Colgate-Palmolive Sustainability and Social Impact Report
2 0 2 1 SUSTAINABILITY AND SOCIAL IMPACT REPORT are reimagining a healthier future for all people, their pets and our planet.
CONTENTS CONTENTS L ETTER FROM NOEL WALLACE LETTER FROM ANN TRACY SUSTAINABILITY HIGHLIGHTS 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PAGE 02 Letter from Noel Wallace PAGE 04 Letter from Ann Tr a c y PAGE 06 2025 Sustainability & Social Impact Strategy PAGE 10 Sustainability Management P A G E 11 Materiality Approach P A G E 13 Stakeholder Engagement P A G E 14 About This Report PAGE 16 Sustainability Governance P A G E 19 Board of Directors P A G E 20 Business Integrity PAGE 21 Driving S ocial Impact P A G E 22 WE Inspire Our People to Make a Difference P A G E 32 WE Create a More Inclusive World P A G E 35 WE Help Children, Their Families and Communities Thrive PAGE 41 Helping MIL lions of Homes P A G E 42 Design Sustainable Products P A G E 48 Build Sustainable Habits for Life P A G E 50 Foster Lifelong Relationships Between Pets and People PAGE 52 Preserving Our E nvironment P A G E 53 Eliminate Plastic Waste P A G E 57 Accelerate Action on Climate Change P A G E 70 Lead with Zero Waste Facilities P A G E 72 Water Stewardship P A G E 79 Drive Sustainable Sourcing PAGE 01 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
LETTER FROM NOEL WALLACE A WELCOME LETTER FROM NOEL WALLACE, CHAIRMAN, PRESIDENT AND CEO CONTENTS LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Colgate People know that we have a unique opportunity to shape a better world. The Colgate brand is found in more homes than any other—more than 58% of households—which provides a world of opportunity for us to make a difference through innovation, education and partnership. Working at Colgate allows each of us to serve a purpose bigger than ourselves—to reimagine a healthier future for all people, th eir pets and our planet. This purpose is shared by Colgate People around the world and it guides our ambitions to drive social impact by being a best-in-class employer and a responsible corporate citizen, to help people develop habits that improve their health and their homes, and to preserve and enhance our environment. Innovation to Achieve Breakthroughs Innovation can move the needle. Our first-of-its- kind recyclable toothpaste tube aims to make plastic tubes part of the circular economy, not just for our toothpaste, but for all toothpaste tubes. We proudly support transparency and are working to educate consumers about our recyclable toothpaste tubes by inviting them to learn more at colgate.com/goodness . And everywhere you look across our product portfolio, you see large and small reinvention: t oothpaste tabs in metal tins, mouthwash in aluminum cans, just-add-water tablets for liquid hand soap and concentrated gels for dish liquid, toothbrushes with handles made from bamboo or designed with replaceable brush heads that use 80% less plastic than our similarly sized toothbrushes. All of these changes help us reduce our use of plastic and cut plastic waste, which is a top priority fo r our team. Innovating to find a better way has also helped us reduce the energy we use in our operations by 37%, cut greenhouse gas emissions by 38% and reduce our use of water 52%, all since 2002. PAGE 02 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Education to Rally Change We know that about 80% of our environmental footprint occurs when people use and dispose of our products, so we seek opportunities to encourage better habits. Our Save Water campaign encouraging people to turn off the tap when brushing has contributed to the avoidance of approximately 206 billion gallons of water since 2016, plus 10.8M metric tons of greenhouse gas emissions from the energy needed to treat, heat and pump water. And recently, when we introduced our breakthrough recyclable toothpaste tube under the Colgate brand in the U.S., we included a bold "Recycle Me!" message to build awareness among consumers, and begin changing their behavior. We also know that education holds a key to better health. We’ve reac h ed over 1.4 billion children and their families with our Bright Smiles, Bright Futures® (BSBF) oral health education program. And our new oral health literacy campaign to empower people to Kno w Y our OQ™—to understand and improve their oral health quotient—calls out the links between oral health and overall health and well-being, so people take action for a healthier future. Partnership to Power Progress The world’s challenges are daunting, and no company can go it alone. So while innovation and education are two ways we get things done, it's partnership that amplifies their impact. Examples are many. The reach of BSBF in 80+ countries is only possible through partnership with schools, retailers, dental professionals and others. Our decision back in 2019 to share our recyclable tube technology encouraged the transition for other toothpaste companies. And to advance recycling, we joined eight other companies as original investors in funds with the Closed Loop Partners to support new infrastructure at scale. That partnership led to another benefit: it c onnected us with Algramo, which helped us experiment with a refillable model for our Softsoap liquid hand soap. To conclude, our purpose to reimagine a healthier future for all brings e xtra meaning to our work for sustainability and social impact. Innovation is key to our progress, education is essential for building momentum for change and partnership makes both far more powerful. I invite you to review our progress and plans in the pages of this report. Noel Wallace CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER PAGE 03 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT

LETTER FROM ANN TRACY A WELCOME LETTER FROM ANN TRACY, CHIEF SUSTAINABILITY OFFICER Post the 2021 United Nations Climate Change Conference (COP26), my four Gen Z kids still say that our planet is in trouble, and they’re still counting on us to do something about it. Young people—and increasingly consumers of all ages—expect the companies they support to take on the burning issues of the day: climate change, plastic waste and water scarcity, as well as health, education and diversity, equity and inclusion. At Colgate-Palmolive, we are focused on solving big problems. We are proud that our Colgate brand is in more homes than any other, and tackling these issues starts at home. We see that as our superpower, and we have a big responsibility to use our global reach to help the people who buy and use our products live more healthy and sustainable lives. We are pleased to report our progress in 2021, the first year of our 2025 Su stainability & Social Impact Strategy. Our Strategy consists of three Key Ambitions with 11 actions and associated measurable targets. These actions are designed to manage both risks and opportunities for our business and to bring our purpose to life: WE are Colgate, a caring, innovative growth company reimagining a healthier future for all people, their pets and our planet. We are focused on innovating our packaging to use more recycled plas tic, less plastic or no plastic at all as we work toward our target to have 100% recyclable, reusable or compostable plastic packaging by 2025. A great example is the progress we have made to implement the first tube to be recognized by external recycling authorities as recyclable across all of our toothpaste brands. Part of our mission is to educate consumers about our recyclable toothpaste tubes, encouraging them to check locally since their community may not yet accept tubes for recycling and inviting them to learn more on our website. We are also excited to hear that other major brands have pledged to move to a recyclable tube by 2025 so that approximately 75% of the 20 billion tubes will become recyclable. We’re working with our suppliers to ensure we have strong responsible sourcing programs in place, helping to reduce emissions and water use in our value chain. Finally, in the communities where we live and work, we have reached over 1.4 billion children and their families with our Bright Smiles, Bright Futures® oral health education program and helped to find over 12 million shelter pets forever homes through our Hill’s Food, Shelter & Love™ program. We invite you to l earn more about our progress towards our 2025 Sustainability & Social Impact Strategy through this newly designed interactive report. While we are proud of our progress so far, we recognize there is much m ore work to be done. And this work cannot be done without collaboration with our consumers, suppliers, retailers, communities and, most importantly, Colgate People. We are working to fully embed sustainability into our growth strategy and across all facets of our business. Together we will tackle these problems and inspire people to live more sustainably. Together, we will smile, because we are reimagining a healthier future for all people, their pets and our planet. . Ann Tracy CHIEF SUSTAINABILITY OFFICER CONTENTS LETTER FROM NOEL WALLACE 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PAGE 04 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT

SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY & SOCIAL IMPACT STRATEGY HIGHLIGHTS CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT $301M invested in 1,500 energy saving projects since 2011 $17. 4 B Worldwide Net Sales in 2021; products marketed in over 200 countries MORE THAN 12M pet adoptions through Hill’s Food, Shelter & Love™ program since 2002 REACHED children and their families with oral OVER 1.4B health education since 1991 206B GALLONS of water saved and 10.8 million metric tons of CO 2 e avoided from Save Water campaign Rolling out the first-of-its-kind recyclable toothpaste tube and shared the technology at over 50 sessions TARGETING NET ZERO carbon emissions across our value chain by 2040 100% RENEWABLE energy target by 2030 REACHED MORE THAN 500,000 people in communities, schools and clinics to gain access to safe water services 27 LEED certifications globally 26 TRUE ZERO WASTE certified facilities globally across 5 continents About Colgate-Palmolive Colgate-Palmolive Company (together with our subsidiaries, “we,” “us” “our” the “Company” or “Colgate”) is a caring, innovative growth company reimagining a healthier future for all people, their pets and our planet. We seek to deliver sustainable, profitable growth and superior shareholder returns, as well as to provide Colgate People with an innovative and inclusive work environment. We do this by developing and selling products globally that make people’s and their pets’ lives healthier and more enjoyable and by embracing our sustainability and social impact and diversity, equity and inclusion (DE&I) strategies across our organization. We operate in more than 80 countries, and our products are marketed in more than 200 countries and territories. As of December 31, 2021, we had approximately 33,800 employees based in ove r 100 countries. Headquartered in New York City, Colgate operates through two product segments: Oral, Personal and Home Care and Hill's Pet Nutrition, and six divisions around the world: North America, Latin America, Europe, Asia Pacific, Africa/Eurasia and Hill’s Pet Nutrition. PAGE 05 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
2025 SUSTAINABILITY STRATEGY SUSTAINABILITY STRATEGY CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PAGE 06 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
COLGATE’S 2025 SUSTAINABILITY & SOCIAL IMPACT STRATEGY CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES ENVIRONMENT PRESERVING OUR With the Colgate brand in more homes than any other, we are presented with great opportunities and new challenges as we work to integrate sustainability into all aspects of our business and create positive social impact. We are determined to position ourselves for further growth as we act on our 2025 Sustainability & Social Impact Strategy, based on our three Key Ambitions: Driving Social Impact: We are committed to helping to ensure the well- being of all people and their pets, building an equitable and inclusive culture and creating meaningful opportunities for all people to succeed inside and outside of Colgate. Helping Millions of Homes: We are empowering people to develop healthier habits by choosing sustainable products that improve their lives and homes, from oral and personal care to pet nutrition and home care. Preserving Our Environment: We are accelerating action on climate change and reducing our environmental footprint, working with our partners and operations to eliminate waste, decrease plastic usage, save water and conserve natural resources. PAGE 07 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT

CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT For each Key Ambition, we have a set of dedicated actions and targets: DRIVING SOCIAL IMPACT WE Inspire Our People to Make a Difference: We motivate and enable our people to reach their full potential and perform at their best every day by valuing people for their contributions and sharing in the success we create together. WE Create a More Inclusive World: We will ensure all Colgate People feel they belong and are supported to achieve their potential. We will drive representation across all organizational levels with a focused, consistent effort and a goal to achieve parity with labor force availability. WE Help Children, Their Families and Communities Thrive: We advance the health and well-being of children, their families and communities by investing in innovations that empower them for healthy and bright futures. HELPING MILLIONS OF HOMES Design Sustainable Products: We will innovate our products to help our consumers live more sustainable lives. We intend to improve the environmental footprint of all products we market and develop. Build Sustainable Habits for Life: We will help people build more sustainable habits by offering better products, information choices and education. Our target is to provide 100% ingredient transparency, promote water conservation awareness with messaging to 100% of our global consumers and guide consumers on recycling for 100% of our products in all markets. Foster Lifelong Relationships Between Pets and People: We want to help every pet find a forever home by supporting our global shelter partners with resources and premium nutrition. Our ambitious goal is to find adoption homes for 15 million shelter pets through the Hill's Pet Nutrition Food, Shelter & Love™ program. PAGE 08 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT

CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PRESERVING OUR ENVIRONMENT Eliminate Plastic Waste: We will design and deliver zero plastic waste solutions for Colgate-Palmolive products. We aim to eliminate one third of our new plastics and achieve 100% recyclable, reusable or compostable plastic packaging by 2025. Accelerate Action on Climate Change: We've targeted Net Zero carbon emissions across our growing business, including our own operations, suppliers and consumers. Our goal is to achieve Net Zero carbon by 2040 and 100% renewable electricity for our global operations by 2030. Lead with Zero Waste Facilities: We will operate high-efficiency, low-impact, zero waste facilities and achieve 100% zero waste operations. Water Stewardship: We will work for water resilience across our value chain, protecting ecosystems and supporting water access. Our goal is to achieve Net Zero water at our manufacturing sites in water-stressed areas by 2025 and across all sites by 2030. Drive Sustainable Sourcing: We will engage all of our key suppliers in order to support our goal to source sustainably and strive for Net Zero deforestation, prioritizing palm and soy. Sustainability Bond To further our ambitious 2025 Sustainability & Social Impact Strategy, in November 2021, we issued EUR 500 million of eight-year notes at a fixed coupon rate of 0.300% (the Sustainability Bond). We will allocate an amount equal to the net proceeds from the Sustainability Bond to finance or refinance, in part or in full, new and existing projects and programs with distinct environmental and/or social benefits, as described in our Sustainable Financing Framework available on our website. PAGE 09 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
SUSTAINABILITY MANAGEMENT SUSTAINABILITY MANAGEMENT CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PAGE 10 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
SUSTAINABILITY MANAGEMENT CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Materiality Approach To assess Colgate’s sustainability performance, we had to first develop a framework upon which to judge our progress. This process began in 2019, when we conducted a Sustainability Impact Assessment, also known as a materiality analysis . We received nearly 8,000 responses from employees in over 100 countries. First, we examined a large number of internal and external sources for information regarding sustainability practices, including the United Nations Sustainable Development Goals (UNSDGs), Global Reporting Initiative (GRI), United Nations Global Compact (UNGC, as a LEAD company), Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD) and Environmental, Social and Governance rating tools such as S&P Global, Corporate Sustainability Assessment (CSA), CDP, Institutional Shareholder Services (ISS), JUST Capital, Sustainalytics and Morgan Stanley Capital International (MSCI), ESG Ratings, in addition to peer-reviewed scientific research, industry reports, consumer insights data and employee feedback. We then assessed the interrelations between these sustainability-related topics and our business through the lenses of r isks and opportunities. We also asked our employees where Colgate could make the biggest impact, held in-depth interviews with Colgate subject matter experts, function leads and senior leaders to align our findings with business priorities and analyzed data from our consumers to identify trends in the market. We received nearly 8,000 responses from employees in over 100 countries. The result was the initial "Sustainability Impact Matrix" presented here, updated for 2021 and aligned with our 2025 Sustainability & Social Impact Strategy. PAGE 11 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT

CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Sustainability Impact Matrix STAKEHOLDER IMPACT BUSINESS IMPACT The matrix highlights our key sustainability issues, categorized by the impact on our stakeholders and our business and aligned with the three Key Ambitions of our 2025 Sustainability & Social Impact Strategy: Driving Social Impact, Helping Millions of Homes and Preserving Our Environment. These issues also intersect with the following GRI Standards and define the content of this report: Economic Performance, Materials, Energy, Water, Emissions, Effluents and Waste, Products and Services, Compliance, Transport, Environmental Health and Safety, Training and Education, Diversity and Equal Opportunity, Local Communities, Public Policy and Service Labeling. Colgate is managing risks and opportunities related to these issues throu gh the implementation of our 2025 Sustainability & Social Impact Strategy. Through our Enterprise Risk Management process, we focus on sustainab ility as a critical risk, including the environmental and social impact risk of plastic waste, climate change and water scarcity and access, as well as on deforestation. These same issues also provide an opportunity to drive innovation and growth, strengthen brand reputation and demonstrate our commitment to responsible business practice s. Additional detail on each of the issues and our actions to address them is provided throughout the content of the website. The “materiality” thresholds of the guidelines and disclosure fra meworks that help inform the sustainability risks and opportunities disclosed in this sustainability and social impact report may differ from the concept of “materiality” (as defined by the U.S. federal securities laws or the rules and regulations of the U.S. Securities and Exchange Commission (SEC)) that guides our disclosure of sustainability matters in our SEC filings, including in our Annual Report on Form 10-K. Consequently, the use of the term “material” in this report should not be interpreted in the same manner as the use of “material” in our SEC filings, including in Item 1A, “Risk Factors” in our Annual Report on Form 10-K. PAGE 12 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT

