Sustainability Report 2021 66 We embrace our unique opportunity to shape and empower a more inclusive and sustainable future by effecting change across the technology industry. Equally, we own our responsibility to lessen our environmental impacts and enable our customers’ and suppliers’ impact reductions. In 2021, global supply chain disruptions coupled with an explosive demand in the semiconductor industry put historic pressures on our business. Yet we continued to deliver on commitments to our customers, suppliers, and the planet, driving solid progress against our 3x30 and SuCCESS2030 goals. Our Design for Sustainability Center of Excellence, now in its second year, is proving to be an invaluable sustainable innovation engine to accelerate energy efficiency improvements and water, waste, and chemicals reductions across our product portfolio. Furthering our commitment to circular innovation, we are expanding our efforts to keep tools in use longer by improving their repairability and growing our portfolio of recovered and refurbished service parts. We invest in innovating better, more sustainable, and right-sized packaging options that use less material and have multiple useful lives. Our suppliers are integral to achieving our sustainability and social impact agenda. We offer training and resources to help our suppliers deliver on our ESG expectations and conduct periodic supplier audits and assessments to verify their compliance. Our commitment to advancing diversity, equity, and inclusion extends to our supply chain. We are expanding our network of suppliers to better reflect the communities we serve and to unleash the power of diversity in all aspects of our innovation. Innovate for Progress KEY HIGHLIGHTS > Partnered with customer TSMC to create a system to verify the efficacy of energy-saving improvements > Conducted 86 webinars in two time zones to help suppliers close gaps across our ESG focus areas > Launched Design for Distribution task force to improve planning and development of smarter packaging strategies using less materials and/or materials that are more reusable and recyclable > Saved 271,000 pounds of crate materials through new, lighter-weight crates (on track to save 1 million pounds by end of 2022) > Piloted Logistics Tracking System to track, collect, and return packaging materials for reuse Sustainability Report 2021 66 INTRODUCTION PURPOSE PEOPLE PLANET PROGRESS Design for Sustainability Promoting the Circular Economy Product Safety Supply Chain Responsibility