Best Buy ESG Report
Best Buy Fiscal Year 2022 ESG Report | 1 $ Environmental, Social and Governance Report FISCAL YEAR 2022 Corporate.BestBuy.com/Sustainability
Best Buy Fiscal Year 2022 ESG Report | 2 What’s inside . Message from our CEO 3 About Best Buy 4 Highlights 5 Company strategy 6 Recognition 7 About this report 8 Environmental Sustainable operations 10 Water management 13 Plastic reduction 1 4 Waste reduction 15 Renewable energy 17 Sustainable products 18 Sustainable packaging 21 Product life extension 22 Chemicals management 25 Social Great place to work 2 7 Engaging employees 2 8 Serving our customers 30 Learning and development 3 1 Employee benefits 3 3 Social justice 35 Best Buy Health 36 Diversity, Equity & Inclusion 38 Recognition 57 Measuring progress 5 8 Human rights 6 0 Responsible sourcing 62 Conflict minerals 72 Social impact 7 4 Teen Tech Centers 75 Scholars 81 Philanthropy 82 Governance Corporate governance 8 4 ESG governance 85 Ethics 86 Health and safety 8 8 Data privacy and security 90 Product safety 92 Political activity 9 3 Stakeholder engagement 95 Association memberships 96 Appendix Environmental data 9 8 SASB index 9 9 TCFD index 100 Sustainable development goals 101 EEO-1 report 102 GRI index 103 PAGE 14 PAGE 9 5 PAGE 53
Best Buy Fiscal Year 2022 ESG Report | 3 Message from our CEO . Fiscal 2022 was another record year for Best Buy. Our leaders continued to drive new ways of operating, and our employees worked tirelessly to support our customers’ technology needs in knowledgeable, fast and convenient ways — helping us produce record revenue and earnings. We navigated the prolonged impacts of the pandemic while taking significant steps toward building our future. Our purpose to enrich lives through technology is more relevant today than ever and represents the basis for how we deliver value to our customers, employees, shareholders, and the communities we live in. While we started as a music retailer selling fun-to-have products, we are now focused on delivering our vision to humanize and personalize technology solutions for every stage of life. We are the only company, in all channels and at scale, that can inspire you with technology’s possibilities, design your personalized solutions, install and connect all of it, keep it working when issues arise and help you responsibly get rid of it when it is no longer needed. As a purpose-driven company, we continued to deepen our commitment to our community and the environment. We believe that our Environmental, Social and Governance efforts are not just the right thing to do, but directly tied to long-term value creation and business success. During fiscal 2022, we made significant commitments to drive supplier diversity, expand our Best Buy Teen Tech Center® program and reduce our carbon footprint. You will see the details on our initiatives in the following pages. We are honored to be recognized for these efforts. For the seventh year in a row, Best Buy was named to Fortune’s list of the World’s Most Admired Companies, where we ranked third in the category for specialty retailers. We were also named to the 2022 JUST 100 list, recognizing companies for doing right by all their stakeholders, including our employees, customers, communities, and the environment. Finally, Barron’s ranked Best Buy No. 4 on its prestigious list of 100 most sustainable companies, representing the fifth year in a row we have ranked in the Top 5. To my colleagues across the company, my heartfelt thank you for your dedication and all you do every day on behalf of our customers. I would also like to thank you — our customers, stakeholders, and shareholders — for your continued support, confidence and partnership. Respectfully, Corie Barry, CEO, Best Buy Co., Inc.
Best Buy Fiscal Year 2022 ESG Report | 4 About Best Buy . Headquartered in Richfield, Minnesota Approximately 100,000 employees in North America More than 1,000 stores in the U.S. and Canada 2.5 billion pounds of e-waste recycled More than $51.8 billion in revenue for FY22 More than 20 years of technology and in-home service Building a network of 100 Best Buy® Teen Tech Centers™
Best Buy Fiscal Year 2022 ESG Report | 5 Highlights . Employees received 50 hours of training and development Great place to work Expanded benefits to offer greater support to employees and their families, including paid leave and caregiver support Collected over 2.5 billion pounds of electronics and appliances for recycling since 2009 Environmental Reduced our carbon emissions 62% (over 2009 baseline) Social impact Supply chain Currently support 46 Best Buy Teen Tech Centers Aligned with U.N. Guiding Principles on Business and Human Rights 100% of factories are audited before business is conducted Raised $145 million for St. Jude ® over the last 9 years $ 45% of Board of Directors members are female Investing $10 million with Black, Latinx and Indigenous tech startups through Brown Venture Group Goal to reduce our customers’ carbon 20% by 2030, saving $5 billion on utility costs Reduced water consumption across our operations by 24% since 2019
Best Buy Fiscal Year 2022 ESG Report | 6 Company strategy . Our purpose — to enrich lives through technology — is unchanged and more relevant today than ever. This purpose is enduring, and we have used it to hone our vision: “We humanize and personalize technology solutions for every stage of life.” To deliver on this vision, it is paramount that we stay focused on remaining a best place to work and continuing to deepen customer relationships. We are equipped to do so by anchoring ourselves in three fundamental beliefs about our business: • First, technology is a necessity, and we are the only tech solutions provider for the home. • Second, we have built a unique ecosystem of customer-centric assets, delivering experiences no one else can. • Third, we believe our differentiated abilities and ongoing investments in our business will drive compelling financial returns over time. With these as our anchors, and our continued commitment to our community, the environment, and inclusion, diversity and equity as a whole, we believe that our future is bigger, brighter and bolder than ever.
Best Buy Fiscal Year 2022 ESG Report | 7 Recognition . Barron’s Ranked in the top five of Barron’s Most Sustainable Companies for the fifth consecutive year CDP Worldwide Named to CDP Climate A List for the 5th consecutive year; among the top 2% of companies reporting to CDP Dow Jones Included in Dow Jones Sustainability Index for the 11th year Newsweek Named to America’s Most Responsible Companies list for the third year ISS Governance Awarded Prime status on ISS-ESG Corporate Rating FTSE 4 Good Index Included in FTSE4Good Index for the 8th year CNBC Named to JUST Capital’s JUST 100 list for the second time MSCI Inc. Rated AAA (highest possible) by MSCI ESG Research Ethisphere Named to Ethisphere’s list of World’s Most Ethical Companies for the 8th year Human Rights Campaign Foundation Named a Best Place to Work for LGBTQ+ Equality for the 17th year
Best Buy Fiscal Year 2022 ESG Report | 8 Best Buy has been reporting yearly on a variety of Environmental, Social and Governance (ESG) topics since 2006. This report includes our operations in the U.S. and Canada, reflecting the fiscal year ending January 29, 2022 (FY22) unless otherwise stated. The Responsible Sourcing section reflects only our private label manufacturing. This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. Our Scope 1, 2 and 3 emissions data is externally verified by Optera. Other frameworks referenced or taken into account include Sustainability Accounting Standards Board (SASB), Task Force on Climate-Related Financial Disclosures (TCFD) and Sustainable Development Goals (SDGs). Best Buy also reports to CDP. For more information and full financial disclosures, please see the Best Buy FY22 Annual Report on Form 10-K at Investors.BestBuy.com . Feedback about this report is welcome at [email protected] . Through a materiality assessment including stakeholder surveys and interviews, ESG issues were plotted on a matrix based on a five-year outlook. All of the issues listed are of high importance to both external stakeholders and our business, however, the issues were categorized by the degree to which internal and external stakeholders believe we should intensify our efforts to grow our business. We recently added three new ESG issues to our materiality matrix: early childhood education, environmental justice and health equity. Best Buy is exploring how we can use our unique assets and capabilities to help alleviate urgent societal needs in these areas. About this report . Materiality matrix
Best Buy Fiscal Year 2022 ESG Report | 9 Environmental .
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Best Buy Fiscal Year 2022 ESG Report | 10 At Best Buy, we aim to meaningfully reduce our impact on the environment and help our customers do the same. We make decisions with the future in mind, to strengthen our business, improve people’s lives and promote the health of our communities for years to come. While the issue of climate change is worldwide, the impact is felt by people in the communities where we live and work in the form of severe weather, rising temperatures, flooding and water shortages. We aspire to drive forward the circular economy — a system in which nothing is wasted. We are committed to conserving natural resources, reducing waste in our operations, offering products that help our customers live more sustainably and transitioning to renewable energy sources. The foundation of our environmental program is our ISO 14001-certified Environmental Management System (EMS), which covers all U.S. operations. Our EMS helps us systematically manage progress toward our environmental commitments and ensures that we comply with all applicable laws and regulations. In 2012, we were the first U.S. large-format retailer to earn ISO 14001 certification and are certified by a third party to the newest standard, ISO 14001:2015. In FY22, there were no material fines or non-monetary sanctions implemented against Best Buy for environmental non-compliance. Sustainable operations .
Best Buy Fiscal Year 2022 ESG Report | 11 Sustainable operations . Carbon emissions reductions (over 2009 baseline) 61% 51% 50% 47% 44% 33% Our commitments and progress. In 2019, we set a goal to reduce carbon by 75% by 2030 (over a 2009 baseline) which adheres to Science Based Targets initiative (SBTi) requirements, meaning our reduction is in line with the reduction required to keep the global temperature increase below 2°C as outlined in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC). We were one of the early companies to sign The Climate Pledge, a commitment to be carbon neutral across our business by 2040 — a decade faster than our previous goal of 2050. The Climate Pledge was founded in 2019 to mobilize companies across multiple business sectors to reach net-zero carbon emissions by 2040. Today, more than 300 businesses across the world have signed the Climate Pledge and we are proud to be one of the first signatories in this growing global initiative. As a signatory of The Climate Pledge, we will: • Measure and report greenhouse gas emissions on a regular basis. • Implement decarbonization strategies in line with the Paris Agreement through real business change and innovations, including efficiency improvements, renewable energy, materials reductions and other carbon emission elimination strategies. • Take actions to neutralize any remaining emissions with additional, quantifiable, real, permanent and socially beneficial offsets that achieve net-zero annual carbon emissions by 2040. • Advance our current Scope 3 commitment to reduce emissions 20% by 2030 by working collaboratively with suppliers, utilities, NGOs and policymakers to align to future SBTi Net-Zero Scope 3 guidance, putting us on a pathway to address all supply chain emissions. Products . Operations . Energy . Eco-friendly products Carbon-neutral goal S u s t a i n a b l e p a c k a g i n g E - W a s t e r e c y c l i n g E x t e n d i n g p r o d u c t l i f e W a t e r e � i c i e n c y W a s t e d i v e r s i o n E n e r g y e � i c i e n t e q u i p m e n t Fleet electri�ication C l e a n - e n e r g y a d v o c a c y R e n e w a b l e e n e r g y s o u r c i n g Circular Economy (Operations) 2020 2019 2018 2017 2016 2015 2014 2021 62% 60 45 30 15 75 GOAL: 75% 55%
Best Buy Fiscal Year 2022 ESG Report | 12 Sustainable operations . Our current operational carbon reduction at the end of calendar year 2021 is 62% . Many projects scaled across our stores contribute to the reduction, including additional investments in LED lighting, process controls and high efficiency HVAC systems. The grid is also getting cleaner, which is something we actively advocate for with investor-owned utilities and policy makers. We continue to be commended as a leader in addressing climate change. For the fifth consecutive year, CDP, the global authority on climate change, named Best Buy to its prestigious Climate A List. The list recognizes our actions to cut emissions, mitigate climate risks and advance a low-carbon economy. Out of the 13,000 respondents, this puts us among the top 2% of all companies participating in CDP’s climate change program. (See the appendix for further data.) We know that meaningful climate action is a collaborative effort and leading companies must come together to solve this difficult challenge. In FY22, to foster this approach, we became a founding member of the Breakthroughs 2030: Retail campaign, the United Nations Climate Change Race to Zero initiative that aims to accelerate climate action within the retail industry. The pledge encourages global, regional and national retailers to take climate action together through the setting of science-based targets and committing to achieve net-zero carbon emissions by 2050.
Best Buy Fiscal Year 2022 ESG Report | 13 Water scarcity is a growing, worldwide issue. Our business relies on healthy watersheds in the regions where we operate and many of the products we sell, like washing machines and dishwashers, are dependent on water. By taking steps to reduce our water consumption and helping our customers to do the same, especially in water-scarce regions, we aim to make this resource more abundant and readily available to the communities we serve. In 2020, we formed an internal Water Stewardship Action Committee, a cross-functional group of employees who share a common goal to help reduce water usage in our operations and for our customers. Through this committee, we set our first water-reduction targets, including a goal to reduce enterprise water usage 15% by 2025. We have also identified water-stressed areas that we are focusing on to lessen our dependence on water — and the results are significant. In 2021, we used approximately 1 million cubic meters of water in our U.S. and Canadian operations. This is a reduction of more than 24% over 2019. We recognize that our water usage in 2021 was driven largely due to fewer customers in our stores because of the COVID-19 pandemic. Though we reduced our water usage significantly in 2021, we expect a rebound in water usage in 2022, when business operations potentially return to pre-pandemic levels. Our full Water Corporate Statement can be found at Corporate.BestBuy.com/Sustainability . Water management . Water use in U.S. and Canada: 1.30M cubic meters in 2018 1.26M cubic meters in 2019 961K cubic meters in 2020 Best Buy Fiscal Year 2022 ESG Report | 13 1M cubic meters in 2021
Best Buy Fiscal Year 2022 ESG Report | 14 Plastic bags. We are working toward solutions to reduce plastic bag usage in our stores. Prior to the COVID-19 pandemic, our plastic bag usage had been steadily decreasing, partly due to our Blue Shirts (sales associates) asking customers at checkout if they need a bag, instead of automatically providing one. In FY22, our plastic bag usage increased compared to FY21, due to the dramatic decrease in usage in FY21 because of limited store operations during the COVID-19 pandemic. While our bag usage was up in FY22 compared to the previous year, we are still trending down and using fewer plastic bags compared to FY19. In FY23, we are working toward a program that is modeled after our partners in Canada to reduce plastic bag usage and to encourage customers to bring their own reusable bags. Canadian stores. In September 2021, we transitioned from using plastic to paper bags in our Canadian stores. Additionally, to encourage customers to make the choice to not use a bag or to bring their own bags, we started applying a 30-cent fee per paper bag, a portion of which goes toward helping increase tech equity in our communities. Plastic reduction . Plastic bag usage (% Change from Previous Year, FY18 Baseline) -30 -60 -40 -20 FY20 FY19 FY18 FY21 -50 -10 0 FY22 -5% -10% -38% * +11% *FY21 % change was updated to reflect new data that includes all bag usage across U.S. locations
Best Buy Fiscal Year 2022 ESG Report | 15 Waste reduction continues to be an important facet of our environmental strategy, and we’ve set a goal to achieve 85% waste diversion across our U.S. operations by 2025 . We partner with a B Corp-certified software provider to use technology and analytics to improve our waste diversion. We have increased our waste diversion by 7% since FY19, bringing it up to 72%. In FY22, our supply chain facility in Chino, California, was the first location to achieve TRUE certification for zero waste. A TRUE project’s goal is to reduce the amount of waste generated and divert all solid waste from the landfill, incineration (waste-to-energy) and into beneficial re-use and recycling programs. Facilities achieve certification by meeting rigorous program requirements administered by Green Business Certification Inc. In FY23, we are expanding our TRUE certification into more Best Buy supply chain facilities. We continue to invest in new equipment to drive up the recycling rates in our locations. We added 34 new cardboard balers in FY22 to further improve our waste-diversion capabilities. In addition to balers, our supply chain locations use polystyrene densifiers, which break apart and condense polystyrene into cubes, taking up less room on trucks. Waste reduction .
