climate change 2015 information request target corporation...packaging (3) sustainable products...

5/17/2016 Climate Change 2015 Information Request Target Corporation

https://www.cdp.net/sites/2015/20/18320/Climate%20Change%202015/Pages/DisclosureView.aspx 1/24

Climate Change 2015 Information RequestTarget Corporation

Module: Introduction

Page: Introduction

CC0.1IntroductionPlease give a general description and introduction to your organization.

Minneapolisbased Target Corporation (NYSE: TGT) serves guests at 1,790 stores in the United States and at Target.com. Since 1946, Target hasgiven 5 percent of its profit through community grants and programs; today, that giving equals more than $4 million a week. For more informationabout Target’s commitment to corporate responsibility, visit Target.com/corporateresponsibility.

CC0.2Reporting YearPlease state the start and end date of the year for which you are reporting data.The current reporting year is the latest/most recent 12month period for which data is reported. Enter the dates of this year first.We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the currentreporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not applyif you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give thedates of those reporting periods here. Work backwards from the most recent reporting year.Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosedSat 01 Feb 2014 Sat 31 Jan 2015

CC0.3Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward toassist you in completing your response.

Select countryUnited States of AmericaCanada

CC0.4Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency.

USD($)

CC0.6ModulesAs part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobileor auto component manufacture subindustries, companies in the oil and gas subindustries, companies in the information technology andtelecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to themain questionnaire.If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appearbelow but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected] you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. Ifyou wish to view the questions first, please see https://www.cdp.net/enUS/Programmes/Pages/Morequestionnaires.aspx.

Further Information

Module: Management

Page: CC1. Governance

CC1.1Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/subset of the Board or other committee appointed by the Board

CC1.1aPlease identify the position of the individual or name of the committee with this responsibility

The Corporate Responsibility Committee is comprised of the following Board Members: Kenneth L. Salazar (Chair), Calvin Darden, Roxanne S.

mailto:[email protected]

https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx



Austin, Derica W. Rice, and Mary E. Minnick.

The Corporate Responsibility Committee is a subset of Target’s Board of Directors that meets biannually to press the Corporation toward being anexemplary citizen by approving policy and evaluating the performance of the Corporation in its interactions with the environments in which it doesbusiness. This includes Target’s corporate social responsibility programs, sustainability initiatives and climate change.

CC1.2Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2aPlease provide further details on the incentives provided for the management of climate change issues

Who is entitled to benefitfrom these incentives?

The type ofincentives

Incentivizedperformanceindicator

Comment

Executive officer Monetaryreward

Progress toward the carbon reduction goal is included in individual Goals andObjectives up through the Executive Vice President level; performance against Goalsand Objectives is a key factor in annual performance reviews and compensationadjustments.

Energy managersRecognition(nonmonetary)

Awards are presented during the annual Target Sustainability Forum to recognizeachievements in sustainability including carbon reduction and energy optimization forenvironment and sustainability managers.

Environment/Sustainabilitymanagers

Recognition(nonmonetary)

Awards are presented during the annual Target Sustainability Forum to recognizeachievements in sustainability including carbon reduction and energy optimization forenvironment and sustainability managers.

Further Information

Page: CC2. Strategy

CC2.1Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multidisciplinary company wide risk management processes

CC2.1aPlease provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of monitoring To whom are resultsreported?

Geographical areasconsidered

How far into the future are risksconsidered? Comment

Sixmonthly or morefrequently Senior manager/officer United States and Canada 3 to 6 years

CC2.1bPlease describe how your risk and opportunity identification processes are applied at both company and asset level

The Corporate Sustainability team and the Energy and Sustainability team coordinate Target's climate change strategy, identify key initiative areas,assess risks and opportunities, and coordinate the company’s response to climate change. The scope of the risks and opportunities consideredinclude but are not limited to changes in regulation (company and asset level), policy (company and asset level), building codes (asset level), guestbehavior (company level), reputation (company level), impact to carbon reduction goal (company level), and extreme weather conditions (assetlevel). The Corporate Sustainability team and Energy and Sustainability team work closely with our Corporate Command Center and ReputationManagement team to monitor these risks. The Reputation Management team also works closely with our Corporate Fusion Center to monitor risks atthe company level on a daily basis. In addition, the Corporate Command Center monitors risks at the asset level on a daily basis.

CC2.1cHow do you prioritize the risks and opportunities identified?

The Sustainability team works closely with partners from other divisions of the company to develop initiatives, monitor and report progress on therisks and opportunities identified above. These partners are brought together in five crossfunctional Focus Teams that bring together more than 100partners from across the company on a regular basis. The Focus Teams include (1) Sustainable Living (2) Sustainable Products Products andPackaging (3) Sustainable Products Supply Chain (4) Smart Development, and (5) Efficient Operations. The teams are led by a director levelrepresentative from outside the Sustainability team, and are supported by a member of the Sustainability team. The teams report their progress oninitiatives, risk mitigation, and opportunities at both the company and asset level on a quarterly basis to the Sustainability Leadership Council. TheSustainability Leadership Council consists of Vice President or Senior Vice President level representatives from Marketing, Merchandising, TargetProperties, Distribution (Transportation), and Stores.

CC2.2Is climate change integrated into your business strategy?

Yes

CC2.2a



Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process

In December 2010, Target established four sustainability commitments and a number of goals, including carbon reduction. These commitments andgoals were established through a highly collaborative, yearlong crossfunctional process that laid the groundwork for more thorough integration ofsustainability into our business strategy across the organization. They are communicated widely, both internally and externally. A formal internalgovernance structure, the Sustainability Leadership Council has been established to ensure continuous monitoring, reporting, and improvement ofour efforts. These efforts include our emissions reduction goals.

In the short term, greenhouse gas 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 ourallocation of capital specifically for carbon reduction projects. These projects primarily include energy efficiency, as well as projects that reduce ourhigh global warming potential refrigerants. Our carbon reduction goal has increased the robustness of our existing energy management andinnovations strategy. Our formal innovation process has been designed to bring together partners in engineering, architecture, operations, energymanagement, and sustainability to identify and test new technologies or processes. Innovation funds small tests and pilots and helps make thebusiness case to implement successful projects across the chain.

