GXO Logistics ESG Report

2021 | 95 pages

2021 REPORT Making a positive impact for our people, partners and planet

Contents 04 09 17 22 Messages from What we do How we do it Where we’ve been and our leadership 10 | GXO: Logistics at full potential 18 | Our culture and values where we’re heading 05 | A letter from our 12 | Changing the game in logistics 20 | Our ESG priorities 23 | Reflections on our first year Chief Executive Officer and the journey ahead 07 | A letter from our Chief 26 | Recognition of our efforts Compliance and ESG officer and our people Optimized for digital viewing ESG in action In the interests of minimizing environmental impact and paper wastage, this report has been optimized for digital viewing Throughout this report we use case studies and as such incorporates a variety of interactable elements for both navigation and supplementary multimedia content. to illustrate the value we bring our customers Navigation cues Multimedia indicators and the positive impact we have on people, planet and community. To see a list of all the Our clickable function buttons enable you to quickly Supplementary multimedia content is categorized into case studies used in the report, please see navigate your way through the report content. web, video and policy/report links. The below indicators signify our case study index. Examples are shown below: an interactable link to such content. View the index HOME E S G Return to contents Web content Video content Policy/report documents 2 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

28 42 62 79 Environmental: Changing Social: Changing the Governance: Doing Transparency and the game in sustainability game for our people business the right way accountability by redefining logistics and our communities 63 | Living our values 80 | About this report 29 | Pushing the boundaries of what’s possible 43 | Putting safety first 64 | Leading responsibly 81 | GRI Content Index 35 | Reversing the process: Rethinking returns 48 | Building a culture of inclusion 70 | Making the right decisions 88 | Performance tables every day 38 | Reducing our operational footprint 53 | Supporting and developing our people 57 | Creating the future of work 60 | Strengthening our communities HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 3

A letter from our Chief Executive Officer impact on the planet. We’re already making progress toward our global targets for Welcome to the inaugural report on GXO’s reducing emissions, minimizing waste Environmental, Social and Governance (ESG) and conserving resources. impacts and goals. Thanks to the immense work of Thirty percent of our warehouses are an incredible team, GXO spun-off from XPO and implementing the future of logistics with became a standalone company on August 2, 2021. next-gen innovations that help advance We hit the ground running. sustainability as well as efficiency, productivity Our fresh beginning brings a rare opportunity— and employee safety. In fact, almost every one and responsibility—to create a strategy around of the new contracts we’ve signed since the what matters most to our employees, customers, spin-off has included some element of investors and communities. That means harnessing advanced technology, robotics or automation. technology to not only improve profitability and performance, but also minimize our environmental Becoming an employer of choice impact, create a safe, welcoming workplace and do business the right way. With labor markets becoming increasingly We call ourselves gamechangers. And on the competitive, one of our main objectives is following pages, you’ll learn why. Along with making GXO an employer of choice around our values, you’ll see examples of how we are the world. Our more than 100,000 team delivering on the full potential of logistics for our members are making our success possible. customers. You’ll learn details about our journey to Their engagement is the fuel that powers GXO. become an employer of choice for talented people We nurture this engagement with careful worldwide and how we have delivered against our attention to every aspect of employment, stakeholders’ priorities in our first five months as an from competitive compensation to a vigilant independent company. You’ll also get a preview of approach to health and safety. Through GXO our plans for the years to come. University, our employees have numerous opportunities to expand their skills and plan a Building warehouses of the future course for career growth. As the world’s largest pure-play contract logistics We are intent on building a winning culture, provider, GXO is establishing itself as the logistics one where all GXO employees feel valued and partner of choice for forward-looking companies supported and have a sense of belonging. We that share our commitment to ESG. Together with appointed our first Vice President of Diversity, our customers and landlords, we’re deploying new Inclusion and Belonging, who will help us foster equipment and methods to shrink our collective inclusion as we recruit and develop talent with diverse backgrounds and perspectives. 2021 ESG Report | 5 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 5 HOME ©2022 GXO Logisitcs, Inc. HOME E S G E S G

Strengthening our communities GXO operates over 900 warehouse locations in cities and towns across 28 countries. These communities are home to our customers, our colleagues and our families. Our commitment to creating a better world around us starts by being a good neighbor. We stand with our team members in supporting important causes through donations of time, money and other resources. And we partner with community organizations to amplify our impact. As we issue our 2021 report, we recognize the humanitarian crisis unfolding in the wake of the war in Ukraine. Like many other global companies, we have team members who are directly affected, and our thoughts are with them constantly. We are committed to supporting our colleagues and those affected by this crisis, and we will share details of our efforts in next year’s report. Leading by example The ESG commitments you’ll read about in this report stem from a sincere desire of our Board and our executive leadership to create an exceptional company in collaboration with all of you, our stakeholders. Together, we will pursue measurable results and accountability for our impact around the world. We’ve set a high bar, and we are already seeing results. In October 2021, GXO earned an “AA” ESG rating from MSCI. There is much more to do, and we will remain diligent in our evaluation and pursuit of our ESG goals. I look forward to reporting on our DISCLAIMER STATEMENT progress as we continue to unleash the power THE USE BY GXO OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPON- of logistics at full potential. SORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF GXO BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. Sincerely, Watch Malcolm describe GXO’s Malcolm Wilson commitment to people, partners Chief Executive Officer and planet 6 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME HOME E S G E S G

A letter from our Chief Compliance In GXO’s DNA and ESG Officer The emphasis on ESG performance inspires Shortly after GXO’s launch in August of last year, leadership and colleagues in every function in I joined a group of senior GXO leaders from around the organization. ESG goals are being embedded the world to discuss what we wanted to be as an into all that we do in areas such as emissions, organization. Our discussions covered much more energy and resource use, diversity, community than balance sheets and global markets. impact and compliance management. As we defined and explored our values and We share a commitment and a common responsibilities, it quickly became clear that ESG is a understanding that “how” we do things at critical and foundational priority with champions at GXO is every bit as important as “what” we do. the highest levels and across all business functions. We expect every team member to embed ESG As a new company, we have the advantages principles into their daily work and share in the necessary to excel in our ESG work. We’re nimble mission of doing business the right way, and able to pivot swiftly as new needs arise. which includes: We’re also fortunate to have stakeholders who are • Making decisions that are responsible, not only receptive to change, but who also share sustainable and ethical GXO’s goal to be at the forefront of innovative ESG • Acting in the best interests of our planet, policies and practices. communities, employees, customers and investors • Providing a safe and supportive workplace • Building a culture of diversity, inclusion and belonging • Working with partners who share our values The “right way” also guides how we interact with and support our team members and communities. It drives us to partner with our customers on innovative solutions. It empowers us to build our investors’ confidence through smart risk management and strong governance practices. 2021 ESG Report | 7 HOME ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. 2021 ESG Report | 7 HOME E S G E S G

Implementing an ESG strategy To bring a fresh lens to our thinking, we engaged our key stakeholders to complete our first materiality assessment and articulate our ESG priorities. We also formed committees at the Board and executive levels to help us achieve them. We are now in the process of developing an ESG scorecard for greater accountability and to focus our resources where they will be most impactful. I’m extremely proud of what we’ve accomplished together in the past eight months. We’ve laid a solid foundation for industry leadership by nearly every measure. And we are just getting started. Regards, Meagan Fitzsimmons Chief Compliance and ESG Officer Hear more from Meagan on the role of ESG at GXO 8 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G HOME E S G

What we do Return to contents We chose the name GXO because it represents the core of what we provide for our investors, customers and colleagues: game-changing opportunities. 10 GXO: Logistics at full potential 12 Changing the game in logistics ©2022 GXO Logisitcs, Inc. 2200221 E1 ESG RSG Reeppoorrt t | | 99 HOME E S G HOME E S G ©2022 GXO Logisitcs, Inc.

GXO: Logistics at full potential What we do On August 2, 2021, GXO was officially born. Numbers that matter We are a company of more than 100,000 people worldwide who see endless opportunities to drive innovation in logistics to help our customers unlock the full potential of their supply chains. Scale Our customers include more than a quarter of the Fortune 100 companies, and we are more than their suppliers; we are their strategic partners. ~900 100,000+ 28 From warehousing to distribution, we tailor supply chain management Warehouse locations Team members Countries solutions to the business challenges and complexities of different industries and use our knowledge and technology to deliver the results our customers demand. ~200 million 1/4 $7.9 billion Square feet of of Fortune 100 companies Revenue in 2021 warehouse space are our customers Results 4-6x 5x 5-7% Productivity improvement More items shipped Average labor efficiency with team members using robotic automation improvement by deploying supported by robots machine learning 10 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

GXO has experience supporting businesses in some Industries we serve of the world’s most complex and high-growth industries. GXO brings major advantages of technology, scale and expertise, as well as something unique—customized logistics solutions that transform challenges into competitive strengths—to every customer Aerospace Agribusiness Automotive Chemical Consumer Ecommerce relationship. We understand the supply chain requirements of each and defense and energy packaged industry that we serve, including regulations, special handling, goods surge management and other demands. Learn more about how we support businesses in some Food and Healthcare Industrial and Omnichannel Public Technology of the world’s most complex and high-growth industries beverage construction retail sector and consumer electronics $7.9 billion 5-7% HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 11

Changing the game in logistics Our team members see endless opportunities to advance logistics through technology. This is why we call them gamechangers. And in many ways, GXO is not just a logistics company—we are also a technology company at our core because we are focused on creating bespoke, technology-driven solutions for our customers, which in turn creates new and exciting opportunities for our colleagues. GXO uses automation and technology as key differentiators to boost safety, efficiency and For example, GXO has developed high-profile “digital” productivity for customers while transforming the warehouses—“warehouses of the future”—around the work experience for our team members. Our focus globe that also serve as innovation incubators for our is on data-driven processes, intelligent automation technology organization. Designed as collaborative and machine learning-technologies that deliver environments where we work closely with customers, smarter, more efficient and agile supply chains these have far-reaching impacts on the future of and help our customers realize their goals. logistics. In addition to the direct benefit to supply chain operations, our technology-enabled warehouses help our customers move forward on corporate responsibility goals, such as environmental sustainability and workforce health and wellness. Throughout the report, we share examples that illustrate how we are helping our customers capture new opportunities and enabling our colleagues to thrive in a new world of work by pushing the boundaries of what’s possible. 12 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 12 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Where we innovate Logistics is ripe for transformation through the technology that we provide. Automation gives our operations the ability to flex with demand and deploy our resources where they have the most benefit. Real-time visibility enhances stock-keeping and lowers cost. Collaborative robots support workers during picking and packing operations. Ecommerce, in particular, requires an optimal combination of human and technological resources to address rapid growth, seasonal peaks and shifts in online behavior. This commitment to game-changing innovation is a defining characteristic of GXO’s logistics technology. We’re engineering supply chains that transform logistics today and anticipate the future. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 13

200+ new technologies tested from 100+ new suppliers 200% Learn more about how we are using automation to change the game for customers, team members increase in and even the planet collaborative robots, called cobots Listen to our Chief Information Officer describe the future of logistics, technology and GXO HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 15

How we do it Our culture Be Be and values safe inclusive At GXO, our values aren’t just words We put safety first. We value individuals’ diverse voices, on paper—we live them every day. It’s our responsibility to take care of talents, identities, backgrounds and each other. Together, we create safe, experiences to drive innovation We know that being a leader in logistics supportive workplaces where people and success. We build a culture of means making sure we take care of our can thrive and return home from work belonging that respects every team customers and each other. That’s why as healthy as they arrived. member and constantly finds ways everything we do is grounded in our to meet their diverse needs. values-based culture. A key part of our journey entails defining who we are and what we want to achieve. Our core values—be safe, be inclusive, make an impact, change the game and deliver results—are the foundation of our culture. 18 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G HOME E S G

Make Change Deliver an impact the game results We strive to make a positive impact for our We never stop finding bold, original We’re laser-focused on delivering people, partners and planet. We do it by solutions to tough challenges. the best results. Every day, we find ways listening, doing business responsibly and We continually raise the bar, powering to increase efficiency, speed and overall ethically, and going above and beyond to game-changing solutions with advanced performance. We’re passionate about deliver environmental, social technology. We help our customers evolve producing outstanding outcomes for and economic value. to meet the needs of tomorrow, as well all our stakeholders. as today. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 1919