Best Buy Fiscal Year 2022 ESG Report | 16 Diversion rate 69% FY20 65% FY19 72% FY22 Waste reduction . Employee engagement. Employee engagement is a key component of our waste- reduction strategy. In FY22, corporate teams partnered with field employees to develop a waste-minimization and recycling assessment tool to maximize the materials recycled at our locations. We also created three new e-learnings that support our waste-minimization efforts that focus on how to properly recycle materials using equipment in supply chain locations. Our employees are demonstrating their commitment to the environment by organizing “green teams” in several supply chain locations. Members are supporting the waste-diversion strategy by educating colleagues and innovating around further environmental improvements. Other FY22 accomplishments: • We are partnering upstream with appliance vendors to be part of the solution to minimize waste in our distribution centers. As an example, we encouraged a vendor to transition from using adhesives such as glue to using removable tape, allowing in-bound shipping containers and product packaging to be fully recycled. • We are optimizing the number of trips for our trash haulers by using automated compactor monitors. Hauls are scheduled only when compactors are full, lowering our carbon footprint and creating efficiency. We updated our FY21 waste diversion rate and pounds of material recycled to align with methodology that uses the EPA’s standardized weight for pallets and due to more precise data provided by our suppliers. In its disposal of hazardous materials, Best Buy utilizes authorized methods, including recycling, incineration, and use of authorized landfills. Best Buy’s service providers determine which disposal method to use by referring to hazardous waste management methods conversion tables. The conversion tables outline approved disposal methods by specific hazardous waste code. (See appendix for waste and recycling by category.) 73% FY21 Non-hazardous waste (enterprise) 90 30 120 60 150 FY21 FY20 FY19 Pounds of materials recycled FY22 148M 139M 115M 133M Pounds of materials landfilled 45 15 60 30 75 FY21 FY20 FY19 FY22 42M 62M 61M 59M 176k 47k Other waste (enterprise) Pounds of hazardous waste Pounds of universal waste 60 20 80 40 100 FY21 FY20 FY19 FY22 120 40 160 80 200 FY21 FY20 FY19 FY22 95k 32k 59k 113k 113k 125k
Best Buy Fiscal Year 2022 ESG Report | 17 Renewable energy continues to be a priority in our environmental strategy. In FY22, we invested in two new solar developments in Texas and Michigan. When combined with our two previous solar investments, they are expected to produce approximately 1.5 million MWh of clean electricity per year, or enough electricity to power 123,720 American homes each year.* In FY22, we also signed our first solar power purchase agreement (PPA) for a solar system installed on our Tracy, California, distribution center. This system is designed to supply at least 80% of the electricity consumed at the distribution center. We also continue to acquire Green-e certified U.S. wind Renewable Energy Credits (RECs), which encourage the production of new renewable energy systems. We are proud to be a Green Power Partner (GPP), an EPA-led program that seeks to develop new renewable generation capacity nationwide while also helping to protect the environment. As of January 2022, we were the fifth-ranked retailer on the U.S. Environmental Protection Agency’s Green Power Partnership list. Geek Squad fleet electrification. We continue to work closely with other companies to accelerate the adoption of electric vehicles (EV) and EV charging infrastructure through our participation in Ceres’ Corporate Electric Vehicle Alliance (CEVA). We continue to look for the most efficient vehicles for our store fleet. Several years ago, we transitioned to the Toyota Prius C for many of our Geek Squad Agents and In-Home Advisors. In FY22, we initiated plans to electrify our Geek Squad fleet, with our first electric vehicles and EV chargers scheduled to arrive in FY23. We also offer EV home-charger options to our customers, and we are investigating the possibility of offering customer-facing EV charging at our retail stores located throughout the United States and Canada. Renewable energy . * Equivalency source: epa.gov/energy/greenhouse-gas-equivalencies-calculator#results Products . Operations . Energy . Eco-friendly products Carbon-neutral goal S u s t a i n a b l e p a c k a g i n g E - W a s t e r e c y c l i n g E x t e n d i n g p r o d u c t l i f e W a t e r e � i c i e n c y W a s t e d i v e r s i o n E n e r g y e � i c i e n t e q u i p m e n t Fleet electri�ication C l e a n - e n e r g y a d v o c a c y R e n e w a b l e e n e r g y s o u r c i n g Circular Economy (Energy)
Best Buy Fiscal Year 2022 ESG Report | 18 Best Buy is helping to make a positive impact on the planet by offering eco-friendly products that conserve resources. ENERGY STAR®. ENERGY STAR certified products save money, reduce energy and water use, and protect the environment by meeting strict energy-efficiency guidelines set by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy. We set a goal to reduce carbon emissions from ENERGY STAR products sold to our customers 20% by 2030 (over 2017 baseline), saving our customers $5 billion in energy costs. This is the Scope 3 component of our science-based carbon goal. At a time when the climate crisis seems too big to solve, we recognize that our customers are making an impact every time they select an ENERGY STAR certified product. In 2021, our U.S. customers made the decision to buy an ENERGY STAR product more than 19 million times. Over the lifetime of the products, those customers will realize more than $796 million in utility savings and the products will provide 9.8 billion pounds of CO 2 emissions avoidance. According to the EPA, the ENERGY STAR mark is recognized by 90% of American households. More than 840 utilities, state and local governments, and nonprofits leverage ENERGY STAR in their efficiency programs, reaching roughly 97% of households in all 50 states. Sustainable products . Products . Operations . Energy . Eco-friendly products Carbon-neutral goal S u s t a i n a b l e p a c k a g i n g E - W a s t e r e c y c l i n g E x t e n d i n g p r o d u c t l i f e W a t e r e � i c i e n c y W a s t e d i v e r s i o n E n e r g y e � i c i e n t e q u i p m e n t Fleet electri�ication C l e a n - e n e r g y a d v o c a c y R e n e w a b l e e n e r g y s o u r c i n g Circular Economy (Products)
Best Buy Fiscal Year 2022 ESG Report | 19 ENERGY STAR sales. To support our Scope 3 goal of helping our customers use less energy, we developed a robust reporting tool to inform internal leaders and external partners on the progress of ENERGY STAR sales, with the objective to design, promote and sell more energy efficient products. Through this report, we identified the products that have the highest carbon emissions impact in FY22 based on methodology from the EPA. After identifying the top opportunities, we asked one of our top opportunity brands to certify their products. This report and conversation resulted in this vendor certifying most of their products as ENERGY STAR, and to design products with energy efficiency in mind. This change drastically reduced our product emissions for use of sold products. Sustainable products . We make it easy for customers to shop for energy-efficient products, both online and in our stores, by highlighting the ENERGY STAR mark. For the past 11 years, we have offered an employee e-Learning specific to ENERGY STAR through our award-winning platform, the Learning Network. Blue Shirts who take the ENERGY STAR training learn about the benefits of ENERGY STAR certified products, which products are certified, how to identify them and how to help customers find them. Over the last decade, employees have taken an ENERGY STAR e-Learning more than 290,000 times. Best Buy is proud to be a 2022 ENERGY STAR Partner of the Year — our ninth consecutive year winning this award, for which we've also received a special distinction for Sustained Excellence. Expanding into new categories. In FY22, we added EV chargers to our online Sustainable Living category, which also features eco-friendly products that promote sustainability both inside and outside the home. We offer hundreds of products from renewable energy solutions, such as solar panels, to green transportation, gardening and more. Because many areas we serve face water scarcity issues, we offer products that help customers reduce water consumption at home. These include dual-flow nozzles, water leak sensors, smart water assistants and smart irrigation systems.
Best Buy Fiscal Year 2022 ESG Report | 20 Sustainable products . Yardbird. In November 2021, Best Buy acquired Yardbird, the outdoor furniture company that uses ocean-bound plastic in its products. Yardbird furniture is partially made with repurposed ocean plastic sourced from beaches, waterways and ocean-bound susceptible locations. Yardbird also partners with a third party to offset its carbon footprint. Rebates. As part of our marketing efforts, we partner with utility companies to offer rebates to help customers use less energy and water. Smart thermostats can have a big impact on a home’s energy usage. Utility rebates on thermostats can significantly reduce the cost to consumers, making it an affordable purchase option for those who could benefit the most. We added technology that enables customers to claim instant rebates during the checkout process, and we also added QR codes to product signage so customers can easily find rebates they qualify for. We project these enhancements will help to drive increased annual sales and simplify the customer experience.
Best Buy Fiscal Year 2022 ESG Report | 21 Sustainable packaging . We have seen an increased interest from stakeholders around the issue of sustainable packaging, both for product (primary packaging) and e-commerce shipping containers (secondary packaging). In response to this, we have been working on an enterprise strategy to address how we can send our customers less packaging to dispose of and use materials that are easily recyclable. Private label product packaging. In an FY22 pilot, our Insignia brand started incorporating sustainably sourced paper that is certified by the Forest Stewardship Council® (FSC®) in order to advance packaging that provides environmental, social and economic benefits. FSC certification means that we are responsibly sourcing more than 13 million pounds of paper annually. E-commerce shipping. In FY22, we piloted a 100% curbside recyclable mailer at three Best Buy distribution centers. The mailer requires fewer supplies like air pillows or thermal tape for shipping products. The mailers also take up less space than boxes, which allows for more packages to be shipped and fewer resources to ship the same number of products. In FY22, we processed over 480,000 pounds of recycled expanded polystyrene (EPS) from our own operations and from other local companies as part of our pilot at our Tracy, California, distribution center. In FY23, we have plans to expand this program to more business partners. Packaging equipment. To decrease plastic in our supply chain facilities, we invested in 82 stretch packaging machines across six Best Buy distribution centers. Instead of manually wrapping pallets, these stretch packaging machines are more efficient and use about 67% less plastic on average. With this update, we have prevented more than 66,000 pounds of plastic wrap ending up in landfills in FY22. Collaboration with peers and partners is a key part of our strategy. Therefore, we have joined the Sustainable Packaging Coalition, a nonprofit organization driving meaningful action toward packaging sustainability throughout the value chain. Since 2015, we have participated in the “I Want To Be Recycled” campaign, a partnership with Keep America Beautiful and the Ad Council. Our ship-from-store boxes, made from FSC-certified cardboard, feature a custom message encouraging consumers to recycle.
Best Buy Fiscal Year 2022 ESG Report | 22 Product life extension . Repair. We want to help customers extend the life of their products, and we do this using the skills of our Geek Squad Agents and repair partners. Most Best Buy stores house a Geek Squad Precinct, where products — from computers to mobile phones to digital cameras — are repaired. Our repair technicians fix larger items like TVs and appliances in customers’ homes. We also operate repair facilities within our distribution centers including Geek Squad City, a facility near Louisville, Kentucky. Best Buy repaired more than 1.7 million devices in FY22, keeping products in the “use” phase. This number represents the total number of repairs for in-home services, repairs from Geek Squad City and from our service depot locations for products we have actively fixed to keep the device in use. Trade-in . The Best Buy Trade-In Program is the core of our “reuse” phase of the product life cycle. In nearly all of our stores, we offer customers a convenient way to get value for products that are still in good, working condition. These products are typically re-sold in secondary markets, bringing a useful second life to products that might otherwise sit idle in someone’s home, get recycled or end up in a landfill. Not only does the Best Buy Trade-In Program enable customers to upgrade sooner, it gives an opportunity to those who might not be able to afford brand-new technology. Many companies offer phone trade-in options, but Best Buy goes beyond phones and includes laptops, tablets, cameras, smart watches and video game consoles. In FY22, we helped customers trade in more than 650,000 devices . Collectively in FY22, over 2 million pounds found a second life through our trade-in and repair programs.
Best Buy Fiscal Year 2022 ESG Report | 23 Product life extension . Standalone Haul-Away service. In FY22, we piloted a new service in St. Louis where, for the first time, customers can request pickup and recycling for old electronics. This keeps tech, including appliances, out of landfills and gives it a second life. In FY23, we expanded this program nationwide. The Best Buy Standalone Haul-Away service will remove and recycle up to two large products, including TVs, major appliances, all-in-one computers and monitors, along with select smaller products. Best Buy outlet stores. Best Buy outlet stores offer a wide assortment of discounted products like major appliances and televisions. In FY22, Best Buy customers could shop at 16 outlet stores, and in the beginning of FY23, we opened four more stores. In FY23, we are expanding our assortment of products at outlet stores to include laptops, tablets, gaming products, mobile phones and more. Every new outlet will also have a Geek Squad area where customers can get tech support. By shopping at our outlet stores, customers are helping to limit waste by giving technology a new, longer life. Best Buy outlet stores are part of our broader goal to support the transition to a circular economy, a system in which nothing is wasted and products are kept in use for as long as possible.
Best Buy Fiscal Year 2022 ESG Report | 24 Product life extension . E-waste recycling. To address the global issue of electronic waste, we established our recycling program in 2009. We continue to operate the most comprehensive consumer electronics and appliances takeback program in the U.S. In FY22, we collected more than 189 million pounds of electronics and appliances for recycling, bringing our total to more than 2.5 billion pounds . We are keeping electronics out of landfills, which benefits the environment and human health. Before partnering with Best Buy, our recycling partners must pass a thorough environmental, safety and downstream audit process, and they are subject to recurring onsite, desktop and downstream assessments. In addition to our own standards, we require all electronics recycling partners to maintain ISO 14001 certification, ISO 45001 safety certification or industry equivalent, and be certified to eStewards® or R2® industry certifications.
Best Buy Fiscal Year 2022 ESG Report | 25 Best Buy is building a thriving business while ensuring we are a good steward of the environment and supporting the responsible use of chemicals in compliance with all laws and regulations. In FY22, we published a new chemicals statement reflecting changes in our chemicals management program. This included a commitment that new televisions in our private label brand will adhere to the European Union’s eco-friendly display enclosure requirements outlined in Commission Regulation 2019/2021. Our industry-leading goal is designed to promote a safer circular economy and better support the recycling of plastics. This is an example of how our chemicals management program goes beyond regulatory compliance to evaluate and prioritize efforts to address chemical risks and opportunities. We work to reduce the use of chemicals, phase out chemicals of concern and improve the general management of chemicals by: • Identifying opportunities to reduce the use of chemicals of concern in our operations. • Using safer chemical alternatives wherever possible, with a preference for EPA Safer Choice. • Defining supplier requirements for chemical use in our private label products. • Partnering with qualified electronics recyclers to ensure the products we collect through our consumer recycling program are effectively re-used, recycled or safely disposed of. Collaboration among stakeholders is critical to improving the complex issue of managing chemicals in the electronics industry. We continue to participate in chemical management work groups with organizations such as the Responsible Business Alliance and the Green Chemistry and Commerce Council. Chemicals management .
Best Buy Fiscal Year 2022 ESG Report | 26 Social .
Best Buy Fiscal Year 2022 ESG Report | 27 A great place to work . We are a team of more than 100,000 strong. We work in stores, distribution centers, homes and offices. We are focused on bringing the best experiences to our customers, and that starts with making sure Best Buy is a great place to work for all. We aim to create a diverse, dynamic and inclusive environment that encourages learning and growth. We want our employees to feel appreciated and be comfortable bringing their authentic and whole selves to work. We support each other, our identities, and our communities. We are Best Buy. At the end of FY22, we employed approximately 105,000 employees in the U.S. and Canada, composed of approximately 55% full-time employees, 35% part-time employees and 10% seasonal/occasional employees.
Best Buy Fiscal Year 2022 ESG Report | 28 Seeking and responding to employee feedback is core to our culture. When we understand what employees desire, it creates a better workplace for everyone. In the past, we measured employee engagement through an annual survey event with a high focus on participation and scores, followed by leaders investing significant time into elaborate action plans. We’ve learned that engagement is so much more than just a survey or one-point-in-time event, and we needed to broaden Engaging employees . Employee turnover (year-by-year) FY13 FY20 FY21 FY18 FY19 FY16 FY17 FY14 FY15 FY22 10% 20% 30% 40% 50% FY22: 33.4% (30.6% Voluntary • 2.8% Involuntary)
Best Buy Fiscal Year 2022 ESG Report | 29 Engaging employees . our approach to truly capture and respond to how our employees were feeling about the frequent change around us. In 2021, we launched a new engagement initiative named Blueprint, with intuitive tools from Glint (a LinkedIn/Microsoft company) to help us continuously listen and spend more time taking specific meaningful action. The revised survey is administered more frequently, and is just a small step in the greater, ongoing engagement cycle. After reviewing and reflecting on results, leaders hold collaborative conversations with their teams and then select a single area to focus on and build new behavioral habits around for the greatest impact. We facilitated two full surveys and one pulse (a shorter version of the survey) to our various audiences throughout the year. Results were strong with overall engagement from all three surveys at 76, with scores ranging one to six points above Glint’s global benchmark. In addition to Blueprint, we seek continuous feedback from employees through various methods to better understand what we’re doing well and how we can improve their experience on topics ranging from benefits and technology to leadership, culture and serving customers. As a further investment and commitment to this work, we created a Chief People Officer role in February 2022, held by Ray Sliva. The Chief People Officer is responsible for ensuring we attain a broad range of engagement insights and initiatives with the ultimate goal of creating meaningful, positive change for our employees. “As Chief People Officer for Best Buy, my focus is to provide an amazing employee and customer experience, and I believe that starts and ends with culture. Employees want a caring culture where they work for leaders who create a sense of belonging, provide support, and create opportunities to learn and grow. Mastering a great culture for the employee results in a great brand experience for the customer.” – Ray Sliva, Chief People Officer
Best Buy Fiscal Year 2022 ESG Report | 30 At Best Buy we are customer obsessed, meaning that we put customers at the center of everything we do. It means making them feel excited, confident, and appreciated. And that starts with our employees. When our teams are grounded in customer insight and empowered to put customers first, they inspire those feelings by listening and empathizing to help customers realize what’s possible with technology. As we continue evolving and innovating experiences to meet the ever-changing and growing expectations of customers — digitally, virtually, in our stores, in their homes — we practice human-centered design to remain anchored in their needs. Customer feedback. To keep these commitments to our customers, we endlessly pursue a deeper understanding of them. Through research, studying behaviors, and measuring every experience they have with Best Buy, we learn more. That insight inspires customer-first mindsets, fuels strategies that lead to memorable experiences, and helps us build deeper customer relationships. Best Buy’s experience measurement program encompasses a holistic and robust approach. We gather feedback from customers at key moments in their shopping journeys as well as perceptions they have about Best Buy at an overarching, relationship level. It’s critical to understand what’s working (or not working) for our customers in the stores, online, in their homes and virtually. Insights garnered from these various listening posts are critical to frontline associates all the way up to executive leaders as they inform everything from coaching opportunities for individual employees Serving our customers . to tactical, operational opportunities all the way to strategic-level decisions. Best Buy relies on the Net Promoter System (NPS) to quantify customers’ perceptions of their experiences. We’ve been measuring NPS for nearly 10 years and have built a strong culture around this approach to understanding customers’ experiences. We ended FY22 with some of the most positive Q4 results ever as nearly all channels experienced year-over-year gains. In fact, comparing NPS from this past year (FY22) to FY18, we saw the following growth: • Store Purchasers: +120bps • E-commerce Purchasers: +700bps • Geek Squad Services (in-store + in-home): +80bps • Home Delivery: +350bps
Best Buy Fiscal Year 2022 ESG Report | 31 Learning and development . Continuous growth and development is at the heart of our learning strategy, which is why we are investing in training, upskilling and reskilling our employees. In the past year, we shifted from developing skills and proficiencies tied to jobs, to building transitional leadership and functional skills to enable a flexible and talented workforce. Investing in learning and development for our employees builds confidence for them and our customers, and it creates a more productive, engaged, and adaptable workforce. As the world evolves, we must also evolve. The pandemic brought changes for all of us, many of which are here to stay. As a result, our customers have come to expect more. They want to shop us on their terms, through the channel they prefer, and they are looking for us to be there every step of the way as they make decisions about what technology is best for them today and in the future. Ensuring our employees have diverse knowledge and skillsets, so we can meet our customers’ needs and expectations, is critical to our success. Here are a few examples of how we’re doing this: • We’ve incorporated LinkedIn Learning into our portfolio to enable continuous learning for both leadership and functional skills. • When making hiring decisions, we emphasize the importance of skills and abilities, rather than just education and experience. We believe this drives a more inclusive and growth-oriented culture. • We have identified an artificial intelligence platform to help us proactively plan for future workforce roles, which will allow us to create new learning and career paths. • Several leadership development programs were piloted this year. In the year ahead, we will introduce two enterprise-wide programs based on what we’ve learned.
