25 ISSUED: NOV. 2021 Timber products, like wood, cork and paper, are materials used in our products and packaging with the potential for negative environmental impacts. We partner with a number of suppliers who use certification and tracing programs to responsibly source timber products. Programs like the Forest Stewardship Council (FSC) Controlled Wood, the Program for the Endorsement of Forest Certification (PEFC) and Sustainable Forest Initiative (SFI) Certified Sourcing standards set standards for responsible forest management by applying conservation values, pesticide policies and climate change adaptation strategies to support responsible forest management. Read more about supplier certifications in our Driving Responsibility Through Our Value Chain report . Additionally, Ste. Michelle uses labelling, packaging and shipping materials from some suppliers who are in compliance with FSC, SFI and PECF certification programs; in these cases, the identification is on the packaging material. Natural cork closure suppliers used by Ste. Michelle are members of the Cork Quality Council (CQC), a non-profit organization founded to promote education and improve quality assurance performance for the wine and cork industries. According to these suppliers, and the work of the CQC, the cork groves of Portugal and the Mediterranean Basin contain some of the world’s highest levels of forest biodiversity, including endemic plants and endangered species. We are also working to increase the sustainability of materials we use to communicate with ATC21+. Direct mail sent to ATC21+ is made from 10% post-consumer waste fiber while Team Marlboro uses 100% post-consumer waste fiber. Additionally, 95% of all paper stocks used by Altria for direct mail are made with chain of custody fiber and certified through FSC, SFI and PECF certification programs. We are also replacing shipping boxes used to mail point of sale (POS) materials to our field sales force (FSF) with recycled content. Recycled content conserves natural resources and is unbleached, reducing the risk of harmful chemicals ending up in our waterways. It also weighs less than virgin paper, reducing energy used in shipping. By the end of 2021 we expect to use 85% recycled material in shipping boxes and 100% by 2022. AGDC is also phasing out plastic materials from some pieces of POS and leveraging new technology to sustainably manage POS quantities and disposal. AGDC is developing artificial intelligence capabilities to identify POS needs from store photos to improve efficiency and reduce waste from overproduction. In 2020, AGDC added a recycling center location finder to the POS ordering site so members of the sales force can recycle used POS. EMPLOYEE SPOTLIGHT Capitalizing on Simplification and Sustainability in Sales Ike Konstantinakos, Manager, Trade Marketing Innovation, AGDC In 2020, we received feedback that the FSF had a lot of printed POS materials to manage. There were so many different types of POS, so we said, “what can we do about that?” We set a goal to reduce the total number of POS materials by 20 percent each month. We worked to optimize and simplify how we communicate with ATCs at point of sale and we were able to cut out about 800 items for our FSF and achieve our goal. This reduced POS clutter and drove efficiencies so the FSF could be more effective, more nimble and accomplish more in less time in stores. Today, we continue to find ways to simplify our approach, reduce the number of items we use, create less waste and apply more environmentally friendly practices. The best part is simplification and sustainability have become more of a focus. Each one of our POS materials now includes a recycle code and we’ve worked to increase training and awareness so that all FSF members understand how they can contribute to our sustainability initiatives. + Read more about sustainability in sales on Altria.com By the end of 2021 we expect to use 85% recycled material in POS shipping boxes and 100% by 2022.