18 OUR COMMITMENT TO SOCIAL IMPACT & SUSTAINABILITY PRIORITY FOCUS AREAS FOR SOCIAL IMPACT AND SUSTAINABILITY As part of our strategic planning process, we continually evaluate areas of risk and opportunity for our business. In fiscal 2021, we completed a comprehensive, data-driven analysis to define, validate, and prioritize our social impact and sustainability focus areas. Specifically, we conducted a “Big Data” assessment of the global regulatory, corporate disclosure, and media environments as related to topics under consideration. We also evaluated stakeholder interest through desk research and direct engagement, including extensive internal alignment and outreach to external stakeholders. As part of the assessment, we considered each matter’s relevance to our business strategy and objectives; importance to key stakeholders; and potential impact on the environment, society, and economy. The priority focus areas analysis is a point-in-time evaluation. Even as many of our previously highly ranked issues remained constant, we saw a significant elevation for the issues of inclusion, diversity, and equity and employee health and safety. These changes reflected the racial and social justice movements in 2020 and the impacts of the COVID-19 pandemic. Climate change also increased in importance, especially for external stakeholders. Transparency and consumer citizenship and sustainability needs emerged as additional priorities, reflecting demand for greater disclosure and access to environmental and social information. Our priority focus areas are reflected in our corporate goals and commitments and are integrated into our strategic planning and risk management processes. We map our priority focus areas to related Global Reporting Initiative (GRI) Standards. Throughout this report, we provide a closer look at our approach and performance related to these topics. STAKEHOLDER ENGAGEMENT We seek to build productive relationships with our key stakeholders, including employees, consumers, investors, retailers, nongovernmental organizations (NGOs), suppliers, regulators, policymakers, and local communities. These relationships depend on active engagement and meaningful dialogue to strengthen bonds and expand trust. As we shape the future of beauty, we incorporate stakeholder perspectives we believe will help drive our future success. The types of stakeholder engagements and topics discussed concerning social impact and sustainability matters vary widely. For example, we engage with our employees in various ways including: direct interaction with managers or through Human Resources business partners; our company’s intranet; social media; town halls, special presentations, and learning events; and employee engagement and pulse surveys. Topics covered during employee engagement include ID&E, benefits, learning and development, and work-life structure, among others. FY21 PRIORITY FOCUS AREAS FY21 PRIORITY FOCUS AREAS GRI STANDARDS GRI STANDARDS CLIMATE CHANGE AND GHGS GRI 305: Emissions GRI 201: Climate Risk PRODUCT QUALITY AND SAFETY (including ingredient transparency) GRI 416: Customer Health and Safety GRI 417: Marketing and Labeling PRODUCT AND PACKAGING DESIGN (including green chemistry) GRI 301: Materials INCLUSION, DIVERSITY & EQUITY GRI 401: Employment GRI 405: Diversity and Equal Opportunity EMPLOYEE HEALTH AND SAFETY GRI 403: Occupational Health and Safety RESPONSIBLE SOURCING GRI 308: Supplier Environmental Assessment GRI 414: Supplier Social Assessment TRANSPARENCY GRI 102: General Disclosures CONSUMER SOCIAL IMPACT AND SUSTAINABILITY NEEDS GRI 416: Customer Health and Safety GRI 417: Marketing and Labeling COMMUNITY ENGAGEMENT (including social investments) GRI 201: Community Investments