Williams-Sonoma, Inc - Impact Report
2021 | 59 pages
GOOD BY DESIGN Impact Report 2021 T 2021 T REPOR C A IMP WILLIAMS SONOMA | WILLIAMS SONOMA HOME | POTTERY BARN | POTTERY BARN KIDS | POTTERY BARN TEEN | WEST ELM | MARK & GRAHAM | REJUVENATION | OUTWARD 1 2
Table of Contents O INTR INTRODUCTION PURPOSE ANET PL A Letter from our CEO ........................... 08 Governance ............................................ 75 Our Strategy ........................................... 09 Spotlight: Brand Leadership ......................79 Company-Wide Goals .............................11 Certifications & Standards. ....................81 Methodology & Governance ...................13 Giving & Volunteering..................................83 Awards & Accolades ..............................16 OPLE 2021 Highlights .......................................17 APPENDIX PE PLANET ESG Metrics ........................................... 89 U.N. Sustainable Development Goals ...99 Climate & Energy ...................................21 SASB Disclosures .......................................107 Spotlight: Pottery Barn. ......................... 29 TCFD Disclosures .......................................113 Responsible Materials ................................. 31 PURPOSE Waste & Circularity ......................................37 PEOPLE T 2021 Ethical Production ................................. 45 Worker Wellbeing. .................................. 53 T REPOR Diversity, Equity & Inclusion ......................61 C A APPENDIX Associates ......................................................67 IMP Spotlight: Rejuvenation ............................... 71 3 4
O INTR ANET PL OPLE PE Introduction PURPOSE – For years, we’ve been responding and adapting to climate change. Since 2008, we’ve tracked emissions, and we’ve reduced our T 2021 carbon intensity since 2011. Over the next decade, we’re lowering T REPOR our emissions in line with climate science while expanding our C A APPENDIX commitments to responsible materials, fair labor and diverse teams. IMP 5 6
2020 transformed the world, from the global pandemic to heightened social and environmental awareness. In 2021, climate change accelerated alongside changes in the way we live and work. In my home state of O California, increasingly intense wildfires are devastating people, property, O air quality and ecosystems. Living in this new normal requires resilience— a quality that our teams display every day as they meet new challenges. INTR INTR In 2021, Pottery Barn launched a program to plant a tree for every piece of indoor wood furniture* sold. In partnership with the Arbor Day Foundation, our goal was to plant three million trees by 2023. In early 2022, we were already halfway to our target, so we expanded the goal across our brands and doubled it to six million trees planted by 2023. ANETANET 75,000 of those six million trees were recently planted in California, where we’re re-establishing native PLPL forests—including stands of big-cone Douglas fir—to make land and watersheds more resilient. Planting trees alone won’t save the planet, but it’s one way we’re adapting to the environmental and social challenges that come with climate change. We’re also one of the first home furnishings brands to set a Science-Based Target for reducing emissions across our value chain. We’ve decreased our carbon intensity since 2011, and now we’re applying learnings from our own operations to our entire supply chain. Since 2019, when we began tracking our value chain A LETTER FROM OUR CEO emissions, our carbon intensity has decreased by 24% while revenue has grown by 40%. Sustainability is core to our business strategy. OPLEOPLE PEPE We stand out in our industry for meeting and exceeding ambitious goals. Like any company, we’ve had setbacks, but they’re far outnumbered by our successes. In 2020, we surpassed our targets to pay $3M in Fair Trade Premiums (we paid $7M) and reach 100k+ supply chain workers with wellbeing programs (we “Today, 46% of our products reached 103k). In 2021, we doubled down, committing to an additional $10M in Fair Trade Premiums by 2025 and, by 2030, 75% of products will be sourced from suppliers who offer worker wellbeing programs. We’re also sourcing from more diverse suppliers through programs like the National Minority Supplier Development represent one or more of our social Council and the 15 Percent Pledge. or environmental initiatives, and As changes accelerate, we’re building on decades of progress in sustainability and social impact. In this PURPOSEPURPOSE report, we share the interconnected ways we’re navigating everything from climate targets to community that number keeps growing. We programs. We’re creating a resilient future not just for our company, but for our people and our planet. stand out in the market for original T 2021 design, unmatched quality and an T REPOR C A APPENDIXAPPENDIX industry-leading assortment of IMP LAURA ALBER, PRESIDENT & CEO responsibly made products.” Williams-Sonoma, Inc. 7 *Indoor wood furniture containing at least 80% wood; upholstery is excluded. 8
OUR STRATEGY: GOOD BY DESIGN O INTR For almost two decades, Williams-Sonoma, Inc. has built our business around sustainable practices, ANET investing resources and meeting PL ambitious commitments. This is what it means to be Good By Design. STRATEGY Certified products, we invested in sustainability OPLE Our key differentiators are our in-house design, programs because they’re good for our business PE our digital-first strategy and our values. and the right thing to do. From our factories to your Throughout our company, we prioritize the health home, we’re united in a shared purpose to care for of our planet, the wellbeing of our people and a our people and our planet. shared sense of purpose—the imperative to foster long-term, sustainable growth for our company OUR PILLARS and to drive positive change in our industry. Our three pillars of Planet, People and Purpose are the cornerstones of our work. Within these pillars, we identified impact areas and set We’re proud to be the ambitious goals that our family of brands plays CLIMATE TARGETS PURPOSE world’s largest digital-first, an active role in achieving. As a global company, we recognize our influence to drive meaningful design-led and sustainable change across our industry. 100% 50% 14% home retailer. INDUSTRY IMPACT In 2021, we set a Science-Based Target for Carbon-neutral in Scope Absolute reduction in Absolute reduction in T 2021 emissions reduction and leading goals for product 1 & 2 Emissions by 2025 Scope 1 & 2 Emissions Scope 3 Emissions** COLLABORATION sustainability and worker wellbeing. We’re in the by 2030* by 2030* Our long-term work with credible and globally decisive decade for climate action and meaningful T REPOR recognized industry partners is embedded in C progress toward the UN Sustainable Development A APPENDIX our products. From using Forest Stewardship Goals. As a signatory to the UN Global Compact, *Based on 2019 baseline. **From materials, production, transportation & product use. IMP Council® (FSC®)-certified catalog paper and wood, we’re committed to operating as a responsible to introducing wood and fiber sourcing policies, to business and elevating our ambitions to address becoming the first home retailer to offer Fair Trade global sustainability issues. 9 10
OO Company-Wide Goals Just Started In Progress Completed INTRINTR GOAL PILLAR TARGET DEADLINE PROGRESS TO DATE STATUS 50% responsibly sourced wood PLANET 2021 60% 100% responsibly sourced cotton PLANET 2021 94% ANETANET 6% IN TRANSITION* PLPL 6M trees planted with the Arbor Day Foundation PLANET 2023 1.5M 75% of waste diverted from landfills** PLANET 2025 43% Additional $10M paid in Fair Trade Premiums PEOPLE 2025 $3M OPLEOPLE PEPE $50M invested in Nest Certified products PEOPLE 2025 $9M 85,820 Carbon neutral in Williams-Sonoma, Inc. operations (Scopes 1 and 2) PLANET 2025 REMAINING METRIC TONS TO DECREASE ∆ 50% absolute reduction Scope 1 & 2 for Science-Based Target (2019 baseline)*** PLANET 2030 2.4% PURPOSEPURPOSE ∆3.7% 14% absolute reduction Scope 3 for Science-Based Target (2019 baseline)**** PLANET 2030 WITH 24% CO e 2 INTENSITY DECREASE 75% of product purchases from suppliers who offer worker wellbeing programs PEOPLE 2030 16% T 2021T 2021 75% of products labeled with one or more of our social or environmental initiatives PURPOSE 2030 46% T REPORT REPOR CC AA APPENDIXAPPENDIX Metrics as of 12/31/2021. Landfill diversion and emissions metrics as of 01/31/2021. *Remaining 6% of cotton includes 3% in transition, ***Compared to a 2019 baseline. We revised our 2019 baseline after identifying an incorrect emission factor. ****Our Science- IMPIMP 2% not going forward and 1% being confirmed. **Goal extended from 2021 to 2025. See pages 37–38 for details. Based Target Scope 3 goal includes three categories: Purchased Goods & Services, Downstream Transportation, and Use of Sold Products, which increased 3.7% compared to 2019 baseline, while intensity for those categories decreased 26% (and 24% for all Scope 3 categories) compared to a total Scope 3 emissions increase of 7%. We revised our 2019 baseline after identifying an inconsistency and refining our data. See pages 23-26 for details. 1111 1212
METHODOLOGY & GOVERNANCE O INTR We’re proud that 67% of our Board members identify as women. GOVERNANCE OF ESG: OUR BOARD AND BEYOND We review sustainability programs BOARD OF DIRECTORS ANET with our Board regularly and publish CEO Nominations, Corporate Governance & Social PL updates in our annual Proxy Responsibility Committee Brand Chief General Chief Chief Chief Presidents Tech. Counsel Talent Financial Operating EVP of Sourcing, Statement and Impact Report. Officer Officer Officer Officer Quality Assurance & Sustainable Development in partnership with Sustainability Team Our commitment to transparency includes clearly We consider employees, Brand DCs & OPLE defining the methodology behind our reporting. & Store Tech Legal Human Investor Procure- ESG Leadership Working Group PE We report on our progress annually, and our customers, shareholders, Teams Teams Teams Resources Relations ment disclosures address the sustainability issues most suppliers, nonprofit partners, relevant to our business. membership organizations, RELEVANT TOPICS trade associations and To identify the sustainability topics most relevant to our business, we engaged key internal communities to be core NOMINATIONS, ESG MANAGEMENT ESG LEADERSHIP stakeholders and benchmarked against industry CORPORATE WORKING GROUP peers and reporting frameworks, such as the stakeholder groups. GOVERNANCE & SOCIAL Our Executive Vice President PURPOSE Sustainability Accounting Standards Board (SASB) RESPONSIBILITY of Sourcing, Quality Assurance Our cross-functional ESG Standard for Multiline and Specialty Retailers & REPORT SCOPE COMMITTEE and Sustainable Development Leadership Working Group Distributors (version 2018-10). We mapped those The data in this report is based on activities manages a dedicated global meets every two months and topics against key risks identified in our annual carried out during fiscal year 2021 (02/01/2021– Composed of Directors who team of sustainability helps drive the integration of financial reporting, and we set goals to address 01/30/2022). We consider the impact of our global act independently of WSI professionals. Working WSI’s ESG strategy across those issues throughout our business. operations and value chain in the scope of this management, our Nominations, across the company, these the business. T 2021 report. All entities in our direct operations are Corporate Governance team members implement STAKEHOLDER ENGAGEMENT included in environmental statistics. Our global and Social Responsibility sustainability policies and We intend to build on this process by engaging workforce including full-time, part-time, and Committee oversees our programs, updating the T REPOR sustainability strategy, policies C further with core stakeholder groups, and we’re temporary or seasonal associates are represented and programs. Committee quarterly and full A APPENDIX reviewing how to formalize our process to capture in our demographic statistics. This report is Board of Directors annually. IMP their feedback. Those learnings will inform our informed by the Task Force on Climate-Related subsequent reporting. Financial Disclosures (TCFD) and the Global Reporting Initiative Standards (GRI). 13 14
O O Awards & Accolades INTR INTR – BARRON’S 100 BLOOMBERG ANETANET MOST SUSTAINABLE U.S. GENDER EQUALITY INDEX PLPL COMPANIES 2018–2022 2021–2022 GREAT PLACE TO WORK® HUMAN RIGHTS CAMPAIGN OPLEOPLE CERTIFIED COMPANY CORPORATE EQUALITY PEPE JUNE 2021–JUNE 2022 INDEX 2021-2022 “Talking the social and eco REPREVE® CDP NORTH AMERICA CHAMPIONS OF SUSTAINABILITY SUPPLIER ENGAGEMENT RATING PURPOSEPURPOSEresponsibility talk is all the fashion... 2018–2022 LEADERBOARD 2021* but actually walking the walk is a whole other story. And it’s a story FORBES SUSTAINABLE T 2021 BEST EMPLOYERS FURNISHINGS COUNCIL that Williams-Sonoma, Inc. is T REPOR FOR WOMEN 2019–2021* WOOD FURNITURE TOP C A APPENDIXAPPENDIXincreasingly not just telling but doing.” & DIVERSITY 2020–2022 SCORER 2018–2021* IMP —Forbes, 07/06/2021 *2022 results not yet published. 15 161616
2021 HIGHLIGHTS O We made progress toward INTR Increased number of Set a goal to be Received our climate goals and invested WOMEN’S PROMOTIONS AND Carbon ST. JUDE THANKS AND GIVING® Partner of the Year Award in social programs across DIVERSITY OF NEW HIRES Neutral our supply chain. ANET IN OUR OPERATIONS BY 2025 PL Committed to an additional Committed to an additional EXPANDED SOCIAL 46% COMPLIANCE AUDIT SCOPE TO $10M $50M Of our products are now labeled REACHED 65,093 WORKERS OPLE with one or more of our social PE IN FAIR TRADE and environmental initiatives, 89% PREMIUMS BY 2025 IN NEST CERTIFIED To date through HERproject™ and we’re well on our way to ETHICALLY HANDCRAFTED worker health, financial inclusion and gender equality of order volume 75% BY 2030 PRODUCTS BY 2025 training programs PURPOSE Raised DIVERTED 93 MILLION minimum wage to BOTTLES TO DATE Launched our Published a T 2021 made of plastic bound MATERIAL $15/hour for oceans and landfills INNOVATION Science-Based Target through our use of REPREVE LIBRARY for U.S.-based hourly T REPOR recycled polyester C and vetting process FOR EMISSIONS REDUCTION ACROSS OUR VALUE CHAIN BY 2030 associates across A APPENDIX all workforces IMP 17 1818
O INTR ANET PL OPLE PE Planet PURPOSE – In 2021, we led our industry as one of the first home furnishings brands to set a Science-Based Target for T 2021 emissions reduction across our value chain. With products at T REPOR the center of our strategy, we continuously seek innovative C A APPENDIX and low-impact ways to drive sustainable growth. IMP 19 20
CLIMATE & ENERGY: SCOPE 1 & 2 O INTR RENEWABLE ENERGY power to the grid. In 2021, we began purchasing Our roadmap to reduce emissions We’re transitioning to renewable energy wherever renewable energy at the brand’s Nicolai Factory. possible, and we have a 10-year roadmap in place focuses on efficiencies and renewable to achieve our climate goals. In 2021, we turned on The city of Portland named green power at our distribution center in Georgia. In 2022, we have plans to add solar power to three Rejuvenation a Gold energy—with a goal of carbon neutral locations: two distribution centers in the U.S. East Certified Sustainable operations by 2025. Coast and our hub in Richmond, California. Company—its highest ANET In 2021, we made our standard for sustainability. PL first renewable energy SCOPES 1-2: OUR OPERATIONS 425 store lighting retrofits since 2011. At our San purchases, with plans to To reach our climate goals, we currently do not Francisco offices, we invested in two large projects purchase carbon offsets. Instead, we’re focusing ENERGY EFFICIENCY to make our heating and cooling more efficient: purchase more green power on achieving our carbon neutral goal by making Efficiencies have focused on lighting retrofits 1) We installed a state-of-the-art HVAC system changes to our business through retrofits, across our facilities. We’ve designed new stores that self-manages and accounts for variables like and install solar in 2022. efficiencies, renewable energy and driving with energy efficient systems and LED technology the time of day and outside temperature, and 2) We reduction in our footprint. We’re researching high- OPLE from the start. We’re also retrofitting existing installed a new cooling tower, which works with Rejuvenation leads our brands in renewables— quality offsets to supplement our climate efforts, PE stores with LED light and replacing old LEDs our HVAC system to optimize temperatures. by paying a fee on their energy bill, they support and we’ll disclose those purchases if and when we with new technology, completing approximately Portland General Electric in adding solar and wind invest in offsets to reach our carbon neutral goal. SCOPE 1 & 2 GHG EMISSIONS, GRAND TOTAL* FY19 FY20 FY21 TRACKING OUR PROGRESS Just Started In Progress Completed PURPOSE 100000 2025 2030 PURPOSE 80000 CARBON NEUTRAL OPERATIONS 1.5°C SCIENCE-BASED TARGET 60000 Zero-carbon footprint (Scope 1 & 2). 50% Scope 1 & 2 and 14% Scope 3 absolute reduction from 2019 baseline. 40000 STATUS: JUST STARTED STATUS: JUST STARTED T 2021 20000 0 2021 UPDATE 2021 UPDATE T REPOR C Scope 1 Emissions (MT) Scope 2 Emissions (MT) Scope 1 & 2 Emissions (MT) We reduced emissions though We developed a roadmap for reducing our value chain A APPENDIXAPPENDIX efficiencies and green power. emissions (page 25), launching in 2022. IMP *Deloitte & Touche LLP performed a review on management’s assertion related to our Fiscal Year 2021 Statement of Greenhouse Gas (“GHG”) Emissions. Their assurance statement is available at this link.. 21 22
