A Message from our CEO

STEVEN B TANGER

DIRECTOR AND CEO, TANGER FACTORY OUTLET CENTERS, INC.

In 2018, we celebrated our 25th year as a public company. I am pleased to present Tanger Outlets’ 2018 Corporate Responsibility Report for this milestone year. In our third report, which covers results from calendar year 2018, we highlight Tanger’s environmental, social and governance (ESG) activities, and provide our stakeholders with additional information about our company’s ESG performance.

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

In 2018 we accomplished and made progress on our 2017 goals, and chief among these is our commitment to transparency and public reporting of ESG matters. In this report, you will find examples of Tanger’s commitment to sustainable business practices:

Our ENVIRONMENTAL EFFORTS continue to have a positive impact on energy and water usage. In 2018 we decreased water usage by more than 7% in stable centers, those in operation for the full years of comparison, which was driven by a pilot program for irrigation controls. Electricity usage in 2018 was down 2.8% in stable centers, driven by LED lighting (LED) retrofits. We increased free electric vehicle (EV) charging use by more than 50%.

Our COMMUNITY ENGAGEMENT remains strong, with 2018 charitable giving through our TangerCARES Program exceeding $1.1 million, and more than $19.2 million since 1994. We partner with communities throughout the portfolio, and contribute both financially and through our volunteerism program, which allows each full-time employee 40 hours per year for volunteer service.

Our COMMITMENT TO A DIVERSE, COLLABORATIVE, ENTREPRENEURIAL WORKPLACE is a part of one of our identified material issues – Culture. In 2018 we increased the diversity of our Board by electing Susan Skerrit, the second female board member. This brings our Board gender composition to 22% female. We are proud to announce that as of December 31, 2018, out of 645 employees, female employees made up 70% of our corporate employees, 88% of field employees and 50% of our Executive Leadership Team.

As we accelerate our efforts in the ESG areas impacting our business, we continue to work to not only improve our long-term performance, but also to increase transparent communication with investors, employees and the communities we serve.

I am pleased to share this comprehensive report on our 2018 progress and hope you enjoy reading about our efforts, and the places, partnerships and people that make it possible.

Sincerely,

STEVEN B. TANGER
CHIEF EXECUTIVE OFFICER

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OUR APPROACH TO CORPORATE RESPONSIBILITY

At Tanger, we recognize that corporate responsibility is essential to our success and to creating long-term value for our stakeholders, including shareholders, retail partners, employee team members, community partners, and customers, and to protecting the future of the environment.

We continue to look for opportunities to integrate sustainability into our business practices as we address the material issues impacting Tanger and our stakeholders.

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 with shareholders, retailers and 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.

CORPORATE RESPONSIBILITY GOALS—AT A GLANCE

Goal

STATUS

PLACES

GREENHOUSE GAS EMISSIONS AND ENERGY EFFICIENCY

Improve greenhouse gas (GHG) efficiency by 8% by 2020

Improve portfolio-wide energy efficiency by 8% by 2020

Full LED transition by 2022

Achieve 6.8 million kWh of annual production from solar systems in at least five centers by 2020

Installation of EV charging stations 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 20% of the portfolio by 2020

WATER USAGE AND WASTE DIVERSION

Reduce portfolio-wide water usage by 20% by 2022 (including full transition to cloud-based controlling and monitoring system)

Achieve 60% waste diversion by 2022

PARTNERSHIPS

OUR SHAREHOLDERS

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

OUR RETAILERS

Identify collaborative opportunities with retailers to create synergies around sustainability efforts

Support retail partners with innovative tools, processes and approaches

COMMUNITY
ENGAGEMENT

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

PEOPLE

OUR
CUSTOMERS

Be the “First Choice” for shoppers by providing them with the best brands, best prices and best customer experience, as measured through a comprehensive customer survey by 2020

Install Wifi at 95% of Tanger properties by 2019

Install children’s play areas, Tanger Golf or splashpad areas in more than 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 continuous employee development

Conduct a Pay Equity Analysis by 2020

GOVERNANCE
AND ETHICS

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, GRESB by 2020

Develop and publish a Human Rights Policy by 2019

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

Develop an environmental statement or policy by 2020

Key: Achieved In progress New goal in 2018

PLACES

OUR ENVIRONMENTAL FOOTPRINT

Tanger recognizes the impact of its environmental footprint and the positive impact that energy management and other responsible practices can have on both the environment and company performance. We continuously identify and assess opportunities for innovative, environmentally-friendly technologies, from the design/build stage through use and retrofitting, as appropriate.

Examples include LED retrofitting, solar and renewable energy sources, water minimization, and waste reduction. These innovations, in addition to responsible and rigorous energy monitoring and management, have helped Tanger reduce energy costs and environmental impact.

Environmental Footprint Goals

Tanger focuses on energy efficiency through monitoring and analysis of energy consumption at each property. To guide our efforts, we’ve established the following goals and objectives. In our third year of reporting, we have seen substantial progress toward meeting targeted goals that will continue to guide our efforts.

