Baxter 2021 Corporate Responsibility Report 63 Appendix 2030 Corporate Responsibility Goals Corporate Responsibility Commitment Empower Our Patients Protect Our Planet Champion Our People and Communities Introduction Cross-Cutting Commitments INTRODUCTION 1 As of Dec. 31, 2021. Approximately 10,000 of those employees joined Baxter in December 2021 as a result of our acquisition of Hillrom. 2 “Smart device” counts are based on internal estimates and include those devices that can collect and communicate data and are connected or connectable to a network. The approximate 2 million estimate (post-Hillrom acquisition) includes 1.3 million as previously disclosed by Hillrom at the JPMorgan Healthcare Conference on Jan. 15, 2020. CORPORATE RESPONSIBILITY COMMITTMENT 1 Estimated energy and financial savings as well as GHG emissions avoidance are calculated for the 12 months following project implementation. EMPOWER OUR PATIENTS Reach More Underserved Kidney Patients 1 Liyanage, et al. Lancet . 2015; 385(9981) 2 Of the 30 countries with PD Ambassadors, 21 are developing countries. PROTECT OUR PLANET Achieve Carbon Neutrality for Direct Operations by 2040 1 Scope 1 emissions are direct GHG emissions from sources we own or control, such as on-site fuel combustion. Scope 2 emissions are indirect GHG emissions associated with purchased electricity and steam for owned/controlled facilities. Baxter’s Scope 1 and Scope 2 emissions have been verified by a third party to a reasonable assurance level (see verification statement ). The market-based method is used for Scope 2 unless otherwise stated. See Baxter Value Chain Energy Usage and GHG Emissions for additional detail. 2 The savings described in this paragraph are calculated on an annualized basis (12 months from each project completion date), though savings should continue beyond one year. 3 In 2021, we used biomass fuels to generate energy in boilers at two Baxter locations: one in the United States and one in Italy. During the year, emissions from the Baxter- operated biomass boilers equaled 151,000 metric tons CO 2 . In accordance with the GHG Protocol, these are not included in reported Scope 1 and Scope 2 emissions. However, also in accordance with the GHG Protocol, we include CO 2 e emissions from the CH 4 and N 2 O components of biomass combustion in our reported Scope 1 emissions. 4 U.S. Environmental Protection Agency Green Power Partnership Fortune 500 Partners List. As of Oct. 25, 2021. 5 The savings described below for projects in Haina, Dominican Republic, and Lessines, Belgium, are calculated on an annualized basis (12 months from each project completion date), though savings should continue beyond one year. 6 Participating manufacturing facilities are those with energy costs that exceed $200,000 per year. 7 This includes electricity, fuel and purchased steam consumed by Baxter-managed and Baxter-operated facilities; it excludes energy related to company-operated vehicles. 8 Estimated energy and financial savings as well as GHG emissions avoidance are calculated for the 12 months following project implementation. 9 Includes manufacturing facilities with energy costs that exceed $200,000 per year. 10 Baxter’s Scope 3 emissions relate to activities within the company’s value chain, but outside of our direct control. These emissions are based on various assumptions and estimates and are verified by a third party to a limited assurance level (see verification statement ). See Baxter Value Chain Energy Usage and GHG Emissions for detail . 11 Includes Scope 1 and Scope 3 GHG emissions for product transport. 12 These savings are calculated on an annualized basis (12 months from the project completion date), though savings should continue beyond one year. Implement Strategic Water Management Plans 1 One cubic meter equals 1,000 liters or 264 gallons. 2 The WRI water tool defines baseline water stress as total annual water withdrawals (municipal, industrial and agricultural) expressed as a percentage of total annual available flow. Higher values indicate more competition among users. Low: Less than 10% of the water available to agricultural, domestic and industrial users is withdrawn annually. Low-Med: Between 10 and 20% of the water available to agricultural, domestic and industrial users is withdrawn annually. Med-High: Between 20 and 40% of the water available to agricultural, domestic and industrial users is withdrawn annually. High: Between 40 and 80% of the water available to agricultural, domestic and industrial users is withdrawn annually. Extremely High: More than 80% of the water available to agricultural, domestic and industrial users is withdrawn annually. Advance Sustainable Procurement 1 These percentages do not add up to 100% due to rounding. Implement Strategic Materials and Waste Management Plans 1 The savings described below for projects in Cuernavaca, Mexico, and Lessines, Belgium, are calculated on an annualized basis (12 months from each project completion date), though savings should continue beyond one year. 2 Certain waste streams at two facilities in Europe have government-mandated requirements. These waste streams are excluded from the total. Appendix: Endnotes PROTECT OUR PLANET ( CONTINUED ) Environmental, Health, Safety and Sustainability Governance and Additional Disclosures 1 The environmental data included in this report are based on 119 reporting locations, of which 51 are manufacturing, 20 are warehouse, and 48 are other types of locations, such as compounding centers, administrative or clerical. Several of the reporting units comprise multiple locations that report as a single entity. For example, in 2021, Baxter’s 45 renal therapy sites in Colombia reported as a single entity. The reporting scope excludes certain leased facilities for which environmental performance data are not available or are not material to Baxter’s overall environmental performance. The health and safety data included in this report are based on 214 reporting locations. The Environmental, Health, Safety and Sustainability (EHS&S) information reported covers 100% of Baxter’s operations unless noted otherwise. EHS&S data are revised to reflect acquisitions, divestitures and plant closings as well as to incorporate any corrections necessary due to additional data verification activities (such as EHS&S audits). Data were not revised to include Hillrom. See the Baxter Data Summary for additional details. 