Tanger Outlets - Corporate Responsibility

A Message from our CHIEF EXECUTIVE OFFICER

STEVEN B. TANGER

DIRECTOR AND CEO, TANGER FACTORY OUTLET CENTERS, INC.

I am pleased to present Tanger Outlets’ 2019 Corporate Responsibility Report. In our fourth report, which covers results from calendar year 2019, we highlight Tanger’s environmental, social and governance (ESG) efforts and accomplishments, and provide additional information on our company’s ESG performance.

Tanger actively embraces corporate responsibility. Our practices reflect our culture, demonstrate resilience, and focus on long-term value creation for all of our stakeholders, including shareholders, retail partners, employee team members, customers and community partners.

When we began reporting on ESG in 2016, we set ambitious goals for measuring success, and in 2019, we accomplished many of these goals.

A snapshot of Tanger’s 2019 accomplishments includes:

Our ENVIRONMENTAL EFFORTS continue to positively impact energy usage. In 2019, we decreased greenhouse gas emissions at stable centers, those with comparative data for the full year, by 5.7% compared to 2018, and exceeded our 2020 goal of 8% with an overall reduction of 11.4% since we began reporting in 2016. Free electric vehicle (EV) charging use increased by more than 40% over 2018 and we exceeded our goal to have 20% of our properties LEED Silver certified by 2020. By year-end 2019, more than 30% of Tanger properties had earned LEED Gold certification.

Our COMMUNITY ENGAGEMENT commitment remains strong. We exceeded our charitable giving goal through our TangerCARES Program, contributing over $1.2 million in 2019, with a cumulative total of more than $20.4 million since 1994. Our volunteerism program allows each full-time employee 40 hours per year for volunteer service; and in 2019, Tanger employees served on more than 50 nonprofit Boards of Directors as we partnered with communities across Tanger’s portfolio.

Our COMMITMENT TO A DIVERSE, COLLABORATIVE, AND ENTREPRENEURIAL WORKPLACE supported an increase in the diversity of our employee base as well as our Board of Directors. As of December 31, 2019, female employees made up 87% of field employees and 53% of our Executive Leadership Team. Ethnic minorities made up nearly 23% of Tanger’s workforce in 2019. Tanger’s Board gender composition was 20% female, with 10% ethnic diversity. Additionally, we performed an internal gender pay gap analysis in 2019, comparing positions with similar roles and responsibilities, that considered tenure, education, work experience and performance.

While our 2020 Corporate Responsibility Report will detail our full 2020 pandemic response, we wanted to share our COVID-19 Safety Protocols, which are outlined in Appendix A.

Sincerely,

STEVEN B. TANGER
CHIEF EXECUTIVE OFFICER
TANGER FACTORY OUTLET CENTERS, INC.

OUR APPROACH TO CORPORATE RESPONSIBILITY

Corporate responsibility is essential to Tanger’s success and to building a resilient, sustainable business that creates long-term value for all stakeholders.

We take a strategic approach to corporate responsibility that aligns with our business strategy. We continually seek out opportunities to integrate sustainability into our business practices, while addressing material issues.

Strong governance and ethics practices form the foundation of our corporate responsibility approach.

PLACES

ENVIRONMENTAL FOOTPRINT

Practices that enhance and differentiate our properties while considering the sustainability of our business and our planet.

PARTNERSHIPS

SHAREHOLDERS, RETAILERS AND COMMUNITY ENGAGEMENT

Mutually beneficial relationships and partnerships with shareholders and retailers, as well as nonprofit partners that facilitate improved quality of life for the communities we serve.

PEOPLE

CUSTOMERS AND EMPLOYEES

The long-term, trusting relationships with team members and the consumers we serve.

OUR MATERIAL ISSUES – ESG PRIORITIES AND IMPACTS

We begin by identifying opportunities and risks arising from material issues that impact Tanger’s business and inform our environmental, social and governance (ESG) strategy. We then translate these material issues into operational priorities and processes across the company, and within functional areas. We openly engage with our key stakeholders to identify priority areas, while supporting the long-term health of the company. We also leverage external frameworks such as GRI, GRESB, SASB and CDP, along with stakeholder, executive and board engagement, to help identify key ESG issues.

