122 INDEPENDENT ASSURANCE STATEMENTS METRIC METRIC FISCAL 2021 FISCAL 2021 METRIC VALUE METRIC VALUE MANAGEMENT CRITERIA MANAGEMENT CRITERIA GHG EMISSIONS Scope 1 24.1 Thousand metric tons CO 2 equivalent • Direct GHG emissions associated with onsite fuel consumption (natural gas and fuel oil) for the operation of ELC owned and leased locations globally, transport fuel (mobile gasoline and mobile diesel), stationary refrigerants, and mobile refrigerants for the ELC sales fleet. • Excludes refrigerant sources at free standing stores, salon, office, and certain regional distribution and innovation locations. • Does not take into account offsets purchased to cover Scope 1 GHG emissions. • GHGs included as part of Scope 1 are carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O) and hydro fluorocarbons (HFCs). The other GHGs of sulfur hexafluoride (SF 6 ), perfluorocarbons (PFCs) and nitrogen trifluoride (NF 3 ) are not emitted by ELC sites. • Scope 1 emissions are based on fuel consumption, stationary refrigerants and mobile refrigerants, and transport fuel consumption multiplied by their associated emission factor. • Our estimation methodology and emission factors used are described in the Emission Factors and Estimation Methodology sections. Scope 2 Market-based: 57.0 Thousand met- ric tons CO 2 equivalent Location-based: 54.0 Thousand metric tons CO 2 equivalent • Scope 2 emissions associated with purchased electricity, purchased district heat, and purchased steam for the operation of ELC owned and leased locations globally. • Excludes renewable energy and other green power purchased. • GHGs included as part of Scope 2 are CO 2 , CH 4 and N 2 O. The other GHGs of HFCs, SF 6 , PFCs, and NF 3 are not emitted by ELC sites. • Scope 2 emissions are based on purchased electricity, purchased district heat, and purchased steam multiplied by their associated country or regionally specific emission factor. • Our estimation methodology and emission factors used are described in the Emission Factors and Estimation Methodology sections. GHG intensity (normalized to net sales) 0.0 • GHG intensity is calculated as follows: [(Scope 1 GHG emissions (net of offsets)) + (Scope 2 market-based GHG emissions (net of renewables))]/Net Sales for fiscal 2021 in million US dollars. • Offset or “carbon” offset is a unit or CO 2 equivalent that is reduced, avoided, or sequestered to compensate for emissions occurring elsewhere. • Renewables include off-site generation (utility contracts), Energy Attribute Certificates (EAC) (e.g., Renewable Energy Certificate (REC) and Renewable Energy Guarantees of Origin (REGOs)), and a Virtual Power Purchase Agreement (VPPA). • EACs are tradable commodities that package the environmental benefit achieved from a specific renewable energy project. One EAC is issued for each MWh unit of renewable electricity produced. ENERGY Total energy consumption within the organization 289.6 Thousand MWh • Energy consumed from total fuel consumption and total electricity consumption. GREENHOUSE GAS (GHG) EMISSIONS AND ENERGY ELC uses the operational control approach in accordance with the World Resource Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) Greenhouse Gas Protocol Initiative’s Corporate GHG Accounting and Reporting Standard, Revised (“GHG Protocol”) to report energy consumption and direct and indirect GHG emissions for sites where ELC has operational control. These sites include manufacturing, distribution, innovation, office, salon, and free-standing store locations that were in operation for all or part of fiscal 2021. Information related to DECIEM, a brand acquired during fiscal 2021, is excluded from the fiscal 2021 metrics. ELC uses the GHG Protocol to guide the criteria to assess, calculate, and report GHG emissions.