CEO Message Overview Team Members Customers Community Environment Supply Chain Governance SASB Index 47 Tractor Supply 2021 Sustainability Report Topic Metric Code Disclosure Labor Conditions in the Supply Chain (con't) Priority non-conformance rate and associated corrective action rate for suppliers’ labor code of conduct audits CG-AA-430b.2 2021 Social Audits: We had a total of 176 social audits, with an average score of 86%. Social Audit Results: 155 Green (92%), 1 Yellow (1%), 12 Red (7%) 2021 Security Audits: We had a total of 175 audits, with an average score of 81%. Security Audit Results: 147 Green (88%), 13 Yellow (8%), 6 Red (4%) We use color-coding to clearly communicate the status of factory audits. Green factories do not require a CAP closure: The plan is approved and signed with the auditor on-site and verification is confirmed during the next full audit. Yellow factories require a Desktop Review: once the CAP is implemented for review and approval, the evidence is sent to QIMA, our quality control and compliance service provider, for review. Suppliers will not be able to ship product if non-compliance issues are not resolved in a timely fashion. Red factories require a follow-up audit to review the implementation of corrective actions on site. If a supplier is unable to meet requirements, Tractor Supply will hold shipments from the facility until compliance is achieved. Tractor Supply conducts supplier training on its compliance program as needed. We also connect suppliers with our service providers if the suppliers are struggling in areas of lab testing or social audits and security audits. This approach has proven successful in resolving supplier deficiencies. We also conduct high risk audits. The status of high-risk audits in 2021 was: • 2 have passed follow up audits • 10 are booked before end of the year • 6 factories were not used or did not receive new purchase orders