30 2021 ESG Report Introduction Climate change Appendices Transparency Healthy workforce and communities Responsible supply chain Product impact Our Human Rights Policy states that we are “committed to operating in a way that respects all human rights of associates and the communities in which we operate our business.” Environmental data governance and collection Scope 1 and 2 environmental data from all locations globally is collected via a third-party data collection and analysis platform. Our environmental inventory management plan (IMP) documents key governance and measurement processes for energy, greenhouse gas emissions, water and waste. It also defines roles, responsibilities and processes, including triggers for recalculation and restatement (for example, merger, acquisition or divestiture that results in a significant structural change to the data). The IMP seeks to provide confidence of information to support decision-making, and consistent and transparent reporting. An operational control approach is used for the purpose of setting inventory boundaries. These boundaries include facilities where BD has at least a controlling interest from an operational perspective or, at most, facilities owned entirely by BD. In cases where BD has operational control but does not wholly own facilities, these facilities will be included in the inventory. This approach is consistent with the World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol (GHGP) and general sustainability reporting protocols and guidance. Facilities within BD's boundaries include main offices, manufacturing facilities, R&D facilities, laboratories and distribution centers (DCs). A screening approach is applied every year to determine sites that should be excluded from the operational boundary based on an established material threshold. The threshold values are updated every three to four years, or when significant acquisitions happen. Improvements in our operational practices and improved visibility to environmental performance metrics have encouraged emissions reduction and facilitated identifying water and waste reduction opportunities. Sites report on data completion and provide operational insight to our regional Sustainability Operations team throughout the year. Updates are provided frequently to our Sustainability Operations Council, and of the integrated supply chain leadership at least quarterly. At the company level, progress on overall sustainability performance is reviewed with the ERC. Environmental justice The goal of environmental justice is to address the inequitable exposure of poor and marginalized communities to harm to their health and environment. The pattern of inequitable exposure to environmental harms—especially in communities of color in the U.S.—has been documented in multiple studies. Exposure to these harms has led to higher rates of chronic health problems, disease and mortality among poor and marginalized communities. Efforts are continuing globally to implement policies and legislation to ensure the fair treatment and meaningful involvement of all people with respect to the development, implementation and enforcement of environmental laws, regulations and policies. An example includes the 2020 Environmental Justice Law in BD’s home state of New Jersey, U.S., which requires the evaluation of the environmental and public health impacts of certain facilities on overburdened communities when reviewing certain permit applications. We have established environmental and health & safety management systems at our facilities globally that help identify, manage and mitigate environmental and safety risks, as part of our continuous improvement efforts. Oversight of identified environmental justice issues would be carried out via our established ESG governance structures. We are in the process of carrying out an initial screening of our U.S. operations using publicly available tools to determine if they are located in impacted communities. The results of this screening will be used to determine next steps.