Identifying Human Rights Risks We recognize that the publication of our Terms of Engagement is only one part of achieving continuous improvement and that active assessment, auditing and training is required. Social Supply Chain 58 2021 ESG REPORT Vendor and facility partners must share our commitment to the principles contained in our Terms of Engagement. They understand we will monitor their compliance efforts and exercise our ability to take corrective action when necessary. We work closely with our business partners to identify challenges and address them in a responsible manner that considers the needs and expectations of the affected vendor, its suppliers, workforce and our shareholders. We closely monitor social compliance and encourage our vendor and facility partners to protect the health, safety and human rights of workers and the surrounding communities. Proprietary Brand Vendor Partner Compliance Program Performance Total Number of Production Facilities Facilities Made Not Authorized to Produce for Kohl’s Audits Conducted Unannounced Audit Visits 2021 1,195 4 1,101 266 (24%) 2020 1,253 3 1,112 282 (23%) 2019 1,370 15 1,668 434 (26%) Partnering with the right vendors and facilities, combined with improved facility compliance, has meant fewer unannounced follow-up monitoring visits are needed. Our social compliance audit program has remained consistent for over two decades. Noncore audit steps have been adjusted over the years to address rising human rights risks. Facility audit results have shown progress with significant declines in the number of facilities that have been deemed unauthorized to produce for us. Our program, including vendor and facility education, facility monitoring and remediation efforts, has resulted in improved and consistent social compliance at facilities producing our proprietary products.