Environmental Sustainability 27 2021 ESG REPORT Raw Material Sourcing To deliver on our commitment to a more sustainable future for families, we strive to incorporate materials into our products that are better for people and the planet. We consider the environmental impact and take several factors into account when we evaluate the sustainability of the raw materials we use to source Kohl’s proprietary brands. The environmental risks associated with sourcing raw materials include chemical management, water and energy consumption, biodiversity loss and deforestation, as well as climate change. To manage our risks associated with sourcing priority raw materials, we have set public goals and are committed to increasing the use of recycled polyester and more sustainable cotton. Increasing our use of responsibly sourced materials will help to lessen our environmental impact and could also drive reductions in our Scope 3 emissions. Our product development, design and sourcing teams are aligned with our goals and empowered to drive progress. Our raw materials sourcing strategy focuses on the key materials that account for the majority of our raw material consumption. The most common materials we use are cotton, polyester, nylon and manufactured cellulosic fibers. As a pillar of our sourcing strategies, we have partnered with key players behind some of the world’s largest and most innovative sustainability initiatives. GOAL Achieve 100% sustainably sourced cotton for Kohl’s proprietary brands by 2025. Achieve 50% of polyester styles to contain recycled materials in Kohl’s proprietary brands by 2025. Cotton (Natural Fibers) Cotton is our single largest commodity, and we utilize the Global Organic Textile Standard (GOTS) to provide certifications for several products within our private and exclusive brands containing natural fibers. GOTS is a textile processing standard that covers textiles made from at least 70% certified organic fibers. This certification provides credible assurance of responsible manufacturing of organic textiles. As of FY2021, 24% of cotton was sustainably sourced. Polyester & Nylon (Synthetic Fibers) Polyester is a synthetic material produced from fossil fuels. We are working to transition from virgin sources of polyester to recycled options. We utilize the Global Recycle Standard (GRS) and Recycled Claim Standard (RCS) to provide certifications for several products within our private and exclusive brands in support of our raw material sourcing goals. As of FY2021, 20% of polyester styles contain recycled polyester. Manufactured Cellulosics (Wood Derived Fibers) Canopy’s Protecting Forests campaign works to support partner companies to reduce their environmental impact by making informed procurement choices that reduce the risk of sourcing man-made rayon, viscose or lyocell products from ancient and endangered forests globally. Kohl’s is working toward ensuring that none of the man-made cellulosic fibers used in our private brands’ apparel products are derived from ancient and endangered forests, endangered species’ habitats or other controversial sources, defined by the nonprofit organization Canopy. See Kohl’s statement on man-made cellulosic fiber . Fur-Free (Animal-Derived Fibers) Kohl’s does not knowingly carry products that contain real fur. We work closely with our suppliers to ensure adherence to our fur-free policy and labeling guidelines.