Water Scarcity We work with Kohl’s private and exclusive brand business suppliers across the globe and in difierent geographical regions to understand the facilities that are located in water-stressed areas and that are or may become subject to water scarcity in the future. This year we have carried out our ffrst water risk assessment using the World Resources Institute’s (WRI) Aqueduct Water Risk Atlas to map areas of water risks across our global supply chain. Social Supply Chain 64 2021 ESG REPORT Additionally, our supplier engagement work and the Higg FEM 2020 performance analysis for water-intensive facilities revealed that our suppliers located in the most water-stressed regions already have strong water management practices in place. Some examples include consumption monitoring and baselining, target setting and implementation plans. We will continue to utilize these tools to further shape and update our water reduction strategy in the coming years and further engage our suppliers located in water-stressed areas to further drive performance improvement, drive water use efficiency and continue to play their role in addressing local water scarcity challenges. 58 % 12 % 7 % 12 % 10 % Water Stress Risk Level Medium-High Low Low-Medium Extremely High High Higg FEM 2020 Average Score for Water Section Water Intensive Low (<10 % ) Low-Medium (10-20 % ) Medium-High (20-40 % ) High (40-80 % ) Extremely High (>80 % ) 60.6 64.9 61.2 67. 5 73.9 Low (<10 % ) Low-Medium (10-20 % ) Medium-High (20-40 % ) High (40-80 % ) Extremely High (>80 % )