0 Introduction Environmental Social Governance Indexes and Glossary Elevating equity in supply Social Overview Inside Social chains and communities Supporting Our Team Members Board and Workplace Diversity Products and Guest Experiences Built on Fairness and Equity Serving and Strengthening Communities Prioritizing health and safety Providing a safe and healthy working environment for workers is a key expectation for our vendors. The Responsible Sourcing and Sustainability audit program focuses on health and safety violations to minimize safety risks. Target collaborates with industry-led initiatives like Nirapon and Life and Building Safety (LABS) to enhance worker safety and create a culture of minimizing occupational hazards in our supply chain. As a founding member of LABS, a global collaborative initiative of apparel brands and retailers, Target is working to assess safety risks related to structure, electricity, fire safety and evacuation preparedness, and remediates them in line with global best practices in our apparel and footwear factories. Through Nirapon’s Safety Management program, we are committed to driving safety requirements in Bangladesh factories, along with worker training and helpline support. Product suppliers Accelerator programs Our portfolio of Target Accelerator programs offers investment, access, expertise and mentoring, equipping historically under-resourced founders and entrepreneurs to drive innovation, instigate change and build their businesses. In 2021, 45% of the applications we received came from Black- owned brands. One of our accelerators, Target Takeoff , is a five- week program that supports startups. In 2021, we ran three Takeoff cohorts, covering Beauty, Food and Beverage, and Pets, and 30% of the cohort participants were Black-owned brands. Thirteen brands that have graduated from Takeoff in previous years launched at Target, and overall, 40% of Takeoff alumni have received a Target business award. Takeoff Beauty, our longest-running accelerator program, saw a 79% increase in applications from 2020 to 2021, and 52% of the applicants were from Black-owned beauty businesses. In 2020, Cora Miller, founder of the Black-owned Young King Haircare , participated in the program and her business has since launched in 365 Target stores. We aim to elevate more entrepreneurs like Cora, who is among a group of fewer than 100 Black female entrepreneurs to raise more than $1 million in venture funds. Forward Founders Building off the success of our accelerator programs, we co-created Forward Founders with Black entrepreneurs from our Entrepreneurship Advisory Council . The Forward Founders program engages Black-owned retail businesses earlier in their startup journey, giving them access to subject matter experts and educational workshops. This program is designed to help them navigate the critical stages of ideation, product development and scaling up, and increase their potential for long-term success. The inaugural Forward Founders program received 3,100 applications, 73% of which came from Black-owned businesses. We also launched a six-part Retail Knowledge Speaker Series for those Forward Founder applicants who were not chosen to participate in the program, giving them support on their entrepreneurial journey. The series had more than 1,900 attendees and received an average Net Promoter Score of 73. Bet on Black As part of our multimillion-dollar investment in the Black-owned multimedia platform REVOLT , we’ve co-created a new project to help us more innovatively connect with Black guests. Bet on Black is a new pitch-style competition series highlighting 12 Black-owned startups — which continue to be underrepresented in venture funding — with innovative ideas for revolutionizing their industries. Target is providing $500,000 in funding for the startups without requiring any equity stake so each company can retain full ownership and control of their business. Diverse and local suppliers Property suppliers In addition to supporting growth in the diversity of our product suppliers, we’re also actively engaging BIPOC-owned businesses to service our properties. In 2019, Target Properties developed an internal mentor program to help BIPOC-owned businesses navigate the process of becoming active Target suppliers, and our first cohort of mentees started in 2020. We searched the country for potential suppliers to support our heating, ventilation and air conditioning (HVAC) business. Currently, there are seven Black-owned HVAC businesses that are learning how Target does business, to prepare them to participate in active projects. Through 2021 and beyond, we are seeking more mentor cohorts to cover more product categories. Metric FY2021 FY2020 FY2019 Number of diverse suppliers Total 1,279 702 442 New 467 297 81 Amount of spending with diverse suppliers Tier 1 (USD) $2,483 million $1,471 million $1,043 million Tier 2 (USD) $783 million $764 million $1,899 million Percentage change in Tier 1 spending with diverse suppliers year-over-year Percentage of diverse supplier bid inclusion Percentage of the procurement budget spent on suppliers local to Minnesota and three counties in Western Wisconsin (Polk, St. Croix and Pierce) 69% 52% 2% 41% 52% 4% -26% 46% 5% 2022 Target ESG Report 52