Baxter 2021 Corporate Responsibility Report 23 Protect Our Planet Corporate Responsibility Commitment Introduction 2030 Corporate Responsibility Goals Empower Our Patients Appendix Champion Our People and Communities Cross-Cutting Commitments Energy Management Energy is one of our most significant manufacturing costs. Energy efficiency is integral to our climate strategy, as it saves money while reducing environmental impact. Our global energy program applies the ISO 50001 standard to the company’s facility-level energy management systems. By the end of 2021, 22 Baxter facilities (47% of participating locations 6 ) met ISO 50001 requirements. In 2021, we used 2.9 million MWh of energy, 7 4.4% more than in 2020 in absolute terms and 3.1% less indexed to revenue. Our energy costs increased 0.1% compared with 2020, up $220,000. Site-specific energy assessments help us identify opportunities to conserve energy, such as implementing new technologies or adopting best practices. In 2020 and 2021, we were unable to perform on-site energy assessments due to COVID-19 -related travel restrictions. Despite this setback we continued identifying potential energy projects and driving project performance by establishing bi- monthly meetings with global energy managers and regional engineering executives. We also conducted cross-facility benchmarking focused on energy conservation opportunities within the regions and businesses. As a result, in 2021, we invested $8.9 million to implement 196 energy conservation projects across our manufacturing sites globally. We estimate that these projects will save 33,800 MWh of energy and $3.3 million and avoid 8,800 metric tons CO 2 e of GHG emissions annually. 8 We have operated a Lean Energy Program for our manufacturing facilities since 2007. It includes four levels—Prerequisite, Bronze, Silver and Gold. Facilities meet the criteria for each level as they advance in pursuit of Gold. Each level includes program requirements, standards of operational excellence and technical requirements. By year-end 2021, 43 of 47 facilities 9 met Prerequisite criteria. Of those, 34 also met Bronze, 19 met Silver and 5 met Gold. GHG Emissions Across the Value Chain Although our carbon neutrality goal focuses on Scope 1 and 2 emissions, Baxter continues to calculate and address Scope 3 GHG emissions 10 across our value chain. We estimate our 2021 GHG emissions footprint (Scope 1, 2 and 3) at 5.259 million metric tons CO 2 e, up 3% from 2020. The main factors contributing to this rise were increased sales and production of certain products in 2021. We strive to minimize waste across the product life cycle and help healthcare providers meet their GHG emissions reduction goals. In 2020, Baxter announced a partnership with ZeoSys Medical to pilot the CONTRAfluran Anesthetic Gas Capture system. This system allows hospitals to collect anesthetic gases exhaled in operating rooms, preventing their release into the atmosphere and thereby reducing hospitals’ related GHG emissions. We have piloted this capture system in nine European countries and are considering further expansion. See our 2020 Corporate Responsibility Report for more information about how the CONTRAfluran Anesthetic Gas Capture system works and its environmental benefits. Since 2015, we have offset GHG emissions related to global business air travel with United Airlines through the CarbonChoice program. In 2021, this represented 14% of Baxter’s air travel emissions and included 758 metric tons CO 2 e offset on Baxter’s behalf through Sustainable Travel International’s portfolio of high-quality carbon offsets, including the Trocano Araretama Conservation Project , which is a REDD+-certified forest conservation project located in the state of Amazonas, Brazil. BAXTER’S GLOBAL GHG EMISSIONS FOOTPRINT, 2021 Scope 1 Direct Emissions from Baxter-Owned or -Controlled Sources (such as on-site fuel combustion) Scope 2 Indirect Emissions from Purchased Electricity and Steam 6 . 4 % 4 . 9 % 16 . 9 % 7 . 8 % Scope 3 Purchased Goods and Services Scope 3 Use of Sold Products Scope 3 Other 15.2 % 48.8 % Scope 3 Upstream Transportation and Distribution Total metric tons CO 2 e 5,259,000 Photo: Solar water heater installed at Baxter’s facility in Brazil.