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