Baxter 2021 Corporate Responsibility Report 48 Cross-Cutting Commitments Corporate Responsibility Commitment Introduction 2030 Corporate Responsibility Goals Empower Our Patients Protect Our Planet Champion Our People and Communities Appendix Global Inclusion Council (GIC) Baxter’s GIC members serve as DE&I champions, advocates and thought leaders across the company. The GIC’s mission is to focus on the advancement of women and underrepresented groups (including people of different races/ethnicities, generations and sexual orientations as well as veterans and people with disabilities) and to drive inclusive leadership capabilities and culture. The GIC is responsible for advocating and driving our global DE&I priorities, as well as developing and implementing local inclusion priorities. In early 2021, we formally embedded the GIC into Baxter’s executive leadership structure. The GIC consists of members of our Executive Leadership Team and the executive sponsors of our BRGs. This change reinforces the importance of DE&I at the highest levels of our company and will help further align the activities of our GIC with those of our BRGs. Business Resource Groups Baxter’s BRGs are an important component of cre - ating an inclusive and diverse culture within Baxter and advancing our priorities in the communities where we operate. These employee-run affinity groups play a critical role in the company’s efforts to recruit, retain and engage employees, and they provide forums for employees to develop skills, experience valuable cultural connections and sup- port key business initiatives. The BRGs support our business goals and aim to enhance personal growth and multicultural understanding, while strength - ening relationships among employ ees, customers, business partners and community partners. Our BRGs have positively impacted employee benefits, policies, holiday/time off approaches, accessible technology, racial justice efforts and workplace flexibility. We have eight established BRGs and encourage all employees to get involved. As of 2022, those BRGs include: Alliance for Baxter Women, Asian Leadership Network, BaxVET, Black Professional Alliance, Early Career Professionals, enABLES, HOLA and PRIDE. ACT: Activating Change Today Council In 2020, Baxter established our ACT Council to advance racial justice globally at Baxter. This council, chaired by the CEO and composed of employees at various levels, was established to drive meaningful, sustainable change and address racial injustice within the workplace and in the communities and markets we serve. While the ACT Council and initiative were prompted by the murder of George Floyd in the United States, our intent is to address racial/ethnic injustice around the world. Learn more. Measuring Inclusive Leadership Beginning in 2021, the individual performance assessment for members of our Senior Leadership Team (now our Executive Leadership Team) under our Annual Incentive Plan is determined in connection with an assessment of our performance against pre-established measures for key strategic 2021 priorities, which include various ESG issues. The strategic 2021 priorities are included in the categories of Patient Safety and Quality (50% weighting), Best Place to Work (30% weighting) and Growth Through Innovation (20% weighting). Following a rigorous qualitative year-end performance assessment, the weighted total payout across the three categories for 2021 totaled 105%. In addition, we conduct surveys to measure manager effectiveness, asking employees to rate their managers in areas such as inclusive leader - ship, recognition, feedback, development and workplace flexibility. Managers receive scorecards that include the results, as well as summaries of anonymous feedback from employees, and are expected to address feedback. Inclusive Attraction Approach Baxter follows 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. We have initiated additional steps to mitigate bias in hiring, including analysis of job descriptions by artificial intelligence to help make them more inclusive, an automated process to collect interview feedback, guidance for valuing differences when assessing skills and an inclusive global interview guide. We also include a specific bias check in our hiring process referred to as “Pause and Discuss,” which is a structured discussion to help check for unconscious bias in candidate selection before moving forward with an offer. WORKPLACE In addition to prioritizing diversity in our workforce, Baxter cultivates an inclusive workplace culture, where every employee is treated fairly and feels respected, valued, seen and heard. Driving Accountability We work to embed DE&I across all aspects of our workplace through inclusive leadership, accountability measures and proactive engagement with employees who advocate for inclusion throughout our company. Our global DE&I champions are integral to the implementation of our strategy. Especially critical are our Global Inclusion Council, Regional Inclusion Councils, country champion networks and senior leader sponsorship of our eight BRGs. We believe that all employees are personally responsible for fostering DE&I at Baxter. To that end, we ask all employees to periodically recommit to our global All In[clusive] pledge, affirming that they will do their part to create a culture of inclusion based on fairness and open and honest communication.