Best Buy Fiscal Year 2022 ESG Report | 32 Learning and development . Experiential learning. As we look to the future, we will continue to evolve our learning approach to consider all aspects of the employee experience at Best Buy — knowledge, performance, career goals and learning preferences — and create customized topics that are relevant and impactful. We’ve made great strides in this area, and we will continue to measure our results to ensure we are investing in the right technology, which will help us be at the forefront of the employee experience and result in an even better customer experience. 50 Average number of hours employees spent on training and development in FY22.
Best Buy Fiscal Year 2022 ESG Report | 33 At Best Buy, we want to help employees live a happy, healthy, and productive life — at work, and at home with those who matter most. We invest in a wide array of benefit choices to support employees and their loved ones with their overall well-being: physical, mental, financial and work-life balance. We believe that creating a culture of holistic well- being will make Best Buy a great place to work and drive business results. Meaningful moments. We expanded our benefits to offer greater support to employees and their families in true moments of need, establishing the following programs: • Paid leave: We provide up to six weeks of pay at 100% during a qualifying leave of absence, ensuring predictable pay for employees in need. When combined with Caregiver Pay, qualifying employees can receive up to 10 weeks at 100% pay for maternity leave. • Caregiver support: All full-time and part-time employees have access to Wellthy, a caregiver support program that offers personalized help with issues ranging from emergency housing and health care to substance abuse, elder care, and many other moments of crisis or complexity. • HOPE Fund: In partnership with the Richard M. Schulze Family Foundation, we created the HOPE Fund — Helping Our People in Emergencies — which provides employees in hardship situations an opportunity to apply for up to $2,500 in financial assistance. We also mobilized a Well-being Ambassador network of over 900 employee volunteers who are enthusiastically becoming our “boots on the ground” in locations across the U.S. to promote benefit programs, give us input on what’s working and help navigate employees to the right resources. Employee benefits .
Best Buy Fiscal Year 2022 ESG Report | 34 Employee benefits . Minimum starting wage ...................................... $15 Percentage of hourly employees paid local statutory min wage* ...................... 0.58% Average hourly wage of hourly employees^ .......................................... $18.27 * Based on local statutory minimum wage for each location in which we do business ...... ^ As of end of FY22 Continued focus. With the goal of keeping our employees and customers safe through the pandemic, we provided COVID-19 testing and sick pay, encouraged vaccinations through time off and cash awards, and conducted free-of-charge vaccination and flu clinics. We offered pay support for those required to quarantine or isolate consistent with public health guidance. For employees and their dependents enrolled in a Best Buy health plan, we covered all COVID-related health care expenses in addition to costs for telehealth or virtual visits for both physical and mental health. Mental health remains a priority, and through training, storytelling and access to counseling and self-care resources, we equipped employees and leaders to notice issues in themselves or others and know where to find help. We expanded Caregiver Pay to include care for extended family members and added the ability for employees to choose caregivers from a personal network within the Backup Child Care program. As schools shifted in and out of virtual teaching throughout the year, we also offered Tutor Reimbursement for school-age dependents who needed extra support. Many employees invested extra time into their own learning. We added more partners to our list of select universities and training programs that offer tuition discounts, special scholarship opportunities and reduced fees for employees, and in some cases, their immediate family members. When combined with our Tuition Assistance program, eligible employees have the opportunity to earn a degree, online or on-campus, with no out-of-pocket costs. Learn more about all the well-being benefits offered by Best Buy at BenefitsGuide.BestBuy.com . Evolving pay structure. Best Buy is committed to offering a competitive pay structure that recognizes the value our employees create for our customers every day. We continuously review and evolve our pay structure, including the introduction of a $15 per hour minimum starting wage in 2020, which resulted in at least a 4% increase for all hourly store employees below the leadership level. (See page 41-42 for more on pay equity at Best Buy.)
Best Buy Fiscal Year 2022 ESG Report | 35 Social justice . As a purpose-driven company, it is important for us to show support for the issues that matter most to our business and stakeholders, including our employees, customers, communities and the environment. Showing up for employees in this way is the equitable thing to do and enables them to bring their whole selves to work in service of our customers. Our social justice commitments escalated in 2020 after tensions around systemic discrimination reached a boiling point. CEO Corie Barry empowered and challenged Best Buy to “do better” in addressing social disparities and injustices wherever we can. Here are some of the ways we are taking action: • We work collectively through coalitions and community partnerships such as the Minnesota Business Coalition for Racial Equality (MBCRE), which focuses on eliminating racial disparities across a number of public policy areas including policing, the achievement gap, health, hunger and housing. • We set enterprise-wide targets to help measure our progress in increasing diverse representation across areas such as hiring, retention, supplier diversity, marketing campaigns and community investments. (Read more about these efforts in the DE&I and Social Impact sections.) • We advocate on issues that affect the lives of our employees, their families and communities, including climate change, voting rights, DACA and immigration reform, broadband and tech access, and LGBTQIA+ equality. • We are exploring new ways to use Best Buy’s core assets and capabilities to positively impact urgent community needs in the areas of early childhood education, environmental justice, and health equity. • Internally, we established the Racial Equity Leadership Immersion (formerly the Task Force for Racial Equity) where a cohort of diverse employees from across the enterprise come together for several months to learn, engage and figure out how to best address racial and social inequity and take action to create the biggest impact at Best Buy. (See more in the DE&I section.) • We encourage and enable employees to contact their elected officials to share their personal views and engage on the issues that matter most to them through the “Be Your Own Advocate” tool.
Best Buy Fiscal Year 2022 ESG Report | 36 Best Buy Health . Best Buy Health exists at the intersection of health and technology, enabling people to care for their health from the comfort of their homes. Our Best Buy Health strategy is built upon our unique strengths, like our world-class omnichannel, distribution and logistics, strong analytics, presence in the home and our empathetic Caring Center agents. Our strategy builds on these strengths in our three focus areas. In Consumer Health Products, we provide curated health and wellness products. In Active Aging, we offer health and safety solutions to enable adults to live and thrive at home. In Virtual Care, we connect patients with their physicians to enable care at home. Our presence in each of these areas creates a flywheel, where growth in one adds momentum to the other two. This is the strength of our story. Consumer health products. In our stores and online, Best Buy provides the most sought-after digital health solutions for every stage of life — from exercise equipment to pulse oximeters to sleep technology to recovery devices and more. New parents find peace of mind in infant heart rate and oxygen monitors. People with chronic conditions gain confidence with at-home blood pressure monitors and glucose monitors. Elite athletes and newcomers alike train with smartwatches that track vitals and activity levels. Even items like white noise machines and weighted blankets make life more relaxing for our customers. Many pandemic consumer trends support the future of this health and wellness space — as people seek ways to manage stress, maintain a healthy lifestyle, improve sleep and navigate chronic conditions.
Best Buy Fiscal Year 2022 ESG Report | 37 Best Buy Health . Active Aging. Active Aging is focused on empowering the aging community to live independently by delivering simple, human-supported health and safety solutions, and to stay connected to friends and loved ones. Lively devices, including cell phones and personal emergency response devices, enable the heart of our strategy: our health and safety services. Whether accessing our services from a Lively device or an Apple Watch, Lively users can reach our Caring Center team members in emergency situations with ease. Our team members assess the situation, access the caller’s health profile and bridge an important information gap when communicating with emergency responders, saving lives and improving outcomes. In non-emergency situations, our Caring Center Agents can connect with family members, ensuring each customer is well-cared for and supported. In addition, our agents assist with services like arranging rides, linking seniors with social services and connecting users with medical professionals for urgent care phone consultations. Caregivers can also check on their loved one’s status and location using the Link app, giving them another avenue to ensure wellbeing. Virtual care. With our recent acquisition of Current Health, perhaps the most exciting opportunity lies within virtual care. Our acquisition merges Current Health's FDA- cleared care at home platform with Best Buy's scale, expertise, and connection to the home, building upon our foundation with remote patient monitoring, emergency response and social care. Together, we create a powerful virtual care experience, partnering with healthcare systems to provide Hospital at Home programs and enabling patients to connect virtually with their care teams. Here, we see significant opportunity to enhance the experience for patients, physicians, and service providers by providing an integrated, seamless, and supported technology solution that is easy to use.
Best Buy Fiscal Year 2022 ESG Report | 38 Building an impactful and inclusive culture for all. At Best Buy, the integration of diversity, equity and inclusion (DE&I) into all facets of our organizational thinking is paramount to being one of the best places to work. Diversity, equity and inclusion is a business imperative. Diversity, Equity & Inclusion . “As Chief Inclusion & Diversity Officer for Best Buy, I believe that nurturing a culture of equity and inclusion while expanding diverse representation are fundamentally important to the long-term success of the business. Doing so will strengthen our employees’ sense of belonging and connection to each other, customers, and communities.” — Amelia Hardy, Chief Inclusion & Diversity Officer
Best Buy Fiscal Year 2022 ESG Report | 39 We are proud to share these goals we aim to achieve by 2025: • Fill one out of three new non-hourly corporate positions with BIPOC (Black, Indigenous and People of Color — specifically Black, Latinx and Indigenous) employees. Additionally, one out of three new, non- hourly field roles will be filled by women. • Foster inclusion among all employee groups to create parity in retention rates , including transforming our senior leadership ranks to be more diverse. • Reach 30,000 teens annually from disinvested communities across the nation, including building a network of at least 100 Best Buy Teen Tech Centers to teach skills and build a talent pipeline for a modern economy. Teen Tech Centers are places where teens can develop critical skills through hands-on activities that explore their interests in programming, filmmaking, music production and design. • Provide $44 million to expand college prep and career opportunities for BIPOC students, including adding scholarships for HBCU (Historically Black Colleges and Universities) students and increasing scholarship funding for Teen Tech Center youth. • Expand opportunity for BIPOC teens in our home market of the Twin Cities by investing in more local Teen Tech Centers, creating a scholarship fund specifically for Twin Cities-based teens, committing to hosting interns from Teen Tech Centers and other program partners, and offering jobs across the company to teens. Diversity, Equity & Inclusion .
Best Buy Fiscal Year 2022 ESG Report | 40 Diversity, Equity & Inclusion . People. Inclusive Behaviors Our Inclusive Behaviors have evolved from training and setting expectations of our leaders to being used in everyday language while developing teams and individual employees. In FY22, we engaged employees at all levels to empower them to demonstrate these Inclusive Behaviors: Vulnerability: Willingness to show weakness to be stronger tomorrow. Empathy: Being purposeful about understanding the unique experience of everyone around you. Courage: Empowering everyone to speak up and act for what is right. Grace: Create an environment to take calculated risks and learn from mistakes. This inviting culture will intentionally excite and draw diverse perspectives to Best Buy, thereby empowering the workforce of the future. Our promises • Teams will operate with conscious inclusion in engaging each other and customers. • Employee Resource Group leadership roles will be viewed across our teams as critical to the business in team effectiveness, culture building and development. • Our teams will invite, support and reflect our communities in each market and across all businesses. • We will engage business leaders in the intentional development of diverse talent within their teams. • We will help leaders identify the impact of unconscious bias on career opportunities and support actions that can be taken. Know, Grow, Move. In FY22, we focused on helping leaders with the “how” of DE&I work by creating defined learning journeys, partnerships, and processes to interweave DE&I into the way we recruit, hire, onboard, develop and empower employees to move within the organization. Below are a few of the strategies we have implemented to embed DE&I into our business rhythms.
Best Buy Fiscal Year 2022 ESG Report | 41 Diversity, Equity & Inclusion . Recruitment and hiring. The Mom Project: The Mom Project is committed to helping women remain active in the workforce in every stage of their journey and works with employers who are committed to designing and supporting a better workplace. In FY22, Best Buy created a partnership with The Mom Project to expand our recruitment of skilled, diverse female talent for a variety of opportunities. New Wave: New Wave is a hiring, integration and development initiative focused on increasing the number of diverse employees, especially in areas of the organization where BIPOC talent is underrepresented. Currently, seven New Wave participants have joined Best Buy’s legal, communications and public affairs, human resources and customer service teams since 2019. Blue Check: Blue Check interview panelists are Best Buy employees who have completed designated trainings on the talent selection process, inclusion and diversity, and are trained to deliver an exceptional interview experience for candidates, hiring leaders and their peers. Their purpose is to provide objectivity and equity in the interview process and create a safe space for candidates. More than 500 employees have been certified as Blue Check interview panelists, including 330 corporate employees and 170 field employees. Internships: Best Buy’s formalized internship program has been active for more than 10 years. During that time, the internship program has grown and evolved in many ways. In FY23, Best Buy will hire 200 summer interns, making it the company’s largest internship class ever. In addition, 50% of these interns self- identify as BIPOC. Our 10-week internships involve high school, college and graduate-level students from more than 75 universities and 26 states. Interns work with a variety of teams at the Best Buy corporate offices in Richfield, Boston and Seattle and in our distribution centers throughout the country. Interns participate in professional development events, training, social events, volunteer opportunities and talks with senior executives. Interns are also offered mentorship opportunities, invited to join employee resource groups and encouraged to network with Best Buy employees. Pay equity. As part of our goal of being recognized as one of the best place to work, we are focused on creating a culture where people feel valued and can be their true, authentic selves at work. That recognition includes equitable pay, regardless of gender, race, ethnicity or other identities. Pay is an important part of our overall benefits offering, and ensuring employees see our pay system as fair helps to fuel our culture and supports employee engagement.
Best Buy Fiscal Year 2022 ESG Report | 42 Diversity, Equity & Inclusion . Annually, we conduct an enterprise pay review, which takes into account employees’ responsibilities, tenure and location, and other job-related factors. Adjustments are made as needed. Ensuring employees are paid fairly and equitably is a goal across our pay processes. Pay gaps associated with gender or race persist across various industries and often reflect the broader social challenges we’re facing where unconscious bias and unequal access to opportunities are a factor. Within Best Buy we combat these challenges through regular reviews of our pay data, policies, practices and tools. How pay gaps are measured. Unadjusted or raw median pay gaps measure the difference between the median pay of one group of employees versus another (group refers to male, female, white, Black, etc.) Median pay represents a typical employee’s pay. Employees in a group are ranked based on their pay, and the individual who is between the highest and lowest paid is the representative for the entire group. This approach explicitly includes differences in job responsibilities and pay. Adjusted pay gaps measure pay differences associated with race or gender after factors are considered such as job responsibilities, seniority, experience and local labor market conditions. This is calculated using a statistical model in an attempt to measure equal pay for equal work. This approach attempts to explicitly focus on measuring whether peers doing similar work with similar qualifications are paid fairly. * B IPOC represents the following: American Indian or Alaskan Native, Asian, Black or African American, Hispanic or Latino of any race, Native Hawaiian or other Pacific Islander and anyone of two or more races. ** T he unadjusted median pay rate includes all U.S. employees (hourly and salaried) as of January 29, 2022. The pay rate was calculated using all wages, bonuses and stock awards that vested in FY22 and dividing by hours worked. *** T he adjusted pay gap includes all U.S. employees as of January 29, 2022, excluding officers, commission- based sales professionals and employees on tenure- based step-rate programs in Supply Chain. The model focuses on base pay, as almost all bonus and stock programs for this population are driven by job level, salary and company results on a formulaic basis. Control variables in the model include job level, time in job level, tenure with Best Buy and local geography. Unadjusted Pay Gaps** Median Pay Rate Adjusted Pay Gaps*** Controlled Pay Gap Women relative to Men BIPOC* relative to white Best Buy’s U.S. pay equity results 100.3% 94.2% 99.6% 99.8%
Best Buy Fiscal Year 2022 ESG Report | 43 Diversity, Equity & Inclusion . Development. Best Buy’s “Know, Grow, Move” framework enables a consistent company-wide approach to talent management and development with the goal to create an inclusive culture where people can bring their best selves forward in service of each other and our customers. This framework is anchored by several initiatives. Quarterly Conversations: Our success depends on shifting from traditional performance management practices to a culture of performance enablement — one of getting to know our talent and building trust, psychological safety and connection. To that end, in FY22 we introduced Quarterly Conversations. Quarterly Conversations are streamlined and completed consistently across the enterprise. The purpose of Quarterly Conversations is to enable meaningful connections between employees and their leaders. This is time dedicated to a strategic, forward-focused discussion to align work and development goals to career aspirations. Recently, we added questions to prompt additional conversations about DE&I and Inclusive Leadership Behaviors between employees and their leaders. Field Infiltrator program: Best Buy’s Field Infiltrator program is creating unique opportunities for employees in retail, field and support roles to share their experiences, perspectives and expertise, so we may improve employee and customer experiences.
Best Buy Fiscal Year 2022 ESG Report | 44 Through the Field Infiltrator program, employees who are on non-traditional career paths can receive developmental experiences with Best Buy’s digital, analytics, and technology (DAT) teams. A pilot of the program launched in October 2020 with 18 employees. Following the close of their cohort in January 2021, half of them received job offers within DAT. A second cohort of 27 employees met from August through November 2021. The program continues to make a direct connection between field and corporate employees, successfully supporting those who have a passion for technology and for Best Buy to grow within the company and in the digital arena. McKinsey Management Accelerator Program: The McKinsey Management Accelerator Program is a third-party program designed for early- to mid-career leaders who identify as members of disinvested communities. The program builds core leadership and management capabilities (e.g., strategic thinking, problem solving) and provides a foundational understanding of key functional areas, such as operations, talent management and pricing. Participants learn practical tools to overcome common mindset challenges, build a management muscle through problem-solving and strategic thinking, and apply this to their jobs. In FY22, Best Buy recruited our initial cohort for leaders who identify as Black. Based on the positive feedback and impact, we expanded our program and brought it to a wider audience including employees who identify as Latino, Hispanic, Asian or Pacific Islander. More than 100 participants enrolled in cohorts beginning in February and April 2022. The June 2022 cohort had 50 participants. Diversity, Equity & Inclusion .
