leaving a positive legacy for our world Reducing our carbon impact Energy & emissions Approximately 99% of our stores make use of an energy management system (EMS), which helps us actively conserve energy while saving on annual operating costs. EMS technology has changed over time, creating additional opportunities for efficiency, which is why we spent $1.6 million in 2021 on EMS retrofits. These systems offer the following benefits: o Temperature control o Lighting management during and outside of retail hours o Early detection of malfunctioning equipment o Shifting or reducing electricity usage during peak periods, helping to stabilize the electric grid and lowering our utility bills o Advanced analytics, including fault detection, diagnostics and optimization $5.5 M investment in lighting upgrades for 100 stores 509 MWh estimated savings of energy per year Energy consumption FY17–FY21 Comp Store 1 Net kWh reduction/increase in millions FY17 -3.1 FY18 -1.7 FY19 -0.9 FY20 2 -45.7 FY21 3 +31.9 Year-over-Year +/- Projected investments for 2022. Protecting people and the environment The pandemic posed additional complexity for managing the efficiency of our stores. With decreased foot traffic during store closures in 2020, we had less need for cooling and dehumidification. Now that stores and salons have fully re-opened, we have lowered cooling setpoints, increasing comfort for masked associates and guests. Based on CDC recommendations, we have also upgraded our air filters and increased our fresh air intake, which will increase our HVAC load. As we continue to open new stores and adapt to life with COVID-19, we will seek out efficient technology and apply best practices for continuous improvement. 1 Electricity consumption in comparable stores. This compares annual electricity consumption against the same store’s prior performance (i.e., increased consumption from additional store openings is removed from this comparison). 2 Decrease primarily due to temporary store closures and reduced operating hours due to COVID-19. 3 Data through October. Increase primarily due to restoration of store operations under slightly reduced hours. 2021 ESG Report 31 Environment Product People Introduction Supplemental Data Community