21 ISSUED: NOV. 2021 Supplier Partnership for Responsible Water Use Altria conducts an annual comprehensive water risk assessment to examine physical, regulatory and reputational water risks to Altria’s companies’ direct operations and their value chains. Based on our 2020 risk assessment, several of our international tobacco growing regions and a few of our domestic growing regions were considered high risk for overall water stress, resulting in 26.9% of tobacco volume in 2020 sourced from water-stressed areas. These findings helped to prioritize conversations with suppliers in water-stressed areas related to our environmental expectations. For domestic growing regions, the risk assessment findings served as an input to determine regions where we direct charitable contributions for water conservation projects. For Ste. Michelle, the water risk assessment indicated most of eastern Washington is at high or extremely high water stress. Ste. Michelle wineries in Washington, Oregon and California use drip irrigation on their vineyards. It minimizes water loss by efficiently delivering water to the plant’s roots, as compared to overhead systems that water the entire vineyard. 95% of the company’s contract growers also employ water conservation practices to reduce water intensity. Weather stations and soil moisture probes monitor water use and eliminate wasted water. These practices have helped Chateau Ste. Michelle’s Cold Creek, Canoe Ridge Estate and Northstar vineyards achieve third-party sustainable certification for LIVE and Salmon Safe since 2009. Ste. Michelle uses the most water in its operations out of all of our companies, accounting for over 78% of water used in 2020. We plan to re-set our long-term environmental targets to account for the sale of Ste. Michelle, which we sold in October 2021. Altria's Leaf Procurement organization also provides ongoing training and support on sustainable agriculture practices to improve water stewardship across our value chain. We use grower communications, training and assessments like GAPC Certification Program to encourage domestic direct contracted growers to use production best practices to mitigate water risk. We engage with stakeholders like the Farm Labor Practices Group and the North Carolina Agribusiness Council to improve implementation and reporting of good agricultural practices. And our international leaf suppliers participate in STP with a focus on positive environmental impact and continuous improvement. Community Water Partnerships We know that runoff from farmland into streams or rivers can hurt water quality. We partner with the National Fish and Wildlife Foundation (NFWF) to understand how agriculture, like tobacco farming, affects watersheds. In 2020, Altria and NFWF celebrated 10 years of partnership in water conservation, sustainable agriculture and habitat restoration in regions aligned with Altria’s agricultural value chain in the United States. At the core of the partnership is a shared priority to ensure clean, abundant water for people and the environment in the communities Altria and their employees call home. Beginning with early investments in NFWF’s Chesapeake Bay watershed programs, the partnership has since grown beyond the mid-Atlantic and now includes the Cumberland Plateau in Kentucky and Tennessee, longleaf pine ecosystems of the southeast, and the Columbia Basin in Washington and Oregon. Since 2010, Altria has donated over $14 million to educate farmers, implement soil health management practices, plant riparian buffers around waterways, and other conservation projects that protect natural habitats and reduce the environmental impact of agricultural practices on local watersheds. In 2020, we supported a new environmental justice initiative through the James River Association (JRA). According to JRA, more than one-third of all Virginians rely on the James River and its tributaries for water, commerce and recreation. JRA has a history of reaching underserved communities through providing environmental education programs in Title I schools, advocating for equitable access to the James River in Richmond city planning, and creating walkable greenspaces in traditionally underserved communities. This year JRA added environmental justice as a principal for setting advocacy priorities and they’ve launched an internal cultural initiative to further integrate diversity, equity, inclusion and justice values into their mission and programs. 680 miles of stream restored More than 8 billion gallons of water conserved 1 million acres of land restored 10 years of partnership outcomes with NFWF