CLIMATE & ENERGY: SCOPE 3 O INTR We’re focused on production and raw materials—the two areas of our supply chain that produce the most emissions. ANET SCOPE 3: OUR VALUE CHAIN To further reduce supplier emissions, we worked PL Most of our emissions occur from production and with a select subset of vendors to roll out an raw materials in our supply chain. We can’t achieve environmental engagement initiative focused our goals alone, which is why we’ve created two exclusively on GHG emissions reduction. strategies for meeting our Science-Based Target: a vendor engagement plan and a raw materials We identified the highest emitting vendors across roadmap, which we’re implementing in 2022. our supply chain, representing 80% of our product and manufacturing emissions, and will continue OPLE PRODUCTION working directly with them to collect better data PE We collect environmental data from our vendors and identify opportunities to reduce emissions. through the Higg Facility Environmental Module MATERIALS (FEM). In 2021, we added Higg FEM scores to our To reduce product emissions, we developed a vendor scorecard, which our teams use to evaluate roadmap (see pages 33-34) to guide teams in vendor performance across multiple criteria and choosing more responsible materials—from make sourcing decisions. We can now track our product design to vendor sourcing. Through vendors’ emissions and environmental impacts as analysis, we identified wool, cotton, polyester and we work towards our Science-Based Target. CDP medium-density fiberboard as our highest impact EMISSIONS EXPLAINED included WSI in its 2021 Supplier Engagement materials. They will be our strategic focus over the Rating LeaderBoard for our engagement with coming years. We’re also addressing emissions PURPOSE suppliers on climate targets. from product use, seeking ways to create more energy efficient, low-impact options for customers. Scope 1 Scope 2 Scope 3 Evaluating a vendor’s emissions is critical to Emissions from burning Emissions from the Emissions generated from T 2021 achieving our Science- fuel for vehicles, heating electricity we purchase our full value chain outside Based Target, so we and generators used in to power our stores, our operations, from farms T REPOR our operations distribution centers to factories to homes C rolled out new vendor and offices A APPENDIX IMP scorecards and engagement programs in 2021. 23 24
CLIMATE & ENERGY: SCOPE 3 O INTR Since 2019, our CO e intensity has SCOPE 3 EMISSIONS* FY19 FY20 FY21 2 Purchased goods and services decreased from .643 to .491—with (SB Materials and roduction revenue growth of 40% compared to a se of sold product (SB …roduct†s energy consution ANET Scope 3 emissions increase of just 7%. pstream transportation PL Fro suliers Downstream transportation SCOPE 3 EMISSIONS • 2022: We’re launching our preferred materials (SB o custoers Since our baseline year of 2019, our CO2e intensity and vendor engagement strategy with 40+ (measured in kg of CO per dollars of revenue) phase one vendors, and we’re integrating each Product end-of-life 2 manufacturer’s direct energy and emissions ƒeuse, recycling, landfill, etc. decreased from .643 to .491. Materials and production represent our largest impact, requiring data into our vendor scorecards. long-term partnerships with our suppliers to Capital goods OPLE reduce emissions across our value chain. • 2023: We’ll work with phase one vendors on Facilities, e‚uient, etc. PE third-party verification of their energy and In 2020-21, we set our emissions reduction emissions data. They will set their own goals Employee commuting strategy and, in 2022, we launched it across our to reduce manufacturing emissions by o fro or€ value chain. We expect our Scope 3 abatement 20-50% over the next 5–10 years. We’ll also Waste from operations work to show emissions reduction throughout set targets to transition primary materials aste treatent and disosal our value chain in 2023, as we work toward 2030 to preferred alternatives. climate goals. Fuel and energy emissions • 2023: We’ll engage appliance suppliers Energy not included in coe 12 ROADMAP TO REDUCTION associated with highest product use emissions PURPOSE Here’s how we’re prioritizing emissions reduction on a roadmap for more efficient energy ratings. Franchise emissions across our value chain, from our 2019 baseline to Energy used by franchises our 2030 targets. • 2025: We’ll expand our energy and emissions data verification, vendor engagement strategy Business travel • 2020: We partnered with industry experts to and goal setting to an additional 30+ vendors. Air, car and hotel T 2021 audit our complete carbon footprint, resulting in a 2019 baseline for measurement. • 2027: We’ll reach 100% vendor engagement 0 500K 1M 1.5M 2M around direct energy and emissions data T REPOR • 2021: We set and announced our Science- collection and reduction strategies. C Based Target and introduced mandatory REFINEMENT OF SCOPE 3 EMISSIONS We updated our 2019 baseline GHG emissions after identifying an inconsistency in the fiscal A APPENDIX supplier direct energy and emissions data. We • 2030: We’ll complete our transition to 75% year 2019 data. This update also accounts for more refined data—such as product weight per SKU and life cycle assessment emission IMP also identified key materials and vendors to preferred materials across key categories. factors for key materials. With a more accurate estimate of our Scope 3 emissions, we adjusted our 2019 baseline, applying the calculation changes to both fiscal year 2019 and 2020 data. *All relevant Scope 3 categories were assessed and defined according to prioritize for our emissions reduction rollout. the Greenhouse Gas Protocol. Categories excluded from reporting due to lack of material relevance to the business include: Upstream Leased Assets, Downstream Leased Assets, Processing of Sold Product and Investments. The verification has been conducted by Optera to achieve a limited level of assurance over Scope 3 GHG emissions. The full report can be found online. 25 26
CLIMATE & ENERGY: NATURAL RESOURCES O INTR In 2021, we explored expansion of our climate work to forests, water and nature-based solutions. ANET BEYOND ENERGY POTTERY BARN COMMITS TO PL In 2021, we expanded our CDP Climate Disclosure PLANTING 3 MILLION TREES WITH and submitted our first public CDP Forests THE ARBOR DAY FOUNDATION Disclosure, receiving a B–, higher than the averages On January 1, 2021, Pottery Barn launched for discretionary retail and North America. a commitment to plant three million trees by 2023 to protect and restore the world’s most We also focused on water, which is intertwined vulnerable forests. In partnership with the Arbor with climate change. We recognize the risk that Day Foundation, the largest nonprofit membership OPLE water presents to our business, and began working organization dedicated to planting trees, we PE with the World Wildlife Fund (WWF) to determine committed to planting one tree for every piece of which areas of our business face the most water select indoor wood furniture sold*. risk. In 2022, we will conduct a complete water risk assessment. One year later, and halfway to our goal, we’ve planted over 1.5 million trees. We also pledged In 2021, we joined WWF’s Forests Forward, our efforts to the World Economic Forum’s 1t.org, a program that engages with companies and a global movement to conserve, restore and grow stakeholders around the globe to deliver effective one trillion trees by 2030. nature-based strategies for forests, helping achieve IMPACT OF 1.5M TREES PLANTED* both business and sustainability goals. We’ll work In 2022, we announced a PURPOSE with Forests Forward to continue implementing and investing in sustainable forest practices to new commitment to plant responsibly use, protect and restore the world’s six million trees by 2023, 1.5B 68,000 1.1M forests from threats such as deforestation and forest degradation. doubling our original goal, T 2021 and expanding it across our Gallons of avoided Tons of pollutants Metric tons of water runoff removed from the air CO sequestered family of brands. 2 T REPOR C *Metrics provided by the Arbor Day Foundation. Based on 40-year estimates calculated using i-Tree, developed by the U.S. Forest Service, A APPENDIX and based on 1.5M trees planted across many projects. IMP *Indoor wood furniture containing at least 80% wood; upholstery is excluded. 27 28
SPOTLIGHT: POTTERY BARN & THE ARBOR DAY FOUNDATION REFOREST THE U.S. “As a leader in sustainability, we’re TREES PLANTED* focused on sourcing responsibly, using 115,000 O FSC-certified wood and now, fighting Oregon INTR deforestation in areas that need it most.” —Marta Benson, President, Pottery Barn 75,000 California 405,000 Michigan OREGON ANET Columbia River Basin & 50,000 PL Willamette National Forest Virginia 400,000 Florida VIRGINIA Chesapeake Bay 250,000 Reforestation OPLE CALIFORNIA MICHIGAN Mississippi, PE Sheep Fire & Southern California Huron-Manistee Arkansas National Forest Wildfire Reforestation & Louisiana 150,000 MISSISSIPPI, ARKANSAS Alabama & LOUISIANA & Texas Mississippi River Valley PURPOSE ALABAMA 15,000 & TEXAS FLORIDA Long Leaf Elgin & Tyndall Brazil Pine Forests Air Force Bases CASE STUDY: 55,000 T 2021 CALIFORNIA’S NATIONAL FORESTS India In partnership with the Arbor Day Foundation, we focused our efforts on recovering land and watersheds 21,000 T REPOR damaged by wildfires. By removing invasive species, C Indonesia A APPENDIX reducing pollutants and re-establishing native IMP ecosystems—including stands of the big-cone Douglas fir—we’ll create better habitats for the California red- legged frog, arroyo toad and California condor. *Total 1,535,541 trees planted by the Arbor Day Foundation in partnership with Pottery Barn as of 02/01/2022. 29 30
RESPONSIBLE MATERIALS O INTR RESPONSIBLE WOOD & COTTON WSI is committed to only purchasing wood and After driving progress on responsible Building on the progress of our wood and cotton paper obtained from known, legal and responsibly goals, we’re expanding our work to other materials. managed forests with proper chain-of-custody wood and cotton goals in 2020–21, By aligning responsible materials with our climate documentation. Our overall usage of wood (meters 3 strategy, we’re making materials a critical element cubed) grew by 8.6% from 2020 to 2021. The m of our Science-Based Target. volume of FSC-certified wood we purchased, or we took our strategy further, aligning our “Best” category, grew by 7% and the volume We also recognize that responsible materials used in our Better category grew by over 93%. materials with our climate strategy. increasingly impact both environmental and Our overall percentage of Responsibly Sourced ANET social issues. With this framing, we adopted Wood decreased from 64.5% in 2020 to 60% in PL and expanded on Textile Exchange’s Preferred 2021, driven mostly by a drop from “Good” to Fiber and Material Matrix to guide our work “Acceptable” due to stricter classification around 50% RESPONSIBLE WOOD* Good Better Best going forward. We plan to focus first on fibers imported wood under Indonesia’s SVLK timber beyond cotton, expanding to all materials in legality assurance system alongside an increase in the coming years. overall imported wood usage in Indonesia. 2021 20% 16% 24% 60% total WOOD COTTON 65% We exceeded our 50% responsibly sourced wood As of 2021, 94% of our cotton is responsibly OPLE 2020 31% 9% 25% total goal one year early, with over 60% in 2020. As sourced, with a remaining 3% in transition, 2% PE one of our furniture’s largest-volume materials, not going forward and 1% being confirmed. In the 2019 19% 10% 18% 47% responsible wood remains key to preventing coming years, we remain committed to maintaining total deforestation and preserving ecosystems. 100% responsibly sourced cotton across 50% goal Williams-Sonoma, Inc. ** We continue to lead the 100% RESPONSIBLE COTTON Good Better Best In Transition industry, with a Top Scorer 2021 58% 3% 33% 94% 6% ranking on the Sustainable PURPOSE total Furnishings Council’s Wood 2020 54% 4% 31% 89% Furniture Scorecard four years total 75% in a row. 2019 44% 4% 27% total T 2021 100% goal We source an assortment of wood—including FSC®-certified, reclaimed and recycled wood— * in our products. We categorize our wood using a T REPOR CALCULATION & SCOPE Tracked by Sourcemap reporting and SKU-level wood volumes from vendors. FSC® volume verified by Rainforest C Alliance. Percent of responsibly sourced wood in our furniture in cubic meters. Responsibly sourced wood is categorized through a Good- Good-Better-Best approach, along with our Fiber, A Better-Best approach: Best—FSC®-N0002185; Better—Programme for the Endorsement of Forest Certification (PEFC from low-risk countries), Wood and Paper Procurement Policies. These APPENDIX Rediscovered wood (reclaimed/recycled and orchard wood sources), FSC® Controlled Wood; Good—verified legal and low-risk wood for legality IMP ** (as defined by Preferred by Nature’s Timber Risk Assessments and FSC’s National Risk Assessments). Tracked by vendor textile survey. Percent underpin our responsible wood goal and continue of responsibly sourced cotton used in our textiles in pounds. Responsibly sourced cotton is categorized through a Good-Better-Best approach: to guide our sourcing efforts. Best—Global Organic Textile Standard; Better—Organic Content Standard and recycled cotton; Good—Better Cotton™ and STANDARD 100 by OEKO-TEX® certified products. Total reflects the volume of responsibly sourced cotton as a percent of WSI’s total volume of cotton. Remaining 6% of responsibly sourced cotton includes 3% in transition, 2% not going forward and 1% being confirmed. 31 32
PREFERRED & INNOVATIVE MATERIALS O INTR To create sustainable products, PREFERRED MATERIALS FRAMEWORK • Soil and land use • Resource use and waste we start with design. This year, we In 2021, we created • Human rights • Animal welfare a Preferred Materials created tools to help our internal Framework to evaluate We aligned our methodology with the Textile Exchange’s Preferred Fiber and Material Matrix, individual materials. which was released to members in 2021 and made teams easily choose more responsible public in 2022. We’re transitioning to preferred ANET The framework supports our Material Innovation materials to reduce our environmental impact PL materials from the start. Library and our broader emissions reduction and emissions in support of our Science-Based strategy. We use a lifecycle approach to determine Target. For example, by prioritizing alternatives to what’s “preferred,” assessing each material against conventional cotton such as recycled or organic, environmental and social impacts including: we make progress against our climate goal. INNOVATION innovative materials and propose a product. We received 14 concept submissions from five different • Climate and GHG emissions As we transition to this framework, we’ll work with To guide our transition to departments across Rejuvenation, focused on • Water use our brands to raise the bar—using materials that recycled, bio-based and renewable materials. This • Chemicals and toxicity reduce our environmental impact. OPLE lower-impact, recycled and year, we’ll expand our Material Innovation Library PE responsible materials across to our vendors, as they often provide us with research, development and innovative ideas. our brands, we launched our In addition to raw materials, we consider the Material Innovation Library. chemicals and finishes used in our products. We use certifications including GREENGUARD The library provides a consistent way of defining, and STANDARD 100 by OEKO-TEX® to test our vetting and sharing the raw materials we consider company-produced products and make sure “preferred” for products. This process allows us they’re free from harmful chemicals and volatile PURPOSE to evaluate innovative materials, such as leather organic compounds (VOCs). alternatives, and determine how to use them in product development. Pottery Barn Kids met its goal to produce 100% GREENGUARD Gold Certified furniture in 2020. Wherever possible, we divert materials from Now, our other brands are expanding their certified T 2021 waste streams and use recycled and lower impact products: 100% of Williams Sonoma Home’s materials like Tencel™ to reduce our environmental upholstery is GREENGUARD Gold certified, impact. We train brand and merchant teams to use Pottery Barn Teen achieved 100% GREENGUARD the library, integrating sustainable materials into Gold Certified wood furniture in 2021 and is on T REPOR products at the concept and design phases. track to offer 100% GREENGUARD Gold Certified C A APPENDIX upholstery by the end of 2022. IMP In 2021, the Rejuvenation brand went further, hosting a Sustainable Materials Competition and issuing a company-wide open call to research 33 34
