CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEPEOOPLPLEE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Empowering People and Communities LEED We are committed to fighting racial inequality and injustice in the communities we serve. We have committed to spend $200 million over five years (FY20-25) toward enhancing the lives of our team members and customers in the Black community through LEED. This includes economic development initiatives and education initiatives. As of FY21, the amounts spent and contractually obligated total approximately $53.9 million. Economic Development Description FY21 Actions Description FY21 Actions Strategic Investments Selected and vetted seven Black-founded and Breaking Barriers Funded a Black-owned creative agency to design Invest as a limited partner in majority Black-led venture capital funds, with Celebrate LEED brands, marketing assets that were shared with LEED venture capital funds managed a commitment to funding start-ups founded especially those at the local brands for storytelling. by Black fund managers who by Black, Latinx, and women entrepreneurs and regional level, by providing are committed to advancing and/or with business models serving the funds for creative asset creation, Contracted a Black-owned public relations agency diverse-led businesses. Black community. marketing, and other support. to create stories and opportunities highlighting LEED brands and venture capital fund partners. Open to Buy Invested almost $16 million with eligible brands, Agencies and Shifted marketing spend to Black-owned Provide the foundation, processes, such as Pro Standard, Abeille Creations, Grady Creatives agencies, influencers, and talent, including utilizing drive, and talent to discover and Baby, and Clan de Banlieu. Black-owned agencies for key campaigns. develop Black-owned brands and Identify and engage Black-owned Black-creative collaborations to Developed processes and tools across the agencies and creative bring into our stores, and support organization to ease the on-boarding process, talent throughout our global them to take the journey from help brands plan their merchandise capsules, and marketing ecosystem. hyper-local to global. enhance cashflow as local brands grow. Global Suppliers Shifted spend to Black-owned suppliers. GTS Shifted GTS spend to Black-owned business. Identify and on-board Championed training of buyers to query the Find, qualify, and on-board Black-owned businesses into NMSDC when sourcing procurement. Black-owned IT service and Partnered with a Black-owned staffing firm our key procurement needs (e.g., hardware firms to provide and identified and onboarded a Black-owned transportation, office supplies, professional services and professional services firm, in connection with the store signage, cleaning services, hardware procurement. technology, design, and implementation of our new construction site services, and Reno, Nevada distribution center. store fitouts). 2424