Baxter 2021 Corporate Responsibility Report 25 Protect Our Planet Corporate Responsibility Commitment Introduction 2030 Corporate Responsibility Goals Empower Our Patients Appendix Champion Our People and Communities Cross-Cutting Commitments Implement Strategic Water Management Plans Score: B * CDP Water Security *Based on 2020 data. **Compared with 2020 and indexed to revenue. 2030 CORPORATE RESPONSIBILITY GOAL : Implement strategic water management plans at prioritized manufacturing locations.* * Identify prioritized locations using a risk-based approach by the end of 2023. PERFORMANCE: In 2021, we collected data from all of our manufacturing sites, which we will use as we work toward our 2023 milestone of prioritizing locations for water management. We also continued upgrading our manufacturing infrastructure and modernizing our operations to improve efficiency and reduce operational risk moving forward. APPROACH AND PROGRESS A healthy water supply is critical for the well-being of our patients, the communities where we operate and our business. Although water management is a global concern, it must be addressed at the local and regional levels. We consider the physical, regulatory and reputational risks associated with water man - agement at our sites as we focus on opportunities to improve water efficiency in our operations, protect watersheds and provide access to clean water within local communities. In 2021, we identified and allocated the resources we should need to achieve our goal. We also engaged internal stakeholders to uncover information and processes that will advance our work in this area and to establish partnerships across Baxter as we developed our roadmap and began working toward our commitment to implement strategic water management plans. We are performing a comprehensive review of our manufacturing sites to understand the local context of each. This includes the impact that our operations, including wastewater discharge, have on the current local water supply and additional opportunities to improve our water efficiency. This information will be critical as we work to prioritize our top water management opportunities by the end of 2023. We have also started making changes that will modernize our operations and reduce water use at some of our facilities with the highest usage. These changes may increase reported water use initially due to the introduction of new equipment and processes, but they will ultimately help us mitigate water-related risks. In addition, in 2021, we continued our longstanding water management activities across the company, including efficiency and wastewater management at our manufacturing sites as well as community water projects. Baxter transparently reports the water-related impacts of our business in this report (see the following page and the Baxter Data Summary) and in our annual response to CDP Water Security , the most recent of which received a B based on 2020 data. This CDP Water Security score is in the management band and was higher than the average scores for the North America region and the Medical Equipment & Supplies Sector, both of which were B-. Apex Companies, LLC has provided assurance on the content in this section. 6.6% reduction in water use** 7.7% reduction in water use for Baxter manufacturing sites in water-stressed areas** Protect Our Planet Corporate Responsibility Commitment Introduction 2030 Corporate Responsibility Goals Empower Our Patients Appendix Champion Our People and Communities Cross-Cutting Commitments