Our ESG priorities At GXO, we are looking to lead the Material issues: Listening to the voices stakeholders, including customers, investors and team members, through way on ESG. of our stakeholders interviews and surveys. We combined the results with an in-depth analysis We account for environmental and social of documents featuring the perspectives of policymakers, communities and impact in everything we do, whether that’s In 2021, we undertook GXO’s first materiality the industry at large. The final analysis was reviewed by both the executive building career paths that help diverse assessment. Partnering with an independent firm, leadership team and the Board. teams thrive or designing operations that we conducted a comprehensive review of the The results of our work are represented in our materiality matrix, which reduce energy consumption and increase environmental, social and governance topics most reveals the relative importance of the issues relevant to our company and environmental sustainability. ESG criteria relevant to our industry to prioritize the topics our stakeholders. are core to our operations. that would be most important to GXO and our stakeholders over the next 3-5 years. We sought to identify the areas where GXO should focus its efforts Materiality matrix to sustain long-term value creation. Click on an issue to learn more about our efforts We began by performing research to identify issues that are likely relevant and important to GXO’s internal and external stakeholders. To start, we referenced leading global standards and frameworks, including the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD), to identify potentially relevant issues to a broad set of stakeholders. We also examined dozens of sources and industry research to identify emerging issues and trends. Hear more from our Chief This analysis yielded a list of potential issues, which Compliance and ESG Officer we then tested via interviews and surveys to define Meagan Fitzsimmons on the role which ones we deemed material. of ESG at GXO and how we do This testing included interviewing members of our business the right way executive leadership team, surveying internal subject matter experts and analyzing opportunities for and risks to the business. We also engaged GXO’s core 20 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

The materiality matrix reflects the issues our stakeholders deem important for GXO to address. Individual stakeholder groups also expressed issues of the most importance Based on the results of this analysis, the issues reflected in our global goals and to them: additional issues prioritized by our customers, investors and employees, we have identified the following priority material issues for GXO over the next 3-5 years: Customers: • Energy & Greenhouse Gas (GHG) • Employee engagement includes emissions includes our carbon our work environment and culture, • Energy and GHG emissions footprint, use of renewable energy, employee satisfaction and well-being • Packaging management energy efficiency and reduced and compensation and benefits emissions from optimizing logistics as well as proactive and productive • Diversity and inclusion for our customers. communication with team members, respect for workers’ rights and • Diversity and inclusion includes compliance with applicable our culture of belonging and labor regulations. board, executive, workforce and supplier diversity. • Information security includes data Employees: privacy and protection and the security • Talent management includes of our information systems along with • Workplace safety and security recruitment, retention, the data they contain. • Employee engagement development & learning and career progression. • Energy and GHG emissions While all the issues analyzed are important to GXO, the above issues represent areas where stakeholders have indicated that we can have the greatest impact. GXO will continue to carefully consider all ESG-related issues and intends to focus Investors: appropriately on the additional issues prioritized by our stakeholders, including packaging management, waste and workplace safety and security. • Climate change risk and adaptation • Diversity and inclusion • Information security HOME E S G HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 21

Return to contents Where we’ve been and where we’re heading: a summary 23 Reflections on our first year and the journey ahead 26 Recognition of our efforts and our people 2222 || 2200221 E1 ESG RSG Reeppoorrtt ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. HOME HOME E S G E S G

Return to contents Return to summary Reflections on our first year Environmental: and the journey ahead We focus on sustainability for two reasons. First, it’s the right thing to do for our planet. And second, it’s important to our customers, employees and investors. We’re actively partnering with customers around the world to help them achieve their sustainability goals while we innovate to reduce our own In our first year as an independent company, we are proud of the progress environmental impact. we have made against our ESG priorities and look forward to further Highlights from 2021 progress on our ESG journey. Here are a few highlights from 2021. Read more throughout the report. • 5 ambitious environmental goals launched 80% global 80% 30% GHG emissions 50% 100% operations global landfill (Scopes 1 & 2) renewable carbon neutral using LED diversion rate reduction by 2030 energy globally (Scopes 1 & 2) lighting by 2025 by 2025 vs. 2019 baseline by 2030 by 2040 • 37% of GXO-owned or leased facilities globally are ISO 14001—certified, and our new logistics center in Trecate, Italy, aims to be the first LEED v4 Platinum-certified warehouse in the EU • Our global Scope 1 and 2 emissions have decreased by 13,624 metric tons CO e since 2019 and 2 our emissions intensity has decreased 16.7 metric tons CO e per million dollars of revenue, or 26%, 2 since 2019, even as we have expanded our business and footprint significantly • 47% of our floorspace in the U.S. and Europe using energy-efficient LED lighting • 79% of waste diverted from landfill globally in 2021, nearing our 2025 target of 80% landfill diversion ahead of schedule Our environmental sustainability efforts align with the following United Nations Sustainable Development Goals: Read more about how we are changing the game in sustainability HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 23

Social: We are building a workplace that cares for and develops our gamechangers while we seek new ways to strengthen the communities in which we live and work. We champion diversity, inclusion and belonging (DI&B) throughout our daily work, and we strive to give each person the support needed to thrive. With more than 100,000 team members in operations in 28 countries around the world, we recognize our amazing potential to create new opportunities not only for our customers, but also for our team members and communities. Highlights from 2021 • First Vice President of Diversity, Inclusion and Belonging (DI&B) appointed • Our Road to Zero program aspires to zero occupational injuries and illnesses while ensuring the emotional well-being of all GXO team members • 109,000 users completed a total of 315,000 learning modules at GXO University • 30% of GXO’s more than 900 warehouse operations are automated or tech-led—a percentage six times greater than our competitors’. Employees supported by goods-to-person systems saw productivity gains of 4 to 6 times while productivity doubled for those working alongside cobots. What’s more, staff turnover at GXO automated facilities is about 30% lower than the group average. • ~2x increase in women leaders at VP level and above globally since 2019 Read more about how we are delivering on our social goals Our social goals impact the following United Nations Sustainable Development Goals: 24 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 24 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Governance: Throughout our organization and across more than 900 warehouses around the world, our values and our commitment to ESG guide the decisions we make. Our strong governance structure and practices help bring these values and commitments to life for our team members worldwide, our shareholders and our business partners. Highlights from 2021 • 75% of our board members are independent • 50% of our board members are women • Our “speak up” culture encourages colleagues to embrace each employee’s responsibility to report any concerns over or potential violations of our values or policies without fear of retaliation • GXO Code of Business Ethics and related policies made publicly available in multiple languages Our focus on good governance Read more about how we are impacts the following doing business the right way United Nations Sustainable Development Goals: Watch: GXO at Work HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 25

Recognition of our efforts and our people We’re proud to be recognized for our work with our customers, our impact on our communities and our vision of creating a workplace of choice for talented team members of all backgrounds. Global • “AA” (Leader) MSCI ESG Rating • Gartner–3PL Magic Quadrant for 5th consecutive year* • FreightTech 100 • Green 75 Supply Chain Partner, 2020, by Inbound Logistics for 5th straight year* • Maytag Dependability Award for reverse logistics, 2020, by Whirlpool* • Human Rights Campaign Corporate Equality Index for LGBTQ+ • 2021 Sustainable Future Award from Covanta Regional • Il Logistico dell’Anno (Italy) • Kings of Supply Chain Innovation Award, 2020, Supply Chain magazine* (France) • #3 of Top 100 Logistics Providers in the Netherlands, 2020, by Logistiek* • Defence Employer Recognition Scheme (DERS) Bronze Award (U.K.) • Forbes 50 best companies to work for in Spain With our partners • Institute of Innovation and Knowledge Exchange (IKE), ISO 56002 Investor in Innovations Standard (GXO-Virgin Media) DISCLAIMER STATEMENT THE USE BY GXO OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR * while part of XPO PROMOTION OF GXO BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. 26 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

GXO has implemented technology like this Small Order Automated Packaging (SOAP) machine to reduce cardboard use and minimize wasted space in shipments. Learn more on pg. 30 2021 ESG Report | 27 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 27 HOME E S G ©2022 GXO Logisitcs, Inc.

Return to contents Environmental: Changing the game in sustainability by redefining logistics We focus on sustainability for two reasons. First, it’s the right thing to do for our planet. And second, it’s important to our stakeholders. We’re partnering with customers around the globe to help them achieve their sustainability goals while we innovate to reduce our own environmental impact. 29 35 38 Pushing the boundaries Reversing the process: Reducing our of what’s possible rethinking returns operational footprint Our environmental sustainability efforts align with the following United Nations Sustainable Development Goals: 28 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 28 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME HOME E S G E S G

Return to contents Pushing the boundaries Environment of what’s possible We are changing the game for our customers. GXO also delivers significant value for fashion retailers. More than half of emissions from the fashion industry We work with our customers to develop innovative relate to the manufacture and shipping of products. solutions that help them to better serve their own For many fashion retailers, more than 30% of this customers and achieve their goals. This includes inventory remains unsold at the end of the season, finding the most sustainable ways to get products to with “overstock” often ending up in landfills. GXO’s end consumers, or even returned products into the warehouse efficiencies can reduce overstock by more hands of the next consumer. than half, which decreases the amount of goods that need to be manufactured and in turn can help reduce For many of our customers, the logistics component emissions across the supply chain by nearly 10%. This is of their supply chain accounts for a sizeable portion before we consider the impact of returns. Industrywide, of their greenhouse gas (GHG) emissions and waste approximately 30% of fashion products sold are footprint. We collaborate with customers to create returned, with 25% of those returns typically ending action plans that reduce emissions related to their up in landfills, producing approximately 7.5% more supply chains through technology-enabled solutions. emissions. GXO’s reverse logistics innovations address this challenge directly: We are helping our reverse The food industry is a prime example. Research shows logistics customers ensure nearly all returned products that 25% of GHG emissions come from the food are resold—with any unsold products being recycled or supply chain. Improving grocery and food order donated to charity. accuracy alone industrywide could result in up to a 1% reduction in global emissions. GXO’s automated In this section, we delve deeper into some of the ways warehouses improve accuracy by several percentage we are helping our reverse logistics customers across points to shrink waste and associated emissions to industries transform the sustainability and resilience of minimal amounts. their supply chains. HOME E S G ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. 2200221 E1 ESG RSG Reeppoorrt t | | 2929

ESG in action: GXO’s new packaging innovation cuts waste down to size for Amer Sports The Opportunity Outcomes International sporting goods leader Amer Sports is home to Last-mile delivery vehicles can now fit popular brands such as Salomon and Wilson. While seeking more right-sized packages into each to improve ecommerce fulfillment, the company recognized load, reducing the overall number of an opportunity to reduce its environmental impact by shipments and transportation-related targeting the extra space, plastic packing materials and GHG emissions. The precise cutting GHG emissions linked to using only standard-sized reduces cardboard use and waste by up cardboard boxes. to 15%. The technology also reinforces corners, which strengthens structural The Solution integrity. These reinforced corners increase durability to minimize damaged GXO’s solution is an innovative new Small Order Automated returns—reducing the environmental Packaging machine at its Saint-Vulbas, France, distribution footprint from returns and improving center that automates the final stages of packaging. The consumer satisfaction. machine customizes Amer Sports boxes to perfectly fit GXO is proud of this innovation and our parcels at a rate of up to 700 packages per hour. After taking ability to leverage this technology, as well 3D measurements, the machine cuts carboard to within as similar custom packaging solutions, a millimeter of the product’s dimensions. All offcuts are for other customers around the world. recovered and recycled. See the new packaging machine in action 30 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

ESG in action: Warehouse of the Future advances Nestlé’s ambitious environmental goals The Opportunity Nestlé, the world’s largest food and beverage company, has set two bold operational goals for 2030: achieving zero environmental impact and halving its absolute emissions. The company’s plan includes reducing water withdrawals, increasing renewable energy use, innovating sustainable packaging solutions and eliminating landfill waste. GXO is enabling Nestlé to advance quickly toward its targets through a new “Digital Distribution Warehouse of the Future” in the East Midlands, U.K. The facility became fully operational in March 2021, with state-of-the-art sustainability features alongside the latest in automation and robotics. The Solution Outcomes From the start, Nestlé’s 2030 goals factored heavily into GXO’s 100% Significant decrease design. A site-spanning sensor network and analytics suite LED penetration in inventory waste capture real-time data detailing the building’s carbon footprint, such as energy use and temperature controls. This data Nestlé and GXO will continue triggers timely changes to reduce greenhouse gas emissions. to work together to push the GXO is also helping Nestlé on its way to 100% renewable boundaries of innovation and energy sourcing and to meet its key targets with energy-saving automation to capture the value of LED lighting, environmentally friendly ammonia refrigeration, logistics and smarter supply chains air source heat pumps for administration areas and rainwater as a strategy to tackle ambitious Step inside the GXO/Nestlé harvesting. Automation solutions are helping to improve order environmental goals. Warehouse of the Future accuracy and reduce waste-related GHG emissions. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 31

ESG in action: GXO Direct cuts delivery times and emissions for The Beachbody Company The Opportunity The Solution As the pandemic closed gyms and MYXfitness boosted capacity by adding a GXO Direct facility retail outlets, demand soared for the in Atlanta, Georgia, to its existing distribution points. The home delivery of fitness equipment. GXO Direct network helps companies meet rising demand Leading at-home connected through shared warehouse space across 41 U.S. locations. fitness brand MYXfitness from During a challenging time, GXO Direct provided MYXfitness The Beachbody Company saw a with the ideal space, along with industry-leading knowledge, huge surge in its ecommerce technology and a more environmentally friendly process. activity. The company quickly needed additional warehouse GXO Direct facilities enable retailers like MYXfitness to drive space in a strategic location to fewer miles to satisfy customers and avoid the expense and accommodate orders and minimize GHG emissions of expedited air transportation—which is 600% delivery-related GHG emissions. more carbon-intensive than road transport. See how GXO Direct adds muscle to The Beachbody Company’s distribution 32 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

ESG in action: From bulbs to bees: GXO and global fashion retailer design a model for sustainability The Opportunity In the ongoing effort to reduce its impact on the planet, a leading online fashion retailer enlisted GXO subject matter experts and a third-party facilities management team to transform a U.K. distribution site into a sustainability-first operation. The Solution GXO experts helped implement many innovative solutions to cut emissions and conserve resources. On GXO’s long list of initiatives for this customer: replacing halogen lights with energy-efficient LED lights, instituting paperless digital returns, installing a voltage optimization system to reduce consumption, transitioning to pallet wrapping to save on plastic, upgrading the recycling program and installing tap water savers in all sinks. We even helped establish three bee colonies on site in a highly creative approach to enhancing biodiversity. More projects are planned for rainwater harvesting, wind turbines and roof-wide solar panels. Outcomes The work done to date will reduce CO emissions by 3,223 tons and 2 save nearly 3.9 million kWh in electricity per year. The beehives? They’ll produce 200 jars of honey in the spring and summer months. 2021 ESG Report | 33 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 33 HOME E S G HOME E S G ©2022 GXO Logisitcs, Inc.