Best Buy Fiscal Year 2022 ESG Report | 45 Diversity, Equity & Inclusion . Mentoring. Women’s Employee Engagement Group Mentor Circles are designed to bring women with diverse backgrounds, careers and job levels together to share ideas, advice and experiences in an inclusive environment. Our circles are designed to foster authentic dialogue, a sense of community and an opportunity to learn and grow professionally and personally. More than 200 employees participated in FY22. The Young Professionals Development Group Mentorship Program is designed to connect employees with a mentor from outside their normal work hierarchy to encourage personal and professional development, career pathing and networking. Pairing is based on not only current job roles, but also organizational interests, leadership types and career development experiences. More than 300 employees participated in the program in FY22. #IamRemarkable , created by Google, is an initiative focused on empowering everyone, especially women and underrepresented groups, to celebrate their accomplishments in the workplace and beyond, thereby challenging current perceptions and breaking modesty norms and glass ceilings. Best Buy began piloting integration of the #IamRemarkable initiative in FY22. More than 500 participants across the enterprise have participated, and more than 17 leaders became certified facilitators and champions for the initiative, in addition to their core roles.
Best Buy Fiscal Year 2022 ESG Report | 46 Diversity, Equity & Inclusion . Engagement. Enterprise Inclusion Groups: One of the best ways to nurture our inclusive culture is through our communities of belonging, which is why we created Inclusion Groups. Inclusion Groups build relationships, grow from exploration and learning, and are one of the best forms of networking, offering an opportunity for all employees to connect with others who have similar — or different — cultures, interests, perspectives and hobbies. Inclusion Groups are open to all employees, whether they identify as a member of the community represented or are taking the first steps in their allyship journeys. Membership in Inclusion Groups grew by more than 50% in FY22. Our Inclusion Groups include Employee Resource Groups, a Young Professional Development Group and Focused Involvement Networks. Employee Resource Groups (ERGs) aim to elevate cultural perspectives and inspire cultural growth. ERGs also promote mentorship and career development for diverse talent. On International Day of the World’s Indigenous Peoples, August 9, 2021, Best Buy formally introduced our Indigenous Employee Resource Group. Inspired by employee voices, the Indigenous ERG creates a safe space where Indigenous people and allies can come together to share, learn and grow through awareness, education, understanding and cultural appreciation. There are more than 476 million Indigenous peoples living in 90 countries across the world. A heritage filled with a vast diversity of cultures, traditions, languages and knowledge systems, Indigenous peoples account for 6.2% of the global population — and many are part of our Best Buy family. • Asian ERG • Black ERG • disABILITIES ERG • Indigenous ERG • Unidos ERG • Military ERG • Pride ERG • Women’s ERG
Best Buy Fiscal Year 2022 ESG Report | 47 Diversity, Equity & Inclusion . Focused Involvement Networks (FINs) allow employees to engage through a broader intersectional scope of diversity. Through active opportunities for inclusive leadership learning experiences, FIN leaders and members can engage in communities of belonging around shared interests, beliefs, and passions that complement other communities of inclusion networks. • Best Buy Cycling • Best Buy Run & Walk Club • BlueSounds • Christian Connection Network • Conservative • Data Analytics • Families • Gaming • Jewish Network • Junior Achievement • Muslim Network • Natural Employee Wellness • Net Impact • Photography • Project Management Practitioners • St. Cloud State University Alumni • Toastmasters • University of Minnesota Alumni • University of St. Thomas Tommies In November 2021, our Jewish Focus Involvement Network was formed. Inspired by employee voices, the Jewish FIN offers a space for Jewish belonging, learning and celebration. Its goal is to grow belonging and inclusivity at Best Buy through celebrating and building awareness around Jewish culture, traditions, history and practices. To drive the work of our inclusion groups home, Inclusion & Diversity Steering Committees (IDSCs) support diversification of teams, higher retention, inclusive team cultures and allyship within each business territory, department and individual teams. Inclusion Group Leadership Summit: Best Buy held its first Inclusion Group Summit in March 2022. More than 350 employees attended the multiday virtual event to create deeper relationships between Inclusion Group leaders and cross-functional partners, increase cultural competency and understanding of how to create psychological safety within teams, and increase membership and active participation in Inclusion Groups.
Best Buy Fiscal Year 2022 ESG Report | 48 Diversity, Equity & Inclusion . Racial Equity Leadership Immersion (RELI): When George Floyd was murdered not far from our corporate headquarters, we formed a company-wide Task Force for Racial Equity. A highly diverse group of 19 employees from across the enterprise came together to dive deep into and learn about current events and topics from colonization to immigration. That journey continued for six months into FY22 with 43 employees and set the foundation to figure out how to best address racial and social inequity and take action to create the biggest impact at Best Buy. Since then, the task force has evolved into the Racial Equity Leadership Immersion (RELI) program. RELI has guided individual cohorts of 35 employees each through a curriculum addressing racial and intercultural competence. The group participates in the Intercultural Development Inventory (IDI) to understand their DE&I development plan. The cohort learns tools to help them go out into the organization and lead the acceleration of the attainment of our DE&I goals. Participant feedback consistently reflects that this immersion is personally and professionally life changing, inspiring them to act wherever they can to influence change. RELI’s strategy is to create additional immersive experiences for holistic leadership development in the future.
Best Buy Fiscal Year 2022 ESG Report | 49 Diversity, Equity & Inclusion . Candid Conversations: Best Buy continues to virtually host Candid Conversations, a powerful forum for finding connection with colleagues through purposeful conversation and the ‘art’ of storytelling. The series focuses on complex cultural issues considered hard to talk about in the workplace. By creating relaxed, inclusive environments that encourage vulnerability, we find courage in exchanging the stories and perspectives of our difficult realities, helping us better empathize with those around us, regardless of differences. In FY22, we held eight Candid Conversations with a total live, virtual attendance of 10,900 employees across the enterprise. The sessions were also recorded for employees to watch at their convenience and for teams to use as a tool for deeper discussions. Topics included: Confronting anti-Asian hate in the era of COVID: Addressing the massive increase in violent and hateful acts against the Asian American Pacific Islander (AAPI) community since the beginning of the COVID-19 pandemic. The silent anxiety of our foreign-born colleagues: Discussing the challenges of the legal immigration process and how it impacts our Best Buy community. One-year anniversary of George Floyd, now recognized as “Day of Enlightenment”: Discussing how our lives have changed, as well as our communities and company, since the murder of George Floyd. Anti-Transgender Legislation: Addressing the plethora of anti-LGBTQIA+ bills that have been introduced in states across the country — many specifically targeting transgender youth. Working Across Generations: Discussing the stereotypes, as well as the perspectives and insights each generation — Gen Z, Millennials, Gen X and Baby Boomers — brings to the table. Indigenous Peoples’ Day: Discussing the thousands of native nations that first inhabited the Americas, including land that later became the United States of America.
Best Buy Fiscal Year 2022 ESG Report | 50 Diversity, Equity & Inclusion . For Manpreet “Mane” Singh, the Queens borough of New York City has always been home. In fact, he still lives in the same neighborhood as the small basement apartment where he grew up with his parents and two younger siblings. So, it was the highlight of his career when Best Buy named him the senior omnichannel general manager for the Queens market. In that role, he oversees three local stores and more than 400 employees. “It’s a proud thing for me. I was born and raised in this community,” he said. “My friends, my lunch ladies, teachers, coaches, mentors, neighbors all shop at these stores.” For this Best Buy leader, Diwali is an opportunity to share his culture, community. What makes it even better, though, is the opportunity he has to share his Indian culture — especially during Diwali, a five-day festival of lights. Celebrated by members of the Hindu, Sikh and Jain faiths, it’s often commemorated with large gatherings filled with food, decorations and gifts. “When you’d come home from school or work there would be lamps everywhere and an aroma in the air from the food,” Mane said. “My mom and sister would be dressed up in Indian attire, and we’d have a nice meal together. Then we’d go to the temple to ask for blessings and a prosperous year ahead.” Mane makes sure he gives employees who celebrate the holiday time off to spend with family. Employees have asked him for tips on where to buy the best diva lamps, and they share meals together and talk about their culture. “This culture wasn’t talked about much growing up when we went to school or work,” Mane said. “It’s just so cool that now I’m in this position to help bring it to life and make it important so the next generation can feel comfortable and proud to celebrate it.”
Best Buy Fiscal Year 2022 ESG Report | 51 Diversity, Equity & Inclusion . From an early age, Heath Garcia knew he wanted to serve his country. It started during visits to his mom’s family in Missouri. His grandfather and his seven brothers had all been in the military, serving in World War II and the Korean War. He joined the Army at 19 years old and served for seven years. He did two tours in Afghanistan, earning the Bronze Star for his heroism in providing first aid and helping to evacuate a wounded soldier while under fire during an intense 17-hour firefight. After leaving the military, Heath used the G.I. Bill to take online classes. But after being used to working 60- to 80-hour weeks, he was anxious to get away from his computer. Now, he’s using the work ethic and leadership skills he learned in the military to thrive in a career at Best Buy. “I wanted to make my Best Buy career like my time in the military, where I started at the bottom and worked my way up,” Heath said. “I wanted to show that if someone was willing to take the risk with me, they would see the results. I always give maximum effort, 110%.” He’s now a supervisor at our store in Cypress, Texas, and he plans to keep climbing the ladder. Heath hopes to become an operations manager next, then get some experience in sales before becoming a general manager. His long-term goal is to join a market or territory staff. “There are a lot of things that I learned in the military that transitioned very well,” he said. “I’m very thankful for everything I learned in the military and how I can use it for Best Buy.” From Bronze Star to Best Buy blue, this Army veteran gives ‘maximum effort.’
Best Buy Fiscal Year 2022 ESG Report | 52 Diversity, Equity & Inclusion . Best Buy is proud to celebrate Native American Heritage Month in November alongside our employees and customers. It’s an opportunity to recognize and share the history, culture, traditions and contributions of Indigenous people. They comprise a rich and diverse community, with 574 federally recognized tribes across the U.S. We talked to some of the leaders from our new Indigenous Employee Resource Group to learn more about what the month — and their Indigenous heritage — means to them. Indigenous heritage ‘means everything’ to these Best Buy employees. Saraphina Scott, Geek Squad Manager (Albuquerque, New Mexico): It gives me purpose, encouragement and a sense of belonging in anything and everything I do in my life. An example of that would be our Navajo clan system. The way it works is that you are born, you are born with four clans. First is your mother, second is your father, third is your maternal grandfather’s and fourth is your paternal grandfather’s clan. For me, this lets me know I have a family all over, and it helps me especially when I’m feeling a bit homesick. Che Jim, Certified Appliance Advisor (Carmel, Indiana): It means everything to me. It means I carry with me a connection to this land, and this environment that is deeper and more personal. World cultures are developed over thousands of years. And they are entirely shaped by the environment they were developed in. My Indigenous language, customs and perspectives that were passed down to me from my parents and ancestors were literally born on this soil. They were not brought here or adopted here. They were born here. That means so much to me, and it’s something I remind myself of every day. It’s my entire being! Tracy Brown, Marketing Lead (Richfield, Minnesota): It means I am here. It means I am strong, resilient and special. I feel proud to be a part of something bigger than America. My ancestors were literally here before anyone else, living their lives, and the government tried to eradicate this “problem.” It makes me angry to think of that, but I grew up on the reservation and was just existing, living my life as anyone else. It is who I am. I didn’t feel different until I moved out of my community.
Best Buy Fiscal Year 2022 ESG Report | 53 Diversity, Equity & Inclusion . Supplier diversity. At Best Buy, we believe that supplier diversity increases competition, promotes innovation, serves customer needs and aligns with our business strategy. It is our policy to promote and provide opportunities to diverse suppliers while ensuring that we receive the highest quality products and services at the greatest value. In June 2021, we promised that we would do better at working with diverse suppliers throughout our company. We committed to spending at least $1.2 billion with BIPOC and diverse businesses by 2025 so we can help increase representation in our company and the communities we serve. Partnerships like these help us in our efforts to create a stronger, more vibrant community of diverse innovators in the tech industry. Brown Venture Group (BVG): We’ve also committed to investing up to $10 million with Brown Venture Group, a Minneapolis-based venture capital firm that focuses exclusively on Black, Latinx and Indigenous emerging technology startups. Best Buy launched a partnership with BVG in FY22 to co-create solutions that will lead to greater economic flourishing for contributors of color. BVG will also partner with us to launch an entrepreneurship program at Best Buy Teen Tech Centers to help develop young entrepreneurs through education, mentorship, networking and funding access. RangeMe: In December 2021, we launched a new partnership with RangeMe, an online sourcing platform that connects us with more than 200,000 potential brands and their products, to expand our network of diverse-owned and operated suppliers. RangeMe is helping us discover and connect with a wide variety of brands to bring new products to our customers online and in stores. In FY22, Best Buy’s procurement team launched a new online submission form that provides our suppliers a user-friendly way to submit their supplier diversity information. This form is another step in the validation process to ensure the data is relevant and accurate to our supplier diversity spend request. Suppliers are asked to provide their spend data via this form twice each fiscal year. We also have created an internal database of diverse vendors to enable our sourcing team to better focus on Tier 1 growth with diverse companies that contract with and are paid directly by Best Buy. To qualify as Tier 1, a company’s ownership must be held by a minimum of 51% individuals who identify as Black, LatinX, Asian, Indigenous, LGBTQIA+, woman, veteran or disabled.
Best Buy Fiscal Year 2022 ESG Report | 54 Diversity, Equity & Inclusion . During FY22, Best Buy implemented a program to request and track Tier 2 spend with our Goods Not For Resale (GNFR) suppliers. Tier 2 companies are those seen as not diverse but who pay diverse suppliers to ensure goods and services are provided to Best Buy. This category is expected to continue to grow as our program continues to mature. Tier 1.5 companies are those considered not diverse that pay diverse suppliers as directed or chosen by Best Buy. Best Buy has strong partnerships in place to continue this category of spend. In FY22, our spending with indirect Tier 1.5 companies increased by $25.7 million compared to FY21. In FY22, Best Buy Canada launched a new Mentorship and Accelerator Program (MAP) that connects Black and Indigenous innovators with mentorship opportunities and a platform to help grow their business. Through this program, we selected two women- and BIPOC-led companies who are working with our teams for business support with the aim to launch products later this year. Marketing. How Best Buy markets our products, reaches potential customers and represents diversity in our social media and advertising is critical to achieving commitments and being a customer obsessed company. As it relates to supplier diversity and marketing representation, we’ve committed to the following: • Consult, discuss, and advise on a cross-section of marketing work with the intent to protect brand reputation and demonstrate our commitment to diversity, equity and inclusion. • Ensure 25% of production crew members will be women, BIPOC, LGBTQIA+, and/or diverse abilities by 2023. • Dedicate nearly 10% of our annual media spend to BIPOC media by 2025. • Have a minimum of 30% of our paid advertising feature BIPOC, LGBTQIA+, and/or diverse abilities cast members and family structures. In FY22, we made significant progress in how we invest our marketing dollars. We developed and grew partnerships with BIPOC media publishers across traditional and digital media channels and reflected diverse and disinvested communities in our images and stories. We also partnered with The BrandLab, a Minneapolis- based non-profit committed to increasing BIPOC representation in advertising and marketing to host 16 LabFellows for eight-month paid internships rotating across Best Buy, Optum, Wunderman Thompson Midwest and Essence.
Best Buy Fiscal Year 2022 ESG Report | 55 Diversity, Equity & Inclusion . Crew and casting representation: We continue to increase representation across production crew roles such as directors, assistant directors, photography directors, senior producers, photographers, motion graphic designers and editors. Additionally, we far exceeded our goal of 30% representation of communities across BIPOC, LGBTQIA+ and diverse abilities in 2021 across paid advertising. Marketing Review Council: In April 2021, we created an internal marketing review council to consult, discuss and advise on our marketing and creative work to ensure it accurately and respectfully reflects the diversity of our employees and customers, while authentically promoting members of disinvested groups. In FY22, this council, consisting of cross-functional members, reviewed and provided guidance on more than 55 campaigns. More of This campaigns: Starting in January 2021, we launched campaigns centering on Black, Latinx, LGBTQIA+, AAPI and women’s voices. We also dedicated social media to highlight cultural moments like Diwali, Memorial Day, Lunar New Year, Coming Out Day and many more. Best Buy Teen Tech Centers campaign: In February 2021, we launched a YouTube content campaign, “Dream Huge,” highlighting real stories of teens positively impacted by Best Buy Teen Tech Centers. Additionally, Dream Huge won Best of Show at the Minnesota Advertising Federation show, as well as seven gold awards, making it the most awarded campaign in the program. In July 2021, we launched a dedicated campaign to promote the work of our Teen Tech Centers and in May 2022 we launched a campaign highlighting the impact of mentorships in our Teen Tech Center programs.
Best Buy Fiscal Year 2022 ESG Report | 56 Diversity, Equity & Inclusion . When it comes to creating the stock photography we use for cultural moments and our marketing campaigns, we decided to do things differently this year. We wanted to give creators more control of their work, especially when it’s based on their identity and depicts their communities and unique perspectives. That’s where the Take Stock Project comes in. As part of the project, we asked three photographers to tell their own stories of how people in their communities use technology. We also funded each photoshoot and made sure the photographers retained the rights to sell their images anywhere, including stock photography sites. The inspiration behind the project was to empower artists to create true-to-life images of their own communities to be featured in Best Buy campaigns, and make sure they can resell the photos, so the profits stay within the communities that created them. The project is part of our “More of This” marketing campaign, which we launched early last year as part of Best Buy’s broader inclusion and diversity work to give more access, representation and recognition to more communities. “I think the imagery is very beautiful,” said Christian Rodriguez, one of the photographers and creators that took part in the project. “The freedom we all got in terms of the stories we wanted to share, it all clicked.” Best Buy’s Take Stock project celebrates real stories through photographs.
