look at both physical and transition risks and opportunities over three timeframes (2025, 2030, and 2040). For physical risks and opportunities, we drew on IPCC RCP 4.5 and RCP 8.5. For transition risks and opportunities, we used IEA’s WEO Sustainable Development Scenario and Current Policies Scenario. We also used the WRI Aqueduct tool to investigate water-related risks under different decarbonization pathways. In addition to the IPCC scenarios already mentioned, the tool uses socioeconomic assumptions from the Shared Socioeconomic Pathways (e.g. SSP2 and SSP3). Inputs: We also reviewed the U.S. Government’s Fourth National Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 25 Investment in R&D Not evaluated Target’s investment in R&D has not yet been impacted enough to pivot our current strategy. We foresee this will continue to stay unimpacted in the short-term future. Operations Evaluation in progress Target’s operations team is evaluating which locations are more at risk for energy supply interruptions, including from climate-related disruption events, in order to prioritize sites for energy resiliency investments. C3.4 (C3.4) Describe where and how climate-related risks and opportunities have influenced your financial planning. Financial planning elements that have been influenced Description of influence Row 1 Indirect costs Capital expenditures Assets Indirect Costs: Warmer climate zones may require longer HVAC run times, increasing Target's energy costs. Target's energy team works with internal asset teams to evaluate equipment run strategies and their associated costs. These costs are reflected in Target's long-range planning process for operating cost forecasts. Revenues from the sale of Renewable Energy Credits generated from behind-the-meter solar installations at select Target stores help reduce operating costs. Target's solar, offsite renewable energy, and energy efficiency programs produce energy cost savings that reduce overall operating costs. Capital Expenditures: Increased capital costs from extreme weather event-impacted stores are included in corporate financial planning. Target is evaluating improving the energy resiliency at stores and distribution centers in areas of the country that are likely to experience more extreme weather events. Resiliency measures are likely to require additional capital expenditures, and these costs are evaluated by Target's Property Management team in store planning and long-range financial planning. Assets: Chronic changes to temperature, humidity, and dew points may reduce the expected lifespan of store equipment that was installed under different condition expectations, requiring more frequent replacement. Asset aging and turnover is monitored and included in financial planning. Target's Property Management team is also evaluating how to use Target's existing store and distribution center footprint to create additional opportunities in onsite solar, energy efficiency, and electric vehicle charging stations for guests. The financial value of these programs is evaluated in long term planning and capital Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 26 request processes. By the end of 2020 Target had more than 542 sites with onsite solar and 117 locations with EVCharging. C3.4a (C3.4a) Provide any additional information on how climate-related risks and opportunities have influenced your strategy and financial planning (optional). In 2020 we developed an Enterprise Sustainability Strategy with an ambition to be an equitable and regenerative company. All of our actions to address climate change support our top-level commitment to be a net zero enterprise by 2040. The scope of this goal includes our scope 1, 2 & 3 emissions. This strategy will be started Summer 2021. The science behind climate change necessitates aggressive emissions reductions and removals over the next two decades, and we will do our part. In 2015, Target announced a set of energy-related goals as part of signing on to the White House’s American Business Act on Climate Pledge. These include energy efficiency, renewable energy, and refrigeration emission management goals. Senior leadership is updated on progress against these goals quarterly, and teams are responsible for ensuring progress toward the goals. In the short term, GHG emissions reductions from operations are the primary climate-related driver for changing our business strategy. Both reputational and potential regulatory/financial impacts of climate change have also influenced our short-term strategy. This is evident in our allocation of capital specifically for sustainability projects. These projects include energy efficiency projects, onsite solar, and projects that reduce our high global warming potential refrigerants. Our formal innovation process has been designed to bring together partners in engineering, architecture, operations, energy management, and sustainability to identify and test new technologies or processes. Innovation funds small tests and pilots and helps make the business case to implement successful projects across the chain. In 2016, we expanded programs engaging manufacturing suppliers in our supply chain to implement energy and water efficiency projects. Initially partnering with the Natural Resources Defense Council’s Clean by Design program (now managed by the Apparel Impact Institute), we continue to pursue opportunities across regions to scale our manufacturing performance improvement program. We also recognize the long-term impacts climate change and potential carbon regulations have on our business. We are developing processes and technologies that enable us to track and monitor the impact of extreme weather events on our facilities, team members, and guests. The current and evolving tools prepare us to address any possible increases in extreme weather events associated with climate change. In addition, we began to examine the environmental impacts embedded within our supply chain to understand our exposure to climate change within our supply chain. Our combination of operational efficiency, energy management, reputation management, and our evolving tools and technology provide a strategic advantage encompassing climate change. Short-term operational efficiencies enable improvements in expenses while we continue to pursue our public goals. In 2017, we introduced a new climate policy and goals to guide our progress, based on the latest climate science. We have set goals to reduce our greenhouse gas footprint, and continue to work with our industry partners, policymakers and other stakeholders to accelerate the transition to a zero carbon economy. We have begun implementing projects in Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 27 our owned-brand manufacturing facilities that will result in the avoidance of Scope 3 emissions. In 2019, we also developed and received approval of our Scope 3 goal that, coupled with our Scope 1 and 2 goal, has fulfilled our commitment to the Science-Based Targets initiative. This initiative provides guidance for and champions science-based target setting as a powerful way of boosting companies’ competitive advantage in the transition to the low-carbon economy. In December 2019, Supply Chain Dive awarded Target the 2019 Sustainability Plan of the Year, in recognition of our leadership in setting carbon-reduction goals for the entire supply chain. In 2019, we also performed a scenario analysis in line with TCFD recommendations. In addition, we have joined other companies in the BSR Value Chain Risk to Resilience working group to best determine our strategy to more comprehensively integrate climate risk into our core business practices. Although we have taken many steps on our journey of climate risk mitigation, we are working to better understand how to most efficiently implement more resilient business strategies going forward. C4. Targets and performance C4.1 (C4.1) Did you have an emissions target that was active in the reporting year? Absolute target C4.1a (C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets. Target reference number Abs 1 Year target was set 2019 Target coverage Company-wide Scope(s) (or Scope 3 category) Scope 1+2 (market-based) Base year 2017 Covered emissions in base year (metric tons CO2e) 2,567,880 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 30 Target received approval of our Scope 1, 