ESG in action: Purging plastic: GXO helps a telecom leader cut waste in distribution The Opportunity A leading European telecom company made big strides toward its net zero carbon and zero waste operations goal, but plastic use remained an issue. As operator of the company’s distribution centers, GXO helped identify opportunities to reduce single-use plastics (SUPs) and dramatically cut packaging and delivery waste. The Solution GXO analyzed the company’s packaging data to identify SUP use throughout the distribution process. We instituted numerous changes, including swapping single-use bags for reusable totes, replacing traditional plastic tape with a paper solution and securing pallets with banding instead of plastic wrap. Outcomes By the end of 2021, the company reduced its SUP consumption by 61% (62 tons), with an eye toward 61% another 38% reduction in the first quarter of 2022. reduction These efforts will leave only 0.32% of the company’s in SUPs original SUP use, all of it related to meeting health and safety requirements. 34 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME HOME E S G E S G

Reversing Furthermore, 57% of consumers quickly getting products that have a globally say having a sustainable short shelf life back into circulation so returns program is an important factor customers can resell them while they the process: when making a purchase online. are still useful and in demand to end consumers. We also help minimize the rethinking Globally, nearly At GXO, we do everything in our resources needed for shipping and power to minimize returns and their storage. If that’s not possible, we recycle 35% of online associated environmental impact. materials and packaging to reduce the returns Ongoing investments in warehouse amount of waste. As a result, not only do orders are returned, technology help ensure we deliver we reduce our collective environmental The complexities of logistics can the right product to the right impact, but also we help improve multiply significantly when customers consumer on the first attempt. our customers’ profitability. return products back into the supply with around 25% of We use the latest in packaging chain. So can the environmental technology to ensure products ramifications: Returned products returned products are carefully bound and delivered require more transportation, meaning undamaged to consumers. Read more from our more carbon emissions, and unusable then sent to landfill. When returns are unavoidable, we CEO, Malcom Wilson, items become waste in landfills. As carefully manage the entire process, about how GXO is helping many as 35% of goods bought online including inspection, refurbishment unpack the challenge of are returned to sellers each year, and repackaging. We streamline sustainable returns according to a recent GXO reverse logistics with the goal of global survey. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 35

Strategic sustainability Moving reverse logistics forward GXO works with clients across industries to Increasing sustainability in the returns By the numbers: minimizing waste from returns of online orders tailor approaches to the sustainable reuse process requires a team effort. In 2022 and recycling of returned products. We’ve and beyond, GXO aims to collaborate The challenge: made considerable progress in this area, with vendors to incorporate more including recent examples from Europe: sustainable materials into the returns process. This work, along with tools such Globally, nearly 35% of online orders are returned, with around 25% of returned • In the Netherlands, we have worked as industrial bailing presses, will help products then sent to landfill. Beyond generating a significant volume of waste, with Xerox to achieve full visibility create more value for clients and move this cycle of returns represents approximately 8% of the carbon emissions from on all returned products. As a result, us closer to our goal of an 80% reduction ecommerce companies’ supply chains. By helping companies rethink reverse we have found that our solutions in landfill waste by 2025. logistics, GXO is able to get products back out to consumers and minimize waste enable more than 90% of their while reducing climate impact. returns to be re-used or recycled. • In France, GXO’s Satolas-et-Bonce When GXO manages reverse logistics: site partnered with Envie, an organization that supports disadvantaged adults who help 96%+ ~3% <1% sort and repurpose polystyrene of returned of returned items of returned items go to landfill, packaging. To date, they have turned items resold go to charity compared to industry average of 25% 134 cubic meters of polystyrene into reusable plastic, reducing carbon emissions by 54%. This effort won the 2020 Shared Value Creation prize at the Sustainable Industry Awards organized by L’Usine Nouvelle, a French trade publication. • One of our U.K. sites serving a fashion retailer managed the return of more than 11 million products in 2020. Of these, 98% were resold thanks to the efforts of GXO staff to expertly iron, repair and re-package items. 36 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 36 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME HOME E S G E S G

By the numbers: increasing the useful life of consumer electronics and reducing ewaste The challenge: On average, consumers replace their mobile devices every two to three years, and up to one billion handsets ship every year across the world—nearly 275 million smartphones in the U.S. and Western Europe alone. When these devices are damaged or returned in shipping, they can end up in landfills, contributing to the growing problem of global ewaste. In addition, the production of smartphones itself generates additional emissions. When GXO manages reverse logistics: GXO’s warehouses help facilitate the repair of the 5%-10% of handsets sold each year that are damaged and returned to manufacturers so they can be refurbished and enjoy a second life. GXO also helps handle the 10%-20% of handsets that are traded in each year so they can be resold and reused. 2021 ESG Report | 37 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 37 HOME E S G HOME E S G ©2022 GXO Logisitcs, Inc.

Reducing our operational footprint Empowering clients is one aspect of 80% GXO’s sustainability work. The other: setting an example by reducing our own operations 1 global operations using footprint across approximately 900 sites LED lighting by 2025 worldwide. To this end, we work with customers, landlords and vendors on sustainability 80% initiatives that minimize GHG emissions global landfill diversion and waste. Our commitment begins with a 2 rate by 2025 Board invested in transparency and progress. Environmental leads around the world drive site-level programs to meet GXO’s five global targets for becoming a more sustainable 30% enterprise. We are proud of the progress we GHG emissions have already made against our global targets. (Scopes 1 & 2) reduction In many cases, we are on track to not just 3 by 2030 vs. 2019 baseline meet, but also exceed our goals. We also continue to raise our environmental ambitions. For example, GXO plans to 50% broaden our reporting against Scope 3 emissions and to explore the implementation 4 renewable energy of science-based targets. We are also globally by 2030 exploring further opportunities to align with the TCFD Framework. As in previous years, we externally assured our European emissions data this year, and we intend to 100% extend that to all of our emissions data in the future. We look forward to sharing more 5 carbon neutral in future reporting cycles. (Scopes 1 & 2) by 2040 38 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Conserving energy Smart buildings By the numbers: our progress to Lower GHG emissions depend on more energy-efficient GXO is using state-of-the-art technology carbon neutrality operations. For GXO, energy-efficient warehouse solutions to automate energy conservation Driven primarily by our focus on expanding lighting is a top priority. Wherever possible, we are measures in facilities: the use of renewable energy and installing switching to LED lighting products, which are up to 90% • Demand Side Response (DSR) technology LED lighting at our facilities, we are making more efficient than their incandescent counterparts. (U.K.) adjusts a site’s energy consumption progress on reducing our Scope 1 and 2 GHG In Europe, GXO has invested more than €6 million when demand surges on the national grid. emissions, even as our business and footprint in capital expenditures on LED upgrades, with 50% Shutting off commercial refrigeration continue to expand. coming from partnerships with landlords. In the U.S., during times of peak demand also Our global Scope 1 and 2 emissions have our LED project is similarly managed in partnership with reduces costs and CO output. decreased 3.5%, or 13,624 metric tons of facility landlords, including Prologis. To date, 47% of our 2 COe, from our 2019 baseline year, putting floorspace in the U.S. and Europe is covered by energy- • Voltage reduction systems return any 2 efficient LED lighting. unused power to the supply source, us on track to reduce our emissions 30% by which reduces overall energy consumption 2030. Moreover, our emissions intensity by GXO’s Analyze and Act carbon management program for site operations. revenue has decreased 26% since 2019: brings internal teams and external partners together to • PIR sensors enhance the energy efficiency find ways to identify and mitigate energy waste and of LED lighting by keeping lights off when raise energy awareness in all areas of operation across areas are unoccupied and when natural our largest energy-consuming locations in the U.K. lighting is sufficient. Additional conservation measures include: Renewables By the numbers: At sites where GXO holds utility contracts, we are growth in share of investing in renewable energy sources, including renewables in our global solar panels. In the United States, we recently launched 44% energy consumption two sites in New Jersey that are fully powered by solar since 2019 energy. These two installations have the potential to reduce CO emissions by 2,450 metric tons annually— 2 decrease in energy enough to supply electricity to 309 homes for one year. intensity by floorspace In Spain, 100% of our facilities now run on renewable 21% globally since 2019 For more information, please see the energy, including some that generate renewable environmental data performance table. energy from on-site solar panels. 2021 ESG Report | 39 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 39 HOME E S G ©2022 GXO Logisitcs, Inc.

Diverting waste By the numbers: In 2021, GXO diverted 79% of waste generated in its global Waste diverted from landfills (2021) operations. Region by region, we are strengthening our programs. 79% 66% 88% In Europe, we have a strong diversion program, with 88% of waste diverted from landfills. In the Americas and Asia-Pacific, we are Globally Americas and Europe making progress toward our goal with 66% of waste diverted from Asia-Pacific landfills. As a result, we are on track to exceed our 2025 target of 80% landfill diversion globally. Additional planned recycling projects include composting, developing durable pallets from recycled plastics and friendly competitions across sites to incentivize waste diversion. Color-coding to support recycling A GXO site in the U.K. introduced 250 color- coordinated bins to support waste segregation facility- wide, with the potential to divert 84 tons of general waste from landfills. 4400 || 2200221 E1 ESG RSG Reeppoorrtt ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. HOME E S G

Environmental: media links In order of apperance Europe Managing environmental performance High-performing environmental management systems are hallmarks of GXO facilities. All GXO operational policies and Watch: See our new packaging procedures are designed in accordance with ISO standards. machine in action In fact, 28% of GXO sites in the U.S. and European Union are ISO 14001-certified, and our new Trecate, Italy, logistics center aims to be the first LEED v4 Platinum-certified warehouse in the EU. In total, 7 facilities globally currently have LEED or By the numbers: BREEAM sustainability certifications. Progress on our environmental goals At the buildings we own and lease, we address sustainability Watch: Step inside the GXO/Nestlé throughout with features such as: 80% global operations using LED lighting by 2025 Warehouse of the Future 59% to goal • Mains-fed water coolers to reduce plastic water bottle usage and delivery-related emissions 80% global landfill conversion rate by 2025 • Reflective window films to decrease air conditioning use 99% to goal • Electric hand dryers instead of paper towels 30% GHG emissions reduction by 2030 Watch: GXO Direct adds muscle to the • Waterless urinals, water cistern volume reduction and 12% to goal Beachbody Company’s distribution water blade tap attachments to conserve water 50% renewable energy globally by 2030 Alongside these features, we also conduct audits to ensure 14% to goal Read: Malcolm on how GXO is that our sites comply with local environmental regulations, helping unpack the challenge customer expectations and our own stringent standards. of sustainable returns 2021 ESG Report | 41 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 41 HOME E S G ©2022 GXO Logisitcs, Inc.

