Human Resources coordinates Zimmer Biomet’s process to address any issues identified from the pay equity analysis. Individuals identified in the annual pay equity review continue to have their annual progress monitored in order to ensure that any pay issues are resolved. Collective Bargaining Zimmer Biomet has more than 20,000 active team members globally, approximately 200 of whom are affiliated with a U.S. collective bargaining agreement. Discrimination Policy Zimmer Biomet is an equal opportunity employer and is fully committed to a policy of treating all of our team members and job applicants equally. We take all reasonable steps to employ, train and promote team members on the basis of their experience, abilities and qualifications without regard to race, color, ethnic origin, nationality, national origin, religion or belief, sex, sexual orientation, gender reassignment, age, marital or civil partnership status or disability. We also take all reasonable steps to provide a work environment in which all team members are treated with respect and dignity and that is free of harassment based upon an employee’s race, color, ethnic origin, nationality, national origin, religion or belief, sex, sexual orientation, gender reassignment, age, marital or civil partnership status or disability. Zimmer Biomet does not condone any form of harassment, whether engaged in by team members or by outside third parties who do business with us. Product Quality Zimmer Biomet is committed to best-in-class product quality and the robustness of our Quality Management System. Every site has a stringent internal quality audit program. In addition, we have an independent corporate quality audit program and are audited periodically by external regulatory bodies such as the U.S. Food and Drug Administration (FDA) and other regulatory and nongovernmental competent authorities around the world. Our internal corporate audit and external audit results are closely monitored and reported at regular management review meetings, and we maintain a detailed set of key performance indicators in the quality area. In addition, the Quality, Regulatory and Technology Committee of the Board of Directors receives a comprehensive quality presentation at each quarterly meeting. We have multiple manufacturing sites proactively participating in the Medical Device Innovation Consortium (MDIC) and the FDA Case for Quality Voluntary Improvement program. For more information on this program, visit www.fda.gov/medical-devices/quality-and-compliance- medical-devices/case-quality Furthermore, we have a stringent supply chain monitoring program inclusive of quality, delivery and cost measures. In recent years, Zimmer Biomet has made substantial progress on quality system enhancements and remediation across our network. As of December 2021, we had one pending FDA Warning Letter, which pertains to our Warsaw, Indiana North Campus facility. While the Warning Letter at the Warsaw North facility remains active, following an FDA re-inspection in 2020, the FDA classified the site as Voluntary Action Indicated, or VAI. Zimmer Biomet (Warsaw North Campus facility) is partnering with FDA and MDIC as part of an industry pilot study (Accelerate Sustainable Capability) to help improve product quality and safety, enable compliance actions to be closed faster, and structure systems for sustainable continuous improvement. The pilot program leverages a maturity assessment program that includes action plans with FDA reviews. We have made significant investments in Quality Management System remediation and upgrades over the past four years. While these enhancements continue, we are very encouraged that these efforts have already resulted in a significant reduction in FDA product recalls during that time. In 2021, the FDA reportable recall total was 5, which was a 75% improvement compared to 2020. Year Class 1 Recalls Class 2 Recalls Class 3 Recalls Forms 483 Received Warning Letters Received 2016 1 40 1 3 1 2017 1 62 0 7 0 2018 1 48 0 3 1 2019 1 24 0 3 0 2020 0 21 0 1 0 2021 1 4 0 0 0 11
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