2, and 3 Climate goals by SBTi in January of 2019. C4.2 (C4.2) Did you have any other climate-related targets that were active in the reporting year? Target(s) to increase low-carbon energy consumption or production Target(s) to reduce methane emissions Net-zero target(s) C4.2a (C4.2a) Provide details of your target(s) to increase low-carbon energy consumption or production. Target reference number Low 1 Year target was set 2019 Target coverage Company-wide Target type: absolute or intensity Absolute Target type: energy carrier Electricity Target type: activity Consumption Target type: energy source Renewable energy source(s) only Metric (target numerator if reporting an intensity target) Percentage Target denominator (intensity targets only) Base year 2018 Figure or percentage in base year 22 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 31 Target year 2030 Figure or percentage in target year 100 Figure or percentage in reporting year 37 % of target achieved [auto-calculated] 19.2307692308 Target status in reporting year Underway Is this target part of an emissions target? The renewable electricity goal contributes to the Scope 2 emissions goal Is this target part of an overarching initiative? RE100 Please explain (including target coverage) We have committed to source 100% of our electricity from renewable sources by 2030. The goal, which applies to all of Target’s domestic operations, will help us power our stores, distribution centers and offices even more responsibly. We’ll track our progress closely, and we’re already working toward an initial checkpoint of sourcing 60% of our electricity through renewable sources by 2025. We set our 100% renewable electricity goal at the same time we joined the RE100 initiative. Target reference number Low 2 Year target was set 2014 Target coverage Company-wide Target type: absolute or intensity Absolute Target type: energy carrier Electricity Target type: activity Production Target type: energy source Renewable energy source(s) only Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 32 Metric (target numerator if reporting an intensity target) Percentage Target denominator (intensity targets only) Base year 2014 Figure or percentage in base year 20.8 Target year 2020 Figure or percentage in target year 100 Figure or percentage in reporting year 542 % of target achieved [auto-calculated] 658.0808080808 Target status in reporting year Achieved Is this target part of an emissions target? The rooftop solar goal contributes to the Scope 2 emissions goal. Is this target part of an overarching initiative? Science-based targets initiative Please explain (including target coverage) We report our annual solar installation progress in the U.S. Solar Energy Industry Association’s annual “Solar Means Business” report. C4.2b (C4.2b) Provide details of any other climate-related targets, including methane reduction targets. Target reference number Oth 1 Year target was set 2019 Target coverage Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 35 Target reference number Oth 3 Year target was set 2019 Target coverage Site/facility Target type: absolute or intensity Absolute Target type: category & Metric (target numerator if reporting an intensity target) Target denominator (intensity targets only) Base year 2012 Figure or percentage in base year 0 Target year 2020 Figure or percentage in target year 20 Figure or percentage in reporting year 19 % of target achieved [auto-calculated] 95 Target status in reporting year Underway Is this target part of an emissions target? Not directly, however, the addition of EV Charging is in support of the transition to more sustainable modes of transportation for our guests and team members within the communities that we operate. Is this target part of an overarching initiative? No, it's not part of an overarching initiative Please explain (including target coverage) This goal encompasses our efforts to setup EV charging across 20 states by the end of 2020. Due to challenges related to the pandemic expansion was delayed in some Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 36 markets; we expect to meet our 20 state goal in 2021. We are making advances in our electric vehicle infrastructure with the help of industry experts Tesla, ChargePoint and Electrify America. Target reference number Oth 4 Year target was set 2014 Target coverage Other, please specify All Stores Target type: absolute or intensity Intensity Target type: category & Metric (target numerator if reporting an intensity target) Low-carbon buildings Percentage of buildings with a green building certificate Target denominator (intensity targets only) Other, please specify Total Store Count Base year 2016 Figure or percentage in base year 1,403 Target year 2020 Figure or percentage in target year 80 Figure or percentage in reporting year 1,553 % of target achieved [auto-calculated] -11.3378684807 Target status in reporting year Achieved Is this target part of an emissions target? More efficient buildings contribute to Target’s Scope 1 and 2 reductions. Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 37 Is this target part of an overarching initiative? Science Based Targets initiative Please explain (including target coverage) Target’s ENERGY STAR goal preceded our Science-Based Climate goal but pursuing ENERGY STAR certification has presented energy efficiency savings opportunities that, when implemented, contribute to Target’s climate goals. Target reference number Oth 5 Year target was set 2014 Target coverage Other, please specify All Stores Target type: absolute or intensity Intensity Target type: category & Metric (target numerator if reporting an intensity target) Waste management Percentage of total waste generated that is recycled Target denominator (intensity targets only) metric ton of waste Base year 2014 Figure or percentage in base year 67.9 Target year 2020 Figure or percentage in target year 70 Figure or percentage in reporting year 80.1 % of target achieved [auto-calculated] 580.9523809524 Target status in reporting year Achieved Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 40 By 2025, Target commits to source 60% of our electricity from renewable sources for our operations By 2030, Target commits to source 100% of our electricity from renewable sources for our operations By 2030, Target commits to achieve 50% absolute reduction in operations emissions (scopes 1 & 2) from a 2017 base-year By 2030, Target commits to achieve 30% absolute reduction in supply chain emissions (scope 3) covering retail purchased goods and services from a 2017 base-year Foundations we’ve laid: Set science-based targets for emissions reductions across scopes 1, 2 and 3 Committed to join the “Business Ambition for 1.5°C” Currently have projects and partnerships in place that when complete, will result in our purchasing nearly 50% of our electricity from renewable sources, well on our way to 100% by 2030 C4.3 (C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or implementation phases. Yes C4.3a (C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO2e savings. Number of initiatives Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *) Under investigation 0 0 To be implemented* 3 14,187 Implementation commenced* 0 0 Implemented* 5 336,011 Not to be implemented 0 0 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 41 C4.3b (C4.3b) Provide details on the initiatives implemented in the reporting year in the table below. Initiative category & Initiative type Energy efficiency in buildings Lighting Estimated annual CO2e savings (metric tonnes CO2e) 24,488 Scope(s) Scope 2 (location-based) Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in C0.4) 5,000,000 Investment required (unit currency – as specified in C0.4) 47,400,000 Payback period 1-3 years Estimated lifetime of the initiative 6-10 years Comment Annual energy savings from Target's 2020 investments in LED lighting on the sales floor, backrooms, parking lots, and building downlights (63,875 MWh) was multiplied by the effective CO2e/MWh emission factor (0.3834) from Target's Market-based Scope 2 inventory in order to calculate the CO2 value of this initiative. 