DATA COLLECTION & SUPPLY CHAIN VISIBILITY O INTR Accurate data enables us to better understand environmental and social impacts and risks across our supply ANET chain to develop better solutions. PL OPLE TRACKING OUR PROGRESS Just Started In Progress Completed PE 2021 2021 2023 50% RESPONSIBLY 100% RESPONSIBLY 6M TREES PLANTED SOURCED WOOD SOURCED COTTON In unity with our family of One of our largest-volume We remain committed to brands, WSI recently doubled We continuously raise the bar to collect and verify We’re exploring approaches to dive deeper into materials, responsible wood is maintaining 100% responsibly its goal, pledging to plant 6M quality vendor and raw material data, using both our supply chain, beyond vendors to raw materials key to preventing deforestation. sourced cotton across WSI. trees by 2023. a bottom-up and a top-down approach. Our global at each stage of production. With corporate-wide PURPOSE STATUS: EXCEEDED STATUS: COMPLETED STATUS: JUST STARTED sustainability team collects thousands of vendor sustainability goals that require action from each chain-of-custody and transaction certificates to of our brands, robust internal reporting is key. We support product sustainability claims. create mid-year and year-end reports for each 2021 UPDATE 2021 UPDATE 2021 UPDATE brand, presenting overall progress to our goals, as We exceeded our 50% As of 2021, 94% of our cotton Pottery Barn surpassed the In 2021, we implemented Sourcemap, a new tool well as each brand’s individual contributions. T 2021 responsibly sourced wood is responsibly sourced, halfway point, planting 1.5M to enable better data collection and traceability goal one year early, with the remaining 3% in trees—well on their way to of raw materials. Moving forward, we will use Our reports capture SKU-level detail and raw reaching >60% in 2020 and transition, 2% not going forward their original 3M goal. Sourcemap to focus on key materials, such as material content, allowing us to tie individual T REPOR wood, cotton and leather. Supply chain issues products to our overarching corporate C maintaining our commitment. and 1% being confirmed. A APPENDIX are both environmental and social, and we’re sustainability goals. What gets measured gets IMP using tools to gain greater visibility into labor and managed, and the regular cadence of our reporting environmental risks. combined with granular data results in more effective conversations about driving progress. 35 36
WASTE & CIRCULARITY O INTR We reduced waste by recycling, reducing LANDFILL DIVERSION* DCs/HUBS STORES OFFICES packaging and increasing reuse through TOTAL DIVERSION RATE renewal, resale and donations. 2021 43% total 2020 45% total ANET PROGRESS & ACTION PLAN don’t directly manage waste. To drive change, we 2019 49% total 75% goal PL Meeting our 75% landfill diversion goal has been continue to work with industry associations and challenging due to the lack of national recycling landlords—adding language to leases to support DCs/HUBS DIVERSION RATE infrastructure. With different services and landfill diversion, demonstrating the importance of providers in every location, it’s taken longer than environmental goals to our partners. 2021 48% anticipated to standardize data and systems. Realizing we needed more time to reach 75% DISTRIBUTION CENTERS 2020 51% landfill diversion, we extended our goal from Throughout 2021, our distribution centers dealt OPLE 2021 to 2025. 2021 saw progress with internal with rapid business expansion and challenges due 2019 56% 75% goal PE engagement across the organization to identify to COVID-19—from prioritizing the health and implement solutions. Our retail stores and and safety of our associates to disruptions in distribution centers (DCs) contribute the most to recycling services. Even with these setbacks, we: STORES DIVERSION RATE our waste footprint, and they’re also our greatest 1) Refined data collection from our waste and levers to achieve change. recycling providers, 2) Ensured that cardboard, 2021 40% foam and plastics entered recycling streams, 3) 2020 40% STORES Embedded software logic to filter returns into To move closer to our goal, we created a resale, donation or renewable/recycling streams 2019 45% 75% goal retail taskforce with representatives from our and 4) Launched a portal to streamline donations distribution centers, store operations, procurement, to nonprofit partners. We continued to work with PURPOSE real estate, supply chain, and sustainability teams. donation partners, such as Good360, Habitat for OFFICES DIVERSION RATE Our stores implemented major initiatives including: Humanity, and St. Vincent de Paul Society. Our new 1) Backhauling expanded polystyrene (EPS) foam donation process drives support and resources to 2021 41% to our distribution centers where it can be sent to these organizations. recyclers, 2) Batteries and lightbulb recycling at all 2020 41% T 2021 stores and 3) Donation partnerships for unsellable With new systems in place, products. We also continued conducting waste 2019 55% 75% goal audits to identify further solutions. In our managed we aim to drive significant T REPOR locations, where we directly control operations, C A we rightsized waste and recycling collection progress in 2022, with a goal * APPENDIX services in late 2021 CALCULATION & SCOPE Calculated since 2017 by Rubicon annual tonnage report, WSI DC monthly report and manual data IMP —matching our 75% diversion of reaching 75% landfill collection. Percent of recycled and composted volume diverted from landfill in metric tons. Scope includes distribution centers, goal. In stores, one of our biggest challenges is in-sourced hubs, corporate offices and retail stores in North America. In 2016, EPA’s factor for waste changed from 225 pounds leasing in larger facilities, such as malls, where we per yard to 138. The new factor was applied in 2017–2021. We also revised our FY20 landfill metrics after identifying an incorrect diversion by 2025 or sooner. categorization of waste type. BOARD DIVERSITY METRICS 2021 37 38
WASTE & CIRCULARITY: PACKAGING O INTR In 2021, we made significant progress transitioning vendor, brand and retail packaging to certified, recycled and ANET curbside-recyclable content. PL PACKAGING Materials and production are a significant portion Our strategy encompasses brand, retail, of our Scope 3 emissions, so it’s also key that our distribution center and protective packaging and packaging protects products while we transition to engages teams across the company as well as our higher curbside-recyclable content. For protective broader vendor base. For protective packaging, we packaging, we are focused on three core areas: OPLE continue to improve materials and recyclability 1) Reducing the overall volume of packaging PE while ensuring our product is protected to reach materials, 2) Increasing the use of recycled our customers undamaged. content in packaging and 3) Transitioning to higher For example, the polybags used to package our Our stores also shifted paper products to recycled usage of curbside-recyclable materials as an textiles are now 40% post-consumer recycled content in bags, mailers and box fillers, and alternative to harder-to-recycle materials. content, we reduced EPS in packaging for over Pottery Barn Kids transitioned their gift wrap to 4,000 decorative accessories this past year, recycled content. and our efforts to reduce overall package size eliminated over 14,000 cubic meters of packaging In stores, all shopping volume. Going forward, we’ll continue to reduce excess packaging, reduce overall package size and bags now contain 40% TRACKING OUR PROGRESS Just Started In Progress Completed transition key materials to lower-impact options. post-consumer, FSC®- PURPOSE In 2021, our brand packaging teams aligned on certified recycled content. 2021 STATUS: GOAL EXTENDED a strategy to eliminate unnecessary packaging and transition materials. Together, Pottery 75% OF WASTE DIVERTED Barn, Pottery Barn Teen, Pottery Barn Kids and T 2021 FROM LANDFILLS 2021 UPDATE West Elm strategized ways to reduce waste and We’re committed to 75% landfill diversion, We diverted 43% waste from landfills. With new eliminate polyvinyl chloride (PVC) plastic from our and we’ve extended our goal from 2021 systems for operational and packaging waste, supply chains. After negotiations with suppliers, T REPOR they eliminated vinyl bag packaging from curtains, C to 2025—with an action plan to achieve 75% we extended our goal to 2025 or sooner, and will transitioning to ribbons with paper hang tags. A APPENDIX waste diversion in the coming years. continue to report on our progress. The teams also invested resources to work with IMP external partner Material Connexion to provide guidance on sustainable packaging alternatives. 39 40
WASTE & CIRCULARITY: RECYCLING & RENEWAL O INTR RECLAIMED & RECYCLED MATERIALS donating fabric rolls to their Upholsterer Training Across our brands, we diverted program. In 2021, we expanded our partnership Pottery Barn Teen is leading with furniture reseller AptDeco beyond West Elm 93 million ocean-bound and to include Pottery Barn. the development of recycled collections, with REPREVE Currently concentrated in the Northeast and landfill-bound bottles through our Bay Area, AptDeco resells floor models and lightly polyester made from recycled damaged products—and we expect to see our impact grow as they expand their presence into ANET use of REPREVE recycled polyester plastic bottles and ECONYL® more regions. PL to make textiles. nylon made from 100% With participation from recycled waste including 45 stores, we resold over fishing nets and carpets. 2,900 products, giving Our sustainability goals have impacted broader them a new home and company partnerships as well. For example, we OPLE partnered with Capital One to develop and launch avoiding the landfill. PE a new credit card made from 86% recycled plastic. Williams Sonoma is the first of our brands to REUSE, RENEWAL & TAKEBACK develop a product takeback program. Launched We collaborated with The Renewal Workshop as a pilot in Bay Area stores, the program allows in 2020 to create Pottery Barn Renewed, which customers to bring gently used cookware and extends the life of imperfect or returned textiles bakeware to a Williams Sonoma location, and the by selling them at a discounted price and keeping St. Vincent de Paul Society distributes donations them out of landfills. Pottery Barn Renewed to those in need. was named an honoree in Fast Company’s 2021 Innovation by Design Awards in the home category. PURPOSE Expanding on Pottery Barn’s approach to waste reduction, we created a company-wide renewal and reuse committee. Bringing together our supply chain, reverse logistics, sustainability T 2021 teams, brand merchants and more, the committee researches ways to reuse scrap materials and pursue relevant partnerships. T REPOR C Our Sutter Street distribution center partnered A APPENDIX with textile recyclers, such as Martex Fiber and IMP FabScrap, to repurpose scrap textiles. Sutter also partnered with Catawba Community College, 41 42
O INTR ANET PL OPLE PE People PURPOSE – From factory audits to associate equity, we design T 2021 our programs to benefit people—whether they work in T REPOR C our supply chain, stores, distribution centers or offices. A APPENDIX IMP 43 44
ETHICAL PRODUCTION O INTR We’re committed to providing safe, fair and healthy working conditions to AUDITS IN FY2021 the people in our supply chain. 494 89% 88% ANET We continue to raise the bar on ethical production, We adopted new tools that Third-party audits Of total WSI volume Of purchase order PL and we’ve become more sophisticated in our to verify social and covered in audit scope volume in factories with approach to risks—seeking new, data-based monitor our risk and help us environmental compliance A and B audit grades solutions to inform our process. We partner with respond to issues faster, and suppliers who uphold our values and are committed to comply with international standards on labor we’re proactive in continuously and human rights. Our Human Rights Policy, Supply assessing human rights risks in Chain Labor Practices Policy, Vendor Code of To expand our audit scope and capacity building As we brought new suppliers into the audit Conduct and associated implementation standards OPLE govern our approach to ethical production. our supply chain. programs with a better understanding of country- scope, we knew distribution of audit grades PE level and product-category human rights risks, would shift compared to last year, but we wanted we performed a supply chain risk assessment. We to gain further oversight of risk across the value then differentiated our audit approach based on chain. This enabled us to grow more supplier those results. For example, select low-risk relationships based on a shared vision to % OF WSI VOLUME IN A & B-RATED FACTORIES IN SOCIAL COMPLIANCE suppliers were eligible to submit industry-leading improve working conditions in factories and FY19 FY20 FY21 equivalency reports, rather than conduct company- increase our impact. commissioned, third-party audits. 90% CONTINUOUS IMPROVEMENT 88% Last year, we piloted equivalency with select At its core, our social compliance program PURPOSE 88% suppliers. This year, the program has grown focuses on continuous improvement, and we further, allowing more suppliers to focus their combine auditing and capacity-building to help 0% 20% 40% 60% 80% 100% resources on capacity building. The program our suppliers achieve sustainable change. We supports our ability to grow our audit scope work with factories to create a Corrective Action by allocating audit resources to the areas of Plan (CAP) to support and track remediation T 2021 % TOTAL WSI ORDER VOLUME COVERED IN AUDIT SCOPE highest need. progress, building time-bound action plans and FY19 FY20 FY21 follow-up audits to prevent recurrence. We invest In 2021, we expanded our in targeted supplier trainings, all spearheaded by T REPOR 69% our team of on-the-ground experts in our major C 60% scope, auditing 29% more sourcing locations. Where we do not have on-the- A APPENDIX APPENDIX 89% of our purchase volume and ground support, we invest in a third-party CAP IMP management service to support factories in their 0% 20% 40% 60% 80% 100% covering more risk. remediation process. 45 46
ETHICAL PRODUCTION: LABOR, HEALTH & SAFETY O INTR We’re leveraging new tools and technologies to maintain high labor, health and safety standards. ANET FORCED LABOR Working Group, among others. We consider our PL We work to continuously improve and refine our Health and Safety program an aspect of Worker standards. Forced labor and foreign migrant Wellbeing because it goes above and beyond worker risks are rising globally, and we engage social compliance. with credible third parties and industry groups to ensure our social compliance program evolves HEALTH & SAFETY with those risks. Beyond our standard audit To ensure we offer programs that best address our protocol, we implemented a segmentation internal workers’ needs and better understand the most OPLE risk assessment to understand unique risks common social compliance violations, we analyzed PE at different factories based on factors such as noncompliance issues in our audit program. Health country-level and product-category risk. We used and safety emerged as the dominant topic. In the results of the segmentation to develop a risk- response, we dramatically expanded our health and based auditing strategy, allowing us to prioritize safety program and developed relevant trainings. our resources and use them where needed. After a successful pilot, we implemented new We’re also leveraging new technologies as they health and safety training courses at 16 factories, become available. In 2021, we began using a recognizing our global vendors that partnered with screening tool that conducts a comprehensive us to achieve continuous improvements. Remaining scan of media articles and public records for adaptable even amid COVID-19 restrictions, we PURPOSE any mention of our suppliers. The results are piloted to an online version of the training. The analyzed to detect any articles related to forced past two years continued to demonstrate the NEW HEALTH & SAFETY PROGRAM ACHIEVEMENTS SINCE LAUNCH labor or other human rights or environmental importance of our workers’ health and safety, so violations. We then work with suppliers mentioned this training felt particularly timely. to better understand the incident, steps taken on T 2021 remediation and determine whether a specialized In 2020–21, factories in 27 14,000 16 forced labor assessment is required. For all new suppliers, we use this tool to scan for any incidents our health and safety program Factories Workers impacted Additional factories T REPOR at their manufacturing or sub-supplier sites. C saw reduced accidents and completed trainings (approximately) launched trainings A APPENDIX Lastly, we align with industry initiatives to remain higher worker engagement IMP abreast of news and new developments to protect workers, such as the RILA/AAFA Forced Labor and wellbeing. 47 48
