leaving a positive legacy for our world We are continually looking for new ways to reduce our impact as our business grows. Beyond improving the sustainability of our products through Conscious Beauty at Ulta Beauty™ , we recognize our responsibility to conserve water and minimize waste where possible. Making water go further While retailing is generally not a water- intensive business, our demand has increased in recent years as our salon services have grown. We continue to seek ways to manage our stores’ water footprint, such as by transitioning from traditional to instant water heaters that reduce water use and gas consumption. In 2021, we completed proactive water heater replacements at 48 stores, seven of which received units equipped with ultra-low nitrogen oxide burners. Ulta Beauty also engages a vendor that proactively identifies potential leaks or malfunctioning equipment by comparing water consumption year over year, enabling us to identify issues and make repairs quickly. Sending less to landfill All Ulta Beauty stores can dispose of general waste and recycle cardboard. While plastic recycling capabilities vary across the country, 110 stores are currently participating in a single-stream recycling pilot that allows them to recycle certain types of plastic. We estimate that about 48% of our waste is diverted for recycling, and in 2020, our stores and distribution centers recycled more than 12,348 tons of cardboard and plastic shrink wrap. A unique waste stream we must manage is beauty products that, for a variety of reasons, cannot be sold and must be disposed. Certain products are considered hazardous waste, due to the possibility of chemicals mixing and will provide our beauty retail perspective with Consortium partners as they determine which solutions to implement in 2022 and beyond. potentially creating a harmful substance. Ulta Beauty complies with all local, state and federal environmental laws for the responsible management of these materials. Items that are regulated as hazardous waste are not sent to a landfill. In 2020, stores and distribution centers diverted 2,292,946 pounds of hazardous waste from landfills. As part of our focus on sustainable packaging in our Conscious Beauty at Ulta Beauty™ program, we are exploring new ways to decrease our demand for materials—and by extension, the waste we generate. We recently joined 13 other leading retailers as the Beauty Sector Lead Partner in the Consortium to Reinvent the Retail Bag . The Consortium, through its Beyond the Bag Initiative, will identify, test and implement solutions that more sustainably serve the purpose of the single-use plastic retail bag. Ulta Beauty Maintaining the beauty of our environment Water & waste 1 Waste management reporting and distribution center self-reporting. Tons of waste diverted from landfill 1 (In Thousands) 2021 ESG Report 34 Environment Product People Introduction Supplemental Data Community