63,875 MWh x 0.3834 = 24,488 MTCO2e. Initiative category & Initiative type Low-carbon energy consumption Solar PV Estimated annual CO2e savings (metric tonnes CO2e) 47,671 Scope(s) Scope 2 (location-based) Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 42 Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in C0.4) 0 Investment required (unit currency – as specified in C0.4) 0 Payback period 4-10 years Estimated lifetime of the initiative 11-15 years Comment The 2020 REC total from Target's active onsite solar projects (124,349 MWh) was multiplied by the effective CO2e/MWh emission factor (0.3834) from Target's Market- based Scope 2 inventory in order to calculate the CO2 value of this initiative. 124,349 MWh X 0.3834 = 47,671 MTCO2e Initiative category & Initiative type Estimated annual CO2e savings (metric tonnes CO2e) 263,161 Scope(s) Scope 2 (market-based) Voluntary/Mandatory Voluntary Annual monetary savings (unit currency – as specified in C0.4) 0 Investment required (unit currency – as specified in C0.4) 0 Payback period No payback Estimated lifetime of the initiative 11-15 years Comment The 2020 REC total from Target's offsite renewable projects and green tariffs (686,449 MWh) was multiplied by the effective CO2e/MWh emission factor (0.3834) from Target's Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 45 Description of product/Group of products Energy Star Certified Products: Target offers a range of Energy Star certified products through our stores and digital platform, which includes offerings like air conditioner units, dehumidifiers, and bathroom fans. Are these low-carbon product(s) or do they enable avoided emissions? Avoided emissions Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions Other, please specify ENERGY STAR Certification % revenue from low carbon product(s) in the reporting year 0 Comment Our assortment of Energy Star certified products allow our guests to to identify and purchase energy-efficient products that offer savings on energy bills verified via EPA established energy efficiency requirements. Target does not disclose revenue for specific product categories. Level of aggregation Group of products Description of product/Group of products LED Light Bulbs: Target offers a vast assortment of LED light bulbs. The assortment includes a variety of price points including options for less than $10. Our Up & Up owned brand lightbulbs typically have a 10-year lifespan and utilize on average 80% less energy than incandescent light bulbs. Are these low-carbon product(s) or do they enable avoided emissions? Avoided emissions Taxonomy, project or methodology used to classify product(s) as low-carbon or to calculate avoided emissions Other, please specify U.S. Department of Energy Life-Cycle Assessment of Energy and Environmental Impacts of LED Lighting Products % revenue from low carbon product(s) in the reporting year 0 Comment As a part of our energy efficient light bulb program Target works with electric utilities across the country to help promote LED light bulbs with customers as part of the utility’s demand-side management efficiency programs. Target is a key vendor in the Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 46 distribution of energy efficient products. Target does not disclose revenue for specific product categories. C5. Emissions methodology C5.1 (C5.1) Provide your base year and base year emissions (Scopes 1 and 2). Scope 1 Base year start February 1, 2017 Base year end January 31, 2018 Base year emissions (metric tons CO2e) 706,176 Comment The 2017 baseline values are calculated using the AR4 GWP values. Scope 2 (location-based) Base year start February 1, 2017 Base year end January 31, 2018 Base year emissions (metric tons CO2e) 1,936,817 Comment The 2017 baseline values are calculated using the AR4 GWP values. Due to a chilled water consumption billing error in 2020 Target restated the 2017 baseline Scope 2 (location-based) total. Scope 2 (market-based) Base year start February 1, 2017 Base year end January 31, 2018 Base year emissions (metric tons CO2e) 1,861,703 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 47 Comment The 2017 baseline values are calculated using the AR4 GWP values. Due to a chilled water consumption billing error in 2020 Target restated the 2017 baseline Scope 2 (market-based) total. C5.2 (C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate emissions. The Climate Registry: General Reporting Protocol C6. Emissions data C6.1 (C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e? Reporting year Gross global Scope 1 emissions (metric tons CO2e) 699,877 Comment C6.2 (C6.2) Describe your organization’s approach to reporting Scope 2 emissions. Row 1 Scope 2, location-based We are reporting a Scope 2, location-based figure Scope 2, market-based We are reporting a Scope 2, market-based figure Comment Target continues to collect supplier-specific emission factors compliant with the GHG Protocol Scope 2 Guidance Emission Factor Hierarchy. We have led efforts with peer companies, CRS and the Edison Electric Institute to increase the reporting of these emission factors within the United States. C6.3 (C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e? Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 50 Capital goods Evaluation status Relevant, calculated Metric tonnes CO2e 708,000 Emissions calculation methodology Target’s capital goods spend was evaluated by pyramid to identify appropriate sector allocations and then multiplied by EE I/O emission factors. In 2020 the EE I/O database was switched from Carnegie Mellon to EPA. Percentage of emissions calculated using data obtained from suppliers or value chain partners 0 Please explain These data points reflect our 2020 emissions and do not include supplier primary data. Fuel-and-energy-related activities (not included in Scope 1 or 2) Evaluation status Relevant, calculated Metric tonnes CO2e 397,000 Emissions calculation methodology Emissions were calculated for fuel-and-energy-related activities (not included in Scope 1 or 2) by totalling activity data for each Scope 1 fuel type and electricity consumption by country. These totals were multiplied by their relevant specific emission factors from UK DEFRA / DECC 2017 Conversion Factors for Company Reporting. UK DEFRA factors were used since there are no equivalent factors within the US (e.g. US EPA) which provide life cycle or well-to-tank (WTT) factors for fuels consumed or emissions associated with electricity generation and transmission and distribution. GWPs are from the IPCC (2007) Fourth Assessment Report. Percentage of emissions calculated using data obtained from suppliers or value chain partners 0 Please explain These data points reflect our 2020 emissions and do not use supplier primary data. Upstream transportation and distribution Evaluation status Relevant, calculated Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 51 Metric tonnes CO2e 2,080,000 Emissions calculation methodology Target’s retail products supplied by China are transported to the US east and west coasts by sea freight. There are three legs to this transportation: initially products are consolidated on the ground in China and then transported by truck to the port; and then finally shipped to the US by sea. Calculations were completed by Target for each of these three legs as follows: Field Consolidation: Target considered points of origin for field consolidation (multi-stop pick-ups). The truck 100 These data points reflect our 2020 emissions. Load volume is from historical data. Distance is estimated average distance we consider could cover 80% of the jobs. The distances are scaled up for a full year and then multiplied by a factor of 1.467 kg CO2 per vehicle-mile (source: EPA). This only covers CO2 emissions. Fuel & LNG Truck: Target used total distance (km) for the LNG truck (only used the origins) and multiplied it by an emissions factor of 0.23 g CO2 per km and similarly, the same total distance was used and multiplied by 1.02 kg CO2 per km. The truck load volume is from historical data and distance is estimated average distance and covers 80% of all jobs. Emission factors were sources from Nike. This only covers CO2 emissions. Container Utilization: Target’s sea container transport from China to US are allocated by a general percentage allocation of 65% of shipments to the US West Coast (USWC) and 35% to US East Coast (USEC). Total kg CO2 was calculated using the distance traveled (km) to each US coast was then multiplied by an appropriate 2015 BSR sourced emissions factors: 0.118 kg CO2 per FEU-km for USWC