Baxter 2021 Corporate Responsibility Report 9 Corporate Responsibility Commitment 2030 Corporate Responsibility Goals Empower Our Patients Protect Our Planet Appendix Champion Our People and Communities Introduction Cross-Cutting Commitments ESG: Driving Business Value Our corporate responsibility approach focuses on delivering business value by addressing the ESG issues that matter most to our company and stakeholders, while also addressing the key risk factors that may impact the long-term sustainability of our business. Following is a representative sample of how driving progress in corporate responsibility contributes to business value. BUSINESS VALUE DRIVER EXAMPLES Employee Attraction and Retention • We follow a fair and inclusive hiring process, which includes an inclusive candidate sourcing strategy, diverse interview panels and a target to ensure that at least 30% of candidates on the interview slates for roles of manager or above are diverse. • Baxter conducts Best Place to Work surveys, through which our employees rate the company’s workplace across various categories. See summary data in the Baxter Data Summary as well as results related to workplace inclusion. • We believe that our commitment to sustainability, environmental stewardship, and safe and healthy workplaces helps us to attract, engage and retain top talent. Operational Efficiency • In 2021, we implemented 196 energy conservation projects. We estimate these projects will save 33,800 megawatt hours of energy and $3.3 million and avoid 8,800 metric tons carbon dioxide equivalent of greenhouse gas (GHG) emissions annually. 1 See Energy Management. • Recycling at Baxter generated $2.5 million in net income during the year. See Implement Strategic Materials and Waste Management Plans. License to Operate • We maintain global strategies and programs to help ensure that we meet privacy regulations such as the EU General Data Protection Regulation; human rights-related legislation such as the California Transparency in Supply Chains Act of 2010; and product materials restrictions such as the EU RoHS Directive, EU REACH Regulation and EU Medical Devices Regulation. This supports our continued access to key markets. See Materials of Concern, Protecting Human Rights in Our Supply Chain and Privacy and Data Protection. • We prioritize regulatory compliance as the foundation of our environmental, health, safety and sustainability (EHS&S) program. See Environmental, Health and Safety Performance. • Baxter supports communities in need where we have an operational presence through partnerships that address environmental, social and economic needs (such as water access, sanitation and hygiene or WASH projects). See Implement Strategic Water Management Plans. Risk Reduction • We have strengthened our EHS&S governance to identify and mitigate environmental risks; implemented programs to enhance physical infrastructure at our manufacturing facilities; and made substantial capital investments at our critical sites to ensure their operational longevity. See Environmental, Health and Safety Performance. • We identify and manage climate- and water-related risks as part of our global risk management activities, have implemented a GHG emissions-reduction strategy as well as water management and waste mitigation plans and continue to build resiliency across our supply chain. See Achieve Carbon Neutrality for Direct Operations by 2040, Implement Strategic Water Management Plans, and Implement Strategic Materials and Waste Management Plans. • Product and process improvements are designed to enhance patient safety and product quality and decrease risk of regulatory actions. See Continually Improve Manufacturing Capabilities. • Cybersecurity threats and vulnerabilities change rapidly, so we are committed to working with the security research community to verify and respond to legitimate vulnerabilities and partner to strengthen cybersecurity of medical devices. See Privacy and Data Protection. Governance • ESG matters are subject to oversight at the highest levels of Baxter, including our Executive Leadership Team (whose annual incentive compensation is tied, in part, to ESG metrics) and our Board of Directors (with two committees sharing oversight for ESG matters and the Board as a whole reviewing ESG matters at least annually). See Corporate Responsibility Governance and Management. • The diversity of our Board provides key insights related to corporate responsibility and strategic initiatives, operational performance and financial control. See Our Leadership. • We manage environmental aspects and risks, as well as health and safety hazards and risks, in accordance with the most current International Organization for Standardization (ISO) 14001 and ISO 45001 standards, and we provide oversight and assurance for our EHS&S programs through a structured audit process. See Environmental, Health and Safety Performance. Reputation • Maintaining high ethical standards, ensuring strong labor and environmental practices in our supply chain and working to support communities where we have an operational presence all contribute to our corporate responsibility goals and to our reputation as a leading corporate citizen. See Implement Strategic Water Management Plans, Advance Sustainable Procurement, Invest in Underserved Communities Globally , Ethics and Compliance, Human Rights, and Recognition. Revenue • Innovation to enhance patient safety and product quality drives our ability to meet patient needs and ultimately improves health outcomes. See Continually Improve Manufacturing Capabilities. • Customers increasingly consider environmental and social performance in proposal reviews and purchasing decisions. • Our efforts to expand access to care, particularly in the renal space for underserved markets, unlock new opportunities for revenue growth. See Reach More Underserved Kidney Patients.