These commitments were developed using industry guidance, research, and science-based models that support an emissions growth path aimed at limiting global warming to 1.5 degrees Celsius, in line with the goals of the United Nations’ Paris Agreement.

In Fiscal 2023, we established an internal Global Carbon and Energy Management Group (GCEG), a global, cross-functional team with responsibility for supporting TJX in making progress against our operational net zero and renewable energy targets and for contributing to the process for measuring and reporting key climate and energy data and metrics. The GCEG led the development of the Company’s net zero roadmap, which outlines our high-level plans and strategic approach to achieving our global climate and energy targets. Through this roadmap, we have identified strategies and tactics that aim to decrease our Scope 1 and Scope 2 emissions in line with our commitments. Initially, we plan to focus on reducing emissions in our facilities by accelerating investments in some energy efficiency technologies, such as HVAC and LED lighting, and increasing renewable energy purchases across our global organization. We also continue to monitor the development and feasibility of utilizing available electric vehicle and alternative fuel technologies in order to reduce fleet emissions. Following reasonable efforts to reduce operational emissions in pursuit of our net zero GHG emissions goal, we may assess an approach to source carbon offsets² in the event there are remaining emissions to neutralize by 2040. In this case, we would intend to source carbon offsets from projects that we determine to be consistent with credible, publicly available guidance on the attainment of net-zero GHG emissions targets.

As a result of our energy management and renewable and low-carbon energy sourcing efforts in Fiscal 2024 alone, we estimate that our reported Scope 1 and Scope 2 (market-based) emissions were reduced by approximately 272,000 metric tons of CO₂e.³

GHG Emissions:

• We have achieved a 32% reduction in absolute, market-based GHG emissions since our Fiscal 2017 baseline.⁴ This represents approximately 58% of our 2030 target achieved. We are progressing along our modeled emissions reduction pathway.

• We reduced our absolute, market-based GHG emissions by 4.9% relative to Fiscal 2023. We continued to grow our business and operational footprint over the same period.

Renewable Energy:

• 31% of energy sourced for our own operations globally came from renewable sources.

• In Fiscal 2024 alone, we sourced more than 553 million kilowatt hours of renewable and low-carbon energy.

Addressing Emissions In Our Value Chain

Estimating Scope 3 Emissions

Addressing Scope 3 emissions is a priority for TJX, and in recent years, we have begun to evaluate how our commitment to reduce our Scope 1 and 2 emissions might be extended to certain Scope 3 emissions sources as well. Our internal teams have been constructing and executing on a multi-year feasibility assessment, and we have made strides in addressing Scope 3 emissions.

As an off-price retailer, assessing and calculating Scope 3 emissions from certain categories is challenging. Our opportunistic and flexible buying strategy is to acquire a rapidly changing assortment of merchandise in a variety of ways on an ongoing basis and close to need from an expansive universe of merchandise vendors. This means that the volume we buy from any single vendor can vary greatly from time to time. Unlike more traditional retailers, we do not own, operate, or control the facilities that manufacture products sold in our stores. In addition, we do not replenish specific branded products purchased from a small or generally very consistent vendor base on a regular basis and our product mix changes frequently based on a variety of factors.

Despite the complexities of Scope 3, we are taking action in this area. As part of our feasibility assessment, we evaluated all 15 categories of Scope 3 GHG emissions, both upstream and downstream, and developed order of magnitude estimates of relevant categories using a variety of methodologies, including economic input-output lifecycle assessment (EIO-LCA). This provided us with a better understanding of emissions hotspots in our value chain and identified that our largest category of Scope 3 emissions is purchased goods and services (category 1). Other relevant categories of Scope 3 emissions include upstream transportation and distribution (category 4) and use of sold products (category 11).

We also looked at what data were available across the organization that could support calculation of relevant Scope 3 categories. We have access to activity data related to business travel (category 6) and waste generated in our operations (category 5) and have reported on our Scope 3 GHG emissions for these two categories for several years. Following collaboration with our e-commerce fulfillment providers, we recently expanded our disclosure to include downstream transportation and distribution (category 9).

We are now taking preliminary steps to establish processes designed to more precisely estimate relevant Scope 3 categories. We expect that these processes will continue to rely on EIO-LCA and other methodologies that rely on economy/industry-wide emissions intensities in the estimation of some of our largest emissions categories. Given the limitations of these methodologies and the limitations in our access to supplier-specific data, developing precise Scope 3 emissions targets aligned to actionable emissions reduction pathways continues to be a challenge for our business, particularly for categories, such as purchased goods and services (category 1), that are made even more complicated by our opportunistic buying strategy and off-price business model.

Some of these steps we have begun to take include:

• Education. TJX has conducted peer benchmarking in this space. We also joined the Textile Exchange and have begun to have conversations with partners, such as certain of our transportation providers. We hope that these efforts will provide new ideas about how we might approach certain Scope 3 data.

• Mining our data. Given the challenges of our business model as it relates to Scope 3, we have begun to mine our own product data to determine what information we have that could support our work in this space. We have started this work by focusing where we have access to the most data, including products for which we have more control in bringing to market. While this is very early stage, an initial test with one product category provided us with insight that we believe may help us better estimate emissions across the entirety of that product category, regardless of how we source it.

