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