SOCIAL IMPACT & SUSTAINABILITY GOALS & PROGRESS 13 GOAL GOAL 1 1 FY21 PROGRESS FY21 PROGRESS TARGET TARGET PROGRESS NOTES PROGRESS NOTES STATUS STATUS SUSTAINABILITY Packaging 7 By 2025, 75-100% of our packaging will be recyclable, refillable, reusable, recycled, or recoverable. 59% 75-100% We will increase the amount of post-consumer recycled (PCR) material in our packaging by up to 50% by 2025, from a fiscal 2019 baseline. 8 73% increase, equal to 15% PCR 50% increase, equal to 13% PCR We have achieved this goal. The amount of PCR material in our packaging is 15% as of the end of fiscal 2021. By 2025, increase the amount of post-consumer recycled (PCR) material in our packaging to 25% or more. 15% PCR ≥ 25% Having achieved our original PCR goal ahead of schedule, we have now set a more ambitious goal. New goal Our ambition is to use responsibly sourced paper products whenever possible with a goal to have 100% of our forest-based fiber cartons FSC certified by 2025. 89% 100% By 2030, reduce the amount of virgin petroleum plastic in our packaging to 50% or less. New goal ≤ 50% New goal Ingredient Transparency We will develop a glossary of key ingredients that includes descriptions of the ingredients’ purpose and will make this information available online by 2025. Eleven of our brands—Aveda, Bobbi Brown, Bumble and bumble, Clinique, Estée Lauder, Editions de Parfums Frédéric Malle, GlamGlow, La Mer, M·A·C, Origins, Smashbox—have posted glossaries of key ingredients on their websites. SOCIAL INVESTMENTS Each brand 9 will focus on and support at least one social or environmental cause by 2025. 95% 100% Our brands identify and support causes that are meaningful to them and resonate with their individual brand identities. EMPLOYEE ENGAGEMENT Employee Safety We will drive safety to continue decreasing the total incident rate 10 to ensure continued world class-leading levels, with a goal of 0.15 by 2025. 0.18 0.15 Employee Engagement By 2025, we will engage 50% of eligible employees in regional, brand, or local volunteerism and giving programs such as ELC Good Works, The Breast Cancer Campaign, and the M·A·C Global Volunteer program. 19% 11 50% In fiscal 2021, ELC Good Works expanded to 17 additional markets globally and now includes 19 markets in total. 12 7. E xcludes brands acquired by ELC during or after fiscal 2020. 8. F iscal 2019 baseline = 8.7% PCR material in our packaging. 9. F or purposes of this metric the number of brands is 22. This number excludes brands acquired by ELC during or after fiscal 2020 and certain licensed brands for which ELC has determined that it will cease to be the licensee. 10. T otal incident rate is the number of OSHA recordable incidents per 100 workers. Excludes brands acquired by ELC during or after fiscal 2020. 11. In fisc al 2021, the COVID-19 pandemic continued to negatively impact volunteerism rates due to restrictions on assembly. 12. Metrics r eflect information self-reported to ELC Good Works, the Company’s internal platform used to report employee volunteerism, employee monetary donations, and ELC charitable matching gifts. In September 2020 (fiscal 2021), ELC Good Works expanded to 17 markets outside the United States and the United Kingdom. During fiscal 2021, ELC Good Works was available to eligible employees in 19 markets globally. “Eligible employees” are those who meet certain criteria, which varies by market, and have access to ELC Good Works. Excludes brands acquired by ELC during or after fiscal 2020. For additional information, see Management Assertion. ( continued)