CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEOPLE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Convenience NPS To learn more about NPS and its integration into our executive compensation NPS is an ESG metric because it measures customer sentiment and brand program, see our Proxy Statement. perception, which are influenced by the Company’s ESG strategy. Customer survey responses are gathered for each region across three equally-weighted Emerging Stronger From the COVID-19 Pandemic touchpoints, including Store (in-store purchases), Digital (on-line purchases), and We recognize the human tragedy of the COVID-19 pandemic. Our foremost Post-Fulfillment (receipt of product after online purchase) and are aggregated priority during the pandemic has been the health, safety, and security of our globally. team members, our customers, and the communities we serve. Our approach is Key features of NPS include: grounded in our Company’s PURPOSE. • Connected to environmental programs: “Managing and Reducing Our We continue to put the safety of our team members and customers first by Environmental Impacts” is one of the four pillars of our global ESG strategy following guidelines from local, state, and national governments and agencies. focused on decreasing our environmental impact and charting the course For ongoing and current information on COVID-19 and our response, visit our toward a Net Zero future. Customer sentiment toward our organization is website at footlocker.com/covid19.html. influenced by our environmental and climate stewardship. To further enhance our health and safety practices, in FY21, we considerably • Linked to social initiatives: “Leveraging the Power of Our People and leveraged our new “Launch App Reservation,” which can be used by customers Communities” is one of the four pillars of our global ESG strategy focused on to reserve a virtual place in line for highly sought-after releases, to ensure that ensuring that our customers enjoy world-class engagement in the communities our customers know in advance of hitting the store on launch day if they can we serve and a diverse environment that encourages the pursuit of excellence purchase the release. The intent is to help avoid long physical lines and crowding every day in furtherance of our PURPOSE to inspire and empower in store, while also giving our team members the reinforcement they need to best youth culture. serve our customers on popular launch days. • Reputational: NPS measures customer sentiment and brand perception, which In cases in which supply chain headwinds have caused delays in receiving a we believe are influenced by customers’ views of our ESG strategy. release in time for launch day, we have used a Launch App Reservation to safely • Long term: Strong ESG performance is necessary for our success over the and fairly provide customers the opportunity to purchase the release after the long term in attracting and retaining purpose-driven customers. launch date, creating a safer, more consistent process for high demand releases • Quantifiable: The customer surveys are measured on a scale from 0 to 10. NPS for our customers. scores are scaled from -100 to 100. • No discretion: NPS is formula-driven based upon our performance and does not provide for discretionary adjustments. Reflecting our focus on both customer sentiment and accountability, we have incorporated NPS into our annual bonus program since FY20. The evaluation of full-year NPS utilizes our global performance management rating scale, in which performance can range from 25% to 200% based on the relative achievement of the metrics. In FY21, we achieved an average performance payout percentage against our NPS target of 106.7% of our goal. 2121