CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEOPLE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Scope 3 GHG emissions information has been prepared in accordance with the WRI/WBCSD GHG Protocol: Corporate Value Chain (Scope 3), Accounting and Reporting Standard. Scope 3 includes indirect GHG emissions (not included in Scope 2) that occur in the Company’s value chain, including both upstream and downstream emissions categories listed below: • Category 1: Purchased Goods and Services • Category 3: Fuel- and Energy-related Activities (not included in Scope 1 or 2) • Category 5: Waste Generated in Operations • Category 6: Business Travel • Category 9: Downstream Transportation and Distribution • Category 14: Franchises Collectively, the WRI/WBCSD GHG Protocol: A Corporate Accounting and Reporting Standard, Revised Edition, the GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard and the GHG Protocol: Corporate Value Chain (Scope 3), Accounting and Reporting Standard are referred to as the “GHG Protocol” in this document. Estimation Uncertainties The Company obtains energy use data from across its global operations for the calculation of its GHG inventory in accordance with the GHG Protocol. There are estimation uncertainties resulting from the limitations inherent in the methodologies used to calculate energy and emissions for the subset of facilities and activities in which actual use data is not available. These methodologies are described within this Note 1 – Company. Note 2 – GHG Reporting Organizational Boundaries The Company has selected the control approach and operational control as the organizational boundary. The Company includes emissions from operations across its global operating units (which includes subsidiaries that are 100% owned, directly or indirectly, by the Company). Two new operating entities (WSS and atmos) were acquired by the Company in the fourth quarter of 2021; emissions for these entities will be incorporated into future years’ GHG emissions inventories. Direct equity investments in other companies (e.g., GOAT Group, Pensole, NTWRK) are outside the organizational boundary, as the Company does not have operational control over these entities and their activities. Licensee stores in the Middle East region are also deemed to be outside of the organizational boundary for Scope 1 and 2 emissions, as the Company does not have operational control of these entities and their activities, however, emissions associated with these stores have been estimated under Scope 3, Category 14 (Franchises). 6767
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