HanesBrands Earns Top Scores from CDP Maintaining Leader Status Among Industry Peers

Rhea-AI Summary

HanesBrands has achieved an A- score in climate change and water security for the second year in a row, showcasing its commitment to sustainability. The company's transparency and dedication to environmental impact have been recognized through CDP's annual sustainability disclosures, highlighting its leadership in addressing climate change and water security.

Insights

Sustainability Analyst

HanesBrands' A- score from the CDP in both climate change and water security signifies a strong commitment to environmental sustainability, which is increasingly becoming a critical factor in consumer decision-making and investor sentiment. Companies that demonstrate proactive environmental stewardship often enjoy enhanced brand reputation, which can translate into customer loyalty and potentially higher sales. Moreover, this performance may also result in operational efficiencies, reducing costs through energy savings and water conservation, thereby potentially improving profit margins.

Investors and analysts closely monitor such ratings as they can impact a company's risk profile. A high CDP score may lower perceived risks associated with regulatory compliance, resource scarcity and climate-related disruptions. This could lead to more favorable borrowing terms and a stronger negotiating position with stakeholders. Furthermore, as sustainability becomes a more significant component in index inclusion criteria, HanesBrands' rating could influence its attractiveness to sustainability-focused funds and ESG (Environmental, Social and Governance) investors.

Financial Analyst

While the direct financial impact of HanesBrands' sustainability achievements may not be immediately quantifiable, the long-term implications are significant. By aligning with the Science-Based Targets Initiative, the company is positioning itself to mitigate future costs associated with carbon pricing and stricter environmental regulations. Additionally, the reduction in Scope 1, 2 and 3 emissions, along with a 25% reduction in water use, indicates a strategic approach to operational efficiency that could lead to cost savings.

Investors should note that HanesBrands' sustainability efforts could also serve as a hedge against potential supply chain volatility and resource scarcity. The company's foresight in these areas might provide a competitive edge, as the industry faces increasing pressure to adopt sustainable practices. However, it's crucial to monitor the capital expenditures associated with these sustainability initiatives to ensure they do not adversely affect short-term financial performance.

Market Research Analyst

The apparel industry is under considerable scrutiny for its environmental impact and HanesBrands' high CDP score sets it apart from competitors. This distinction could influence consumer preferences, particularly among the growing segment of environmentally conscious shoppers. In the context of market positioning, the company's sustainability credentials could be leveraged to capture market share from competitors with lower environmental performance ratings.

Additionally, the company's recognition by Barron's and Ethisphere enhances its corporate social responsibility profile, which can be a deciding factor for both consumers and investors. It's vital to understand the potential market dynamics that could arise from these accolades. For instance, they might contribute to a 'halo effect' that could enhance overall brand perception and drive consumer spending, especially in demographics that prioritize ethical and sustainable practices.

HanesBrands Scores A- in Climate Change and Water Security for the Second Consecutive Year

WINSTON-SALEM, N.C.--(BUSINESS WIRE)-- HanesBrands (HBI), a global leader in iconic apparel brands, has been recognized for the second consecutive year with an A- score on the global CDP annual sustainability disclosures across two key areas of environmental impact – climate change and water security.

HanesBrands achieved this recognition for its leadership in transparency, best practices and coordinated action on climate change issues and water security. CDP’s annual environmental disclosure and scoring process earns widespread acclaim as the gold standard of corporate environmental transparency. This year, an unprecedented 21,000 companies disclosed, marking a notable 24% increase compared to 2023.

“We take great pride in being acknowledged as a frontrunner among industry peers for our transparency and commitment to sustainability, both of which are reflected in our outstanding CDP ratings,” said Steve Bratspies, CEO of HanesBrands. “This accomplishment is a testament to the hard work being done by HanesBrands associates around the world who are focused on reaching our 2025/2030 sustainability goals and who want to do the right thing for the planet.”

HanesBrands’ leadership status illustrates its incredible commitment to high sustainability standards. The company has set carbon emissions reduction targets through the Science-Based Targets Initiative to reduce its Scope 1 and 2 emissions by 50% and Scope 3 emissions by 30% by 2030. Moreover, HanesBrands is committed to reducing water use by 25% in their own operations by 2030.

The company has been named as one of the 100 most sustainable companies in the nation multiple times by Barron’s and is the only apparel company to earn the U.S. Environmental Protection Agency Energy Star Sustained Excellence Award. HanesBrands is also very proud to have been named one of the World’s Most Ethical Companies by Ethisphere.

For more details about CDP and its scoring methodology, visit www.cdp.net. Learn more about HanesBrands commitments to sustainability here.

About HanesBrands

HanesBrands (NYSE: HBI) makes everyday apparel that is known and loved by consumers around the world for comfort, quality and value. Among the company’s iconic brands are Hanes, the leading basic apparel brand in the United States; Champion, an innovator at the intersection of lifestyle and athletic apparel; Bonds, which is setting new standards for design and sustainability; Maidenform, America’s number one shapewear brand; and Bali, America’s number one bra brand. HBI employs 48,000 associates in 29 countries and has built a strong reputation for workplace quality and ethical business practices. The company, a longtime leader in sustainability, has set aggressive 2030 goals to improve the lives of people, protect the planet and produce sustainable products. HBI is building on its unmatched strengths to unlock its #FullPotential and deliver long-term growth that benefits all of its stakeholders.

About CDP

CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 740 financial institutions with over $136 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 24,000 organizations around the world disclosed data through the CDP in 2023, with more than 23,000 companies – including listed companies worth two thirds global market capitalization – and over 1,100 cities, states and regions. Fully TCFG aligned, CDP holds the largest environmental database in the world, and the CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cpd.net or follow us @CDP to find out more.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240228733373/en/

Nicole Ducouer, 336-986-7090

Source: HanesBrands

FAQ

What score did HanesBrands receive for climate change and water security?

HanesBrands received an A- score for climate change and water security.

What are HanesBrands' sustainability goals for 2030?

HanesBrands aims to reduce its Scope 1 and 2 emissions by 50% and Scope 3 emissions by 30% by 2030. Additionally, the company plans to decrease water use by 25% in its operations by 2030.

How has HanesBrands been recognized for its sustainability efforts?

HanesBrands has been named one of the 100 most sustainable companies in the nation by Barron's multiple times and has received the U.S. Environmental Protection Agency Energy Star Sustained Excellence Award. The company has also been honored as one of the World's Most Ethical Companies by Ethisphere.