Social: Changing the game for Return to contents our people and our communities We are building a workplace that cares for and develops our team members while we seek new ways to strengthen the communities in which we live and work. With more than 100,000 team members in operations in 28 countries around the world, we recognize the amazing potential we have to create new opportunities not only for our customers, but also for our colleagues and communities. 43 48 53 Putting safety first Building a culture Supporting and of inclusion developing our people Our social goals impact the following United 57 60 Nations Sustainable Development Goals: Creating the Strengthening future of work our communities 42 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 42 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME HOME E S G E S G

Return to contents Social Putting safety first Safety first is a way of life at GXO. In fact, our core values start with “Be Safe.” That means we do what’s necessary to create safe, supportive environments where team members thrive and finish their workday as healthy as they started it. Throughout 2021, we strengthened efforts to improve dock safety and reduce incidents involving forklifts and other Powered Industrial Trucks (PIT). Safety begins with training and awareness. Through GXO University, all our team members attend and complete safety trainings. We promote a “speak up” culture so our team members feel empowered to bring attention to health and safety issues in their workplace and we conduct regular site audits to ensure safety protocols and regulations are being followed. Reaching for zero with a We also expanded our use of collaborative multinational tech company robots, or cobots, to improve our team For a global technology leader, GXO manages over members’ safety in distribution centers. 60 sites with more than 3,000 employees on five Cobots retrieve, lift and carry goods continents. Across all of these sites, GXO achieved a and shrink-wrap pallets, all of which 2021 global incident rate of 0.34—significantly below reduce walk-time in our facilities and the 5.00 industry average. Many other sites have similarly associated injury risks. Cobots are a perfect impressive success stories; some have gone as many complement to ergonomic wearables and as nine years without a recordable injury. other robotic innovations that minimize injury while making work easier. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 43

COVID-19: Essential support for essential workers Featuring facility deep cleanings, risk mitigation plans and a Business Continuity Response As the pandemic continues to subside, we will continue our strategies for boosting Team, GXO’s initial pandemic response proved remarkably effective. In 2021, GXO added protection and resilience in warehouses and our offices around the globe. GXO sites in the an array of new protective measures to keep workers safe, in addition to existing trainings to U.S. have been following a five-stage phased recovery process based on localized CDC teach employees and managers safe hygiene practices. transmission rate data, immunization rates and positive cases. The process offers flexibility for individual sites to respond based on their local situation and adjust protocols for A prime example: Wearable Microshare social distancing technology sounds alerts when masking, gatherings, distancing, cleaning and more as conditions change. workers come too close to others. Other new resources and support included: • Appreciation pay for approximately 18,500 frontline workers in the U.S. and Canada A shot at winning • 100% paid pandemic sick leave for eligible team members in addition to their In December 2021, GXO started a program to reward workers who did standard annual paid time off their part to help mitigate the spread of COVID-19. Employees who • Personal protective equipment for employees in all sites submitted their vaccination cards were entered in a weekly drawing • Free COVID-19 testing with a chance to receive a $10,000 bonus. • Expanded access to our Employee Assistance Programs, which include counseling See the reactions of some winners. services for mental health issues 44 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

GXO’s Road to Zero At minimum, GXO seeks to maintain an OSHA recordable incident rate that is less than half the published rate for the General Warehousing and Storage sector, based on the “Industry Injury and Illness Data” of the U.S. Bureau 1000 of Labor Statistics. All GXO policies and procedures are based on the principles of ISO9001, 14001 and 45001. Measuring safety in years Even sites that do not have external accreditation are internally audited to ensure high operating standards GXO handles logistics for a specialty chemical company in are maintained. Dallas, Texas. By January 2022, there hadn’t been a safety incident at the facility in more than 1,000 days, or close to three years. Like GXO, the company is dedicated to a culture of safety, which is no surprise considering the company’s products are used to make fire retardants and fire-protection products. Moreover, across Europe GXO has 70 sites in which there But we continue to work toward the highest ambitions for hasn’t been a lost-time incident in more than 1,000 days. In employee safety. Our Road to Zero program aspires to fact, one site has gone over 6,500 days without an incident. zero occupational injuries and illnesses while ensuring the emotional well-being of all GXO team members. All of our sites have Emergency Response Teams (ERTs) that By the numbers: Health and safety immediately provide aid to anyone requiring first-aid, CPR or AED assistance and are trained to assist with emergency evacuation or shelter-in-place responses. 0 work fatalities Road to Zero principles permeate all corporate priorities, globally in 2021 including employee training and the adoption of policies sites in the Americas that won and supportive technologies. We are changing the way 136 safety awards in 2021 we think about accident prevention and encouraging team members to pay attention to their own behaviors— sites in Europe externally accredited all in pursuit of a culture where all team members feel 146 to OHSAS18001 and/or ISO45001 empowered to ensure their own safety and the welfare of others. HOME E S G HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 45

Going for Gold: GXO sites win safety awards The U.K. has 63 sites that have been awarded the Gold Award or higher from RoSPA —the Royal Society for the Prevention of Accidents. Employee engagement and wellness Another important measure of GXO’s success is workforce wellness—physical and mental health and the extent to which all employees feel valued and heard. To maintain accountability, we use scores from regular engagement surveys as key performance indicators for every site and develop action plans to address areas for improvement. We also expanded virtual access to doctors, counselors and premier online programs for reducing stress, eating healthier and improving fitness. Some of our sites include wellness features such as gyms, physical therapy facilities, subsidized cafeterias and social spaces. Throughout the pandemic, GXO has connected employees to counseling and online resources for managing such unique circumstances. For Mental Health Awareness month in the U.K., a mindfulness practitioner was engaged to develop podcast recordings of meditations that can be used at different times of the day. These were then made available to team members through email as well as through posters with QR codes for those without email. 46 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G HOME E S G

ESG in action: Creating a winning culture for a top athletic brand The Opportunity GXO’s Solution Outcomes True to its brand ethos, a leading athletic apparel We partnered with the company to design an efficient warehouse Workers from both the athletic apparel company company wanted its new U.S. distribution center where every worker feels empowered and respected. Intent on and GXO’s gamechangers note the positive to foster a winning culture built around teamwork. advancing inclusivity, site leaders celebrate the importance of the energy in the warehouse and the distinct Creating a sense of belonging was paramount for a individual in the pursuit of common goals. An on-site basketball family-like atmosphere that keeps them workforce representing several different countries court will also help to put this team spirit in the spotlight with excited and engaged. and backgrounds. some friendly competition. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 47

Building a culture of inclusion Innovative solutions require diverse perspectives, from the frontline to the boardroom. Invested leaders At GXO, we’re intentional about creating a respectful, ethical and collaborative workplace In November 2021, GXO named Letitia King James its Vice President of Diversity, Inclusion where every team member belongs. We aim to create a best-in-class experience for all. and Belonging (see her feature in this section). Letitia will oversee our global efforts to build a We champion diversity, inclusion and belonging (DI&B) throughout our daily work and culture where everyone feels a sense of belonging and opportunity. give each person the support needed to thrive. GXO also assembled DI&B Steering Committees in Europe and Americas Asia-Pacific. Within Our values aren’t just words on paper—we aim to live them every day. each, leaders from various business functions promote DI&B efforts and serve as role models. And we’ve taken a range of actions to help bring them to life. One example: employee education events that engender empathy and raise awareness around the unique challenges facing different individuals. Data-based GXO is a data-driven company. We use data to set goals and measure performance across the board—including DI&B. Data helps uncover areas needing more attention or new initiatives. For instance, we have publicly disclosed some of that data in our U.K. Gender Pay Gap Report. We remain focused on pay equity for team members across GXO. Internally, we conduct regular employee surveys for feedback on our inclusive culture. Defining DI&B We also keep a close eye on the marketplace—in and beyond our industry—to ensure our initiatives match or exceed norms. • Diversity recognizes the differences between us and acknowledges that these differences are a valued asset. • Inclusion aims to embrace and involve all people irrespective of race, gender, ability, experiences or need. • Belonging actively nurtures an environment where everyone feels secure, supported and accepted. Underpinning them all: ensuring equitable access to opportunities that help team members realize their full potential. 48 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Meet our new VP: Letitia King James Vice President of Diversity, Inclusion and Belonging “I started in a mail room. My experience as a frontline professional lives with me daily. I knew all I needed was an opportunity and a leader to invest in me as I grew. I want to make sure every GXO gamechanger feels that same sense of possibility. I want everyone to have a voice, to feel valued. And I want this to be a place people call home for the long term.” Fueled by her passion to help people feel a strong sense of connection and belonging, Letitia champions GXO’s Diversity and Inclusion initiatives based on data, best practices and direct feedback from colleagues. She is building and strengthening an inclusive culture that will extend the diversity in GXO’s warehouses through the corporate ranks and into the C-suite. “Inclusivity is one of our core values, so it must be part of our daily routines. I’m very excited because our leadership is 100% committed to creating a best-in-class, inclusive experience that values all voices and backgrounds.“ In November 2021, Letitia King James broke new ground as GXO’s first Vice President “With a company that leads the way in realizing our of Diversity, Inclusion and Belonging. She brings a unique full potential, there is no limit to what we can do.” perspective to the role shaped by a career trajectory she hopes will inspire others. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 49

Diversifying our workforce Building a pipeline of diverse talent is foundational to GXO’s DI&B commitments. We continually enrich our candidate pool through relationships with minority- serving colleges and universities as well as LGBTQ+ allies and organizations supporting veterans and people living with disabilities. Notable relationships include: • A joint venture with Ares, an organization that supports social inclusion in France. Its Log’ins program trains individuals with disabilities in logistics and other fields. • WorkFit in the U.K., which connects our teams with colleagues with Down syndrome. Each colleague has at least two “buddies” on the GXO team and a designated trainer. • The nonprofit Vocational Improvement Program (VIP) in the U.S., which expands our hiring of employees with disabilities for meaningful careers. In 2021, our VIP partnership earned an award from the California Disabilities Association. • Signing the Armed Forces Covenant (U.K.), which demonstrates our proud commitment to being “armed forces-friendly.” Across all sites, we recognize the value veterans and reservists add with their range of transferable skills and qualities. In recognition of our commitments to the armed forces community, GXO received the Bronze Award from the Defence Employer Recognition Scheme (DERS), run by the Ministry of Defence. 50 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 50 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Meanwhile, we’re also accelerating efforts to develop the diverse talent working on our front lines and support their advancement with upskilling and other resources: • In its first year, our Grow at GXO development program for entry-level employees reached 204 sites in the U.S. and Canada, with over 800 signups and more than 100 graduations, along with a 24% promotion rate. • In the U.S., our tuition reimbursement benefit will pay up to $5,250 annually for employees who wish to pursue higher education. • In the U.K., GXO employees received funding and opportunities to pursue advanced degrees through the U.K. Apprenticeship Programme, which recaptured over 60% of the U.K.’s business tax levy for apprenticeship programmes compared to an average of 25% by other U.K. businesses. By the numbers: growing representation in our workforce ~2x more women at VP level and above globally since 2019 increase in underrepresented groups 60%+ by ethnicity at VP level and above in the U.S. since 2019 HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 51

Raising teamwide awareness Expanding our Belonging Network Building an inclusive culture of respect and opportunity GXO’s global Belonging Network will include takes a team effort and intentionality. Everyone needs to employees across functions and geographies who understand and embrace our mission and goals. share a pay-it-forward passion for diversity and inclusion. They will play numerous roles in helping With that in mind, GXO formalizes training around ensure our DI&B commitments shift from aspiration diversity and inclusion to help employees learn about to implementation: others and themselves. Course examples in GXO University include: • Belonging Partners drive country/region-specific • Your Role in Workplace Diversity DI&B activities • Overcoming Your Own Bias • Belonging Administrators contribute to initiative • Understanding Unconscious Bias development, rigorous research and program • Workplace Diversity, Equity and Inclusion support • Diversity Champions are frontline professionals who help DI&B themes gain grassroots traction and support • Inclusion Ambassadors keep diversity top of mind and DI&B goals as focal points of our business strategy In 2022, GXO’s Belonging Network will collaborate to: • Launch Business Resource Groups where employees with similar backgrounds can connect and share their experiences • Provide specialized support to engage and Our Learn Everything About Diversity (LEAD) series empower hourly frontline employees as well as provides toolkits and discussion drivers to help team those in office or managerial roles members appreciate and honor their differences. • Host virtual volunteering events aligned with More tools and resources are in development for 2022 our heritage celebrations, including black history, to help us realize the full potential of our Be Inclusive women’s history, Hispanic heritage, LGBTQ+ core value. Pride and military appreciation months 52 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Supporting and developing our people Compensation and benefits We appreciate that our employees choose to work for GXO from among the many different options available to them inside and outside our industry. We offer competitive wages and a comprehensive suite of benefits to all employees to maintain our position as an employer of choice in the talent marketplace. A number of the benefits we offer were introduced in response to employee feedback, and several exceed local country requirements. In the U.S., examples include flexible pregnancy care accommodations and paid prenatal leave, a family bonding policy for new parents, tuition reimbursement for continuing education, a 401(k) plan with employer contributions and benefits such as diabetes management, supplemental insurance and short-term loans. In Europe, the benefits offered vary by country and are tailored to the needs of the local markets. Examples include comprehensive healthcare and disability insurance, employee assistance programs covering mental, physical and financial well-being, pension plans, profit sharing and We are proud to be a global workforce with strong talent at every level. local and global bonuses structured to offer competitive pay in each country. Today, companies around the world are facing one of the most competitive hiring environments in recent history, which makes it even more important that we are a By the numbers: our benefits company where people can enjoy rewarding careers over the long term. We recruit individuals who are passionate about making a difference at every level. But we recognize that hiring people is just the start. We focus on creating a workplace that allows all team members to thrive and fulfill their potential as true 100% 100% 100% gamechangers. Our diversity, culture of respect and focus on collaboration are core to how we believe a business should be run and key to how we deliver. of full-time employees of full-time employees of full-time employees We offer competitive pay, career development and opportunities for all have access to medical have access to paid have access to tuition team members to achieve their full potential while working in an agile, and mental health benefits family leave reimbursement programs technology-led culture. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 53

