CONTENTS LETTER FROM LETTER FROM SUSTAINABILITY 2025 SUSTAINABILITY SUSTAINABILITY DRIVING SOCIAL HELPING PRESERVING NOEL WALLACE ANN TRACY HIGHLIGHTS SUSTAINABILITY MANAGEMENT GOVERNANCE IMPACT MILLIONS OF OUR STRATEGY HOMES ENVIRONMENT Sustainable and Efficient Logistics Customer service and logistics teams at Colgate continue to launch sustainable and efficient In 2021, we increased the reach of our Load Optimization project to Latin America (Andina and Central logistics initiatives around the world. These efforts are aimed at reducing costs and environmental America). Using SAP Transportation Management—a tool currently in place in Canada, the United States, impacts while improving customer service. Mexico, Brazil and Vietnam—we are automatically planning shipments to their optimal capacity. This has led to more efficient load planning and minimization of the number of shipments to deliver our products in a Potential tactics for the logistics Net Zero carbon transition include efficiency opportunities, such timely fashion. as route and load optimization, reduced packaging and shipping less water (e.g., concentrated formulas). In addition, to move towards carbon-free transportation and facilities, tactics include In addition, Colgate agreed to participate in the United Nations Global Compact’s Young SDG Innovator increased use of emerging “green” technologies, renewable energy and driving vendor climate program. Three early-in-career Colgate employees from the Global Supply Chain organization from our alignment and innovation. engineering, logistics and procurement functions will collaborate with the program’s facilitators and peers through brainstorming sessions, skill trainings and workshops to define and implement an actionable Net Zero Carbon for Logistics roadmap to reduce Colgate’s logistics-related climate impacts and support our Net Zero carbon goal. Sustainable Products and Consumers Logistics Efficiency Approximately 80% of our GHG emissions are attributable to the use and disposal of our products and packaging, so we have committed to help avoid emissions from consumers by 20% by 2025 against a 2016 baseline. Our most dramatic opportunities to shrink our climate impact therefore lie in the design of our products and influence on consumer behavior. Some examples include: Hierarchy Carbon-free Transportation & Facilities • Designing packaging such as our first-of-it-kind • Raising consumer awareness of water Carbon Removal recyclable toothpaste tube, that either uses conservation—our Save Water messaging less plastic, is made with recycled content, or is campaign. recyclable, reusable or compostable often has associated carbon reduction benefits. 2021 SUSTAINABILITY AND SOCIAL IMPACT REPORT PAGE 65