ESG PRIORITIES - MATERIAL ISSUES INCLUDE:

Company Reputation

Culture

Environmental Risks

Operational Efficiencies

Diversity and Equal Opportunity

Corporate Governance

STAKEHOLDER ENGAGEMENT AT TANGER

Tanger depends on a network of stakeholders to succeed, including shareholders, retail partners, community partners, employee team members and customers. We regularly engage with these key stakeholder groups to ensure that our ESG priorities and material issues remain relevant and impactful, and that we continue to deliver long-term value to all.

This engagement helps us identify and refine priority ESG issues, keeping a real-time pulse on the issues and concerns they express. This allows us to monitor and manage ESG issues through a series of internal processes that are outlined in the table below.

STAKEHOLDER	LEVEL OF ENGAGEMENT				TYPE OF ENGAGEMENT
STAKEHOLDER	O	A	P	I	TYPE OF ENGAGEMENT
SHAREHOLDERS					Quarterly earnings calls Annual shareholder meeting One-on-one dialog with individual investors and institutions, including: NAREIT REITweek NAREIT REITworld CITI Global Property CEO Conference Non-deal Roadshows hosting one-on-one meetings Outreach to shareholders representing 80% of Tanger's outstanding shares (late 2018 and early 2019)
RETAIL PARTNERS					Retailer conferences, surveys and listening sessions One-on-one dialog with corporate and center retailer representatives Conversations and speaking engagements at industry events like ICSC, RECON
CUSTOMERS (SHOPPERS)					Customer engagement surveys and conversations Customer service centers at each center, staffed during all hours when property is open to support retailer and customer communication Live customer support hotline 5 – 7 days/week, based on seasonality Active engagement of shopper feedback through social media channels, online review sites, Tanger Mobile App, and onsite surveys
COMMUNITY PARTNERS					Open dialog with partners including local governments, planning boards, visitor bureaus, chambers of commerce, citizen groups and non-governmental (NGO) partners Board service by local Tanger leaders on NGO and community boards and committees
EMPLOYEE TEAM MEMBERS					Performance reviews Formal reporting mechanisms for issues (e.g., fraud, harassment) Wellness, benefits and financial workshops, job skill and leadership training Online portals for benefits, wellness and development information New hire surveys
Organizational Level (O) Asset Level (A) Project Level (P) Individual Levels (I)