We also recognize the long term impacts climate change and potential carbon regulations have on our business. We are developing processes andtechnologies that enable us to track and monitor the impact of extreme weather events on our facilities, team members, and guests. The current andevolving tools prepare us to address any possible increases in extreme weather events associated with climate change. In addition, we have begunexamining the environmental impacts embedded within our supply chain to understand our exposure to climate change within our supply chain. Ourcombination of operational efficiency, energy management, reputation management, and our evolving tools and technology provide a strategicadvantage encompassing climate change. Short term operational efficiencies enable improvements in expenses while we continue to pursue ourpublic goals to enhance our brand. The primary business decisions of our climate change strategy during 2014 focused on our continued investmentin energy efficiency and testing new technologies.

CC2.2c Does your company use an internal price of carbon?

No, and we currently don't anticipate doing so in the next 2 years

CC2.3Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Trade associationsOther

CC2.3bAre you on the Board of any trade associations or provide funding beyond membership?

No

CC2.3gPlease provide details of the other engagement activities that you undertake

Target is a member of the Environmental Protection Agency's (EPA) SmartWay transportation program, an innovative collaboration between thefreight industry and the government to reduce air pollution and greenhouse gas emissions and improve fuel efficiency through products, technology,and policy.

Target is also a member of the trade association Retail Industry Leaders Association (RILA) with representation on RILA's RSI Energy andGreenhouse Gas Emissions Committee. In addition, Target is also partners with the EPA's EnergyStar and Green Chill programs and a member of theDepartment of Energy's (DOE) Retailer Energy Alliance. These partnerships focus on operations and technologies to reduce energy and harmfulrefrigerants. Lastly, Target is participating in a multiyear research project focused on design options for products/technologies to reduce energy andassociated emissions in new and retrofitted retail stores in partnership with the Department of Energy National Laboratories along with otherretailers.

CC2.3hWhat processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climatechange strategy?

The Corporate Sustainability team and Energy and Sustainability team work closely with our Reputation Management and Corporate Fusion Centerto monitor and manage stakeholder engagement activities. This includes direct and indirect activities related to climate change.

CC2.4Would your organization's board of directors support an international agreement between governments on climate change, which seeks to limit globaltemperature rise to under two degree Celsius from preindustrial levels in line with IPCC scenarios such as RCP2.6?

No opinion

CC2.4a Please describe your board's position on what an effective agreement would mean for your organization and activities that you are undertaking to helpdeliver this agreement at the 2015 United Nations Climate Change Conference in Paris (COP 21)

Further Information

Page: CC3. Targets and Initiatives



CC3.1Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?

Intensity target

CC3.1bPlease provide details of your intensity target

ID Scope% of

emissions inscope

% reductionfrom base year Metric Base

yearNormalized baseyear emissions

Targetyear Comment

Int1 Scope1+2 100% 10% metric tonnes CO2e

per square foot 2007 .0112 2016

Int2 Scope1+2 100% 10% metric tonnes CO2e

per unit revenue 2007 46.75 2016 Normalization factor isdollars of retail sales.

CC3.1cPlease also indicate what change in absolute emissions this intensity target reflects

IDDirection of change anticipated inabsolute Scope 1+2 emissions at

target completion?

% change anticipatedin absolute Scope 1+2

emissions

Direction of change anticipated inabsolute Scope 3 emissions at

target completion?

% change anticipatedin absolute Scope 3

emissionsComment

Int1 Increase

CC3.1dFor all of your targets, please provide details on the progress made in the reporting year

ID% complete

(time)

% complete(emissions)

Comment

Int1 90% 70% Target continues to make progress toward its 2015 carbon reduction goal, primarily through investmentsin energy efficiency programs in our stores.

CC3.2Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?

No

CC3.3Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3aPlease identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)Under investigation 20To be implemented* 10 25000Implementation commenced* 5 30000Implemented* 8 26000Not to be implemented 5 15000

CC3.3bFor those initiatives implemented in the reporting year, please provide details in the table below

Activitytype

Description ofactivity

Estimatedannual CO2esavings

(metric tonnesCO2e)

Scope Voluntary/Mandatory

Annualmonetary

savings (unitcurrency asspecified inCC0.4)

Investmentrequired (unitcurrency asspecified inCC0.4)

Paybackperiod

Estimatedlifetime of

theinitiative

Comment

Energyefficiency:Buildingservices

Miscellaneouslightingconverted toLED

4500 Scope2 Voluntary 400000 1500000 410

years 610 years


Variablecondensingpressure inrefrigerantsystems

9500 Scope2 Voluntary 1600000 600000 13

years 610 years

Energyefficiency:Building

services

Subcoolerreplacement 2000 Scope

2 Voluntary 380000 590000 13years 610 years

Energy




HVAC Controlschanges 10000 Scope

2 Voluntary 1500000 1500000 13years 610 years

CC3.3cWhat methods do you use to drive investment in emissions reduction activities?

Method Comment

Dedicated budget for energy efficiency As part of our energy and carbon management program, funding for energy efficiency projects isincluded in capital planning.

Dedicated budget for other emissionsreduction activities

As part of our energy and carbon management program, funding for energy efficiency projects isincluded in capital planning.

Further Information

Page: CC4. Communication

CC4.1Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in placesother than in your CDP response? If so, please attach the publication(s)

Publication StatusPage/Sectionreference

Attach the document

In voluntarycommunications Complete 5256 https://www.cdp.net/sites/2015/20/18320/Climate Change 2015/Shared

Documents/Attachments/CC4.1/2014corporateresponsibilityreport[1].pdf

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue orexpenditure? Tick all that apply

Risks driven by changes in regulationRisks driven by changes in physical climate parametersRisks driven by changes in other climaterelated developments

CC5.1aPlease describe your inherent risks that are driven by changes in regulation

Risk driver DescriptionPotentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

We believethat one wayto addressenergy priceinflation risk isby makinginvestmentsthat willreduce ourdemand forhighcarbonenergysources overtime. Over thepast decade,we havemadesignificantinvestmentsthat havereduced ourenergyrelatedexpenditureson a prorata



Carbontaxes

Federalproposals,and/or the effortsof states toregulategreenhouse gasemissions,would impactTarget’sbusiness mostsignificantlythroughincreased pricesfor electricity andother fuels. Webelieve thatregardless ofwhat ultimateform theseregulations take– carbon tax,capandtrade,or some otherform – theultimate goal ofsuch proposalsis to promotelowcarbonenergy sourcesthrough marketpricingmechanisms thatwill correct forcost externalitiesassociated withfuel sources andprocesses thatresult ingreenhouse gasemissions.

