ESG PROGRESS AT MARRIOTT INTERNATIONAL → 83 ESEG PROAR TMS ORINOL (b) Pr ocesses for Managing Climate-Related Risks Increased pricing of GHG emissions: Marriott remains focused on reducing energy consumption to mitigate the risks posed by fuel and carbon taxes. Our support for each hotel is tailored to the characteristics of the property, its location and our partnership with the property owner. We have deployed tools and technology such as MESH (Marriott Environmental Sustainability Hub) and the Transcendent asset management platform, which help facilitate and track implementation of conservation projects. Additionally, our engineering leaders in Europe, where this tax is levied, leverage strategic partnerships across countries, work with utility partners to identify rebates and incentives to develop attractive ROI for owners, and explore innovative ways to approach conservation for our many properties already operating at high efficiency. Increased severity and frequency of extreme weather events such as cyclones and floods: As part of Marriott’s Business Continuity Planning, property-level Emergency Response Plans are required per MIP-30. These plans are evaluated, revised, and certified every year and were refined after several severe storms during the 2017 Atlantic hurricane season. Marriott also works with insurance providers to develop criteria for insurance coverage requirements as part of our management agreements with hotel owners. Rising mean temperatures: Marriott pursues a comprehensive platform of initiatives and practices designed to drive down operational costs and reduce energy consumption. We developed a robust hotel data validation approach to support improved reporting and evaluation of operational decisions at the property and above-property level. In 2020, investments by Marriott’s owners included building management systems, guest room occupancy sensors, HVAC upgrades, and lighting retrofits. Changes in precipitation patterns and extreme variability in weather patterns: From design standards for new hotel construction through operations, Marriott focuses on running energy- and water- efficient hotels. Marriott follows local water restrictions in drought-affected regions and takes other actions including installation of low-flow fixtures, sub-metering for leak detection, and desalination plants where local infrastructure is inadequate to withstand variation in precipitation patterns, as well as the implementation of operational programming. (c) Pr ocess Integration Into Overall Risk Management Mar riott’s processes for identifying and assessing climate-related risks are fully integrated into our multidisciplinary companywide risk management process. Marriott’s Internal Audit discipline coordinates an annual Enterprise Risk Assessment process through which senior leadership identifies the top business and emerging risks facing the company, in addition to key mitigating action plans for addressing those risks. The results of this process are reported to our Board of Directors. Due to the COVID-19 pandemic, the annual Enterprise Risk Assessment did not take place in 2020. Additional References 2021 Ser ve 360 Report (“Energy and Emissions”, p. 25) CDP 2021 Climate Change Response, Questions C2.2 and 2.3a (p. 6-12) METRICS AND TARGETS: THE METRICS AND TARGETS USED TO ASSESS AND MANAGE RELEVANT CLIMATE-RELATED RISKS AND OPPORTUNITIES (a) Metrics Used b y the Organization to Assess Climate-Related Risks and Opportunities In addition to tracking and reporting on Scope 1, 2, and 3 global greenhouse gas emissions, Marriott also tracks and reports on energy, carbon, and water intensity metrics for each of our regions. As part of our company’s 2025 Serve 360 Goals, we are also tracking the percentage of renewable energy consumed in our portfolio. T o further assess climate-related risks and opportunities, and as part of Marriott’s Serve 360 platform, Marriott also tracks and reports on the percentage of properties certified to a recognized sustainability standard, the number of LEED®, BREEAM®, or Estidama certified or registered hotels, and the number of implemented adaptive reuse projects. (b) Scope 1 , 2, and 3 Greenhouse Gas Emissions (in million MT Co2e) 2020 2019 2018 Scope 1 0 .97 1 .33 1 .35 Scope 2 (Market Based) 4 .19 5 .48 5 .48 Scope 2 (Location Based) 4 .15 5 .48 5 .48 Scope 3 (Franchised Properties – Location Based) 3 .46 4 .84 4 .79 Scope 3 (Franchised Properties – Market Based) 3 .68 4 .90 4 .79 Scope 3 (Purchased Goods and Services) 1 .75 2.49 3 .14 Scope 3 (Fuel-and-Energy-Related Activities (not included in Scope 1 or 2)) 0 .88 0 .59 0 .71 Scope 3 (Waste Generated in Operations) 0 .06 0 .08 0 .13 Scope 3 (Business Travel) 0 .01 0 .03 0 .16