and 0.158 kg CO2 per FEU-km for USWC. The reason why all of Asia is considered is because a large portion of volume is from Asia. For domestic transportation, four modes of transportation were evaluated: air, intermodal, less than a truck load, and full truck load. For each mode, distance traveled by product in miles was multiplied by product mass (short ton) for each trip segment. The sum of this product (ton-mile) by mode was multiplied by appropriate 2018 EPA emission factors for product transportation to provide associated GHG emissions. Domestic transportation emissions and emissions from international transportation by sea were summed for a total Scope 3 GHG impact for Target's upstream transportation and distribution activities. Percentage of emissions calculated using data obtained from suppliers or value chain partners 0 Please explain These data points reflect our 2020 emissions. Waste generated in operations Evaluation status Relevant, calculated Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 52 Metric tonnes CO2e 269,000 Emissions calculation methodology Tonnage of waste generated by treatment type of waste (e.g., recycling, incineration, landfill, etc.) may be used to calculate emissions from waste using methodologies and emission factors from the EPA's Waste Reduction 0 These data points reflect our 2020 emissions and do not use supplier primary data. Model (WARM), version released March 2020. Emissions factors are used directly from WARM with recycling emission factors covering transportation emissions only. This model bases its emissions calculations on a life-cycle analysis, including emissions from the long-term decomposition of waste in a landfill and upstream sources/sinks. GWPs are from the IPCC (2007) Fourth Assessment Report. Percentage of emissions calculated using data obtained from suppliers or value chain partners 0 Please explain These data points reflect our 2020 emissions and do not use supplier primary data. Business travel Evaluation status Relevant, calculated Metric tonnes CO2e 4,000 Emissions calculation methodology Target's passenger miles on commercial airlines was equivalent to 1,623 MT C02e in 2020. Emissions factors from U.S. EPA Climate Leaders Business Travel Module were used in these calculations. GWPs are from the IPCC Fourth Assessment Report. Radiative forcing 100 These data points reflect our 2020 emissions adjustment to the airline travel emissions were not applied. This indirect GHG emissions data only includes corporate employee air travel. Gases included in the calculation include: CO2, CH4 and N2O Target also has spend data for employee mileage reimbursement from business travel via car. This total spend was multiplied by Carnegie Mellon EE I/O factor for "travel arrangement and reservation services". This result was added to the verified business air travel for total emission from business travel to get a total of 4,000 C02e. Percentage of emissions calculated using data obtained from suppliers or value chain partners 100 Please explain These data points reflect our 2020 emissions Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 55 percent of electric shave items). Estimates of the lifetime energy use using the wattage data provided were multiplied by estimated annual hours, and in some cases a standby Wattage is added. Wattage data by merchandise type was footprinted due to the inability to reasonably generate ‘usage profiles’ by class type. Products with ‘no wattage data’ available, were footprinted by class, and assigned a basic high/medium/low footprint to these products. Store-specific utility emissions factors were layered on top of the wattage information, to arrive at a more accurate total emissions estimation based on where products are being used. The assumption was made that energy consuming products were used in the same grid as the store they were purchased from. GWPs are from the IPCC Fourth Assessment Report Percentage of emissions calculated using data obtained from suppliers or value chain partners 0 Please explain These data points reflect our 2020 emissions and do not use supplier primary data. End of life treatment of sold products Evaluation status Relevant, calculated Metric tonnes CO2e 3,300,000 Emissions calculation methodology Each product sold was allocated with a weight and material type. An average for Department/Division/Class was used if this information was not available. The material weight was multiplied by an appropriate US EPA WARM Emission Factor (version released March 2020) – that is weighted by waste destination (based on US EPA research into waste destinations) to calculate tonnes of CO2e per tonne of material disposed, by destination and material. GWPs are from the IPCC (2007) Fourth Assessment Report. Percentage of emissions calculated using data obtained from suppliers or value chain partners 0 Please explain These data points reflect our 2020 emissions and do not use supplier primary data. Downstream leased assets Evaluation status Not relevant, explanation provided Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 56 Please explain Target does not lease any significant number of assets to other tenants that are not already included in Target's Scope 1 and 2 inventory under the operational control approach. Franchises Evaluation status Not relevant, explanation provided Please explain Target does not operate franchises Investments Evaluation status Not relevant, explanation provided Please explain No investments made in 2020 that are not already captured in Scope 1 or Scope 2 Other (upstream) Evaluation status Not evaluated Please explain No other upstream to be provided. Other (downstream) Evaluation status Not evaluated Please explain No other downstream to be provided. C6.7 (C6.7) Are carbon dioxide emissions from biogenic carbon relevant to your organization? No C6.10 (C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unit currency total revenue and provide any additional intensity metrics that are appropriate to your business operations. Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 57 Intensity figure 0.0062 Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e) 1,883,429 Metric denominator square foot Metric denominator: Unit total 303,792,239 Scope 2 figure used Market-based % change from previous year 18.7 Direction of change Decreased Reason for change This decrease is consistent with the absolute reduction in scope 1 & 2 emissions. As described in table C7.9a Target saw a reduction in absolute emissions as a result of increased use of renewable electricity and energy efficiency investments. Intensity figure 20.1 Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e) 1,883,429 Metric denominator unit total revenue Metric denominator: Unit total 93,561 Scope 2 figure used Market-based % change from previous year 31.6 Direction of change Decreased Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 60 C7.9a (C7.9a) 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. Change in emissions (metric tons CO2e) Direction of change Emissions value (percentage) Please explain calculation Change in renewable energy consumption 310,832 Decreased 16.5 Reductions from the increase in Target’s retired RECs total from 2019 to 2020 Other emissions reduction activities 25,178 Decreased 1.34 Estimate of reduced emissions resulting from energy efficiency investments Divestment 0 No change 0 There is no change noted at this time. Acquisitions 0 No change 0 There is no change noted at this time. Mergers 0 No change 0 There is no change noted at this time. Change in output 0 No change 0 There is no change noted at this time. Change in methodology 0 No change 0 There is no change noted at this time. Change in boundary 0 No change 0 There is no change noted at this time. Change in physical operating conditions 0 No change 0 There is no change noted at this time. Unidentified 79,010 Decreased 4.2 Target saw additional emissions reductions outside of increased energy efficiency and renewable energy efforts. This reduction is likely due to a combination of changes in energy consumption due to weather, operating hours, reduction in the CO2e intensity of electricity supplied by Target’s Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 61 utilities, improved efficiencies outside of the direct energy efficiency investment program, and other sources. The 79010 value in this