Increasedoperationalcost

3 to 6years

Indirect(Supplychain)

About aslikely asnot

Lowmedium

Federalproposals,and/or theefforts ofstates toregulategreenhousegasemissions,would impactTarget'sbusinessmostsignificantlythroughincreasedprices forelectricity andother fuels.Based onexistingprograms weanticipate aprice ofcarbonrangingbetween $2and $20 permetric ton.Thistranslates toapproximately$6$60million inadditionalexpense.

basis. We areworking toreduce thecarbonfootprint of ourorganizationthrough twoprimarymeansenergyefficiency andrenewableenergy andwill continueto do so tomanage theserisks. Ourenergyefficiency andrenewableenergyprogramshave nearlyoffset theemissionsgeneratedthrough thecourse ofbusinessgrowth. Inaddition to ourenergyefficiencyefforts, wehave installedsolar energysystems at 37stores acrossthe UnitedStates. Atpresent, weare exploringa number ofotherrenewableenergytechnologiesand intend toexpand ourprogram overthe nextdecade as akeycomponent ofour carbonreductionstrategy.These energyefficiency andrenewableenergyinvestmentshelp us tomitigate theriskassociatedwith thepotential forrising energycostsassociatedwithincreasedlegislationincluding acarbon tax, acap and tradesystem, fueltaxes, andhigherbuildingefficiencystandards.

Between2008 and theend of 2013,Target willhave investedover $130million inenergyefficiencyretrofits andrenewableenergyprojects.Theseinvestmentsare inaddition tosignificantefficiencyimprovementsto our newstores anddistributioncenters, andbusinessprocessoptimizationprograms thatweimplementedduring theeconomicdowntown toconserveenergy.These energyefficiencyretrofitstypically havea paybackperiod of lessthan 3 years.

We believethat one way



Cap andtradeschemes

Federalproposals,and/or the effortsof states toregulategreenhouse gasemissions,would impactTarget’sbusiness mostsignificantlythroughincreased pricesfor electricity andother fuels. Webelieve thatregardless ofwhat ultimateform theseregulations take– carbon tax,capandtrade,or some otherform – theultimate goal ofsuch proposalsis to promotelowcarbonenergy sourcesthrough marketpricingmechanisms thatwill correct forcost externalitiesassociated withfuel sources andprocesses thatresult ingreenhouse gasemissions.


>6 yearsIndirect(Supplychain)


Lowmedium

Federalproposals,and/or theefforts ofstates toregulategreenhousegasemissions,would impactTarget'sbusinessmostsignificantlythroughincreasedprices forelectricity andother fuels.Based onexistingprograms weanticipate aprice ofcarbonrangingbetween $2and $20 permetric ton.Thistranslates toapproximately$6$60million inadditionalexpense.

to addressenergy priceinflation risk isby makinginvestmentsthat willreduce ourdemand forhighcarbonenergysources overtime. Over thepast decade,we havemadesignificantinvestmentsthat havereduced ourenergyrelatedexpenditureson a proratabasis. We areworking toreduce thecarbonfootprint of ourorganizationthrough twoprimarymeansenergyefficiency andrenewableenergy andwill continueto do so tomanage theserisks. Ourenergyefficiency andrenewableenergyprogramshave nearlyoffset theemissionsgeneratedthrough thecourse ofbusinessgrowth. Inaddition to ourenergyefficiencyefforts, wehave installedsolar energysystems at 37stores acrossthe UnitedStates. Atpresent, weare exploringa number ofotherrenewableenergytechnologiesand intend toexpand ourprogram overthe nextdecade as akeycomponent ofour carbonreductionstrategy.These energyefficiency andrenewableenergyinvestmentshelp us to




help us tomitigate theriskassociatedwith thepotential forrising energycostsassociatedwithincreasedlegislationincluding acarbon tax, acap and tradesystem, fueltaxes, andhigherbuildingefficiencystandards.

Fuel/energytaxes andregulations

Although Targetmoves most of itsmerchandise viathirdpartytransportationproviders,domestic lowcarbon fuelstandards, fueleconomyrequirements,equipmentretrofit and otherrequirements willhave an impacton our businesspartners. Weexpect that thesedevelopmentswill impact ourbusiness – eitherdirectly orindirectly byincreasingtransportationcosts. As asignificantimporter of retailmerchandise, wealso anticipatethat internationalregulations willcreate a numberof indirectimpacts on ourvendorsincludingincreased costsofmanufacturing.


3 to 6years

Indirect(Supplychain)


Lowmedium

AlthoughTarget movesmost of itsmerchandisevia thirdpartytransportationproviders,domestic lowcarbon fuelstandards,fueleconomyrequirements,equipmentretrofit andotherrequirementswill have animpact on ourbusinesspartners. Weexpect thatthesedevelopmentswill impactour businesseither directlyor indirectlyby increasingtransportationcost.

To mitigateriskassociatedwithtransportationofmerchandise,we workclosely withvendors todetermine thebest shippoints anddeliveryroutes toreduce thenumber oftransportationmiles. Weapply carefulresearch andsophisticatedoptimizationtechnology tochoose themost efficientcombinationoftransportationmethods tocarry eachshipmentthroughoutour supplychain andcontinue toimproveloadingpractices andefficiencies atour regionaldistributioncenters. Wealso aremanagingthese risksthrough ourwork withClean byDesign andtheSustainableApparelCoalition.To mitigateriskassociatedwithtransportationofmerchandise,we workclosely with

vendors to



Productefficiencyregulationsandstandards

Target has built ahighly energyefficient portfolioof stores bycontinuouslyadopting newtechnologiesand operatingprocedures forboth new andexisting stores.However, weacknowledgethat building andequipmentcodes willcontinue toevolve towardhigher efficiency.This willpotentially leadto increasedcapital costs fornew and existingstores. However,our longtimecommitment toenergy efficientdesign will helpto mitigate anysignificantexposure wemight have tothese changingefficiencystandards andregulations.