Talent and learning Becoming an employer of choice means helping Promoting from within GXO employees pursue and excel in long- We want our gamechangers to thrive at GXO term careers. We pride ourselves on nurturing for the long term. The programs at GXO diverse talent from within and enabling career University and the Empower at GXO program advancement through mentoring, upskilling and support our efforts to develop and grow internal focused training. candidates for open positions. Where possible, Faculty at GXO University—which provides we aim to create opportunities for career anytime, anywhere training—create virtual and progression by promoting from within, both in-person development programs. Employees have upward into management and laterally into other access to four main “colleges” tailored to steps departments that offer more career growth. along their career journey, from hire to retire: Internal promotions enhance the retention of our talented employees and strengthen our • Launch at GXO gets new employees and succession planning process. those expanding their roles off to a strong start with functional and safety training. • Succeed at GXO provides training and tools to help employees improve results in their current roles. Developing people-focused site leaders • Grow at GXO prepares employees for their next role at GXO with career maps, tools and Site Operations Manager is one of GXO’s most critical operational targeted skills development. positions. It requires a passion for logistics and, just as important, • Lead at GXO supports leadership the ability to create and maintain a positive, inclusive work development at all levels—supervisor, environment that boosts productivity and satisfaction. We started manager, executive and more—through the Site Operations Manager Academy in the U.S. to prepare rising dedicated, role-based Academies. operations managers to take on these roles and oversee their own sites. Through a blend of training, coaching and on-the-job Empower at GXO houses our Assessment and experiences, candidates learn a great deal about management Development Center, which helps managers styles and themselves. In 2021, we had 15 graduates. In 2022, and their employees fulfill their potential through we will expand the academy to Europe. performance and talent reviews, development plans and pathways for career growth. 54 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Expanding education for 2022 and beyond To deliver on our promise of career growth potential, we are exploring partnerships with universities and technical institutes to add robotics and engineering courses to GXO University. These courses will enable frontline employees to upskill and shift into more advanced implementation and maintenance roles as our warehouses become more automated. We’re also making our training content more inclusive. Since GXO operates in 28 countries, we must reflect the variety of languages our team members speak. We currently offer key training in multiple languages, including our Code of Business Ethics, and offer site-specific trainings in local languages. We are further expanding that inclusivity globally for GXO University. Training future logistics leaders in Poland Preparing the next wave of workers is key to building a robust talent pipeline. In January 2022, GXO partnered with Kozminski University in Poland to help develop effective programs. The Financial Times recognized Kozminski University as the best business university in Central and Eastern Europe. The school will host a “Career Academy” to educate Poland’s future logistics industry leaders. Designed by GXO’s Operations and Human Resources teams, the Academy combines classes, internships and apprenticeships for experiential learning. 13,000+ Students will acquire the skills needed to thrive in a vital and evolving logistics industry with the possibility of recruitment for work at GXO, which operates 12 logistics centers across the country. 2021 ESG Report | 55 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 55 HOME HOME E S G ©2022 GXO Logisitcs, Inc. E S G

Listening to team member voices GXO’s success as a company depends on the innovation, productivity and engagement of team members at every level. We take seriously our commitment to maintain positive labor relations and make sure team members know we respect their rights, value their contributions and welcome their voices. North America Since our launch in 2021, GXO has established strong, direct relationships with leaders and employees across our U.S. and Canadian sites. Direct engagement, supported by open lines of communication, creates the best opportunities to monitor, address and enhance the employee experience. This includes working conditions, work hours and other issues vital to engagement and performance. We work proactively with team members through roundtables, engagement committees, surveys and site assessments to ensure employee voices are heard. We learn what’s working and what needs improvement and take follow-up actions accordingly. While there are no unions at GXO facilities in North America, we respect our employees’ right to make informed decisions about such issues that are best for themselves and their families. U.K. and Europe 72.8% of our employees in Europe are covered by collective bargaining agreements. We seek to maintain positive relationships with the different union partners and employee representatives in each country with careful attention to the differences in collective bargaining and labor relations practices among them. 56 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G HOME E S G

Creating the future of work Visiting a GXO facility can feel like leaping forward in time. AGVs, for example, enable frontline teams to spend more time Robotic picking arms, automated guided vehicles (AGVs) and on value-added tasks such as improving picking and packing other cutting-edge technologies abound—the very definition accuracy. Sophisticated operating systems help manage the of a well-oiled machine. flow of volume, to support worker efficiency and productivity. In total, 30% of GXO’s warehouse operations are automated or At GXO, technology doesn’t replace employees, it supports tech-led—a percentage six times greater than our competitors’. them. In fact, GXO is growing. For instance, we hired some These advancements help GXO dramatically improve our 10,000 people in the past 12 months. Innovative tools customers’ supply chain efficiency. More importantly, they foster empower workers to boost their overall productivity a more productive, happier and safer workplace for our team while cutting down on manual labor. members. Staff turnover at GXO automated facilities worldwide is about 30% lower than the group average. “The way to look at this is how do we create the workforce of the future. Operating warehouses has become an end-to-end process, and the human- robot interface becomes really critical, if not the critical area.” Sandeep Sakharkar, Chief Information Officer (in Loadstar, December 2021) HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 57

Major upgrades to worker safety High-tech helping hands Among its greatest advantages, advanced automation GXO team members routinely work side-by-side with helps GXO fulfill our commitment to protecting our robotic counterparts called cobots. With complete workforce. For example, using robots to perform knowledge of their space, these high-tech colleagues repeatable movements over sustained periods of time assist with tasks such as locating and pulling items, minimizes the risk of repetitive strain. validating inventory and transporting goods to the Other notable examples of technology-aided safety appropriate packing stations. improvements include: How are they doing? • Collaborative robots, or cobots, reduce walk-time in To date, cobots in GXO warehouses our facilities, which reduces the risk of injury. have doubled productivity rates and • Ergonomic, wearable barcode scanners won’t interfere improved accuracy by 50%. with employees’ natural motion so they can comfortably get more done—a significant upgrade over earlier handheld scanner technology. • Exoskeletons provide chest and back support to With innovation comes opportunity reduce lower back fatigue and injuries. • Microshare wearables protect workers during At GXO, advanced technology brings new opportunities COVID-19 by sounding alerts when social distancing for team members to grow and expand their careers. protocols are violated. This innovation earned the Employees working in fully automated sites are prestigious Il Logistico dell’Anno prize in Italy. multi-skilled and receive training for various positions. Given the continued demand for tech talent, GXO will look internally to train employees for essential roles related to configuring and maintaining robotics-enabled warehouses. GXO also uses robotics and virtual reality to help train seasonal workers quickly while enhancing the employee experience and improving accuracy. In 2021, some sites reduced training time for picking by approximately 80% and time to competency by more than 60% after introducing cobots. 58 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

ESG in action: Empowering the Dunelm Group to work safer, simpler and faster The Opportunity Benefits of Housewares retailer Dunelm Group operates 175 stores across the U.K. along with an online ecommerce store. With a spike in online automation sales and more growth forecasted, Dunelm needed to increase capacity for its home delivery fulfillment operations. Paramount to any at a glance enhancement: improving worker safety, satisfaction and efficiency. The Solution GXO introduced a host of innovations to increase Dunelm’s throughput and improve delivery efficiency from its new Stoke-on- 4-6x Trent facility. Team members now benefit from the latest automated advancements in logistics. productivity improvement For instance, Cognex machine vision systems help workers reduce with employees supported by errors by watching for items that may be damaged or have other goods-to-person systems issues. Ergonomic ProGlove wireless wearable barcode scanners empower team members to work “hands-free” and increase productivity by up to 10% with less effort and strain. GXO also trained our Dunelm colleagues on the latest techniques for fulfilling online 2x orders, packing them efficiently and handing them off to carriers for delivery. productivity improvement These innovations debuted within the facility’s first three months of with employees who work operation. Dunelm and GXO anticipate even greater automation- alongside cobots driven improvements in the coming year across worker safety, satisfaction and productivity metrics. HOME ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. 2200221 E1 ESG RSG Reeppoorrt t | | 5959 HOME E S G E S G

Strengthening our communities Our communities are home to our customers, our team members and our families. We take great pride in contributing to our communities and empowering our employees to make a difference wherever we operate. For example, gamechangers from more than 70 sites in eight countries stepped up to make the 2021 holiday season a memorable one for countless families. As part of GXO’s inaugural United In Giving campaign, they collected and donated 10 tons of clothes, toys and necessities and several tons of food to local organizations and charities. In addition to corporate giving, both monetary and in-kind, we organize employee volunteering and partner with organizations to strengthen our vital community connections. Some of our local and national initiatives included: • Collecting for local food banks • Fundraising for the Komen Foundation for breast cancer support • Providing scholarships through Junior Achievement in Columbus, Ohio, to introduce young people to careers in logistics • Volunteering with Habitat for Humanity to build homes in local communities Click the icons below to see more of our work in our communities on our social media 6600 || 2200221 E1 ESG RSG Reeppoorrtt ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. HOME E S G

Social: media links In order of appearance Watch: A shot at winning Read: Gender Pay Gap Report See more of our work on social media Facebook Twitter LinkedIn YouTube Instagram HOME E S G ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. 2200221 E1 ESG RSG Reeppoorrt t | | 6611

Return to contents Governance: Doing business the right way Throughout our organization and across more than 900 warehouses around the world, our values and our commitment to ESG guide the decisions we make. Our strong governance structure and practices help bring these values and commitments to life for our more than 100,000 team members worldwide, as well as for our shareholders, customers and business partners. 63 64 70 Living our values Leading responsibly Making the right decisions every day Our focus on good governance impacts the following United Nations Sustainable Development Goals: 62 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 62 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME HOME E S G E S G

Return to contents Living our values Strong governance strengthens all aspects of our values and ESG efforts, including our ability to sustain safe workplaces, delight our customers, foster the success of our team members, reduce environmental impacts and ensure we continue to do business the right way. This means not only ensuring compliance with laws, rules and regulations, but also upholding our values, our Code of Business Ethics and our voluntary commitments. Highlights of our governance approach include: Board independence, diversity Executive-level commitment Robust risk management Individual Risk-driven third-party and accountability for ESG and role modeling practices accountability due diligence As a reflection of its importance We recognize that doing We are focused on embedding At GXO, upholding our We hold our partners and to GXO, ESG is overseen by business the right way begins ESG considerations—both risks company values is everyone’s vendors to the same high the Nominating, Corporate with the commitment and and opportunities—into our responsibility. Through our standards to which we hold Governance and Sustainability actions of our leaders. broader risk management and Code of Business Ethics, ourselves—to be truthful, honest Committee of the Board of Role modeling of our business planning processes. company policies and related and ethical in business dealings Directors, which engages values is a central tenet of our For example, the Global Risk training programs, employees and to abide by all applicable with management on a expectations for our leaders. Committee, chaired by our understand how to embed laws and regulations. broad range of ESG strategy, But we are taking this a step Chief Compliance and ESG our values and expectations GXO’s tiered, risk-based risks and opportunities. Our further: We are developing an Officer, brings together cross- into their day-to-day decision- Third-Party Due Diligence eight-member Board includes ESG scorecard tied to GXO’s functional leaders, including making. We also continue to process, overseen by the six independent members. most important ESG issues risk and audit, to understand build our “speak up” culture Ethics and Compliance team, Fifty percent of our board that we intend to incorporate emerging global risks and to encourage employees to applies to all third parties, members are women. into our management address them through embrace the right and the including vendors, agents performance evaluation. enterprise risk management responsibility to report any and consultants. systems and processes. concerns regarding ethical ESG risks will be specifically issues or potential violations of addressed on an ongoing our values or policies without basis as part of this process. fear of retaliation. We describe our commitment to strong governance and how this helps us achieve our business objectives and live our values in the sections that follow. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 63

Leading responsibly As a global leader in our industry, we have a responsibility The composition of the Board also mirrors our commitment GXO is focused on building a Board that is to set an example that is beyond reproach. This goes to the to doing business the right way. The Board’s current knowledgeable about ESG issues. The Chair of heart of who we are as a company and as individuals. leadership structure reflects: GXO’s Nominating, Corporate Governance and Our commitment to leading responsibly begins at the • A strong, independent and highly experienced lead Sustainability Committee, Joli Gross, brings extensive top of our organization. independent director with well-defined responsibilities ESG leadership experience. In addition, the Chief that support the Board’s oversight responsibilities Compliance and ESG Officer provides regular updates Our Board to the Board to familiarize Directors with ESG concepts • A robust committee structure consisting of three and trends and potential implications for GXO’s GXO’s Board of Directors oversees the company’s standing committees composed entirely of broader business strategy. management and ensures that appropriate procedures and independent directors with oversight of various types The composition of each committee is reviewed controls are in place covering management’s activities in of risks, including ESG-related risks annually to ensure that members are qualified in operating the company responsibly. • Leaders with deep experience and expertise across accordance with applicable laws, rules and regulations. The Board has adopted Corporate Governance Guidelines the industry and specific topic areas, from a variety that provide a framework for the effective governance of backgrounds of the company. The guidelines address matters such We seek board members with high professional standards as the respective roles and responsibilities of the Board who have our shareholders’ and other stakeholder interests and management, the Board’s leadership structure, the in mind. To that end, we believe it is important to, among responsibilities of the lead independent director and vice other guidelines, limit participation on other companies’ chair, director independence, Board membership criteria, boards and monitor transactions with related parties. Board committees and Board and management evaluation. 64 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Learn more about how we do what we do Corporate Governance Guidelines Nominating, Corporate Governance and Sustainability Committee Charter Audit Committee Charter An independent and diverse Board Compensation Committee Charter When selecting nominees, GXO’s Board values experience, integrity, Read our policies independence and diversity. The current composition of our Board Meet our Board members reflects those ongoing efforts and the continued importance of diversity and independence. 6 of 8 members are independent From Joli Gross, the Chair of the Board’s Nominating, 100% of standing committee Corporate Governance and Sustainability Committee members are independent “There are so many opportunities for GXO when it comes to sustainability. This will 50% of members are women help us not only make the world a better place, but also drive value for our investors, engage our customers more deeply and retain our employees, all integral to our Read more about our Board in our 2021 Proxy Statement ability to deliver as an industry leader in third-party logistics.” HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 65