Stakeholder Engagement Colgate strives to connect with a wide variety of internal and external stakeholders so they can provide input on our sustainability strategy, particularly in terms of our targets. Our main stakeholder groups, with examples of our engagement approach for each group with respect to sustainability, are outlined below. Stakeholders Method of Engagement Our employees Frequent internal communication, employee engagement surveys, digital engagement tools such as MindSpark and LinkedIn-Elevate, geographic sustainability teams, internal subject matter experts, quarterly sustainability steering committee meetings and bi-annual webinars. We consider our employees to be one of the more important stakeholder groups, so in the last year, we implemented the Sustainability Global Collaborative, which meets quarterly to review best practices and key learnings. Our consumers Integrated marketing communications (including those addressing “brand purpose”), ongoing consumer dialogue, consumer surveys and social media and digital engagement. Our retail customers and partners Ongoing sustainability network groups, sustainability surveys and partnering with customers to encourage sustainable habits with consumers and promote more sustainable products. Our stockholders and the investment community We participate in direct engagement with a significant and diverse group of our stockholders, including during our annual stockholder engagement program, on topics important to them as well as to our Company. Such topics may include our governance practices, as well as environmental and social topics such as human capital management, DE&I and sustainability (including our priorities and progress). Government and regulatory bodies Ongoing monitoring of government and regulatory activity relevant to Colgate, as well as meetings and engagement through trade associations and partner NGOs. CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PAGE 13 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Non-governmental associations Direct inquiries and feedback on an ongoing basis, virtual and in-person meetings, participation in boards, advisory councils and partnership programs and reporting and disclosure expectations. Industry tra de associations Ongoing participation in sustainability steering and working groups. Local communities and community groups Direct inquiries and feedback, virtual and in-person meetings and engagement with local communities and schools, including through our Bright Smiles, Bright Futures oral health education program. Media D irect inquiries and feedback. Stakeholders Method of Engagement About This Report We recognize that transparency is important, and thus, this report provides sustainability information relevant to a broad range of stakeholders, including consumers, customers, investors, non-governmental organizations (NGOs) and our own employees. We acknowledge the importance of data verification and obtain third-party assurance for our primary environmental and social key performance indicators (KPIs): percentage of products with an improved sustainability profile, number of TRUE Zero Waste certified sites, manufacturing carbon reduction per ton (of production), manufacturing energy reduction per ton (of production), manufacturing water consumption per ton (of production), waste-to-landfill per ton (of production), outbound logistics carbon per ton (of goods shipped), number of hours worked, number of lost-time incidents, number of recordable incidents and number of occupational fatalities. PAGE 14 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Unless otherwise indicated, this report includes environmental, health and safety (EHS) data from 100% of our manufacturing sites and technology centers around the world, but does not include data from contract manufacturers. (1) Certain information relates to our broader value chain. Supplier Responsible Sourcing Assessment program data includes selected contract manufacturers, warehouses and suppliers; our greenhouse gas and water footprints include additional data from upstream and downstream in our value chain; and progress on our Policy on No Deforestation includes selected suppliers. Financial information is presented on a consolidated basis and in U.S. dollars. The report provides data for Colgate’s fiscal year 2021 along wi th historical information and more recent updates where indicated. We issue our report on an annual basis; our previous report focused on fiscal year 2020. This report has been prepared in accordance with the GRI Standards: Core o ption. The alignment of this year’s report to the GRI framework can be found in our GRI Content Index. There are no significant changes in the scope of our report or the key sustainability issues identified. Please see our 2021 GRI Content Index for more details. For inquiries, please visit Colgate’s Consumer Affairs site at www.colgate palmolive.com . In an effort to address stakeholders’ informational demands, we are publis hing our first report aligned with the Task Force on Climate-related Financial Disclosures Report ( TCFD ) recommendations and our first report alig ned to the Sustainability Accounting Standards Board (SASB) standards. These reports are or will be made available on our website. (1) Although we do not include the local operating results of our subsidiaries in Venezuela and Pakistan in our Consolidated Financial Statements, data from these locations are included in the calculations in this report. Our EltaMD, Filorga, hello and PCA SKIN businesses are not included in calculations referenced throughout this report, but are consolidated for financial reporting purposes after their respective date of acquisition. Cautionary Statement on Forward-Looking Statements All statements in this report that are not historical, including targets for and projections for future results, the expected achievement and effect of our sustainability strategies and initiatives, including our 2025 Sustainability & Social Impact Strategy, and the amounts and timing of their expected impact are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and the rules, regulations and releases of the U.S. Securities and Exchange Commission (SEC). Forward- looking statements generally can be identified by words such as “believes,” “expects,” “estimates,” “intends,” “plans,” “strives,” “may,” “could,” “projects,” “should,” “will,” “continue,” “targets” and other similar expressions, and are based on management’s views and assumptions as of the date they were made. This report is issued as of April 18, 2022 and except as required by law, we undertake no obligation to update these statements as a result of new information and we make no representation, express or implied, that the information is still accurate or complete. We caution that such forward-looking statements are not guarantees of future performance and that actual events or results may differ materially from these statements due to a number of factors. Information about factors that could impact our business and cause actual results to vary, possibly materially, from these forward-looking statements, can be found in this report and in our filings with the SEC, including the information set forth under the captions “Risk Factors” and “Cautionary Statement on Forward-Looking Statements” in Colgate’s Annual Report on Form 10-K for the year ended December 31, 2021 for the year ended December 31, 2021 and subs equent Quarterly Reports on Form 10-Q. PAGE 15 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
SUSTAINABILITY GOVERNANCE SUSTAINABILITY GOVERNANCE CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PAGE 16 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT SUSTAINABILITY GOVERNANCE We view sustainability as critically important to our overall business and growth strategy. We have a team of people responsible for assessing and monitoring sustainability issues, led by our Group President, Growth and Strategy, a member of our leadership team who reports to our Chairman of the Board, President and CEO, and our Chief Sustainability Officer (CSO), who reports to our Chief Supply Chain Officer and has accountability to our Group President, Growth and Strategy. This team has responsibility for our overall 2025 Sustainability & Social Impact Strategy and monitors progress against our sustainability targets, including our science-based targets related to climate change. Within our CSO’s team, the Worldwide Director of Global Sustainability Fellow is responsible for our climate strategy and leads the planning and execution of our Climate Action and Net Zero Carbon Transition roadmap covering Scope 1, 2, and 3 greenhouse gas (GHG) emissions. Our CSO also helps shape t h e Company’s supply chain strategy, which may be impacted by climate-related issues. Colgate’s CSO is responsible for providing our Board of Directors (Board), through the Nominating, Governance and Corporate Responsibility Committee (NGCR Committee), with quarterly updates on sustainability issues, risks and opportunities, including our progress against our science-based climate targets and other action plans to achieve our sustainability objectives. Our CSO also leads our Sustainability Steering Committee, which makes strategic decisions related to sustainability, m onitors climate-related issues and works to integrate our sustainability and social impact strategy into our broader organization and to measure and meet our sustainability targets and key performance indicators (KPIs). The Sustainability Steering Committee meets quarterly and is composed of members of senior management, including Colgate’s Chief of Staff, Group President, Growth and Strategy, Chief Financial Officer, Chief Legal Officer and Secretary, CSO, Chief Technology Officer, Chief Human Resources Officer, Chief Communications Officer, Chief Supply Chain Officer and Chief Investor Relations Officer and SVP, Mergers & Acquisitions. The members of the Sustainability Steering Committee were chosen due to their broad expertise and insight into every function of Colgate’s business. The Sustainability Steering Committee has reviewed our climate strategy and is informed of our progress against our sustainability goals, including our science-based targets related to climate change. PAGE 17 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Our ESG Reporting Task Force was formed in 2021 to address the increasing demands for additional ESG disclosure from our stakeholders. Our sustainability efforts span all aspects of our business, including supply chain, research and development, marketing, innovation, customer development and people development. Networks of senior leaders in each division and local champions support on-the-ground sustainability efforts, communications and reporting. Moreover, to integrate sustainability tracking and disclosures into our business strategy, operations and employee review process, our global sustainability initiatives are among the individual objectives used to determine the compensation for many of our senior managers, including the CSO. The incentive compensation of many of our managers (e.g., CSO, Chief Procurement Officer, facility managers, energy managers, sustainability managers) is determined, in part, by the degree of our achievement against our sustainability goals, including climate-related initiatives. Our Enterprise Risk Management (ERM) Committee, which includes Colgate’s Chairman, President and CEO, Chief Financial Officer, Chief Human Resources Officer, CSO, Chief Investo r Relations Officer and SVP, Mergers & Acquisitions, Chief Legal Officer and Secretary, Chief Supply Chain Officer, Vice President and Corporate Treasurer and other members of Colgate’s senior management, monitors current and emerging risks facing our Company and has identified sustainability, including as it relates to climate change, as a critical risk facing the Company. Risks identified by the ERM Committee are assigned risk sponsors who are responsible for overseeing the management of the risk and reporting back to the ERM Committee on the risk landscape and the Company’s mitigation efforts. The Group President, Growth and Strategy is the risk sponsor for sustainability risk, including as it relates to climate change. ERM Committee members provide the Board and its committees with regular updates on risks facing the Company. Our ESG Reporting Task Force was formed in 2021 to address the increasing demands for additional ESG disclosure from our stakeholders. Through the ESG Reporting Task For ce, management is kept abreast of climate disclosure-related issues to guide the Company on its ESG reporting. The ESG Task Force is composed of representatives from the Company’s investor relations, legal, supply chain, sustainability and finance functions. The ESG Reporting Task Force’s sponsors include the Company’s Chief of Staff, Group President, Growth and Strategy, Chief Financial Officer, Chief Legal Officer and Secretary, Chief Investor Relations Officer and SVP, Mergers & Acquisitions, Vice President and Assistant Controller and CSO, all of whom serve on the Sustainability Steering Committee. The ESG Reporting Task Force meets on an as-needed basis and meets with the sponsors quarterly. PAGE 18 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Board of Directors Our Board of Directors (Board) views sustainability as being critically important to Colgate’s overall business and growth strategy and our Board plays an essential role in guiding and overseeing that strategy. Our Board was deeply involved in the development of our strategic plan and received detailed briefings throughout the year on critical aspects of its implementation. As we work to integrate sustainability into all aspects of our business, our Board addresses sustainability in their oversight of the implementation of Colgate’s strategic plan, annual budget, capital expenditures, capital structure and innovation plans and is kept abreast about the Company’s sustainability efforts during reviews of our operating divisions and functions, product categories and competitive and marketplace trends. In further recognition of the importance of ESG matters to Colgate’s continued success, the Personnel & Organization Committee of the Board has determined to add performance measures to the 2022 annual incentive program tied to Colgate’s sustainability and diversity, equity and inclusion progress. Nominating, Governance and Corporate Responsibility Committee Within our Board, the NGCR Committee has responsibility for overseeing our sustainability program, including our 2025 Sustainability & Social Impact Strategy, while the Personnel & Organization Committee has responsibility for overseeing our workplace and human rights practices, including diversity and inclusion and equal opportunity initiatives. The NGCR Committee was reconstituted and renamed in 2020 to heighten the Board’s focus on sustainability (including climate change), social responsibility and corporate citizenship matters. The NGCR Committee receives regular updates from management on sustainability matters, risks and opportu nities, including our actions to preserve the environment and accelerate action on climate change. The NGCR Committee is scheduled to meet quarterly and a sustainability-related topic is typically presented and discussed at each scheduled meeting. It is management’s intention to provide the Board, through the NGCR Committee, with the highlights of our progress against the targets within our 2025 Sustainability & Social Impact Strategy on at least an annual basis. Audit Committee In addition, our Board is kept abreast of sustainability risks through the Audit Committee, which oversees the Company’s enterprise risk management and the implementation of appropriate risk monitoring and management systems. In this capacity, the Audit Committee receives regular updates from members of the Company’s ERM Committee (as discussed in further detail above), which has identified sustainability as a critical risk facing the Company. Please visit Colgate’s Policy Statements for a complete listing of Colgate’s policies. PAGE 19 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Business Integrity As we work to achieve Colgate’s purpose to reimagine a healthier future for all people, their pets and our planet, Colgate People working around the world share a commitment to our three core corporate values: Caring, Global Teamwork and Continuous Improvement. These values are reflected not only in the quality of our products and reputation, but also in our dedication to serving the communities where we live and work, as represented in our sustainability, social impact and DE&I strategies. With these values, we work to maintain a strong culture based on integrity, ethical behavior and a commitment to doing the right thing. Underlying these values and our strong culture is the commitment of all Colgate People to maintain the highest ethical standards and demonstrate ethical leadership, including compliance with Colgate policies and our Code of Ethics. Colgate People are committed to maintaining the highest ethical standards. We care about people: Colgate People, consumers, customers, stockholders, business partners and people in the communities where we live and work. We are committed to acting with compassion, integrity, honesty and high ethics in all situations and to providing our employees with an innovative and inclusive work environment. To further this goal, all our employees worldwide are required to annually certify that they understand and comply with the Code o f Conduct. In addition, our executives and key managers worldwide participate in training programs regarding the Code of Conduct, Colgate’s values, effective leadership and the applicable laws and regulations that govern our business practices around the world. Our directors also annually certify their compliance with the Code of Conduct . In 2021, Ethics and Compliance received 411 contacts through a variety of channels, including the EthicsLine, Ethics web tool and eth ics@colpal.com , which covered a wide variety of reporting activities including 60 consultations. A llegations reported to Ethics and Compliance are grouped into the following categories: Accounting-related, Conflict of Interest, Discrimination, Financial-related, Harassment, Regulatory/Legal, Retaliation, Work Environment, Miscellaneous Issues and non-Ethics and Compliance matters. After a thorough investigation has been completed, if the allegations are substantiated, appropriate remedial action is taken. PAGE 20 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
