125 INDEPENDENT ASSURANCE STATEMENTS METRIC & EMISSION METRIC & EMISSION SOURCE TYPE SOURCE TYPE ESTIMATION METHODOLOGY ESTIMATION METHODOLOGY Scope 1: Onsite Fuels If actual fuel usage amounts are unavailable, but it is known that a facility uses a fuel (e.g., natural gas), usage data is estimated. For natural gas, intensity factor averages from other sites are used to estimate fuel use for sites where only fuel cost is available. For sites that use natural gas that receive no fuel or cost data, the building square footage is used to estimate usage based on similar sites’ usage intensities or average benchmark natural gas intensities. Commercial Buildings Energy Consumption Survey (CBECS) natural gas intensity for office space is the primary default benchmark used when no site-specific data is available for offices. Estimations are performed on an annual, or for all missing months, basis, in order to estimate natural gas usage across sites where natural gas usage was confirmed to be a fuel source. For fuel oil, in cases where actual fiscal 2021 usage amounts are unavailable, fiscal 2020 usage amounts are carried forward. Scope 1: Transport Fuels If actual fuel usage amounts are unavailable, usage is estimated based on the available transport data. In the United States and Canada, gallons of fuel purchased is reported and used as assumed fuel usage. In the United Kingdom and Belgium, lease agreements and fuel economy are reported and used to estimate annual mileage and fuel usage. In Brazil, for vehicles without reported usage, average kilometers driven per vehicle per year is reported and used to estimate fuel usage. In all other countries with mobile fuel usage, a combination of total number of vehicles, mileage, and/or liters of fuel used are reported and used to calculate fuel usage. Scope 1: Mobile Refrigerants Estimations are performed to calculate mobile refrigerant usage for ELC owned and/or leased sales fleet vehicles. Estimates are based on the total sales fleet vehicle count by country and average refrigerant recharge and loss per vehicle. Scope 1: Stationary Refrigerants No estimations are made for stationary refrigeration usage as recharge fluctuates year-over-year. Only ELC locations with operational control over their HVAC systems report actual refrigerant recharge (usage) data. In fiscal 2021, actual refrigerant usage was reported at ELC manufacturing and certain distribution and innovation locations. Scope 2: Purchased Electricity ELC employs several methods to estimate electricity usage when actual activity data is unavailable. In some cases, locations provided their own estimates based on partial activity data, invoices, and cost data. In the case where locations are unable to provide relevant data (common for many ELC international leased office and free-standing stores), the preferred method of estimation is based on square footage of office, free-standing store, or salon space. Scope 2: Purchased District Heating No estimates were made for purchased district heating as actual data was available for all relevant locations. Scope 2: Purchased Steam Estimates are made using the CBECS intensity factor (kWh/ft 2 per year) for purchased district heat for office locations. The factor was applied to the square footage of the relevant office locations to estimate the amount of purchased steam. ESTIMATION METHODOLOGY Estimation procedures were used to determine energy and GHG emissions data where measurement data is not readily available as noted in the table below. These estimates account for approximately 12% of Scope 1 and approximately 30% of both market-based and location-based Scope 2 emissions. EXCLUSIONS Each year, we aim to refine our energy and GHG emissions metrics reported. Metrics exclude GHG emissions associated with refrigerant sources at free-standing stores, salon, office, and certain regional distribution and innovation locations. UNCERTAINTY GHG emissions quantification is subject to inherent measurement uncertainty because of such things as GHG emissions factors that are used in mathematical models to calculate GHG emissions and the inability of these models, due to incomplete scientific knowledge and other factors, to accurately measure under all circumstances the relationship between various inputs and the resultant GHG emissions. Environmental and energy use data used in GHG emissions calculations are subject to inherent limitations, given the nature and the methods used for measuring such data.