CORPORATE RESPONSIBILITY GOALS—AT A GLANCE

		Goal
PLACES	GREENHOUSE GAS EMISSIONS AND ENERGY EFFICIENCY	Improve Greenhouse Gas (GHG) emissions efficiency by 8% at stable centers by 2020
		Improve energy efficiency by 8% at stable centers by 2020
		Full LED transition by 2022
		Install EV charging at all centers by 2020 and double baseline kWh by 2020
		All centers certified as “Storm Ready” by the U.S. Department of Commerce and National Weather Service by 2022
		LEED Performance Certification at the Silver level or greater for more than 20% of the portfolio by 2020
		Create an Environmental Management System by 2020
		Create a Climate Change Policy Statement by 2020
		Become an EPA ENERGY STAR Partner by 2021
	WATER USAGE AND WASTE DIVERSION	Reduce water usage by 20% at stable centers by 2022 (including full transition to cloud-based controlling and monitoring system)
	WATER USAGE AND WASTE DIVERSION	Achieve 60% waste diversion by 2022
PARTNERSHIPS	OUR SHAREHOLDERS	Provide shareholders with greater transparency and access to ESG information, including, but not limited to a GRI Content Index, SASB, CDP and GRESB, in the annual Corporate Responsibility Report by 2020
	OUR SHAREHOLDERS	Become a member of GRESB and UNGC by 2022
	OUR RETAILERS	Identify collaborative opportunities with retailers to create synergies around ESG efforts by 2021
		Engage top brands in conversations regarding ESG perspectives and programs, including opportunities to increase visibility of their ESG efforts by 2021
		Support retail partners with innovative, data driven tools and resources by 2022
	COMMUNITY ENGAGEMENT	Multi‐year, cumulative contribution of $20M to selected community and national charities by 2020
	COMMUNITY ENGAGEMENT	Engage employees to participate in relevant community organizations and volunteer an average of 100 hours per year at each Tanger location, for 4,000 hours/year portfolio-wide
PEOPLE	OUR CUSTOMERS	Be the “First Choice” for shoppers by providing them with the Best Brands, Best Price and Best Experience®
		Install Wifi at 95% of Tanger properties by 2019
		Install children’s play areas, Tanger Golf or splashpad areas in 20 locations by 2022
	OUR EMPLOYEE TEAM MEMBERS	Strengthen Tanger’s diverse, collaborative, entrepreneurial culture by refining and clarifying core values, implementing programs that demonstrate these values in actions; incorporate into Performance Management system by 2019
		Develop and execute Tanger’s Talent Management processes to maximize performance and provide direction for continued employee development
		Conduct an internal Gender Pay Gap Analysis by 2020
		Conduct a Pay Gap and Pay Equity Analysis by 2022
		Disclose occupational health and safety approach by 2021
		Complete employee engagement survey by 2020
		Form a Diversity and Inclusion Council with representation from across the company by 2020
GOVERNANCE AND ETHICS	BUSINESS CONDUCT	Establish an executive ESG committee by 2019
		Conduct an updated ESG Material Issues Assessment by 2020
		Formally identify environmental issues on the Enterprise Risk Management risk register for regular review by 2019
	TRANSPARENCY	Increase levels of transparency to meet increasing expectations of investors and stakeholders
		Report ESG data and goals using international and industry standards and frameworks, e.g., GRI, SASB, CDP, UNGC and GRESB by 2020
		Develop and publish a Human Rights Policy by 2019
		Develop an environmental statement or policy by 2020
	Key: Achieved In progress New goal in 2019

PLACES

OUR ENVIRONMENTAL FOOTPRINT

Practices that enhance and differentiate our properties while considering the sustainability of our business and our planet.

Environmental Footprint Goals

We have established goals and objectives to measure energy efficiency, water and waste diversion, and other operational areas as we continue to monitor and analyze performance across the portfolio of Tanger properties.

Tanger’s efforts to positively impact energy management, water conservation and waste reduction require rigorous monitoring and management, as well as continual improvements and innovation.

GREENHOUSE GAS EMISSIONS AND ENERGY EFFICIENCY

Improve Greenhouse Gas (GHG) emissions efficiency by 8% at stable centers by 2020*
Improve energy efficiency by 8% at stable centers by 2020*
Full LED transition by 2022
Install Electric Vehicle (EV) charging at all centers by 2020 and double baseline kWh by 2020
All centers certified as “Storm Ready” by the U.S. Department of Commerce and National Weather Service by 2022
LEED Performance Certification at the Silver level or greater for more than 20% of the portfolio by 2020
Create an Environmental Management System by 2020
Create a Climate Change Policy Statement by 2020
Become an EPA ENERGY STAR Partner by 2021

WATER USAGE AND WASTE DIVERSION

Reduce water usage by 20% at stable centers by 2022 (including full transition to a cloud-based controlling and monitoring system)*
Achieve 60% waste diversion by 2022

New Goals

Create an Environmental Management System by 2020
Create a Climate Change Policy Statement by 2020
Become an EPA ENERGY STAR Partner by 2021

* Stable centers are defined as the 29 centers that have been in operation for the full years of 2019, 2018, 2017 and 2016 and with minimal or no construction projects.

To learn more about our programs on our environmental footprint, greenhouse gas emissions and energy efficiency, and water usage and waste diversion, please refer to our 2019 Corporate Responsibility Report.

PARTNERSHIPS

OUR SHAREHOLDERS, RETAILERS AND COMMUNITY ENGAGEMENT

Mutually beneficial relationships and partnerships with shareholders and retailers, as well as nonprofit partners that facilitate improved quality of life for the communities we serve.