Board oversight of ESG issues and strategy ESG is a top priority for our Board. The Nominating, Corporate Governance and Sustainability Committee plays the central role in supporting GXO’s Board on ESG strategy as well as on broader corporate governance matters. As with other board-level Committees, members of the Nominating, Governance and Sustainability Committee are independent. The Nominating, Corporate Governance and Sustainability Committee supports the Board in its oversight of GXO’s purpose-driven sustainability and ESG-related strategies and policies, performance and external disclosures, systems for evaluating ESG-related material risks and opportunities and GXO’s approach to shareholder and stakeholder engagement regarding sustainability and ESG matters. Communicate Strategize Align Oversee and Execute • Onsite ESG Champions • Chief ESG Executive • Senior Management • Executive ESG Committee • Functional Leaders • ESG Strategic Leaders • Key Stakeholders • Nominating, Corporate • Site Leaders • E, S & G Working Governance and Groups Sustainability Committee 66 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

The Nominating, Corporate Governance and Our leadership team Meet our leadership team Sustainability Committee meets several times per year to address not only ESG matters, but also Our values are the bedrock of our approach to broader corporate governance guidelines, board and leadership as a company. Our executives foster a committee qualifications and board evaluations. Our company culture that is safe and inclusive, with a Chief Compliance and ESG Officer, supported by focus on innovation, making an impact and delivering other leaders, regularly presents to this Committee on results. Our leadership seeks to demonstrate through ESG-related issues. Executive leaders and board words and actions that GXO is laser-focused on doing members also receive regular updates and discuss business the right way. ESG at monthly operational reviews. The Nominating, Corporate Governance and Our company is led by highly experienced executives Sustainability Committee also coordinates with who are recognized as leading practitioners in their the other Board committees on broader issues respective fields. Our leadership team brings a as needed. This includes the Audit Committee, diversity of perspectives and a wealth of experience which oversees GXO’s systems of internal controls, within and outside GXO. compliance with legal and regulatory requirements Our current executive team offers many years of and monitoring of major financial risks, which often collective experience. Many have risen through the includes ESG-relevant issues. The Nominating, ranks of GXO’s predecessor companies, highlighting Corporate Governance and Sustainability Committee GXO’s commitment to internal growth and also coordinates as needed with the Compensation development. Our commitment to diversity and Committee, which oversees executive and director the advancement of those from underrepresented compensation and supports alignment with groups into management will continue in the broader company goals and incentives, years ahead. including ESG-related incentives. Management at a glance, VP level and above ~2x increase in women’s representation globally since 2019 60%+ increase in underrepresented ethnicities in the U.S. since 2019 HOME E S G ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. 2200221 E1 ESG RSG Reeppoorrt t | | 6767

Leading on ESG Our executive team defines the direction of business strategy with oversight by the Board. The company’s ESG strategy and reporting are managed by the Chief Compliance and ESG Officer with oversight by the Executive ESG Committee and the Nominating, Governance and Sustainability Committee of the Board of Directors, which provide guidance on ESG-related matters and support coordination across other Committees with responsibility for critical ESG-relevant activities. The Executive ESG Committee helps to define strategic priorities related to ESG issues across GXO, from climate change to health and safety to diversity. The committee also works with functional leadership and working groups focused on a range of ESG issues and supports development and execution of strategic initiatives on the ground. ESG champions across global sites will also provide input and support implementation of ESG efforts. The ESG Committee will meet quarterly. By focusing on operations, products, partners and policy, this team strives to work across functions, regions and facilities to reduce our company’s environmental impact while capturing broader environmental, social and economic opportunities for our customers, team members and communities worldwide. For guidance on globally changing dynamics, this team engages with experts around the world, including internal policy, technology and environmental professionals as well as internal and external subject matter experts. As a company, we have implemented extensive policies and practices that underpin our commitment to doing business the right way. Furthermore, we recognize that aligning incentives and performance to ESG priorities can further strengthen our ability to bring this commitment to life. GXO’s leadership and the Board have expressed their intention to integrate ESG-related performance into compensation and develop an ESG scorecard that will play an important role in this alignment. 68 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME HOME E S G E S G

Risk management While management is responsible for assessing then implement these initiatives, with the owners and managing GXO’s exposure to various providing regular progress updates to the GRC. risks, the Board of Directors has overall risk Risk owners provide regular updates on progress management oversight responsibility. Our Board against action plans to the GRC. committees assist the Board with this oversight responsibility by reviewing specific risk areas. For climate risks specifically, the risk team will assess Within GXO, the Global Risk Committee (GRC), property risks annually to estimate the probable chaired by the Chief Compliance and ESG Officer, impact from hazards such as hurricanes, floods and shapes GXO’s enterprise risk management fires, which are increasing in frequency and severity (ERM) approach. The GRC seeks to develop due to climate change. and advance strategies to identify and manage GXO’s business continuity standards identify the enterprise risk, including driving alignment baseline requirements for implementing disaster across the organization to address ESG risks and recovery and enhancing overall resilience to help opportunities. ensure our preparedness and capability of recovery The committee includes all members of our in the event of a significant business disruption that executive team as well as other senior functional may affect our ability to meet customer expectations. leaders from across the organization, including At the facility level, business groups and site those within Environmental, Health and Safety, managers have their own processes and a business Legal, Investor Relations, Finance, Corporate resilience plan. These plans are prepared with the Communications, Human Resources, Information support of local leaders and management and are Security and Operations. submitted for regular audits and assessments. The GRC has identified areas of risk as a When risks are identified, the committee proposes foundation to its ERM framework, and additional approaches to mitigate, transfer, accept or control data and information on these risks will be added the identified risks and opportunities. We reference through surveys and assessments. Risk areas will our ERM risk prioritization criteria in the context of be assigned an owner, a senior leader responsible business continuity and service resilience, which for action plans to address relevant risks and include the scope of impact (e.g., reputational, opportunities that could have substantive regulatory and cost), potential return on financial or strategic impact on the organization. investment and time and resources required Managers and others across the organization will to implement changes. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 69

Making the right decisions every day Our culture at GXO is about achieving results through Globally, the Ethics and Compliance team promotes By the numbers teamwork. We help each other succeed. We’re proud to the Code internally and, in partnership with Human support our customers, partners and team members. Resources, ensures that all employees receive, 100% We’re fair, respectful, lawful and honest. understand and agree in writing to abide by the of employees receive and are required Shared values Code and take part in relevant training programs. to sign GXO’s Code of Business Ethics All GXO team members are expected to comply with 5 hours We expect anyone working for, with or on behalf of GXO to the Code, all company policies and applicable laws, of training on average per employee related share our values—and make the right decisions every day. rules and regulations, and we expect our leaders to to Annual Compliance Education (ACE) We see a shared responsibility to: model our values and professional standards. Team members are required to acknowledge the Code • Act ethically and with integrity in all our business dealings and participate in annual training, which includes GXO’s global risk-based compliance program • Treat each other with dignity and respect topics such as ethics, building a respectful is built on a foundation of ethical culture. workforce and anti-corruption. GXO’s Annual • Comply with all applicable policies, laws and regulations Compliance Education (ACE) program includes • Uphold our commitment to our Code of Business up to five hours of training per person each year, Ethics (our “Code”) tailored to role and location. Our values and our commitment to making the right decisions Suspected violations of our code, policies or Continuous Improvement every day are embodied in our Code of Business Ethics, a guide other regulatory requirements are subject to for GXO employees to understand how our day-to-day decisions comprehensive investigation in line with our Speaking Up and Investigations support our ability to fulfill our responsibilities to each other, to internal compliance framework and subsequent our customers, investors and communities and to society. appropriate action, up to and including termination Auditing, Testing and Monitoring of employment. In addition to the Code, we have policies and professional Risk Assessment and Management standards that apply to every employee of GXO and to third Compliance with the Code of Business Ethics and parties acting on our behalf. Some of the topics addressed by supporting processes is reported regularly to the Training, Communication and Engagement our Code and supporting policies include anti-corruption and Audit Committee, which also has the responsibility bribery, human rights and anti-discrimination, workplace safety, to review and approve requests for waivers and Policies and Procedures (Code of Business Ethics) confidentiality and protection of company assets, conflict of promptly disclose any waivers that are granted interest, anti-competitive practices, information security and as required by law, regulation or applicable Ethical culture personal investments. listing standards. 70 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Speak up culture We seek to foster a “speak up” culture at GXO. Every employee has the We take every concern seriously and have established a clear framework and process for addressing them. By the numbers responsibility to raise questions or concerns about values, ethics or other GXO maintains an enterprise-wide investigative program that seeks to protect the interests of the company standards without fear of retaliation. Employees are encouraged to voice and its shareholders by preventing, detecting and investigating potential misconduct and violations. The concerns to a supervisor or a representative of the Human Resources and/ internal investigations process is centrally overseen by GXO’s Ethics & Compliance team and is supported or ethics and compliance departments. But they have many other places to by a network of more than 200 cross-functional employees. This process is designed to facilitate the delivery turn if they prefer a different route. of clear findings, conclusions and investigative outcomes, which are shared to drive proactive and impactful In addition to many internal avenues to raise questions and concerns, risk management and facilitate effective information sharing with internal partners and stakeholders across GXO offers additional channels for employees and even third parties to all investigative functions. raise concerns in a confidential manner and, where legally permissible, All concerns are fully investigated and an action plan is implemented and tracked depending on the anonymously. These include: outcome. Each report is forwarded to an appropriate member of management, Human Resources or 1 Ethics Point, www.GXO.ethicspoint.com, Ethics & Compliance for prompt review. GXO evaluates each report carefully to determine whether further a website administered by a third party and investigation or action is necessary. Employees are required to cooperate fully with company investigations. available 24 hours a day, 7 days a week. We utilize an independent third-party system to manage concerns (Ethics Point) and track multiple metrics that are reported to leadership and the Audit Committee and external auditors, as appropriate. We also 2 A toll-free telephone service operated by an independent have an internal Ethics & Compliance quality assurance and governance process in collaboration with key third party 24 hours a day, 7 days a week. Local numbers functions, including Human Resources, Finance, Safety and Security. with translation services are provided in all 28 countries in which we operate. 3 A dedicated email account at GXO, monitored Ethics at GXO by GXO’s Ethics & Compliance Team. Learn more 4 about how Code of Business Ethics Direct reporting to the GXO Ethics Team. we do what we do 5 Read our policies Internal reporting to HR and business leaders HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 71

