Facility Sustainability and the Higg Index Our commitment to sustainability is grounded in the belief that we need to actively address the challenges facing our industry and the world in which we live. Social Supply Chain 62 2021 ESG REPORT We are dedicated to reducing our environmental footprint and upholding workers’ fundamental rights within the facilities producing our goods and our supply chain. To assist us in driving facility social and environmental improvements, we use the Higg Index. Kohl’s currently leverages multiple tools within the Higg Index, including the Higg Facility Environmental Module (FEM), Higg Verified Facility Environmental Module (VFEM) and Higg Facility Social and Labor Module (FSLM). This suite of tools delivers a holistic overview that empowers us to make meaningful improvements that protect the well-being of factory workers, local communities and the environment. We use the Higg Index to benchmark ourselves and the sustainability efforts of the facilities involved in the production of our goods. We require all approved facilities producing private and exclusive branded products to complete the Higg FEM. The Higg FEM assesses energy use, greenhouse gas and air emissions, water use, wastewater, waste management, environmental management systems and chemical management. We understand that when the facilities that produce our goods operate more sustainably, they are also operating more efficiently using less water, energy, chemicals and creating less waste. In addition to completing the Higg FEM, our strategic suppliers are required to complete the Higg VFEM and the Higg FSLM. To demonstrate our ongoing commitment to driving sustainability within our supply chain, we are establishing environmental standards in 2022 for our strategic suppliers that will be assessed for compliance in 2023. For more information on our sustainability efforts, please refer to the Environmental Sustainability section of this report and our Environmental Policy. * Facilities out of compliance were imported on the vendor scorecard. ** Data obtained from Higg, Trusted Sustainability Data Higg Index Performance # 3 Highest absolute number of received posted FEM 2020 self-assessment modules # 3 Highest absolute number of received posted verified FEM 2020 modules 39 % Average score performance improvement against 2018 89 % Tier 1 facilities completed the Higg FEM and shared results with Kohl’s 61 %* Tier 2 and beyond facilities completed the Higg FEM and shared results with Kohl’s Facilities are in compliance with wastewater discharge permits and/or contractual agreement 98.9 % Tier 1 99.3 % Tier 2 & beyond One key component is comparing year-to-year results to determine if progress is being made. Kohl’s has a total of 1195 Tier 1 and 829 Tier 2 and beyond facilities.