ETHICAL PRODUCTION: SUPPLIER ENGAGEMENT O INTR We have a longstanding commitment to supporting global craft traditions. To preserve this cultural heritage, we source Over the past 12 years, V-Weave implemented “No other brand has helped us grow at such a ANET products from our global network of handcraft and many WSI environmental and social sustainability sustainable pace. Because of WSI’s commitment, PL artisan vendors, spanning 13 countries and more practices through the business, and they continue than 10,000 individuals. Founded in 1951, V-Weave to seek opportunities for continued improvement. we can support our weavers and deliver the best is a rug weaving workshop in India, passed down Our work with them demonstrates how supplier from father to son. Today, it’s run by the fourth relationships evolve over the years to create quality on-time.”—Nikhil Khera, V-Weave generation of master weavers. Their rugs are hand- tailored solutions and drive progress where spun, hand-washed and hand-woven on traditional needed. Together, we learn valuable lessons as we wooden Indian handlooms. collaborate to achieve shared goals. MILESTONES: PARTNERING WITH V-WEAVE ON ETHICAL PRODUCTION OPLE PE NEST SOCIAL AUDIT CERTIFICATION RESPONSIBLE MATERIALS V-Weave participates in WSI V-Weave receives V-Weave launches preferred materials, social compliance audit program, Nest Certification for including Global Recycled Standard implementing changes to improve Ethical Handcraft. (GRS)- and Responsible Wool Standard performance and drive progress. (RWS)-certified products. PURPOSE VISIONSPRING ENVIRONMENTAL GOALS VisionSpring conducts its first vision V-Weave participates in Higg Facility T 2021 screening camp for V-Weave’s workers. Environmental Module. T REPOR C A APPENDIX 2010 2016 2018 2019 2022 IMP TO NOW TO NOW TO NOW TO NOW & BEYOND 49 50
ETHICAL PRODUCTION: VALUES-ALIGNED SOURCING O INTR @plantkween. West Elm launched a capsule Plant Kween (they/she/he) views gardening as We source from diverse suppliers collection with each, and although very a metaphor for “how we treat ourselves, how different in nature, they’re rooted in a similar we treat others and how we navigate the world.” through programs such as the National passion and altruism. Born in Ethiopia, Hana Christopher taps into their highly engaged and started Bolé Road Textiles to merge her love of enthusiastic audience on social media with Ethiopian handwoven fabrics and interiors. The insightful commentary on planting techniques and Minority Supplier Development 14-piece collection of vibrant modern pillows and care paired with ideology of inclusion, advocacy, rugs pays homage to her upbringing. visibility and community. West Elm is proud to ANET Council and the 15 Percent Pledge. amplify this message by launching Plant Kween’s PL “This collaboration 12-piece capsule collection of planters, vessels, means that homes around and propagation systems, which are at once SUPPLIER DIVERSITY brands and businesses, chefs from around the organic yet pop-culture forward in shape and color. An extension of our Equity Action Plan (page globe and women pushing the boundaries and the country will have Pottery Barn announced a new collaboration with 61), supplier diversity involves sourcing from meeting the challenges of gender bias or inequity. Ethiopian-made pieces in the Black Artists + Designers Guild (BADG), a businesses that are at least 51% owned and In 2020, West Elm committed to the 15 Percent global organization dedicated to building a more operated by an underrepresented or underserved Pledge, which calls on major retailers to dedicate them. It’s why I do what I do: equitable, inclusive and creative culture through group—such as small businesses and enterprises 15% of their shelf space to Black-owned brands. to share Ethiopian artistry the advancement of independent Black makers. OPLE with minority, women, veteran, LGBTQ+ and West Elm committed to the Pledge across its The collection marks a natural next step in the PE disabled ownership. We have an opportunity to brand collaborations, hiring practices and West and craft with the world.” partnership between Pottery Barn and BADG, extend our influence by focusing on diversity and Elm LOCAL, a platform for artists and makers which began with Pottery Barn’s sponsorship of inclusion in our supply chain and with our vendors. to grow their businesses, where customers can —Hana Getachew, BADG’s inaugural Obsidian Experience, a virtual support local artisans. As the first home retailer to Founder, Bolé Road Textiles concept designed to ignite new conversations While still early in our journey, in 2021 we joined take the pledge, we’re dedicated to making both an about the space of home for Black families. WEConnect International and the National Minority immediate and sustained impact. Supplier Development Council, committing to global supplier diversity and inclusion. Since our commitment to the Pledge in July 2020, PURPOSE We also created tracking and reporting structures to capture supplier diversity data, preparing us to LOCAL’s direct to consumer eventually market these claims to our customers. Moving forward, we intend to expand our assortment is 22% Black- assortment of diverse suppliers, initially starting owned and 38% of West Elm’s T 2021 small with certified minority- and women-owned businesses and expanding from there. 2022 collaborations will count T REPOR PARTNERS & COLLABORATIONS toward the Pledge. C A APPENDIX Our brands actively work with vendors, partners IMP and collaborators who reflect our diverse world. Two collaborator highlights are Hana Getachew, We offer products that celebrate the rich heritage founder of Bolé Road Textiles and Christopher of many cultures. They include Black-owned Griffin, better known as social media sensation Hana Getachew, Bolé Road Textiles Christopher Griffin, Plant Kween 51 52
WORKER WELLBEING O INTR We doubled down on our commitment GOAL: 75% OF PRODUCTS FROM SUPPLIERS WITH WORKER WELLBEING PROGRAMS BY 2030* | FY2: % 2021 16% 75% to worker wellbeing, setting more goal ambitious goals for Fair Trade Premiums, GOAL: 50M INESTED IN NEST CERTIFIED PRODUCTS BY 2025** | FY2: M 2021 $9M $50M Nest Certified Ethically Handcrafted goal ANET GOAL: ADDITIONAL 0M IN FAIR TRADE PREMIUMS PAID BY 2025*** | FY2: 3M PL products and programs for workers. 2021 $3M $10M goal WORKER WELLBEING our factories used their Fair Trade Premiums for TRACKING OUR PROGRESS We’re committed to building a responsible COVID-19 relief, providing bulk food staples and OPLE Just Started In Progress Completed business model that enables sustainable personal protective equipment for workers. Others PE development for workers, farmers, their families invested in home solar panels to create light for 2025 2025 2030 and communities. In 2020, we exceeded our goal of their children to study by, or built clinics to provide educating and empowering 100,000 workers. This health services to the broader community. ADDITIONAL $50M INVESTED 75% OF PRODUCTS FROM year, we set a new goal to deepen our impact: $10M PAID IN FAIR IN NEST CERTIFIED SUPPLIERS WITH WORKER By 2030, 75% of product “Our work with partners like TRADE PREMIUMS PRODUCTS WELLBEING PROGRAMS Nest and Fair Trade help We certified four new We’re committed to sourcing Focusing on vendors with the purchases will come from factories this year, from global handcraft and highest purchase volumes will support a resilient, sustainable bringing our total to 19. artisan vendors. deepen our impact. suppliers who offer worker supply chain that delivers PURPOSE STATUS: JUST STARTED STATUS: JUST STARTED STATUS: JUST STARTED wellbeing programs. concrete business value.” By tying our worker wellbeing programs to our —Laura Alber, President & 2021 UPDATE 2021 UPDATE 2021 UPDATE percent of purchases, we ensure that our products CEO, Williams-Sonoma, Inc. T 2021 We paid $3M in Fair Trade We purchased $9M in Despite pandemic-related drive our sustainability work. Premiums, trending ahead Certified Ethically Handcrafted challenges in mobilizing of our interim targets to products, making steady programs, we progressed DRIVING BETTER BUSINESS To meet our 75% goal, we’ll expand beyond our achieve $10M by 2025. progress toward our goal. toward our goal, sourcing 16% Our worker wellbeing programs enabled supply current efforts, moving into further regions and T REPOR C of products from suppliers with chain resilience despite the pandemic. Many of deepening our work. A APPENDIX worker wellbeing programs. IMP *CALCULATION & SCOPE Volume of factories with a completed (or active certification) worker wellbeing program (Fair Trade, Nest, HERproject, VisionSpring, Health & Safety training). **CALCULATION & SCOPE Cumulative total dollars paid in Nest Certified products across WSI since 2021. ***CALCULATION & SCOPE Cumulative total dollars paid as Fair Trade Premiums to our vendors since 2021. 53 54
WORKER WELLBEING: NEST’S ETHICAL HANDCRAFT PROGRAM O INTR “Since we began our partnership in 2014, WSI has demonstrated a deep commitment to protecting workers ANET throughout their supply chains.” PL —Rebecca van Bergen, Nest Founder and Executive Director OPLE WSI helped bring the Nest certification to life, Further, 89% of women who are home-based PE playing a key role in the development of the 100+ workers reported that working from home helps standards, each designed to ensure industry-wide them better care for their children. transparency and compliance for home workers. “Earnings from my quilting go Once developed, we were one of the first businesses to pilot these standards in our supply into a deposit account for my chain. Nest stands apart for centering their children’s higher education, process around artisans, working hand-in-hand with home-based businesses. Their training-first easing the financial load on program addresses the wide degree of variation in PURPOSE decentralized supply chains. my family.” —Alpana Mandal, IMPACT OF NEST’S ETHICAL HANDCRAFT PROGRAM We champion an empowered workforce and quilter for 14 years recognize the potential unlocked when women can While the Nest standards give brands a thrive. After one year in the Nest program, Nest comprehensive way to work with artisan suppliers, 3,600+ 400+ 7 T 2021 observed a 22% increase in fair wage setting and they also give customers transparency into a 20% increase in women reporting above-average the process—letting shoppers know that their Artisans impacted Ethically Handcrafted™ Supply chains and 5 vendors health across Nest partner brands. purchases were ethically made by hand. T REPOR around the world products across our family who’ve earned the Nest Seal C 80% of women workers reported that their of brands of Ethical Handcraft A APPENDIX income supports their children’s formal education, IMP emphasizing the ripple effect that comes from supporting home-based crafts. 55 56
WORKER WELLBEING: FAIR TRADE O INTR children to continue education online. These are vendor hosted a circular design competition to As the first home retailer to launch the meaningful actions that have helped factories to repurpose textiles for zero-waste pillows. Not retain workers during COVID-19. Like many of our only did the factory divert waste bound for landfill, Fair Trade Certified Factory program, Fair Trade Certified factories, one in Vietnam used but the project empowered employees to design their Premiums to pay workers their full salaries products themselves, coming up with creative while closed due to COVID-19. The factory said ways to tackle sustainability challenges. we continue to increase our ambition, they had more workers return when they reopened, compared to other factories in the area. In India, a Fair Trade Certified factory used ANET announcing goals to pay an additional Premiums to purchase solar panels for each PL One of the trends we saw this year was the use household, investing in alternative energy to $10M in Fair Trade Premiums by 2025. of Fair Trade Premiums for climate resilience and provide electricity during blackouts, while another justice. In China, a Fair Trade Certified bedding hosted a vaccination clinic. FAIR TRADE We certified four new Fair Trade factories For every Fair Trade Certified product sold, we this year, bringing our total to 19 Fair Trade pay a Premium that goes directly back to workers, Certified factories in five countries, impacting OPLE who collectively decide how to spend the funds nearly 19,000 workers. PE to improve the lives of themselves and their communities—supporting a sustainable and Over 75% of the general population trusts the resilient supply chain. Fair Trade Certified label, and more consumers recognize the logo when compared to other social “This type of commitment certifications. When asked if they had purchased Fair Trade products in the last 3 months, millennial at scale is exactly the responses increased from 2019 to 2021. kind of leadership we need More consumers are willing to pay more for Fair Trade Certified products than 6 years ago, right now—for workers, averaging 3% year-on-year growth. Millennial PURPOSE and Gen Z consumers lead this trend: 55% of for the environment and millennials and 50% of Gen Z consumers for conscious consumers indicated they will pay a Premium for Fair Trade Certified products. who demand responsibility T 2021 from brands today.” PREMIUMS IN ACTION India experienced a devastating COVID-19 surge —Paul Rice, Founder & CEO during June 2021, and vaccines were in low supply. T REPOR Most of our Fair Trade Certified factories are in C of Fair Trade USA A APPENDIX India and they mobilized their Premiums to offer IMP direct relief to workers throughout the pandemic, providing food and health kits for workers and their families, and buying tablets for workers’ 57 58
WORKER WELLBEING: HERPROJECT & VISIONSPRING O INTR Through partnerships with HERproject™ and VisionSpring, we reach workers around the world with ANET financial literacy, gender equity training PL programs and health screenings. HERPROJECT VISIONSPRING Our partnership with HERproject provides Through VisionSpring, workers receive free vision health, financial literacy and gender equity screening services and glasses at no cost. Outside OPLE training to workers in our supply chain. Global the U.S., access to affordable eyecare is not the PE supply chains are a major employer of women. norm and many people never check their vision, Empowered women and dignified work create over-pay for care or get incorrect prescriptions. more ethical and productive businesses. In 2021, Eyewear and exams allow workers to remain in the we continued existing engagement through workforce longer, increasing their earning HERhealth™ and HERfinance™ programs. The potential and ability to support their families. women who participate then go on to share learnings with peers, families and communities. Over 50% of participants have needed and Year after year, we see its impact on workers. received glasses, 74% for the first time in their lives. After wearing glasses, workers reported a PURPOSE At a recent HERfinance program meeting in China, 79% decrease in frustration, up to 63% reduction IMPACTED TO DATE one worker shared that she had no concept of in product defects and 29% decrease in headaches financial management and no savings before and fatigue. the program. Over the course of two years in HERfinance, she began saving—slowly at first— We’ve partnered with VisionSpring since 2016, T 2021 and then encouraged her family to do the same. providing eyecare to artisans and anyone whose 65,093 42,009 106 Together, they were able to buy a home, and she vision affects their living. One worker in a spoke of her increased sense of financial security decorative accessories factory we work with in Workers impacted Workers screened Factories in VisionSpring and happiness. India had to switch to a lower-paying job due to by HERproject by VisionSpring program and 55 factories in T REPOR vision challenges. After his VisionSpring screening, C HERproject program A APPENDIX he received glasses. In his words: “I have realized IMP now that without my glasses, I would no longer be employed. They are my path to earning a livelihood.” 59 60
