Gap Inc: Reduce Plastic Microfiber Shedding

WHEREAS: Plastic threatens the world’s oceans, wildlife, and human health, representing a growing market and regulatory risk.[1] As plastic pollution reaches crisis levels, investors are concerned about how plastic-related impacts may affect company resilience, cost-structure, and long-term value.[2]

Textiles represent the third-largest market for plastic, consuming roughly 14% of total plastic production.[3] Synthetic plastic fibers represent 63% of global fiber production, equal to 80 million tons, and shed large volumes of microfibers during both manufacturing and consumer use.[4] This results in 500,000 tons of plastic microfibers from textiles entering the world’s oceans annually,[5]making the textile industry one of the largest contributors to global microplastic pollution.

Microfibers are found in every major ocean and freshwater environment; remote polar regions and seabeds; indoor air; tap and bottled water, and foods. Microfibers are even found in human brains.[6] Scientific research links microplastic exposure to cardiovascular disease,[7] cancer, Parkinson’s disease, and dementia.[8] Growing public awareness and mounting scientific evidence have elevated microplastic pollution from an environmental issue to a material business risk, exposing apparel companies to reputational damage, regulatory pressure, and potential litigation.

The European Union’s Zero Pollution Action Plan includes a target to reduce microplastic pollution by 30% by 2030; and forthcoming regulations are expected to require companies to measure, report and mitigate microfiber pollution across their supply chains.[9] As a global apparel brand with significant exposure to synthetic fibers, Gap faces rising transition risks, including compliance costs, supply-chain disruptions, and potential loss of market access if it is unprepared for regulatory shifts.

Asset managers are increasingly scrutinizing plastic-related risks, particularly given their implications for brand value, consumer trust, and long-term operational resilience. Reducing microfiber pollution is therefore both a risk-mitigation strategy and a value-creation opportunity.

Importantly, viable and cost-effective solutions exist. Research highlights interventions that can materially reduce microfiber pollution including filtration technology in textile mills, material and design innovations that reduce shedding, new testing methodologies, and manufacturing changes.[10]

Meanwhile, competitors are beginning to act. Under Armour has committed that 75% of its fabrics will be low-shed materials by 2030, signaling that leadership on microfiber reduction is becoming a differentiator in the apparel sector.[11]

By setting clear goals to reduce microfiber shedding, Gap can mitigate regulatory and reputational risks, strengthen supply-chain readiness, preserve market share, and meet the expectations of consumers and investors increasingly attuned to microplastic pollution. Early action would also position the Company to benefit from emerging standards rather than reacting to them once compliance deadlines are imposed.

BE IT RESOLVED: Shareholders request that Gap Inc. issue a report, at reasonable expense and excluding proprietary information, evaluating whether opportunities to reduce microfiber pollution from its garments will strengthen long-term value and mitigate emerging material risks.

[1] https://wwfint.awsassets.panda.org/downloads/wwf_pctsee_report_english.pdf

[2] https://www.unep.org/resources/pollution-solution-global-assessment-marine-litter-and-plastic-pollution

[3] https://www.regulations.gov/document/NOAA-NOS-2022-0061-0002

[4] https://www.regulations.gov/document/NOAA-NOS-2022-0061-0002

[5] https://www.eea.europa.eu/publications/microplastics-from-textiles-towards-a

[6] https://hscnews.unm.edu/news/hsc-newsroom-post-microplastics-human-brains#:~:text=University%20of%20New%20Mexico%20Health,more%20personal%2C%E2%80%9D%20he%20said

[7] https://www.nejm.org/doi/full/10.1056/NEJMoa2309822

[8] https://today.duke.edu/2025/06/microplastics-are-everywhere-heres-what-duke-research-doing-about-health-concerns

[9] https://www.ropesgray.com/en/insights/alerts/2024/02/macro-regulation-of-microplastics

[10] https://www.5gyres.org/microfiberplaybook; https://www.nature.org/en-us/about-us/where-we-work/united-states/california/stories-in-california/microfiber-action-alliance/?vu=microfibers

[11] https://about.underarmour.com/en/stories/2023/12/under-armour-s-breakthrough-fiber-shed-test-method-now-available.html

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