13 All information gathered from the auditing process is stored in a global system and accessible to all Zimmer Biomet businesses. Supplier Diversity Policy We believe that a diverse supply chain strengthens our ability to carry out our Mission and improve the communities in which we live and work. Zimmer Biomet’s Supplier Diversity Policy in the United States assists in establishing and maintaining business relationships with suppliers that are either certified in diverse categories by the Small Business Administration or self-certified where applicable. We assign a Small Business Liaison Officer (SBLO) as an administrator for the Supplier Diversity Program. The SBLO assures that reports documenting procurement levels, broken down by supplier classification, are prepared as requested by government agencies and contract groups. Annual Summary Subcontract Reports and Year End Supplementary Small Disadvantaged Business (SDB) Reports are submitted according to the Department of Defense. Zimmer Biomet’s diversity reporting obligations to the U.S. Federal Government include spending in the United States and Puerto Rico in the following six diverse supplier categories annually: 1. Historically Underutilized Business Zone Small Business (HUBZone) 2. Service-Disabled Veteran-Owned Small Business (SDVOSB) 3. Small Business (SB) 4. Small Disadvantaged Business (SDB) 5. Veteran-Owned Small Business (VOSB) 6. Women-Owned Small Business (WOSB) Management of Risks Associated with Use of Critical Materials Zimmer Biomet has a Global Supply Risk Management process. We have established a systematic approach to: • Ensure continuity of supply for goods and services • Proactively manage (identify, assess, mitigate and monitor) potential supply risks which may result in product delays and/or revenue impact to the business • Ensure that a global process is being utilized across the Zimmer Biomet Global Sourcing Organization A key component in risk monitoring is the financial impacts that might occur in raw material scarcity and/or physical disruptions of Zimmer Biomet’s own operations or in the operations of our supply chain. To mitigate these risks, Zimmer Biomet uses a third party to rank our top suppliers against 73 financial ratios on a scale of 1-100 to understand the overall financial health of these suppliers. It is considered to have substantive strategic impact on Zimmer Biomet’s business if suppliers score below a 20 in this rating. Through a third-party vendor, we obtain international private company financial statements and have a greater than 85% success rate (and above 90% in certain markets) to measure the core health of a supplier out to 36 months, and predicting probability of default over 12 to 18 months via a quantitative model to generate a rating. Animal Testing Policy Zimmer Biomet’s use of animal testing is consistent with animal welfare acts around the world. We use animal testing when required to demonstrate biological safety for our products that cannot be demonstrated by laboratory benchtop tests or when required to demonstrate compliance with medical device regulations. The laboratories that Zimmer Biomet engages for animal testing typically have American Association for Accreditation of Laboratory Animal Care (A A ALAC) certification or have their own animal research committee (i.e., an independent review committee) to ensure compliance with national animal welfare acts. Zimmer Biomet does not perform animal testing directly; the work is contracted to labs. Clinical Trial Program We operate a robust global clinical research program that strives to collect meaningful clinical evidence to support our vast portfolio of products that ultimately help alleviate pain and improve the quality of life for people around the world. Our clinical research programs support the safety and effectiveness of our products, services and technologies in a compliant and transparent manner. Zimmer Biomet- supported clinical trials are conducted across many different programs, including sponsored multi-center global clinical trials, as well as Company supported smaller investigator initiated clinical trials.