DRIVING SOCIAL IMPACT DRIVING SOCIAL IMPACT CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PAGE 21 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT DRIVING SOCIAL IMPACT We are committed to ensuring the well-being of those we serve, building a culture of inclusivity and creating meaningful opportunities for all people to succeed inside and outside of Colgate. Inspire Our People to Make a Difference Employee Development Maximizing Our Human Potential An important element of our strategy is to provide an innovative, equitable and inclusive environment that attracts the very best employees and enables them to maximize their potential. We are working to achieve this in several ways. First and foremost, we are committed to Colgate having a diverse, equitable and inclusive workplace and culture. We are convinced that such an environment is a necessary precondition for creativity, engagement and productivity. In addition, we must sharpen our team’s focus, empower them to take initiative and experiment, and provide them with the technical skills needed in our increasingly digital workplace and world. We are committed to Colgate having a diverse, equitable and inclusive workplace and culture. PAGE 22 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Attracting Top Talent We believe our people are c rucial to our ongoing business success, so we aim to recruit, develop and retain strong and div erse talent. A key tool for this is our presence and visibility on social media platforms, where potential employees learn about Colgate and find opportunities they seek to pursue. Our social media framework strengthens Colgate’s employer branding and digital presence, which results in a healthy candidate pipeline. In 2021, more than two million people visited our career site. Once potential employees engage with us, we can demonstrate that not only do we offer good employment, fair comp ensation and advancement opportunities, but also that our diverse backgrounds enable us to respond in an authentic manner to candidates’ interests and aspirations. This holistic engagement, paired with our dedication to diversity in gender and ethnic recruitment, ensures that we hire tale nted people who will drive innovation at Colgate and reflect the communities in which we live and work. Promoting a Learning Mindset Our learning strategy ha s four primary components: fostering a continuous learning environment, upskilling our team, focusing on digital tools and approaches and using data rigorously to measure results. By focusing on these four pillars, our team is equipped to address the challenges of a global customer base, integrate new technologies into their everyday work and track the results of our efforts, ensuring that we address the most important issues. Building the capabilities of our team so they can perform well in their day -to-day work, drive business objectives and develop personally is a top priority. We do this by offering a portfolio of innovative and blended learning solutions that address leadership, as well as technical skills that equip them to su cceed in our fast- moving, collaborative and diverse environment. An important element of this system is learning communities, where our team can share learnings and collaborate with each other on their development. In 2017, we launched our learning portal, MindSpark, where team members acce ss a wide variety of content, including leadership and functional content, with curated elements designed to broaden their learning horizons. The most-used learning content covers skills such as Digital, Digital Commerce, Analytics, Leadership, Diversity & Inclusion and Ethical Behavior. Measuring Our Progress We regularly measure the impact of our learning efforts. Since 2020, we have collected data from more than 45,000 surveys, including surveys on pre- and post-application of learning experiences. The average Net Promoter Score (NPS) of all Colgate courses has consistently exceeded the industry average of 63%. PAGE 23 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Focusing on Digital IQ The approach to digital capability building started with a digital maturity study that allowed us to understand the stage of digital maturity of Colgate relative to other companies and confirmed areas of our strategy that needed capability development. In 2021, we conducted a Digital IQ assessment with 3,000 digital practitioners that gave us visibility into the specific skill areas that needed to be addressed and allowed for the formulation of tailored regional plans and personalized skill plans for our employees. The upskilling initiative included broad scale (all salaried and clerical employees) and multi-level approaches, from experiential C-suite sessions to hands-on practical boot camps for digital practitioners. The learning continues with access to ongoing curated digital learning content provided through MindSpark by leading digital providers, such as Dot Native and Circus Street. Based on this approach, learners are awarded badges and certificates for lessons attended. We established an upskil ling regimen for our teams in 2021 and made meaningful progress in our digital upskilling efforts, surpassing our training goal by 10% (based on the number of people successfully upskilled). Another element of our focus on digital content is an in-application digital adoption platform (WalkMe) for our custom er development teams, a module of their business planning tool ATLAS. ATLAS is a platform to effectively plan, monitor and analyze volume and investment to drive real- time decision-making and deliver profitable revenue growth. WalkMe is an embedded learning application that maximizes and accelerates the impact of a digital transformation strategy by driving user adoption of digital applications and tools. Using the WalkMe tool, we were able to reduce training time from three days of live workshops and 11.5 hours of e-learnings to just three hours of virtual training supplemented by optional “drop-in” sessions. Recognition for Our Efforts In 2021, we continued to be recognized for our training programs. We earned nine awards, including two Gold medals, three Silver medals, and four Bronze medals, from the Brandon Hall Group, which recognizes organizations that have successfully deployed learning programs with measurable results. The Gold medals were in the categories of Best Advance in Learning Technology (for our ATLAS program) and Best Learning Innovation for our curriculum on Selling and Negotiation Skills. PAGE 24 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Building a Coaching Culture Ongoing coaching is a key element of our performance management process. In 2021, we continued our partnership with BetterUp, a leading provider of virtual coaching. BetterUp provided 495 Colgate leaders with personalized leadership training to accelerate their individual effectiveness and development. Not only do the participants experience high-quality coaching, they, in many cases, become champions of coaching within Colgate. In 2021, we continued offering the global learning program “Becoming a People Manager” that we launched in 2020. 187 ne w people managers completed the program, and we are committed to having all new and existing Colgate People managers participate and leverage this learning content to enable their teams to reach their full potential and perform at their best. Our ongoing Colgate Leadership Challenge for talented, early-in-career employees provides participants with exp osure and interaction with senior management, a greater understanding and connection to the global organization, personal leadership skills training and an opportunity to work on an important strategic issue for the business. Engaging Employees Colgate Connect is our global survey to assess key drivers of employee engagement. We also use shorter pulse surveys to gather more targeted and timely data at various moments of the employee journey—at the completion of the recruitment process, during the onboarding process and when leaving Colgate—to engage people and improve employee experience. This data has proven to be extremely valuable. From the 2018 Colgate Co nnect survey, we learned that our people wanted to learn more about career opportunities at Colgate. Our European team took the lead and used design thinking to create the “Build Your Best Future” program, which we activated globally in 2020 and continued this past year. During the COVID-19 pandemic, we deployed surveys to all employees, including in our manufacturing plan ts, to listen and adjust what we were doing in response to the pandemic. We have used the results from these surveys to amend our approach to hybrid- and remote-working scenarios and to guide our employees as they navigate the new working paradigm. We plan to deploy another Colgate Connect survey in 2022. PAGE 25 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Employee Health and Wellness At Colgate, holistic well-being is an organizational priority. We want our people to bring their best selves to work, every day. It is a key component of our 2025 Sustainability & Social Impact Strategy and an expression of living our Company’s purpose as a caring, innovative growth company reimagining a healthier future for all people, their pets and our planet. We want our people to bring their best selves to work, every day. The well-being of our approximately 33,800 employees demands both a macro and micro view. We are building a supportive culture and a suite of meaningful programs and services that addresses the diverse needs of Colgate People, while creating individual solutions to unique situations. Unfortunately, the COVID-19 pandemic continues to challenge us. During the COVID-19 pandemic, the health, safety and well-being o f our employees and their families has been and remains our first priority. We have implemented additional health and safety measures consistent with government recommendations and/or requirements to help ensure employee safety in our offices, production facilities, warehouses and technology centers. These measures may include: health and temperature screening, social distancing and personal protective equipment protocols, hand washing, contract tracing, enhanced cleaning procedures, respirato ry hygiene and education. We have instituted virtual tours of our manufacturing facilities to ensure they have continued to adhere to COVID-19 health and safety protocols. We also engaged in community outreach to educate employees and their fami lies about the dangers of COVID-19. We provided kits to improve their safety, packed with hand sanitizer, rapid tests and more. Through our vaccination education and awareness programs, we identified regions with higher vaccination hesitancy and targeted medical professionals in those locations to communicate the health benefits of vaccines. For areas with less access to vaccinations, we worked with external groups, such as International SOS, for outreach. PAGE 26 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Encouraging Holistic Well-being At Colgate, our perception of well-being goes beyond physical health. It is a core component of our workforce strategy, and is seen as a key influence in attaining business goals. For our people to bring their best selves to work each day, we must meet their needs across multiple, interdependent dimensions of well-being. As an employer, Colgate plays a key role in making that happen by supporting (among other things): • Physical well-being: providing access to comprehensive health care, safety programs, nutritious food and p h ysical activity opportunities. • Emotional well-being: supporting a positive sense of self, life/work balance, emotional resilience and copi ng skills and access to mental health care and counseling. • Social well-being: fostering social connections with colleagues in an inclusive environment. • Purpose well-being: ensuring one’s work feels meaningful and important, goal-setting exercises, many lea rning opportunities and recognition throughout the year. • Inclusive well-being: offering same-sex partner benefits and parental leave. • Financial well-being: providing appropriate compensation, supporting retirement planning and offering guidanc e to manage financial challenges and changes, such as childcare, college expenses, disability, care for aging parents and relocation. • Environmental well-being: contributing to local communities where we work and live and supporting initia tives toward healthier futures for all people, their pets and our planet. This work encompasses hundreds of efforts across our business and communities. One important component of this work is our annua l Live Better campaign. This encourages our employees to focus on their overall well- being and the well-being of their loved ones. Live Better The Live Better campaign is designed to get people to engage and participate in their own well-being, be it physical, financial or emotional. The program has a global architecture, but we encourage our people to make it their own to accommodate regional differences. To that end, Colgate requires each location to have an Employee Assistanc e Program, a service with counselors and access to direct advice. The Company provides global assistance, yet encourages regions to have local assistance as well. Educational materials are available in local languages, and while that can be helpful, nothing is better than a human to turn to when you are in need. In the spring of 2022, we will be holding a Global Mental Wellness Summ it, bringing together dozens of our HR and benefits professionals for two days to share our learnings both internally and externally and to plan our ongoing efforts to care for our employees in this important space. Financial Well-being We offer webinars and other formal education on financial wellness, and we also provide access to financial consultants for employees who may need advice on their individual needs. PAGE 27 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Environment, Health and Safety Colgate’s value of Caring is aligned with our EHS Guiding Principles to ensure that we protect the health and safety of all our employees and any individuals who access our sites, minimize our impact on the environment, strive to consider sustainable product solutions and minimize global impacts in all operations. Colgate People around the world are committed to maintaining healthy and safe working conditions in our facilities and to keeping our business operations environmentally sound. In 2020, we modified our Health Incident Management Plan (HIMP) to address COVID-19 and establish measures to protect our workforce, visitors, contractors and temporary employees. These measures may include temperature/symptom screening at entrances, social distancing and masks, handwashing, respiratory hygiene and cleaning and disinfection. We have modified and will continue to modify preventive measures in certain circumstances based on direction from health ministries, external experts and prevailing COVID-19 case statistics and rates. Our Executive Crisis Management Team (ECMT), which provides global direction and guidance to our division and site leaders, and our People Relations sub-team have worked together to ensure the protection of our people, operations and business throughout the pandemic. The People Relations team addresses issues including employee communication, training, technical management of COVID-19 employee cases, coordination of functional responsibilities related to COVID-19 and space and site management. These teams are still actively managing pandemic-related issues, maintaining focus on risk reduction, leadership at all levels and culture and engagement. In 2021, we created a team focused on assessing global vaccine access. The team worked with external providers and health ministries to support vaccine access for our employees. We continue to maintain a robust EHS Management System and EHS Global Sta ndards. The EHS Management System contains key provisions for our requirements including self-assessments and inspection, management of change, training, documentation and EHS leadership expectations. We annually evaluate our EHS Management System with a third-party vendor to ensure it is the equivalent of benchmark consensus standards, such as ISO 45001:2018 or ISO 14001:2015. Sites are required to develop appropriate programs to comply with Company standards and applicable regulatory requirements. We maintain an EHS Audit Program that is executed by our employees and a third-party provider. During 2021, we continued with the virtual audit process we began in 2020. Our operations are evaluated annually to ensure occupational health exposures are well-controlled. Any identified exposures are managed using the hierarchy of controls. Closure of previously identified exposures is verified by a global third- party industrial hygiene provider and tracked in a global data system. PAGE 28 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
2021 Global Safety Performance CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT 0.0 0.1 0.2 0.3 0.4 0.5 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Total Recordable Rate Lost Workday Case Rate 0.48 0.40 0.39 0.35 0.32 0.28 0.27 0.22 0.20 0.19 0.22 0.11 0.08 0.100.10 0.09 0.05 0.08 0.06 0.05 0.050.05 PER 200,000 WORK HOURS Our 2021 safety results are similar to 2020 for total recordable rate (TRR). TRR was 0.22 (92 recordable incidents, 10 of which were work-related COVID-19 cases), and our lost workday case rate (LWCR) was 0.05 (22 lost workday incidents). During 2021, we unfortunately experienced a fatality involving an employee from a joint venture. This occurred as a result of a chemical release during plant start-up. This incident has been reviewed with support from a third-party prov ider, and action plans have been developed for all affected locations. In addition, we experienced 14 accidents, ranging from fract ures to hospitalizations, that we consider “serious” according to the Colgate Accident/Incident Reporting and Recordkeeping Standard. Serious incidents also include work- related fatalities. Colgate accident statistics include employees, temporary workers and contractors. For serious accidents, we also report contractor and visitor incidents. The goal for 2025 is to strive for zero harm and zero serious inc idents. At Colgate, senior leadership is involved when there is a serious injury. They participate in sessions on how to proactively prevent critical risks from, among other things, electricity, machines and heights, with a focus on establishing the most effective protective controls. They also participate in ongoing risk assessments to determine if effective controls are in place to mitigate potentially negative outcomes. PAGE 29 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT 2021 Safety Highlights In 2021, Colgate People focused on learning from each other to improve safety. The ultimate goal is to reduce serious injuries and, to that end, we emphasized the need for risk assessment and mindfulness while working. We also delved deep to understand how our people think about the ways in which work is actually performed so that we could offer ways to ensure we operationalize safety. We took pains to avoid “blame and shame,” as we believe it is more impactful to offer education, understand how and why an incident happened and identify plans to ensure it does not happen again. In the past, we have emphasized establishing and communicating appropriate controls to reduce and mitigate critical ri sks and serious incidents and fatalities. In 2021, we made this expectation part of our EHS Management System and Audit Program. Our annual Safety Week is typically an all-inclusive event to share best practices and refresh our commitment to our robust h ealth and safety culture—a key tenet of our EHS Guiding Principles. In 2021, COVID-19 restrictions resulted in a different approach, with each site holding their own set of activities aligned with their own culture to reinvigorate our shared value of caring. Our Hill’s Etten-Leur plant in The Netherlands used gamification to activate Safety Week. Employees created a personal hero ava tar to compete in safety battles to test their knowledge on emergency response, engage in treasure hunts, identify potential improvements and work together to create a safer and more sustainable workplace. In addition to these efforts, below are some of the ways we improved our EHS systems and procedures in 2021: Partnership with Mount Sinai Health System We engaged with the Mount Sinai Health System to stay abreast of developments with COVID-19 and other health-related issues of concern. Mount Sinai communicates regularly with our ECMT and members of our EHS team and hosts periodic webinars where participants can suggest topics and submit questions. It has been an effective way to educate Colgate People about how to stay healthy. PAGE 30 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Occupational Health Having established Occupational Medical Standards designed to assess medical surveillance requirements for employees potentially exposed to chemical, physical and/or biological agents, we have a formal 2025 target to reduce jobs with chemical exposure. The Occupational Medical Standards work in concert with the Colgate Industrial Hygiene Standards, and our sites are required to adhere to all applicable local legislative requirements. Critical Risk Top 10 In 2019, Colgate launched an enterprise-wide integrated EHS risk reduction strategy to minimize risks that have been linked to adverse events and outcomes. The program focuses on EHS issues and management system elements that have been linked to serious outcomes historically. The program challenges our sites globally to assess the state of the current programs, assess risk and controls in place and ensure the process is sustainable. Wherever possible, sites are expected to increase efforts to mitigate risk through engineering, substitution and/or elimination. Despite the pandemic, most sites are on track toward closing the required elements. Our global sites are working on a multi-year plan to ensure that robust systems and controls are in place to address and mi tigate potential risks. Updates are reported quarterly to a corporate tracking system and presented at budget and business reviews. Reducing Noise, Dust and Chemical Exposures Colgate strives to reduce noise, dust and chemical exposures at our facilities. Our goal is to decrease the number of people who must wear hearing protection or use chemical cartridge respirators to reduce their exposure below the applicable acceptable limits. We have included this metric as an element of our 2025 target to strive for zero harm. Schneider Electrical Assessments In 2021, we continued to look closely at the safety of our electrical systems, including their capacity, resilience and obsolescence. As the electric standard requires a third-party assessment every five years, we contracted with Schneider Electric, a trusted energy management and sustainability consulting firm, to look at redundancy, resilience and condition of our systems to help us identify upstream impacts, as well as traditional elements related to safe electrical work practices. Although COVID-19 has delayed some project completion and obstructed many recommendations from being implemented, some sites are in the process of monitoring and modernization upgrades based on their reports. The remaining sites will be assessed in 2022. Virtual Training Our sites in Latin America and North America modified classroom courses to be delivered as virtual sessions on key topics for salaried and clerical employees. One such session that was particularly well received was our health and safety engineering training. Due to the success of this modular health and safety engineering training, our Europe and the Asia-Pacific Divisions plan to emulate the program in 2022. Latin America also has quarterly events linked to significant risks, where they start with input from executives and then evaluate their gaps and improvement strategies. PAGE 31 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Create a More Inclusive World Creating a Culture that Values Diversity, Equity and Inclusion Embracing diverse voices everywhere, advocating for equity and fostering an inclusive work environment are not just things we do; they reflect who we are, what we value and how we think. They guide our work and our interactions with each other every day. This helps us run our business better and serve our communities by forming relationships built on trust, respect and communication. We believe we are most successful when our employees can be their authentic selves at work and have the tools to engage in honest dialogue with each other about their experiences and challenges. To learn more about how we are creating a culture that celebrates everyone, please see our 2022 Diversity, Equity & Inclusion Report here . Our Strategy for Diversity , Equity and Inclusion We are clear and transparent about our intentions to advance diversity, equity and inclusion (DE&I) at Colgate, and have three ambitions: 1. Strive to ensure our team reflects the diversity of the world we serve by increasing diverse representation acro ss our organization, supply chain and partnerships. 