Increasedcapital cost

1 to 3years Direct Unlikely Low

medium

AlthoughTarget movesmost of itsmerchandisevia thirdpartytransportationproviders,domestic lowcarbon fuelstandards,fueleconomyrequirements,equipmentretrofit andotherrequirementswill have animpact on ourbusinesspartners. Weexpect thatthesedevelopmentswill impactour businesseither directlyor indirectlyby increasingtransportationcost.

vendors todetermine thebest shippoints anddeliveryroutes toreduce thenumber oftransportationmiles. Weapply carefulresearch andsophisticatedoptimizationtechnology tochoose themost efficientcombinationoftransportationmethods tocarry eachshipmentthroughoutour supplychain andcontinue toimproveloadingpractices andefficiencies atour regionaldistributioncenters. Wealso aremanagingthese risksthrough ourwork withClean byDesign andtheSustainableApparelCoalition.

CC5.1bPlease describe your inherent risks that are driven by change in physical climate parameters

Risk driver Description Potential impact Timeframe Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

We aremanagingthese risksthrough workwith theNaturalResourceDefenseCouncil'sClean byDesignProgram andtheSustainableApparelCoalition. Wehave beenheavilyengaged inthe multistakeholdergroup theSustainableApparelCoalition, withother retailers,brands,suppliers,NGOs,academicexperts, and



Change inprecipitationextremesanddroughts

Changes inprecipitationextremes anddroughts canimpact ourvendors andthe productsthey supply.Droughts canresult in lessavailablewater forcertainmanufacturingprocesses. Inaddition,droughtscould result inreducedproductioncapacity ofnecessaryresourcessuch ascotton.

Reduction/disruptionin productioncapacity

>6 yearsIndirect(Supplychain)

Morelikely thannot

Medium

Uncharacteristicor significantweatherconditions canaffect customershoppingpatterns,particularly inapparel andseasonal items,which couldlead to lostsales or greaterthan expectedmarkdowns.Naturaldisasters instates whereour sales areconcentratedcould result insignificantphysicaldamage to oneor more of ourstores ordistributioncenters, andcause delays inthe distributionof merchandiseto ourdistributioncenters andstores, whichcould adverselyaffect ourresults.

the U.S.EnvironmentalProtectionAgency.Collectively,we developedthe HiggIndex, a toolthat creates acommonapproach formeasuringandevaluatingsustainabilityperformancein the supplychain,includingemissions. Weused theFacilitiesModule toassess morethan 3,000 ofthe facilitieswhere ourTargetbrandproducts aremanufactured.Ninetyfivepercent ofthese facilitiesvoluntarilyparticipated,and we usedto results toprioritize ourcoachingefforts on thefacilities thathave thebiggestpotentialimpact. OurProductDesign andDevelopmentteam is alsoworking withthe Clean byDesignprogramaimed atreducing theenvironmentalimpact of thetextileindustry. Aselect groupof fabric millsparticipated ina pilot wherelowcost andnocostinvestmentswereidentified toreduce waste,water, andenergy use atthe mills.Theseinvestmentshave apaybackperiod undera year andrepresentthousands ofdollars inannualsavings.Based on theresults, we are

The costassociatedwith currentlymanagingthese risks isminimal. Weutilizeinternalresources tomanageprogramsand havesomeexpensesrelated totheseprograms.However,these costsas apercentage oftotal costs areminimal.



working on anexpansionstrategy tocontinue intothe future.

CC5.1cPlease describe your inherent risks that are driven by changes in other climaterelated developments

Riskdriver Description

Potentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Reputation

Over time, itis possiblethatstakeholderexpectationscould shift asa result ofclimatechange –driving aneed for newreputationalleadership inthe retailindustry.

Reduceddemand forgoods/services

1 to 3years Direct

Morelikely thannot

Low

Over time, itis possiblethat guest’spreferencesandexpectationscould shift asa result ofclimatechangedriving aneed for newmerchandiseofferings andbaseexpectationsofreputationalleadership inthe retailindustry.These typesof incidentscould havean adverseimpact onperceptionsand lead totangibleadverseeffects onourbusiness,includingconsumerboycotts andlost sales.

Target is activelyworking on anumber of frontsto manage thisrisk andunderstandevolving guestattitudes andhow ourmerchandiseassortmentmeets thoseneeds. Forexample, wehave a crossfunctionalProducts andPackaging team,focused onunderstandingand improvingattributes(includingenvironmental)of our ownedand nationalbrand productassortment. Thisteam iscomprised ofrepresentativesfrom keydepartmentswithin ourmerchandising,sourcing, andmarketingdivisions. Thework of this teamis helping toinform and guideour merchandisestrategy. Inaddition, ourcorporatesustainabilityteam works withmore than 100partners acrossthe company toset goals,developinitiatives andmonitor andreport progress.


Over time, itis possiblethat guest’spreferencesandexpectationscould shift as

Target is activelyworking on anumber of frontsto manage thisrisk andunderstandevolving guestattitudes andhow ourmerchandiseassortmentmeets thoseneeds. Forexample, wehave a crossfunctional



Changingconsumerbehaviour

Over time, itis possiblethat guestpreferencescould shift asa result ofclimatechange –driving aneed for newmerchandiseofferings inthe retailindustry.

Reduceddemand forgoods/services

1 to 3years Direct

Morelikely thannot

Low

a result ofclimatechangedriving aneed for newmerchandiseofferings andbaseexpectationsofreputationalleadership inthe retailindustry.These typesof incidentscould havean adverseimpact onperceptionsand lead totangibleadverseeffects onourbusiness,includingconsumerboycotts andlost sales.