GREENHOUSE GAS EMISSIONS AND ENERGY EFFICIENCY*

  • Improve Greenhouse Gas efficiency by 8% by 2020
  • Improve portfolio-wide energy efficiency by 8% by 2020
  • Full LED transition by 2022
  • Achieve 6.8 million kWh of annual production from solar systems in at least five centers by 2020
  • Installation of EV charging stations 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

WATER USAGE AND WASTE DIVERSION*

  • Reduce portfolio-wide water usage by 20% by 2022 (including full transition to a cloud-based controlling and monitoring system)
  • Achieve 60% waste diversion by 2022

* For stabilized centers — those in operation for the full years of comparison

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 2018 Corporate Responsibility Report.

PARTNERSHIPS

STAKEHOLDER ENGAGEMENT

We are committed to delivering long-term value to our stakeholders, including shareholders, retail partners, community partners, employee team members and customers, and to identifying how our ESG priorities and material issues impact each group. Tanger proactively engages with these key stakeholder groups on a regular basis. Our corporate responsibility commitment is demonstrated by engaging stakeholders as we identify priority issues and communicate performance.

Engagement with stakeholders helps us identify and refine the ESG issues that are priorities for Tanger. By engaging with stakeholders directly, we are better able to keep a real-time pulse on the issues and concerns they express. This engagement allows us to monitor and manage ESG issues through a series of internal processes that are outlined in the adjacent table.

Stakeholder Engagement at Tanger

STAKEHOLDER

LEVEL OF ENGAGEMENT

TYPE OF ENGAGEMENT

O

A

P

I

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

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 mall 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

  • Listening sessions and direct 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, etc.)

  • 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)

SHAREHOLDER
GOALS

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

  • Provide shareholders with greater transparency and access to ESG information including, but not limited to inclusion of a Content Index including GRI Core, SASB and GRESB, in the annual Corporate Responsibility Report by 2020

RETAILER
GOALS

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

  • Identify collaborative opportunities with retailers to create synergies around sustainability efforts
  • Support retailer partners with innovative tools, processes and approaches

COMMUNITY
ENGAGEMENT GOALS

We have established goals and objectives to guide our community engagement.

  • Multi-year, cumulative contribution of $20 million* to selected community and national charities by 2020

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

  • 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

To learn more about our programs regarding our stakeholders and community engagement, please refer to our 2018 Corporate Responsibility Report.

OUR COMMUNITY ENGAGEMENT

TangerCARES

Tanger strives to make the communities we serve better places for everyone to live, work and raise families. Whether it’s at our corporate headquarters in Greensboro, NC, or our portfolio of centers across the United States and Canada, Tanger contributes time, talent and funding to support our communities. Active engagement in the communities where Tanger team members live and work is a cornerstone of being a good corporate citizen.

We call this community support TangerCARES, and we focus primarily on the three issues listed below.

PINK Campaign
TangerKIDS
Hometown HEROES

PEOPLE

OUR CUSTOMERS

We connect with our customers and pride ourselves on listening to customers, then delivering the value that comes with offering desired brands at reasonable prices.

OUR EMPLOYEE TEAM MEMBERS

We could not accomplish any of what you have read about in this report without our amazing employee team members. The 645 full- and part-time employees who make up Tanger are critical to our success.

CUSTOMER GOALS

Shoppers are a critical link in 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 goals and objectives.

  • Be the “First Choice” for shoppers by providing them with the best brands, the best prices and the best customer experience, as measured through a comprehensive customer survey by 2020
  • Install Wifi at 95% of Tanger properties by 2019
  • Install children’s play areas, Tanger Golf or splashpad areas in more than 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 continuous employee development
  • Conduct a Pay Equity Analysis by 2020

We accomplish these goals by focusing on the following areas:

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

ENCOURAGING AN INCLUSIVE, COLLABORATIVE AND ENTREPRENEURIAL CULTURE

The next element that helps Tanger establish itself as a “First Choice” employer brand is creating a culture where team members feel appreciated and welcome. Tanger is committed to pursuing diverse approaches to deliver development and advancement opportunities, with a focus on increasing employee appreciation and satisfaction. We accomplish this by creating an inclusive, collaborative, entrepreneurial culture that emphasizes personal initiative, values diversity and continuous learning, and encourages an open exchange of ideas that generates innovation across the business.

To learn more about our people programs, please refer to our 2018 Corporate Responsibility Report.

GOVERNANCE & ETHICS

Governance is an anchor for analyzing the ESG health of a company. Tanger has consistently sought to be transparent with stakeholders and this extends to our ESG impacts, including our goals and levels of achievement.

Our commitment to operating with the highest level of integrity begins at the Board of Directors level and is evident throughout the organization. Our governance framework, as well as our continuously evolving policies and adoption of best practices, reflect our values and support our corporate responsibility approach.

GOVERNANCE GOALS

We established goals and objectives to clearly communicate governance policies, processes and ethics practices that guide our actions.

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

To learn more about our governance programs and the role of the Board of Directors in ESG oversight, please refer to our 2018 Corporate Responsibility Report or our investor relations website.