Transportation & Fuel (Scope 3)

Our logistics teams worldwide seek out strategies and solutions that can help us increase the efficiency of our logistics and transportation operations and reduce fuel used to transport our merchandise throughout our distribution network. We strive to conserve fuel, reduce travel time, and decrease the number of trucks on the road. We use a variety of tactics and technologies to support our efficiency and fuel conservation initiatives—for example, using modeling software to improve the efficiency of our store delivery network, increasing the utilization of trailer space, and testing new alternative fuel vehicles.

Where feasible and when aligned with our business, we use rail and intermodal⁶ for moving merchandise throughout our network. This is generally more fuel efficient and produces fewer emissions than trucking alone. We estimate that in Fiscal 2024, rail and intermodal shipping resulted in 260,000 fewer metric tons of CO₂e emissions than shipping the same volume by truck only.

In the U.S., where practicable, we utilize intermodal, centrally located service centers, and strategic partnerships to help increase the efficiency of our distribution network.

• Our service centers, which are smaller than distribution centers, are located closer to store clusters and are designed to improve the efficiency of our store delivery process. We also utilize these service centers to co-locate our Asset Recovery & Recycling Centers (ARRCs). ARRCs enable us to maximize our delivery trucks’ utilization by backhauling re-usable and recyclable materials. Learn more about the value our ARRC network brings to our business in the Waste Management section of our website.

• We engage directly with our logistics partners and indirectly through third parties (such as the U.S. Environmental Protection Agency’s (EPA) SmartWay® Transport Partnership) to identify potential opportunities that may result in emissions reductions.
• TJX requires that all U.S. carriers are EPA SmartWay-certified and has collaborated with existing carriers to encourage their participation in the program. In Calendar Year 2023, more than 99% of TJX’s U.S. freight and logistics ton-mileage was with SmartWay-certified carriers. TJX was recognized as a SmartWay High Performer in 2023 and was selected for a 2024 SmartWay Excellence Award, which recognizes partners for their environmental performance and freight sustainability leadership.

• We continue to explore innovative opportunities for improving freight efficiency through leveraging new technologies and enhancing our processes.
• We have been trialing the use of electric vehicles (EVs) in certain distribution centers for yard moves.

Additionally, we are beginning to consider ways we can support home office and certain distribution center Associates who wish to arrive to work in a more emissions-friendly manner. For example, TJX Canada has had EV charging stations at its home office for a number of years, and in Fiscal 2024 they doubled the number of charging stations installed to make room for increased demand. TJX Europe offers EV charging at its Home Office in the U.K. and has also installed EV charging stations at one of its processing centers. In the U.S., we have begun installing EV charging stations at certain home office locations. We also organize carpool programs and provide regular shuttles between our Massachusetts home office locations and the local commuter train station.

Additional Environmental Sustainability Initiatives

In recent years, teams around the business have undertaken various environmental sustainability initiatives that also contribute to helping support local ecosystems around the world. Some examples include:

• For many years, TJX Canada has purchased some carbon offsets to help offset certain emissions resulting from its operations. In Fiscal 2024, a portion of these offsets helped support the Katingan Peatland Restoration and Conservation Project. The project seeks to protect and restore valuable ecosystems and habitat for endangered wildlife in Central Kalimantan Province in Indonesia.
• TJX has worked with local companies to install beehives at our office locations in both Framingham, Massachusetts and Watford, England. These programs aim to support plant health and biodiversity in the surrounding local areas. The first batches of honey were harvested in Fiscal 2024.
• In 2024, TK Maxx in the U.K. celebrated 20 years of partnership with the Woodland Trust, the U.K.’s largest woodland conservation charity with an aim to play a central role in protecting, restoring, and creating woodland to benefit people, wildlife, and the environment. Since the partnership began, TK Maxx has helped the Woodland Trust plant over 80,000 trees. In Fiscal 2024, TK Maxx supported the Woodland Trust’s Emergency Tree Fund, which aims to plant 50 million trees in the U.K. by 2025.

• Where feasible and available in the marketplace, we have sourced certain products that contain paper, paperboard, and wood materials that have undergone Forest Stewardship Council (FSC) certification, such as FSC-certified wood for some outdoor furniture sold at our HomeGoods stores and FSC-certified paper stock for certain stationery, gift wrap, and gift card styles sold across our stores globally. Learn more about our FSC sourcing on the Sustainable Sourcing page of our website.

Climate Data Reporting & Third-Party Verification

TJX has engaged an independent third party to provide verification at the limited assurance level on a portion of our GHG emissions data since Fiscal 2015:

• In Fiscal 2024, approximately 99.9% of our global Scope 1 and 98% of our global Scope 2 (location-based) emissions data were third-party verified. Additionally, in Fiscal 2024, 97% of our global Scope 2 (market-based) emissions data was third-party verified.
• TJX has received assurance over the GHG inventory for Scope 1 and Scope 2 (location and market-based emission factors) for the U.S., Canada, and Europe for our Fiscal 2024 reporting period, in accordance with AIPCA (AT-C 105 and AT-210).
• We also received third-party verification for approximately 77% of our global Scope 3 Category 6 (Business Travel) and 92% of our global Scope 3 Category 9 (Downstream Transportation and Distribution) emissions data in Fiscal 2024.

To learn more about our environmental sustainability data and reporting, and to access our response to the latest CDP Climate Change Questionnaire, visit our Reporting & Disclosures page.

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