2. Foster a corporate culture where everyone belongs, feels included and has the tools to drive their own success. 3. Leverage o ur global reach to advocate for diversity and help underserved communities thrive. Our DE&I strategy is based on four pillars, each with their own goals and objectives: • People: Implement policies, learning experiences and processes that promot e awareness, empathy, advocacy and opportunity. • Community: Be an ally for positive change. • Supplier Diversity: Support minority- and women-owned supplier s to promote the success of diverse businesses owners. • Communication: Promote dialogue around diversity, equity and in clusion to advance the culture change needed to achieve our purpose. 2022 DIVERSITY, EQUITY AND INCLUSION REPORT are working to create a more inclusive company and world. PAGE 32 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Advancing DE&I at Colgate Below are some of the ways we championed DE&I at Colgate in 2021: Enabling Conversations on Diversity Creating a culture where everyone feels included and can be their authentic selves requires honest and direct communication. Employees need to be able to discuss sensitive or personal issues productively while remaining respectful of different, and sometimes opposing, perspectives. This is why we work to ensure Colgate People have the proper training to approach these exchanges with a common foundation of empathy and respect, with the ultimate goal of better understanding one another. In 2021, we made great strides in encouraging and normalizing conversations around diversity and inclusion. Our research and development organization internally developed and administe red a three-session training program titled “Let’s Talk About Race” for our managers. This program is designed to help managers understand how to create an inclusive environment, and productively discuss issues involving race while remaining sensitive to people’s experiences. Training on Unconscious Bias and Allyship We strive to provide an inclusive environment that accepts people of different religions, ethnicities, abilities, sexual orientations, socioeconomic backgrounds, genders and more. Accomplishing this starts with educating ourselves so we can understand each other’s differences and the role we all play in creating a sense of belonging. In 2021, we instituted mandatory allyship and unconscious bias training for all salaried and clerical employees at Colgate, with 100% compliance, to help our employees better understand DE&I concepts and embed allyship as a daily practice. PAGE 33 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Promoting Diverse Leaders We believe our people are cr ucial to our ongoing business success and aim to rec ruit, develop and retain strong and diverse talent. As a truly global company with approximately 70% of our net sales generated from markets outside the U.S. in 2021, we believe it is especially important for our leadership to have diverse perspectives. We are working to increase diversity representation at our management levels. We are making progress in our diversity represe ntation among our senior leadership, particularly for women globally and Hispanics and Asians in the U.S. We are working toward our ambition of full labor force representation in the U.S. among all major ethnic groups so that Colgate People can see themselves across all organizational levels. Through development programs and intentional focus, we are committed to making p rogress across all organizational levels of leadership to maintain a robust pipeline of internal candidates. Learn more about how we are t aking action in Colgate-Palmolive's 2022 Diversity, Equity & Inclusion Report . Ensuring Pay Equity Colgate has long been committed to pay equity and its role in fostering a diverse and inclusive workplace. We pay all Colgate People at a level commensurate with their role, work location, individual performance and experience, irrespective of gender, race, ethnicity or any other category protected by law. Consistent with these values, Colgate conducts an annual U.S.-based pay analysis for gender and race. Acknowledging that comparing pay based on race/ethnicity is challenging on a global basis, in 2020, Colgate also conducted a global gender-based pay analysis. Our results confirm that in the United States, Colgate has achieved statistical pay equity for gender and race. Globally, there is a less than 1% unexplained difference in pay between women and men, and we are committed to continuing our work to close that gap. We will be updating these results in 2022 to ensure we remain on track for pay equity. Supplier Diversity In 2021, based on our 2025 Sustainability & Social Impact Strategy, we created a Supplier Diversity plan that dovetails with Colgate’s overall DE&I goals and drives our sites around the world to engage with more companies that are owned and operated by minorities, women, veterans, members of the LGBT community and people with disabilities. Our goal is to work with suppliers who represent the communities in which we live and work and partner with them to enable their success. To further this goal and enhance our supplier diversity program, we created a position for a Director of Supplier Diversity in 2021. Supplier diversity is an intrinsic part of Colgate’s business strategy. It is as important for Colgate People to see themselves in our suppliers as it is for consumers who expect our business to support their own values. PAGE 34 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Help Children, Their Families and Communities Thrive A Bright Future to Smile About In 2021, we celebrated 30 years of Bright Smiles, Bright Futures® (BSBF), our flagship corporate social responsibility initiative. This program educates young people on the relationship and importance of oral health and well-being and provides access to dental care and the products and tools to implement healthy habits. Through meaningful partnerships with retailers, governments and other key stakeholders, we have reached over 1.4 billion children and their families in more than 80 countries around the world since the program was established in 1991. BSBF continues to promote health equity and optimal health and well-being by engaging with children and families in the communities where they are born, live, work, learn, play and pray. Our Curric ulum The cornerstone of BSBF is our award-winning educational curriculum. Developed by global experts, the multicultural and inclusive materials illustrate how to maintain a healthy mouth and body and are presented in 30 languages each year. In several countries, the program materials are part of the permanent school curriculum. During 2021, we began to actively align our BSBF educational materials with STEM curriculum and health education standards to extend the reach and impact of our engagement. We believe that BSBF not only improves health outcomes, but may improve reading, math and social-emotional development skills as well. In 2021, as COVID-19 curtailed in-person education, we worked directly with teachers to ensure children had access to t he resources of our program through digital means. We engaged teachers as our partners to learn from them and to find additional ways to reach our audience. We also added the ability to measure the outcomes of our students’ oral health education to determine just how much their new- found knowledge improved their lives. Moving forward, we intend to broaden BSBF’s focus to include overall health and well-being. PAGE 35 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Key initiatives and program components drive the award-winning BSBF program: • In-School: We partner with local schools, Ministries of Health and Ministries of Education to organize health educ ation classes and provide products as the tools for behavior implementation. • Community Relations: In some countries, BSBF is mobile. In the United States, BSBF has nine mobile dental program s supported by a fleet of eight mobile dental vans, which travel to rural and urban communities to provide oral health education, free dental screenings and treatment referrals to underserved children. The vans travel to over 1,000 towns and reach more than ten million children and families in a typical year. • Integrated Marketing Communications (IMC)/Trade Partner: We leverage customer relationships to drive excitement a nd incremental merchandising support in participating stores. • Professional Partnerships: We partner with government health agencies, non-profit organizations (NPOs) and dental associ ations to expand the reach of oral care education around the world. • Digital: Educational resources are provided online, including downloadable teachers’ guides, story books, wall poste rs, family take home brochures, videos, songs and oral health games. • Employee Engagement: Our employees are often involved in BSBF programs, engaging with the community or teach ing their families about oral health. Bright Smiles Kids Awards In February 2021, Bright Smiles, Bright Futures® launched the Bright Smiles Kids Awards, a first-ever virtual program celebrating National Children’s Dental Health Month. Groups of children across the nation were encouraged to become champions of their own health and submit a video showcasing their creativity. The Bright Smiles Kids Awards received entries from schools and organizations featuring children singing, dancing, cooking, coding, participating in skits and puppet shows and creating art projects. We voted for and celebrated our winners at an engaging live and virtual event, where our National Award Winners took home grant prizes to support their organizations. The event was so full of energy and enthusiasm that we look forward to relaunching the program in 2022. National Winner: Imhotep Academy, Atlanta, GA PAGE 36 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Engaging Our Employees in BSBF Our employees ensure programs are tailored to local markets and provide the resources, staff and partnerships needed to make a lasting impact. For example, we partner with Brazil’s Ministry of Health to train “Community Health Agents” to teach oral care and handwashing education in the community. Over 35,000 agents have been trained since the program’s inception in 2014, reaching over 14 million people in 27 cities. Our Results Each year, we strive to reach over 60 million children in nearly 300,000 schools around the world. In 2021, the U.S.-based BSBF mobile community program was able to reach more than 50 million children and families with onsite and virtual van visits that focused on the importance of oral health, balanced nutrition and hand washing. We are proud of this program that builds shared value for both us and society, enabling us to make a significant impact in the communities where we live and work while engaging with consumers to build our brand value and empowering children and families across the globe to achieve healthy and bright futures. 2021 Highlights For the first time in its history, the World Health Assembly has approved a resolution that urges Member States to “address key risk factors of oral disease...a shift from the traditional curative approach toward a preventive approach that includes promotion of oral health....” Colgate will continue to shift BSBF to align with the World Health Organization’s framework, which requires longer and impactful engagements. Meanwhile, with many schools still adjusting to operational difficulties caused by COVID-19, we took the opportunity to evalu ate BSBF to determine how it contributes to health priorities as defined by the United Nations Sustainable Development Goals. BSBF has been making contributions to help countries reach those designated goals. During the ongoing pandemic, we explored ways to reach even more children who are underserved, using technology to deliver our message. We focused on and supported teachers who could best address the social elements of health and created content for them to incorporate into their lessons. In some of the countries where BSBF works, there are no dentists, and often not even enough doctors. The one reliable source fo r health care, including health promotion and disease prevention, is nurses. In 2021, BSBF focused additional resources on these vital health care practitioners through advanced partnerships, enabling them to actively engage and incorporate oral health into overall health education. We have been working with Sigma Theta Tau International Honor Society of Nursing—whose mission is to “develop nurse leaders anywhere to improve health care everywhere”—on educating nurses on oral health for children and developing a curriculum to reach nurses globally. From teaching two billion children healthy oral care habits by 2025 to creating access to good oral hygiene practices, Colgate i nitiatives move us toward that goal. At Colgate, we’re committed to leveraging clinical research, collaborating with partners and developing innovative products and technology to achieve a zero- cavity, healthier future for all. Looking Forward One of our future goals is to bring more oral health education to more girls in primary and secondary education systems. We believe that better-educated young women grow up to be healthier mothers, with healthier children. Studies show that girls’ health and safety transforms communities. We would also like to expand our model so that it is not exclusively directed at children. PAGE 37 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Partnerships An important element of our 2025 Sustainability & Social Impact Strategy is our engagement and collaboration with external partners, which complement our strong internal capabilities. These strategic partnerships are important to us to help us achieve our ambition to improve children’s dental hygiene. They include: • Alliance for a Cavity-Free Future (ACFF) • American Dental Association (ADA) • ADA Foundation • Global Child Dental Fund • National Dental Association (NDA) • Save the Children • Hispanic Dental Association • Hispanic Federation • Global Child Dental Fund • The Links, Incorporated • World Federation of Public Health A ssociations (WFPHA) • U.S . Soccer Foundation • Hip Hop Public Health (HHPH) • International Association of Dental St udents (IADS) • School -Based Health Alliance (SBHA) • The National Council of Negro W omen, Inc. Community Engagement and Giving Taking actions to support, elevate and improve the communities we serve is essential to fulfilling our purpose of reimagining a healthier future for all people, their pets and our planet. We provide financial and in-kind donations to nonprofit organizations around the world, and our people contribute their time and talent through Colgate-sponsored volunteer activities. 2021 Charitable Contributions: $47.5 million * Colgate’s focus areas include: • Championing healthy smiles and healthy skin • Creating educational pathways for diverse and underrepresented stu dents and Colgate professions (dentistry, dermatology and skin care and veterinary science) • Providing Food, Shelter & Love for pets everywhere • Promoti n g environmental stewardship; • Championing optimism • Providing disaster relief and emergency care in C olgate communities * Cash and in-kind contributions to charitable organizations, including spending for the Bright Smiles, Bright Futures® program in Colgate’s 20 largest subsidiaries (by oral care sales). PAGE 38 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Below are some of the actions we took in 2021 to fulfill our purpose: Championing Healthy Smiles and Healthy Skin In 2021, we sponsored the Skin Cancer Foundation's mobile skin cancer screening program, Destination Healthy Skin. From August to November, the Destination Healthy Skin RV traveled to 21 destinations around the U.S. Volunteer dermatologists screened nearly 1,000 people and identified 195 potential skin cancer and precancers, including ten suspected melanomas. We gave out more than 6,000 EltaMD sunscreen samples. Colgate Women’s Games We believe one of the best ways to drive social impact and to help young people in our communities thrive is by supporting girls and encouraging them to pursue education. One way we accomplish this is by sponsoring the Colgate Women’s Games, the longest-running amateur track and field competition for girls and young women in the U.S. Each year, thousands of girls participate in the competition, where fin alists compete for trophies and receive education grants. The 2020–2021 season of Colgate Women’s Games was suspended due to COVID-19 safety risks, but is back on track for its 47th season beginning in April 2022. Colgate Women’s Games athletes, the Sheppard sisters and their men tor and coach, Jean Bell (Head Coach of the Jeuness Track Club and Chief of Officials, Colgate W omen's Games), star in the new documentary, Sisters on Track . The athletes and their coach met at Colgate Women’s Games and the program is featured prominently in the film, underscoring how it instills a strong sense of personal achievement and self-esteem in young women while championing the importance of mentorship and education. In 2021, Colgate Women’s Games sponsored the Sisters on Track Impact Campaign. The campaign encourages girls and young women to register for the 47th Annual Colgate Women’s Games as a way to bring the film’s themes to life and focuses on empowering girls across three lanes of impact: Athletics, Mentorship and Education. Learn more at colgatewomensgames.com PAGE 39 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Health and Hygiene CARE Packages In 2021, Colgate partnered with CARE to provide health and hygiene CARE packages to over 25,000 people as we worked together to stop the spread of COVID-19. Together we provided strategic grants in five countries to provide and distribute important health care items. The contents of these packages varied by region, but included kits with supplies for personal hygiene, COVID-19 prevention and prevention of gender-based violence, in addition to other medical supplies. Advancing Education Opportunities Access to continuing education plays a large role in developing and improving people’s lives, which is why Colgate is focused on providing these types of opportunities for underserved communities. In 2021, we continued our longstanding support for the United Negro College Fund (UNCF) by sponsoring, for the second year, the UNCF Virtual Walk for Education, where funds raised will assist UNCF's mission of supporting Historically Black Colleges and Universities. Prep for Prep is an organization whose mission is to develop future leaders by creating access for young people of color to first-r ate educational, leadership development and professional opportunities. In 2021, Colgate’s Chairman, President and CEO, Noel Wallace, and other Colgate executives, presented “Leading in Uncertain Times: Lessons for Future Leaders” to students in the program. Colgate has been a partner for Prep for Prep student internships since 1994. Inclusive Oral Health Products In partnership with Penn Dental Medicine, we are working to create a more inclusive and accessible world of dentistry. In celebration of the International Day of Persons with Disabilities, we donated a selection of hum™ Smart Rhythm Sonic Toothbrushes, which, with the support of an app, help patients properly