Carter’s, Inc. Releases 2025 Raise the Future Impact Report

Key Terms

pre-consumer textile recycling technical

Pre-consumer textile recycling is the collection and reuse of fabric, yarn, trims and other materials that are discarded during manufacturing and never reach consumers. Like turning kitchen scraps into compost for a garden, these factory leftovers are sorted, processed and turned into new fibers, insulation, or other products; this matters to investors because it can lower raw-material costs, reduce waste liabilities, and affect a company’s sustainability profile and regulatory compliance.

sasb financial

SASB stands for the Sustainability Accounting Standards Board, an organization that created industry-specific guidelines for companies to report environmental, social and governance factors that are likely to affect their financial performance. Think of it as a standardized checklist that helps investors compare how well different companies manage risks like pollution, labor practices or product safety — similar to using a common recipe so you can fairly judge different cooks. Clear, consistent SASB disclosures make it easier for investors to spot hidden risks and long-term value drivers.

tcfd financial

A framework that guides companies on reporting how climate change and related policies, physical impacts, and market shifts affect their finances and business plans. It matters to investors because consistent, comparable disclosures act like a weather forecast for financial risk—helping assess which companies face greater climate-related danger or opportunity, improving decisions about value, risk allocation, and long-term planning.

gri financial

GRI (Global Reporting Initiative) is a set of widely used standards for how companies disclose sustainability information—environmental, social and governance practices—in a consistent way. For investors it acts like a common checklist or ingredients label, making it easier to compare companies’ non-financial risks and long-term resilience, assess transparency, and track whether promised sustainability actions are actually being carried out.

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Recognized for Leadership in Sustainability, Carter’s Advances Corporate Responsibility Efforts

ATLANTA--(BUSINESS WIRE)-- Carter’s, Inc. (NYSE: CRI), North America’s largest and most enduring apparel company exclusively for babies and young children, announced today the release of its sixth annual Raise the Future Impact Report, showcasing the Company’s progress in 2025 against its corporate responsibility commitments.

Guided by its Raise the Future™ platform, Carter’s is committed to helping all families with young children grow and thrive—while making meaningful investments in people and communities and reducing its environmental footprint.

"In 2025, our consumers remained at the center of everything we do," said Anu Piduru, Senior Director of Sustainability. "We're committed to delivering products of the highest quality, while reducing our environmental footprint and upholding our responsibility to all our stakeholders. This report reflects our continued commitment to balancing product excellence, sustainability, and social impact for our consumers, our stakeholders, and future generations."

2025 Raise the Future Impact Report Highlights

Product

• More than 86% of our cotton was sustainably sourced through Better Cotton Initiative™ (BCI™) Cotton or through organically grown cotton
• More than 60% of our 2025 sales were supported by responsible cotton sourcing through BCI Cotton or came from our Little Planet and PurelySoft™ collections made with organically grown cotton or viscose from responsibly managed forests.

Planet

• We reduced virgin plastic packaging by 90% in 2025 compared to our 2022 baseline, with 90% of our total plastic packaging now made from recycled content.
• We advanced product circularity through pre-consumer textile recycling pilots and expansion of KIDCYCLE™, our in-store clothing takeback program, giving families a responsible way to recycle clothing that would otherwise be discarded.

People

• Since 2021, we have invested approximately $42M in communities through our corporate philanthropy programs, supporting families and children across the country and around the world.
• In 2025, our employees contributed 24,300 hours of volunteer time, and we invested more than $8M in monetary and in-kind donations, showing up for the communities where we live and work.

Global Recognition for Sustainability Excellence

In 2025, Carter’s earned several sustainability awards, underscoring Carter’s growing leadership in corporate responsibility and environmental stewardship, including:

• Ethisphere’s World's Most Ethical Companies
• TIME’s World’s Most Sustainable Companies
• Newsweek’s America’s Most Responsible Companies
• EPA’s Green Power Partner

Prepared in accordance with the SASB, TCFD, and GRI frameworks, the Raise the Future Impact Report details Carter’s strategy, data, and progress across the Company’s corporate responsibility priorities.

To view the full report, please visit: https://esg.carters.com/2025.

About Carter’s, Inc.

Carter’s, Inc. is North America’s largest and most-enduring apparel company exclusively for babies and young children. The Company’s core brands are Carter’s and OshKosh B’gosh, iconic and among the sector’s most trusted names. These brands are sold through over 1,000

Company-operated stores in the United States, Canada, and Mexico and online at www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca, and www.carters.com.mx. Carter’s also is the largest supplier of baby and young children’s apparel to North America’s biggest retailers. The Company’s Child of Mine brand is available at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon. The Company’s emerging brands include Little Planet, crafted with organic fabrics and sustainable materials, Otter Avenue, a toddler-focused apparel brand, and Skip Hop, baby essentials from tubs to toys. Carter’s is headquartered in Atlanta, Georgia. Additional information may be found at www.carters.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260708270487/en/

Lindsay Rider
Senior Director, Public Affairs
Lindsay.Rider@carters.com

Source: Carter’s, Inc.