60 SUSTAINABILITY CLIMATE AND ENVIRONMENT ENGAGING EMPLOYEES IN SOLAR PROJECTS We are engaging employees in our journey to contribute to a stable climate and a healthy planet. On Earth Day, we launched an interactive feature on our intranet that allows employees to view real-time solar energy-generation data from the Company’s on-site solar arrays. By accessing the link to each system’s solar dashboard, employees can view information such as the energy-generating capacity in MW of electricity and the real-time energy production in kilowatt hour (kWh) for each array. The data are displayed in daily, monthly, and yearly increments, as well as for the lifetime of the systems to date. DIRECT OPERATIONS (SCOPE 1 AND 2 EMISSIONS) We have adopted a portfolio approach to reducing GHGs, which includes the use of on-site renewables, energy efficiency projects, green utility contracts, and renewable energy credits. Our priority is to reduce our operational carbon footprint by deploying high-quality solutions and investing in projects to bring additional renewable energy to the grid. OUR FOCUS ON ENERGY EFFICIENCY We track environmental performance at our facilities * and have processes in place to collect energy metrics. We use this data to measure the effectiveness of energy-saving activities, which include energy-reduction projects such as lighting retrofits, air flow and temperature-management systems, occupancy sensors, and equipment upgrades to decrease overall energy use and carbon emissions. INVESTING IN WIND ENERGY We are party to a Virtual Power Purchase Agreement (VPPA) for 22 megawatts (MW) of wind power from the Ponderosa wind farm in Oklahoma, United States. This arrangement represents our largest renewable energy agreement to date. The Ponderosa wind farm generated more than 57,700 megawatt hours (MWh) of power in fiscal 2021. When large companies like The Estée Lauder Companies set their sights on an ambitious target, they can achieve huge change at a rapid pace. This is exactly the sort of leadership we need to see in the climate decade, as we work to halve global emissions. HELEN CLARKSON Chief Executive Officer, the Climate Group “ “ “ “ *Excludes sites that were acquired after January 1, 2020.