Baxter 2021 Corporate Responsibility Report 13 2030 Corporate Responsibility Goals Empower Our Patients Protect Our Planet Appendix Champion Our People and Communities Corporate Responsibility Commitment Introduction Cross-Cutting Commitments Our 2030 Corporate Responsibility Goals support Baxter's top quartile goals, which include: Patient safety and Quality Best place to work Growth through innovation Industry-leading performance PILLARS GOALS PERFORMANCE EMPOWER OUR PATIENTS Reach More Underserved Kidney Patients Double the number of patients reached in underserved markets* through our peritoneal dialysis (PD) portfolio. * Countries outside of the United States, Canada, Western Europe, Japan, Korea, Australia and New Zealand. (Baseline: 198,000 patients in 2020) In 2021, we reached more than 204,000 patients in underserved markets through our PD portfolio. Given the number of barriers to care in these markets, we are taking a staged approach—beginning with awareness and education—that we intend to accelerate in future years. Continually Improve Manufacturing Capabilities Achieve a 10% year-over-year improvement in manufacturing process capability for prioritized products.* * As measured by the year-over-year decrease in defect rate until each product’s process capability goal is met. (Baseline year: 2021) In 2021, we gathered data to establish a capability baseline for our sterilized solutions and sets, and refined the infrastructure and processes necessary to enhance product quality and report progress. In future reports, we will disclose progress from this baseline toward our target. PROTECT OUR PLANET Achieve Carbon Neutrality for Direct Operations by 2040 Achieve carbon neutrality for our direct operations by 2040 and reduce absolute Scope 1 and 2 greenhouse gas emissions 25% by 2030, aligned with a well-below 2⁰ Celsius science-based target. In 2021, we reduced absolute Scope 1 and 2 greenhouse gas emissions by 0.4% compared with 2020. We also established the necessary teams and infrastructure to help accelerate progress in the coming years. Implement Strategic Water Management Plans Implement strategic water management plans at prioritized manufacturing locations. * * Identify prioritized locations using a risk-based approach by the end of 2023. 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. Advance Sustainable Procurement Integrate Baxter’s sustainable procurement strategy across 90% of our supplier spend. * * As measured by supplier commitment to Baxter’s Ethics & Compliance Standards and Baxter’s completion of corporate responsibility audits within our supply base. In 2021, we laid the foundation to calculate progress toward this goal in the coming years. We also committed to increase investments in staff and training and continued to enhance our internal audit capabilities. Implement Strategic Materials and Waste Management Plans Implement prioritized waste mitigation opportunities* in Baxter’s integrated supply chain, from procurement to distribution. * Identify prioritized waste generation sources by the end of 2024. In 2021, we continued to mitigate waste at Baxter through process efficiency, waste reduction, recovery, recycling and landfill diversion. We also further engaged stakeholders to identify additional opportunities for reduction and to inform our strategy and facilitate prioritization of waste generation sources by 2024. CHAMPION OUR PEOPLE AND COMMUNITIES Invest in Underserved Communities Globally Invest $275 million in underserved communities through strategic partnerships and product donations from Baxter and the Baxter International Foundation. In 2021, Baxter and the Baxter International Foundation invested nearly $52 million in underserved communities through strategic partnerships, grants and product donations. Achieve Top Quartile Workplace Safety Performance Achieve top quartile workplace safety performance annually in total recordable incident rate.* * Among global companies across industries as reported by the U.S. Bureau of Labor Statistics. Baxter’s total recordable incident rate in 2021 ranked in the top quartile, achieving our goal for the year.** **Compared with 2019 data, which was the most recent data available from the U.S. Bureau of Labor Statistics at the time our 2030 Corporate Responsibility Goal was established. Increase Representation of Women and Ethnic Minorities in Leadership Roles Through hiring, promotion and retention, aspire to increase representation of women in leadership roles globally to 40%.* * Assuming labor market conditions continue to support the goal. Leadership role is defined as director and above. As of Dec. 31, 2021, 36% of people in leadership roles at Baxter globally were women, up from 34% in 2020. Through hiring, promotion and retention, aspire to increase representation of ethnic minorities in leadership roles in the United States to 25%.* * Assuming labor market conditions continue to support the goal. Leadership role is defined as director and above. As of Dec. 31, 2021, 24% of people in leadership roles at Baxter in the United States were ethnic minorities, up from 22% in 2020. 2030 Corporate Responsibility Goals The baseline for these goals is 2020 and the target achievement year is 2030, unless stated otherwise. Performance statements refer to Baxter and do not include Hillrom.