2 For the purpose of this calculation, manufacturing includes pharmaceutical locations; and our sites in Sondalo, Italy, and Grosotto, Italy, are counted separately. Outside of manufacturing locations, the balance of 15 ISO certified sites also includes compounding (6), offices (5), planning and fulfillment (3), and research and development (1). 3 These audits consisted of 11 ISO external audits, 11 external compliance audits and 4 joint EHS&S & Engineering critical infrastructure reviews. CHAMPION OUR PEOPLE AND COMMUNITIES Invest in Underserved Communities Globally 1 Variations in Baxter’s annual product donations are due to fluctuations in community needs, the need and volume of disaster relief response, the regulatory environment, manufacturing processes and changes in product mix availability and marketing. We identify opportunities to donate and respond to community and humanitarian aid partner requests as appropriate. Value of products donated (provided at no cost) is provided by partners based on wholesale acquisition cost at the time of donation. This number may be greater or less than the value of Baxter products distributed during the year by our relief partners. 2 As of June 2022, based on an hourly rate of $29.95 per volunteer hour, as estimated by Independent Sector ( https://independentsector.org/value-of-volunteer-time-2021/ ); volunteer hours are self-reported by Baxter employees. 3 Variations in Baxter’s annual product donations are due to fluctuations in community needs, the need and volume of disaster relief response, the regulatory environment, manufacturing processes and changes in product mix availability and marketing. We identify opportunities to donate and respond to community and humanitarian aid partner requests as appropriate. Value of products donated (provided at no cost) is provided by partners based on wholesale acquisition cost at the time of donation. This number may be greater or less than the value of Baxter products distributed during the year by our relief partners. Achieve Top Quartile Workplace Safety Performance 1 Injuries Baxter is targeting to reduce in the near term include ergonomics; and slips, trips and falls. 2 Each year, profiles untouched for the previous three years are removed from the active database. 3 See Baxter Data Summary endnotes 24–27 for definitions of the injury and illness metrics used in this section. 4 Major incidents are defined as those that result in an employee or contractor being hospitalized overnight (for more than observation), sustaining an amputation or dying. Increase Representation of Women and Ethnic Minorities in Leadership Roles 1 “Ethnic minorities,” within the context of our 2030 goal, refers to underrepresented minority groups in the United States, including Black/African American, Latino/Hispanic, Asian American, Native American and two or more races. 2 Our 2030 goals related to increasing the representation of women and ethnic minorities in leadership roles are based on assumptions about labor market conditions. “Labor market conditions” refers to the availability of talent in the marketplace in the communities where we operate and serve, and specifically looks at census data, as well as our internal pipeline. These labor market conditions can change over time so we will continue to monitor and adjust our goals as needed. CROSS-CUTTING COMMITMENTS Ethics and Compliance 1 Those who did not receive the questionnaire included (for example) shop floor employees, employees without Baxter email addresses, consultants, contractors and other service providers. 2 The number of cases closed during any given year typically includes some cases opened before the beginning of the year. Diversity, Equity and Inclusion 1 As of Dec. 31, 2021. Approximately 10,000 of those employees joined Baxter in December 2021 as a result of our acquisition of Hillrom. 2 Calculations represent the Board’s composition on June 27, 2022. 3 Underrepresented groups: employee populations that are inadequately represented and disproportionately lower than in the general population (e.g., gender, race/ethnicity, disability, LGBTQ+, generation, veteran status). 4 Jan. 1, 2021, through Dec. 31, 2021. “Economic output” includes revenues earned by suppliers and businesses in the company’s supply chain and their communities. “Indirect” includes impacts at the businesses from which suppliers (and their suppliers) purchase goods and services. “Induced” includes impacts generated in the communities of the suppliers’ employees associated with purchases made by these employees and jobs supported through those purchases. Privacy and Data Protection 1 Training is applied according to valid Baxter email. Employees without a Baxter email address, such as those in manufacturing, do not participate.