CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEOPLE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Metrics and Goals Raising Our Ambitions The nature of our business directs us to consider qualitative and In addition, since FY20, we have also maintained an organizational The challenges of FY21 illustrate just how vital and interconnected social and environmental quantitative disclosures and metrics from two SASB industry standards: DIBs goal within our performance management process. The DIBs goal issues are, and the critical role that business can play in building a more sustainable and inclusive (1) Apparel, Accessories, and Footwear, and (2) Multiline and Specialty includes four elements: DIBs index score from engagement survey, society. To that end, we continue to seek ways to raise our ambitions and harness our capabilities Retailers, and Distributors. Disclosures from both standards have been workforce make-up, succession readiness, and successfully completing to deliver positive societal impact. For example, we are actively expanding how we define impact included in this report based on (1) sector-specific guidance provided quarterly DIBs learning series. Evaluation against this metric impacts the to include positive outcomes for all stakeholders—our team members, the communities we serve, by SASB’s Sustainable Industry Classification System, and (2) an team member’s overall performance score and has a direct impact on our customers, suppliers, shareholders and the planet. Last year, we collectively committed and assessment of our business and ESG issues. the team member's annual bonus (if eligible) and merit increase. To learn paid $50 million in support of our LEED initiative. We also set an ambition to achieve Net Zero more about our DIBs, see DIBs on page 32. GHG emissions by 2050 or sooner, signaling our commitment to contribute to a more sustainable In addition to the SASB metrics, we also measure and monitor relevant society and to increase transparency and accountability. To meet the rising expectations of metrics from GHG Protocol and the TCFD and CDP climate reporting We are also in the process of developing short-term and long-term our stakeholders, we continue to expand our public commitments to managing our Company frameworks, questions received from stakeholders, and our own internal emission reduction targets for our organization. We will continue to responsibly. operational and value chain KPIs. To learn more about certain KPIs evaluate these topics in the future and our disclosures may evolve over we consider to be important to our business, see the Dashboard on time. To learn more about the SASB and TCFD disclosure standards, page 12. see the Reference Tables beginning on page 61. We believe that ESG directly supports We have established goals for our ESG metric, NPS. Our NPS results, long-term value creation which inform the strength of our customer engagement, have been Doing the Right Thing is incorporated into the annual incentive compensation plan metrics for our Always in Effective management of ESG can executives since FY20. To learn more about key features of our NPS and further discussion about its integration into executive compensation, see NPS on page 21. Create new sources of revenue % Increase operational efficiency and reduce costs Acting Responsibly Drive innovation in products We are committed to managing our Company responsibly. We bring this commitment to life Reduce negative externalities through our mission and values, our Code of Business Conduct, and our policies and Improve resilience to sources of disruption practices related to the environment and climate change, human rights, health and safety, water stewardship, sourcing, conflict minerals, anti- Improve understanding of stakeholder expectations to increase trust corruption, and corporate governance. 1111