row is the difference of the absolute change between 2020 and 2019 Scope 1 and 2 inventories (415021) and the measured energy efficiency value (25178) and renewable energy project emission value (310832) removed. Other 0 No change 0 There is no change noted at this time. C7.9b (C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure? Market-based C8. Energy C8.1 (C8.1) What percentage of your total operational spend in the reporting year was on energy? More than 0% but less than or equal to 5% C8.2 (C8.2) Select which energy-related activities your organization has undertaken. Indicate whether your organization undertook this energy- related activity in the reporting year Consumption of fuel (excluding feedstocks) Yes Consumption of purchased or acquired electricity Yes Consumption of purchased or acquired heat Yes Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 62 Consumption of purchased or acquired steam Yes Consumption of purchased or acquired cooling Yes Generation of electricity, heat, steam, or cooling Yes C8.2a (C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh. Heating value MWh from renewable sources MWh from non- renewable sources Total (renewable and non- renewable) MWh Consumption of fuel (excluding feedstock) HHV (higher heating value) 0 1,489,578 1,489,578 Consumption of purchased or acquired electricity 686,449 3,076,847 3,763,296 Consumption of purchased or acquired heat 0 0 0 Consumption of purchased or acquired steam 0 11,496 11,496 Consumption of purchased or acquired cooling 0 14,586 14,586 Consumption of self- generated non-fuel renewable energy 124,349 124,349 Total energy consumption 810,799 4,592,507 5,403,306 C8.2b (C8.2b) Select the applications of your organization’s consumption of fuel. Indicate whether your organization undertakes this fuel application Consumption of fuel for the generation of electricity Yes Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 65 C8.2d (C8.2d) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in the reporting year. Total Gross generation (MWh) Generation that is consumed by the organization (MWh) Gross generation from renewable sources (MWh) Generation from renewable sources that is consumed by the organization (MWh) Electricity 320,782 124,349 320,782 124,349 Heat 0 0 0 0 Steam 0 0 0 0 Cooling 0 0 0 0 C8.2e (C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts that were accounted for at a zero emission factor in the market-based Scope 2 figure reported in C6.3. Sourcing method Other, please specify (Off-grid energy consumption from an on-site installation or through a direct line to an off-site generator owned by another company ) Low-carbon technology type Solar Country/area of consumption of low-carbon electricity, heat, steam or cooling United States of America MWh consumed accounted for at a zero emission factor 124,349 Comment Onsite Solar Sourcing method Power purchase agreement (PPA) with a grid-connected generator with energy attribute certificates Low-carbon technology type Wind Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 66 Country/area of consumption of low-carbon electricity, heat, steam or cooling United States of America MWh consumed accounted for at a zero emission factor 574,083 Comment RECs from Target’s two operating virtual power purchase agreements: Stephen’s Ranch Wind Farm and Solomon Forks Wind Farm. Sourcing method Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates Low-carbon technology type Solar Country/area of consumption of low-carbon electricity, heat, steam or cooling United States of America MWh consumed accounted for at a zero emission factor 29,189 Comment RECs from Target’s active solar green tariff agreements with Xcel Energy - Colorado and Georgia Power. Sourcing method Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates Low-carbon technology type Wind Country/area of consumption of low-carbon electricity, heat, steam or cooling United States of America MWh consumed accounted for at a zero emission factor 12,750 Comment RECs from Target’s green tariff with Puget Sound Energy and Direct Energy LLC: VA 100% RE Supply Sourcing method Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 67 Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates Low-carbon technology type Biomass Country/area of consumption of low-carbon electricity, heat, steam or cooling United States of America MWh consumed accounted for at a zero emission factor 31,403 Comment RECs from Target’s green tariff with Direct Energy LLC: VA 100% RE Supply Sourcing method Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates Low-carbon technology type Hydropower Country/area of consumption of low-carbon electricity, heat, steam or cooling United States of America MWh consumed accounted for at a zero emission factor 39,025 Comment RECs from Target’s green tariff with Direct Energy LLC: VA 100% RE Supply Sourcing method Other, please specify Grid Mix of Renewable Electricity Low-carbon technology type Other, please specify Solar PV, Wind, Hydropower, Nuclear, Biomass Country/area of consumption of low-carbon electricity, heat, steam or cooling United States of America MWh consumed accounted for at a zero emission factor 519,987 Comment Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 70 GHGVerificationStatement Target 2020_Final.pdf Page/ section reference 2 Relevant standard ISO14064-3 Proportion of reported emissions verified (%) 100 C10.1b (C10.1b) Provide further details of the verification/assurance undertaken for your Scope 2 emissions and attach the relevant statements. Scope 2 approach Scope 2 location-based Verification or assurance cycle in place Annual process Status in the current reporting year Complete Type of verification or assurance Limited assurance Attach the statement GHGVerificationStatement Target 2020_Final.pdf Page/ section reference 2 Relevant standard ISO14064-3 Proportion of reported emissions verified (%) 100 Scope 2 approach Scope 2 market-based Verification or assurance cycle in place Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 71 Annual process Status in the current reporting year Complete Type of verification or assurance Limited assurance Attach the statement GHGVerificationStatement Target 2020_Final.pdf Page/ section reference 2 Relevant standard ISO14064-3 Proportion of reported emissions verified (%) 100 C10.1c (C10.1c) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevant statements. Scope 3 category Scope 3: Business travel Verification or assurance cycle in place Annual process Status in the current reporting year Complete Type of verification or assurance Limited assurance Attach the statement GHGVerificationStatement Target 2020_Final.pdf Page/section reference 2 Relevant standard ISO14064-3 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 72 Proportion of reported emissions verified (%) 100 C10.2 (C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5? No, but we are actively considering verifying within the next two years C11. Carbon pricing C11.1 (C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)? No, and we do not anticipate being regulated in the next three years C11.2 (C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period? Yes C11.2a (C11.2a) Provide details of the project-based carbon credits originated or purchased by your organization in the reporting period. Credit origination or credit purchase Credit purchase Project type Forests Project identification Mississippi Alluvial Valley Reforestation, USA Cordillera Azul Forest Protection, Peru Verified to which standard Not yet verified Number of credits (metric tonnes CO2e) 3,304 Number of credits (metric tonnes CO2e): Risk adjusted volume Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 75 % total procurement spend (direct and indirect) 0 % of supplier-related Scope 3 emissions as reported in C6.5 57 Rationale for the coverage of your engagement All of Target’s vendor relationships are guided by the Vendor Code of Conduct, which includes our Standards of Vendor Engagement (SOVE). We require all vendors, suppliers, third-party sellers, manufacturers, contractors, subcontractors and their agents to abide by Target’s Standards of Vendor Engagement (SOVE). Our SOVE covers topics that pertain to energy and climate, including specific supplier standards in energy management, emissions to air, as well as environmental management and monitoring