36 SOCIAL IMPACT INCLUSION, DIVERSITY & EQUITY RACIAL EQUITY The Estée Lauder Companies has long held inclusion and diversity among its core values. The events of 2020 and the movement around racial equity sparked an even deeper level of accountability. We pledged to more fully understand the systemic issues surrounding race, identity, and representation and, as a company, dedicated ourselves to being part of the solution for the long term. Our Racial Equity Steering Committee—led by Tracey Travis, Executive Vice President, Finance, and Chief Financial Officer; and Michael O’Hare, Executive Vice President, Global Human Resources—laid the groundwork for sustainable, long-term change through a series of commitments to our Black employees and consumers in the United States. These commitments serve as the foundation for our forward-looking and global approach to inclusion, equity, and engagement for all employees. FISCAL 2021 PROGRESS TOWARD ACHIEVEMENT OF OUR RACIAL EQUITY COMMITMENTS LISTENING AND LEARNING We are committed to fostering a stronger internal culture of advocacy and inclusion to help employees share their voices, be heard, and collectively affect change. • 94% of U.S. corporate and field employees completed unconscious bias trainings, and training has begun in the United Kingdom. The learning will continue as new trainings and programs are rolled out globally over the next fiscal year. Unconscious Bias training is now mandatory globally for all full-time employees, including manufacturing and distribution employees. • 100% of the Executive Leadership Team completed one-on-one trainings, as well as team talent evaluations and support, through a newly launched Inclusive Leadership Behaviors and Talent Planning program. • Our ID&E COE organized more than 35 skill-building workshops globally on issues of race and micro-aggressions for specific brand and corporate audiences. TALENT AND OPPORTUNITY We are working to ensure we are providing more equitable access to professional development and advancement for our Black employees in the United States and hold ourselves accountable for creating a workforce that is more representative and responsive to people of all backgrounds. • Our internal sponsorship program, “From Every Chair,” launched in February 2021 as a program for Black employees at the Executive Director level and below in the United States, matching every participant to a leadership-level sponsor or mentor. It was developed with our Network of Black Executives (NOBLE) ERG, our Global Talent team, and our ID&E team. The program will continue to expand to support other underrepresented groups. • As part of our external recruiting efforts, we deepened partnerships with recruitment firms and national diversity organizations, such as the Executive Leadership Council and the National Black MBA Association. • We launched “She’s Howard, Own Your Power,” a multi-year program in collaboration with Howard University that aims to recruit alumnae to participate in experiential learning, career advisement, professional training, and self-empowering mentorship opportunities. • As of June 30, 2021, 9.2% of new hires within the year in the United States were filled by Black candidates. This equates to a 35% increase in the proportion of our hires that are Black compared to fiscal 2020. • Black representation within our corporate population increased from 5.9% to 6.4%, driven largely by the increased proportion of hires who are Black. At the same time, the Company’s total U.S. population as of June 30, 2021 was 11.7% Black, which is a decrease from 13.4% at the end of fiscal 2020. This decrease is driven primarily by COVID-19-related reductions in the retail population, where Black representation is higher.