53 SOCIAL IMPACT SOCIAL INVESTMENTS AMPLIFYING EMPLOYEES’ GOOD WORKS As a company with a deep culture of purpose, we provide diverse, inclusive, and personalized employee programs, such as Volunteer Time Off, virtual team volunteer opportunities, and Company matching campaigns to enhance employee experience. We are inspired by the passion our employees show in donating their time and money to causes close to their hearts. That collective generosity of spirit is why we created ELC Good Works, our charitable matching gifts and volunteerism platform that allows eligible employees to create and sign up for volunteer activities, as well as request to have their donations and volunteer hours matched by the Company. In fiscal 2021, ELC Good Works was expanded to include all regions—employees in 19 markets can participate in both volunteering and giving. Over the course of the year, $2.9 million was collectively donated to more than 3,500 nonprofits on the platform around the world. ELC GOOD WORKS CHAMPIONS To build on the success of ELC Good Works, in fiscal 2021 we launched the ELC Good Works Champions program, further enabling passionate employees to lead and amplify company-wide volunteer events to drive social impact initiatives. The ELC Good Works Champions program serves as a critical driver in achieving ELC’s goal to engage 50% of eligible employees in regional, brand, or local volunteer or giving programs by 2025. Piloted in the United States for eligible employees, * the program will be globalized in a phased approach. Already, ELC Good Works Champions have led multiple virtual volunteer activities that bridged the remote working conditions precipitated by COVID-19. For example, activities included creating inspirational digital cards for students, recording audio storybooks for hospitalized children, and designing e-flashcards to motivate young girls to become future leaders. VOLUNTEER TIME OFF In keeping with our long-standing culture of giving and to encourage employees to stay involved in their communities and in the causes that matter most to them, we launched the Volunteer Time Off (VTO) program in fiscal 2021. This program allows eligible ** employees to receive paid time off to volunteer with their favorite nonprofits during standard work hours and to receive $20/ volunteer hour to donate to the nonprofit of their choice. With the introduction of the VTO policy and expanded virtual volunteer opportunities, our employees have even greater flexibility when it comes to giving their time to causes that matter to them. COMMUNITY IMPACT GRANTS The Community Impact Grant allows our Employee Resource Groups (ERGs) the unique opportunity to direct corporate social investments and commit volunteer hours to the nonprofits that align with the mission and values of the ERGs. In fiscal 2021, we expanded our Community Impact Grant program to include the United Kingdom, in addition to the United States. Ten ERGs in the United States and five ERGs in the United Kingdom participated in the program in fiscal 2021. Learn more about our ERGs on page 27. Additionally, in celebration of Inclusion, Diversity & Equity Week 2021 (May 17-21, 2021), ELC Good Works provided a double match for employee donations to select nonprofit partners supported by the ELC Community Impact Grant. * Any traditionally NYC-based full-time or part-time regular employee in good standing. **Active U.S.-based full-time regular corporate employees can utilize up to 16 VTO hours per calendar year. Active U.S.-based part-time regular corporate employees and active U.S. full-time regular and part-time regular Aveda retail and supply chain employees can utilize up to eight VTO hours per calendar year. PROGRESS TOWARD OUR GOALS GOAL: By 2025, we will engage 50% of eligible employees in regional, brand, or local volunteerism and giving programs such as ELC Good Works, The Breast Cancer Campaign, and the M·A·C Global Volunteer program. In fiscal 2021, 19% of eligible employees participated in volunteerism and giving programs as recorded via the ELC Good Works platform. * *Metric reflects information self-reported to ELC Good Works, the Company’s internal platform used to report employee volunteerism, employee monetary donations, and ELC charitable matching gifts. In September 2020 (fiscal 2021), ELC Good Works expanded to 17 markets outside the U.S. and the U.K. At the end of fiscal 2021, ELC Good Works was available to eligible employees in 19 markets globally. “Eligible employees” are those who meet certain criteria, which varies by market, and have access to ELC Good Works. Excludes brands acquired by ELC during or after fiscal 2020. For additional information, see Management Assertion.