brush their teeth by providing feedback on the duration and frequency of their brushing. Know Your OQ Campaign In 2021, we started a conversation around how oral health affects people’s overall well-being, and how they can take charge of their oral health, known as the KnowYourOQ campaign . This campaign is designed to promote greater und erstanding and provide education on how oral health is linked to both physical and mental health, and what simple steps everyone can take to have a healthy mouth. In the same way that people may know their IQ or EQ for their cognitive and emotional intelligence, Colgate wants people to know their oral health quotient and understand how they can improve their oral care routine. As part of this initiative, starting in 2022, Colgate will commit $100 million over the next five years to address this global health crisis affecting nearly half the world’s population, and help to ensure oral health is integrated into broader public health strategies and responses. PAGE 40 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT HELPING MILLIONS OF HOMES PAGE 41 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT HELPING MILLIONS OF HOMES We are empowering people to develop healthier habits by choosing sustainable products that improve their lives and homes, from oral and personal care to pet nutrition and home care. Design Sustainable Products Our ambition is to help people in millions of homes around the world live happy and healthy lives. To do this, we are committed to developing and delivering products that people trust and to enable a healthier and more sustainable future for everyone. Central to this ambition is providing products that contain safe ingredients, are less impactful to the environment, require less packaging and improve the health and well-being of our customers and the planet. People Driven Innovation We deliver on our promise each and every day with our culture of innovation. This culture is driven by our global team of diverse thinkers who bring their experience and technical know- how to the job every day. Hundreds of Global Technology specialists across seven Global Technology Centers are dedicated to advancing Colgate’s innovation and growth through their creative, problem-solving approach to their work, their willingness to experiment and their commitment to our mission. Our teams are: • Knowledgeable about our brands • Curious about technol ogy • Passionate about discovery • Constantly improving, learning and evolving Our scientists and engineers are a diverse group of chemists, biologists, clinicians, flavor and fragrance specialists, pack a ging engineers, information specialists and analysts. They are experts in their fields, yet we encourage them to step out of their lanes, to think about a problem from a different perspective and engage with their colleagues from different disciplines. All team members are encouraged to spend 5–10% of their time outside their main focus area, which leads to sparks of creativity and insights that can completely change how we think about a particular problem. PAGE 42 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Global Innovation for Global Challenges While our central research and development headquarters is based in Piscataway, New Jersey, we also have Technology Centers located around the world. In addition to being co-located in these centers, our packaging engineers are located at several of our larger production sites to ensure innovation is brought to life. This large global reach enables us to better understand consumers in different markets. It also helps us spot new trends and growth opportunities, some driven by technological advances and some driven by regional culture and practices. We promote global teamwork; it is not unusual for ideas to travel between our international teams so we can bring them to a dditional markets once they prove successful. For example, in China, we developed toothpaste with anti-bleeding technology. That same technology has since been integrated into Colgate products that are sold in certain other countries of the world. People are at the center of everything we do. Through engagement and listening activities, we can better understand c onsumers’ mindsets and provide them with products that meet their needs, no matter where they are in the world. Our global Consumer Affairs team is available via telephone and email through online forms via the Contact Us page on our websites, as well as other digital contac t channels that vary around the world. Many of our websites also provide frequently asked questions for people to refer to. When we do interact with our consumers and customers, we have an obligation to protect their personal data from unau thorized use or disclosure. Guided by our Privacy Policy , we protect personal data and take al l necessary steps to keep that data secure. We handle all personal data responsibly and are transparent in how we collect, use and disclose consumer and customer data. Improving the Sustainability Profile of Our Products Providing safe, high quality and more sustainable products is the most important goal of our product innovation process. This effort is motivated primarily by our commitment to provide safe, healthy and less impactful product choices to our customers and their families, and by consumer interest in these products. To achieve this goal, we are focused on the following priority areas: • Develop more natural or naturally derived products • Incr ease the biodegradability of our products • Develop pr oducts that contain less water • Eliminate ingredients of concern • Reduce packaging where possible, with a high focus on eliminating pla stic waste • Participate in the Chemical Footprint Project to measure and improve our g lobal footprint PAGE 43 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Sustainability Product Index Central to our efforts to improve product sustainability, we developed the Sustainability Product Index (SPI) to assess the sustainability of our products. The SPI is aligned with our 2025 Sustainability & Social Impact Strategy and is focused on the actions to design sustainable products, build sustainable habits for life, eliminate plastic waste and conserve water. Additional areas considered are our actions to accelerate action on climate change and lead with TRUE Zero Waste certified facilities. The SPI translates results to a rating of “Excellent,” “Good,” “Fair” or “Poor.” The performance results are based on representative products from the product portfolio excluding our EltaMD, Filorga, hello and PCA SKIN businesses. All Categories—SPI Rating Excellent Good Fair Poor Examples of SPI Ratings: Home Care Division: North America Product/Project: Palmolive Rating: Excellent US:* 46 oz. and under. Based on estimated 2021 U.S. and Canada volumes Canada:*591mL and under. Based on estimated 2021 U.S. and Canada volumes Poor Fair Good Excellent • Bottles made with 100% recycled plastic* • Biodegradable cleaning ingredients** • 0% parabens and phosphates • Responsibly made*** • G uides consumers on recycling (e.g., How2Recycle) • P romotes water conservation awareness ( e.g., Save Water) • Part of an i ngredient transparency program (e.g., SmartLabel™) • Manuf a ctured at a facility with TRUE Zero Waste certification**** ** OECD 301 B,C,D / OECD 301 B,C,D *** To learn more, visit Responsibly Made Products | Colgate-Palmolive **** The TRUE certification program assesses business performance in reducing waste. Learn mo re at true.gbci.org . PAGE 44 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Personal Care Division: Europe Product/Project: Palmolive Pure & Delight Body Wash Relaunch Rating: Exce llent • Bottles made with 100% r ecycled plastic • 95% ingredients of natural origin • 96% biodegradable formula • Guides consumers on recycling ( e.g., How2Recycle) • Pr omotes water conservation awareness (e.g., Save Wate r) • Part of an ingredient transparency program (e.g., SmartLabe l ™) • Manufactured at a facility with TRUE Zero Waste certificatio n **** Oral Care Division: Asia Pacific Product/Project: Colgate Gum Expert Rating: Good • Recyclable tube • Contains turmeric extract, which is known for its antibacte rial, anti- inflammatory and wound healing properties • Guides consumers on recycling (colgate.com/goodness ) • Pr omotes water conservation awareness (e.g., Save Wate r) • Manufactured at a facility with TRUE Zero Waste certificatio n **** **** The TRUE certification program assesses business performance in reducing waste. Learn more at true.gbci.org . PAGE 45 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Oral Care Division: Africa/Eurasia Product/Project: Colgate RecyClean Rating: Excellent • 100% recycled plastic handle • 100% plant-based nylon bristles • Guides consumers on recycling the p ackage • Promotes water co nservation awareness (e.g., Save Wa t er) • Recyclable cardboard packaging, no plastic used Ingredient Transparency Transparency is a key part of our commitment to product sustainability. Consumers today are looking for company information about environmental, social and governance practices. In addition, consumers are looking for details about the products they use. We want to empower people with the information about our ingredients in the product and the purpose and function the ingredient provides in the product. We have also started to share our fragrance ingredients for some brands and recently launched Flavors & Fragrances Share for Goo d, our new communications tool to share more information about the fragrance and flavors in our produc ts. Most notably, Colgate is now the first major company to share the flavor ingredients in toothpaste and mouthwash. By proactively launching this program, we are providing even greater transparency to build and extend consumer trust. The article, Building Consumer Trust With Greater Transparency , h ighlights how including flavor ingredients in our disclosure initiative is an exciting opportunity to engag e with more people by providing information that makes them feel confident in their purchasing decisions. Colgate continues to participate in SmartLabel™, a digital platform that provides a wide range of product details that cannot fit o n a package label. It explains what the ingredients are, why they are in the product and what they do. Consumers can access SmartLabel at home and on-the-go while creating a shopping list on their phone or when making a purchase decision in the store. We are also disclosing ingredient information on local brand websites and the Oral Care ingredients are also available on our A-Z l ist . PAGE 46 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT In 2021, we also joined the Chemical Footprint Project developed by Clean Production Action to measure our footpri nt globally. The Chemical Footprint Project is aligned with the following United Nations Sustainable Development Goals: Good Health and Wellbeing, Clean Water and Sanitation and Responsible Consumption and Production. Examples of more sustainable products include Palmolive products formulated with ingredients that meet stringent s afety criteria and performance standards and have earned EPA Safer Choice certification. We offer these products in both fragrance and fragrance-free versions so that consumers can make their preferred choice. For more information, see Safer Choice program | Palmolive® Promise. Product Safety The safety of our consumers and our people is our first and greatest concern. Our technical teams conduct rigorous safety evaluations on all our products before we bring them to the marketplace and ensure our products comply with, and often exceed, all applicable regulatory requirements wherever we do business. We work with regulatory agencies worldwide including the U.S. Food and Drug Administration (FDA), European Medicines Agency (EMA), World Health Organization (WHO) and Health Canada to ensure our products meet the highest standards of safety—for both people and the environment. Safety Evaluation Process When we introduce new products or ingredients in our products, we apply the following rigorous evaluation process to ensure tha t the products or ingredients are safe, all applicable regulations are followed, and our consumers are info rmed about these ingredients. Assess: Before we use a new ingredient, we complete a thorough safety ass essment of the ingredient for both its intended use and foreseeable misuse. If the ingredient is found to be unsafe, we will not use it. Develop: If the ingredient is determined safe, we move forward with dev eloping a product using the new ingredient and evaluate the product’s efficacy and potential adverse effects of its usage. If the resulting product does not meet our standards, we go back to the drawing board. Instruct: In the third stage, we ensure that proper warnings and use ins tructions are communicated on the label of the product. Monitor: It is our responsibility to continue to ensure the safety of our prod ucts once they are available to purchase. Our pharmacovigilance team—made up of physicians, pharmacists and nurses—gathers information on adverse effects and quality complaints from health care professionals and via consumer phone calls, social media, mail, clinical trials, market research and literature. After collecting and documenting that information, the team assesses and analyzes it to ensure that a product’s quality and safety is maintained throughout its lifecycle. PAGE 47 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Build Sustainable Habits for Life Handwashing Education One of the most effective ways to prevent disease transmission, especially among children, is through washing hands. With our positioning as a leading marketer of bar and liquid hand soap, we are partnering with public health officials, academia and local schools and clinics to provide education to millions of children and their families on the health and hygiene benefits of handwashing with soap. In 2021, we launched our Power of Hands campaign in Latin America, a comprehensive health and education program that not only builds brand awareness but also solidifies our holistic approach to the health and well-being of our consumers. PAGE 48 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Campaigns and Partnerships In some countries, as an addition to our BSBF oral care education programs, we are including education about proper handwashing in the oral care curriculum to highlight the importance and health benefits that handwashing provides. We also continue to partner with the Global Handwashing Partnership to help build healthy, sustainable handwashing habits among children. Colgate was also one of the founding members of the Global Handwashing Day campaign with other organizations such as the World Bank and UNICEF. Global Handwashing Day is cel ebrated on October 15th and drives awareness of the vital importance of hand washing with soap and its impacts on health. This global program includes advertising, media campaigns, web resources, social media campaigns, community events and educational programs across the globe. Water Conservation Awareness With the Colgate brand in more homes than any other in the world, we have a unique opportunity to promote water conservation awareness to all our global consumers. With our Save Water public awareness campaign, we estimate that our consumers have contributed to the avoidance of approximately 206 billion gallons of water and 10.8 million metric tons of CO2 emissions, since the campaign’s launch in 2016. The campaign shows how a small change like turning off the tap when you brush your teeth can make a big difference. And since water and wastewater treatment systems are energy-intensive, every drop of water saved means less energy used. PAGE 49 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Foster Lifelong Relationships Between Pets and People Food, Shelter & Love™ for Pets At our Hill’s business, we help enrich and lengthen the special relationship between people and their pets by providing science-led nutrition to cats and dogs. We know just how critical nutrition is to the healthy lives of pets, but we do not stop there. Through donations, partnerships and pet disaster relief, we live out our Hill’s brand values every day. Supporting Shelter Pet Adoption To ensure that our efforts have the greatest impact, we partner with shelters, nonprofits and governmental organizations across the globe. Our Hill’s Food, Shelter & Love™ program has partnered with shelters since 2002, providing over $300 million worth of dog and cat food to more than 1,000 shelters and helping more than 12 million pets find new homes. We are well on our way to our goal of supporting the adoption of 15 million pets by 2025. Another pillar of our Food, Shelter & Love p rogram was serving as the national sponsor of NBCUniversal Local’s Clear The Shelters nationwide pet adoption and donation campaign in 2021 for t he fourth consecutive year in the U.S. In 2021, we provided 70,000 free new pet parent kits during the event and helped ensure that adopted pets would receive science-led nutrition from the start, to kick off their lives in their new loving homes. Working together with NBCUniversal Local owned a nd affiliate stations across the U.S. and Puerto Rico, we are proud to have helped more than 540,000 shelter pets find new homes through the Clear The Shelters campaign since 2018. PAGE 50 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Disaster Relief Support Also core to our brand is doing all we can to help animals in times of crisis. When disasters strike and pets are impacted, we quickly respond by providing free nutritional support through Hill’s Disaster Relief Network. This first-of-its-kind network was established in 2013 as a direct extension of the Hill’s Food, Shelter & Love™ program, with a mission to donate free pet food to shelters, veterinary clinics, governmental organizations and other large non-profits caring for pets impacted by disaster. Over the past nine years, Hill’s has donated over 2.3 million pounds of food to support more than 800 organizations caring for pets in the aftermath of disasters. In 2021 alone, Hill’s donated over 1.1 million pounds of pet food through the Disaster Relief Network to support more than 110 organizations responding to the needs of pets and people impacted by disasters. Our Hill’s Pet Nutrition team has a mission to help enrich and lengthen the special relationship between people and their pets by providing science-led nutrition to cats and dogs, which is wh y when disaster strikes, we step up. In 2021, Hill’s donated $10,000 to the American Veterinary Medical Foundation (AVMF) to support disaster relief work by the Louisiana State Animal Response Team. The gift is also being ma tched by an equal amount from the AVMF’s disaster funds for a total of $20,000. The funding provides support for veterinary professionals in Louisiana who were affected by Hurricane Ida and provides care for animals in need. AVMF and Hill’s also announced a second collaborative donation of $60,000 to the Tuskegee University College of Veterinary Medicine (TUCVM) scholarship program. TUCVM is the alma mater to 70% of Black veterinarians in the U.S. Hill ’s donated 80 bags of dog food and 45 bags of cat food to the St. Hubert’s Animal Welfare Center, to help suppor t the animals in their care and continue their life-saving work. PAGE 51 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PRESERVING OUR ENVIRONMENT PAGE 52 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT PRESERVING OUR ENVIRONMENT We are accelerating action on climate change and reducing our environmental footprint, working with our partners and operations to eliminate waste, decrease plastic usage, save water and conserve natural resources. Eliminate Plastic Waste Colgate has determined that it is not enough to behave responsibly within our own business. To truly make a difference and have a positive impact, we are working toward a shift to the circular economy, one where products are designed to be reusable and waste streams become feedstocks for other products. But this ambitious goal is not something any one company can achieve on its own. It is by working with partners like the Consumer Goods Foru m ( CGF) Coalition of Action on Plastic Waste, Closed Loop Partners (CLP) and the Anheuser-Busch (AB InBev) InBev 100+ Accelerator (100+ Accelerator) that we are able to move toward a sustainable future. Partnerships to Reduce Plastic Closed Loop Partners is a New York-based investment firm comprised of venture capital, growth equity, private equity and catalytic capital, as well as an innovation center focused on building the circular economy. Their investments seek to align capitalism with positive social and environmental impact by reducing waste and greenhouse gas emissions via materials innovation, reuse and refill, supply chain optimization and landfill diversion. Colgate joined AB InBev, The