Best Buy Fiscal Year 2022 ESG Report | 57 Recognition . We are proud to receive the following recognition in FY22 demonstrating our commitment to being an inclusive employer: Top 50 Employers for Historically Black Colleges and Universities Students & Grads HBCU Connect Best Places to Work for LGBTQ+ Equality Human Rights Campaign Best Companies for Women to Advance Pa ri t y.o r g Best Places to Work for Disability Inclusion Disability Equality Index Noteworthy for the fourth year in a row DiversityInc Top Companies for Executive Women Seramount Top 100 Most Diverse and Inclusive Companies Refinitiv Most Powerful Women Fortune Best Employers for New Graduates World’s Top Female Friendly Companies Best Employers for Diversity Best Employers for Women Forbes
Best Buy Fiscal Year 2022 ESG Report | 58 In fiscal 2021, we made hiring commitments to be attained by 2025 because we recognize that we have the opportunity to do better. A monthly business review of the metrics allows us to understand our progress and determine new focus areas as needed. We will continue to build an inclusive, diverse and thriving workforce. We are pleased to report the following progress in fiscal 2022: • We filled 37% of new, salaried corporate positions with Black, Indigenous and people of color (BIPOC) employees, compared to our goal to fill one of three positions. • We filled 26% of new, salaried field positions with female employees, compared to our goal to fill one of three positions. • We are focused on taking steps to foster inclusion among all employee groups to create parity in retention rates, including transforming our senior leadership ranks to be more diverse. Measuring progress .
Best Buy Fiscal Year 2022 ESG Report | 59 People of color B lack A sian H ispanic FY21 3 3% 8 % 11% 1 1% FY22 3 9% 8 % 14% 1 3% Percentage increase +6% 0 % + 3% + 2% Diverse leadership. We are proud to be one of only 12 companies in the Fortune 100 to be led by a woman CEO, Corie Barry. Our Board of Directors is 45% female and 36% diverse. We are focused on bringing similar levels of racial parity to leadership roles across the company. Progress in hiring. Last year, our technology team committed to hiring 1,000 new employees within two years, 30% of which would be diverse, specifically Black, Latinx, Indigenous or women. As of the end of fiscal 2022, we hired nearly 900 new technologists, and 39% met our diverse criteria. This shows our hiring and representation of diverse salaried employees. We are committed to increasing these numbers. Measuring progress . Two or more races* FY22 ........................... 4% F Y2 2 To t a l s Manager & above .... 2% VP & above ................ 1% * U.S. employees ** Enterprise-wide employees Black employees* FY18 .......................... 14% FY19 .......................... 14% FY20 ......................... 14% FY21 .......................... 13% FY22 .......................... 14% F Y2 2 To t a l s Manager & above .... 4% VP & above ............... 4% Hispanic employees* FY18 .......................... 21% FY19 ......................... 22% FY20 ........................ 22% FY21 ......................... 22% FY22 ......................... 24% F Y2 2 To t a l s Manager & above .... 7% VP & above ............... 4% Asian employees* FY18 ........................... 5% FY19 ........................... 5% FY20 .......................... 5% FY21 ........................... 5% FY22 ........................... 5% F Y2 2 To t a l s Manager & above ... 12% VP & above ............... 5% Female Employees** FY18 ......................... 26% FY19 ......................... 26% FY20 ........................ 28% FY21 ......................... 27% FY22 ......................... 26% F Y2 2 To t a l s Manager & above .. 34% VP & above .............. 31% Diverse representation.
Best Buy Fiscal Year 2022 ESG Report | 60 Human rights . Best Buy respects human rights. We seek to identify salient human rights risks, develop measures to detect and prevent adverse human rights impacts, conduct remediation if impacts occur, and drive continuous improvement of our human rights management. Further, we seek to advance human rights through our actions and operations. We believe that we can have the greatest impact by focusing on the rights most at risk, as determined by our human rights impact assessment. We seek to manage these risks by: • Respecting the rights of workers in the supply chain and leveraging industry partners through the Responsible Business Alliance (RBA) in order to improve raw material sourcing practices, the recruitment of workers, working conditions and environmental performance in the global electronics supply chain. • Respecting the rights of Best Buy employees and striving for a diverse, inclusive, equitable and respectful workplace free of harassment and discrimination. • Respecting the rights of workers in the consumer electronics recycling value chain through adherence to policies and standards for safe and responsible recycling. • Respecting the rights of our customers, including their right to privacy. • Seeking to advance the right to education in communities where we operate through sharing our knowledge of technology including our Best Buy Teen Tech Centers.
Best Buy Fiscal Year 2022 ESG Report | 61 Human rights . We adhere to a set of internationally recognized standards and principles to ensure we meet our commitment to respect human rights, including: • Following global standards of human rights such as the United Nations Guiding Principles on Business and Human Rights. • Maintaining strong governance practices that include several of the company’s most senior executives. • Communicating our human rights commitments. • Proactively engaging stakeholders to protect and advance human rights through our memberships and partnerships. In FY22, our accomplishments included: • The continued expansion and integration of our Responsible Sourcing program with branded and indirect vendors. • The integration of our optimized responsible sourcing program, within the context of COVID-19, that continues to provide compliance oversight while expanding into additional areas that can have a deeper impact on our supply chain. • Continuing to evolve our human rights due diligence approach across all types of suppliers and business initiatives that adapts to evolving global dynamics. For more details, see our Human Rights Corporate Statement at Corporate.BestBuy.com/Human-Rights .
Best Buy Fiscal Year 2022 ESG Report | 62 Responsible sourcing . Best Buy is not only a retailer, but we also manufacture private label (or Exclusive Brands) products. We partner with 187 factories on the design, production and testing of these products, and we also partner with them to ensure they meet our expectations for safe workplaces where workers are treated fairly. Through our Responsible Sourcing program, we seek to mitigate risk, enhance our partnership with these private label suppliers, and create value for all stakeholders. We are active members of the RBA, which allows us to partner with many of the brands we sell, including Apple, Intel, Microsoft, and Samsung. Collectively, we embrace a common Supplier Code of Conduct and audit methodology that creates business value by improving working conditions and environmental practices in the supply chain. Our Supplier Code of Conduct is publicly available for current and potential suppliers via our partner portal: Partners.BestBuy.com . All our vendor contracts require adherence to our Supplier Code of Conduct. Additionally, we engage with internal cross-functional teams including sourcing, engineering, and supply chain, to promote awareness of our program and deepen the integration of the work into all functions of our private label business. Our Responsible Sourcing program for our private label suppliers consists of a five-step process, working closely with our suppliers to manufacture quality products while ensuring workers are treated fairly in a safe environment. Best Buy Exclusive Brands 1. Code introduction Before working with new suppliers, we provide an in-depth training on our code and program, including our expectations on critical risks such as human trafficking and forced labor. We also conduct a third-party audit of their facilities, which includes environmental and human rights screening criteria. When conducting pre-contract screenings, we identify non- conformance and require the supplier to take corrective action. If there is a priority non-conformance, it must be addressed immediately. Suppliers that are unwilling or unable to address priority violations are rejected. 2. Self-reporting Existing suppliers assess their performance against the code by completing an annual self-assessment questionnaire (SAQ). In FY22, we achieved a 100-percent completion rate for SAQs.
Best Buy Fiscal Year 2022 ESG Report | 63 Responsible sourcing . 3. Monitoring For all private-label suppliers, Best Buy conducts a full audit at least every other year to identify any gaps between the suppliers’ performance and the code. We align our own audit protocol to that of RBA, and also accept other approved third-party audits. Our audits include worker interviews and visits to all structures in the factory premises, including warehouses, dormitories and canteens. Due to COVID-19 barriers, we have adapted to a virtual audit when needed, still prioritizing the same visibility to the facility and workers. We not only assess their social and environmental performance, referred to as “practices compliance,” but we also review the management systems they have in place to drive code compliance, which is known as “management compliance.” When a non-conformance is discovered, we classify it by severity: Priority Non-conformance is the highest-severity audit finding, requiring escalation by the auditor and immediate attention by the vendor. Priority Non- conformance consists of findings that represent: 1) a serious non-conformance of the RBA code or applicable legal requirements; 2) an immediate threat to life or health; or 3) risk of serious and immediate harm to the community or environment. The identification of any Priority Non-conformance (such as forced labor) automatically results in a failed audit. Vendors must take immediate action to remedy all Priority Non- conformances through the Priority Non-conformance Remediation Process. If the factory is unable or unwilling to address the Priority Non-conformance, we will terminate the relationship. High Risk Major Non-conformance is a significant failure in the management system that affects the ability of the system to produce the desired results and/or satisfy legally mandated requirements. Two High Risk Warnings for the same non-conformance finding within a single year is considered the equivalent of a Priority Non-conformance. Major Non-conformance is a significant failure in the management system that affects the ability to produce the desired results. Minor Non-conformance is an isolated or random incident which, by itself, does not indicate an inherent problem with the management system. For all types of non-conformance, we conduct follow-up audits to determine if violations — whether priority, high risk major, major or minor — are resolved. All instances of non-conformance require a corrective action plan, which we approve and monitor.
Best Buy Fiscal Year 2022 ESG Report | 64 Responsible sourcing . Corrective Action Plan closure We believe continued dialogue with suppliers brings more meaningful changes in bettering the lives of our supply chain workers, promoting healthy and safe working conditions, and reducing negative environmental impacts. Whenever non-conformances are found through our own or accepted third-party audits, we expect our suppliers to locate the root cause of the issues and indicate how they intend to improve and measure the progress. The suppliers then must close the non-conformances according to Best Buy’s timelines and provide the supporting evidence. Due to the nature of issues related to working hours and social insurances, we allow factories to provide relatively longer-term risk mitigation plans with phased targets, maintaining continuous dialogue to cultivate transparency and accountability. Finding severity C losed O pen T otal C losure rate Priority 2 0 2 1 00% High Risk Major 9 4 1 3 6 9% Major 25 9 8 2 3 41 7 6% Minor 3 3 5 3 8 8 7% Total 3 03 9 1 394 7 7% • 77% of FY22 due findings were closed/downgraded within timeline. Our progress in FY22. Below are the closure rates of the top five non-conformances (excluding working hours and social insurance, given the aforementioned approach for those) identified during our own or approved third-party audits: Top findings (excluding Closure working hours/social insurance) rate Hazardous Substances ........................ 96% Occupational Safety .............................. 91% Emergency Preparedness .................... 86% Occupational Injury and Illness ........... 85% Freely Chosen Employment ................. 75% In addition, based on our audits and accepted report findings, we found nine factories in violation of certain fees charged to workers. Through our Corrective Action Plan (CAP) process, these factories returned physical examination fees to 382 workers and purchased social or commercial insurance for an additional 1,129 workers. • 100% of priority non-conformances were closed. • 69% of high-risk major non-conformances were closed. • 76% of major non-conformances were closed. • 87% of minor non-conformances were closed.
Best Buy Fiscal Year 2022 ESG Report | 65 Responsible sourcing . 4. Capacity building We build our suppliers’ knowledge so they can close any gap between their performance and the code. We conduct annual trainings on the code to ensure our suppliers have the tools to meet the code, fully understand our expectations and move beyond compliance. We assign e-learning courses through RBA’s e-Learning Academy and create customized training courses to train new suppliers and new auditors, and provide program introduction and updates. 5. Reporting Each year we publicly disclose our suppliers’ rates of compliance against the code. The “Audit Results” table aggregates the performance of all suppliers across numerous checkpoints within the categories listed. FY22 Audits 3rd party audits .................................................. 115 Best Buy audits ..................................................... 21 Total audits ......................................................... 136 Audit Results Category P ractices Management Com pliance Compliance Labor 7 4% 95% Health and safety 7 1% 9 8% Environment 9 3% 98% Ethics 9 9% 98% Management system 1 00% 8 5%
Best Buy Fiscal Year 2022 ESG Report | 66 New norms under the COVID-19 pandemic. The COVID-19 pandemic has continued to impact the way that we implement our Responsible Sourcing program, specifically auditing and training. As noted earlier, we have adapted to virtual audits. The new approaches included remote audits, desktop reviews, shared audits and co- audits, all of which still allow us to assess the factory’s working conditions through documentation review, worker interviews and virtual factory tours. We continue to accept third-party audit reports provided by our suppliers to reduce duplicative audits. This also allows us to shift our focus and resources on training and building deeper relationships with factory management and workers, driving continuous improvement and larger social impact. We also applied a more flexible approach to training. We increased online training options and provided virtual supplier workshops on our requirements and guidance for factories. These new approaches will be kept as an alternative moving forward. Responsible sourcing . Expanding our manufacturing footprint. In order to create greater resiliency and support a strong sustainable supply chain, we have expanded our sourcing beyond China to other countries in Southeast Asia. We leverage the expertise of third parties, industry organizations and peer companies to understand the local culture and regulations, as well as potential risks and opportunities associated with these areas. In order to identify the most reliable suppliers, we continue to proactively engage potential partners, conduct pre-screenings and trainings focused on high-risk issues, and participate in best practice sharing based on local laws and common findings.
Best Buy Fiscal Year 2022 ESG Report | 67 Responsible sourcing . In the coming years, we will continue our efforts to hear workers’ voices through human-centered interviews and surveys as a strong foundation for our supplier performance monitoring and worker engagement. Foreign migrant workers. While migrant workers are just a small percentage of the workers in our private label supply chain, we seek to mitigate the risks they face at every opportunity. We recognize that foreign migrant workers (those who travel temporarily from their home country for employment in another) face unique risks in pursuit of employment. We are committed to working with our supply chain partners so labor recruitment practices meet our supplier code. For example, we work with suppliers to ensure that no foreign migrant worker pays recruitment fees for their job and that all workers retain control of their travel documents and have full freedom of movement. Since FY18, we have worked with suppliers to ensure they reimbursed all RBA-prohibited recruitment fees, totaling approximately $592,700 to 735 workers. In some cases, it takes the factory a significant amount of time to reimburse all fees. For example, in FY21, we engaged two factories that moved their production from China to Taiwan and Thailand respectively. Our proactive engagement with the factories resulted in 294 workers from Vietnam and 156 workers from Myanmar being reimbursed for their recruitment fee — more than $72,000 in total. And in FY22, the supplier reimbursed an additional $8,325 to 81 Myanmar workers after the pre-contract audit was officially conducted. Worker empowerment and worker voice. In FY19, we launched our worker empowerment program and expanded the program in FY20. However, due to the pandemic, the program has been on hold over the last two years. In the meantime, we redesigned the program to fit within the constraints of the pandemic. In FY22, we engaged with 117 workers from 19 factories in our revamped Worker Voice program. We designed this effort to be human-centered and foster authentic dialogue with factory workers for a deeper understanding about their work, life, impression of their working and living conditions and the industry at large. The interviews were structured so the workers could feel they were seen, listened to, and respected. This approach provides deeper insight into the opportunities the factory management has to support its workers, as well as how Best Buy can continue to be a partner invested in empowering the workers in our supply chain. “Every occupation matters and deserves r espect.” “I hope I could have opportunity to visit y our co mpany. You are so kind and friendly. I haven’t experienced th is kindness for long time.”
Best Buy Fiscal Year 2022 ESG Report | 68 Program expansion. In FY22 we continued to expand our Responsible Sourcing Program into our Goods Not for Resale (GNFR) sourcing and our branded vendors. We have incorporated our due diligence for GNFR sourcing into a broader enterprise risk approach, providing greater visibility to the inherent risks in high-risk indirect supplier categories. Additionally, we delved deeper into a subset of high-risk branded vendors, providing critical insight for our business teams. When possible, we take a collaborative approach with these vendors to support and guide them in building out stronger management systems for their manufacturing supply chain. As we look toward the future, we will continue to broaden the scope of vendors we evaluate, hone in on the priority due diligence areas by key risk areas, and deepen the integration of this work into business decisions across the company. Allegations of forced labor. We take any allegations of forced labor seriously and work to investigate and resolve them quickly. We engage industry peers in both the retail and electronics sectors to discuss and, in some cases, develop leading practices for detecting, preventing and mitigating the risk of forced labor. We also work with trusted partners to conduct research and due diligence to identify where risk is present and further investigation is warranted. If conditions of forced labor are identified, it represents the most serious non-conformance, and corrective actions need to be implemented. We provide guidance and support and monitor the supplier’s progress and we ensure the issue is closed through a third-party follow-up audit. Throughout the due diligence and remediation process we seek to align with the UN Guiding Principles on Business and Human Rights. Responsible sourcing .