DIVERSITY, EQUITY & INCLUSION O INTR We firmly believe that working in a culture focused on diversity, equity and inclusion spurs innovation, creates ANET healthy and high-performing teams and PL delivers superior customer experiences. CULTURE & VALUES Outside of WSI, we recognize the importance At Williams-Sonoma, Inc. our values help us to of playing a part in our communities—through create a unique and welcoming workplace. We partnerships, collaborations and commitments to OPLE believe that taking care of our people is vital to our a more just and inclusive world. PE success. We strive to create a high-trust culture that values every individual contribution, where EQUITY ACTION PLAN equitable and transparent practices offer a safe, In June 2020, we created an Equity Action Plan fulfilling workplace for all. to drive positive change in the fight against racial injustice. We continue to make these commitments We prioritize connection, growth and wellbeing. Our an enduring part of our culture. In 2021, we: associates are encouraged to bring their authentic selves to work, so they can be their best and • Partnered with organizations advancing achieve their personal and professional goals. We racial justice nurture an environment that’s open and inclusive • Launched a Disability, Education & PURPOSE to all. Our differences—whatever they may be— Advocacy Network (DEAN) are valued, explored and appreciated. • Received 80,000 visits to our online DEI Resource Hub to date DIVERSITY, EQUITY & INCLUSION (DEI) • Supported DEI education for 9,000+ Together, we’re creating a more just and inclusive associates over 18 months T 2021 company culture where the only criteria for • Hosted community forums for 6,500+ advancement is: associates to date • Reached 22% Black-owned LOCAL brand T REPOR • The quality of our work assortment at West Elm C • The contributions we make to our • Launched a Black Artists + Designers Guild A APPENDIX teams and the business (BADG) collection at Pottery Barn IMP • Our ability to lead and connect • Saw year-over-year improvement in the diversity of our new hires 61 62
REPRESENTATION O INTR Our focus on diversity in associate GENDER REPRESENTATION* hiring, retention and promotion led COMPANY TOTAL NATIONAL RETAIL** to overall increases in both our female 32% Male % Male Wllam‚- NAIC‚ Sooma, Iƒ. Re„al Ta…e ANET and ethnically-diverse associate 68% Female €% Female PL representation numbers. .08% No-a N†A No-a** Our business thrives when our associate • Provide accepting spaces where all voices population represents the diverse world we are heard and appreciated WILLIAMS-SONOMA, INC. live in. This past year, we saw positive results • Organize a range of events focused on OPLE for promotional opportunities for female service, education and awareness PE employees. Our percentage of promotions for • Host celebrations to honor the heritage female employees was greater than our overall and history of our diverse communities representation of females. Last year, we also • Partner with national and local 6% Male % Male changed our hiring practices to ensure nearly all of organizations ˆP‚ a… ‡eƒ„o‚ our posted roles have a diverse slate of candidates. Ao‰e In June 2021, associates established our newest % Female €% Female In 2021, we saw year-over-year improvement in AEN—Disability, Education & Advocacy Network the diversity of our new hires, with ethnically- (DEAN). Their mission is to create a culture of diverse individuals being hired at a higher rate than disability inclusiveness across WSI through their current representation in the company. education and associate advocacy, building a more PURPOSE unified and just future for all. In August 2021, we ASSOCIATE EQUITY NETWORKS held AEN Appreciation month to celebrate and Our Associate Equity Networks (AEN) empower showcase their incredible work in our company people to engage and collaborate as they facilitate and community. Our active networks are: Maa‹e‚ 3Š% Male 32% Male change at a local level. A core element of our a… Seo I…‰…Œal T 2021 Equity Action Plan, our AENs are led by and for • Asian WSI Network (AWN) Maa‹e‚ Co„Œ„o‚ associates. Each AEN has a unique mission, yet • Black Associate Network (BAN) 63% Female 68% Female they all strive to create a culture of connection, • Disability, Education & T REPOR belonging, inclusivity and equity. Our networks: Advocacy Network (DEAN) C A APPENDIX • Hispanic/LatinX Associate Network IMP • Lead change and innovation for our • Veterans Appreciation Network *FY21 data as of 01/30/2022. FY21 data represents global workforce, including full-time, part-time and temporary or seasonal company diversity practices • Voices (LGBTQ+) associates. Percentages exclude associates who declined to state gender or ethnicity. **National Retail Trade numbers calculated using • Provide support to their fellow associates Bureau of Labor Statistics data for 2021. Non-binary data not reported. 63 64
REPRESENTATION (CONTINUED) O INTR ETHNICITY REPRESENTATION* DEI RESOURCE HUB Through matched funding, Our DEI Resource Hub is an important space for associates can lead COMPAN‘ TOTAL NATIONAL RETAIL’’ collaboration and connection. An online forum where our community can gather for growth and volunteering and fundraising 55% WŠ‚… 5†% WŠ‚… reflection, it has received more than 80,000 visits to date. It is continually updated with learning efforts that support the causes resources to build awareness and educate on a 14% B‰„‹ 13% B‰„‹ they’re most passionate about. range of relevant diversity, equity and inclusion W‚‰‰‚Ž- topics. We also offer virtual and in-person SŽ, I„. 16% H‚Œ‚„ NAIC Our major care center locations partnered with R…‚‰ Tƒ 19% H‚Œ‚„ opportunities that support DEI education. More ANET organizations—including NAACP, the Wendale PL than 9,000 of our associates have participated in 11% A‚ these during the last 18 months. Davis Foundation, Miles of Freedom, Sox of Love 6% A‚ and more—who support under-served people in COMMUNITY FORUMS our communities. Teams raised funds, volunteered, 4% O…Šƒ 4% O…Šƒ Community Forums, hosted biweekly, also provide assisted with food collections, supported art associates with a safe and confidential platform exhibitions and hosted cooking classes to give for connection. During these meetings, associates back to the communities we serve. WILLIAMS-SONOMA, INC. are encouraged to share their authentic thoughts 75% WHITE 69% WHITE and experiences, with experts often joining to offer PAY EQUITY OPLE educational resources and perspectives on a range We value each and every one of our associates PE of issues. To date, more than 6,500 associates and are committed to equitable pay. We internally review pay equity data semi-annually, and we’re 2% BLACK 3% BLACK have participated in these powerful forums. committed to reviewing pay across ethnicity and VP 2% HISPANIC €‚ƒ„…ƒ 4% HISPANIC PARTNERSHIPS gender categories to ensure equity. A We’ve maintained multi-year partnerships to support and engage with the NAACP, Jackie 16% ASIAN 20% ASIAN Robinson Foundation and National Urban League. In light of rising discrimination against PURPOSE 4% OTHER 4% OTHER AAPI communities, we added Asian Americans Advancing Justice—Asian Law Caucus to our list of partners. 59% WHITE 54% WHITE Our associates help to drive T 2021 †% BLACK Diversity, Equity and Inclusion 15% BLACK M‡ƒ I‚ ‚ˆ‰ S‚ƒ C…ƒ‚ˆ…ƒ at a grassroots level. T REPOR M‡ƒ 10% HISPANIC 17% HISPANIC C A APPENDIX IMP 19% ASIAN 10% ASIAN *FY21 data as of 01/30/2022. FY21 data represents global workforce, including full-time, part-time and temporary or seasonal associates. Percentages exclude associates who declined to state gender or ethnicity. **National Retail Trade numbers calculated using Bureau of Labor Statistics data for 2021, and corrected for double-reported ethnicity categories across White/Hispanic demographics. 5% OTHER 4% OTHER 65 66
ASSOCIATES: DEVELOPMENT & RETENTION O INTR 2021 saw unprecedented hiring rates, and we’re proud that more than 20,000 individuals chose WSI ANET as their career home. PL ASSOCIATE DEVELOPMENT DEVELOPMENT AT WSI Our success depends on our associates, and we Our online learning portal offers trainings to strive to attract, develop and retain the best talent support associates in all roles. In 2021, we in retail. We offer a career path for individuals in continued to deepen trainings for customer care, every stage and type of career—from starting distribution and digital design service roles. out in their first roles, to building expertise in our An internal SharePoint site provides ongoing OPLE specialist roles, to part-time second careers. resources and engages associates digitally— PE a crucial component of training through the Over 50% of our open jobs last two years of the pandemic. were filled internally, and over CARE CENTER 90% of the internal fills were Piloted in 2021, we created promotions in 2021. the Care Center Mentor We offer a variety of development opportunities, Program to help supervisors CARE CENTER RESULTS PURPOSE including in-person and online learning, as well as develop leadership skills professional development courses. WSI ADVISOR PROGRAM and learn from experienced 100% 100% 92% During this six-month program, all participants leaders in the company. T 2021 engage in group learning activities, such as Of mentees either achieved Of participants said they Of participants plan external and internal speaker events, social 21 mentor-mentee pairs participated in the their goal or were on track would recommend the to continue their mentor/ gatherings, group meetings and one-on-one 14-week program, focusing on goal-setting. to achieve it program to their coworkers mentee relationship beyond T REPOR sessions. The WSI Advisor program has the largest Not only did our supervisors gain tools to help C the program A APPENDIX participation of all development programs in the them excel in their roles, they also developed IMP organization. It is also the only cross-organizational meaningful relationships with individuals across program with participants from our corporate, care the organization. center, supply chain and global organizations. 67 68
ASSOCIATES: BENEFITS O INTR Our benefits package is designed to put our associates’ health and wellbeing, and that ANET of their families, at the forefront. PL BENEFITS DEPENDING ON POSITION AND LOCATION, We offer a competitive suite of benefits that ASSOCIATES MAY BE ELIGIBLE FOR: matter most to our associates. We continue to enhance our offerings and minimize cost • 401(k) plan and other investment opportunities increases for our associates, while maximizing • Paid vacations, holidays and other time- the quality of these offerings. To help associates off programs OPLE understand the benefits available to them, we’ve • Health, dental and vision insurance PE created transparent, comprehensive resources— • Health and dependent care tax-free accounts such as in-depth total reward statements. Our • Medical, family and bereavement leave benefits information is also accessible 24/7 • Maternity/primary caregiver benefits on our dedicated website, mywsibenefits.com. We’ve updated the site to make it clear and easy • Mothers’ rooms and on-site showers to understand for our associates. For example, • Transgender-inclusive services we offer new parent information sessions that • Tax-free commuter benefits provide primary and secondary caregivers a • Company-sponsored walks and runs comprehensive overview of all benefits available • Wellness programs including telehealth PURPOSE to them. • Time off to volunteer and matching donations In 2021, both primary to qualifying nonprofit organizations and secondary caregivers T 2021 increasingly utilized our enhanced parental leave T REPOR C program, and associates A APPENDIX increased their participation IMP in our 401(k) plan. 69 70
SPOTLIGHT: REJUVENATION O INTR Whether resettling refugees or adapting to climate change, Rejuvenation’s associates are creating ANET a more sustainable future for all. PL THE GREEN TEAM CHANGEMAKER AWARD Rejuvenation’s collections are grounded in To honor their innovation and collaboration, environmentally-friendly manufacturing. This we awarded the Green Team the first annual year, the passionate volunteers of Rejuvenation’s Good by Design Changemaker Award. This prize Green Team have implemented game-changing recognizes WSI associates who are stewards of OPLE sustainability initiatives at work, too. They’ve change—from sustainable designers to distribution PE adopted an Environmental Purchasing Policy at center workers to retail associates. Rejuvenation’s Rejuvenation headquarters and the Nicolai Factory, efforts will contribute to emissions reductions and installed touchless faucets and updated toilets create a blueprint for other brands. to improve water efficiency, hosted volunteering events and much more. TENT PARTNERSHIP FOR REFUGEES The Tent Partnership for Refugees is a coalition “Everyone is passionate about of over 250 major companies around the world, committed to integrating refugees in their host finding innovative solutions communities. In 2021, Rejuvenation joined the OUR TENT & IRCO PARTNERSHIPS’ IMPACT PURPOSE to educate and inspire. Tent Coalition for Refugees in the U.S., committing to explore hiring and training opportunities for Sponsorship from leadership refugees in the U.S. 60% 100+ 15% is also important because it The workforce at Rejuvenation’s Nicolai facility T 2021 conveys that the work matters.” is already diverse, consisting of immigrants and refugees. Rejuvenation has a longstanding Of Rejuvenation’s factory Companies have Of all refugees work in —Rejuvenation Green Team relationship with IRCO—a refugee resettlement workforce is represented by joined the Tent Coalition manufacturing, according nonprofit. This new partnership with Tent amplifies immigrants and refugees for Refugees in the U.S. to Tent T REPOR Rejuvenation’s commitment to hiring refugees in C A APPENDIX its corporate offices and manufacturing facility in IMP Portland, Oregon. 71 72
O INTR ANET PL OPLE PE Purpose PURPOSE – “As we meet and exceed our company-wide goals, we reshape the industry and ourselves. At the center T 2021 of everything we do, every day, is our customer.” T REPOR C A APPENDIX —LAURA ALBER, PRESIDENT AND CEO, WILLIAMS-SONOMA, INC. IMP 73 74
CORPORATE GOVERNANCE O INTR At Williams-Sonoma, Inc., responsible governance and oversight are core to our business, and our company-wide ANET values include corporate responsibility. PL CORPORATE GOVERNANCE BOARD DIVERSITY Our Governance Articles outline our approach We strive for our Board of Directors to reflect the and detail our principles and practices. As our racial, ethnic and gender diversity of our workforce sustainability strategy continues to evolve, we and surrounding communities. This year, we added identified an opportunity to reconfigure our ESG new members to our Board of Directors, resulting OPLE Leadership Working Group to better meet in our most diverse Board to date. With these new PE our strategic needs. changes, we’re a Fortune 500 company whose Board gender representation matches that of A group of cross-functional the company. leaders from across the The Women’s Forum of business, the Working Group New York named WSI a is tasked with collaborating 2021 Corporate Champion and responding to WSI’s for achieving gender parity BOARD DIVERSITY METRICS 2021 PURPOSE sustainability strategy. on our Board, with 67% of We added new members to the group to represent seats held by women. 67% 33% 3 additional business functions as the need arises. T 2021 We also shifted our meeting cadence, making them longer to dive more deeply into specific ESG topics Of our Board members Of our Board members New members joined that we need to address as an organization. This identify as female, and are minorities, and 67% our Board in 2021 new structure allows us to be more targeted with 33% identify as male are non-minorities T REPOR our efforts and focus on the areas where we can C A APPENDIX drive ambition. IMP 75 76
