Sustainability Report 2021 53 Sustainability Report 2021 53 The latest report from the United Nations Intergovernmental Panel on Climate Change (IPCC) advises that our window to keep global warming well below 2° Celsius in pursuit of 1.5° is closing rapidly, and the current trajectory for global emissions reductions is not going to get us there. At Applied, we recognize we have a unique opportunity to accelerate the transformation to a sustainable digital economy. At the same time, we embrace our responsibility to significantly reduce our own environmental impacts. In 2021, we gained a more holistic picture of those impacts by quantifying our Scope 3 emissions inventory. This paves the way for setting validated science-based targets in alignment with the Paris Agreement. We also completed Phase 2 of our Climate Risk Assessment, giving us more insight into climate-related risks to our business. These insights help inform the strategic investments and operational improvements to grow our resilience for a rapidly evolving climate. In alignment with the Task Force on Climate Related Financial Disclosures (TCFD), we are sharing insights from this analysis below and in our 2021 Report Annex , along with insights from the physical risk assessment we completed in 2020. As our energy demands increase with the expansion of our facilities and increasing production demands, we continue to drive strong progress against our global 100% renewable electricity goal. We are 80% of the way toward our goal in the U.S., primarily through leveraging partnerships with community choice aggregators (CCAs) and purchasing renewable energy certificates (RECs) through our utility providers. Now, with our White Mesa Wind Virtual Power Purchase Agreement (VPPA) operational, we are well positioned to reach our U.S. renewable electricity sourcing goal and offset a large portion of our U.S. footprint. We are working to reduce our footprint as we advance technology to accelerate a sustainable digital economy. Protect our Planet KEY HIGHLIGHTS > Reported our carbon impact and risks in line with TCFD recommendations > Quantified our 2019 Scope 3 emissions inventory baseline. Conducted and achieved third-party assurance > Reduced Scope 1 and Scope 2 (market-based) emissions by 28%, progress that was accelerated by a Virtual Power Purchase Agreement with White Mesa Wind, Texas > Generated more than 286 MWh of renewable electricity on-site at our facilities in Singapore, Texas, India, and China Sustainability Report 2021 53 INTRODUCTION PURPOSE PEOPLE PLANET Climate and Energy Environmental Health and Safety PROGRESS