Environmental Sustainability 18 2021 ESG REPORT Logistics EPA SmartWay® Shipper Partner We are a shipper partner of the U.S. EPA SmartWay® Transport Program. SmartWay® Partners share a vision to move materials, supplies and goods in ways that protect the environment, enhance our nation’s energy security and foster economic vitality. EPA’s SmartWay® membership is both sought after and encouraged for all vendors. In 2021, 100% of our domestic miles were with SmartWay® members. Our transportation data is constantly analyzed to uncover heightened efficiencies while reporting back to the EPA. SmartWay® tools are used to measure our emissions footprint and find ways to reduce fuel costs. EPA SmartWay® High Performer List We are proud to have been recognized for these efforts on the SmartWay® 2021 High Performer List as an industry leader in the environmental and energy performance of our freight supply chain. Receiving this distinction places Kohl’s among the top 5% of all SmartWay shipper partners. Our exceptional performance moving goods in the cleanest and most energy-efficient way possible ultimately leads to cleaner and healthier communities. Mile & Weight Improvement Activities Backhaul Program Utilization of inbound trailers to support freight return loads from stores improves route optimization and reduces empty miles from our system. We also ensure store teams properly load backhaul trailers to maximize space. Drop-and-Hook Idle time for trucks is drastically reduced by utilizing drop-and-hook methods at the origin and destination of shipments. Our fleet is nearly 100% drop-and-hook at store destinations. California Air Resources Board Our California fleet is compliant with California Air Resources Board, all tires are low-rolling resistant and all required trailers have airfoils installed in the undercarriage. Rail We also rely heavily on rail transport. Current rail usage stands at nearly 38% of truckload freight. On average, rail produces 75% fewer carbon emissions than an average truckload delivery. Future Fleet Emerging technologies will make future fleets more efficient. Already, several of our carriers have placed orders for hydrogen fuel cell trucks, electric trucks and high-performance diesel trucks. The proliferation of airfoils, trailer skirting, rear foils, cab air flow diverters and wheel covers are making our fleet more efficient every day.