Suppliers 2021 TOTAL SPEND ON GOODS AND SERVICES 18 >$60B 2021 SPEND WITH DIVERSE SUPPLIERS 3 $13.2B A resilient and sustainable supply chain page 27 ESG and the supplier lifecycle page 28 GLOBAL SUPPLIERS, ACROSS 65 COUNTRIES 18 >20K Reducing supplier emissions As part of our work to reduce GHG emissions beyond AT&T’s own footprint, we set a science-based target to ensure 50% of our suppliers have, or will, set their own science-based Scope 1 and Scope 2 GHG targets by 2024. 20 THROUGH 2021 47% of suppliers have set science-based targets Enhancing supplier diversity In 1968, AT&T became one of the first U.S. corporations to have a supplier diversity program. Diverse suppliers bring value through unique skills and innovative ideas. Our program connects specialized internal supplier diversity managers with our sourcing teams to assist minority-, woman-, veteran-, LGBTQ+- and disability- owned enterprises around the U.S. with opportunities to provide products and services to AT&T. Our annual goal for supplier diversity spend is to surpass $10 billion in total procurement expenditures. 3 MORE THAN $213B procured with minority-, woman-, veteran-, LGBTQ+- and disability- owned enterprises since 1969 3 AT&T enhances our resilience by integrating ESG factors into supplier evaluation and selection. We’re also extending our environmental and social impact by reviewing our suppliers’ operations and encouraging them to set GHG emissions targets. Supply chain ESG integration We expect supplier business operations to be conducted in compliance with sustainability and diversity clauses in our contracts, which require conformance with the AT&T Principles of Conduct for Suppliers (Principles) and the AT&T Human Rights Policy. We require suppliers to verify adherence to our Principles through a self-attestation process every 18–24 months. Annually, we engage suppliers representing 80% of spend 19 with sustainability assessments developed through both CDP and the Telecommunications Industry Association. These assessments, which cover a range of ESG factors such as environmental management, circular economy, stakeholder engagement and a supplier’s management of its own supply chain, support our ability to integrate sustainability metrics into sourcing decisions. In addition, through our participation alongside peer telecom companies in the Joint Audit Cooperation, we engage suppliers at risk of noncompliance with social standards – such as child or forced labor, health and safety, freedom of association, working hours or compensation – in on-site audits and corrective action plans. Geographic risk mitigation In recent years, the world’s supply chain has faced unprecedented disruption. Surprisingly, past geopolitical events helped ensure AT&T was better prepared. 2018 U.S. tariffs on Chinese goods illustrated the risks associated with geographic supplier concentration and incentivized many of our suppliers to diversify their manufacturing footprint and reduce reliance on materials from a single country. To meet such challenges, AT&T began enhancing visibility into where our suppliers – and their suppliers – concentrate manufacturing of key products and components. This intelligence makes us better prepared for unforeseen events, such as the COVID-19 pandemic, and helps us achieve an industry-leading cost structure balanced with geographic risk mitigation. Our resilient and responsible supply chain SUPPLIERS OUR RESILIENT AND RESPONSIBLE SUPPLY CHAIN Read more: Responsible Supply Chain Issue Brief Business Continuity, Longevity & Innovation Issue Brief Human Rights Issue Brief • AT&T Supplier Diversity website Progress: Ensure 50% of suppliers adopt science- based GHG targets by 2024 2021 SUPPLIER ENGAGEMENT LEADER 47% 0 50% OVERVIEW AT&T AND SHAREHOLDERS CUSTOMERS AND COMMUNITIES EMPLOYEES SUPPLIERS ENVIRONMENT GOVERNANCE GOALS SUMMARY KPI s AT&T ESG SUMMARY REPORT 2022 AT&T ESG SUMMARY REPORT 2022 26 27