systems. The Higg FEM assessment is required, annually as a part of our responsible sourcing & sustainability program, from all manufacturing locations that produce Target owned brand products (except food & FDA regulated), national brand products where Target is the importer of record, as well as in apparel tier 2 factories. Responsible Sourcing & Sustainability supplier onboarding includes climate and energy standards and reviews our requirements on setting science-based targets, reporting to the annual CDP climate questionnaire and completing the Higg FEM self-assessment. Impact of engagement, including measures of success Target monitors our SOVE through our Responsible Sourcing audit. In 2020 Higg FEM adoption rate was 78%, and this marks a 30% growth in our Higg FEM adoption rate relative to 2019. In 2020, we completed on boarding sessions that provided training for 100% of new suppliers that produce Target owned brands, as well as national brands where Target is the importer of record. As reported above, Target’s Standards of Vendor Engagement (SOVE) applies to 100% suppliers and enforced on suppliers accounting for 57% of our emissions within our supply chain. To calculate the % of suppliers impacted, both retail and non-retail spend suppliers were included as the total number suppliers. Comment N/A Type of engagement Innovation & collaboration (changing markets) Details of engagement Run a campaign to encourage innovation to reduce climate impacts on products and services % of suppliers by number 2 % total procurement spend (direct and indirect) 0 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 76 % of supplier-related Scope 3 emissions as reported in C6.5 20.1 Rationale for the coverage of your engagement Target has developed a food and beverage supplier engagement strategy and activated agricultural initiatives with our food and beverage suppliers. Target’s emissions reductions strategy is prioritized to focus on our biggest emission hotspots in the supply chain and create emission reduction opportunities to mitigate impacts, toward a zero- carbon future. Agricultural and natural raw material sources remain to be an opportunity for us given the significant contribution of our agricultural supply chain toward the overall scope 3 emissions footprint. Thus, we have modeled a robust strategy and interventions focused on food and beverage suppliers. Impact of engagement, including measures of success We have estimated GHG footprints for each of our suppliers in the food and beverage business to identify priority categories and suppliers to engage with on initiatives that reduces their footprints tied to our upstream agricultural activities. Suppliers in scope for this strategy account for 20.1% of our scope 3 purchased goods and services emissions. As a specific application of this strategy, we have launched new initiatives within our agricultural supply chain. One example is a project that was launched in partnership with our supplier Cargill as well as McDonalds and the Nature Conservancy to support Nebraska farmers to advance proven soil health practices to help mitigate greenhouse gas emissions, while helping farmers adapt to climate change implications. Overall, this supplier intervention has the potential to sequester 150,000 metric tons of carbon dioxide over the course of the project to displace emissions in Target’s beef product associated GHG footprint. Comment N/A Type of engagement Innovation & collaboration (changing markets) Details of engagement Other, please specify manufacturing performance improvement programs to implement energy and carbon management within key supplier facilities) Run a campaign to encourage innovation to reduce climate impacts on products and services % of suppliers by number 4.8 % total procurement spend (direct and indirect) 0 % of supplier-related Scope 3 emissions as reported in C6.5 12 Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 77 Rationale for the coverage of your engagement Target has developed an emission reduction strategy that prioritizes our biggest emission hotspots within the supply chain to create emission reduction opportunities. Given that manufacturing remains one of our biggest emission contributions within apparel and home textile, we have developed a manufacturing sustainability strategy to partner with our tier 1 and 2 supply chain. Two partnerships have been particularly successful in fostering sustainable energy use in our textile and apparel supply chain: the Apparel Impact Institute’s Clean by Design (CbD) program and the International Finance Corporation’s (IFC) Vietnam Improvement Program (VIP) and Cambodia Improvement Program (CIP). Every year, we work alongside our supply chain partner factories to participate in manufacturing performance improvement programs. Factories are selected based on their manufacturing emission footprint, using an opportunity assessment tool built on Higg FEM data. In 2020, we expanded our programming with Aii with the introduction of the Carbon Leadership Program that allows our strategic suppliers to set carbon targets at the factory level. Impact of engagement, including measures of success Our manufacturing performance improvement program has grown in scale, both spatially and in maturity. While we already had ongoing programming in China, Vietnam and Cambodia, program expansion in 2020 included Pakistan. In 2020, we introduced the Carbon Leadership Program (CLP), a long-term partnership with our strategic business partner facilities to set carbon targets and drive action to achieve them in partnership with Target and Aii program partners. We had 100% program participation commitment with our nominated supplier factories this year. We activated more advanced program offerings like Clean by Design Plus and CLP in 2020, with advanced energy efficiency opportunities and solar panel installations with 4 factories within VIP alongside our suppliers. In 2020, we completed a Aii program that accounted for 6.3% energy savings relative to baseline, and total energy savings of 100,119,44KwH/yr. We are awaiting figures on energy savings when the current round of programs concludes. Comment Target is a founding and a strategic supporter of the Apparel Impact Institute (Aii). Through the mill program initiative of Aii we identify practical, cost-saving opportunities for our manufacturers to increase operational efficiencies in their factories, while reducing resource usage, waste and emissions. Target contributes towards the program cost for a factory to complete the program and offers program monitoring and strategic guidance. Target also collaborates with International Financial Corporation’s (IFC’s) Vietnam Improvement Program (VIP) which focuses on improving manufacturing process efficiencies. We expanded this program with IFC to Cambodia in 2019 with the Cambodia Improvement Program (CIP). Target contributes to the program cost for a given factory to complete CIP or VIP programs and provides program monitoring and strategic guidance. C12.1b (C12.1b) Give details of your climate-related engagement strategy with your customers. Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 80 is aware of our clean energy goals and procurement efforts that deliver locally on our mission to help all families discover the joy of everyday life. https://www.azcentral.com/story/money/business/energy/2020/08/04/salt-river-project- solar-plant-deal/5574753002/ Type of engagement Education/information sharing Details of engagement Share information about your products and relevant certification schemes (i.e. Energy STAR) % of customers by number 100 % of customer - related Scope 3 emissions as reported in C6.5 0 Please explain the rationale for selecting this group of customers and scope of engagement Target aims to engage our guests by sharing information about our products and progress toward achieving public-facing sustainability goals. Target coordinates with utility partners to share information and to engage with our guests within the utility service territory, informing them of the strides Target is taking to invest in and source renewable energy and reduce our emissions locally. Impact of engagement, including measures of success Target works with electric utilities across the country to promote LED light bulbs through the utilities’ energy efficiency programs. On a monthly basis