Coca-Cola Company and Unilever to jointly run and sponsor the 100+ Accelerator, an open-innovation program designed to collaborate with entrepreneurs, innovators, engineers and scientists on some of the world’s most pressing sustainability issues. Together, the corporate partners identified key shared sustainability challenges and published them as a call for applicatio ns for the third cohort. From over 1,300 applications, the 100+ Accelerator team selected 35 startups and will be implementing these solutions in over 20 countries around the world. Eighteen of the startups are women- founded, and 11 are joint pilots with the partner PAGE 53 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT companies. Collectively, the 100+ Accelerator and its startups are tackling targets across each of the 17 UN SDGs. Of the six startups that Colgate sponsored directly, five are focused on the circular economy. For example, Make Grow Labs turns food waste into biomaterials for packaging using scoby cellulose in Poland; Solutum has created a soluble and biodegradable alternative to flexible packaging and will produce bags and soap wraps for Colgate in Israel; Wattron has created innovative heating solutions that saves on packaging, energy and time in Germany and Plastics for Change created a fairtrade system for recycling plastic waste and collecting 100 metric tons of plastic in India to include in blister packaging for charcoal. In keeping with our commitment to the Ellen MacArthur Foundation’s Plastics Pact Network, we signed on to the Plastic Pac ts of Canada, the United Kingdom and ANZ (Australia, New Zealand and Pacific Islands) as we continue to work toward our mutual goals related to reduction of problematic materials for recycling, increases in recycled content and recyclability of packaging across all of our product categories. In 2021, we also signed the Ocean Plastics Leadership Network (OPLN) call-to-action for a United Nations treaty on p lastics pollution and confirmed our support for the CGF’s Golden Design Rules aimed at eliminating plastic waste through design. In our 2025 Sustainability & Social Impact Strategy, we set a target to design and deliver circular and alternative solut ions for all our products, aimed at zero plastic waste. By 2025, it is our goal to: • Eliminate unnecessa ry and problematic packaging • Use at least 25% po st-consumer recycled plastic in our packaging • R educe the use of new (virgin) plastic by one- third against a 2019 base line • Make all our packaging recyclable, reusable or compostable Our progress ag ainst these targets, as of December 31, 2021, is set forth below. Our progress against these targets does not include o ur EltaMD, Filorga, hello or PCA SKIN businesses or co-packers. • We continue to strive to eliminate PVC. We have eliminated using PVC i n 99 .9% of our packaging by weight. We have also developed plans to exit the remaining uses where there remains a technical challenge related to product safety. • Colgate’s 2025 target is to use at least 25% post-consumer recycl ed content in our plastic packaging. Our 2021 full-year use of post- consumer recycled plastic in packaging was 14 .2% . • In our effort to eliminate plastic waste, our 2025 target is to reduce our u se of new (virgin) plastics in packaging by one-third against a 2019 baseline. As of December 31, 2021, we have eliminated new (virgin) plastic in our packaging by 8.5% against a 2019 baseline. • As of December 31, 2021, approximately 84.2% of our packaging acr oss categories and materials (plastic, fiber, metal and glass) by weight was technically recyclable. PAGE 54 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Recyclable Toothpaste Tube Colgate’s first-of-its-kind recyclable toothpaste tube , which first launched with Tom’s of Maine in the U.S. in November 2019, has so far b een introduced in five divisions under the Colgate brand. Our goal is to transition the remainder of our toothpaste portfolio to the recyclable tubes by 2023 in the U.S. and by 2025 globally. We are making significant progress in our efforts to transform the toothpaste category and, so far, have shared our tube technology by holding over 50 sessions with the packaging industry, NGOs and other consumer product companies. For an informative video highlighting this process, see Recyclable Plastic Transforming To othp as te Tub e s . Col gate’s tube, the first to be recognized by external recycling authorities as recyclable, is made from High Density Polyethylene ( HDPE), the same No. 2 plastic used for milk and detergent bottles. Recycling the tube alongside plastic bottles requires no extra steps—no rinsing, cutting or cleaning before placing it into a recycling bin. Colgate launched the recyclable toothpaste tube with a “Recycle Me” message in the U.S. The bold, limited edition “Recycle Me!” gr aphics will be found on select tubes of Colgate® Optic White Advanced Sparkling White, Colgate® Cavity Protection, Colgate® Max Fresh Cool and Colgate® Total Whitening. The goal of the “Recycle Me!” campaign is to build awareness of recyclable tubes not only among consumers, but also among recycling s takeholders. Even with all these efforts, however, during this transition phase communities may not yet accept tubes for recycling. Consumers should check with their local community facilities. Learn more at colgate.com/goodness . We are proud to be the leaders in this space and our goal is to continue developing innovative science that creates products that are u ltimately better for our planet. PAGE 55 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Reusable Metal Handle for Toothbrush Colgate launched Colgate® Keep, our first-of-its kind manual toothbrush with a replaceable head and a reusable metal handle for 80% less plastic waste compared to similarly sized Colgate toothbrushes. Available online and at national retailers in the U.S., Colgate® Keep is making less plastic options more accessible for consumers looking for easy ways to reduce their plastic waste. The outer cardboard packaging is made with 60% recycled content and is recyclable. Handwashing Tablets An example of our commitment to improving the sustainability of our products is our 2021 launch of Softsoap tablets, a new version of our popular hand soap. Rather than being purchased in a liquid form, the consumer purchases tablets, drops one into a reusable aluminum bottle, and adds water to make a foaming hand soap. The result is 71% less plastic compared to buying two 7.5 oz bottles of the leading foaming hand soap brand. Partnerships We are encouraged by the progress we have made and the fast start we have had. But creating a sustainable and circular economy is a journey. We cannot do it alone and are proud of the partnerships that have evolved through our strategy work. • Closed Loop Partners • Consumer Goods Forum, Plastic Wast e Coalition of Action • Ellen MacArthur Foundation • Institute o f Scrap Recycling Indus tries (ISRI) • Member of How2Recycle • Pet S ustainability Coalition • Sustainable P ackaging Coalition • Te r r a C ycle® • The Association of Plastic Recyclers • Th e European Organization for Packag ing and the Environment (EUROPEN) • The Recycling Partnership • World Wil dlife Federation (WWF) PAGE 56 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Accelerate Action on Climate Change At Colgate, we are on a mission to create a healthy and sustainable future for all. Achieving that future means we have an important responsibility to address climate change and its threat to disrupt every aspect of our lives—from environmental impacts like weather events, water security and biodiversity, to food supply to socioeconomic stability. This makes acting on climate change a priority for our stakeholders, including our employees, customers, consumers, investors, NGOs and business partners and, in turn, a priority for Colgate. Colgate's Carbon Footprint* 15% Supplier Sourcing of Materials & Services 5% Colgate Operations 80% Consumer Use & Disposal of Products Colgate has been working on climate change for over 20 years. Accelerating Action on Climate Change is a core action of our 2025 Sustainability & Social Impact Strategy and drives our intention for Net Zero carbon emissions across our growing business. Our targets align with the Science Based Targets initiative (SBTi), the Paris Agreement, our signing of the Business Ambition for 1.5ºC and our commitment to Recover Better, working in concert with the UN Global Compact (UNGC). We will make progress towards reducing emissions by working across our entire value chain, including our suppliers, oper ations, brands and consumers. The majority of our total GHG emissions across our four core product categories (oral care, personal care, home care and pet nutrition) are associated with the consumer use of our products—particularly related to the use of hot water for personal and home care, as well as cold water used for oral care. That’s why we made an ambitious commitment to reduce the indirect use phase emissions associated with the consumer use of our products by 20% by 2025 against a 2016 baseline. Although our own global operations contribute only about 5% of our total carbon footprint, these emissions are the ones that we have t he most direct operational control over, so we continue to work hard to drive efficiency and reduce our GHGs. 0 10 20 30 40 50 60 70 80 Consumer Use & Disposal of Products Colgate Operations Supplier Sourcing of Materials & Services * Approximate percentages based on 2020 baseline data across Colgate-Palmolive's global categories and geographies PAGE 57 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Net Zero Carbon Transition and Targets Underlying Colgate’s climate commitments are science-based targets focused on a Net Zero carbon transition. Colgate’s current targets for Scopes 1, 2 and 3 emissions were approved by the SBTi in 2020. Following the release of the new SBTi Net Zero Carbon Standard in late 2021, Colgate has established additional long-term and interim climate targets for SBTi’s review and approval in 2022. Net Zero Carbon Transition Approach Our overall approach to drive our Net Zero carbon targets can be expressed in this simple graphic: Net Zero Carbon Approach Hierarchy Carbon Reduction Carbon Innovation & Technology Carbon Removal Our first priority is to find ways to reduce our carbon footprint and/or mitigate carbon emissions across our entire value chain. This includes investments in energy efficiency and reduction, encouraging suppliers to reduce their carbon footprint, developing less carbon intensive products and shaping consumer habits. Next, we will continue to identify and deploy meaningful lower carbon innovations and technologies that replace more traditi onal carbon-intensive processes. Examples of this include increased use of renewable and carbon-free energy sources, as well as emerging technology solutions for materials, packaging, manufacturing, transportation and product use that lower the overall carbon footprint. Lastly, we will work to permanently remove the residual emissions from our value chain by 2040 per the SBTi Net Zero Standard . For each Colgate functional area, such as operations, procurement and logistics and their associated carbon scopes, we have d eveloped clear target boundaries, glide paths and tactics to guide their associated decarbonization plans. PAGE 58 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Net Zero Carbon Targets Colgate is committing to the following Net Zero carbon and other climate-related targets: By 2025, it is our goal to: • Reduce Scope 3 emissions from Purchased Goods and Services by 20% against a 2 020 baseline • Reduce Scope 1 and 2 GHG emissions in operations by 20% against a 202 0 baseline • Avoid GHG emissions from consumer use by 20% against a 2016 baseline • Red uce manufacturing energy intensity by 25% against a 2010 baseline By 2030, it is our goal to: • Reach 100% renewable electr icity in global operations • Reduce Scope 3 GHG emiss ions from Purchased Goods and Services by 42 % against a 2020 baseline • Reduce Scope 1 and 2 GHG emissions in operations by 42% against a 202 0 baseline By 2040, it is our goal to: • Reach Net Zero carbon emissio ns across the value chain • Reduce Scope 1, 2 and 3 e missions* by 90% against a 2020 baseline Our Net Zero targets were established to be compliant with SBTi’s Net Zero Carbon Standard with the SBTi’s review and approval anticipated in 2022. We have also incorporated guidance from the Climate Action 100+ Net Zero Benchmark, which assesses the performance of companies against the initiative’s three high-level goals: emissions reduction, governance and disclosure. Colgate's Net Zero Carbon Pathway This graphic shows our estimated decarbonization glide path towards Net Zero by 2040. * excludes Scope 3 Categories 2, 9, 11 & 12 per SBTi Net Zero Standard Scope 3 Purchased Goods and Services All other Scope 3 Scope 1 & 2 MT CO 2 e 1 2 3 4 5 6 7 8 20402035203020252020 2040 2035 2030 2025 2020 PAGE 59 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Net Zero Carbon Boundary The boundary and scope of our Net Zero carbon target includes the following Scope 1, 2 and 3 categories: Colgate Net Zero Carbon Value Chain Boundary Purchased Goods & Services *** Finished Goods Transportation & Logistics *** Purchased Electricity ** Fossil Fuels * Energy Transmission *** Employee Commuting *** Le a se d O ffi c es , War eh ouses & Vehi cle s *** Business Travel *** Waste Generated in Operations *** * Scope 1 ** Scope 2 *** Scope 3 The proportions shown are based on a 2020 baseline. Based on SBTi criteria, this boundary does not include the Scope 3 categories “Capital Goods,” “Downstream Transportation and Distribution,” “Use of Sold Products” and “End-of-Life Treatment of Sold Products.” However, to ensure that we continue to drive action and measure progress, Colgate has set an additional and voluntary target to reduce emissions from the use and disposal of our sold products, which is above and beyond the SBTi requirements. Colgate’s 2025 Climate Action Strategy To help support our ambitious targets around climate action and Net Zero carbon transition, we are focusing our climate strategy on five interconnected pillars: Colgate Climate Action Strategy Supply Chain Engagement Net Zero Carbon Op erations Sustainable Products & Co nsumers Business Re silience Society & Natur e Climate Investment, Governance & Disclosure Waste Generated in Operations Business Travel Leased Oces, Warehouses & Vehicles Employee Commuting Energy Transmission Fossil Fuels (Scope 1) Purchased Electricity (Scoppe 2) Finished Goods Transportaion & Logistics Purchased Goods & Services PAGE 60 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Supply Chain Engagement The sourcing of our ingredients and packaging accounts for about 80% of Colgate’s Purchased Goods and Services emissions, so we’re working directly with our suppliers to encourage them to set science-based climate targets, assess their climate and water risks, improve their energy and water efficiency and increase their use of renewable energy. In addition, our climate engagement efforts are helping suppliers innovate to provide us with lower-emissions ingredients and packaging, as well as carbon footprint data. Indirect Products & Services Raw Materials & Packaging Emissions from Purchased Goods & Services Raw Materials & Packaging Indirect Products & Services Since 2008, Colgate ha s requested that our key Tier I suppliers and, more recently, suppliers of carbon- intensive materials, p articipate in the CDP Supply Chain Climate Disclosure Program to help us address climate change, as well as associated risks and opportunities in our upstream supply chain. In 2021, our procurement organization elevated its climate engagement efforts with our suppliers. To kick off the annual CDP reportin g season, we invited suppliers to participate in a special webinar focused on our climate targets, CDP's role in our strategy and best practice sharing. Seventy-one suppliers attended this special webinar, during which we highlighted U.S. EPA ENERGY STAR programs, such as the Challenge for Industry, Energy Treasure Hunts, and the ENERGY STAR Guidelines. We recommended that suppliers become an ENERGY STAR Partner Company and asked them, if they’re not already, to do the following: • Measure GHG emissions and water usage • Set short- and long- t erm goals to reduce emissions and water usag e • Track annual performance against those goals • Report progress against goals via CDP climate and water surveys Carbon-Intensive Mater ials We have identified the ingredients and packaging materials in our product categories that have the highest carbon impacts. Our research and development, procurement and commercial teams are working to leverage this information to help them identify and prioritize opportunities through material and supplier choices without negatively affecting consumer experience, quality or cost. PAGE 61 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Waste Generated in Operations Business Travel Leased Oces, Warehouses & Vehicles Employee Commuting Energy Transmission Fossil Fuels (Scope 1) Purchased Electricity (Scoppe 2) Finished Goods Transportaion & Logistics Net Zero Carbon Transition—Supply Chain In alignment with our overall Net Zero carbon transition approach, Colgate is focused first on our supplier efficiency opportunities to decarbonize. This includes their focus on energy and transportation efficiency, as well as investments in renewable energy, lower carbon and renewable feedstocks, sustainable packaging innovations and process technology changes. Net Zero Carbon for Supply Chain Hierarchy Supplier E ffi cie n cy Carbon-free Energy, Feedstocks & Processes Carbon Removal Net Zero Carbon Operations We are committed to decarbonizing our operations to align with limiting global temperature rise to 1.5°C above pre-industrial levels and we encourage every Colgate factory, logistics team, warehouse and office to do their part to help achieve this target. The following Scope 1, 2 a nd 3 categories are the sources of emissions from our operations: Emissions from Our Operations Finished Goods Transportation & Logistics *** Purchased Electricity ** Fossil Fuels * Energy Transmission *** Employee Commuting *** Le a se d O ffi c es , War eh ouses & Vehi cle s *** Business Travel *** Waste Generated in Operations *** * Scope 1 ** Scope 2 *** Scope 3 PAGE 62 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Net Zero Carbon Transition—Operations After the initial development of our Climate Action & Net Zero Carbon Roadmap, we held webinars to roll-out this plan to our operational teams and educate them on how to take action to decarbonize their activities and encourage them to take such action. Topics included defining Net Zero carbon and highlighting the main tactics available such as renewable energy sourcing, energy efficiency upgrades, electrification and the identification of process improvements. The overall approach for Net Zero carbon in our operations is shown below: Net Zero Carbon for Operations Hierarchy Energy E ffi ciency Carbon-free Energy Carbon Removal U.S. EPA ENERGY STAR PAGE 63 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT In 2021, Colgate was named a U.S. EPA ENERGY STAR Partner of the Year for the 11th consecutive year and was recognized specifically for Sustained Excellence, reflecting the long-standing commitment and results on increasing energy efficiency around the world. The following programs have contributed to the achievement of Colgate’s energy intensity reduction goal. “Top 10” Energy Actions To help our global sites prioritize the most effective energy reduction activities, we use a “Top 10” Energy Actions program, which tracks progress against our most impactful global energy reduction opportunities. 5% for the Planet Our “5% for the Planet” pr ogram helps ensure that our global manufacturing sites identify, fund and implement climate, energy, wate r and waste projects that deliver environmental improvement with a cost savings. The program sets an annual goal to invest a minimum of 5% of our manufacturing capital expenditure budget on cost-savings projects that deliver energy reduction, water conservation and reduction of waste to landfill, with at least 2% of the manufacturing capital budget targeted specifically toward energy efficiency projects. Since the inception of the program in 2011, Colgate has invested more than $301 million in over 1,500 projects, delivering an estimated savings of more than $97 million. Energy Treasure Hunt Program We engage people across C olgate’s operations to participate in our Energy Treasure Hunt program. Over a three-day period, 30 to 5 0 participants visit all areas of a facility, searching for energy waste and brainstorming opportunities to drive continuous improvement. To date, participants in this global program have identified nearly 2,500 energy savings projects.