Best Buy Fiscal Year 2022 ESG Report | 69 Responsible sourcing . Chemicals. A healthy and safe working condition is a salient human right. Chemicals, while necessary as part of many manufacturing processes, directly impact the health of the people who make our products. To this end, we have adopted a Manufacturing Restricted Substance List (MRSL) to build a supply chain without hazardous substances. We continue to engage and work closely with industrial initiatives, NGOs and multi-stakeholder workgroups on methodology exploration. For example, through our participation in RBA’s Chemical Management Workgroup, we have access to some of the tools and guidance being developed by the Clean Electronics Production Network (CEPN). We have adopted the CEPN’s Process Chemical Data Collection (PCDC) template and have surveyed all our suppliers using this tool. We shared results from key suppliers with RBA so that they, along with the CEPN, can begin to assess the landscape of processing chemicals across the electronics industry. This transparency directly contributed to the development of a prioritized list of chemicals targeted for substitutions for the electronics industry. Our suppliers also play a key role in chemical management. We work closely with our suppliers on MRSL chemical identification, management, and minimization of risk. In FY22, we leveraged the updated PCDC and Qualitative Exposure Assessment Tool (QEA Tool) into our chemical management program. All in-scope suppliers are educated on the QEA Tool, and through that training, expectations related to chemical management programs are set. Metric Performance Percentage of suppliers covered by the MRSL chemical assessment ............................................... 100% Percentage of suppliers that attended virtual training .......................................................................... 81% Percentage of suppliers that received training materials .................................................. 100% Percentage of suppliers using MRSL chemicals that received advanced training ..................... 100% Percentage of workers who have contact with chemicals who received chemicals training ...................... 98% Percentage of workers who contact MRSL chemicals received chemicals training .............................. 98% Number of suppliers that reported using the MRSL chemicals ................................................................. 25 Percentage of suppliers using MRSL chemicals that have a plan to remove MRSL chemicals in FY23 ....... 84% Based on the PCDC assessment across our supplier base, we identified the suppliers that were using chemicals on the MRSL, provided them with advanced training, and required these suppliers to remove or to adhere to MRSL restrictions and exposure levels. We have established a regular reporting mechanism to require our suppliers to report their latest status on MRSL management and removal plan annually. We will continue to work closely with our suppliers to control the risk of the hazardous substances by removal, replacement, or other actions in the coming years.
Best Buy Fiscal Year 2022 ESG Report | 70 Milestones of the Chemical Management Program from 2018-22 Responsible sourcing . Fiscal Year 2022 Fiscal Years 2020-21 Fiscal Year 2019 Fiscal Year 2018 Updated Chemical Management Statement. Participated in the RBA Chemical Workgroup. Adopted the CEPN’s Process Chemical Reporting Template. Enlarged the scope of the Chemical Management Program to all category suppliers. Leveraged the Qualitative Exposure Assessment Tool (QEA Tool) into the MRSL chemicals management process. Required suppliers using MRSL chemicals to remove, replace, or mitigate exposure in adherence to the MRSL. Released the first Chemical Management Statement which includes a Restricted Substance List for our products and for the use of chemicals in the manufacturing process. Launched the Chemical Management Program for all TV suppliers.
Best Buy Fiscal Year 2022 ESG Report | 71 Energy consumption and greenhouse gas emissions. Over the past nine years, we have leveraged our Supplier Code of Conduct to deliver our carbon management expectation: “Participants are to establish a corporate-wide greenhouse gas reduction goal. Energy consumption and all relevant Scopes 1 and 2 greenhouse gas emissions are to be tracked, documented, and publicly reported against the greenhouse gas reduction goal. Participants are to look for methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.” In FY22, we reached out to our suppliers to survey their greenhouse gas management. Based on the results from 156 of the 189 suppliers we surveyed we have a clearer picture of current suppliers’ performance relative to our Code of Conduct and identified opportunities to enhance our supplier greenhouse gas reduction efforts in the future. Responsible sourcing . 20 (10.58%) supplier factories were tracked as using energy from renewable sources Renewable energy 103 (66.02%) supplier factories implemented projects to reduce energy consumption at their factories Energy efficiency 38 (24.3%) suppliers were tracked to establish GHG scope 1 & 2 inventory and have been certified by 3rd party GHG inventory 86 (55.13%) ExB suppliers established a GHG reduction goal Supplier goals
Best Buy Fiscal Year 2022 ESG Report | 72 Conflict minerals . The Democratic Republic of the Congo (DRC) and its neighboring countries have reserves of tin, tantalum, tungsten and gold (known as 3TG), all of which are commonly used in the manufacturing of many consumer products. Occasionally, these minerals are illegally sourced and traded by armed groups who are responsible for human rights violations. As such, 3TG are known as “conflict minerals.” At Best Buy, we are committed to working toward a conflict-free supply chain for our private label products. We align our conflict minerals program with the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, an internationally recognized framework. Despite advances in supply chain transparency and traceability capabilities, it remains a challenge to identify, with certainty, the smelters, refiners and recyclers in our private label supply chain. Training our direct suppliers and auditing their performance are keys to addressing this. In FY22, 100 percent of our suppliers received training specific to conflict minerals, and since 2017, we’ve audited the due diligence efforts of 47 of our suppliers who use 3TG.
Best Buy Fiscal Year 2022 ESG Report | 73 Our practices. We partner with brands and retailers across multiple industries to identify relevant smelters and refiners, and encourage their participation in the Responsible Mining Initiative’s (RMI) Responsible Minerals Assurance Process (RMAP), or an equivalent program, including the London Bullion Market Association’s (LBMA) Good Delivery program and the Responsible Jewelry Council’s (RJC) Chain of Custody program. Because we do not have a direct relationship with smelters in our supply chain, we do not conduct audits. Instead, we support the development and implementation of a smelter audit program through our membership in the RMI, which administers the audits. We support many RMI activities, including previously serving as the Chair of the RMI Steering Committee, the Chair of the Smelter Engagement Team (SET) and Co-Chair of the China SET, which conducts coordinated outreach to known smelters to encourage them to be audited. Our performance. In FY22, 100% of our suppliers completed a Conflict Minerals Reporting Template, detailing the smelters and refiners used as well as their audit status. To date, 79% of the processing facilities reported by our suppliers have been found conformant to the RMI, LBMA or RJC standard via an independent, third-party audit or have committed to go through an audit. We continue to engage with the single vendor that this drop in our conformance rate is attributed to. The vendor has its own conflict minerals program, which includes third party support, and we are working to implement a plan to do further due diligence on many of the factory’s suppliers who reported non-conformant smelters and begin the process of removing the recalcitrant smelters from their supply chain. We remain engaged with this vendor and factory to monitor their progress and offer our support and will do so until the non-conformant smelters have been audited or removed from the supply chain. More details can be found in our Conflict Minerals Policy and Conflict Minerals Report at Corporate.BestBuy.com/Sustainability . Conflict minerals . Suppliers who received conflict minerals training materials ........................................................... 100% Products containing necessary 3TG that have had their supply chains surveyed ....................... 100% Relevant suppliers who returned a Conflict Minerals Reporting Template ................................... 100% Relevant suppliers who have a Conflict Minerals Policy ...................................................................... 93%
Best Buy Fiscal Year 2022 ESG Report | 74 Social impact . We are committed to helping prepare teens from disinvested communities for the careers of the future. By creating ways for young people to access the training, tools and mentorship needed to succeed in post- secondary opportunities and their careers, we’re building a diverse talent pipeline for Best Buy and other companies. We are proud of our social impact initiatives, and we know that we can do more when we collaborate. Our work is made possible through a network of dedicated employees, community organizations, vendor partners and philanthropic supporters. Together, we’re making sure that every young person has the technology, training and mentorship they need to succeed. Our commitments. • Reaching 30,000 teens annually from disinvested communities across the nation by working with a network of community partners and building 100 Best Buy Teen Tech Centers to build a talent pipeline for a modern economy. • We plan to spend $44 million by 2025 to expand college preparation and career opportunities for BIPOC students, including adding scholarships for Historically Black Colleges and Universities students and increasing scholarship funding for Best Buy Teen Tech Center youth. • Expanding opportunity for BIPOC teens in our home market of the Twin Cities by investing in more local Teen Tech Centers, creating a scholarship fund specifically for Twin Cities-based teens, committing to hosting interns from Teen Tech Centers and other program partners, and offering jobs across the company to teens.
Best Buy Fiscal Year 2022 ESG Report | 75 Best Buy Teen Tech Centers . Best Buy® Teen Tech Centers™ are safe, after-school learning environments located in disinvested communities, equipped with cutting-edge technology where teens can develop critical skills through hands-on activities that explore their interests in tech-reliant careers such as coding, filmmaking, music production, graphic design and more. Each location works to bridge the digital divide by giving youth access to tech education, mentors to build confidence, and a foundation of skills for school and career success. The learning model. The Teen Tech Centers share a learning model developed by the MIT Media Lab and operationalized by global nonprofit The Clubhouse Network. The learning model guides everything from the programming to the design of the physical space. The model focuses on four key tenets: • Projects: Encouraging young makers and doers to ideate, create, and iterate. • Passions: Providing opportunity for teens to work on projects that fuel their passions. • Peers: Fostering creativity through collaborative, peer-to-peer learning. • Play: Supporting risk-taking and celebrating failure as part of the process. The approach grounds itself in the fields of education, developmental and school psychology, cognitive science, and youth development. It builds on research around the role of motivation in the learning process and the value of social interactions. It also leverages new technologies to support a variety of learning experiences and aims to engage young people through the combination of technology and the arts.
Best Buy Fiscal Year 2022 ESG Report | 76 Best Buy Teen Tech Centers . Workforce readiness programming. Teen Tech Centers offer youth the opportunity to explore technology and learn about careers they never knew existed. Through career panels, local company tours and engagement with professional mentors, teens gain a deeper understanding of the many “behind the scenes” jobs in their local community and beyond. Additionally, Teen Tech Centers offer a formal Career Pathways program to older youth that helps build a bridge to the post-high school world. Cohorts of 10-15 teens gather regularly for six to nine months to learn technical skills such as coding, film production, digital marketing, and app development. Teens engage with mentors with subject matter expertise and professional experience, and develop workforce readiness skills, including interviewing and resume writing, communication with peers and supervisors, and professional dress. Each teen who successfully completes the training program is placed into a paid summer internship in their local community. The Best Buy Foundation provides Teen Tech Centers an annual grant to staff and run the program, along with funding to a slate of national partner organizations to lead technical skills training. Past national partners have included organizations such as Creating IT Futures, Cyber Seniors, Fresh Films, and Grammy Museum. We are expanding our Career Pathways offerings over the upcoming fiscal year to include opportunities such as a paid Direct-to-Hire program to prepare Teen Tech Center youth for a range of career opportunities at Best Buy and other companies.
Best Buy Fiscal Year 2022 ESG Report | 77 The power of partnerships. Each Teen Tech Center is outfitted with a package of state-of-the art technology that is regularly updated and refreshed. The professional-grade tech, much of which is donated by Best Buy’s vendor partners, lets teens make, create and innovate while also learning key tech skills that can be used in school, careers and beyond. Examples of the many partners that contribute funding, technology and other resources to the Teen Tech Center program include: Meta Platforms Inc. committed to sponsor six Best Buy Teen Tech Center locations around the country. Meta is also providing AR/VR technology and programming for every Teen Tech Center. Microsoft partnered with Best Buy during our first-ever Teen Tech Center Giveback campaign. Through this campaign, Microsoft committed to donate a portion of Best Buy sales from Surface devices to Teen Tech Centers. Shark Ninja donates high-quality air purifiers to all Teen Tech Centers. The request originated directly from Teen Tech Center staff during the COVID-19 pandemic and is one example of how we have shifted the tech donation assortment to fulfill real-time community needs. Best Buy Teen Tech Centers .
Best Buy Fiscal Year 2022 ESG Report | 78 Creating a space for young women to explore STEM. When Olivia Farley became coordinator of the Best Buy Teen Tech Center at Keystone Community Services, she noticed something was missing: girls. The center, located in St. Paul, Minnesota, opened in 2017 as a place where teens can explore their interests in all things tech, from coding and graphic design to filmmaking and everything in between. Giving youth — especially girls — access to tech education opportunities is important to Best Buy. We’re committed to closing the gender gap and helping train girls for the careers of the future. Women make up 29% of all science and engineering occupations, with women of color making up a mere 13%, according to a report by the National Science Foundation. Olivia could see these numbers reflected in the makeup of her own center, which was primarily attended by young men. So, she had an idea to create a program — and a space — for young women. She calls it the Girls Coding Camp. “There are high school-aged girls out there and plenty who want to be involved in tech, so we’re trying to reach more of them and create a more comfortable environment for them to learn,” she said. Participants in the all-female program learned a coding language called JavaScript from two Best Buy employee volunteers who signed up as mentors. JavaScript can be used to develop games, build apps and even program robots. Best Buy Teen Tech Centers .
Best Buy Fiscal Year 2022 ESG Report | 79 Best Buy commits $10M to grow opportunities for youth in L.A. We’re committing $10 million to build a new network of opportunities for youth in disinvested communities in Los Angeles County. The Community Impact Hub was created in collaboration with founding partners The Annenberg Foundation and the Greater LA Education Foundation, the philanthropic arm of the Los Angeles County Office of Education. This model will create up to 12 new Teen Tech Centers in the LA area by 2023. The initiative builds on a five-year plan we unveiled to address underrepresentation and technology inequities and provide more educational and career opportunities for youth by expanding our network of Teen Tech Centers nationwide. This expanded network of 12 centers will help prepare at least 3,000 LA-area youth per year for industry career opportunities within their communities, including roles in music and film. “A lack of opportunity and access prevents millions of young people — especially those from disinvested communities — from reaching their full potential,” Best Buy CEO Corie Barry said. “We’ve seen how one Teen Tech Center in a community can build brighter futures, and by partnering with local Los Angeles organizations, we’ll be able to help more youth pursue their dreams.” Best Buy Teen Tech Centers .
Best Buy Fiscal Year 2022 ESG Report | 80 Locations as of June 1, 2022 Tex a s • J uanita J. Craft Recreation Center – 4500 Spring Ave., Dallas, TX 75210 – Powered by Samsung Electronics America, Inc. • F amily Services Association – The Neighborhood Place, 3014 Rivas St., San Antonio, TX 78228 • B oys & Girls Clubs of Greater Houston – Morefield Club – 5950 Selinsky Rd, Houston, TX 77048 • P roject Vida 3607 Rivera Ave, El Paso, TX 79905 – Powered by Eva Longoria Foundation Utah: Promise South Salt Lake – Columbus Center 2531 South 400 East, South Salt Lake City, UT 84115 – Powered by Progressive Leasing Virginia: C4K – 945 2nd Street SE, Charlottesville, VA 22902 Washington: Boys & Girls Clubs of Bellevue – 15228 Lake Hills Blvd., Bellevue, WA 98007 Washington, D.C.: FBR Club @THEARC – Boys & Girls Clubs of Greater Washington – 1901 Mississippi Ave. S.E., Washington, D.C. 20020 Wisconsin: Boys & Girls Clubs of Greater Milwaukee – Mary Ryan – 3000 N Sherman Blvd, Milwaukee, WI 53210 Vancouver, Canada: Boys and Girls Clubs of South Coast BC – Hillside Club 11339 84 Avenue, Delta, BC V4C 2L9 Missouri • B oys & Girls Clubs of Greater St. Louis – Herbert Hoover Club – 2901 N Grand Ave, St. Louis, MO 63110 – Powered by Premium Retail • Y MCA of Greater Kansas City – North Kansas City – 1999 Iron Street North, Kansas City, MO 64116 – Powered by T-Mobile Foundation Nevada: Clark County Library – 1401 E Flamingo Rd, Las Vegas, NV 89119 N ew Yo r k • B rooklyn Public Library – Kings Highway Branch – 2115 Ocean Ave, Brooklyn, NY 11229 Powered by ERI • G rand St. Settlement - Essex Crossing 168 Broome St, New York, NY 10002 Ohio: Cleveland Public Library – Rockport Branch – 4421 W 140th St, Cleveland, OH 44135 – Powered by Regency Technologies Oregon: Oregon Museum of Science & Industry (OMSI) – 1945 SE Water Ave, Portland, OR 97214 Pennsylvania • P hase 4 Learning Center – 5850 Centre Ave, Pittsburgh, PA 15206 • G reater Philadelphia YMCA – Columbia North YMCA – 1400 North Broad St. Philadelphia, PA 19121 Tennessee: Knowledge Quest - 900 College Park Drive, Memphis, TN 38126 Indiana: Martin Luther King Community Center – 40 W 40th St, Indianapolis, IN 46208 – Powered by Klipsch Kentucky: YMCA of Greater Louisville – 1700 W Broadway, Louisville, KY 40203 – Powered by GE Appliances Louisiana: New Orleans Public Library Main Branch – 219 Loyola Ave, New Orleans, LA 70112 Massachusetts: The Clubhouse Network – 2107 Washington St, Boston MA 02119 – Powered by iRobot, Bose Michigan: Detroit Hispanic Development Corporation – 1211 Trumbull Ave, Detroit, MI 48216 Minnesota • H ennepin County Library — Minneapolis Central – 300 Nicollet Mall, Minneapolis, MN 55401 • B rian Coyle Center – 420 15th Ave S, Minneapolis, MN 55454 • H ope Community Center – 611 E Franklin Ave, Minneapolis, MN 55404 • K eystone Community – 1150 Selby Ave, St. Paul, MN 55104 • S t. Paul Downtown YMCA – 21 4th St E, St Paul, MN 55101 – Powered by Richard M. Schulze Foundation • C LUES St. Paul – 797 7th St E, St Paul, MN 55106 • S ummit Academy OIC – 935 Olson Memorial Hwy, Minneapolis, MN 55405 – Powered by Koch Trucking • T he Capri at Plymouth Christian Youth Center – 2027 W Broadway Ave, Minneapolis, MN 55411 – Powered by Joly Family Foundation Alabama: Wallace Community College Selma – 3000 Earl Goodwin Pkwy, Selma, AL 36703 – Powered by MJ 93-90 Foundation Arizona: Jerry Colangelo Branch – Boys & Girls Clubs of Metro Phoenix – 1755 N 34th Ave, Phoenix, AZ 85009 California • P .F Bresee Foundation – 184 S. Bimini Place, Los Angeles, CA 90004 • B oys & Girls Club of San Marcos – 1 Positive Place, San Marcos, CA 92069 – Powered by Sony • M ACLA - 510 South 1st Street. San Jose, CA 95113 Powered by Google • L egacy LA 1350 San Pablo Street, Los Angeles, CA 90033 – Powered by JBL • B oys & Girls Club of San Leandro -Marina Unit, 401 Marina Blvd, San Leandro, CA 94577 – Powered by Logitech • B oys & Girls Club of the Peninsula - Moldaw-Zaffaroni, 2031 Pulgas Ave, East Palo Alto, CA 94303 – Powered by Meta Colorado: Gold Crown Enrichment – 150 S. Harlan St., Lakewood, CO 80226 Connecticut: YMCA of Greater Hartford – Wilson-Gray Club – 444 Albany Ave, Hartford CT 06120 Florida: • H ANDY Inc. – 501 NE 8th St, Fort Lauderdale, FL 33304 • B oys & Girls Club of Central Florida – JRL Eatonville – 400-B Ruffel St. Eatonville, FL 32751 – Powered by Premium Retail Georgia: Atlanta-Fulton County Library – Central Library – One Margaret Mitchell Square, Atlanta, GA 30303 Best Buy Teen Tech Centers .