Products andPackaging team,focused onunderstandingand improvingattributes(includingenvironmental)of our ownedand nationalbrand productassortment. Thisteam iscomprised ofrepresentativesfrom keydepartmentswithin ourmerchandising,sourcing, andmarketingdivisions. Thework of this teamis helping toinform and guideour merchandisestrategy. Inaddition, ourcorporatesustainabilityteam works withmore than 100partners acrossthe company toset goals,developinitiatives andmonitor andreport progress.


Further Information

Page: CC6. Climate Change Opportunities

CC6.1Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenueor expenditure? Tick all that apply

Opportunities driven by changes in regulationOpportunities driven by changes in other climaterelated developments

CC6.1aPlease describe your inherent opportunities that are driven by changes in regulation

Opportunitydriver Description Potential

impact Timeframe Direct/Indirect Likelihood Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

GreenhouseGasRegulations –MultipleFederal andregionalefforts haveemerged thatseek to put aprice oncarbon.Included intheseproposals areFederal andregional capandtradeprograms,carbon taxes,and otherproposals.The endobjective of



Carbontaxes

policymakersis to reducethe pricedisparitybetweencarbonbasedandalternativeenergysources,establishincreasedcertainty forfuture energyprices andregulations,reduce USdependenceon foreignenergysources, andto incentivizeorganizationsandindividualswho act toreduce theirenergy use.In addition tothe certaintythat wouldcome fromtheestablishmentof significantcarbonregulations,we believethat Targetcould benefitin two otherways. First,over 10 yearsof substantialinvestmentsin energyefficiency willpositionTarget well tocompete inan economywhere energycostsincrease.Strategiesthat decouple ourbusinessoperationsfrom carbonbased energysources willreduce ourexposure topricefluctuationsand help theorganizationto manageexpense.Second, aswe continueto invest inenergyefficiency andrenewableenergy –there may beopportunitiesfor Target tomonetize thevalue wecreate byreducinggreenhouse

Reducedoperationalcosts

>6 years Indirect(Supply chain)


Lowmedium

Target hasinvestedheavily incarbonreductionefforts overthe pastseveral years.Throughenergyefficiency andrefrigerantmanagementefforts, we areavoiding over300,000metric tons ofcarbonemissionsannually.Based onexistingprograms weanticipate aprice ofcarbonrangingbetween $2and $20 perton, thistranslates toapproximately$600k to $6millionannually inavoidedexpense.

We arecontinuallymonitoringandevaluatingenergyconsumingequipment inour stores foropportunitiesto increaseefficiencyand reducecarbonemissions.We have aformalInnovationprocess andbudget usedto pilot newtechnologies,and annuallyrollout newtechnologiesthat provesuccessful.Through thisprogram, wehave testedandimplementednewtechnologiesfor lighting,HVAC andrefrigerationequipment.We continueto becommitted tothe processand the valueit delivers toouroperations.




gasemissionsthrough thesale ofcarbon offsetsand/orrenewableenergycertificates.

Cap andtradeschemes

GreenhouseGasRegulations –MultipleFederal andregionalefforts haveemerged thatseek to put aprice oncarbon.Included intheseproposals areFederal andregional capandtradeprograms,carbon taxes,and otherproposals.The endobjective ofpolicymakersis to reducethe pricedisparitybetweencarbonbasedandalternativeenergysources,establishincreasedcertainty forfuture energyprices andregulations,reduce USdependenceon foreignenergysources, andto incentivizeorganizationsandindividualswho act toreduce theirenergy use.In addition tothe certaintythat wouldcome fromtheestablishmentof significantcarbonregulations,we believethat Targetcould benefitin two otherways. First,over 10 yearsof substantialinvestmentsin energyefficiency willpositionTarget well tocompete inan economywhere energy

Reducedoperationalcosts

>6 years Indirect(Supply chain)

Morelikely thannot

Lowmedium

Target hasinvestedheavily incarbonreductionefforts overthe pastseveral years.Throughenergyefficiency andrefrigerantmanagementefforts, we areavoiding over300,000metric tons ofcarbonemissionsannually.Based onexistingprograms weanticipate aprice ofcarbonrangingbetween $2and $20 perton, thistranslates toapproximately$600k to $6millionannually in

We arecontinuallymonitoringandevaluatingenergyconsumingequipment inour stores foropportunitiesto increaseefficiencyand reducecarbonemissions.We have aformalInnovationprocess andbudget usedto pilot newtechnologies,and annuallyrollout newtechnologiesthat provesuccessful.Through thisprogram, wehave testedandimplementednewtechnologiesfor lighting,HVAC andrefrigerationequipment.We continueto be

Between2008 and theend of 2013,Target willhave investedover $130million inenergyefficiencyretrofits andrenewableenergyprojects.Theseinvestmentsare inaddition tosignificantefficiencyimprovementsto our newstores anddistributioncenters, andbusinessprocessoptimizationprograms thatweimplementedduring theeconomicdowntown toconserveenergy.These energyefficiencyretrofits



costsincrease.Strategiesthat decouple ourbusinessoperationsfrom carbonbased energysources willreduce ourexposure topricefluctuationsand help theorganizationto manageexpense.Second, aswe continueto invest inenergyefficiency andrenewableenergy –there may beopportunitiesfor Target tomonetize thevalue wecreate byreducinggreenhousegasemissionsthrough thesale ofcarbon offsetsand/orrenewableenergycertificates.

avoidedexpense.

committed tothe processand the valueit delivers toouroperations.

typically havea paybackperiod of lessthan 3 years.

Productefficiencyregulationsandstandards

Target hasbuilt a highlyenergyefficientportfolio ofstores bycontinuouslyadopting newtechnologiesand operatingproceduresfor both newand existingstores. Inaddition, wehave teammembersdedicated toidentifyingfinancing andrebateopportunitiesfor energyefficiencyprojects. Thishas allowedfor increasedinvestment inenergyefficiencyprojects. Weanticipatecontinuedopportunitiesto leveragethirdpartyfinancing andrebateopportunitiesforimplementingenergyefficiency

Reducedcapitalcosts

3 to 6years Direct Unlikely Low

By continuallyupdating ourenergyconsumingassets, wehave beenable to takeadvantage ofcontinuallyimprovingenergyefficiencystandardsandregulations.This has ledto continuedenergyrelatedsavings. Inaddition, wehave teammembersdedicated toidentifyingfinancing andrebateopportunitiesfor energyefficiencyprojects. Thishas allowedfor increasedinvestment inenergyefficiencyprojects.

