Torrid : 2022 Sustainability Report

2022 Sustainability Report

CEO LETTER

ABOUT

SUSTAINABILITY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

ABOUT REPORT

SASB TEARSHEET

Table of Contents

Letter from the CEO	3	Case Study: ThredUp	15
About Torrid	4	Social Responsibility	16
Our Products	4	Labor and Human Rights
Approach to Sustainability	5	in the Supply Chain	17
Diversity and Inclusion	19
Materiality	6
Workplace Health, Safety
Management and Oversight	6
and Wellness	22
Environmental Responsibility	7	Employee Engagement
Sustainable Materials Sourcing	8	and Development	24
Chemical Management	9	Empowering Communities	26
Packaging Impacts	10
Energy and Carbon	11
Waste and Recycling	12
Water	13
Logistics & Distribution	14

Governance	27
Corporate Governance	28
Business Ethics and Integrity	29
Risk Management	30
Data Protection and Security	31
About This Report	32
SASB Tearsheet	33

2	2022 TORRID SUSTAINABILITY REPORT

CEO LETTER

ABOUT

SUSTAINABILITY

ENVIRONMENTAL

SOCIAL

GOVERNANCE

ABOUT REPORT

SASB TEARSHEET

A Letter from the CEO

I'm delighted to share with you Torrid's FY 2022 Sustainability Report, marking our ongoing commitment to incorporating environmental, social, and governance (ESG) considerations into our operations.

Over the last year, we've made significant progress in our sustainability journey, and I extend my heartfelt thanks to our dedicated team members who have been instrumental in propelling our initiatives forward.

Some highlights from our 2022 progress include:

• We conducted our first carbon footprint, covering our Scope 1 and 2 emissions. This collaborative effort from our finance, distribution, and facilities teams established a robust framework to identify relevant carbon-generating activities and set up a best in class approach to measuring our baseline. This crucial data will guide our strategies for reducing carbon emissions across our retail locations, distribution center, and corporate office.
• We engaged in a deep review of our supply chain to better understand how our vendors are managing their environmental and social risks. The goal is to harness innovative technologies to lessen the environmental impact of our products. This initiative involves thorough ESG audits, corrective actions, and training, complemented by on-site inspections of factories, mills, and wash facilities.
• Prioritizing the health and well-being of our employees remains a core focus. We introduced greater workplace flexibility, expanded mental health resources, and created more opportunities for team members to pursue their passions. These are just a few of the reasons people love to work for Torrid, and we are grateful for the more than 7,000 employees that make us who we are today.

While I am immensely proud of what we have achieved this year, I acknowledge that our journey towards sustainability is an ongoing process. We remain steadfast in our commitment to exploring every avenue with our stakeholders to further our ESG goals.

Your support and involvement are invaluable to us. Thank you for being an integral part of our journey towards a more sustainable future.

Sincerely,

Lisa Harper

Lisa Harper, Torrid CEO

CEO LETTER

ABOUT

SUSTAINABILITY		ENVIRONMENTAL		SOCIAL		GOVERNANCE		ABOUT REPORT		SASB TEARSHEET

About Torrid

Torrid is a direct-to-consumer apparel and intimates brand in North America that provides an unparalleled fit and experience, empowering curvy women to love the way they look and feel.

Torrid designs for stylish women in sizes 10-30, and we are maniacally focused on fit, which is our customer's highest priority. Through our

e-commerce platform and our physical footprint of over 600 stores, we offer customers high quality products across a broad assortment. Our offering includes tops, bottoms, denim, dresses, intimates, activewear, footwear and accessories. Our inclusive and welcoming environment drives long-standing relationships with our customers, and we serve over 3 million active customers today.

Torrid began operations in April 2001, and we opened our first store location in the Brea Mall in Brea, California. At the end of FY 2022, we operated 611 stores in 50 US States and Puerto Rico, and had an international presence of 28 stores in Canada. In addition to stores, we have a broad reaching e-commerce business that makes up the majority of our sales, and we are proud to offer a truly unified commerce model. Our inclusive and welcoming environment drives loyal relationships, as we have over 7,000 employees globally, and serve almost 4 million active customers.

OUR PRODUCTS

Apparel

We offer a broad assortment of apparel that spans across tops, bottoms, dresses, denim, and outerwear. We launch new and innovative product lines that excite our customer, including our exclusive Lovesick, Betsey Johnson, and Studio collections.

Intimates

Torrid Curve, our intimates brand, combines both comfort and sexy with an extensive collection that includes lingerie, lounge, sleep, swim, and activewear.

We deliver world-class fit across all of our products and offer patent pending technology in our most popular bras.

Accessories

We offer a compelling assortment of accessories that complement every outfit in our customer's closet. Our product line includes wide-width shoes, boots, jewelry, and other accent pieces.

4	2022 TORRID SUSTAINABILITY REPORT

CEO LETTER		ABOUT

SUSTAINABILITY

ENVIRONMENTAL		SOCIAL		GOVERNANCE		ABOUT REPORT		SASB TEARSHEET

Approach to Sustainability

5	2022 TORRID SUSTAINABILITY REPORT

CEO LETTER		ABOUT

SUSTAINABILITY

ENVIRONMENTAL		SOCIAL		GOVERNANCE		ABOUT REPORT		SASB TEARSHEET

MATERIALITY

In 2022, we completed a materiality assessment to better understand the environmental, social, and governance (ESG) issues that impact our business success and our stakeholder relationships. The process involved a peer group analysis, interviews with key Torrid executives and managers, and an analysis of sustainability reporting frameworks and industry ESG standards. We have used these results to guide the disclosures in this report.

