GOVERNANCE
Committed from the Top Down
Commitment to sustainability begins at the very top of HBI with our Board of Directors. In carrying out its responsibilities, the Board reviews and assesses our long-term strategy and strategic, competitive and financial performance.
The Board is ultimately responsible for the oversight of our risk management function and uses committees to assist in its risk oversight function. Our Board and its committees receive regular updates on and oversee the development and execution of our Environmental, Social and Governance (ESG) strategy, including those related to sustainability, health and safety, and human rights.
The Governance and Nominating Committee coordinates oversight of our ESG strategy and communications, as well as our corporate governance policies and practices; and also assesses whether relevant ESG risks, opportunities and disclosure obligations are regularly reviewed and considered by the appropriate Board committees. The Talent and Compensation Committee is primarily responsible for the “People” pillar of our ESG strategy, which includes oversight of talent development, labor management supply chain labor standards, and health and safety.
The Audit Committee has primary responsibility for the Planet and Product pillars of our ESG strategy, including the aspects of our ESG strategy designed to address risks and strategies related to climate change, water usage, waste management, greenhouse gas emissions, chemical management, raw material sourcing product, packaging, and product liability.
Oversight of our sustainability program at the executive level rests with our Executive Vice President of Global Operations, Mike Faircloth, as well as a sustainability executive steering committee that meets quarterly to assess the program’s effectiveness and progress.
Day-to-day responsibility for sustainability rests with our Global Sustainability Officer, Teddy Mendoza, who manages our program globally. He is responsible for ensuring organizational alignment and evaluating enterprise-wide sustainability risks, managing our environmental and social initiatives and partnerships, and driving our long-term sustainability goals.
Our global Sustainability Consortium drives the implementation of our sustainability strategy at a global level. The consortium is organized into three workstreams, each aligned with one of our three Sustainability Pillars. Each Pillar workstream is composed of leaders representing both global functions and regional geographies. These teams meet monthly to track the progress of various initiatives aligned with our sustainability strategy. The full Sustainability Consortium convenes quarterly to provide strategic oversight and ensure alignment across all pillars.
For more information on our Board of Directors, the Board’s oversight responsibilities, and other corporate governance issues,
please see the proxy statement for our 2025 Annual Meeting of Stockholders.
Enterprise Risk Management
We continue to evaluate the actual and potential impacts of climate-related risks and opportunities on our business, strategy and financial planning.
We fully appreciate that as well as doing the right thing for our people and planet, our sustainability program is key to running our business the right way. It’s how we make sure our values are at the heart of everything we do.
Issues such as climate change, water stress and unethical labor or human rights practices within supply chains can pose risks to our business and our ability to develop our products in the ethical way we promise to produce them. That’s why we assess and evaluate these risks and why they are a key part of our ongoing Enterprise Risk Management process.
HBI has long had an in-depth and comprehensive enterprise risk management (ERM) process that is overseen by the Audit Committee and reported to our Board of Directors. Our Board and senior management teams have had direct oversight of our sustainability, corporate responsibility and human rights programs for many years, and the scope of our ERM program includes our Global Ethics and Compliance program, our factory audit programs, and a broad sustainability review.
In 2020, we engaged with Anthesis, a global sustainability consulting leader, to map our most significant weather-related risks. We modeled various scenarios that were identified in this work which can be explored further in our Disclosures page, which has details on our Taskforce on Climate-Related Financial Disclosures (TCFD).
In 2023, we further analyzed climate-related risks & opportunities. We evaluated both transitional and physical climate-related risks to determine the relative importance of each climate-related risk in alignment with our ERM framework. Transition risks are associated with the transition to a low-carbon global economy and include the assessment of current and emerging regulatory, technology, legal, market and reputational risks. Physical risks come from the direct impacts of climate change. They can be short-term events such as extreme weather events and more long-term changes in weather patterns.
Enterprise Risk Management
We continue to evaluate the actual and potential impacts of climate-related risks and opportunities on our business, strategy and financial planning.
We fully appreciate that as well as doing the right thing for our people and planet, our sustainability program is key to running our business the right way. It’s how we make sure our values are at the heart of everything we do.
Issues such as climate change, water stress and unethical labor or human rights practices within supply chains can pose risks to our business and our ability to develop our products in the ethical way we promise to produce them. That’s why we assess and evaluate these risks and why they are a key part of our ongoing Enterprise Risk Management process.
HBI has long had an in-depth and comprehensive enterprise risk management (ERM) process that is overseen by the Audit Committee and reported to our Board of Directors. Our Board and senior management teams have had direct oversight of our sustainability, corporate responsibility and human rights programs for many years, and the scope of our ERM program includes our Global Ethics and Compliance program, our factory audit programs, and a broad sustainability review.
In 2020, we engaged with Anthesis, a global sustainability consulting leader, to map our most significant weather-related risks. We modeled various scenarios that were identified in this work which can be explored further in our Disclosures page, which has details on our Taskforce on Climate-Related Financial Disclosures (TCFD).
In 2023, we further analyzed climate-related risks & opportunities. We evaluated both transitional and physical climate-related risks to determine the relative importance of each climate-related risk in alignment with our ERM framework. Transition risks are associated with the transition to a low-carbon global economy and include the assessment of current and emerging regulatory, technology, legal, market and reputational risks. Physical risks come from the direct impacts of climate change. They can be short-term events such as extreme weather events and more long-term changes in weather patterns.