46 2021 ESG Report Appendices Transparency Healthy workforce and communities Product impact Climate change Introduction Responsible supply chain Human rights due diligence in our supply chain Our Expectations for Suppliers (Expectations) is the foundation on which we have built our human rights program within Responsible Sourcing. BD actively assesses supplier compliance with these Expectations as part of our wider process for human rights due diligence in the supply chain. BD’s human rights due diligence in the supply chain efforts are made up of three key work components—Prioritize, Assess and Mitigate. Human rights due diligence in the supply chain – key accomplishments Across all of our programs that address human rights and modern slavery, we assess management effectiveness through periodic program reviews and have started to implement key performance indicators (KPIs) to track progress against our 2030+ goals for responsible supply chain. As of the end of FY 2021, we completed 160 supplier audits; these represent 15 percent of our total spend, having completed a supplier scorecard. Of those 160 audits, one high-risk supplier was identified; BD took action to engage with the supplier to better understand the risk and assign corrective actions. In the following months the supplier was reassessed and improved its score. The Responsible Sourcing Operating Committee closely monitored this progress and will continue to evaluate this supplier to ensure ongoing compliance with our Expectations. BD recognizes that establishing our Expectations and building due diligence programs for our supply chain is an important step. We understand that we must also establish training and feedback sessions to continuously improve practice. To enable this, we have established both internal training and supplier training. Internally, BD has rolled out our annual Modern Slavery and Human Trafficking training to teach our associates who may interact with a supplier how to identify potential indicators of human rights abuses; we also inform our associates how to report known or suspected abuses. In FY 2021, nearly 10,000 associates completed this course. BD has also worked to ensure that auditors from across the company who might visit a supplier manufacturing site (for instance, quality auditors) are equipped to report any information that might have relevance to negative human rights practices. BD also seeks opportunities to train and engage with our suppliers on human rights. We have integrated a training for new suppliers around our Expectations document as part of the supplier on-boarding process. In April 2022, we hosted training based on our Expectations document for suppliers worldwide—part of our ongoing efforts to continue to emphasize these expectations with our suppliers. To learn more about our human rights due diligence in the supply chain progress, we encourage you to read our Modern Slavery compliance statements at bd.com In FY21 we completed 160 supplier audits, representing 15% of our total spend. Prioritize Within our supply chain (where our highest risk of modern slavery and human trafficking exists), suppliers are evaluated internally, in a process outlined by our Supply Base Resiliency Program, and by a third-party tool to understand human rights risk, which includes risk factors identified in the International Labor Organization (ILO)’s “ Declaration on Fundamental Principles and Rights ” at work, such as child labor, forced labor and other workers’ rights. BD recognizes that our highest-risk suppliers are likely to be found in countries and industries cited for having the highest prevalence of modern slavery, human trafficking and other human rights violations. The results of this risk evaluation will help determine which suppliers are prioritized for further assessment. Assess BD deploys desktop audits administered by a third party to assess performance against ESG topics, including labor and human rights. This third-party expert reviews supplier responses and documentation to ensure a non-biased evaluation. Mitigate If a supplier receives an unacceptable score on their desktop audit, BD will evaluate results through our Responsible Sourcing Operating Committee to determine the best path for further engagement; this may include the assignment and review of corrective actions, in-person human rights-focused audits and/or remediation as necessary.