BUSINESS INTEGRITY CYBERSECURITY & DATA PRIVACY O INTR We do business with the highest We’re dedicated to prioritizing level of integrity, every day and in cybersecurity and safeguarding our everything we do. customers’ personal information. ANET BUSINESS ETHICS As a design-driven company, our in-house quality CYBERSECURITY & DATA PRIVACY We safeguard our customers’ PL We’re committed to conducting our global business professionals are engaged from the very beginning We take a proactive, highly conservative ethically and with integrity. Our Code of Business of our design process, informing material selection approach to cybersecurity, with the intention of personal information, Conduct & Ethics stands against corruption in all and product development with safety in mind. preventing harm. This commitment is reflected conducting internal testing its forms and establishes expectations to guide in our governance structure, our data security ethical decision-making by our associates. We have a global team of product quality and policies and procedures and our systems to and assessments monthly, assurance professionals who test all our products measure, monitor and respond to data breaches third-party assessments Our Vendor Code of Conduct outlines our for safety and restricted substances. To guarantee and cyberattacks. OPLE expectations of ethical behavior by our business that we communicate the correct information to quarterly and external PE partners. We require all associates to complete customers, we have an internal review process and Our Chief Technology Officer and Chief Information independent audits at least a Code of Conduct Questionnaire annually to work with third-party certification organizations Security Officer have a dedicated team of reinforce our expectations. Every associate and where needed to provide accurate product claims. professionals focused on cybersecurity and data once a year. business partner has a responsibility to act with protection, and we invest in continuous monitoring the highest ethical standards. Our products are tested and improvement of our systems. Our policies and standards are reinforced by training and engagement to ensure our customers’ To foster an environment of open, honest at either one of our WSI We review and update our dedicated Standard privacy and security is central. We disclose communication, associates across our offices, in-country labs or by Operating Procedures, policies and standards this information in accordance with the SEC’s stores and factories have access to a third-party annually. In 2021, we updated our Cybersecurity Commission Statement and Guidance on Public ethics hotline to report any potential violations, independent, third-party labs & Data Privacy Commitment to respond to Company Cybersecurity Disclosures. PURPOSE while ensuring confidentiality and transparency. stockholder concerns and more clearly articulate Whistleblower protections are included in our Code certified by the U.S. Consumer our approach to cybersecurity and data privacy. of Business Conduct & Ethics. Product Safety Commission. Our associates, as well as third parties who PRODUCT SAFETY & TESTING provide services on our behalf, are required by T 2021 At WSI, we are committed to high-quality, safe and policy, practice, and contract (if applicable) to treat long-lasting products for our customers. In addition customer information with care. We also closely to complying with rules and regulations related monitor emerging data privacy laws to ensure T REPOR to marketing and product safety and testing, we legal compliance. C invest in up-front technical expertise to inform A APPENDIX product design and development. IMP 77 78
BRAND LEADERSHIP O INTR 75% of our products will be labeled with one or more of our social or TRACKING OUR PROGRESS Just Started In Progress Completed 2030 STATUS: IN PROGRESS environmental initiatives by 2030. 75% OF PRODUCTS LABELED ANET WITH ONE OR MORE SOCIAL OR PL ENVIRONMENTAL INITIATIVES 2021 UPDATE We’re steadily increasing our assortment 46% of our products represent one or more of sustainable products. of our social or environmental initiatives. BRAND LEADERSHIP • 2017: POTTERY BARN KIDS set, then met a OPLE goal to offer 100% GREENGUARD Gold certified PE Across our brands, we value company-made kids furniture. quality and sustainability— • 2019: POTTERY BARN TEEN increased the from furniture that restores use of recycled materials in their products, launched ECONYL® Regenerated Nylon and forests to finishes that expanded REPREVE materials. maintain healthier indoor air. • 2020: POTTERY BARN spearheaded the planting of 3M trees in 3 years with the Arbor Day Foundation. The partnership has PURPOSE • 1980s: REJUVENATION began supprting expanded and the goal doubled, with 6M trees Portland-based immigrant and refugee to be planted by 2023 across our brands. workforces by partnering with IRCO and Tent.org—programs that continue today. • 2021: MARK AND GRAHAM partnered with Nest to source from and build a series of artisan T 2021 • 2010: WILLIAMS SONOMA launched product collections. artisan markets with local food businesses, a popular program that’s transitioned to digital • 2022: WILLIAMS SONOMA HOME reached T REPOR collaborations as well. 100% GREENGUARD Gold certified upholstery. C A APPENDIX • 2014: WEST ELM became the first home IMP retailer to offer Fair Trade Certified products and remains a leader today. 79 80
CERTIFICATIONS & STANDARDS O INTR To achieve our goal of 75% responsibly made products by 2030, we work with credible and ANET PL globally recognized partners and standards across our supply chain. We’re committed to transparent and honest We actively engage marketing, allowing our customers to make with certifying bodies, OPLE informed choices. We internally review and, PE as needed, work with third-party certification standard-setting organizations to verify product claims. We publish a quarterly list of vendor certifications organizations and industry and scopes to our global design, sourcing and associations, including merchant teams, and we hold regular trainings on certifications and standards. serving on the Board of TRANSPARENCY & TRACEABILITY the Forest Stewardship We require all vendors to participate in fiber Council® (FSC®). PURPOSE and wood surveys and provide chain-of-custody certifications and supporting documentation Through participation, we make sure our to confirm that they meet our standards. We expectations align with those of different GOAL: 75% OF PRODUCTS LABELED WITH ONE OR MORE maintain up-to-date vendor chain-of-custody agencies, and we advocate for continuous SOCIAL OR ENVIRONMENTAL INITIATIVES BY 2030* | FY2: % certificates and regularly collect and verify improvement. We also develop standards in T 2021 transaction certificates to support marketing collaboration with experts where we see a gap in claims. We’re adopting additional technologies the market. Our partnership with Nest began in like Sourcemap and DoubleHelix to trace the 2014. We were the founding brand partner and 2021 46% 2030 goal: T REPOR journey of our products through the supply chain. helped Nest build the steering committee that 75% C A APPENDIX We acknowledge that product certifications are would launch their Seal of Ethical Handcraft to IMP not a perfect solution to the global sustainability ensure ethical production in handcraft supply challenges we face in our industry, but we see chains. Four years later, we became the first *CALCULATION & SCOPE Volume of assortment with a substantiated environmental or social benefit (Fair Trade, Sustainably Sourced, Organic, them as a strong measure of best practice. retailer to offer products with the Nest Seal. Low-VOC, Nest Ethically Handcrafted™, etc). 81 82
GIVING & VOLUNTEERING O INTR Despite the challenges of in-person TOTAL GIVING ANNUALLY* ($) FY19 FY20 FY21 volunteering during the COVID-19 $34M pandemic, we worked to create a $44M culture of giving. $20M ANET PL 0 10M 20M 30M 40M 50M GIVING & VOLUNTEERING influencers design limited-edition products— We provide eligible associates with 8 hours of garnered over 500 million impressions and HOURS VOLUNTEERED** FY19 FY20 FY21 paid community involvement time each year, launched with an exclusive story on People.com. allowing associates to choose where they want to donate their time. This year, we focused on taking ST. JUDE care of our people, customers, and communities. We’re proud to celebrate 17 years of partnership 4,606 OPLE We remain committed to our partnerships with with St. Jude Children’s Research Hospital®, PE St. Jude Children’s Research Hospital®, No Kid who have brought hope and inspiration to the 4,244 Hungry, The Trevor Project, AIDS Walk, Canada lives of so many. We’ve donated approximately Children’s Hospitals and the Arbor Day Foundation. $60M to date. 9,997 These long-standing collaborations are critical elements of our culture and our commitment to In 2021, St. Jude recognized corporate social responsibility. 0 2,000 4,000 6,000 8,000 10,000 WSI with its distinguished St. Not only do these partnerships provide *CALCULATION & SCOPE Contributions through fundraising for a variety of causes, miscellaneous community giving, associate opportunities for our customers to give back to Jude Thanks and Giving® donations, shelter grants, product proceeds, matching gifts and in-kind donations. **CALCULATION & SCOPE Total of non-store associate volunteering hours. In 2017, we began tracking volunteer hours through Bright Funds, capturing actual hours volunteered PURPOSE great causes, they allow our associates the chance Partner of the Year award. rather than estimated associate counts, and applied this methodology from 2017-2021. to volunteer their time and talents. Through online and in-store donations, special product This title honors our community’s efforts during collaborations and national and local fundraising, the 2020 holiday campaign, where we raised $5 these partnerships give back to the communities million from associate donations and those of we serve. 593,000 customers. This year, we exceeded last THE TREVOR PROJECT T 2021 year’s $5 million donation through product sales In 2021, we doubled down on our fundraising Engage for Good named WSI a finalist for its 2022 NO KID HUNGRY along with store and e-commerce donations. While dollars for The Trevor Project, raising $260,000 Halo Award. Recognizing our partnership with In 2021, we achieved our ambitious $2.5M donation we receive a significant amount of donations during in donations and give-back products sold across The Trevor Project during Pride 2021, the award T REPOR goal to support our long-term partner, No Kid WSI. An organization like The Trevor Project honors corporate social impact initiatives that C the holidays, we support St. Jude all year long by recognizes each of us for our own individuality and showcase outstanding consumer and/or employee A APPENDIX Hungry and their goal to end childhood hunger providing opportunities for customers to donate. IMP in America. Williams Sonoma’s seventh annual supports the LGBTQ+ community and its allies engagement efforts. Tools For Change Campaign—where prominent every day of the year. celebrities, chefs, culinary personalities and social 83 84
GIVING & VOLUNTEERING (CONTINUED) O INTR PRODUCT DONATIONS We’ll continue matching more of our retail We also support organizations and partners like locations with a Habitat for Humanity partner in Good360 and Habitat for Humanity, who assist the future. In October 2021, Rejuvenation launched those with damaged or lost homes, or those a 16-month philanthropic partnership with seeking decent, affordable housing. Habitat, committing to donate a total of $100,000 through sales of the bestselling Carson Lighting In 2021, Good360 distributed Collection. Rejuvenation also hosts donation events at stores to give customers the opportunity to our product donations to repurpose unwanted household products, diverting ANET more than 200 different them from landfills and helping support home PL building in their communities. nonprofit organizations, WILLIAMS-SONOMA, INC. FOUNDATION serving 236,000 individuals. Over fourteen years ago, we established the WSI Foundation as a nonprofit organization to assist These donations provided critically needed associates directly affected by Hurricane Katrina. products to people impacted by tornadoes in Kentucky and deadly flooding in Tennessee. We Since then, the WSI Foundation has continued OPLE also shipped four containers of WSI product to serve as a resource for associates in need PE donations from our New Jersey distribution during federally declared natural disasters. It’s of center to recovery efforts in the Bahamas from paramount importance that we support our people Hurricane Florence. Good360 distributes our through life’s unexpected tribulations. This fund is products to nonprofit partners that place them in one of our largest resources. the hands of those most in need. Just over a year after launching our partnership with Habitat for We activated the WSI Humanity, we continue to see significant impact. Foundation to make grants to Our retail stores donate U.S. associates in need due to GIVING & VOLUNTEERING PURPOSE unsold products to Habitat for the impact of COVID-19. Humanity’s ReStore locations, These associates were impacted by COVID-19 $34M 4,606 205 where sales support safe and and experienced financial hardship that made T 2021 affordable housing. Our DCs it difficult to provide for and/or access basic In total giving for 2021 Associate volunteer Associates supported by necessities. In 2021, the Foundation paid $156,000 hours for 2021 the Williams-Sonoma, Inc. and hubs donated 89,000 to approximately 205 associates—giving them T REPOR support during a difficult time. Foundation in 2021 C products in 2021. A APPENDIX IMP 85 86
O INTR ANET PL OPLE PE Appendix PURPOSE – We publish our progress against clearly defined targets, and T 2021 we report to standards set by the UN Global Compact, CDP, T REPOR Sustainability Accounting Standards Board and Task Force on C A APPENDIX Climate-Related Financial Disclosures. IMP 87 88
ESG Metrics: Responsible Materials O INTR RESPONSIBLE WOOD 2019 2020 2021 YOY % Change RESPONSIBLE COTTON 2019 2020 2021 YOY % Change BEST 18% 25% 24% -1% GOTS/ORGANIC BEST 27% 31% 33% 2% BETTER 10% 9% 16% 7% OCS/RECYCLED BETTER 4% 4% 3% -1% ANET GOOD 19% 31% 20% -11% OEKO-TEX/BCI GOOD 44% 54% 58% 4% PL TOTAL 47% 65% 60% -5% TOTAL 75% 89% 94% 5% CALCULATION & SCOPE Tracked by Sourcemap + SKU-level wood volumes from vendors. Percent of responsibly sourced wood in our CALCULATION & SCOPE Tracked by vendor textile survey. Percent of responsibly sourced cotton used in our textiles in pounds. furniture in cubic meters. Responsibly sourced wood is categorized through a Good-Better-Best approach: Best—Forest Stewardship Responsibly sourced cotton is categorized through a Good-Better-Best approach: Best—Global Organic Textile Standard (GOTS), Council® (FSC), Better—Programme for the Endorsement of Forest Certification (PEFC from low-risk countries), Rediscovered wood Better—Organic Content Standard (OCS) and recycled cotton, Good—Better Cotton™ (BCI) and STANDARD 100 by OEKO-TEX® certified (reclaimed/recycled and orchard wood sources), FSC® Controlled Wood, Good—verified legal and low-risk wood for legality (as defined products. Total reflects the volume of responsibly sourced cotton as a percent of WSI’s total volume of cotton. by Preferred by Nature’s Timber Risk Assessments and FSC’s National Risk Assessments). Total reflects the volume of responsibly sourced wood as a percent of WSI’s total volume of wood. OPLE PE ESG Metrics: Carbon & Electricity Intensity CARBON INTENSITY 2019 2020 2021 YOY % Change ELECTRICITY INTENSITY 2019 2020 2021 YOY % Change PURPOSE CO2e (kg) 93M 91M 89M -2% kWh 189M 184M 176M -4% REVENUE $5.90B $6.78B $8.25B 22% SQ. FT. 17.7M 18.2M 19.1M 5% CARBON INTENSITY ELECTRICITY INTENSITY T 2021 (kg/REVENUE) 0.0158 0.0134 0.0108 -19% (kWh/SQ. FT.) 10.67 10.06 9.22 -8% T REPOR C CALCULATION & SCOPE Data aggregated by NUS and manual data collection. 2019-21 emissions calculations performed by Optera. CALCULATION & SCOPE Data aggregated by NUS, manual data collection and WSI Real Estate. 2019-21 electricity intensity A APPENDIX Optera calculation added radiative forcing factors in 2019-2021. Greenhouse gas emissions (GHG) in kilograms per dollars of revenue. calculations performed by Optera. Electricity consumed in kilowatt hours (kWh) per square foot of real estate annually. Consumption IMP Emissions include Scope 1 (direct GHG emissions from fuel consumption), Scope 2 (indirect GHG emissions from purchased electricity, for stores, data centers, outsourced data services, distribution centers, in-sourced hubs, call centers, owned production facilities and heat and steam) and partial Scope 3 (emissions from business travel). Emissions from stores, data centers, outsourced data services, corporate offices included. Real estate square footage is an annual average. distribution centers, in-sourced hubs, call centers, corporate offices and owned and leased vehicles are included. We revised our FY20 emissions metrics after identifying an incorrect emission factor in our calculations. 89 90
ESG Metrics: GHG Emissions O INTR GHG EMISSIONS, GRAND TOTAL, SCOPE 3 EMISSIONS, YOY METRIC TONS (MT) FY19 FY20** FY21 YOY % Change GRAND TOTAL, METRIC TONS (MT) FY19* FY20 FY21 % Change SCOPE 1 EMISSIONS (MT) 17,537 20,499 21,678 6% SCOPE 3 EMISSIONS (MT) 3,791,154 3,442,303 4,052,222 18% SCOPE 2 EMISSIONS (MT) 70,415 66,794 64,143 -4% SCOPE 3 EMISSIONS, FY19* FY20 FY21 % Change ANET EMISSION CATEGORY PL SCOPE 1 & 2 EMISSIONS (MT) 87,952 87,293 85,821 -2% PURCHASED GOODS AND SERVICES 2,031,725 1,804,237 2,108,151 17% SCOPE 1 & 2 EMISSIONS, FY19 FY20** FY21 YOY % Change FACILITY TYPE CAPITAL GOODS 32,265 45,870 32,418 -29% OFFICES (MT) 5,488 4,806 4,921 2% FUEL AND ENERGY EMISSIONS 23,219 18,987 15,490 -18% OPLE DCS/HUBS (MT) 36,006 36,936 38,070 3% UPSTREAM TRANSPORTATION 411,831 428,267 592,420 38% PE RETAIL (MT) 46,458 45,551 42,829 -6% WASTE FROM OPERATIONS 19,792 22,789 31,258 37% SCOPE 1 & 2 EMISSIONS, FY19 FY20** FY21 YOY % Change BUSINESS TRAVEL 9,267 1,091 1,761 62% GEOGRAPHY AMERICAS (MT) 84,561 84,149 82,535 -2% EMPLOYEE COMMUTING 46,933 30,936 34,026 10% PURPOSE ASIA PACIFIC (MT) 3,072 2,827 3,107 10% DOWNSTREAM TRANSPORTATION 359,466 339,804 363,438 7% EUROPE (MT) 319 317 178 -44% USE OF SOLD PRODUCT 719,929 651,949 754,177 16% PRODUCT END-OF-LIFE 116,416 85,608 100,062 17% T 2021 BUSINESS TRAVEL (MT) 5,041 3,346 3,325 -1% FRANCHISE EMISSIONS 20,311 12,765 19,022 49% T REPOR C A APPENDIX SCOPE 1 CALCULATION Emissions are aggregated by NUS and manual data collection, with emissions calculations performed SCOPE 3 CALCULATION Scope 3 emissions categories follow GHG Protocol and include purchased goods and services, capital goods, fuel IMP by Optera. Optera calculation added radiative forcing factors in 2019-2021. Greenhouse gas emissions include Scope 1 (direct GHG and energy emissions, upstream transportation, waste from operations, business travel, employee commuting, downstream transportation, emissions from fuel consumption), Scope 2 (indirect GHG emissions from purchased electricity, heat and steam) and Scope 3 (GHG use of sold product, product end-of-life and franchise emissions. Categories not included which are not material to WSI business are upstream emissions from our value chain). SCOPE 2 CALCULATION Emissions from stores, data centers, outsourced data services, distribution leased assets, processing of sold products, downstream leased assets and investments. We worked with industry expert Anthesis to centers, in-sourced hubs, call centers, corporate offices and owned and leased vehicles are included. calculate our Scope 3 emissions baseline and implement reporting frameworks.*Our Scope 3 emissions progress is calculated using a 2019 baseline. **We revised our FY19 and FY20 emissions metrics after identifying an incorrect emission factor in our calculations. 91 92
