Baxter 2021 Corporate Responsibility Report 50 Cross-Cutting Commitments Corporate Responsibility Commitment Introduction 2030 Corporate Responsibility Goals Empower Our Patients Protect Our Planet Champion Our People and Communities Appendix COMMUNITIES Baxter works to advance racial justice and equity in our communities by driving advocacy efforts in partnership with community organizations and increasing our spend with minority business enterprises in our supply chain. Supporting Underserved Communities Baxter and the Baxter International Foundation have committed to invest $275 million in underserved communities over the next 10 years to address global health and social challenges, such as increasing access to healthcare, fostering STEM (science, technology, engineering and math) education, and promoting community resilience. Aligned with our ACT initiative, we have provided grants to the American Diabetes Association and the Thurgood Marshall Fund . Learn more in Invest in Underserved Communities Globally . In addition, Baxter is currently partnering with several organizations focused on advancing public policy options related to health disparities. Baxter has a longstanding relationship supporting the Congressional Black Caucus Foundation. Baxter is also partnering with the National Minority Quality Forum and the Congressional Hispanic Caucus Institute to bring more focus to the role that payment and reimbursement can play in achieving better health outcomes for communities of color. Supplier Diversity Baxter develops mutually beneficial relationships with small and diverse suppliers as we strive to increase the diversity of our supplier base. In 2021, we increased our spend with diverse suppliers to 7.3%, up from 5.6%. This included increased spending in all diverse supplier categories except for veteran-owned businesses and small disadvantaged businesses. A third-party review estimates that our spending with diverse suppliers supported $257 million in economic output as well as $72 million in employee income earned and almost 1,200 jobs. The same review showed that when including estimated indirect and induced economic impacts, our spending supported $436 million in economic output as well as about $140 million in employee income and more than 2,400 jobs. 4 We continue to emphasize a strategic approach to increasing spend and deepening relationships with diverse suppliers. In 2021, we sponsored an annual National Minority Supplier Development Council $ 1 89 . 7 million to small businesses $ 72.6 million to minority-owned businesses $ 6.0 million to veteran-owned businesses $ 2 . 6 million to HUBZone-certified businesses $ 3.5 million to service-disabled veteran–owned businesses $ 90.3 million to women-owned businesses $ 2.3 million to small disadvantaged businesses $ SPENDING WITH DIVERSE SUPPLIERS, 2021 * * Spending with suppliers that certify for multiple categories is included in the total for each category. United States and Puerto Rico. (NMSDC) matchmaking event and participated in matchmaking events through the Diversity Alliance For Science in the areas of research and development, professional services and packaging. In 2021, we established a target for our top 50 suppliers to increase diversity among their suppliers and report results. During the year, we also committed $150,000 to support minority-owned businesses impacted by COVID-19 and civil unrest, and we invested $100,000 to provide professional development, learning and training opportunities to Black women. We maintain corporate memberships with many organizations that promote and certify diverse suppliers, such as Disability:IN, National Gay and Lesbian Chamber of Commerce (NGLCC), NMSDC, Chicago NMSDC, Puerto Rico Minority Supplier Development Council and Women’s Business Enterprise National Council. In 2021, in addition to taking part in the NMSDC matchmaking event, we participated in meetings led by NMSDC with the NGLCC and Disability:IN, enabling us to build stronger relationships with these organizations and increase matchmaking opportunities. Fostering relationships with a variety of organizations helps us identify diverse suppliers for inclusion in our supply chain, increase our visibility within the diverse supplier community and advance progress in this area more broadly. In 2021, we continued to realign our procurement or - ganization to improve collaboration with our company’s functions and global business units. This improves our ability to initiate matchmaking with diverse suppliers of specific categories. This approach will help us identify opportunities for and potentially increase our spend with diverse suppliers moving forward. Our supplier registration portal enables registration for diverse suppliers who are looking for opportunities to work with Baxter. Using the portal, diverse suppliers can upload their certificates and answer questions that will make them more visible to Baxter teams looking for new suppliers through our internal search tool. The portal should also improve communications with our suppliers and help us gather more information related to spending with our Tier II suppliers so we can track and measure it more accurately. Learn more about supplier diversity at Baxter. MARKETPLACE Increasing our awareness of health disparities in underserved communities and extending access to and use of our products, therapies and resources to these groups is at the core of our marketplace inclusion efforts. We strive to adopt inclusive product design from concept to launch and enhance our engagement with diverse healthcare professionals, patients, caregivers and other stakeholders. Our efforts to tackle these health disparities include sponsoring community programs that improve patient access to healthcare and reducing healthcare provider biases, including promoting a more diverse pipeline of healthcare professionals. We provided educational events for employees worldwide to enhance multicultural awareness and increase awareness of healthcare disparities and equity in product design, development and commercialization. The objective was to ensure diverse representation of patients and healthcare professionals among our key opinion leaders and voice of customer stakeholders. Learn more about our marketplace DE&I initiatives within ACT. Apex Companies, LLC has provided assurance on the content in this Supplier Diversity section.