Best Buy Fiscal Year 2022 ESG Report | 81 Scholars . Best Buy Scholars. To support students and build a diverse talent pipeline across the country, Best Buy has committed to providing $44 million to expand college prep and career opportunities for students from disinvested communities, as well as BIPOC students. As part of those efforts, we partner with the United Negro College Fund (UNCF) and University of Minnesota’s Carlson School of Management to make a college degree more accessible for students from disinvested communities, including those who were Teen Tech Center participants. Through our partnership with UNCF, we support scholars to attend a variety of post-secondary institutions , including traditional four- year institutions, HBCUs, and technical and community colleges. Each scholar is eligible to receive up to $20,000 in financial assistance each year for up to four years. Geek Squad Academy. Geek Squad Academy (GSA) is a two-day tech camp for middle school- aged students run by Best Buy employee volunteers. The program sparks excitement and interest in tech through a series of high energy, interactive classes on topics such as robotics, music production and coding. In a typical year, we host approximately 50-60 camps around the country. In FY22, we shifted the GSA program to a virtual, on-demand environment. Our Geek Squad Agents created a suite of free online courses designed for students between the ages of 9 and 18, including topics such as smartphone photography, binary coding, and video game and website design.
Best Buy Fiscal Year 2022 ESG Report | 82 Hometown giving. Twin Cities: We’re proud to support Minnesota organizations that contribute to the wellbeing of our local community. In FY22, we gave $415,000 in Arts & Culture-focused grants to 30 organizations, $1.19 million in Teens & Tech grants to 41 organizations, and $1.49 million in Capital Grants to 11 organizations. Seattle: In support of the community surrounding our Seattle tech office, we fund programs and organizations that provide teens from disinvested communities in the King County metro area access to tech, training and mentorship. In FY22, we funded seven nonprofit organizations, including Black Girls Code, Geeking Out Kids of Color, and The Vera Project. Total giving. In FY22, we gave more than $22 million in grants, sponsorships, program support and in-kind donations to communities around the country. Philanthropy . Best Buy customers contribute $5.5M to support Teen Tech Centers. As part of Best Buy’s longstanding commitment to building brighter futures for teens through tech, we invited our customers to join us in that work. Between July and October of 2021, customers contributed more than $5.5 million to help support the Best Buy Teen Tech Center program. The campaign sought to educate customers about this initiative and allowed them to make a tax-deductible donation when making a purchase, including at a Best Buy store, on BestBuy.com or in the Best Buy App. These donations support essential elements of our Teen Tech Centers, such as construction and startup costs for new locations, cutting-edge technology, and training and development for staff. Other ways we support. St. Jude: Best Buy has supported St. Jude Children’s Research Hospital® through the Thanks and Giving® Campaign since 2013. During the 2021- 22 holiday season, we raised more than $20.5 million for the annual St. Jude Thanks an d Giving® campaign, making it our sixth year in a row as the top corporate fundraising partner. Best Buy has collected more than $145 million in donations for St. Jude in totality. HOPE Fund: In partnership with The Richard M. Schulze Family Foundation, the HOPE Fund helped more than 1,000 Best Buy employees experiencing financial hardship by distributing about $2 million in aid. The HOPE Fund supports employees in hardship situations and provides them with the opportunity to receive up to $2,500 in financial assistance.
Best Buy Fiscal Year 2022 ESG Report | 83 Governance .
Best Buy Fiscal Year 2022 ESG Report | 84 The Board of Directors of Best Buy is committed to good corporate governance practices and a sound governance structure that: enables the success of our strategy and business objectives, is rooted in a robust ongoing dialogue with our shareholders and is inspired by best practices. Our policies and practices including the following: Board structure • Lead Independent Director (at times when our Chairman is not independent) • Annual Director elections • Robust annual Director evaluation process • Majority vote for Directors • All independent committees • No Director-related party transactions • Director retirement policy Shareholder rights • No cumulative voting rights • No adopted poison pill • Proxy access by-laws • No exclusive forum/venue or free- shifting provisions • No supermajority voting requirements in our Articles Compensation • Pay for performance compensation programs • Annual Say-on-Pay vote • Anti-hedging and anti- pledging policies • Clawback policy for both cash and equity awards • Stock ownership guidelines for Directors and Executives Corporate Governance . The Board seeks a wide range of experience, skill sets and diverse perspectives to support our long-term strategic goals. More can be found in our FY22 Proxy Statement and Corporate Governance Principles at Investors.BestBuy.com . 0-3 years 4-6 years 7+ years Director Tenure Independence 10 of 11 director nominees are independent, including the board chair
Best Buy Fiscal Year 2022 ESG Report | 85 ESG Governance . Our ESG governance starts at the highest level of our company. Given the depth and breadth of risks relating to ESG matters, we share oversight and responsibility for such risks across the entire Board and all of its committees, leveraging the expertise of each member. • The Nominating, Corporate Governance and Public Policy Committee oversees Best Buy’s governance, ESG strategy and ESG reputational risks by way of quarterly discussions with management on our environmental goals and progress, social responsibility programs, and public policy positions and advocacy. • The Audit Committee plays a significant role in the oversight of our ESG risks related to compliance, including ethics and environmental and safety audits. • The Compensation Committee oversees Best Buy’s human capital management and DE&I related risks through a rigorous regular review of our strategies and programs. The committee continues to evaluate how to appropriately incorporate ESG metrics into its Executive Compensation program. • The Finance & Investment Policy Committee focuses on the risks of our ESG-related financial investments, such as our solar energy investments. Our Chief Communications and Public Affairs Officer, a direct report of the CEO, holds ultimate responsibility for all environmental and social impact work. In addition, leaders from across the company participate in our ESG Steering Committee, which advises on strategy and supports business integration.
Best Buy Fiscal Year 2022 ESG Report | 86 Ethics . For more than 50 years, Best Buy has been a purposeful, values-driven, human organization. We are dedicated to serving our customers, employees, vendors, shareholders and the communities in which we operate in an ethical manner. At Best Buy, we strive to do well by doing good. Our partners. Our suppliers, vendors and other third-party business partners are required to uphold the same high standards of business conduct as we do. The specific requirements that they must meet are outlined in our Supplier Code of Conduct located at Partners.BestBuy.com. An ethical culture. An ethical culture is built around everyday decisions — what you do when no one is watching. Sometimes, it’s about going above and beyond for a customer, and sometimes it’s about speaking up when something doesn’t feel right.
Best Buy Fiscal Year 2022 ESG Report | 87 Ethics . We want our employees to know what we stand for as a company and feel that they are fully supported. Every year our employees participate in a training on our Code of Ethics , which contains real-life examples of situations employees encounter to help guide their decision-making. In addition, in FY22, employees across the enterprise participated in anti-harassment training, further strengthening our ethical culture. Our Code of Ethics encourages employees to act when they see conduct that is inconsistent with our high standards and provides the resources to do so, including our independent third-party operated Open & Honest Ethics Line, available 24/7, through which reports can be made anonymously. This past year, Best Buy surveyed employees to assess the health of the company’s ethical culture, and we took steps to increase employee trust and confidence in our reporting process. To help raise awareness and increase transparency, we are sharing the following information with employees and stakeholders: We are proud to be recognized by Ethisphere as one of the World’s Most Ethical Companies for the eighth time. We are one of only three retailers on this year’s list, which considers issues such as culture, environmental and social practices, ethics and compliance activities and diversity initiatives. Number of conduct-related reports raised by employees in FY22 ............. 16,533 Perc. of reports categorized as allegations ....... 63% Perc. of reports categorized as inquiries ............ 37% Best Buy Fiscal Year 2022 ESG Report | 87
Best Buy Fiscal Year 2022 ESG Report | 88 Health and safety . Occupational health and safety. Best Buy values the health and safety of employees and customers as our most important assets. Our goal is to reduce the potential for injuries to people, employees and customers, and minimize potential damage to property. To that end, we regularly review our safety and health programs and make adjustments to them. Only through the full engagement of all employees are we able to achieve this goal. We take care of our employees, so they take care of our customers and our company. It starts with giving them the tools they need to avoid harm while doing their jobs. We train them on how to take ownership of their safety at work through our “Own Your Safety” campaign, which includes how to properly use equipment, how to de-escalate tense situations and how to protect themselves with a training about active shooters. We also work to go above and beyond as an employer, by sending employees text messages when a natural disaster strikes to ensure they are safe, shutting down stores threatened by civil unrest or severe weather, or offering financial help through the HOPE Fund, which is described on page 33. This past year we implemented and improved a variety of programs to support a safe working and shopping environment. • We renewed our training strategy with employee-first language and campaigns, diverse learning modalities and interactive scenario-based assessments. • We developed new safety protocols and trainings for powered industrial trucks. • In our supply chain locations, we implemented refreshed job safety analysis (JSA), Near-Miss and AED programs. • We launched a new ergonomic and stretching program to help Geek Squad Agents stay healthy and avoid injuries. • We also created a new safety compliance leader role to focus on companywide safety compliance.
Best Buy Fiscal Year 2022 ESG Report | 89 Health and safety . Pandemic. The health and safety of our employees and customers continues to be a top priority. As the COVID-19 pandemic continues to evolve, so do our health and safety protocols, informed by Centers for Disease Control (CDC) guidance, local requirements and enhanced scientific knowledge concerning COVID-19 and its variants. We continue to offer customers a variety of ways to shop, including contactless curbside pickup and digital retail services, that allow customers to safely get the Best Buy tech they need. We maintain an array of safety procedures at our stores, including encouraging the use of face coverings as appropriate, requiring employees to complete daily health screenings before starting their workday, offering employees free COVID-19 testing when recommended under our protocols and continuing frequent cleaning procedures. At our corporate headquarters and other office locations, we implemented enhanced ventilation and filtration practices to help ensure the safety of employees as they return to work. We have offered, and continue to evaluate, vaccination incentives and enhanced employee benefits throughout the pandemic as further described within the Employee Benefits section. We continue to work with leading industry experts and utilize best practices, informed by CDC guidance, to ensure the health and safety of our employees and customers. In recognition of our efforts throughout the pandemic, last year Barron’s magazine named Best Buy the company with the best response to the COVID-19 crisis in the U.S.
Best Buy Fiscal Year 2022 ESG Report | 90 Data privacy and security . Securing customer information and honoring our privacy promises are core employee obligations at Best Buy, as highlighted in our Code of Ethics. Our customers entrust us with their information, and we seek to honor that trust through our cybersecurity and privacy practices. Cybersecurity. We recognize the importance of ensuring the ongoing safety and security of our data, systems and technology. To effectively address information security risk, we have established a dedicated information security team to assess, monitor and maintain our assets, while also responding to cyber-related incidents. Our information security program, led by our Chief Information Security Officer (CISO), is designed around the industry-standard National Institute of Standards and Technology’s Cyber Security Framework (NIST-CSF). We engage with outside expertise periodically to assist in the ongoing development of this program and are audited annually for compliance with Payment Card Industry Data Security Standards (PCI-DSS). The CISO updates our Board of Directors’ Audit Committee no less frequently than quarterly on our program and cybersecurity matters. We have established a dedicated cyber threat intelligence team to ensure that we stay abreast of new and evolving cyber threats. Our teams are constantly evaluating our cyber risk and performing technical assessments against our systems to ensure our resilience. Our teams also monitor for newly released vulnerabilities, working quickly to understand applicability to our systems and performing mitigation where necessary. We operate a suite of technical information security capabilities designed to protect our organization from and detect attempted attacks. Our cyber security operations and response teams are continuously monitoring for and responding to threats to keep our systems secure. We have a detailed and exercised response plan prepared to guide our response to major information security events. We did not experience any material cyber incidents affecting Best Buy in FY22.
Best Buy Fiscal Year 2022 ESG Report | 91 Data privacy and security . Data privacy. Best Buy’s purpose is to enrich lives through technology, and we only collect, use or share personally identifiable information for that purpose. We also take steps to ensure that consumers can actively engage with us concerning their privacy. For example, the California Consumer Privacy Act (CCPA) grants California consumers a set of personal information options, including asking for access to the information a business has collected about the consumer or to delete certain information. Best Buy has extended the availability of these personal information options to all Americans. Consumers can learn more about our privacy practices on our dedicated Privacy pages on BestBuy.com. Employee training. All Best Buy employees participate in our Valuable Information Protection (VIP) training and awareness program. VIP comprises traditional online training, engagement activities, and targeted training for specific roles based on responsibilities and risk level. We update VIP content continuously to reflect current security and privacy challenges. For example, we recently held a “phishing tournament” to increase employee awareness on how to identify and report phishing emails and the associated risks such as ransomware. ! ! 0 2 5 1 ! ! ! ! ? ? ? ? ? ? ? ?
Best Buy Fiscal Year 2022 ESG Report | 92 We expect the products we sell to work the way they’re supposed to and be safe for our customers to use. We take pride in our company and the products we offer, and we take action on any potential safety hazards not just to ensure compliance, but because it’s the right thing to do. For our direct import and private label products, we focus our product safety in four areas: • General product safety compliance with various voluntary and mandatory standards • Hazardous substances through our Chemicals Management Program based on the IECQC 080000 standards • Energy efficiency programs • Radio-frequency interference compliances (FCC rules for radio noise and communications) We assess our product categories for safety improvements on an ongoing basis. Product recall information can be found by searching “ product recalls ” at BestBuy.com or by calling 1-800-566-7498. In FY22, there were no product recalls on our private label products. Because nothing is more important than our customers’ safety, in April 2022 Best Buy voluntarily recalled certain models of Insignia air fryers in cooperation with the U.S. Consumer Product Safety Commission (CPSC) and Health Canada. The reason for the recall is that these certain models can overheat, posing potential fire and burn hazards. Additional information can be found at BestBuy.com or the CPSC website . Product safety .
Best Buy Fiscal Year 2022 ESG Report | 93 Political activity . Best Buy engages in the political process by developing and advocating public policy positions that directly impact our business, employees, customers, shareholders and communities. In line with our commitment to transparency, Best Buy discloses our efforts, priorities and any use of corporate funds for political purposes. 2021 public policy issues. Ta x: Retain a fair and competitive corporate tax code and protect against drastic corporate tax increases that disproportionately impact the retail industry. Trade: Support trade policies that address trade barriers disproportionally challenging to businesses. Responses to those unfair trade barriers should seek to minimize impacts to American consumers so as not to increase costs of tech products. Fair Competition: Support review and modernization to antitrust laws to ensure applicability to large technology platforms, and support efforts to curb organized retail crime and counterfeits, including increasing transparency of online marketplace sellers. Continue to advocate for increased competition in the payments ecosystem and expand interchange reforms to credit cards to reduce “swipe fee” expenses. Workforce Issues: Support policies that provide employers the flexibility to complement the modern workforce and attract and retain talent by offering competitive wages, benefits and flexible scheduling. Cybersecurity, Data Privacy & Internet of Things: Support policies to strengthen the nation’s cyber infrastructure and committed to safeguarding customer data and ensuring a relationship with customers that better understands and serves their needs and interests.
Best Buy Fiscal Year 2022 ESG Report | 94 Political activity . Supply Chain & Infrastructure: Support investments to the nation’s multi-modal infrastructure and the free flow of commerce while promoting a safe and secure supply chain. COVID-19: Support policies recognizing Best Buy as an essential retailer of products and services to work, learn, entertain, and cook at home. And support COVID relief legislation to support the economic well- being, health and safety of businesses, employees and customers. Social Justice: Support policies that advance comprehensive immigration reform, racial equity, education and apprenticeships, and sustainability. Committed to the belief that every American deserves a voice in democracy and support bipartisan legislation that promotes and ensures voting is accessible to all. Environmental Sustainability: Promote the responsible recycling of electronic waste and policies that encourage energy efficient design, innovation and use. Emerging Technologies & Innovation: Support policies that allow for the expansion of telehealth, emergence of new, innovative technologies and products that improve consumers’ lives. Political contributions. Best Buy did not make any corporate political contributions directly to candidates in 2021. All contributions of more than $5,000 are reviewed and approved by the Best Buy Contributions Steering Committee. These political organizations received equal funding totaling $100,000. • Democratic Governors Association • Republican Governors Association Best Buy did not make any contributions that could be considered independent expenditures or that supported electioneering communications or ballot measures in 2021. Best Buy maintains an employee-funded political action committee (“Best Buy Employee Political Forum”), and its activity can be viewed at FEC.gov . Please see the Best Buy Political Activity & Government Affairs Policy and the Best Buy 2021 Political Activity Report on Corporate.BestBuy.com/Advocacy for additional information.
Best Buy Fiscal Year 2022 ESG Report | 95 Stakeholder engagement . We form relationships with the many people and organizations that have a collective stake in what we do. We interact daily and in a variety of ways with our employees, customers and communities. We also actively engage in dialogue with external organizations that provide valuable insights and challenge us to grow. • Best Buy employees participate in formal employee engagement surveys each year, supplemented by quarterly development conversations with their leaders, and interact with the company and one another through internal communications platforms. • In addition to our direct customer conversations, we regularly survey our customers and individuals who chose to not purchase from us in order to elicit feedback relating to their overall satisfaction with Best Buy. • We have regular interaction with elected officials and staff at the local, state and federal levels, government agencies and associations on issues that affect our business or society more broadly. • We have ongoing contact with our investors through calls and meetings, stakeholder councils and analyst surveys where we are able to disclose specific ESG information. • We maintain relationships with non-governmental organizations (NGOs), such as industry organizations, activists and community nonprofits, to advance the progress in our focus areas. • We partner with our product vendors and manufacturing suppliers to innovate and bring additional business value.
