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
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