The first annual environmental, social, and governance (ESG) report from American Eagle Outfitters, Inc., outlining the company's Building a Better World strategy and advancements, was released recently. In addition, AEO updates its sustainability objectives and, in memory of late board member Steven A. Davis, renames the REAL Change Scholarship the Steven A. Davis Scholarship for Social Justice.

The company's Planet, People, and Practices activities are highlighted in the report's 20-year history of ESG accomplishments. Notably, AEO achieved a significant water reduction objective two years ahead of schedule by reducing its water consumption per pair of jeans manufactured by 36%. Additionally, in 2021, over 50% of the AE and Aerie brand lines and 95% of the company's jeans were produced under the Real Good label, which signifies products made using the company’s highest environmental standards.

Jay Schottenstein, Executive Chairman of the Board and Chief Executive Officer of AEO, said that the company's first ESG report underscores their commitment to creating a better world, ensuring greater transparency, communication, standardized reporting and, most importantly, outlining our goals for ongoing improvement. They are taking deliberate steps to safeguard their world, look after its citizens, and conduct business with the utmost honesty by adhering to the finest standards. Every step forward in achieving their objectives opens up new possibilities. They'll keep setting higher standards and creating a more just and sustainable future for their employees, clients, and communities.

AEO announced detailed climate targets in 2019 following several years of environmental activity. The business formalized its ESG strategy in 2021 and created a steering committee and cross-functional ESG working group under the direction of the board of directors.

The late AEO board member Steven Davis, who tragically passed away in July 2022, has been remembered by the renaming of the REAL Change Scholarship to the Steven A. Davis Scholarship for Social Justice. Mr. Davis was a respected counselor to the company's executive team and a strong believer in the power of inclusion, diversity, equity, and access to create successful communities. The scholarship, which will be available in 2020, represents a $5 million investment in expanding educational possibilities for AEO colleagues who are leading projects for social justice, equality, and the eradication of prejudice. The second class of 15 awardees, which was announced in 2022, brought the total number of scholars who are eligible to receive up to $40,000 apiece for secondary school to 30.