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT In 2021, people at our Mission Hills manufacturing facility in Mexico discovered 58 energy projects to reduce the site’s energy consumption. Energy Reduction Teams Colgate’s Global Energy Reduction Team leads the technical implementation of Colgate’s energy strategy by setting annual objectives and developing tools and programs to help our sites reach their energy reduction targets. This cross-functional global team is composed of individuals with expertise and passion for reducing Colgate’s energy use and GHG emissions. For 18 years, this dedicated team has continued to focus on supporting our plants with many tools, activities and initiatives. Renewable Electric ity In 2021, we developed a R enewable Energy Master Plan (REMP) to help reach 100% renewable electricity across our operations. The REMP has been informed by third-party energy e xperts providing intelligence on the available tactics to obtain renewable electricity at each of our locations. Also, to help achieve our 100% renewable electricity by 2030 target across our operations, we have assigned responsibility for renewable energy to our division procurement leaders. The four primary tactics of the Renewable Energy Master Plan are: 1. On-Site Solar Generation 2. Utility Green Power 3. Verified Renewable Energy Certificates 4. Virtual Power Purchase Agreements Our REMP provides detai led visibility into the timelines and miles tones to reach 100% renewable electricity for each manufacturing site and Colgate- owned warehouse and office across the four tactics. In 2021, five new on-site solar installations were completed at Colgate f acilities in India, Turkey, Greece and two in the United States. In addition, our Burlington, New Jersey, location installed and activated solar panels that are capable of providing 100% of their onsite electricity load. PAGE 64 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Sustainable and Efficient Logistics Customer service and logistics teams at Colgate continue to launch sustainable and efficient logistics initiatives around the world. These efforts are aimed at reducing costs and environmental impacts while improving customer service. Potential tactics for the logistics Net Zero carbon transition include efficiency opportunities, such as route and load optimiz ation, reduced packaging and shipping less water (e.g., concentrated formulas). In addition, to move towards carbon-free transportation and facilities, tactics include increased use of emerging “green” technologies, renewable energy and driving vendor climate alignment and innovation. Net Zero Carbon for Logistics Hierarchy Lo g istics E ffi ciency Carbon-free Transportation & Facilities Carbon Removal In 2021, we increased the reach of our Load Optimization project to Latin America (Andina and Central America). Using SAP Transportation Management—a tool currently in place in Canada, the United States, Mexico, Brazil and Vietnam—we are automatically planning shipments to their optimal capacity. This has led to more efficient load planning and minimization of the number of shipments to deliver our products in a timely fashion. In addition, Colgate agreed to participate in the United Nations Global Compact’s Young SDG Innovator program. Three early-in- career Colgate employees from the Global Supply Chain organization from our engineering, logistics and procurement functions will collaborate with the program’s facilitators and peers through brainstorming sessions, skill trainings and workshops to define and implement an actionable roadmap to reduce Colgate’s logistics-related climate impacts and support our Net Zero carbon goal. Sustainable Products and Consumers Approximately 80% of our GHG emissions are attributable to the use and disposal of our products and packaging, so we have committed to help avoid emissions from consumers by 20% by 2025 against a 2016 baseline. Our most dramatic opportunities to shrink our climate impact therefore lie in the design of our products and influence on consumer behavior. Some examples include: • D esigning packaging such as our first-of-it-kind recyclable toothpaste t ube, that either uses less plastic, is made with recycled content, or is recyclable, reusable or compostable often has associated carbon reduction benefits. • Raising consumer awareness of water conservation—our Sav e Water messaging campaign. PAGE 65 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Business Resilience We acknowledge that the impact of climate change poses potential short-, medium- and long-term risks to our business. As we accelerate the decarbonization of our value chain to help limit global temperature rise to 1.5°C, our teams are building climate resilience into our global business activities. We are continuing to assess our climate impact, risks and opportunities and to integrate our sustainability strategy across our organization while creating a healthier future for all people, their pets and our planet. | | | Climate Scenario Analysis High / Moderate / Low Carbon Price Scenarios Low Climate C hange Scenario Moderate Climate C hange Scenario High Climate C hange Scenario P olicy and Legal Reputation Market Technolo gy Transitional Risks Physical Risks Acute Progressive Business Risks R evenue Cost Assets Liabilities PAGE 66 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT Climate-Related Scenario Analysis Climate-related scenario analysis is a tool that helps assess an organization's financial exposure to climate change, both for physical and transition risks under different climate futures. Colgate engaged with a third-party expert to conduct a climate-related scenario analysis to better understand how clim ate change may impact our business and what type of actions can be taken to avoid climate risks or capture opportunities. The analysis covered the potential impacts of both physical risks, such as hurricanes or droughts, and the transitional risks, such as carbon pricing, regulatory requirements and impacts on Colgate’s reputation. For more information on the key findings of the climate-related scenario analysis conducted, please see our report aligned with the TCFD recommendations. The information collected through this process will help us prioritize our risk management activities, inform our strategy, create ca pacity to set an internal carbon price, better assess the return on investment for sustainability related capital investments, align with new public reporting and disclosure frameworks and respond in a more complete way to investor requests about the potential climate risks to our business model. We are continuing our work to conduct further climate scenario analyses, including pilot projects to quantify and monetize the clim ate and water risks.
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Mitigation and Adaptation To address the physical risks of climate change to our operations, Colgate has a long-standing operations risk management process that includes managing the effects of episodic climatic events, such as storms, floods, droughts and temperature extremes, to our facilities and supply chain. Colgate is committed to developing a long-term strategy to mitigate risks from climatic events. As part of our property loss-prevention program, our strategic manufacturing sites are highly protected against risks. Third-party assessments on property loss control are conducted annually for all strategic sites. Additionally, we develop and routinely update category contingency product sourcing plans to respond to, among other things, climatic events, including their impact on the availability of raw and packaging materials and logistics. To address the transition risks of climate change, such as carbon pricing, markets and technology, we are, among other thin gs, reducing our energy usage and, in turn, our GHG emissions which enable us to mitigate potential costs. To learn more about Colgate’s strategy to respond to climate- related risks and opportunities, please see our report aligned with the TCFD recommendations. Society and Nature Climate Justice and Equity As part of Colgate’s work to address climate change and transition to a Net Zero economy, we recognize the potential social impacts of our climate strategy as a relevant issue for our business, as referenced in the Paris Agreement on climate change. Often those with the smallest contribution to climate change are the worst affected by it. The livelihoods of the world’s most vulnerable are often threatened by the adverse effects of climate change, as well as mitigation measures. Through work that we conduct with our partner Earthworm Foundation supporting our Palm Oil Program; we engage with small hol der farmers, communities and local governments in Indonesia, Malaysia and Latin America. These projects focus on building capacity with farmers and communities to implement good forest management practices, implementing conservation practices for existing forests and engaging with governments to ensure beneficial land use planning to protect standing forests. In addition, we are working to embed sustainability into all our products and brands. Our R&D and procurement teams are w orking to design sustainable products without negatively affecting consumer experience and the products’ efficacy, quality or pricing. This can help enable more equitable access to low- carbon products as markets shift with the transition to Net Zero. PAGE 67 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Nature In 2021, Colgate began engaging with GlobeScan on their Nature Agenda Project, which is a shared research and engagement program launched in 2021 with the support of 26 member companies. The program includes consumer insights across 11 countries and research with stakeholders across sectors on expectations and good practices for how companies address nature-related issues, risks and opportunities. Program findings are intended to help member companies develop and strengthen their strategies and programs to protect and restore nature. Colgate is also engaged with several organizations, such as the Water Resilience Coalition (part of the UNGC’s CEO Water Manda te), the World Resources Institute, Gartner and GlobeScan to better understand the role of Natural Climate Solutions in our Climate Strategy to address multiple environmental and social co-benefits such as biodiversity, water security, social impact and overall business resilience. No Deforestation We recognize that deforestation and forest degradation contribute significantly to the release of GHGs. Our efforts to protect the environment through our sourcing practices are focused on key forest risk commodities including palm oil, soy-based products, pulp and paper-based packaging and beef (tallow). We have developed and implemented commodity specific policies for palm and soy that outline our expectations for suppliers of these materials and have an overarching No Deforestation Policy that applies to the four key forest risk commodities we source. We work closely with exter nal partners, stakeholders and our peers to take action to protect at risk ecosystems and forests and work closely with local farmers, communities, governments and our supply chain to mitigate the risks of deforestation. One such example is through the work we conduct as a member of the Consumer Goods Forum - Forest Positive Coalition . Climate Investment, Governance and Transparency Underpinning our entire Climate Action Strategy are the critical elements of investment, governance and transparency. In vestment O ur longstanding capital program strategic framework recognizes and prioritizes investments in projects that support our sustainab ility goals. Specifically, the capital program recognizes and supports the investments we make in the areas of renewable energy, energy efficiency, water efficiency, zero waste and packaging recyclability, reusability and compostability projects. Additionally, our well-established “5% for the Planet” program helps ensure that our global manufacturing sites identify, fund and implement climate, energy, water and waste projects that deliver environmental improvement and often cost savings. In addition, in support of our 2025 Sustainability & Social Impact Strategy, in November 2021, we issued the Sustainability Bond . An amount equal to the net proceeds of the Sustainability Bond will be used to finance or refinance, in part or in full, new and existing projects and programs with distinct environmental and/or social benefits pursuant to our Sustainable Financing Framework, which is available on the investor center section of our website. The framework includes projects that help achieve our climate targets. With the recent establishment of our new science-based climate targets, which are aligned with the Paris Agreement’s objective of l imiting global warming to 1.5° Celsius, we are committed to align future overall capital expenditure plans with our long-term Net Zero GHG reduction targets. PAGE 68 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Governance Colgate’s CSO chairs our Sustainability Steering Committee, which makes strategic decisions related to sustainability, monitors climate-related issues and works to integrate our sustainability strategy, including climate change, into our broader organization and meet our sustainability targets and KPIs. For more information regarding how sustainability is governed from a Board and management perspective, please see Sustainability Governance . Transparency and Disclosures Transparency is important to us and to our stakeholders, as it provides accountability and trust. In this report, we provide climate-related information relevant to a broad range of stakeholders. As discussed above, Colgate formed an ESG Reporting Task Force in 2021 to address our stakeholders’ increasing demands for additional ESG and climate-related disclosure. More information is available on our climate governance, strategy, risk management, metrics and targets in our CDP surve ys, TCFD report, SASB report and our KPI table. Partnering for Climate Leadership We understand that addressing climate change cannot be done by a single entity and will require collaborative action across the board. This makes our engagement and collaboration with external partners an important element of our sustainability strategy, and through these partnerships we can complement our strong internal capabilities to create a healthier planet. W e are working with partners and organizations to accelerate action on climate change, eliminate waste, lead with zero waste facili ties and drive sustainable sourcing. Colgate is proud to contribute to and learn from the collective intelligence of our partners in sustainability: These include: • U SEPA Green Power Partnership • World Resources Institute • USEPA ENERGY STAR Award 2021: Partner of the Year, Sustained Exc ellence • The Consumer Goods Forum • Dow Jones Sustainability Indices • UN Global Compact • U.S. Green Building Council • CDP In 2021, Colgate continued to work with Walmart’s Project Gigaton to support their goal to work with their suppliers to reduce one b illion metric tons of GHG emissions from the global value chain by 2030. Through Project Gigaton, Colgate has committed to GHG goals in six areas: emissions, energy, waste, deforestation, packaging and product use. Colgate reports against these goals annually and has been recognized by Walmart as a “Giga-Guru supplier.” A ll of these organizati ons are helping Colgate to accelerate climate action on a global scale. PAGE 69 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Lead with Zero Waste Facilities As part of our 2025 Sustainability & Social Impact Strategy, Colgate is working toward zero waste through the Total Resource Use and Efficiency (TRUE®) Zero Waste certification program overseen by Green Business Certification Inc. (GBCI). Currently, our manufacturing facilities in all our geographies and certain offices and warehouses are using the TRUE® Zero Waste approach and tools. TRUE Zero Waste facilities also meet high standards with respect to energy and water efficiency. Achieving TRUE Zero Waste Certifications Achieving TRUE Zero Waste certifications at 100% of our operations is one of our 2025 Sustainability targets. In 2021, six more of our sites achieved TRUE certification, including our first warehouse to be certified in Guayaquil, Ecuador. That brings the total number of TRUE certified sites, as of December 31, 2021, to 26, spread across five continents in 16 countries. Colgate was also the first company to achieve this certification in Ecuador and Mexico. As of December 31, 2021, 71% of all of Colgate’s products are being produced at TRUE Zero Waste facilities. Our site in Turkey, the Gebze plant, achieved TRUE certification in 2021. This site found alternative uses for non-recyclable wast e, implemented a food waste composting program and reduced inbound and outbound packaging waste. The TRUE Zero Waste program also encourages employee engagement to find unique ways to manage waste diversion. In Turkey, they collected and recycled plastic caps from bottles and donated the proceeds to the Turkey Spinal Cord Injury Association. PAGE 70 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Our manufacturing site in Bangpakong, Thailand, was also TRUE Zero Waste certified in 2021. They created programs to collect and divert food waste, reuse pallets and shipping containers, turn wastewater sludge into fertilizer and more. The site team also collected metal from waste beverage cans and donated the money they received to a company that produces prosthetic limbs—a wonderful contribution to their community. Where waste gets diverted differs from site to site and is managed locally. One site, which manufactures toothpaste, found a creative solution for waste cream products that previously ended up in a landfill. Because the cream already had foaming power, they were able to pass it on to a vendor who uses it to polish metal surfaces. Each site manages their own TRUE Zero Waste certification independently. Our corporate office provides training on the process a nd readiness workshops and meets with the sites to assess readiness. While as a company, to date, we have been focusing on manufacturing facilities for the TRUE Zero Waste program, we plan to include our offices and other warehouses as we work toward our 2025 goal of TRUE Zero Waste certifications everywhere. Commitment to Sustainable Buildings Colgate has committed to the U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) certification for all our new construction projects around the world. Since 2013, we have used the LEED green building rating system to help design and construct our manufacturing sites, technology centers, warehouses and offices as one way to reduce our overall exposure to water and climate change—related issues and offer a healthier, more comfortable work environment. Currently, Colgate has 19 facilities in the United States, Latin America, Asia and Europe that have achieved 27 LEED certifications. In addition, we operate several LEED-certified third-party distribution centers. Colgate has been a member company of the USGBC since 2007 and collaborates and engages with USGBC to advance LEED and green building practices for the global manufacturing sector. Further information about Colgate’s LEED-certified buildings is available on the USGBC Green Building Information Gateway . PAGE 71 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Water Stewardship Saving water is a cornerstone of Colgate’s 2025 Sustainability & Social Impact Strategy, a central component of our mission to create a healthy and sustainable future. Clean water is vital to the communities we serve, yet in many regions of the world, it is becoming an increasingly scarce resource. We’re taking action to ensure water stewardship, security and resilience across our value chain, to protect ecosystems and support water access in our communities. That means we take care of water and conserve its use, help people gain access to safe water and mitigate risks associated with water scarcity. Our Water Stewardship Strategy Conserving Water is one of our key sustainability actions and it is addressed across our value chain, with our communities, and in nature. These define the pillars of Colgate’s 2025 Water Stewardship Strategy, which covers the following areas where we have the opportunity to manage impact: • S upply Chain • Direct Operations • Consumer Use • Water, Sanitation and Hygiene (WASH) • Ecosyst em Protection Colgate’s 2025 Water Stewardship Strategy Supply Chain Direct Operations Consumer Use Water Sanitation and Hygiene (WASH) Ecosystem Protection VALUE CHAIN COMMUNIITES NATURE Investment, Transparency and Governance Colgate's value chain water footprint consists of the water used by our suppliers to produce the raw and packaging materials we purchase, the water used by our facilities to manufacture our products and the water associated with consumer use of our products. PAGE 72 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Our Water Stewardship Targets By 2025, our goal is to: • Engage 100% of our material suppliers with operations in wate r-stressed regions to take action on water security • Reduce manufacturing water intensity by 25% against a 2010 baseli ne • Achieve Net Zero Water* at our manufacturing sites i n water-stressed areas by 2025, and all other sites by 2030 • P romote water conservation awareness with messaging to 100% of ou r global consumers • Reach one million people with water, sanitation systems and health/hygiene education To achieve these targets, we’re taking a holistic approach, collaborating across our entire value chain. * as defined by the USGBC’s LEED Zero program Water and Our Supply Chain We intend to engage all our material suppliers with operations in water-stressed regions to take action on water security. One way we are increasing supplier engagement in our Water Stewardship Strategy is by participating in programs such as the CDP Water Supply Chain Program. We also continue to help our product developers and procurement teams understand and identify our most water-intensive raw and packaging materials, so that purchasing decisions can consider water- related factors where possible. As an example of supplier engagement, we collaborate with the Mint Industry Research Council (MIRC) to gather and analyze data from mint suppliers to better understand the climate and water challenges across North America and share the insights with the industry. We also engage with the MIRC to explore and adopt smart irrigation and other techniques to help farmers take good care of water resources while producing their crops. In 2021, we started engaging our suppliers in water stressed regions of India and held a webinar to share C olgate's Water Stewardship commitment and trajectory and explain how our suppliers can join us in this journey. The webinar highlighted some best practices of water stewardship projects and processes that we have put in place to address water issues at Colgate. It also included a call to action to our suppliers to start measuring and managing their own water risk and consumption. PAGE 73 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Direct Operations We continue to invest in water conservation and assess water risks associated with our global operations. We recycle/return water in highly stressed regions and manage our wastewater appropriately. We remain laser-focused on withdrawing the least amount of water from the environment. Our plants deploy ever-more-efficient practices as we keep driving down our water manufacturing intensity. We are improving our cleaning and sanitization processes, for example, to now require far less water and energy by innovating with our partners at Ecolab. We have had manufacturing water conservation goals since 2002, and since then we have reduced the water consumed per un it of production in the manufacture of our products by 52%, exceeding our 2020 target. Our 2025 target is to reduce our manufacturing water intensity by 25% compared to 2010. Key elements of our Operations program include: 5% for the Planet We invest in water conservation strategies at our global facilities through our manufacturing capital expenditure program, "5% for the Planet," and by implementing our Water Stewardship Strategy. A minimum of 1% of the manufacturing capital expenditure budget is targeted specifically toward water conservation projects. T rue Cost of Water O ur True Cost of Water Toolkit, developed with Rutgers University Business School’s Supply Chain Management Program, is a m anufacturing-based tool designed to help sites quantify some of the hidden costs of water, such as pretreatment and pumping. Knowing the costs encourages focus on opportunities for financial and environmental improvement. W ater Stewardship Standard C olgate’s global Water Stewardship Standard helps all our manufacturing facilities and technology centers develop responsibl e and appropriate programs to ensure that water-related risks are understood and managed, and that water conservation opportunities are continuously evaluated and implemented in support of Colgate’s environmental and sustainability targets. Water Stewardship Standard expectations vary by the level of geographic water stress. PAGE 74 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Net Zero Water In regions with water stress, we continue to assess water risks and implement appropriate resilience measures to anticipate and mitigate the effects. We have committed to achieving Net Zero Water at all our manufacturing sites in water stressed areas by 2025, and all ot her sites by 2030. We will follow the USGBC definition under their LEED Zero program which requires us to: • M inimize total water consumption • Maximize a lternative water sources (e.g. , rain or condensation) • Minimize wastewater discharge and retur n water to the environment In 2021, we formed regional teams with members representing our manufacturing sites to share best practices to att ain Net Zero Water. These teams also review any technology and opportunities to reduce, recycle or return water, such as water treatment automation, rainwater harvesting, cleaning and sanitization efficiency. W astewater Management W astewater discharges from Colgate’s operations are generally pre-treated on site and/or by the local municipali ty prior to discharge to a body of water, in compliance with local regulatory requirements. We continue to work to reduce pollutant-loading in our wastewater discharges prior to treatment. In selected locations where water stress is high, Colgate also treats wastewater to levels appropriate for cooling, toilet flushing, gardening and other purposes. Rainwater collection tank in our Burlington, New Jersey, facility Water Security PAGE 75 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT We use the World Resources Institute’s (WRI) Tool—the Aqueduct Water Risk Atlas—as our main data source to identify which of our locations as well as those of our suppliers, are designated as “high” or “extremely high” in the tool’s main water stress indicators. In 2021, Colgate formed a Water Security Task Force with the primary objective to develop a comprehensive water security framework and recommended water security assessment tools across Colgate’s global operations. This framework considers, for each location, the water availability at the source, water rights and regulations, utility infrastructure and reliability and local water governance. The task force is composed of representatives from the following functions: sustainability, manufacturing, engineering, facilities, risk management and legal.
