34 2021 ESG Report Appendices Transparency Healthy workforce and communities Responsible supply chain Climate change Introduction Product impact BD Sustainable Medical Technology Institute (BD SMTI) In FY 2022, BD announced the formation of the BD SMTI, which will develop and support programs to achieve our 2030+ Product Impact goals. Focused on sustainability, the institute will help guide the environmental impact reduction of our portfolio and address the sustainability needs of our customers. It will be composed of members from the R&D and ISC functions of BD, both centrally and within our business units. By focusing on three key areas—addressing Materials of Concern (MOC), new and more sustainable sterilization technologies, and sustainable product design—BD SMTI and its community of practitioners will support efforts to reduce the carbon footprint and environmental impact of our products. BD SMTI is led by the director of sustainability research and development, a new role that was established in early FY 2022. This individual reports to the senior vice president, enterprise R&D, with dotted-line reporting to the VP S&EHS. Throughout FY 2022, our central R&D team will be working with the company ERM and our business teams to calculate the greenhouse gas emissions that are generated during the use and end-of-life disposal of our products. The results will be used to set science-based targets, in line with our commitment to the UN Race to Zero. Strategic partnerships Building on our continued engagement with the Healthcare Plastics Recycling Council (HPRC) in both the United States and the European Union, and the Sustainable Healthcare Coalition (SHC) in Europe, we will develop strategic partnerships to help achieve our commitment to reducing the environmental impact of our products. 2030+ impact area: product impact BD commitment and goals 2030+ goals: Our commitment: Reduce the environmental impact of our portfolio and address the sustainability needs of our customers. 1 We will address plastic and packaging material consumption in our product portfolio through considerations in product design, including: • chemic al elimination/replacement; • mat erial reduction; • saf e product reuse models; • closed-loop r ecovery; and/or • open-loop r ecovery. 2 We will apply minimum environmental and human health criteria (based on customer EPP standards) to new products and product changes to ensure meaningful and sustainable product improvements across the life cycle. • Publish BD minimum en vironmental standards for products by end of FY 2022. • E stablish medium- and long-term targets for products to meet minimum environmental standards within 6 months of publication of the standard. 3 We will work to address the impact of plastics through existing and new strategic partnerships that work across the value chain