50 Sustainability Report 2021 Inclusive Growth | Introduction Introduction The Economic Imperative for Inclusive Growth Inclusive growth is critical to a healthier, more vibrant economy for all and is a powerful performance driver for companies and investors. We believe that there is an economic and social imperative to close access gaps in emerging markets and low socioeconomic communities. Making these changes is essential to driving long- term inclusive, sustainable outcomes. • While people across all income groups experienced losses during the pandemic, the poorest 20% of the world experienced the steepest decline in incomes 1. • Low-income countries show the highest rates of women’s business startup but lower levels of investment 2. • In a variety of contexts, lower socioeconomic status is associated with more access barriers to healthcare, which is subsequently associated with worse health outcomes 3. • For companies in the top quartile for ethnic and cultural diversity, there is a 36% higher likelihood of industry-leading profitability — and top-quartile companies in gender diversity have a 25% higher likelihood of outperforming on profitability when compared to less diverse companies 4. Yet, women-only founded companies received only 2% of US VC investment, and Black entrepreneurs received just 1.2% in the first half of 2021 5. Our Womenomics research demonstrates the economic case for increasing opportunities for women. • The Womenomics 5.0 report estimates that closing the gender employment gap could lift Japan’s GDP by 15%. • The Investing in EM Womenomics report found that investing in emerging markets with higher gender equality would have yielded outperformance over time. • The Black Womenomics report estimates that reducing the earnings gap for Black women could create 1.2 million to 1.7 million US jobs and raise the annual US GDP by 1.4% to 2.1% each year — which translates to $300 to $450 billion in current dollars. 1—Worldbank: “ 2021 Year in Review in 11 Charts: The Inequality Pandemic ,” December 2021. 2—Global Entrepreneurship Monitor: “ COVID-19 Impacts on Women Entrepreneurs in Emerging Economies: Insights and Indicators ,” February 2022. 3—Frontiers in Public Health: “ Socioeconomic Status and Access to Healthcare: Interrelated Drivers for Healthy Aging ,” June 2020. 4—McKinsey & Company: “ Diversity wins: How inclusion matters ,”May 2020. 5—Crunchbase: “ Black Women Still Receive Just A Tiny Fraction Of VC Funding Despite 5-Year High ,” July 2021. INCLUSIVE GROWTH Growth That Is Not Inclusive Is Not Sustainable