Best Buy Fiscal Year 2022 ESG Report | 96 Association memberships . • Aspen Institute Business & Society Leaders Forum • Association of Corporate Citizenship Professionals • Business for Social Responsibility (BSR) • Business Roundtable • Carbon Disclosure Project (CDP) Reporter Services • Ceres • Chief Executives for Corporate Purpose • Clean Energy Buyers Alliance • Consumer Technology Association • Environmental Initiative — Minnesota Sustainable Growth Coalition • Ethisphere • Future of Privacy Forum • Green Chemistry and Commerce Council • International Association of Privacy Professionals • International Consumer Product Health and Safety Organization • Issues Management Council • Minnesota Business Coalition for Racial Equity • Minnesota Business Partnership • Minorities in Cybersecurity • National Center for Electronics Recycling • National Minority Supplier Development Council • Net Impact — Corporate Advisory Council • Public Affairs Council • Reboot Representation Tech Coalition • Responsible Business Alliance • Responsible Labor Initiative • Responsible Minerals Initiative • Retail Council Canada • Retail & Hospitality Information Sharing and Analysis Center • Retail Industry Leaders Association • Society of Corporate Secretaries and Governance Professionals • Women’s Business Enterprise National Council
Best Buy Fiscal Year 2022 ESG Report | 97 Appendix .
Best Buy Fiscal Year 2022 ESG Report | 98 Environmental data . Energy consumption within the organization Fuel consumption: 3,291,527,000,000,000 joules Electricity consumption: 780,913 MWh Total Scope 1 and 2: 1,696,940 MWh Fuel consumption: 3,465,161,017,412,860 joules Energy consumption: 754,846 MWh Total Scope 1 and 2: 1,717,391 MWh Energy intensity (Scope 1 + Scope 2)** .039 MWh/Sq Ft 0.0416 MWh/Sq Ft Reduction of energy consumption (Scope 1 + Scope 2)** -161,720 MWh or 9.0% decrease YOY 21,465.00 or 1.2% increase YOY Direct GHG emissions (Scope 1) 246,895 MT CO 2 e 257,049 MT CO 2 e Energy indirect GHG emissions (Scope 2 market-based) 154,284 MT CO 2 e 131,875 MT CO 2 e Other indirect GHG emisions (Scope 3)* 22,899,369 MT CO 2 e 24,181,848 MT CO 2 e GHG emissions intensity (Scope 1 + Scope 2)** .012 MT CO 2 e/Sq Ft .012 MT CO 2 e Reduction of GHG emissions (Scope 1 + Scope 2)** -82,094 MT CO 2 e or 13.0% decrease YOY -14,036 MT CO 2 e or 2.7% decrease YOY Reduction of GHG emissions (Scope 1 + Scope 2 market-based) -55,238 MT CO 2 e or 12.1 decrease YOY 12,165 MT CO 2 e or 3% decrease YOY Carbon data CY20 CY21 *Emissions are calculated for the lifetime of the product when the product was purchased. **Number does not include RECs. Materials recycled FY21 (lbs.) FY22 (lbs.) Paper 3,503,391 3,114,640 Cardboard 75,610,040 82,530,780 Plastic 1 , 9 57,0 4 0 2,667,537 Expanded polystyrene 3,888,715 5,484,640 Metal 485,224 199,991 Pallets 42,806,000 45,156,000 Totes 704,302 284,700 Single stream 16,258,000 6,492,000 Organics/compost 289,000 2 8 7, 24 0 Large equipment batteries 402,365 460,954 Other 4,446,580 212,640 Total recycling 150,350,657 146,891,122
Best Buy Fiscal Year 2022 ESG Report | 99 SASB index . Energy Management in Retail & Distribution (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable Reported on pg. 98 Data Security Description of approach to identifying and addressing data security risks Reported on pgs. 90-91 (1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) number of customers affected Reported on pg. 90 Labor Practices (1) Average hourly wage and (2) percentage of in-store employees earning minimum wage, by region Reported on pg. 34 (1) Voluntary and (2) involuntary turnover rate for in-store employees Partially reported on pg. 28 Workforce Diversity & Inclusion Percentage of gender and racial/ethnic group representation for (1) management and (2) all other employees Reported on pgs. 58-59 Product Sourcing, Packaging & Marketing Revenue from products third-party certified to environmental and/or social sustainability standards Partially reported on pg. 18 Discussion of processes to assess and manage risks and/or hazards associated with chemicals in products Reported on pgs. 25, 69-70 Discussion of strategies to reduce the environmental impact of packaging Reported on pg. 21 Table 1. Sustainability disclosure topics and accounting metrics Location of disclosure The Sustainability Accounting Standards Board (SASB) provides a global disclosure framework to help business and investors develop a shared understanding of enterprise value and inform a wide range of decisions. We have provided relevant data noted below according to SASB’s industry standard for Multiline and Specialty Retailers & Distributors. Table 2. Activity metrics Number of: (1) retail locations and (2) distribution centers Form 10-K Total area of: (1) retail space and (2) distribution centers Form 10-K
Best Buy Fiscal Year 2022 ESG Report | 100 TCFD index . Governance Board’s oversight of climate-related risks and opportunities. CDP Climate 2020 C1.1, C1.1a, C1.1b CDP Water 2020 W6.2, W6.2a Management’s role in assessing and managing climate-related risks and opportunities. CDP Climate 2020 C1.2 and C1.2a CDP Water 2020 W6.2b Strategy Climate-related risks and opportunities identified over the short, medium and long term. CDP Climate 2020 C2.1, C2.1a, C2.3, C2.3a, C2.4, C2.4a CDP Water 2020 W4.1, W4.1a, W4.2b, W7.1, W7.3 Impact of climate-related risks and opportunities on business, strategy and financial planning. CDP Climate 2020 C2.3, C2.3a, C2.4a, C3.1, C3.1b, C3.3, C3.4, C3.4a CDP Water 2020 W4.1, W4.1a, W4.2b W7.1 Resilience strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. CDP Climate 2020 C3.2a, C3.3 CDP Water 2020 W7.3 Risk Management Processes for identifying and assessing climate-related risks. CDP Climate 2020 C2.2, C2.2a CDP Water 2020 7.1 Processes for managing climate-related risks. CDP Climate 2020 C2.1, C2.2 CDP Water W6.1, W6.1a Processes for identifying, assessing and managing climate- related risks are integrated into overall risk management. CDP Climate 2020 C2.1, C2.2 CDP Water 2020 W7.1 Metrics and Targets Metrics used to assess climate-related risks and opportunities in line with strategy and risk management process. CDP Climate 2020 4.1a, 4.2b, 4.2c CDP Water 2020 W7.1 Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions, and the related risks. Pg. 98. CDP Climate 2020 C6.1, C6.2 C6.3, C6.5, C6.10, C2.2a CDP Water 2020 W8.1 Targets used to manage climate-related risks and opportunities and performance against targets. CDP Climate 2020 C4.1, C4.1a, C4.2, C4.2b, C4.2c, C4.3, C4.3b, C4.5a CDP Water Security 2020 W8.1, W8.1a, W8.1b Topic Location of disclosure The Task Force on Climate-Related Financial Disclosure (TCFD) has developed a framework to help public companies and other organizations more effectively disclose climate-related risks and opportunities though their existing reporting processes. We look to expand our TCFD disclosures, further aligning with the TCFD recommended topics.
Best Buy Fiscal Year 2022 ESG Report | 101 Sustainable Development Goals . The United Nations Sustainable Development Goals have been widely accepted as collective aspirational goals. While Best Buy is not a current member of the United Nations Global Compact, we embrace the objectives and many of our programs support the goals shown below.
Best Buy Fiscal Year 2022 ESG Report | 102 EEO -1 report . EQUAL EMPLOYMENT OPPORTUNITY CO= U= SECTION C - TEST FOR FILING REQUIREMENT SECTION B - COMPANY IDENTIFICATION 2.a. 1. SECTION E - ESTABLISHMENT INFORMATION c. SECTION D - EMPLOYMENT DATA NOT-HISPANIC OR LATINO HISPANIC OR LATINO * * * * * * * * * * * FEMALE * * * * * * * * * * * * * * * * * * * * * * * MALE * * * * * * * * * * * * OVERALL TOTALS TWO OR MORE RACES NATIVE ALASKAN INDIAN OR AMERICAN ASIAN ISLANDER PACIFIC OR NATIVE HAWAIIAN BLACK OR AFRICAN AMERICAN WHITE TWO OR MORE RACES NATIVE ALASKAN INDIAN OR AMERICAN ASIAN NATIVE HAWAIIAN PACIFIC OR ISLANDER BLACK OR AFRICAN AMERICAN WHITE FEMALE MALE JOB CATEGORIES EXECUTIVE/S R OFFICIALS & M GRS FIRST/MID OFFICIALS & M GRS PROFESSIONALS TECHNICIANS SALES WORKERS ADMINISTRATIVE SUPPORT CRAFT WORKERS OPERATIVES LABORERS & HELPERS SERVICE WORKERS TOTAL PREVIOUS REPORT TOTAL SECTION F - REMARKS L054452 L054452 2021 EMPLOYER INFORMATION REPORT EEO-1 CONSOLIDATED REPORT BEST BUY US 900010 CORPORATE 1 7601 PENN AVENUE SOUTH RICHFIELD, MN 55423 BEST BUY US 900010 CORPORATE 1 7601 PENN AVENUE SOUTH RICHFIELD, MN 55423 EIN= 410907483 1- Y 2- N 3- N DUNS= 023058159 NAICS: 551114 - Corporate, Subsidiary, and Regional Managing Offices 1 528 130 2512 8614 1305 23 471 4610 41 18235 19116 0 217 93 301 4133 958 12 115 1417 33 7279 8421 26 3323 1245 7259 15636 3468 92 937 7277 69 39332 44612 3 302 88 1327 4649 693 13 430 2857 16 10378 11741 0 6 2 18 71 17 0 10 69 0 193 248 0 251 328 573 2055 394 7 56 711 5 4380 4423 0 34 9 100 220 61 3 24 119 2 572 674 0 119 56 561 1567 339 5 106 717 4 3474 3690 11 1530 929 665 4739 1531 38 165 1989 37 11634 13755 0 145 79 165 2512 949 5 91 810 26 4782 6087 0 1 0 1 27 21 0 1 10 0 61 84 1 105 183 72 559 144 5 9 148 8 1234 1227 0 12 6 12 96 29 2 2 50 1 210 293 0 49 36 80 727 306 4 15 209 2 1428 1608 42 6622 3184 13646 45605 10215 209 2432 20993 244 103192 115979 DATES OF PAYROLL PERIOD: 10/17/2021 THRU 10/30/2021 SECTION G - CERTIFICATION CERTIFIED DATE [EST]: 6/10/2022 3:38 PM CERTIFYING OFFICIAL: MEENATCHI ARUN EMAIL: [email protected] EEO1 REPORT CONTACT PERSON: MEENATCHI ARUN EMAIL: [email protected] TITLE: ASSOCIATE MGR HR PHONE: 6122915199 TITLE: ASSOCIATE MGR HR PHONE: 6122915199 The above report does not include Current Health or Yardbird employees. Data for the above report was collected from the pay period: October 17-30, 2021, within the data range specified by the U.S. Equal Employment Opportunity Commission. Data on page 59 reflects the end of FY22 to be consistent with past YOY data. EQUAL EMPLOYMENT OPPORTUNITY CO= U= SECTION C - TEST FOR FILING REQUIREMENT SECTION B - COMPANY IDENTIFICATION 2.a. 1. SECTION E - ESTABLISHMENT INFORMATION c. SECTION D - EMPLOYMENT DATA NOT-HISPANIC OR LATINO HISPANIC OR LATINO * * * * * * * * * * * FEMALE * * * * * * * * * * * * * * * * * * * * * * * MALE * * * * * * * * * * * * OVERALL TOTALS TWO OR MORE RACES NATIVE ALASKAN INDIAN OR AMERICAN ASIAN ISLANDER PACIFIC OR NATIVE HAWAIIAN BLACK OR AFRICAN AMERICAN WHITE TWO OR MORE RACES NATIVE ALASKAN INDIAN OR AMERICAN ASIAN NATIVE HAWAIIAN PACIFIC OR ISLANDER BLACK OR AFRICAN AMERICAN WHITE FEMALE MALE JOB CATEGORIES EXECUTIVE/S R OFFICIALS & M GRS FIRST/MID OFFICIALS & M GRS PROFESSIONALS TECHNICIANS SALES WORKERS ADMINISTRATIVE SUPPORT CRAFT WORKERS OPERATIVES LABORERS & HELPERS SERVICE WORKERS TOTAL PREVIOUS REPORT TOTAL SECTION F - REMARKS L054452 L054452 2021 EMPLOYER INFORMATION REPORT EEO-1 CONSOLIDATED REPORT BEST BUY US 900010 CORPORATE 1 7601 PENN AVENUE SOUTH RICHFIELD, MN 55423 BEST BUY US 900010 CORPORATE 1 7601 PENN AVENUE SOUTH RICHFIELD, MN 55423 EIN= 410907483 1- Y 2- N 3- N DUNS= 023058159 NAICS: 551114 - Corporate, Subsidiary, and Regional Managing Offices 1 528 130 2512 8614 1305 23 471 4610 41 18235 19116 0 217 93 301 4133 958 12 115 1417 33 7279 8421 26 3323 1245 7259 15636 3468 92 937 7277 69 39332 44612 3 302 88 1327 4649 693 13 430 2857 16 10378 11741 0 6 2 18 71 17 0 10 69 0 193 248 0 251 328 573 2055 394 7 56 711 5 4380 4423 0 34 9 100 220 61 3 24 119 2 572 674 0 119 56 561 1567 339 5 106 717 4 3474 3690 11 1530 929 665 4739 1531 38 165 1989 37 11634 13755 0 145 79 165 2512 949 5 91 810 26 4782 6087 0 1 0 1 27 21 0 1 10 0 61 84 1 105 183 72 559 144 5 9 148 8 1234 1227 0 12 6 12 96 29 2 2 50 1 210 293 0 49 36 80 727 306 4 15 209 2 1428 1608 42 6622 3184 13646 45605 10215 209 2432 20993 244 103192 115979 DATES OF PAYROLL PERIOD: 10/17/2021 THRU 10/30/2021 SECTION G - CERTIFICATION CERTIFIED DATE [EST]: 6/10/2022 3:38 PM CERTIFYING OFFICIAL: MEENATCHI ARUN EMAIL: [email protected] EEO1 REPORT CONTACT PERSON: MEENATCHI ARUN EMAIL: [email protected] TITLE: ASSOCIATE MGR HR PHONE: 6122915199 TITLE: ASSOCIATE MGR HR PHONE: 6122915199
Best Buy Fiscal Year 2022 ESG Report | 103 GRI index . 102-1 Name of the organization 1 102-2 Activities, brands, products and services 4 102-3 Location of headquarters 4 102-4 Location of operations 4 102-5 Ownership and legal form 10-K 102-6 Markets served 10-K 102-7 Scale of operations 10-K 102-8 Information on employees and other workers 4 102-9 Supply chain 62 102-10 Significant changes to the organization and its supply chain n/a 102-11 Precautionary Principle or approach n/a 102-12 External initiatives 6 102-13 Membership associations 96 102-14 Statement from senior decision-maker 3 102-15 Key impacts, risks and opportunities 6, 10-K 102-16 Values, principles, standards and norms of behavior 86-87 102-17 Mechanisms for advice and concerns about ethics 86-87 102-18 Governance structure 84 102-19 Delegating authority 84 102-20 Executive-level responsibility for economic, environmental, and social topics 85 102-21 Consulting stakeholders on economic, environmental, and social topics 95 102-40 List of stakeholder groups 95 102-41 Collective bargaining agreements n/a 102-42 Identifying and selecting stakeholders 95 102-43 Approach to stakeholder engagement 95 102-44 Key topics and concerns raised 8 102-45 Entities included in consolidated financial statements 10-K 102-46 Defining report content and boundaries 8 102-47 List of material topics 8 102-48 Restatements of information n/a 102-49 Changes in reporting n/a 102-50 Reporting period 8 Indicator Description Page(s)
Best Buy Fiscal Year 2022 ESG Report | 104 102-51 Date of most recent report 8 102-52 Reporting cycle 8 102-53 Contact point for questions regarding the report 8 102-54 Claims of reporting in accordance with GRI Standards 8 102-55 GRI content index 103-104 102-56 External assurance 8 103-1 Explanation of the material topic and its Boundary 8 201-2 Financial implications and other risks and opportunities due to climate change 10-12, 18-19, 10-K 205-2 Communication and training about anti-corruption policies and procedures 86-87 302-1 Energy consumption within organization 98 302-3 Energy intensity 98 302-4 Reduction of energy intensity 98 302-5 Reductions in energy requirements of products and services 18-19 303-2 Management of water discharge-related impacts 13 303-3 Water withdrawal 13 305-2 Indirect (Scope 2) GHG emissions 98 305-3 Other indirect (Scope 3) GHG emissions 98 305-4 GHG emissions intensity 98 305-5 Reduction of GHG emissions 11, 98 306-3 Waste generated 16 401-1 New employee hires and employee turnover 28, 59 404-1 Average hour of training per year per employee 32 405-1 Diversity of governance bodies and employees 59 405-2 Ratio of basic salary and renumeration of women to men 42 412-1 Operations that have been subject to human rights impact assessments 60-61 413-1 Operations with local community engagement, impact assessments, and development programs 74-80 415-1 Political contributions 94 416-1 Assessment of the health and safety impacts of product/service categories 92 418-1 Approach to addressing customer privacy/data 90-91 GRI index . Indicator Description Page(s)