OUR SHAREHOLDERS

Transparency regarding financial and operating metrics and access to ESG policies, programs and performance is an important goal. In late 2018 and early 2019, we reached out to shareholders representing 80% of our outstanding shares and received feedback from shareholders representing approximately 60% of our shares. Meeting with and listening to shareholders is a great way to stay connected to their priorities and helps as Tanger continually refines our approach, including ESG processes.

SHAREHOLDER GOALS

We have established goals and objectives to measure our progress towards sustainable, long-term and mutually beneficial partnerships with shareholders.

Provide shareholders with greater transparency and access to ESG information, including, but not limited to a GRI Content Index, SASB, CDP and GRESB, in the annual Corporate Responsibility Report by 2020
Become a member of GRESB and UNGC by 2022

OUR RETAILERS

Tanger continually looks for ways to collaborate and support our retail partners, using best practices that make Tanger their “First Choice” partner. This includes strategies and solutions that create advantages for retailer success in today’s diverse consumer marketplace. We believe that purchases made in brick and mortar stores are returned less frequently than purchases online, and many of our retail partners tell us factory stores are their most profitable channel. Tanger centers are well-positioned across the U.S. and Canada and are typically located near or outside major metropolitan areas or in popular domestic tourist destinations, so that we reach the most consumers in highly desirable markets.

RETAILER GOALS

We have established goals and objectives to measure our progress towards sustainable, long-term and mutually beneficial partnerships with retailers.

Identify collaborative opportunities with retailers to create synergies around ESG efforts by 2021
Engage top brands in conversations regarding ESG perspectives and programs, including opportunities to increase visibility of their ESG efforts by 2021
Support retail partners with innovative, data driven tools and resources by 2022

OUR COMMUNITY ENGAGEMENT

Tanger is committed to making the communities we serve vibrant and connected places to live, work or raise families. To accomplish this, Tanger contributes time, talent and funding from our portfolio of centers, as well as our corporate headquarters in Greensboro, NC.

Active engagement is demonstrated through employee volunteering and service on nonprofit boards – Tanger employees served on more than 50 nonprofit boards in 2019. We also engage in community partnerships that include use of Tanger facilities for community gatherings and as staging areas for disaster response efforts.

COMMUNITY ENGAGEMENT GOALS

We have established goals and objectives to measure success, guide our community engagement and facilitate improved quality of life for the communities we serve.

Multi-year, cumulative contribution of $20M to selected community and national charities by 2020*
Engage employees to participate in relevant community organizations and volunteer an average of 100 hours per year at each Tanger location, for 4,000 hours/year portfolio-wide

* Contributions from all sources including customer donations and fund-raising efforts

TangerCARES

Supporting nonprofits and causes nationally, and in communities where Tanger employees live and work, is known as TangerCARES. Tanger served communities in need in 2019 by continuing our focus on breast cancer research and local breast cancer treatment and support centers – the PINK Campaign; by supporting our children and schools through the TangerKIDS program; and by recognizing and engaging our Hometown HEROES.

Tanger contributed a total of $1.2 million to communities in 2019 and, cumulatively, more than $20.4 million over the past quarter century.

PINK Campaign

$935K given in 2019 to fight against breast cancer

over $17.5M given since inception in 1994

TangerKIDS

205 grants to local schools at 38 locations

$198K given in 2019 to support pre-school through high school programs

nearly $2.9M given since inception in 1997

Hometown HEROES

$96K given in 2019 to those who serve and protect us, including firefighters, police officers, armed forces personnel, medical and rescue personnel and federal workers during government shutdown

To learn more about our programs regarding our stakeholders and community engagement, please refer to our 2019 Corporate Responsibility Report.

PEOPLE

CUSTOMERS AND EMPLOYEES

The long-term, trusting relationships with team members and the consumers we serve.

OUR CUSTOMERS

We consistently strive to create a best-in-class experience for our loyal customers. We pride ourselves on connecting with and listening to our customers, then delivering the value that comes with offering the desired brands at a reasonable price.

OUR EMPLOYEE TEAM MEMBERS

Tanger’s 637 full- and part-time employees manage the programs and facilities that make Tanger’s business possible; they are the backbone of our organization. Our diverse, collaborative, entrepreneurial culture is grounded in our core values, and collectively our amazing team members are key in determining Tanger’s ESG performance and its impact on the business.