Target runs promotions in over 500 stores in conjunction with utilities. Target works with Utility Partners to offer Instant discounts at the shelf on qualified ENERGY STAR LED products throughout the entire year. In 2020, Target partnered with 59 Utility programs in 650 Target stores. Stores with a Utility discount at the shelf, on average, sell over 30% better. Target offers each Utility Partner a 6x18 vertical in store sign to help educate the guest in aisle. On Social Media we ran a Facebook ad partnering with the ConEd of NY to offer a final retail of $1.99 on all qualified ENERGY STAR LED products for one month. We saw a 4x lift in point-of-sale Unit Sales. Not all lightbulb applications are eligible for ENERGY STAR certification. We offer the Target guests a full assortment of products that include incandescent, LED, Vintage and Deco bulbs with a good, better, and best strategy to optimize guest shopping experience and category growth. We currently offer 70 LED items that are ENERGY STAR certified (an increase of 18skus compared to 2019). As we have products that become certified, we replace non ENERGY STAR models with new certified generations. In November 2020 Puget Sound Energy utility issued a public announcement of our Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 81 offtake from the Green Direct Skookumchuck Wind Energy project in Washington, a utility green tariff that went live in 2020. Coordinating with our utility partners to share information on their website and to media outlets draws local and national attention: our guest in the utility service territory is aware of our clean energy goals and procurement efforts that deliver locally on our mission to help all families discover the joy of everyday life. https://www.pse.com/en/green-options/Renewable-Energy-Programs/green-direct C12.3 (C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issues through any of the following? Direct engagement with policy makers Trade associations Other C12.3a (C12.3a) On what issues have you been engaging directly with policy makers? Focus of legislation Corporate position Details of engagement Proposed legislative solution Clean energy generation Support In fiscal year 2020, Target directly engaged in clean energy policies that included signing with other renewable energy buyers a joint letter to the Biden Administration proposing a Federal Clean Energy Policy and urging immediate action to decarbonize the grid for all. We joined with the Renewable Energy Buyers Alliance and members such as Cargill, General Motors, Johnson & Johnson, PepsiCo, Nestle, Unilever, and The Walt Disney Company on the letter, which attracted national news coverage. The policies Target advocated for in 2020 were increased clean energy options for businesses and customers in regulated electric markets, the expansion of organized electric markets, and fair rates for solar energy production. Most of these policies are determined at state regulatory proceedings in the United States. Clean energy generation Support Target contributed to regulatory comments filed jointly with Commercial Customers with Clean Energy Goals at the Minnesota Public Utilities Commission, including Aveda, University of MN, City of Minneapolis, and Uponor, to support economic dispatch of utility generation resources The policies Target advocated for in 2020 were increased clean energy options for businesses and customers in regulated electric markets, the expansion of organized electric markets, and fair rates for solar energy production. Most of these Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 82 that can lower electricity costs for all Minnesota customers, reduce greenhouse gas (GHG) emissions, expand renewable energy development through more accurate price signals, and to maintain reliability of Minnesota’s electricity systems. policies are determined at state regulatory proceedings in the United States. Clean energy generation Support with minor exceptions Target signed a business-coalition letter to South Carolina legislature in 2019 supporting the study of expanding energy markets in the Southeast US, joining a stakeholder advisory group in 2020 arising out of the Energy Freedom Act to further discuss the matter and to thoroughly review competitive market mechanisms that would ultimately benefit residential, commercial, and industrial customers in South Carolina. The policies Target advocated for in 2020 were increased clean energy options for businesses and customers in regulated electric markets, the expansion of organized electric markets, and fair rates for solar energy production. Most of these policies are determined at state regulatory proceedings in the United States. Clean energy generation Support with minor exceptions Target led a group of Minnesota businesses, cities, and Universities in response to a Minnesota Public Utilities Commission docket that proposed changes to how behind-the- meter solar energy is compensated. Over a two-year effort we successfully defended the PV demand credit for demand-metered customers, which helps the financial case for Target and other commercial customers to expand solar energy investment in our home state of Minnesota. The effort extended into 2020 and led to further 2020 advocacy to expand the credit to the other Minnesota Investor-Owned Utilities at the Minnesota Legislature. The policies Target advocated for in 2020 were increased clean energy options for businesses and customers in regulated electric markets, the expansion of organized electric markets, and fair rates for solar energy production. Most of these policies are determined at state regulatory proceedings in the United States. Clean energy generation Support In 2020, Target filed comments concerning a Minnesota Public Utilities Commission docket to support establishing a favorable Time of Use utility rate for Xcel Energy, applicable to Commercial & Industrial customers. The policies Target advocated for in 2020 were increased clean energy options for businesses and customers in regulated electric markets, the expansion of organized electric markets, and fair rates for solar energy Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 85 the CRS Clean Energy Accounting Project (CEAP) to identify consensus areas and to quantify best practices for accounting for standard delivery utility renewable energy. This led to the drafting of a CRS-drafted white paper, intended to serve as a credible and consistent industry standard for accounting for utility renewable electricity and related claims and reporting, accepted by entities including CDP, The Climate Registry, and RE100. How have you influenced, or are you attempting to influence their position? Target is active in the EEI customer advisory group. Trade association Apparel Impact Institute Is your position on climate change consistent with theirs? Consistent Please explain the trade association’s position Apparel Impact Institute is a technical impact solution platform that brings brands, manufacturers and donors towards environmental infinitives within the apparel and footwear industry. Target is a founding and a strategic collaborator of Aii. As an organization, Aii scales manufacturing impact programs for greater operational efficiencies in resource and energy. In terms of energy solutions, Aii offers manufacturers the opportunity to scale their performance improvements as a continuous improvement framework, ranging from simple to complex solutions. MIll impact program of Aii span across a number of countries such as China, Vietnam, Taiwan and India. How have you influenced, or are you attempting to influence their position? Target has representation within Apparel Impact Institute’s board of directors, and on the Apparel Impact Roundtable (AIR). Target’s contributions include providing expertise on Aii's vision and strategic direction, as well as funding beyond membership. C12.3e (C12.3e) Provide details of the other engagement activities that you undertake. Target is also a member of the U.S. Environmental Protection Agency’s GreenChill Partnership, which promotes the use of low-GHG potential refrigerants. In 2019, Target had three stores certified at the silver level, 24 at the gold level, and two at the platinum level. Target is a signatory to the UNFCCC Fashion Charter that strives to develop, implement and enhance climate action in the fashion industry. Our work has focused on both policy action and manufacturing engagements within the charter. In 2020, Target endorsed a letter to the Prime Minister of Vietnam alongside a group of UNFCCC Fashion Industry Charter signatory brands, to influence the acceleration of Vietnam’s Direct Power Purchase Agreement (DPPA) program launch. Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 86 C12.3f (C12.3f) 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? Target’s Energy & Sustainability, Government Affairs, and Corporate Responsibility teams have a standing quarterly meeting to align on energy and climate-related activities and to ensure Target’s Government Affairs representatives are informed of Target’s public commitments and key strategic initiatives. These quarterly meetings are in addition to near-weekly informal check ins on active public policy initiatives. Target strives to be an active participant in the political process in a manner that is transparent and supports our business interests. Across a range of issues, we strive to be part of the solution, supporting international, national, regional and local policies that are economically, environmentally and socially sustainable for our company, our guests and the communities where we operate. On issues of the highest priority, including issues related to climate change, Target’s Energy & Sustainability, Government Affairs, Responsible Sourcing & Sustainability and Corporate Responsibility teams have a standing quarterly meeting to align on energy and climate-related activities and to ensure Target’s Government Affairs representatives are informed of Target’s public commitments and key strategic initiatives. These quarterly meetings are in addition to near-weekly informal check ins on active public policy initiatives. We belong to a broad range of partnerships, coalitions, industry groups and trade associations that advocate for legislation and regulation on behalf of their members. Target’s participation in the industry associations is cross-functional. This assures a consistent internal and external policy and messaging that is aligned with our overall climate change strategy. Working with others through such organizations enables us to better leverage our resources on important issues, and to develop and promote policies that could have far-reaching benefits for our company, but also our industry and society as a whole. Target works with various groups including those listed in C12.3c and 12.3e, to drive U.S. state and federal policies that support climate action, such as increased access to renewable energy. When deciding whether to join or maintain membership in a trade association, that trade association’s position and activity on climate change is a factor Target considers. Target has made multiple public statements for climate change including signing the We Are Still In and the We Are All In letters, committing to uphold the Paris Climate Change Agreement. Target also signed onto the We Mean Business letter for a U.S. NDC of at least 50%. In addition, our CEO committed to join the Business Ambition for 1.5 Degrees as part of our commitment to become a net zero enterprise by 2040. C12.4 (C12.4) 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). Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 87 Publication In voluntary sustainability report Status Complete Attach the document 2020_corporate_responsibility_report.pdf Page/Section reference 27, 45, 46 Content elements Governance Strategy Emissions figures Emission targets Comment Publication In voluntary communications Status Complete Attach the document Target Climate_Alt Energy Mag.pdf Page/Section reference 2 Content elements Governance Strategy Emission targets Comment Publication In voluntary communications Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 90 protect the people, communities and ecosystems all along our value chain. As we work to meet these commitments, we are guided by a strategy that is an expression of our purpose and values of inclusivity, optimism, connection, inspiration and drive, as well as ethics and delivering a great experience for our guests. To help all families discover the joy of everyday life—that’s Target’s purpose and there are countless ways we live it. No matter how our guests choose to shop with us—whether in-store, through our digital channels or both—we aim to make their experience easy and inspiring, at an only-at-Target value. We have stores in all 50 U.S. states and the District of Columbia, with team members who reflect our communities and are passionate about bringing joy to our guests, day in and day out. We work together as a team and stand together with our communities, in good times and hard times, striving to always be a source of convenience, continuity and joy. Since 1946, Target has given 5 percent of its profit to communities. For more information about Target’s commitment to corporate responsibility, visit https://corporate.target.com/corporate- responsibility/. Target considers multiple factors in evaluating risk. Target considers risks substantive when they are assessed to be high or critical using proprietary criteria. Importantly, issues deemed material for the purposes of this report may not be considered material for SEC reporting purposes. Target’s responses to this questionnaire contains forward-looking statements, which are based on our current assumptions and expectations. These statements are typically accompanied by the words “expect,” “may,” “could,” “believe,” “would,” “might,” “anticipates” or similar words. The principal forward-looking statements in this report include our sustainability goals, commitments and programs; our business plans, initiatives and objectives; our assumptions and expectations; the scope and impact of corporate responsibility risks and opportunities; and standards and expectations of third parties. All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although we believe there is a reasonable basis for the forward looking statements, our actual results could be materially different. The most important factors that could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors included in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended January 30, 2021, which should be read in conjunction with the forward looking statements in this report. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement. Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 91 SC0.1 (SC0.1) What is your company’s annual revenue for the stated reporting period? Annual Revenue Row 1 93,561 SC0.2 (SC0.2) Do you have an ISIN for your company that you would be willing to share with CDP? Yes SC0.2a (SC0.2a) Please use the table below to share your ISIN. ISIN country code (2 letters) ISIN numeric identifier and single check digit (10 numbers overall) Row 1 US 87612E1064 SC1.1 (SC1.1) Allocate your emissions to your customers listed below according to the goods or services you have sold them in this reporting period. SC1.2 (SC1.2) Where published information has been used in completing SC1.1, please provide a reference(s). SC1.3 (SC1.3) What are the challenges in allocating emissions to different customers, and what would help you to overcome these challenges? Allocation challenges Please explain what would help you overcome these challenges Other, please specify N/A SC1.4 (SC1.4) Do you plan to develop your capabilities to allocate emissions to your customers in the future? Target Corporation CDP Climate Change Questionnaire 2021 Tuesday, September 21, 2021 92 SC2.1 (SC2.1) Please propose any mutually beneficial climate-related projects you could collaborate on with specific CDP Supply Chain members. SC2.2 (SC2.2) Have requests or initiatives by CDP Supply Chain members prompted your organization to take organizational-level emissions reduction initiatives? SC4.1 (SC4.1) Are you providing product level data for your organization’s goods or services? Submit your response In which language are you submitting your response? English Please confirm how your response should be handled by CDP I am submitting to Public or Non- Public Submission Are you ready to submit the additional Supply Chain questions? I am submitting my response Investors Customers Public No, I will submit the Supply Chain questions later. Please confirm below I have read and accept the applicable Terms.