We haveteammembersdedicated toidentifyingfinancing andrebateopportunitiesfor energyefficiencyprojects.They workclosely withinternalpartners aswell asutilities toensure weare takingadvantage ofas manyopportunitiesas possible.

The costassociatedwith currentlymanagingthese risks isminimal. Weutilize internalresources tomanageprograms andhave someexpensesrelated totheseprograms.However,these costs asa percentageof total costsare minimal.



projects in thecoming years.

CC6.1cPlease describe the inherent opportunities that are driven by changes in other climaterelated developments

Opportunitydriver

Description Potential

impactTimeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Changingconsumerbehaviour

From how we buildour stores to theproducts on ourshelves,environmentalsustainability atTarget is integratedthroughout ourbusiness. Ourguests have cometo expect attractive,functional, highquality, andaffordablemerchandise as apart of oureverydayassortment. Withthe growingawareness ofenvironmentalissues includingclimate change andhealth and wellbeing, we see anopportunity to offerour guestsadditional choiceswithin our productassortment that willdrive topline sales.We constantlyrevamp ourassortment to makesure we're givingguests what theywant. More andmore, we'rerethinking thedesign of theproducts andpackaging we sellto incorporatesustainableattributes becauseit's the right thing todo and because itcreates additionalvalue for ourguests. Wemeasure ourguests' preferencesthrough surveys,trend research,sales patterns andproduct tests. Inmany departmentswithin our stores,guests will findproduct choicesthat incorporaterecycled materials,nontoxic chemicalsor organicingredients, andpackaging designsthat minimize wasteand incorporaterecyclable or otherpreferablematerials. Inaddition to toplinesales growthopportunities –there are

1 to 3years Direct Very likely Low

In 2013, wecontinuedTarget'sEarth Monthpromotion inour weeklynewspapercircular,whichreachesover 45millionhouseholdsper week.The circularhighlighteda range ofproductswith ecofriendlyattributes,and drovesignificantsales in avariety ofproductdesigncategoriesincludingenergyefficientlights andsmallelectronics.

Target isactivelyworking on anumber offronts tomanage thisrisk andunderstandevolving guestattitudes andhow ourmerchandiseassortmentmeets thoseneeds. Forexample, wehave a crossfunctionalProducts andPackagingteam, focusedonunderstandingand improvingattributes(includingenvironmental)of our ownedand nationalbrand productassortment.This team iscomprised ofrepresentativesfrom keydepartmentswithin ourmerchandising,sourcing, andmarketingdivisions. Thework of thisteam is helpingto inform andguide ourmerchandisestrategy. Inaddition, ourcorporatesustainabilityteam workswith more than150 partnersacross thecompany to setgoals, developinitiatives andmonitor andreportprogress.

The costassociatedwith currentlymanagingtheseprograms isminimal. Weutilizeinternalresources tomanageprogramsand havesomeexpensesrelated totheseprograms.However,these costsas apercentage oftotal costs areminimal.



opportunities todrive improvedmargin through agreater focus onproduct andpackaging design.The elimination ofexcess materialand energy costsfrom productmanufacturing andtransportation cantranslate into lowercost of goods sold.

Reputation

We also recognizethat environmentalsustainability isimportant to bothour current andprospective teammembers andguests. Wecommunicate withteam membersthroughout the yearand involve them ingenerating newideas and sharingtheir environmentalefforts. Within thefirst month oflaunching aninteractive internalweb portaldedicated tosustainability, morethan 500headquarters teammembers joinedthe site – and itcontinues to growdaily. As we pursuesignificant growthin the comingyears, we believeour sustainabilityefforts will positionus to retain ourcurrent topperformers, andattract the besttalent, bydifferentiatingTarget from otherpotentialemployers.

1 to 3years Direct Very likely Low

In 2013, wecontinuedTarget'sEarth Monthpromotion inour weeklynewspapercircular,whichreachesover 45millionhouseholdsper week.The circularhighlighteda range ofproductswith ecofriendlyattributes,and drovesignificantsales in avariety ofproductdesigncategoriesincludingenergyefficientlights andsmallelectronics.

Target isactivelyworking on anumber offronts tomanage thisrisk andunderstandevolving guestattitudes andhow ourmerchandiseassortmentmeets thoseneeds. Forexample, wehave a crossfunctionalProducts andPackagingteam, focusedonunderstandingand improvingattributes(includingenvironmental)of our ownedand nationalbrand productassortment.This team iscomprised ofrepresentativesfrom keydepartmentswithin ourmerchandising,sourcing, andmarketingdivisions. Thework of thisteam is helpingto inform andguide ourmerchandisestrategy. Inaddition, ourcorporatesustainabilityteam workswith more than150 partnersacross thecompany to setgoals, developinitiatives andmonitor andreportprogress.

The costassociatedwith currentlymanagingtheseprograms isminimal. Weutilizeinternalresources tomanageprogramsand havesomeexpensesrelated totheseprograms.However,these costsas apercentage oftotal costs areminimal.

CC6.1ePlease explain why you do not consider your company to be exposed to inherent opportunities driven by physical climate parameters that have the potentialto generate a substantive change in your business operations, revenue or expenditure

We do not believe that we are exposed to opportunities driven by physical climate parameters that have the potential to generate substantive changein our business operations, revenue, or expenditure. We understand that physical climate change risks may affect our operations, customers, andsupply chain through a number of parameters: including changing precipitation patterns, increased extreme weather events, prolonged droughts or



floods, and changes in average and/or extreme temperatures. In some cases, these effects may offer our business an opportunity if we are able torespond quickly or mitigate the impacts more effectively. For example, our global supply chain may provide access to products, in the event of aclimate related supply interruption that regional retailers could not access. Ultimately, the likelihood and magnitude of these potential opportunitiesaround the world are sufficiently small and/or the timeframe (5+ years) sufficiently long that we do not anticipate that they have the potential tosubstantively change our business.

