Environmental Sustainability 24 2021 ESG REPORT Sustainable Sourcing We’re working to make Kohl’s proprietary-branded products more sustainably sourced. Environmental Impacts on our Supply Chain Supply chain operations can have an impact on the environment through energy and water consumption, carbon emissions, wastewater, chemical use and waste disposal. If the environmental impacts of our supply chain are left unmanaged, they could pose both financial and reputational risks. In an effort to make meaningful improvements and more sustainable choices when it comes to protecting the well-being of factory workers, local communities and the environment, we use the Higg Index. GOAL Require all approved facilities producing Kohl’s private-and exclusive-branded product to complete the Higg Index Facility Environmental Module by 2025. Utilizing the Higg Index, drive substantial water-use reduction in the production of Kohl’s-owned branded products by 2025. Type of supplier Percentage that have completed the Higg FEM Percentage in compliance with wastewater discharge permits and/or contractual agreement Tier 1 89% 98.9% Beyond Tier 1 61% 99.3% Sustainable Apparel Coalition (SAC) The complex nature of global supply chain issues requires collaboration among many stakeholders. We are committed to consulting with stakeholders on environmental issues within our supply chain. We are one of the founding members of the Sustainable Apparel Coalition (SAC) and maintain an active membership. The SAC is a group of apparel manufacturers, retailers, brands and nongovernment organizations working together to standardize supply chain sustainability measures. Higg Index The Higg Index is a suite of tools that accurately measures several environmental and social impacts, delivering a holistic overview of supply chain factory compliance and sustainability performance. We require all approved facilities producing private- and exclusive-branded products to complete the Higg Facility Environmental Module (FEM). The Higg FEM assesses energy use, greenhouse gas and air emissions, water use, wastewater, waste management, environmental management systems and chemical management. In addition, our strategic suppliers are required to complete the Higg Verified Facility Environmental Module (VFEM) as well as the Higg Facility Social and Labor Module (FSLM). For more information on our environmental supply chain programs, please see the Social Supply Chain section of this report.