Ethical business practices Our Code of Business Ethics, combined All employees are required to read and with supporting policies, outlines our certify that they will comply with our Code. expectations for ethical business practices, GXO employees are asked to recertify to the from anti-corruption to international trade to Code following annual training and receive conflict of interest. additional compliance training relevant to role and location. GXO wins and awards business based on merit. Policies related to ethical business standards GXO does not tolerate bribery or corruption in are owned by the Ethics and Compliance any form, directly or indirectly, whether doing team with oversight from the Chief Legal business with a government entity, commercial Officer and Board-level Committees. The enterprise or individual. Employees may Chief Compliance and ESG Officer reports not authorize, offer to pay or accept bribes, on performance against these policies to kickbacks or gratuities; this includes offering or GXO management and the Board. making payments to third parties in situations where there is reason to believe that even Employees have a responsibility to report a portion of the payment will be offered to concerns or potential violations of our someone else for an improper purpose. policies. Violations may result in serious In addition, the company does not give or disciplinary action, up to and including receive business gifts of products, services or termination of employment. Posters hang in entertainment to improperly influence business every GXO location reminding employees decisions. Our policies outline clear guidelines of their responsibility to voice any concerns for gifts and entertainment that all employees and listing all the reporting mechanisms are required to follow. available to them. These posters are As a global company, GXO complies with all translated into multiple languages laws and regulations governing international and use local phone numbers for easy trade. GXO does not permit the export or toll-free dialing. import of goods, services or data without GXO policy strictly prohibits retaliation appropriate authorization. We prohibit doing against any employee for reporting in line business with or for any embargoed or with these policies, as outlined under the sanctioned country or any party subject to “speak up” section above. debarment or economic sanctions without appropriate government authorization. 72 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Human rights and labor GXO is committed to conducting business We are focused on providing a work We also include human rights in risk assessments that we undertake. For example, in in a manner that respects the human environment that is free of discrimination, 2019-2020, we undertook a risk mapping exercise under France’s Duty of Vigilance law rights and dignity of all people—from harassment and retaliation and we have a to look at risks in our workforce and supply chain and the impact of our operations on our employees and our suppliers to our zero-tolerance policy against such acts. All human rights, health and safety and the environment. A wide range of human rights risk customers and our communities. acts of unlawful discrimination against and areas was examined, including child labor and forced or compulsory labor; risks of non- harassment of or against our job applicants, compliance with fair working conditions, such as illegal or undocumented employment, We foster a work environment where employees or interns by another employee, or freedom of association; risks of discrimination and harassment; and risks of modern respect and diversity are valued and vendor, customer or any third party are slavery in customers’ supply chains. The mapping exercise was then used to develop a safety is paramount. We comply with all prohibited and will result in disciplinary Vigilance Plan that not only identified the key risks across our European operations, but laws that govern fair employment and action up to and including termination also described our mitigation actions to prevent and mitigate these risks. The Plan is labor practices, including the freedom of employment. considered a living document that will be updated over time, including addressing new of association and collective bargaining. We support government policies in the potential risks GXO faces as an independent organization. We do not tolerate any conduct that U.S. and other countries that combat human Employees have a responsibility to report concerns or potential violations of our policies contributes to, encourages or facilitates trafficking and forced labor, and we expect related to human rights and labor. Violations of our Code and policies may result in human trafficking, child labor, forced or our customers, subcontractors and suppliers serious disciplinary action, up to and including termination of employment. compulsory labor or any other human to respect human rights laws. rights abuses. GXO policy prohibits retaliation against any employee for reporting in line with these policies, as outlined under the “speak up” section above. We intend to publish a Modern Slavery and Human Trafficking Statement later this year. Code of Business Ethics Third-Party Due Dilligence No Discrimination Policy Read our policies Human Trafficking Policy HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 73

Supply chain and third parties The appropriate due diligence procedures must be completed before any We seek to work with third parties that share our values and new third party will be authorized to work with GXO and performed regularly commitment to doing business the right way. We hold our depending on the level of risk as defined in the policy. All suppliers are suppliers, partners and other third parties to the same high subject to standard due diligence, with enhanced due diligence based on risk standards that we hold ourselves. assessment. Approvals for certain higher-risk third parties require management and Board review. GXO’s Third Party Due Diligence process is designed To support implementation of the policy, team members receive training related to detect and prevent risks, including those related to to managing third-party risks tailored to role and responsibilities, as outlined in anticorruption and trade compliance. This process applies our broader risk management framework and processes. to any relationship with a third party, which includes but is not limited to vendors, customers, agents, contractors and Looking forward, we are seeking new opportunities to engage our suppliers to consultants. The policy is managed by the Chief Compliance work toward shared ESG priorities and goals. For example, we are expanding and ESG Officer with oversight from the Audit Committee our Supplier Code of Conduct, which clearly communicates the expectations and support of diverse executive committees, including the we have of our suppliers and subcontractors regarding, among other issues, Global Risk Committee. The Ethics and Compliance team human rights, working conditions, health and safety, the environment, trade monitors compliance with this process, which is subject to compliance, anticorruption and business ethics. review by internal audit. GXO’s due diligence process is risk-based and is informed of our suppliers are by the expectations of applicable regulatory authorities By the numbers subject to standard and internal risk assessments and mapping. For example, 100% third-party due diligence we mapped specific risks across our supply chain as part our Duty of Vigilance Plan, required under French law. This included identifying the main risks not only within our operations and wider industry, but also those of our suppliers. Learn more about how we do what we do We’ve developed several due diligence initiatives related Code of Conflict of to this commitment, which vary according to a number of Business Ethics Interest Policy risk factors, including the country in which, for example, suppliers provide goods and services to GXO, and according to the categories of partners. We pay particular attention to Third-Party Read our countries exposed to elevated levels of potential corruption Due Diligence policies and to the agency partners who supply certain of our workers, among other factors. 7474 || 2200221 E1 ESG RSG Reeppoorrtt ©©2200222 G2 GXXO LO Looggiissiittccss, I, Inncc.. HOME E S G HOME E S G

Tax and transparency GXO acts responsibly and with integrity in all tax Learn more about how we do what we do matters. We are committed to paying the right amount of tax in the right place at the right time. U.K. Tax Strategy GXO Annual Report Read our policies We hire qualified tax personnel and engage with tax advisors as appropriate. GXO does not tolerate tax evasion, nor do we tolerate the facilitation of tax evasion by others. GXO maintains open and transparent relationships with all relevant tax authorities. Our business activities around the world incur a substantial amount and variety of taxes. GXO pays corporate income taxes, customs duties, excise taxes, stamp duties, employment taxes and many other business taxes in all jurisdictions where applicable. In addition, GXO collects and pays employee taxes and indirect taxes: for example, of our suppliers are Value-Added Tax (VAT), fuel taxes and truck taxes. subject to standard third-party due diligence GXO seeks to comply with all tax rules and regulations on a worldwide basis, and our tax affairs are aligned with and appropriate for our commercial business activities and substantive transactions, such as acquisitions and divestments. Tax is inherently complex, and where the tax treatment of a particular transaction or activity is unclear, we seek tax advice and follow the generally understood interpretation of tax law. GXO maintains robust and appropriate internal policies and procedures to support our tax control framework. Given the local/regional nature of tax laws, direct responsibility for tax matters varies by location. Ultimate responsibility for GXO’s tax policy globally rests with GXO’s Chief Financial Officer and Senior Vice President of Tax. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 75

Protecting privacy and information security Data privacy and information security are top business contractors to comply with all applicable privacy regulations Information Officer (CIO). Together, they are responsible for priorities for GXO. and we regularly monitor their compliance. network security, engineering processes and continuous As a company with a focus on technology, automation and We track our performance in this regard through monitoring improvement across information security domains in support innovation, we recognize that our ability to secure systems and and auditing our procedures for the management of personal of GXO’s business strategies and priorities. The team data is paramount to our ability to deliver for our customers data, the logging of any data security incidents (whether or partners with leaders from across our global regions and and employees. GXO rigorously protects our confidential and not they involve personal data), working with our country-level provides reports to the Board of Directors. proprietary information from unauthorized use or disclosure. coordinators to understand any country-specific differences Our information security leader serves on GXO’s Global This includes information about the company’s strategies and and issues and logging subject access requests (the exercise Risk Committee (GRC), which monitors and addresses the operations, business plans, employees, customers, suppliers, by data subjects of their rights under applicable privacy laws). company’s most significant global risks. To support the financial status, trade secrets or any other information Working across all levels of the organization, from the Board to identification and management of information security unavailable to the public. leadership and other employees, GXO is focused on meeting risks, the CISO meets monthly with broader information Our data privacy and protection approach is guided by our our information security obligations while integrating best technology leadership, including the CIO and executives own Data Protection Policy as well as the EU Data Retention practices into the way we do business. As we further our use of from the infrastructure team. The information security team Policy and the General Data Protection Regulation (GDPR) automation and expand our global footprint, we will continue also participates in the monthly executive operating review Privacy Policy. A cross-functional GXO Privacy Team works to improve our information security systems and processes to and reports regularly to the Audit Committee. with country-level coordinators to identify requirements, set keep pace with these changes and new system demands. policies and organize regular communication and training for Our global information security team is led by our Chief employees on privacy issues. GXO also requires suppliers and Information Security Officer (CISO), who reports to our Chief 76 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

To help employees understand and fulfill their responsibility to keep information secure, By the numbers the information security team provides awareness and training across various domains and through multiple channels. Dedicated staff tailor a mix of formal training, awareness campaigns and materials, phishing tests and other efforts based on location, level of of employees with network access interaction with systems and role, among other factors. The team focuses on different 100% expected to participate in regular delivery models, including gamification, to increase the relevance of and engagement information security training with the training content. Contractors are also made aware of and are expected to comply with GXO’s information security policies. We draw on best practices from multiple frameworks to define the elements most relevant to GXO’s business. We have a harmonized set of controls that integrates guidance from the EU’s GDPR and aligns with the U.S. National Institute of Standards and Technology’s (NIST) cybersecurity framework, among others. GXO’s controls and operating processes align to ISO27001 certification, and systems are maintained in line with this standard. In addition, we assess our practices against industry-leading frameworks, including the Internet Security Forum (ISF), to confirm our systems meet our needs and discover opportunities to improve. Our program includes multiple components that act as an additional line of defense, including regular testing, tabletop exercises, cybersecurity exercises, audit and maintenance, awareness and training and risk evaluation and controls. In 2021, we strengthened our efforts to enable a more holistic and integrated approach Learn more about how we do what we do to information security. At the beginning of the year, we also conducted a program maturity self-assessment against the NIST Cybersecurity Framework (CSF) and scored across domains to identify, analyze and enhance cybersecurity capabilities. The process Code of Business Ethics Third-Party Due Dilligence reviewed over 30 policies and procedures, included multiple stakeholder interviews and resulted in an analysis and multi-year roadmap for improvement. We will continue to refine and align our framework to ensure our program continues to integrate the best Data Protection Policy GDPR Privacy Policy guidance available. We have built-in escalation paths with dedicated leaders and legal partners in case EU Data Retention Policy incidents arise within the course of standard operations. GXO reports material data Read our policies privacy and information security breaches in our annual 10-K report. In 2021, there were none. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 77

Governance: media links Web links Ethics at GXO Ethicspoint Our Board/Leadership Team Our Values Read our policies Policy, charter and guideline links Audit Committee Charter GXO Annual Report Code of Business Ethics Human Trafficking Policy Compensation Committee Charter No Discrimination Policy Conflict of Interest Policy Nominating, Governance and Sustainability Committee Charter Corporate Governance Guidelines Proxy Statement Data Protection Policy Third-Party Due Dilligence EU Data Retention Policy U.K. Tax Strategy GDPR Privacy Policy 78 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Return to contents Transparency and accountability 80 About this report 81 Data and reporting 2021 ESG Report | 79 ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 79 HOMEHOME EE SS GG ©2022 GXO Logisitcs, Inc.

Transparency and About this report accountability The GXO 2021 ESG Report details the company’s objectives and progress in the areas of environmental sustainability, social initiatives and governance performance. Data about financial performance is not included in the report, but may be found on gxo.com under the “Investors” tab and in GXO’s public filings with the U.S. Securities and Exchange Commission. The information contained in this document reflects the global activities and initiatives undertaken by GXO as the logistics division of XPO from January 1 – August 1, 2021, and by GXO as an independent company from August 2 – December 31, 2021. The company intends to continue issuing updated ESG reports annually. This report has been prepared in accordance with the Global Reporting Initiative (GRI), using the latest standards released in October 2021. As our reporting becomes increasingly robust, we will seek to expand the detail on our disclosures including aligning with additional standards and frameworks, such as SASB and TCFD. For questions about this report, please contact the GXO ESG Team at esg@gxo.com. 80 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. 80 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Transparency and accountability GRI Content Index GRI Content Index Statement of use GXO Logistics, Inc. has reported in accordance with the GRI Standards for the period January 1, 2021-December 31, 2021. GRI 1 used GRI 1: Foundation 2021 Applicable GRI Sector Standard(s) None GRI Standard Disclosure Location/response/comment General disclosures GXO Logistics, Inc. 2—1 Organizational details Greenwich, CT, United States 2021 Form 10-K, pp.1-2 2—2 Entities included in the organization’s sustainability GXO’s 2021 ESG Report covers all of the entities included in its reporting consolidated financial reporting. 2—3 Reporting period, frequency and contact point About this report, pg. 80 This report was published in April 2022. 2—4 Restatements of information None GRI 2: General Disclosures 2021 Scope 1 and Scope 2 emissions data from Europe was audited 2—5 External assurance on a sample basis by external auditor Grant Thornton using a cross-section of data from contributing countries to limited assurance in line with the ISAE 3000 standard. Statement of assurance from Grant Thornton. 2—6 Activities, value chain and other business relationships What we do, pg. 9 2021 Form 10-K, pp.3-6 2—7 Employees Performance Data, pg. 92 2—8 Workers who are not employees Performance Data, pg. 92 HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 81