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Consumer Use W e strive to develop innovative products that enable consumers to use less water while meeting or exceeding product effi cacy expectations. We also promote water conservation awareness globally through our Save Water campaign. We understand that the water required to use our products represents the largest portion of our overall water footprint. To that end, conserving water is an opportunity for innovation. Our portfolio now includes products that contain less water and/or allow consumers to use less water at home. Water Conservation Awareness Because of our products and our position in the global market, we have a unique opportunity to promote water conservation awareness to all our global consumers. Our Save Water campaign continues to increase consumer awareness through messaging on our packaging, online and in stores. The Save Water message appears on our toothpaste and toothbrush packaging, soaps and cleaning products. World Water Day World Water Day is an annual United Nations observance day held on March 22 that highlights the importance of freshwater. Here are a few examples of how we supported this important initiative: • Water Resilience Call to Action: As part of the Water Resilience Coalition, along with other member corporat ions, Noel Wallace, Chairman, President and CEO, signed the Call to Action Letter on behalf of the Company. The Water Resilience Coalition is an industry-driven, CE O-led initiative of the United Nations Global Compact CEO Water Mandate to preserve the world’s freshwater resources through collective action in water-stressed basins, alongside ambitious, quantifiable commitments. • Colgate People Celebrating World Water Day—Colgate People in Piscataway, New Jersey, and Morristown , Tennessee, celebrated by exploring actions they can take to better understand what it is like to live in water-stressed communities and what we as individuals and employees of Colgate can do to support this effort. PAGE 76 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Water, Sanitation and Hygiene (WASH) Providing access to safe water, improved sanitation and proper hygiene education is an important aspect of our water stewardship strategy at Colgate. Colgate is proud to continue our commitment to support water, sanitation and hygiene (WASH) programming through our partnership with Water For People as they pursue their mission to reach Everyone Forever with WASH services across Guatemala, India and Peru. From 2013 through 2021, Colgate's total support of more than $2.2 million has helped more than 500,000 people in communities, schools and clinics gain access to safe water services. Taking action on water security is critical as we reimagine a healthier, more sustainable future for all people, their pets and our planet. We’re proud to be recognized on CDP’s Water A List for our continued transparency and action—we manage what we measure. “Colgate-Palmolive sets an exceptional standard in their sustainability practices and their dedication towards reaching the UN’s SDG 6 of clean water and sanitation for all. Water is the fundamental building block of strong empowered communities, and Colgate-Palmolive’s investments in the Water For People’s Everyone Forever model has helped lift families out of extreme poverty. Over the past nine years alone, Colgate-Palmolive has made a significant impact in the lives of over half a million people living in India and Latin America. Now, children are healthier, can attend school, and women don’t have to spend countless hours daily to collect water. This provides a tremendous opportunity of building a better future for everyone across the globe! Water For People is eternally grateful for the investments Colgate-Palmolive has made in our mission as well as their influence in changing the way people think about our most precious resource: water!” Eleanor Allen CEO WATER FOR PEOPLE PAGE 77 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Ecosystem Protection In prior years, Colgate supported The Nature Conservancy in projects to restore river systems and enhance wildlife habitats while conserving water and improving its quality. We also protect water-related ecosystems through our commitments to No Deforestation, water replenishment, wastewater treatment and community partnerships. Investment, Transparency and Governance To inform our water stewardship efforts, Colgate engages with leading water experts who complement our strong internal capabilities. This collaboration helps build expertise, align efforts and ensure that our water programs meet stakeholder expectations. We are also committed to transparency and reporting publicly on our water stewardship and reduction performance. Colgate has many such partnerships with a broad array of organizations, including suppliers, research institutions, universities, and industry and nonprofit organizations. Colgate participates on the United Nations CEO Water Mandate Action Platform as part of our commitment to the United Nations Global Compact (UNGC). Through our participation in the UNGC’s CEO Water Mandate, we have recently joined forces with other companies to launch an industry-driven initiative: the Water Resilience Coalition. The Coalition aims to preserve the world’s freshwater resources through shared, ambitious commitments that are meaningful and measurable, many of which mirror Colgate’s targets. Here are just some of Colgate’s water sustainability partners: PAGE 78 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Drive Sustainable Sourcing Responsible Sourcing The most environmentally friendly products are made with sustainable and responsibly sourced ingredients. Therefore, drive sustainable sourcing is one of the eleven actions we have articulated as part of our 2025 Sustainability & Social Impact Strategy. This requires that we have high expectations for our suppliers and establish robust and collaborative partnerships with them. The topics on which we engage our suppliers include labor practices and universal human rights, protecting the environment, health and safety and ethical dealings. Ultimately, sourcing materials in a responsible manner is simply consistent with our values. In addition to our non-negotiable expectations for et hical and responsible behavior by our suppliers, we have three primary targets for our responsible sourcing program: • Strive for Net Zero deforestation, prioritizing co mmodity products derived from palm and soy • Reduce supplier GHG emissions by 20% by 2025 ag ainst a 2020 baseline • Engage 100% of our suppliers with operations in w ater-stressed regions in taking action on water security Our strategy is to focus on: • Industry-wide transformation • Expanded use of certified materials and tr aceability • Implementation of geospatial land use mon itoring • Deeper engagement with suppliers and st akeholders • Increased external communications Our Supplier Code of Conduct Colgate’s Third Party Code of Conduct conveys our expectations regarding the conduct we expect from our suppliers, business partners and all other third parties with whom we w ork. Sections of the Code are modeled on, or contain language from, the Universal Declaration of Human Rights and the standards of the International Labor Organization. PAGE 79 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Supplier Engagement Our global procurement team is composed of dedicated professionals in every division of the Company. We strive to develop relationships with suppliers that will help us exceed our stakeholders’ expectations for quality, service, cost effectiveness, sustainability and innovation. To learn more, see Colgate’s Procurement Policies . In order to engage with our suppliers in a meaningful manner, we are developing a system whereby we can collect and analyze a range of key data points from our suppliers and engage with them on setting performance targets. We will continue this effort in 2022 and will report on our progress. Assessing and Managing Supplier Risk As a multinational company with a global supply chain, adverse actions and events associated with our supply chain could affect our reputation as a responsible company. To manage the risk to the Company and to the workers in our supply chain, we have a formal process to identify and manage social, ethical and environmental risks in our supply chain and with other business partners. C olgate’s Supplier Responsible Sourcing Assessment (SRSA) program requires selected suppliers and business partners to c omplete a self-assessment focused on labor practices, human rights, worker health and safety, environmental management and business integrity. Using a supplier risk assessment scorecard, selected suppliers and business partners are scored against critical risk factors to determine the need to conduct a social compliance audit. When a supplier is assessed as high risk, a third-party audit of their facility is required. Through the SRSA program, we have assessed the performance of more than 70% of our suppliers in high-risk geographies since 2012, driving improved working conditions for more than 205,000 employees across our external supply chain. To date, there are more than 700 suppliers and service providers in the program, and approximately 50% have conducted a social compliance audit. Colgate is also a member of the Supplier Ethical Data Exchange (Sedex) and we use the Sedex Members Ethical Trade Audit ( SMETA) protocol to assess suppliers’ compliance with laws covering freedom of association, forced and child labor, health and safety, wages and benefits, working hours and discrimination, and environmental and business ethics matters. Since the program’s inception in 2012, we PAGE 80 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT have assessed more than 80% of our spend, including raw material and packaging suppliers, service providers, contract manufacturers, co-packing facilities and warehousing operations. We have also completed assessments of all our manufacturing facilities and conducted social compliance audits at all facilities located in high-risk geographies. We participate in AIM-PROGRESS, a global industry forum dedicated to the promotion of responsible sourcin g practices and sustainable production systems. In this program, suppliers share noncompetitive audit data with other manufacturing companies that often use the same suppliers, enabling us to gain information more efficiently and relieving the burden of “audit fatigue” on suppliers. To further drive improvement in our supply chain, we have participated in AIM-PROGRESS capacity-building s essions in Latin America and Asia that are designed to improve suppliers’ social and environmental performance. In addition, we conduct similar independent, responsible sourcing training events for our suppliers. Supporting Working Conditions Globally We believe that every worker should have freedom of movement, no worker should be required to pay for a job and no worker should be indebted or coerced to work. Colgate has a long-standing commitment to respecting human rights and labor rights worldwide and supports the United Nations Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and the International Labor Organization (ILO) Core Labor Standards. We have confirmed our support for the UN Global Compact and principles on human rights, labor, environment and anti-corruption. Our policy on Human Rights and Labor Rights describes our co mmitments in detail. Moreover, it is Colgate’s policy not to work with any supplier or contractor known to operate with forced labor. We do not use forced la bor within our own operations, and we seek to eradicate forced labor from our supply and value chains. We, as a member of the Consumer Goods Forum—Human Rights Coalition, endorse the Consumer Goods Forum (CGF) Resolution on Forced Labor and the Priority Industry Principles (PIP). C onflict Minerals C olgate has a Policy on Conflict Minerals and supports ending the violence and human rights violations by armed groups in the Democr atic Republic of Congo (DRC) and neighboring countries, which have been funded in part by proceeds from the mining of cassiterite, columbite-tantalite (coltan), wolframite and gold, and their derivatives tin, tantalum and tungsten (3TGs). Our suppliers are expected to only provide Colgate with materials that are sourced from mines outside the DRC and neighboring countries or from smelters and refiners that have been designated as conflict-free by the Responsible Minerals Initiative. PAGE 81 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Protecting the Environment Through Responsible Sourcing Our efforts to protect the environment through our sourcing practices are focused on key forest risk commodities, including palm oil, soy-based products, pulp and paper-based packaging and beef (tallow). We have developed and implemented commodity-specific policies for palm and soy that outline our expectations for suppliers of these materials, and we have an overarching No Deforestation Policy that applies to the four key forest risk commodities we source. P alm Oil Our efforts to responsibly source palm oil are guided by our Policy on Responsible and Sustainable Sourcing of Palm Oil . Th is policy outlines our expectations for our palm oil suppliers and includes the following commitment s: • N o deforestation and no conversion of native vegetation • No exploitation of people or local communities • Legal compl iance • Reduction of greenhouse gas emissions • Adoption of good agricultural practices We continue to focus on increasing the transparency and traceability of palm oil we source. Our work on policy implementation, transparency and traceability is done in collaboration with Earthworm Foundation and trade groups such as the Consumer Goods Forum - Forest Positive Coalition . Through our work as a member of the Fo rest Positive Coalition, we are collaborating with 20 global CPG brands and retailers to drive collective, transformative change to remove deforestation, forest conversion and degradation from key commodity supply chains and to support forest-positive businesses. In 2021, we partnered with Earthqualizer to implement a satellite monitoring program to monitor our Southeast Asia pal m oil supply for deforestation and for fires potentially related to palm oil d evelopment activities. Through this partnership, we also receive support for supplier engagement and overall sustainability adv isory services. Our work in 2021 included enhancements to our grievance management process, incorporating satellite monitoring activities along with alerts via our partnerships with NGOs and other organizations to any activities conflicting with our policy expectations. When we are alerted to potential issues, we engage with the suppliers and relevant stakeholders to better understand the situation and seek appropriate remedies. Soy Products S oy-derived products are also an area of focus for us, and our Responsible Soy Procurement Policy outlines our actions and expect ations. We recognize that soybean is a key commodity associated with deforestation and social conflict, particularly in South America. Therefore, we aspire to build a transparent and responsible soy supply chain and contribute to industry-level transformation. Our work on soy-based materials is supported through our partnership with Earthworm Foundation and our work with the Consumer Goods Forum - Forest Positive Coalition . Our specific commitments for our soy supply chain are as follows: • N o deforestation and no conversion of nat ive vegetation • No exploitation of people or local communiti es • Adoption of good agricultural practice s • Legal compliance We source most of our soy-based ingredients from the United States, Europe and South America, where d eforestation and ecosystem degradation is a significant concern. Similar to our efforts to responsibly source palm oil, we are striving for traceability to ensure that the products we do source from those geographies can be clearly traced to upstream suppliers who uphold our standards and comply with our policy. PAGE 82 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT
CONTENTS LETTER FROM NOEL WALLACE LETTER FROM ANN TRACY 2025 SUSTAINABILITY STRATEGY SUSTAINABILITY HIGHLIGHTS SUSTAINABILITY MANAGEMENT SUSTAINABILITY GOVERNANCE DRIVING SOCIAL IMPACT HELPING MILLIONS OF HOMES PRESERVING OUR ENVIRONMENT Pulp and Paper Packaging Our commitment to responsibly source pulp and paper materials is based on our recognition that over half of the world’s forests have been lost. This has not only led to biodiversity loss and social instability, but also to the worsening of climate change. Deforestation of High Conservation Value and High Carbon Stock forests, such as tropical rainforests and peatlands, has been especially devastating to endangered animal species and has led to significant release of carbon emissions. Our efforts are guided by the pulp and paper packaging section of our No Deforestation Policy , which outlines our expect ations for how we source these materials. The guiding principles that underpin our approach include: • N o illegally harvested wood • No exploitation of peop le or local communities • N o deforestation of High Conservation Value (HCV) areas • No sourcing o f wood from forests that were converted to plantation s or non-forest uses T o mitigate risks in our supply chain and ensure that we are sourcing our pulp and paper products in alignment with our valu es, we seek to maximize the use of recycled content products wherever possible. We conduct an annual risk assessment process for all paper and pulp packaging suppliers and the materials they source to Colgate, and we utilize Forest Stewardship Council certified materials to further support our approach to sourcing sustainable paper-based packaging. Through our partnership with the Rainforest Alliance, we conduct an annual paper-based packaging supply risk assessment, which helps us to identify sources of high risk within our supply chain and the implementation of actions to mitigate sustainable sourcing risk. Ta l l ow Tallow, a cattle byproduct, is a key ingredient in bar soap production. Colgate sources tallow from suppliers in North America, Latin America and Europe. For tallow sourced from Brazil, we take steps to ensure that the tallow is responsibly sourced and does not originate from cattle ranches located in the Amazon. We require that our suppliers follow environmental and social guidelines set forth by the Brazilian Institute of Environment and Natural Resources and that cattle operations conform with the Minimum Criteria for Industrial Scale Cattle Operations in the Brazil ian Amazon Biome. To learn more about our actions and progress against our work on beef (tallow), please see the Beef (Tallow) section of our No Deforestation Policy . Partnerships An important element of our sustainability strategy is our engagement and collaboration with external partners, which complement our strong internal capabilities. These partnerships help us achieve our ambitions to source sustainably and to strive for Net Zero deforestation. PAGE 83 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT