leaving a positive legacy for our world Efficient equipment Updates to in-store lighting and HVAC have been another focus of our investments over the past year. In 2021, these initiatives included: o Upgrading compact fluorescent bulbs to LEDs in 100 Ulta Beauty stores o Installing LEDs in all new store construction o Continuing to use 100% LED lighting at our corporate headquarters in Bolingbrook, Illinois o Equipping all new stores with HVAC units that exceed industry efficiency standards o Identifying opportunities for early retirement of aging and inefficient equipment at existing stores on an annual basis. During the past year, we replaced HVAC equipment at 17 stores and completed variable frequency drive retrofits at an additional 16 stores. In 2022, we expect to upgrade an additional 100 stores and one distribution center to LED lighting, remodel 12 stores and retrofit HVAC systems at 50 stores. Embracing clean energy Ulta Beauty is a proud user of renewable energy, and our efforts have earned us recognition as a Green Power Partner by the U.S. Environmental Protection Agency (EPA). The Green Power Partnership is a voluntary program that encourages organizations to use green power to reduce the environmental impacts associated with conventional electricity use. 22,640 MWh wind energy purchased through renewable energy credits in 2020 Renewable Energy Highlights 16% of company annual electricity usage met through renewable energy credits in 2021, double the percentage that was met in 2020. We expect our usage of renewable energy credits to double again in 2022. FY19-21 energy consumption grid vs. renewable We continued to purchase renewable energy credits (RECs) from a wind farm in McCullough County, Texas, and have made additional investments in residential solar projects that offer tax credits to homeowners. Sustainability in our supply chain Reducing the overall energy and emissions impact of our business goes beyond what happens in our stores. It extends to indirect emissions categories such as the transportation and distribution of our products. Ulta Beauty is exploring ways to reduce the carbon emissions associated with the packaging, handling and transport of our products, such as consolidating shipments and using EPA SmartWay-certified carriers. We are preparing to conduct due diligence with our brand partners and other vendors to better understand their emissions. Better understanding these emissions sources will allow us to set a Scope 3 emissions reduction goal. Participation in a community solar program, with 13 stores and a distribution center enrolled for a 100% renewable match 2021 ESG Report 32 Environment Product People Introduction Supplemental Data Community