GRI Standard Disclosure Location/response/comment Living our values, pg. 63 Leading Responsibly, pp. 64-69 2—9 Governance structure and composition 2021 Proxy Statement, Directors & Committees of the Board and Committee Membership Corporate Governance Committee Composition Leadership Team 2—10 Nomination and selection of the highest governance body 2021 Proxy Statement, Director Selection Process Nominating, Corporate Governance and Sustainability Committee 2—11 Chair of the highest governance body 2021 Proxy Statement, Director & Role of the Board and Board Leadership Structure Leadership team 2—12 Role of the highest governance body in overseeing the Living our values, pg. 63 management of impacts Leading Responsibly, pp. 64-69 Nominating, Corporate Governance and Sustainability Committee 2—13 Delegation of responsibility for managing impacts Leading Responsibly, pp. 64-69 GRI 2: General Disclosures 2021 Role of the highest governance body in sustainability Our ESG priorities, pp. 20-21 2—14 reporting Leading Responsibly, pp. 64-69 Corporate Governance Guidelines, pp.2-3 2—15 Conflicts of interest 2021 Proxy Statement, Directors 2021 Form 10-K, pp. 19 2—16 Communication of critical concerns Leading Responsibly, pp. 64-69 Qualitative information only 2—17 Collective knowledge of the highest governance body Leading Responsibly, pp. 64-69 2—18 Evaluation of the performance of the highest governance Corporate Governance Guidelines, pg.7 body 2—19 Remuneration policies 2021 Proxy Statement, Director Compensation Compensation Committee Charter 2—20 Process to determine remuneration 2021 Proxy Statement, Director Compensation Compensation Committee Charter 82 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

GRI Standard Disclosure Location/response/comment 2—21 Annual total compensation ratio 2021 Proxy Statement 2—22 Statement on sustainable development strategy Messages from our leadership, pp. 4-8 Making the right business decisions every day, pp. 70-78 2—23 Policy commitments Code of Business Ethics Third-Party Due Diligence See additional Ethics Policies See additional Governance Policies 2—24 Embedding policy commitments Leading Responsibly, pp. 64-69 Making the right decisions every day, pp. 70-78 Making the right decisions every day, pp. 70-78 Building a culture of inclusion, pp. 48-52 2—25 Processes to remediate negative impacts Supporting and developing our people, pp. 53-56 GRI 2: General Disclosures 2021 Pushing the boundaries of what’s possible, pp. 29-34 Reversing the process: rethinking returns, pp. 35-37 Reducing our operational footprint, pp. 38-41 Making the right decisions every day, pp. 70-78 2—26 Mechanisms for seeking advice and raising concerns Corporate Governance Highlights Code of Business Ethics, pg. 25 2—27 Compliance with laws and regulations 2021 Form 10-K, pg. 19 Qualitative information only 2—28 Membership associations No significant memberships 2—29 Approach to stakeholder engagement Our ESG priorities, pp. 20-21 2—30 Collective bargaining agreements 2021 Form 10-K, pp. 4-5 Supporting and developing our people, pg. 56 HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 83

GRI Standard Disclosure Location/response/comment Material topics 3—1 Process to determine material topics Our ESG priorities, pp. 20-21 GRI 3: Material Topics 2021 3—2 List of material topics Our ESG priorities, pp. 20-21 Diversity and inclusion GRI 3: Material Topics 2021 3—3 Management of material topics Our ESG priorities, pp. 20-21 Building a culture of inclusion, pp. 48-52 Making the right decisions every day, pp. 70-78 405—1 Diversity of governance bodies and employees Performance Data, pg. 92 GRI 405: Diversity and Equal Opportunity Board of Directors 2016 405—2 Ratio of basic salary and remuneration of women to men Building a culture of inclusion, pp. 48-52 Employee experience Our ESG priorities, pp. 20-21 GRI 3: Material Topics 2021 3—3 Management of material topics Supporting and developing our people, pp. 53-56 Making the right decisions every day, pp. 70-78 Performance Data, pg. 92 GRI 401: Employment 2016 401—2 Benefits provided to full-time employees that are not Supporting and developing our people, pp. 53-56 provided to temporary or part-time employees GXO aims to notify all impacted team members of operational changes as soon as practical as part of our commitment to comply with all required notice periods set forth in local, state and country-specific laws, including requirements and mandatory GRI 402: Labor/Management Relations 2016 402—1 Minimum notice periods regarding operational changes (minimum) notice periods in several jurisdictions. We aim to implement operational changes where works councils or employee representatives are present only after engagement with those works councils and employee representatives. Qualitative information only GRI 407: Freedom of Association and Collective 407—1 Operations and suppliers in which the right to freedom of Human rights and labor, pg. 73 Bargaining 2016 association and collective bargaining may be at risk GRI 408: Child Labor 2016 408—1 Operations and suppliers at significant risk for incidents of Human rights and labor, pg. 73 child labor GRI 409: Forced or Compulsory Labor 2016 409—1 Operations and suppliers at significant risk for incidents of Human rights and labor, pg. 73 forced or compulsory labor 84 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

GRI Standard Disclosure Location/response/comment Energy & GHG emissions Our ESG priorities, pp. 20-21 GRI 3: Material 3—3 Management of material topics Pushing the boundaries of what’s possible, pp. 29-34 Topics 2021 Reversing the process: rethinking returns, pp. 35-37 Reducing our operations footprint, pp. 38-41 302—1 Energy consumption within the organization Performance Data, pg. 88 GRI 302: Energy 2016 303—3 Energy intensity Performance Data, pg. 88 305—1 Direct (Scope 1) GHG emissions Performance Data, pg. 88 GRI 305: Emissions 2016 305—2 Energy indirect (Scope 2) GHG emissions Performance Data, pg. 88 305—4 GHG emissions intensity Performance Data, pg. 88 Information security GRI 3: Material Topics 2021 3—3 Management of material topics Our ESG priorities, pp. 20-21 Making the right decisions every day, pp. 70-78 GRI 418: Customer Privacy 2016 418—1 Substantiated complaints concerning breaches of customer Making the right decisions every day, pp. 76-77 privacy and losses of customer data HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 85

GRI Standard Disclosure Location/response/comment Talent management Our ESG priorities, pp. 20-21 GRI 3: Material Topics 2021 3—3 Management of material topics Supporting and developing our people, pp. 53-56 Performance Data, pp. 91-92 404—1 Average hours of training per year per employee Performance Data, pg. 91 GRI 404: Training and Education 404—2 Programs for upgrading employee skills and transition Talent and Learning, pp. 54-55 assistance programs 86 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Performance tables Environmental Environmental 2019 2020 2021 Environmental 2019 2020 2021 2 Energy consumption within the organization Greenhouse gas emissions Total fuel used by fleet, global (liters) 64,825,727 71,270,552 60,513,131 Total Scope 1 & 2 GHG emissions, global (metric tons CO e) 391,419 389,500 377,795 2 Americas Asia-Pacific 475,355 633,335 276,016 Scope 1, global 243,158 250,546 248,595 Europe 64,350,372 70,637,217 60,237,115 Americas Asia-Pacific 45,445 35,108 36,876 Total electricity, consumption, global (kWh) 493,455,176 465,102,305 451,671,830 Europe 197,713 215,438 211,718 Percentage renewable electricity 4.83% 5.71% 6.98% Scope 2, global 148,260 138,954 129,200 Americas Asia-Pacific 184,358,701 179,673,081 185,550,594 Americas Asia-Pacific 82,117 75,184 74,419 Percentage renewable electricity 0.00% 0.00% 2.62% Europe 66,143 63,770 54,781 Europe 309,096,475 285,429,224 266,121,236 Emissions intensity (Scope 1 & 2) Emissions by revenue (metric tons CO e per million Percentage renewable electricity 7.72% 9.32% 10.01% USD in revenue) 2 64.23 62.87 47.58 3 Americas Asia-Pacific 51.55 46.51 42.31 Total gas consumption excluding vehicles, global (m ) 18,482,740 16,895,702 18,336,552 Americas Asia-Pacific 12,947,352 11,314,123 11,434,493 Europe 72.09 73.09 50.18 1 2 Europe 5,535,387 5,581,579 6,902,059 Emissions intensity by floorspace (kg CO e per m ) 39.86 40.27 33.05 2 Energy intensity Americas Asia-Pacific 30.27 23.46 24.19 Global electricity consumption by floorspace 50.25 48.09 39.51 Europe 47.06 56.16 39.01 2 (kWh/m ) Americas Asia-Pacific 43.75 38.22 40.33 Emissions intensity by employee (metric tons CO2e per FTE) 5.73 5.76 4.87 Europe 55.13 57.41 38.96 Americas Asia-Pacific 3.90 3.98 4.21 Europe 7.20 6.99 5.21 1 We have added large climate-controlled facilities to our portfolio, which has resulted in an increase in gas consumption for facility usage. 2 GHG emissions calculated using GWP rates from the IPCC and country and source-specific emissions factors. European emissions data is assured on a sample basis by Grant Thornton. For more information, see GRI 2-5 in the GRI Content Index. 88 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Environmental 2019 2020 2021 Environment 2019 2020 2021 Waste Facilities Total waste generated, global (metric tons) 128,749 135,435 156,778 Total number of operating facilities 756 785 913 Non-hazardous waste, global 120,193 127,686 151,188 Customer-owned or leased (and operated by GXO) 257 280 323 Americas Asia-Pacific 38,670 40,586 59,141 GXO-owned or leased 499 505 590 Europe 81,523 87,100 92,048 Number of facilities covered by ISO14001 N/A N/A 219 Hazardous waste, global 8,555 7,749 5,590 Americas Asia-Pacific N/A N/A 7 Americas Asia-Pacific 62 45 152 Europe N/A N/A 212 Europe 8,493 7,704 5,438 LED coverage, global (%) N/A N/A 47% Total waste sent to landfill, global (metric tons) 30,129 36,607 31,263 United States N/A N/A 45% Americas Asia-Pacific 22,923 28,349 20,063 Europe N/A N/A 50% Europe 7,206 8,258 11,200 Sustainable building certifications Landfill diversion rate, global (%) 74.93% 71.33% 79.32% Number of locations with LEED certification N/A N/A 3 Americas Asia-Pacific 40.72% 30.15% 66.08% Number of locations with BREEAM certification 3 3 4 Europe 91.16% 90.52% 87.83% HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 89

Social—Health and Safety Social 2019 2020 2021 Social 2019 2020 2021 Americas & Asia-Pacific Europe 1 1 Employee health and safety Employee health and safety Total recordable incident rate (TRIR) 1.2 1.3 1.5 Fatality rate for employees 0 0 0 Fatality rate for employees 0 0 0 Lost time injury rate3 2.6 2.5 2.6 Lost time injury rate2 0.8 1.0 1.3 Certifications Certifications Total number of locations accredited - - 146 to ISO 18001 and/or ISO 45001 Total number of locations accredited to ISO 45001 2 2 2 Fleet safety4 Fleet safety Crash rate (per thousand miles) 2.6 1.7 2.6 Number of road accidents and incidents - - 50 Number of road accidents and incidents 665.0 424.0 804.0 1 Rates are calculated based on 200,000 hours worked. 2 Lost time calculated as DART (days away, restricted, or transferred). 3 Rates take into account statutory requirements in various European countries for time off after an incident. 4 2021 numbers include the integration of K&N business in the U.K. 90 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

Social—Talent and Learning Social 2019 2020 2021 Employee development 1 Total learning hours 899,937 722,967 1,049,385 Average learning hours per employee 15.6 11.8 14.0 By gender Women 13.8 12.0 15.3 Men 16.7 11.7 13.4 Not specified 0.3 1.5 1.7 Average training and development spend per employee2 $449 $386 $325 1 Learning hours exclude contractor training. 2 Spend has decreased year over year due to increased efficiencies and decreased cost of creating and delivering content. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 91

Social—Workforce Social 2019 2020 2021 Social 2019 2020 2021 Workforce1 Employees by region Total employees 57,560 61,339 74,903 Americas & APAC 21,955 21,430 23,797 Permanent 55,544 57,511 71,590 Europe 35,605 39,909 51,106 Temporary2 2,016 3,828 3,313 Employees by gender Full-time 52,239 55,431 67,716 Women 19,381 21,117 25,843 Part-time 5,321 5,908 7,187 Men 37,836 40,162 48,966 Contractors 28,921 36,595 42,803 Not specified 343 60 94 1 Employees by age Headcount is used except for contractors in Europe, where it is FTE 2 Data is for fixed-term employees in Europe <30 years old N/A 13,375 16,038 30-50 years old N/A 31,915 38,498 50+ years old N/A 16,049 20,367 92 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G

DISCLAIMER Forward-Looking Statements This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including our goals of (i) 80% global operations using LED lightning by 2025, (ii) 80% global landfill diversion rate by 2025, (iii) 50% renewable energy in global operations by 2030, (iv) reducing greenhouse gas emissions by 30% by 2030 vs. 2019 baseline, and (v) being 100% carbon neutral by 2040. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the company believes are appropriate in the circumstances. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited, the risks discussed in our filings with the Securities and Exchange Commission. All forward-looking statements set forth in this report are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this report speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law. HOME E S G ©2022 GXO Logisitcs, Inc. 2021 ESG Report | 93

ESG in action Click on one of the links below to view our case studies. GXO’s new Warehouse of the GXO Direct cuts From bulbs to Purging plastic: Creating Empowering packaging Future advances delivery times bees: GXO and GXO helps a a winning the Dunelm innovation cuts Nestlé’s ambitious and emissions for global fashion telecom leader culture for a top Group to work waste down to size environmental The Beachbody retailer design cut waste in athletic brand safer, simpler for Amer Sports goals Company a model for distribution and faster sustainability Return to contents 94 | 2021 ESG Report ©2022 GXO Logisitcs, Inc. HOME E S G