18 How Are We Doing? In 2021, we made substantial progress in pursuit of our SBTi- approved carbon reduction goal, cutting our Scope 1 and 2 GHG emissions by 7.9 percentage points to achieve a 40.7% reduction against our 2015 baseline. Our focus on increasing renewable energy generation in North America contributed heavily to this progress, as did our work to lower energy consumption in our manufacturing operations, which collectively resulted in a 12.3% reduction in energy intensity from our 2015 baseline. In 2021, a pilot program introduced standardized visual energy and water management systems into select manufacturing sites, supporting energy use reduction that delivered an 8,000 MT reduction in CO2 equivalents. As we deploy these systems further, we are poised to accelerate Scope 1 & 2 emissions reduction in the coming years. Carbon Footprint As the world strives to limit global warming to below 2 degrees, and as awareness of climate change impacts leads more retail customers and consumers to prioritize sustainable business practices and products, we are doing our part to contribute to a low-carbon economy. Our greenhouse gas (GHG) emissions reduction efforts focused on energy conservation and lean energy management systems, renewable and alternative energy generation, and improving measurement of our Scope 3 emissions in support or our 2030 goals. We continue to identify alternative energy sources to power our manufacturing operations. In 2021, we further increased our use of renewable electricity by 12%, mainly through additional power purchase agreements for renewable energy (virtual and direct) that came online in North America. For Scope 3 GHG emissions, we achieved a 6.3% GHG emissions reduction from a 2015 base year, with a focus on purchased goods and services and end-of-life treatment of sold products. In 2021, we also completed quantitative and qualitative climate risk assessments to better understand and plan for the climate- related risks and opportunities in our business and supply chain. We published our first TCFD Report in 2021, detailing our responses to transition and physical risks against three climate scenarios, which informs our risk management processes and areas of focus for the next two to five years. * Reduction target is focused on emissions from the Greenhouse Gas Protocol's Scope 3 Category 1 (Purchased Goods and Services) and Category 12 (End of Life Treatment of Sold Products). Progress Toward Our Goals 20% reduction of absolute Scope 3 GHG emissions from a 2015 base year* Target 2030 2019 2020 2021 3.4 % 2.8 % 6.3 % 50% reduction of absolute Scope 1 and 2 GHG emissions from a 2015 base year Target 2030 2019 2020 2021 32.8 % 28.3 % 40.7 % 50 % 20 % About This Report Social Impact Our Strategy Inclusion & Diversity Environment, Health and Safety Product Quality & Safety Plastics Footprint Forest Footprint Carbon Footprint Water Footprint