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Gap Inc.

Headquarters San Francisco, California, USA
CEO Glenn Murphy
Total Revenue $15.9 billion USD
Net Income $778 Million
Reporting Cycle Quarterly
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Summary [login to edit summary]

Gap Inc. consists primarily of: The Gap, Old Navy, Banana Republic and Piperlime. Gap is one of the biggest clothing retailers in the world with their headquarters located in San Fransisco, California, USA . They have over 3,100 stores with more opening each day and their 2006 revenues total $15.9 billion with a net income of $778 million. As a global leader in the retail industry they have focused on being seen a socially responsible company. Their most notable venture was partnering with an HIV /AIDS fund and releasing a line of clothing called the (PRODUCT)RED line; half of the line’s profit goes to support the cause.

In 2005, Gap Inc. participated in the GRI ’s working group to develop an Apparel and Footwear Sector Supplement. The supplement, which complements the GRI ’s general G3 reporting framework, addresses issues specific to the apparel and footwear industries. It was drafted by a multi-stakeholder group, working in conjunction with the GRI , over a nine-month period, beginning in September 2005. The group included approximately 20 members representing a geographically diverse mix of major brands, leading manufacturers, civil society organizations, trade unions, environmental experts and investors.

Gap Inc. has taken several steps towards incorporating sustainability efforts in their processes. In fact they have gone beyond simply looking at internal company objectives and developed energy plants, and organic cotton manufacturing initiative on a community level.

The only negative aspect here, is that Gap’s focus on innovation is still low. They should invest more time and resources in this sector.

Sector: Apparel (Clothing)

Reducing Product/Service Impacts Greenhouse Gases Air Pollution (other than GHG) Energy Use Biodiversity Material Use Waste Water Use Hazardous Spills Environmental Compliance Environmental Expenditures Community Impact Local Procurement Capacity Building Child Labour Indigenous Rights Cancer Research HIV/AIDS Research Human Rights Employee Wages Training and Benefits Employment Equity Collective Bargaining Occupational Health and Safety Military Involvement Customer Health and Safety Accessibility to Product Information Customer Satisfaction Marketing Ethics Customer Privacy Organics Fair Trade Animal Testing Government Assistance Direct Economic Impact Political Contributions Anti-Corruption Anti-Competitive Behaviour CEO Compensation Category Breakdown
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5.20/9 0.2%
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Rating_6
Environment [login to edit summary]

Indicators
  1. Reducing Product/Service Impacts (1)
  2. Greenhouse Gases (5)
  3. Air Pollution (other than GHG)
  4. Energy Use (5)
  5. Biodiversity (1)
  6. Material Use (5)
  7. Waste (10)
  8. Water Use (2)
  9. Hazardous Spills
  10. Environmental Compliance (1)
  11. Environmental Expenditures

Gap Inc. has established clear goals to reduce the company’s energy use, and the company has reduced its impact on global warming (i.e. its greenhouse gas emissions or climate footprint). Gap has also implemented a water quality program for all of their denim laundry facilities to reduce the impact of the extensive dyeing and treatment process on the water systems of local communities.

Rating_5
Society [login to edit summary]

Indicators
  1. Community Impact (17)
  2. Local Procurement
  3. Capacity Building
  4. Child Labour (4)
  5. Indigenous Rights
  6. Cancer Research
  7. HIV/AIDS Research (3)
  8. Human Rights (8)
  9. Employee Wages Training and Benefits (11)
  10. Employment Equity (7)
  11. Collective Bargaining (2)
  12. Occupational Health and Safety (4)
  13. Military Involvement

Gap Inc. has been recognized by the Ceres-ACCA for reporting sustainability information in a complete and credible way. Gap is an industry leader in their initiatives to attain factory compliance, worker empowerment, capacity building and long-term partnerships to reduce the impact of factory relocations.

Gap must continue to look deeper in their supply chain to the workers who produce the raw materials that go into Gap’s products. More analysis is required of the effectiveness of the changes Gap has implemented to improve factory working conditions.

Rating_5
Product Responsibility [login to edit summary]

Indicators
  1. Customer Health and Safety (1)
  2. Accessibility to Product Information
  3. Customer Satisfaction (1)
  4. Marketing Ethics
  5. Customer Privacy (1)
  6. Organics (1)
  7. Fair Trade
  8. Animal Testing (2)

Gap Inc. confirms its restriction of animal testing of their cosmetic products as well as the use of several chemical dyes in their clothing. The company’s reporting is scant in areas of marketing ethics, fair trade and accessibility to product information.

Rating_5
Corporate Citizen [login to edit summary]

Indicators
  1. Government Assistance
  2. Direct Economic Impact (1)
  3. Political Contributions (1)
  4. Anti-Corruption (1)
  5. Anti-Competitive Behaviour
  6. CEO Compensation (1)

Financial information for Gap Inc., including revenues, expenses and CEO compensation, is readily available. Gap could provide more concrete examples of its participation in political processes and government advocacy, as they stress their willingness to be involved in these processes.