Further Information

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1Please provide your base year and base year emissions (Scopes 1 and 2)

Scope Base year Base year emissions (metric tonnes CO2e)Scope 1 Mon 01 Jan 2007 Mon 31 Dec 2007 248114Scope 2 Mon 01 Jan 2007 Mon 31 Dec 2007 2709888

CC7.2Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you useThe Climate Registry: General Reporting Protocol

CC7.2aIf you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculateScope 1 and Scope 2 emissions

CC7.3Please give the source for the global warming potentials you have used

Gas ReferenceCO2 IPCC Second Assessment Report (SAR 100 year)CH4 IPCC Second Assessment Report (SAR 100 year)N2O IPCC Second Assessment Report (SAR 100 year)HFCs IPCC Second Assessment Report (SAR 100 year)PFCs IPCC Second Assessment Report (SAR 100 year)SF6 IPCC Second Assessment Report (SAR 100 year)

CC7.4Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of thispage

Fuel/Material/Energy Emission Factor Unit ReferenceDiesel/Gas oil 22.51 lb CO2e per gallon Climate Registrty GRPDiesel/Gas oil 22.45 lb CO2e per gallon Climate Registrty GRPElectricity lb CO2e per MWh eGRID AttachmentElectricity lb CO2e per MWh Climate Registrty GRPNatural gas 117.18 lb CO2e per million BTU Climate Registrty GRPNatural gas 116.18 lb CO2e per million BTU Climate Registrty GRPPropane 139.73 lb CO2e per million BTU Climate Registrty GRPPropane 140.61 lb CO2e per million BTU Climate Registrty GRP

Further Information

Page: CC8. Emissions Data (1 Feb 2014 31 Jan 2015)

CC8.1Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control

CC8.2Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

701558

CC8.3Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e



2472470

CC8.4Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selectedreporting boundary which are not included in your disclosure?

Yes

CC8.4aPlease provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in yourdisclosure

Source

Relevanceof Scope 1emissionsfrom thissource

Relevanceof Scope 2emissionsexcludedfrom thissource

Explain why the source is excluded

NonUSOfficeFacilities

Emissionsare notrelevant

Emissionsare notrelevant

Our current disclosure does not include our headquarters and sales facilities outside of the United Statesand Canada. This includes three buildings in India and several small sales offices scattered around theglobe. These facilities are currently excluded due to a lack of reliable data on energy consumption. Basedon estimates of potential emissions from all of these sources, they are considered de minimis, and likelywould contribute significantly less than 1% of our overall Scope 1 and Scope 2 emissions.

CC8.5Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources ofuncertainty in your data gathering, handling and calculations

Scope Uncertaintyrange

Mainsources ofuncertainty

Please expand on the uncertainty in your data

Scope1

More than10% butless than orequal to20%

Data GapsMetering/MeasurementConstraints

Target does not currently conduct a formal uncertainty analysis on our GHG inventory. However, we feelconfident in the reliability of our utility data, which in 2014 accounted for nearly 90% of our total emissions.Refrigerant makes us most of the remaining 10% and although our refrigerant tracking system is not astightly controlled as our utility data, we feel reasonably confident that it is within 15% of actual leakage.Based on that estimate, we feel our Scope 1 uncertainty is greater than 10% but less than 20%.

Scope2

Less than orequal to 2% Assumptions

Target does not currently conduct a formal uncertainty analysis on our GHG inventory. However, we feelconfident in the reliability of our utility data, which in 2014 accounted for nearly 90% of our total emissions.We feel our scope 2 uncertainty is less than 2%.

CC8.6Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

Third party verification or assurance complete

CC8.6aPlease provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Type ofverification orassurance

Attach the statement Page/sectionreference

Relevantstandard

Proportion ofreported Scope 1emissions verified

(%)

Limitedassurance

https://www.cdp.net/sites/2015/20/18320/Climate Change 2015/SharedDocuments/Attachments/CC8.6a/GHGVerificationStatement Target2014 FINAL.docx

VerificationStatement Findings, Page II

ISO140643 100



CC8.7aPlease provide further details of the verification/assurance undertaken for your Scope 2 emissions, and attach the relevant statements


Attach the statement Page/Sectionreference

Relevantstandard

Proportion ofreported Scope 2emissions verified

(%)

Limitedassurance

https://www.cdp.net/sites/2015/20/18320/Climate Change 2015/SharedDocuments/Attachments/CC8.7a/GHGVerificationStatement Target2014 FINAL.docx


ISO140643

CC8.8Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figuresreported in CC8.6, CC8.7 and CC14.2



Additional data points verified CommentNo additional data verified

CC8.9Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

Further Information

Page: CC9. Scope 1 Emissions Breakdown (1 Feb 2014 31 Jan 2015)

CC9.1Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1aPlease break down your total gross global Scope 1 emissions by country/region

Country/Region Scope 1 metric tonnes CO2e

United States of America 663923Canada 37634

CC9.2Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By GHG typeBy activity

CC9.2cPlease break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 emissions (metric tonnes CO2e)CO2 257269CH4 435N2O 360HFCs 443493

CC9.2dPlease break down your total gross global Scope 1 emissions by activity

Activity Scope 1 emissions (metric tonnes CO2e)Stationary Combustion 239394Mobile Sources 18671Refrigerants 443493

Further Information

Page: CC10. Scope 2 Emissions Breakdown (1 Feb 2014 31 Jan 2015)

CC10.1Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1aPlease break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/Region Scope 2 metrictonnes CO2e

Purchased and consumed electricity,heat, steam or cooling (MWh)

Purchased and consumed low carbon electricity, heat,steam or cooling accounted for in CC8.3 (MWh)

United States ofAmerica 2431975 4492722

Canada 40496 183707

CC10.2Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By activity



CC10.2cPlease break down your total gross global Scope 2 emissions by activity

Activity Scope 2 emissions (metric tonnes CO2e)Electricity 2466757Steam 3424Chilled Water 2289

Further Information

Page: CC11. Energy

CC11.1What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type MWhFuel 1392197Electricity 4676429HeatSteam 18909Cooling 10113

CC11.3Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWhDiesel/Gas oil 77146Natural gas 1306398Propane 8652

CC11.4Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure reportedin CC8.3

Basis for applying a low carbon emission factor MWh associated with low carbon electricity,heat, steam or cooling Comment

No purchases or generation of low carbon electricity, heat, steam or coolingaccounted with a low carbon emissions factor

Further Information

Page: CC12. Emissions Performance

CC12.1How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased

CC12.1aPlease identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissionscompare to the previous year

Reason Emissions value(percentage)

Direction ofchange Comment

Emissions reduction activities 0.8 DecreaseDivestmentAcquisitionsMergers

Change in output 1.2 Increase Increased number of facilities led to increased electricityconsumption.

