44 2021 ESG Report Appendices Transparency Healthy workforce and communities Product impact Climate change Introduction Responsible supply chain Responsible sourcing Our 2030+ commitments and goals recognize that a significant way BD can reduce our impact is through what materials and goods we buy and how we buy them. Our Responsible Sourcing program was established to work collaboratively across the company to seek out opportunities to engage with our suppliers and improve our environmental, social and governance impacts. In doing so, we will avoid risk and address key compliance requirements as well as establishing shared value and having positive impact on the places and people where and with whom we do business. Our Responsible Sourcing Program incorporates six key focus areas of work—human rights due diligence within our supply chain; Category 1 Emissions; Sustainable Products and Services; Transparency; Supplier Diversity; and Supply Base Resiliency. These focus areas address global challenges that impact our suppliers, associates and customers, as well as the communities in which we live and work. Program governance Responsible sourcing operating committee BD’s Responsible Sourcing Operating Committee was established to guide and facilitate our ESG efforts within procurement. A key part of this work is human rights due diligence in our supply chain. This committee reviews all suppliers that score below our acceptable threshold in our assessments and, in collaboration with appropriate associates outside the committee, determines next steps for mitigating the risk. The Committee also oversees our overall human rights due diligence in the supply chain process and relevant policies and is asked to review special issues as they arise. Standing Committee members are subject matter experts from across the company. In addition to human rights due diligence in the supply chain, the Committee is also involved in environmental issues as they relate to responsible sourcing (emissions, sustainable products and services, etc.). 2030+ impact area: responsible supply chain BD commitment and goals Our commitment: 2030+ goals: Create a supply chain adaptable to disruption and able to contribute to strong environmental and social performance. 1 2 3 4 We will strengthen engagement with supply chain partners on their labor and environmental practices and performance by completing ESG desktop audits for strategic, preferred and critical suppliers by 2023. We will partner with strategic/ preferred/critical suppliers to evaluate risk in Tier 2 by 2030. We will seek to have 90% of total spend reflected in completed supplier ESG desktop audits by 2025. We will incorporate climate risk into supply chain and network architecture strategies.