ESG Metrics: Landfill Diversion O INTR WASTE TONNAGE, GRAND TOTAL FY19 FY20* FY21 YOY % Change WASTE TONNAGE, FACILITY TYPE RECYCLING (MT) 32,036 33,968 36,944 9% DISTRIBUTION CENTERS FY19 FY20* FY21 YOY % Change AND HUBS TOTAL (MT) ANET LANDFILL (MT) 33,296 41,539 48,118 16% RECYCLING (MT) 13,776 17,536 18,546 6% PL WASTE TOTAL (MT) 65,332 75,507 85,062 13% LANDFILL (MT) 10,975 17,038 20,455 20% DIVERSION RATE 49% 45% 43% -2% WASTE TOTAL (MT) 24,752 34,574 39,001 13% OPLE DIVERSION RATE 56% 51% 48% -3% PE WASTE TONNAGE, FACILITY TYPE OFFICE TOTAL (MT) FY19 FY20* FY21 YOY % Change STORES TOTAL (MT) FY19 FY20* FY21 YOY % Change RECYCLING (MT) 554 508 471 -7% RECYCLING (MT) 17,706 15,924 17,926 13% PURPOSE LANDFILL (MT) 454 722 665 -8% LANDFILL (MT) 21,867 23,779 26,997 14% WASTE TOTAL (MT) 1,008 1,230 1,136 -8% WASTE TOTAL (MT) 39,573 39,703 44,923 13% T 2021 DIVERSION RATE 55% 41% 41% 0% DIVERSION RATE 45% 40% 40% 0% T REPOR C A APPENDIX IMP CALCULATION & SCOPE Calculated since 2017 by Rubicon annual tonnage report, WSI DC monthly report and manual data collection. Percent of recycled and composted volume diverted from landfill in metric tons. Scope includes distribution centers, in-sourced hubs, corporate offices and retail stores in North America. In 2016, EPA’s factor for waste changed from 225 pounds per yard to 138. The new factor was applied in 2017-2021. *We revised our FY20 landfill metrics after identifying an incorrect categorization of waste type. 93 94
ESG Metrics: Fair Trade Certified, Nest’s Ethical Handcraft O Program, FSC-Certified Paper, Giving & Volunteering INTR FAIR TRADE FY19 FY20 FY21 Cumulative since 2021 GIVING FY19 FY20 FY21 YOY % Change FAIR TRADE PREMIUMS NA NA $ 3M $3M * $20.0M $43.6M $34.1M -22% ANET * TOTAL $ GIVEN & RAISED PL PAID SINCE 2021 NEST’S ETHICAL FY19 FY20 FY21 Cumulative since 2021 HANDCRAFT PROGRAM VOLUNTEERING FY19 FY20 FY21 YOY % Change OPLE TOTAL $ PURCHASES OF PE CERTIFIED ETHICALLY NA NA $9M $9M TOTAL 9,997 4,244 4,606 9% ** ** HANDCRAFTED PRODUCT VOLUNTEERING HOURS FSC® PAPER FY19 FY20 FY21 YOY % Change PURPOSE FSC®-CERTIFIED 100% 100% 100% 0% CATALOG PAPER*** T 2021 T REPOR C A APPENDIX *CALCULATION & SCOPE We’ve paid Fair Trade Premiums to our vendors since 2014, paying over $7M in Premiums from 2014-2020. *CALCULATION & SCOPE Contributions through fundraising for causes, miscellaneous community giving, associate donations, shelter IMP We announced a new goal in 2021 to pay an additional $10M in Fair Trade Premiums by 2025 and are measuring progress after 2021. grants, product proceeds, matching gifts and in-kind donations. **CALCULATION & SCOPE Total volunteering hours from global, To view premiums paid in prior years, see our 2020 Impact Report. **CALCULATION & SCOPE Cumulative total dollars paid in Nest corporate associates, excluding non-store associates. Certified products across WSI since 2021. ***CALCULATION & SCOPE Percent of FSC-certified paper in our catalogs in number of pages circulated. 95 96
ESG Metrics: Gender & Ethnicity Representation* O INTR WSI TOTAL FY19 FY20 FY21 % CHANGE WSI TOTAL FY19 FY20 FY21 % CHANGE MALE 31.8% 34.8% 32.4% -2.4% WHITE 61.0% 55.9% 54.8% -1.1% FEMALE 68.2% 65.2% 67.5% 2.5% BLACK 12.6% 15.4% 13.8% -1.6% ANET HISPANIC 14.9% 16.0% 16.1% 0.1% PL NON-BINARY 0.1% NA ASIAN 7.0% 8.0% 11.1% 3.1% VPS & ABOVE OTHER 4.5% 4.6% 4.2% -0.4% MALE 48.2% 48.2% 45.9% -2.3% VPS & ABOVE FY19 FY20 FY21 % CHANGE MANAGERS & FY19 FY20 FY21 % CHANGE OPLE FEMALE 51.8% 51.8% 54.1% 2.3% SENIOR MGRS. PE DIRECTORS WHITE 79.3% 79.4% 74.9% -4.5% WHITE 66.1% 65.1% 59.1% -6.0% BLACK 2.1% 2.8% 2.4% -0.4% BLACK 7.2% 8.1% 7.6% -0.5% MALE 37.2% 38.6% 40.7% 2.1% HISPANIC 2.1% 2.1% 2.4% 0.3% HISPANIC 9.3% 10.2% 10.0% -0.2% FEMALE 62.8% 61.5% 59.3% -2.1% ASIAN 12.1% 10.6% 16.2% 5.6% ASIAN 12.5% 11.6% 18.7% 7.1% MANAGERS & SENIOR MANAGERS OTHER 4.3% 5.0% 4.2% -0.8% OTHER 4.8% 5.1% 4.6% -0.5% PURPOSE MALE 36.1% 35.6% 36.7% 1.1% DIRECTORS FY19 FY20 FY21 % CHANGE INDIVIDUAL FY19 FY20 FY21 % CHANGE FEMALE 63.9% 64.4% 63.3% -1.1% CONTRIBUTORS INDIVIDUAL CONTRIBUTORS WHITE 74.4% 73.6% 68.7% -4.9% WHITE 60.2% 53.9% 53.8% -0.1% T 2021 MALE 31.1% 34.5% 31.6% -2.9% BLACK 2.9% 3.5% 2.9% -0.6% BLACK 13.3% 16.9% 14.9% -2.0% T REPOR HISPANIC 3.9% 3.5% 4.0% 0.5% HISPANIC 15.7% 17.3% 17.2% -0.1% C FEMALE 68.9% 65.5% 68.3% 2.9% A APPENDIX ASIAN 14.5% 14.4% 20.1% 5.7% ASIAN 6.4% 7.3% 9.9% 3.3% IMP NON-BINARY 0.1% NA OTHER 4.4% 4.5% 4.3% -0.2% OTHER 4.5% 4.6% 4.2% -0.4% *CALCULATION & SCOPE FY21 data as of 1/30/2022. Percentages exclude associates who declined to state gender or ethnicity. FY21 data represents global workforce, including full-time, part-time and temporary or seasonal associates. 97 98
ESG Disclosures: U.N. Sustainable Development Goals (SDGs) O INTR SDG GOAL TARGET NO. WSI INITIATIVES REFERENCE End poverty in all By 2030, ensure that all men and women, in particular the 1.4 Our longstanding partnership with Fair Trade, as well as newer partnerships with Worker Wellbeing & ANET its forms everywhere poor and the vulnerable, have equal rights to economic organizations such as Nest, aim to lift people out of poverty through fair wages and Values-Aligned PL 1 resources, as well as access to basic services, ownership economic opportunity. In 2021, we expanded our goals around worker wellbeing: Pay Sourcing, pages 49-60 and control over land and other forms of property, $10M Fair Trade Premiums, $50M in Ethically Handcrafted™ products, and a broader inheritance, natural resources, appropriate new technology goal to source 75% of purchases from suppliers offering a worker wellbeing program. and financial services, including microfinance. End hunger, achieve food By 2030, end hunger and ensure access by all people, 2.1 In 2021, we raised over $2.5M for No Kid Hungry, an organization working to end Giving & Volunteering, 2 security and improved in particular the poor and people in vulnerable situations, child hunger in America by ensuring that all children have access to healthy food. pages 83-86 OPLE nutrition and promote to safe, nutritious and sufficient food all year round. Workers at our Fair Trade factories used their premiums to provide food for workers Fair Trade, pages PE sustainable agriculture during COVID-19. 57-58 Ensure healthy lives and By 2030, substantially reduce the number of deaths and 3.9 We consider the chemicals and finishes used in our products. We use certifications Responsible Materials, 3 promote well-being for illnesses from hazardous chemicals and air, water and soil including GREENGUARD Gold and STANDARD 100 by OEKO-TEX® to test that our pages 31-34 all at all ages pollution and contamination. products are safe from harmful chemicals and volatile organic compounds (VOCs). Our products contribute to cleaner indoor air quality. Ensure inclusive and By 2030, ensure that all learners acquire the knowledge 4.7 In our corporate business, we host engagement events and trainings to educate Worker Wellbeing, equitable quality and skills needed to promote sustainable development, associates about WSI's sustainability efforts, such as our Impact Summit, pages 53-60 PURPOSE education and promote including, among others, through education for human encouraging them to adopt sustainability in their own roles and personal lives. In 4 lifelong learning rights, gender equality, global citizenship and appreciation our supply chain, we have a robust and long-standing social compliance program opportunities for all of cultural diversity. which includes targeted supplier trainings on topics such as human rights. Our partnership with HERproject provides gender equity training to change attitudes around women’s empowerment. T 2021 Achieve gender equality Ensure women’s full and effective participation and equal 5.5 Female-identifying individuals hold over 50% of our executive positions at the VP level Corporate Governance, T REPOR 5 and empower all women opportunities for leadership at all levels of decision making and above, and 67% of our Board seats. pages 75-76, Appendix C and girls in political, economic and public life. pages 97-98 A APPENDIX IMP 99 100
ESG Disclosures: U.N. Sustainable Development Goals (SDGs) OO INTRINTR SDG GOAL TARGET NO WSI INITIATIVES REFERENCE Ensure availability and By 2020, protect and restore water-related ecosystems, 6.6 In partnership with the Arbor Day Foundation, our family of brands set a goal to Climate & Energy, ANETANET sustainable management including mountains, forests, wetlands, rivers, aquifers and protect and restore our forests. 1.5M trees have been planted to date, contributing to pages 27-30 PLPL 6 of water and sanitation lakes. the estimated 1.5B gallons of avoided water runoff that Pottery Barn’s original 3M tree for all goal will help provide. The WSI family of brands has since committed to expanding our tree planting goal to 6M trees by 2023. Ensure access to By 2030, increase substantially the share of renewable 7.2 To achieve carbon neutrality in our operations, our roadmap focuses on efficiencies Climate & Energy, affordable, reliable, energy in the global energy mix. 7.3 and renewable energy. We have a 10-year renewable energy roadmap in place and pages 21-26 7 sustainable and modern will continue making changes to our business through retrofits, efficiencies and green energy for all By 2030, double the global rate of improvement in energy power to achieve our climate goals. OPLE efficiency. PE Promote sustained, Take immediate and effective measures to eradicate forced 8.7 Our robust and long-standing social compliance program is based on the conventions Ethical Production inclusive and sustainable labor, end modern slavery and human trafficking and 8.8 of the International Labor Organization and the UN’s Guiding Principles on Business Worker Wellbeing economic growth, secure the prohibition and elimination of the worst forms of and Human Rights. We strive to avoid adverse human rights impacts—such as human Supply Chain Labor 8 full and productive child labor, including recruitment and use of child soldiers, trafficking, child labor and forced labor—from the outset by embedding principles Practices Policy employment and decent and by 2025 end child labor in all its forms. of respect and dignity throughout our business, integrating them into our company Human Rights Policy work for all policies and relevant procedures. Support for worker wellbeing programs, such as Fair Vendor Code of Protect labor rights and promote safe and secure working Trade Certified, protect labor rights and create safe and healthy working conditions. Conduct PURPOSEPURPOSE environments for all workers. Build resilient Increase the access of small-scale industrial and other 9.3 Our partnership with Nest helps build a new handworker economy intent on making Worker Wellbeing & infrastructure, promote enterprises, in particular in developing countries, to home- and small workshop-based labor visible and safe. In 2021, we announced Values-Aligned 9 inclusive and sustainable financial services, including affordable credit, and their a goal to invest $50M in Ethically Handcrafted™ products across WSI by 2025. We Sourcing, pages 49-60 T 2021 industrialization and integration into value chains and markets. have a longstanding commitment to supporting global craft traditions. To preserve foster innovation this cultural heritage, we source products from our global network of handcraft and artisan vendors, spanning 13 countries and more than 10,000 individuals. T REPOR C A APPENDIXAPPENDIX Reduce inequality within By 2030, empower and promote the social, economic and 10.2 We continue to make progress against our Equity Action Plan, a set of commitments Diversity, Equity & IMP and among countries political inclusion of all, irrespective of age, sex, disability, dedicated to fighting for racial justice and equity. In efforts to create diverse teams, Inclusion, 10 race, ethnicity, origin, religion or economic or other status. this year we saw positive results for promotional opportunities for female-identifying pages 61-66 employees, year-over-year improvement in the diversity of our new hires, and conducted a gender pay assessment. 101 102
ESG Disclosures: U.N. Sustainable Development Goals (SDGs) O INTR SDG GOAL TARGET NO WSI INITIATIVES REFERENCE Make cities and human Strengthen efforts to protect and safeguard the world’s 11.4 We support efforts to protect and safeguard the world’s cultural and natural heritage Worker Wellbeing & ANET settlements inclusive, cultural and natural heritage. 11.5 through our investment in handcrafted products. Our partnership with Nest helps Values-Aligned PL safe, resilient and build a new handworker economy intent on making home- and small workshop- Sourcing, pages 53-60 sustainable By 2030, significantly reduce the number of people based labor visible and safe. We set a goal to invest $50M in Ethically Handcrafted™ Giving & Volunteering, affected and substantially decrease the direct economic products across WSI by 2025. pages 83-86 losses caused by disasters, with a focus on protecting the poor and people in vulnerable situations. We support organizations and partners like Good360 and Habitat for Humanity, who assist those with damaged or lost homes, or those seeking decent, affordable housing. OPLE Ensure sustainable By 2030, achieve the sustainable management and 12.2 We met ambitious goals for responsibly sourced wood and cotton. We implemented Responsible Materials, PE consumption and efficient use of natural resources. 12.5 a Material Innovation Library to guide our transition to lower-impact, recycled and pages 31-34 12 production patterns responsible materials across our brands. By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. Take urgent action to Strengthen resilience and adaptive capacity to climate- 13.1 We have a 2030 Science-Based Target across all three Scopes, as well as a goal to be Climate & Energy, combat climate change related hazards and natural disasters in all countries. 13.2 carbon neutral across Scopes 1 and 2 by 2025. We have a 10-year renewable energy pages 21-26 13 and its impacts roadmap to reduce emissions in our operations, as well as a vendor engagement plan PURPOSE Integrate climate change measures into policies, strategies and raw material roadmap to reduce emissions in our value chain. and planning. Conserve and sustainably By 2025, prevent and significantly reduce marine pollution 14.1 We continue to eliminate virgin plastic in our supply chain, such as by Waste & Circularity: T 2021 use the oceans, seas and of all kinds, particularly from land-based activities, transitioning vinyl bag packaging to paper hang tags and reducing our reliance on Reuse, Renewal & 14 marine resources for including marine debris and nutrient pollution. EPS foam. Through use of REPREVE certified recycled plastic fibers, we diverted Recycling, pages 41-42 sustainable development 93 million plastic bottles from polluting oceans to date. We also remain committed T REPOR to using responsibly sourced cotton, whose practices reduce pollutants and runoff C into waterways. A APPENDIX IMP 103 104
