75 SUSTAINABILITY RESPONSIBLE SOURCING SUSTAINABLE PROCUREMENT We strive to source our palm-based ingredients responsibly and sustainably with respect for local communities and the environment. We do this by procuring ingredients from suppliers that can demonstrate adherence to the principles outlined in our Supplier Code of Conduct and our No Deforestation, No Peat, No Exploitation (NDPE) Policy. Read our NDPE Policy here. We assess compliance with these policies through supplier performance, increased traceability, and third-party certification to RSPO’s Principles and Criteria. We communicate our progress with respect to sustainable palm oil procurement on a yearly basis through the Annual Communication of Progress (ACOP) in accordance with RSPO requirements. Working with Third-Party Manufacturers We have communicated to our Third-Party Manufacturers (TPMs) our expectation that they use palm-based ingredients that are from an RSPO physically certified sustainable source (Mass Balanced, Segregated, or Identity Preserved). By influencing our suppliers, we make progress toward our goals and help promote a stable and sustainable palm supply chain for others MONITORING AND TRANSPARENCY We are a founding member of Action for Sustainable Derivatives (ASD). This alliance of brands and suppliers aims to address responsible sourcing in the complex palm derivatives supply chain by collaborating to harmonize approaches on transparency, risk monitoring, and evaluation. Through our membership in ASD, we are committed to establishing traceability to the point in the supply chain where suppliers can demonstrate that the palm ingredients meet our sourcing principles and collectively monitor and address grievances. Additionally, through our ASD membership, we are able to leverage the dynamic monitoring of our traced supply chain through a shared grievance dashboard. Once a grievance is filed, the reports are reviewed and investigated. If substantiating evidence in support of a grievance is found, the grievance will be addressed through industry collaboration or through our own individual action as a company. WE PLAN ON CONTINUING OUR MONITORING AND TRANSPARENCY EFFORTS BY: • tracing our palm supply chain to achieve increased traceability to the mill and beyond • driving industry alignment through our partnership with ASD • contributing to shared monitoring of risk, grievances, and continuous improvement plans, as needed. ENHANCED VISIBILITY THROUGHOUT THE PALM VALUE CHAIN 79% 28% 8% of our palm derivative volume is traceable to the mill level. of our palm derivative volume is traceable to the plantation level. increase in transparency of our palm supply (from 71% to 79% volume traceable to mill). PROGRESS TOWARD OUR GOALS GOAL: By the end of calendar year 2025, at least 90% of our palm-based ingredients (palm oil and its derivatives) will be certified sustainable from RSPO physical supply chains (Mass Balance, Identity Preserved, or Segregated). * In calendar year 2020, 71% of our palm-based ingredients * were certified sustainable from RSPO physical supply chains (Mass Balance and Identity Preserved). In total, 100% of our palm-based ingredients * are certified under one of RSPO’s four certification types: Mass Balance, Identity Preserved, Segregated, or Book & Claim. We are on track to meet our goal of 90% RSPO certification from physical supply chains by end of calendar year 2025. *Excludes palm-based ingredients not directly procured by The Estée Lauder Companies, such as those procured by Third-Party Manufacturers. (TPMs) and certain acquired brands not yet fully integrated into the relevant ELC systems.