e 0 Introduction Environmental Social Governance Indexes and Glossary Environmental Overview Chemicals Inside Environmental Investing in Circularity Climate Action Responsible Resource Use Consumers are increasingly interested in the chemicals used in their products. 45 Our guests trust us to deliver products that are better for them, their families, their communities and the environment. With responsible chemical management forming an integral part of our Target Forward ambition to design and elevate sustainable brands, we are committed to advancing transparency, progressive chemical management and green chemistry innovation across our value chain. In 2017, we launched our comprehensive Chemicals Policy . The policy encompasses owned and national brand products we sell, as well as products used in our operations, such as cleaning supplies in stores. Supplemental Chemical Policy training for owned brand team members began in 2022. We have set goals to remove two categories of chemicals from owned brands and national brand exclusive textile products by the end of 2022: 45 U.S. study by Mintel . • Improve textile products by removing perfluorinated chemicals (PFCs), which are typically found in stain- and water- resistant coatings. • Improve textile products by removing added flame retardants that are potential carcinogens or pose harm to guests, workers or communities. Read more about our approach and progress on this goal . Knowing PFCs exist in other products beyond textiles, we launched a new goal that expands this to all owned brand categories. By 2025, we aim to remove intentionally added perfluorinated alkyl substances (PFAS) from owned brand products, including textiles, cosmetics, beauty and cookware items. We also plan for all our owned brand apparel textile facilities to comply with the ZDHC Progressive-level wastewater standard by 2025. Read about how we manage potential risks and hazards associated with chemicals using our policy to guide actions. Chemical use, management and innovation Textiles Within textiles, we have focused on our owned brand supply chain as we drive for sustainable brands and a circular future. For products, this is done through our Restricted Substances List (RSL), which applies to any owned brand product made with textiles 46 Black communities, Indigenous communities and other communities of color. (including apparel and non-apparel) and restricts the use of chemicals that are carcinogenic or that can cause reproductive issues from human contact. Compliance with our RSL is validated using a risk-based testing approach. In 2021, we had a compliance rate of 99%. For manufacturing, we joined ZDHC in 2018 and adopted its Manufacturing Restricted Substances List (MRSL), prohibiting the use of certain chemicals in the production of our owned brand products containing textiles. Having implemented the MRSL across apparel/clothing categories, we are starting to roll it out to accessories (non-clothing) vendors. We also held formal MRSL training for our team members in July and August 2021. Formulated essentials When we launched our Chemicals Policy, we established our first Unwanted Chemicals List (UCL) to address ingredients of concern in household cleaning and personal care products. Over the years, we have gained greater visibility and understanding of the chemicals in our formulated products. We have applied our learnings to evolve our approach for these product categories. As a result of our analysis, we updated the UCL and renamed it our Target Priority Chemical List (TPCL) in October 2021. We are also calculating our aggregate use of chemicals via the Chemical Footprint Project , of which we are a signatory and survey participant. Read about our Building Blocks for Better Products (B3P) initiative, through which we have helped 26 women- and BIPOC 46 -founded beauty and personal care businesses to phase out harmful or undesirable ingredients from their products. Innovations in green chemistry We are investing in innovative new green chemistry ideas and sharing our chemicals list and guidance publicly. We exceeded our goal to invest $5 million in green chemistry innovation by 2022, having spent over $5 million by the end of 2020. We also participate in multiple industrywide collaborations. As a member of the Green Chemistry & Commerce Council and Retailer Leadership Council , we discuss implementation tactics with other retailers to drive transparency around the chemicals used in consumer products. Target in action Target Clean We are also prioritizing and expanding programs like Target Clean, which incentivizes national brands and merchants to avoid using chemicals of concern. The Target Clean symbol, found in stores and online, also helps our guests easily identify more than 10,000 products formulated without specific ingredients. 2022 Target ESG Report 30