CUSTOMER GOALS

Shoppers are a critical link to the success of our retail partners as well as the overall success of our centers. To ensure that we engage in shopper interactions that create the best possible customer experience, we have established the following goals and objectives.

Be the “First Choice” for shoppers by providing them with the Best Brands, Best Prices and Best Experience®
Install Wifi at 95% of Tanger properties by 2019
Install children’s play areas, Tanger Golf or splashpad areas in 20 locations by 2022

EMPLOYEE TEAM MEMBER GOALS

We have established goals and objectives to ensure we hire, develop, reward and retain the best team possible.

Strengthen Tanger’s diverse, collaborative, entrepreneurial culture by refining and clarifying core values, implementing programs that demonstrate these values in actions; incorporate into Performance Management system by 2019
Develop and execute Tanger’s Talent Management processes to maximize performance and provide direction for continued employee development
Conduct an internal Gender Pay Gap Analysis by 2020
Conduct a Pay Gap and Pay Equity Analysis by 2022
Disclose occupational health and safety approach by 2021
Complete employee engagement survey by 2020
Form a Diversity and Inclusion Council with representation from across the company by 2020

We accomplish our Employee Team Member goals by focusing on the following areas:

	TALENT ACQUISITION
	ENCOURAGING AN INCLUSIVE, COLLABORATIVE, ENTREPRENEURIAL CULTURE
	TALENT MANAGEMENT & EMPLOYEE DEVELOPMENT
	TOTAL REWARDS

BUILDING A DIVERSE WORKFORCE

We value diversity of all types and appreciate the broad array of perspectives shared, as they allow us to learn and adapt when needed. That’s why we have established a goal to form a Diversity and Inclusion Council with representation from across the company by 2020.

Gender diversity at Tanger is a strength. As of year-end 2019, 53% of our executive leadership team was female, and 70% of our corporate workforce was female. Field employees were 87% female and our Board of Directors was 20% female. In a continued effort to be transparent and share information, Tanger is publicly reporting racial and ethnic diversity information for the first time.

Our success is highly dependent on part-time employees and the institutional knowledge that comes with high retention rates. Our part-time workforce is 55% of our 637-person workforce. At 20%, turnover is significantly below industry averages of 39%, according to the Bureau of Labor Statistics. We are proud that 42% of Tanger’s team members have been with us for five years or longer, and that the average tenure for full-time employees in 2019 was 7.7 years. Turnover in our full-time ranks is low as well, at below 4%.

To learn more about our people programs, please refer to our 2019 Corporate Responsibility Report.

GOVERNANCE & ETHICS

OUR BUSINESS CONDUCT AND TRANSPARENCY

The governance policies and processes, business ethics and corporate values that guide our actions to help us achieve ESG goals and keep us accountable to our shareholders.

/ Governance Documents

GOVERNANCE & ETHICS GOALS

We established goals and objectives to clearly communicate Tanger’s governance policies and processes, and the ethics practices that guide our actions and keep us accountable to shareholders.

Establish an executive ESG Committee by 2019
Conduct an updated ESG Material Issues Assessment by 2020
Formally identify environmental issues on the Enterprise Risk Management risk register for regular review by 2019
Increase levels of transparency to meet increasing expectations of investors and stakeholders
Report ESG data and goals using international and industry standards and frameworks, e.g., GRI, SASB, CDP, UNGC and GRESB by 2020
Develop and publish a Human Rights Policy by 2019
Develop an environmental statement or policy by 2020

Governance and ethics are key indicators of environmental, social and governance (ESG) performance and company health. We believe strong governance policies and practices help differentiate a company from its peers, and transparency in reporting strengthens a company’s ESG position.

Tanger’s commitment to operating at the highest level of integrity begins with the policies and best practices set forth by the Board of Directors and permeates throughout the organization. Tanger’s governance framework, as well as our continuously evolving policies and adoption of best practices, reflect our corporate values and form the foundation for our corporate responsibility approach.

To learn more about our governance programs and the role of the Board of Directors in ESG oversight, please refer to our 2019 Corporate Responsibility Report or our Investor Relations website.