ESG Disclosures: U.N. Sustainable Development Goals (SDGs) O INTR SDG GOAL TARGET NO WSI INITIATIVES REFERENCE Protect, restore and By 2020, promote the implementation of sustainable 15.2 We are members of WWF’s Forests Forward, a program that works on the ground Climate & Energy, ANET promote sustainable management of all types of forests, halt deforestation, in forests of different types to demonstrate sustainable management and sourcing pages 27-28 PL use of terrestrial restore degraded forests and substantially increase practices. We recognize the Forest Stewardship Council® as the gold standard for ecosystems, sustainably afforestation and reforestation globally. certification of healthy forest management and sustainable timber, and continue to manage forests, combat source FSC wood to achieve our goal of 75% of products labeled with one or more of desertification, and our social or environmental initiatives. halt and reverse land degradation and halt biodiversity loss OPLE PE Promote peaceful and End abuse, exploitation, trafficking and all forms of 16.2 Our rigorous social compliance and audit programs are committed to eradicating Ethical Production, inclusive societies for violence and torture against children. human trafficking, child labor and forced labor in our global product supply chains. pages 45-48 sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels PURPOSE Strengthen the means Encourage and promote effective public, public-private and 17.17 We partner with NGOs, third-party certifiers and field-level sustainability standards Certifications & of implementation civil society partnerships, building on the experience and to verify sustainability claims on select products and practices, sharing knowledge, Standards, pages and revitalize the resourcing strategies of partnerships. resources and driving sustainable business. 81-82 global partnership for sustainable development T 2021 T REPOR C A APPENDIX IMP 105 106
ESG Disclosures: SASB Multi-line and Specialty Retailers & Distributors O INTR TOPIC ACCOUNTING METRIC CODE RESPONSE REFERENCE ANET Energy Management in (1) Total energy consumed, (2) CG-MR-130a. 1 (1) 963,231 GJ 2021 Impact Report: Climate & Energy, pages 21-26 PL Retail & Distribution percentage grid electricity, (3) (2) 98.8% CDP Climate Disclosure percentage renewable (3) 1.2% Data Security Description of approach to CG-MR-230a. 2 As the consumer and our business continue to shift online, we are dedicated to 2021 Impact Report: Cybersecurity & identifying and addressing safeguarding our customers’ personal information and prioritizing cybersecurity. This Data Privacy, page 78 data security risks commitment is reflected in our governance structure; our data security policies and Annual Report, page 10 procedures; and our systems to measure, monitor, and respond to data breaches and WSI Privacy Policy OPLE cyberattacks. See references for full description of approach. PE (1) Number of data breaches, CG-MR-230a. 2 We use a series of technologies and practices to prevent data security breaches, detect 2021 Impact Report: Cybersecurity & (2) percentage involving and respond to potential data security issues. In the event of a policy change or data Data Privacy, page 78 personally identifiable breach, our policy requires that we notify data subjects in a timely manner. Our WSI Annual Report, page 10 information (PII), (3) number of associates, as well as third parties who provide services on our behalf, are required by customers affected policy, practice, and contract, if applicable, to treat customer information with care. Our policies and standards are reinforced by training and engagement to ensure that the privacy and security of our customers is central. WSI discloses this information in accordance with the SEC’s Commission Statement and Guidance on Public Company Cybersecurity Disclosures. See references for partial reporting. PURPOSE T 2021 T REPOR C A APPENDIX IMP 107 108
ESG Disclosures: SASB Multi-line and Specialty Retailers & Distributors O INTR TOPIC ACCOUNTING METRIC CODE RESPONSE REFERENCE ANET Labor Practices (1) Average hourly wage and CG-MR-310a. 1 We continue to invest in our associates, including increasing minimum wage to $15 per 2021 Impact Report: Associates, pages 77-78 PL (2) percentage of in-store hour for hourly associates as of FY21 year end. employees earning minimum CG-MR-310a. 2 2021 Impact Report: Associates, pages 77-78 wage, by region The key to our success as a company is our associates, and we strive to attract, develop CG-MR-310a. 3 and retain the best talent in Retail. We actively track and report on labor practices, Human Rights Policy (1) Voluntary and (2) including involuntary and voluntary turnover, internally on a regular basis. involuntary turnover rate for in-store employees We take pride in keeping a work environment that complies with employer responsibility standards. We are committed to providing a safe and healthy work environment for our OPLE Total amount of monetary associates, visitors, suppliers and contractors, maintaining respectful workplaces and PE losses as a result of legal upholding equal opportunities for every associate. We comply with all national as well proceedings associated as state and local laws regarding wages, benefits and hours worked, and we recognize with labor law violations the rights of workers to make an informed decision as to whether to associate or not with any lawful organization, consistent with applicable laws. We conduct compliance training for executives, managers and employees, and we expect everyone in the company to follow our Code of Conduct, regardless of rank or position. See references for partial reporting. PURPOSE Workforce Diversity & Percentage of gender CG-MR-330a. 1 (1) WSI management: 62% female, 39% racially diverse in global workforce 2021 Impact Report: Diversity, Equity & Inclusion, Inclusion and racial/ethnic group (2) All other employees (not management): 68% female, 46% racially diverse in global pages 61-66 representation for (1) workforce. Williams-Sonoma, Inc. is a member of CEO Action for Diversity & Inclusion, management and (2) all was listed in the 2022 Bloomberg Gender-Equality Index and ranks among Forbes’ Best Diversity, Equity & Inclusion other employees Employers for Women (2019-21) and Forbes’ Best Employers for Diversity (2020-22). We’re committed to increasing gender and racial representation and advancement T 2021 across our business. Our Associate Equity Networks are a core element of our Equity Action Plan and lead change and innovation for our company diversity practices. See references for full reporting and data. T REPOR C Total amount of monetary CG-MR-330a. 2 WSI provides equal opportunity for all associates and has policies to protect associates A APPENDIX losses as a result of legal from discriminatory actions in our workplace. No associate may be discriminated against IMP proceedings associated with due to race, color, religion, gender, gender identity, gender expression, sexual orientation, employment discrimination ancestry, national origin, age, marital or veteran status or disability. 109 110
ESG Disclosures: SASB Multi-line and Specialty Retailers & Distributors O INTR TOPIC ACCOUNTING METRIC CODE RESPONSE REFERENCE ANET Product Sourcing, Revenue from products CG-MR-410a. 1 YE 2021 41.2% of our cross-brand net sales was from product* certified by third-party 2021 Impact Report: Brand Leadership, pages 79-80 PL Packaging & Marketing third-party certified to social and environmental standards, with an additional 2.5% from our internally verified environmental and/or social recycled declaration process. *U.S. & Canada, excludes drop-ship products. sustainability standards Discussion of processes to CG-MR-410a. 2 All of the products we sell are required to meet national and state laws for restricted 2021 Impact Report: Business Integrity, page 77 assess and manage risks and/ substances and emissions, and we invest in meeting and exceeding these standards Product Safety & Testing or hazards associated with throughout the WSI value chain—from design to production to testing. Our global team Responsible Materials & Finishes chemicals in products of product quality professionals support our global sourcing offices and vendor base, OPLE setting clear standards around restricted substances and emissions. Our network of PE quality assurance professionals and on-the-ground experts work directly with our vendor base to establish clear product reviews, develop testing protocols and implement routine inspections. We operate in-country labs in our major sourcing regions to inform product development. See references for full description of approach. Discussion of strategies to CG-MR-410a. 3 We are focused on reducing excess packaging, eliminating EPS foam, and increasing 2021 Impact Report: Packaging, pages 39-40 reduce the environmental recycled content in packaging materials. Our brand packaging teams aligned on a impact of packaging strategy to eliminate unnecessary packaging and transition to less impactful packaging materials, including investing in resources to explore more sustainable packaging PURPOSE alternatives. See references for full description of approach. Facilities Number of: (1) retail locations CG-MR-000.a (1) 544 retail stores Not applicable. (2) distribution centers (2) 25 distribution centers and hubs T 2021 Square Footage Total area of: (1) retail space CG-MR-000.b (1) 6,004,000 sq. feet Not applicable. T REPOR C (2) distribution centers (2) 11,792,617 sq. feet A APPENDIX IMP 111 112
Task Force on Climate-Related Financial Disclosures TCFD O INTR GOVERNANCE: DISCLOSE THE ORGANIZATION'S GOVERNANCE AROUND CLIMATE-RELATED RISKS AND OPPORTUNITIES ANET a) Describe the Board’s oversight of climate- The Nominations, Corporate Governance and Social Responsibility Committee (the “Committee”) of the Company’s Board of Directors oversees ESG matters, including climate- PL related risks and opportunities. related issues. The Committee is comprised of 3 Directors who monitor the Company’s environmental, social and governance policies and advise on policies and strategies that could inform our social and environmental impact and risk profile. The Committee engages regularly with management on climate-related issues; for example, approving updates to WSI’s climate and environmental strategy and policy disclosures, receiving quarterly updates on WSI’s climate and environmental-related goals and achievements and reviewing WSI’s recent Science-Based Target. The Board of Directors’ review of environmental and social topics is obtained from WSI’s EVP of Sourcing, Quality Assurance, and Sustainable Development through the updates it receives from the Committee, and through annual updates from the organization’s dedicated sustainability team. The organization’s dedicated sustainability team presents to the full Board at least once a year to monitor and review existing and proposed strategy, goals and targets. The Audit and Finance Committee, composed solely of Directors who are independent in accordance with New York Stock Exchange listing standards, meets periodically with the Company’s independent auditors, the Company’s internal auditors, and management to advise the Board and management on policies and strategies pertinent to our Risk Management process. OPLE PE b) Describe management’s role in The Executive Vice President of Sourcing, Quality Assurance, and Sustainable Development leads both the organization’s dedicated global team of sustainability professionals as assessing and managing climate-related well as a working group of cross-functional leaders. Together, they determine strategies, policies and goals related to sustainability and regularly report to and seek input from risks and opportunities. the Committee on those matters, including climate-related issues. Climate-related issues are monitored in a variety of ways, from tracking and reporting on GHG emissions in our operations, to tracking and reporting on our responsibly sourced material initiatives, to identifying and assessing climate-related supply chain risks. The dedicated sustainability team works across the enterprise, both within brands and within shared services, to drive progress to shared goals and embed accountability for sustainability programs across departments. This team partners with in-country sourcing teams, brand design and merchants, packaging engineers, retail operations, human resources, and supply chain operations to set and meet goals. Additionally, climate risk is integrated into our enterprise-wide Risk Management process, and detailed in our most recent CDP Climate Disclosure. PURPOSE STRATEGY: DISCLOSE THE ACTUAL AND POTENTIAL IMPACTS OF CLIMATE-RELATED RISKS & OPPORTUNITIES ON THE ORGANIZATION'S BUSINESSES, STRATEGY & FINANCIAL PLANNING WHERE SUCH INFORMATION IS MATERIAL a) Describe the climate-related risks and As part of setting a Science-Based Target and completing our CDP Climate Disclosure, we identified short, medium and long-term risks and opportunities related to climate. These T 2021 opportunities the organization has identified range from physical, regulatory, and transition risks to opportunities to meet growing consumer demand for more sustainable, lower footprint products. over the short, medium, and long term. T REPOR C A APPENDIX b) Describe the impact of climate-related risks In setting a Science-Based Target across all three scopes, as well as a goal to be carbon neutral in our operations, we are aligning our business with a low carbon economy. Our Scope IMP and opportunities on the organization’s 3 reduction focuses on materials and production, downstream transportation, and product use, highlighting the most material and highest leverage priorities. businesses, strategy, and financial planning. 113 114
Task Force on Climate-Related Financial Disclosures TCFD O INTR STRATEGY (CONTINUED): DISCLOSE THE ACTUAL AND POTENTIAL IMPACTS OF CLIMATE-RELATED RISKS AND OPPORTUNITIES ON THE ORGANIZATION’S BUSINESSES, STRATEGY, AND FINANCIAL PLANNING WHERE SUCH INFORMATION IS MATERIAL ANET PL c) Describe the resilience of the organization’s We currently use qualitative climate risk scenario analysis, but plan to add quantitative in the coming years. strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. RISK MANAGEMENT: DISCLOSE HOW THE ORGANIZATION IDENTIFIES, ASSESSES AND MANAGES CLIMATE-RELATED RISKS OPLE PE a) Describe the organization’s processes Climate-related risks are included in our annual Risk Assessment process and reflect geopolitical and global forces, as well as company-specific considerations. We use an industry for identifying and assessing climate- standard five-step integrated end-to-end process to identify progress in addressing specific risks. related risks. b) Describe how processes for identifying, WSI’s risk management process identifies risks most material to the business on an annual basis. This process involves steps to ensure input is collected from across the assessing and managing climate-related risks organization. Senior management across the company provides input into which risks and opportunities could have a substantive financial or strategic impact to the business. are integrated into the organization’s overall Further follow-up work is done on our most significant risks as required. Short-, medium-, and long-term risks are included in the risk identification and management process. Key PURPOSE risk management. risk owners are identified and provide brief risk summaries that include steps taken to mitigate the risk, and annual plans and goals to continue to mitigate the risk. A discussion of these risk areas is addressed at meetings of the Board at least annually. For example, physical supply chain risk is always included as a significant risk. This includes acute climate- related natural disasters (e.g. floods, droughts) or chronic climate impact that results in volatile commodity cost. Mitigation entails a balanced global vendor landscape and materials sourcing strategy. Transition risks, such as brand reputation in contributing to a low carbon economy, are also considered as part of this process. Mitigation entails developing clear policies around high impact product categories, such as lighting, and establishing clear goals to work towards efficiencies, such as transitioning to energy-efficient LED lighting. T 2021 T REPOR C A APPENDIX IMP 115 116
Task Force on Climate-Related Financial Disclosures TCFD O INTR METRICS AND TARGETS: DISCLOSE THE METRICS AND TARGETS USED TO ASSESS AND MANAGE RELEVANT CLIMATE-RELATED RISKS AND OPPORTUNITIES WHERE SUCH INFORMATION IS MATERIAL ANET a) Disclose the metrics used by the We track the following metrics to measure progress related to climate-related risks and opportunities: GHG emissions across our value chain, Higg Facility Environmental Module PL organization to assess climate-related risks data from suppliers representing nearly 80% of our spend, raw materials data for textile fibers and wood, and waste disposal data. and opportunities in line with its strategy and risk management process. b) Disclose Scope 1, Scope 2 and, if 2021 Impact Report: Climate & Energy, pages 21-26 (Scope 1, 2 and 3 emissions) appropriate, Scope 3 greenhouse gas emissions and the related risks. OPLE PE c) Describe the targets used by the 2021 Impact Report: Company-Wide Goals, pages 11-12 organization to manage climate-related 2021 Impact Report: Appendix, Carbon & Electricity Intensity, GHG Emissions, pages 89-92 risks and opportunities and performance We set a Science-Based Target across all three scopes and a carbon neutral goal across our operations. We also set a landfill diversion goal that we will continue to progress toward. against targets. We will expand beyond our current goals for responsibly sourced cotton and wood to identify opportunities for responsibly sourced materials. PURPOSE T 2021 T REPOR C A APPENDIX IMP 117 118