Change in methodologyChange in boundaryChange in physical operatingconditionsUnidentified



Other

CC12.2Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensityfigure

Metricnumerator

Metricdenominator

% change from previousyear

Direction of change fromprevious year Reason for change

42.6 metric tonnesCO2e

unit totalrevenue 1.5 Decrease Decrease driven by higher

sales

CC12.3Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensityfigure

Metricnumerator

Metricdenominator

% change fromprevious year


8.9 metric tonnesCO2e FTE employee 0.2 Increase Increase driven by higher

emissions

CC12.4Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensityfigure

Metricnumerator

Metricdenominator

% change fromprevious year


0.01042 metric tonnesCO2e square foot 0.1 Increase Increase driven by higher

emissions

Further Information

Note: Intensity figures in 12.2, 12.3 and 12.4 are for U.S. operations only.

Page: CC13. Emissions Trading

CC13.1Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.2Has your organization originated any projectbased carbon credits or purchased any within the reporting period?

No

Further Information

Page: CC14. Scope 3 Emissions

CC14.1Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources ofScope 3emissions

Evaluationstatus

metrictonnesCO2e

Emissions calculation methodology

Percentage ofemissions

calculated usingdata obtained

from suppliers orvalue chainpartners

Explanation

Purchasedgoods andservices

Relevant,not yetcalculated

Capitalgoods


Fuelandenergyrelatedactivities (notincluded inScope 1 or 2)


Upstreamtransportationand

distribution

Relevant,not yet

calculated

Wastegenerated in

Relevant,not yet



generated inoperations

not yetcalculated

Businesstravel

Relevant,calculated 16769

Our business travel emissions estimate includes passenger mileson commercial airlines. We used emissions factors from US EPAClimate Leaders Business Travel Module. Global warmingpotentials are from the IPCC Second Assessment Report. We didnot apply a radiative forcing adjustment to the airline travelemissions

Employeecommuting


Upstreamleased assets

Notrelevant,explanationprovided

Target'supstream leasedassets areaccounted for inour Scope 1 andScope 2emissions.

Downstreamtransportationanddistribution


Processing ofsold products


Target does notsell intermediateproducts

Use of soldproducts


End of lifetreatment ofsold products


Downstreamleased assets


Target does notlease anysignificantnumber ofassets

Franchises


Target does notoperate anyfranchises

Investments Notevaluated

Other(upstream)Other(downstream)



CC14.2aPlease provide further details of the verification/assurance undertaken, and attach the relevant statements


Attach the statement Page/Sectionreference

Relevantstandard

Proportion ofScope 3emissionsverified (%)

Limitedassurance

https://www.cdp.net/sites/2015/20/18320/Climate Change 2015/SharedDocuments/Attachments/CC14.2a/GHGVerificationStatement Target 2014 FINAL.docx


ISO140643 100

CC14.3Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3aPlease identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3emissions

Reason forchange

Emissions value(percentage)

Direction ofchange Comment

Business travel Change inmethodology Decrease Methodology was corrected to properly attribute

emissions

CC14.4Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)



Yes, our suppliers

CC14.4aPlease give details of methods of engagement, your strategy for prioritizing engagements and measures of success

We are engaging our suppliers through our work with the Natural Resource Defense Council's Clean by Design Program and the SustainableApparel Coalition. We have been heavily engaged in the multistakeholder group the Sustainable Apparel Coalition, as a founding member withother retailers, brands, suppliers, NGOs, academic experts, and the U.S. Environmental Protection Agency. Collectively, we developed an index toolthat creates a common approach for measuring and evaluating sustainability performance in the supply chain, including emissions. We used thefacilities module to assess more than 3,000 of the facilities where our ownedbrand products are manufactured. Ninetyfive percent of these facilitiesvoluntarily participated and we used the results to prioritize our coaching efforts on the facilities that have the biggest potential impact/opportunity.

Our Product Design and Development team is also working with the Clean by Design program aimed at reducing the environmental impact of thetextile industry. A select group of fabric mills participated in a pilot where lowcost and nocost investments were identified to reduce waste, water,and energy use at the mills. These investments have a payback period under a year and represent thousands of dollars in annual savings

CC14.4bTo give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend thatthey represent

Number of suppliers % of total spend Comment3000

CC14.4cIf you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How youmake use ofthe data

Please give details

Use insupplierscorecards

Target has adopted use of the Higg Index, and the results of these assessments are incorporated into annual vendor and supplierreporting, sidebyside existing metrics of cost, design and quality. Target used the facilities module to assess more than 3,000 ofthe facilities where our Targetbrand products are manufactured. Ninetyfive percent of these facilities voluntarily participated, andwe used the results to priorities our coaching efforts on the facilities that have the biggest potential impact.

IdentifyingGHG sourcesto prioritizefor reductionactions

Target has adopted use of the Higg Index, and the results of these assessments are incorporated into annual vendor and supplierreporting, sidebyside existing metrics of cost, design and quality. Target used the facilities module to assess more than 3,000 ofthe facilities where our Targetbrand products are manufactured. Ninetyfive percent of these facilities voluntarily participated, andwe used the results to priorities our coaching efforts on the facilities that have the biggest potential impact.

Further Information

Module: Sign Off

Page: CC15. Sign Off

CC15.1Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job categoryGreg Downing Manager, Corporate Social Responsibility Environment/Sustainability manager

Further Information

CDP: [D][,][D2]