CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEOPLE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Supplier Sustainability and Engagement Establishing Our Expectations Understanding Our Value Chain Brand Partners We have a streamlined supplier profile—our top 20 brands generate Our Commitment to Universal Employment Standards Ensuring Worker Dignity approximately 97% of our sales, and our top 10 of those brands account We have developed GSG, which are distributed annually and require all branded We ensure compliance with our GSG by performing factory audits for our private- for approximately 80% of our sales. and private-label vendors and suppliers globally to respect certain standards. label vendors and suppliers. Strategic and preferred partners – Represent major global sportswear Our branded vendors must acknowledge annually that their manufacturing brands, such as Nike, Jordan, adidas, and Puma. Our buyers work with practices are conducted in alignment with our GSG. In the United States, we We source our merchandise from two types of suppliers—(1) brand partners, also share additional requirements concerning the Foreign Corrupt Practices who produce the branded footwear and apparel, which as of FY21 accounted for these partners to curate special product assortments and marketing Act, the Consumer Product Safety Commission, and Conflict Minerals reporting approximately 99% of our global sales, and (2) proprietary brand vendors who content. In addition, we collaborate on co-creating new products for under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. we contract to manufacture merchandise, apparel, and accessories under our consumers, launching products, and developing immersive brand Day-to-day responsibility of the GSG is jointly managed by Supply Chain and LCKR, COZI, CSG, EASTBAY, All by Just Don, Melodi Eshani, and MTAA (More connections through our Community Stores and Power Stores. Legal, while our CEO ultimately signs off on any actions. Than an Athlete) brands (approximately 1% of sales). Valued partners – Represent up-and-coming brands that are connected The GSG set out the standards applicable to all suppliers who manufacture to youth culture or have a niche product assortment in the athletic or products sold in our stores. As stated in the GSG, we only work with suppliers lifestyle space. whose workers are present voluntarily, compensated fairly, allowed the right of Proprietary Brands16 free association, and who are not subject to harassment and abuse. These are the values we uphold as a company and the expectations we set for all of our Tier 1 suppliers – Represent our primary vendors and their subsidiary suppliers globally. factories. Approximately 80% of our proprietary brand merchandise, apparel, and accessories are sourced from approximately 10 suppliers We form deep strategic relationships with our proprietary brand vendors to located across China, Pakistan, Vietnam, Thailand, Turkey, Portugal, and ensure a high quality product and build a supply chain that is resilient and the United States. respectful of the environment and working conditions of its team members. All Tier 2 suppliers – Represent the raw material suppliers that directly Tier 1 suppliers (primary vendors and subsidiary factories) must adhere to our subcontract with our main suppliers, which may include fabric mills or GSG, and all factories are subject to site verifications against these standards fabric suppliers. on an annual basis. Tier 1 suppliers are required to share the GSG with suppliers with whom they subcontract (Tier 2) if they enter our value chain, and such 16 subcontractors are required to adhere to the GSG. To learn more about our Our definitions for Tier 1 and Tier 2 suppliers are based on parameters defined by the supplier audit practices, see Verifying Suppliers on page 40. SASB Apparel, Accessories, and Footwear standard. Tier 1 suppliers are defined as suppliers that transact directly with the entity, such as finished goods manufacturers (e.g., cut and sew facilities). Suppliers beyond Tier 1 (referred to as Tier 2) are the key suppliers to the entity’s Tier 1 suppliers, including manufacturers, processing plants, and raw materials providers. 3939