Our top fifteen categories of focus (in alphabetical order) are:

• Business Ethics and Integrity
• Chemical Management
• Corporate Governance
• Data Protection and Security
• Diversity and Inclusion
• Employee Engagement and Development
• Empowering Communities
• Energy and Carbon
• Labor and Human Rights in the Supply Chain
• Logistics and Distribution
• Packaging Impacts
• Risk Management
• Sustainable Materials Sourcing
• Waste and Water
• Workplace Health and Safety

MANAGEMENT AND OVERSIGHT

• The Sustainability Steering Committee comprises a cross-functional group of senior leaders from finance, human resources, distribution/logistics, supply chain, merchandising, marketing, retail operations, legal, IT, and others. The Committee's role is to develop Torrid's ESG strategy and provide appropriate resources for implementation.
• The Nominating and Corporate Governance Committee (NCGC) of the Board of Directors (BOD) has oversight over Torrid's sustainability performance.

6	2022 TORRID SUSTAINABILITY REPORT

CEO LETTER		ABOUT		SUSTAINABILITY

ENVIRONMENTAL

SOCIAL		GOVERNANCE		ABOUT REPORT		SASB TEARSHEET

Environmental Responsibility

Transition to low-impact raw materials

Optimize energy, waste, and water across the value chain

Rethink and reduce packaging

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CEO LETTER		ABOUT		SUSTAINABILITY

ENVIRONMENTAL

SOCIAL		GOVERNANCE		ABOUT REPORT		SASB TEARSHEET

SUSTAINABLE MATERIALS SOURCING

Torrid is constantly seeking ways to source renewable recyclable, recycled, and alternative materials. We do this by not only looking at

Using Data-Driven Analytics to Understand Finishing Impacts

Torrid is using Environmental Impact Measuring (EIM) software to evaluate a range of our denim products, comparing our current finishing processes to traditional finishing processes. This helps us understand where we have made improvements and where additional steps can be taken to further minimize the environmental impact of our products.

category-level impacts, such as "recycled rubber" or "organic cotton", but also at a product level.

0-33	34-66	66+
Low	Medium	High
Impact	Impact	Impact

Overall

Score

Water

Consumption

Liters of water

per garment

produced.

Energy	Chemical
Consumption	Impact
Energy	ZDHC MRSL
consumed in	conformance
one finishing	level and
process	hazard

Worker's

Health

Ergonomic

and risk

factors

	Production
Blue Grotto	Process
Jeggings
Traditional
	Production
	Process
Chateau	Production
Process
Grey
Boyfriend
Traditional
Jeans
Production
	Process
Avalon	Production
Process
Pull On
Jeans	Traditional
	Production
	Process
	Production
Blue Grotto	Process
Lean Jean
Traditional
	Production
	Process

Learn more about EIM's methodology

8	2022 TORRID SUSTAINABILITY REPORT

CEO LETTER		ABOUT		SUSTAINABILITY		ENVIRONMENTAL		SOCIAL

Moving to Sustainable Trims

In addition to the garment itself, every piece of clothing also comes with associated "trims" - like woven labels, tags, shoe bags, carding, and wrapbands. Since 2020, we have been working with our vendors to transition to trims with more sustainable materials.

DTR Leggings	Jewelry	Shoes
Started in 2020	Started in 2021	Started in 2022
Today, 50% of DTR leggings use	Today, 100% of Torrid's jewelry uses	Today, 100% of Torrid's shoes are sold
wrapbands with 100% recycled	carding made from FSC-certified
with 100% recycled content shoebags.
material.	fiber.

CHEMICAL MANAGEMENT

We work with suppliers to prioritize the safe use of chemicals and, where appropriate, the transition to safer and more ecologically-conscious chemicals. Surveys of our top apparel suppliers1 found that:

		Suppliers that…	2021	2022
		Use alternatives to stones for "stone washing" fabric	73%	63%
		Use lasers for wash treatment	42%	53%
		Have switched to chemicals with less impact to the environment	69%	100%
		and human health
		Use alternatives to traditional bleach	67%	63%
		Use eco-friendly or alternative dyes with less environmental impact	62%	100%
		1 See page 32 for scope and methodology of our apparel supplier survey.
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GOVERNANCE		ABOUT REPORT		SASB TEARSHEET

CEO LETTER		ABOUT		SUSTAINABILITY

ENVIRONMENTAL

SOCIAL		GOVERNANCE		ABOUT REPORT		SASB TEARSHEET

PACKAGING IMPACTS

One of our key sustainability focus areas has been reducing our packaging impact. While there is further work to do, we are pleased with the progress we have made to date.

In Our Supply Chain

• Outbound shipments from our Distribution Center to Stores are sent in boxes made of 17% recycled content
• All corrugated box shipments from our Distribution Center include at least 10% post consumer recycled content, and any virgin fiber is SFI Certified

In Our Stores

• All three sizes of Torrid's store shopping bags are made with a minimum of 40% post consumer material and are 100% recyclable
• Messaging on the bags clearly communicates recyclability to customers

e-Commerce

• Approximately 65% of our online orders are shipped to customers in polybags, which are made of 50% recycled plastic
• Approximately 35% of our online orders are shipped in corrugated cardboard boxes, which are made of 32% recycled content
• In 2022, we transitioned from non-recyclable to fully recyclable packing slips in our e-commerce packages

10	2022 TORRID SUSTAINABILITY REPORT