47 2021 ESG Report Appendices Transparency Healthy workforce and communities Product impact Climate change Introduction Responsible supply chain Emissions – Scope 3 category 1 (purchased goods and services) BD recognizes that the single greatest contributor to our overall emissions is the Scope 3 category of purchased goods and services (Category 1). 12 In 2021, we began work to establish a baseline for these emissions. This work was performed by the company ERM , which completed a baseline using the composite method. For further information about the methodology used, please refer to the Scope 3 data table . We have calculated our baseline to be 3,007,771 metric tonnes of CO 2 e. We are working to establish a science-based target for this category as part of our commitment to the UN Race to Zero. We anticipate that this goal will be confirmed and verified in 2023 alongside our other Scope 3 category goals. Sustainable products and services BD’s efforts to introduce more sustainable solutions across our products and services stretch to include our relationship with our suppliers and the things we purchase. We work collaboratively with our suppliers to identify solutions to help them to reduce emissions or introduce innovative, sustainability-focused solutions to the purchases we make. We have equipped our Procurement team with the tools to help them to understand how their choices impact emissions—both Category 1 emissions and those across the company. Furthermore, our procurement associates actively seek to implement strategies that drive sustainability—both in the impact of our purchased goods and services and in other categories. For instance, we work toward driving greener fleet usage, which impacts what we buy and also the emissions from those vehicles. Not only do we seek to buy more sustainable materials, we are strategic about where we buy when possible, focusing on best-country sourcing. Strategy to reduce emissions As we work to establish a long-term science-based goal with interim targets, we can also work in parallel to achieve reductions. To do so, we have built a strategy that includes internal and external engagement and collaboration. Internally, we are developing a number of tools for BD associates to better engage with, quantify and understand the carbon impact of their projects. This is paired with an ongoing effort to educate associates about emissions and the impact of the purchasing decisions they make; it is not just what we buy that impacts our emissions, but also how we buy it. Externally, we are mapping our suppliers to understand their efforts to reduce their own emissions and collect their emissions data. Those suppliers that demonstrate leading practices will be leveraged to identify potential projects that we can work on collaboratively to further reduce emissions. Suppliers that have not yet measured baselines or set reduction goals will be offered assistance in trainings and mentorships with the aim of moving them toward setting their own science-based targets. 12 As defined by the Greenhouse Gas Protocol. Transparency BD recognizes that much of our work across our supply chain is supported by the work our peers are doing. For that reason, we have joined the Pharmaceutical Supply Chain Initiative, in addition to maintaining membership in working groups and peer collaboratives. We believe that external collaboration on the key issues addressed by our Responsible Sourcing team can magnify our impact. Outside of this, BD is separately engaging in peer and supplier conversations to share goals and tools and collaborate on reductions. We actively seek out opportunities to learn from best-in-class programs—both within our industry and in the wider business world. We are also partnering closely with our strategic customers to provide visibility and transparency in our supplier resiliency and responsible sourcing efforts.