74 SUSTAINABILITY RESPONSIBLE SOURCING PALM OIL Palm oil derivatives are an important ingredient used in many of our formulations. Palm oil derivatives refer to the final ingredients created from palm oil that are used in our products, such as surfactants, emulsifiers, and emollients. They are odorless, with a smooth and creamy texture that makes them a beneficial ingredient to use in our formulations. In calendar year 2020, we purchased approximately 3,600 metric tons of palm oil-based derivatives, which represent less than 0.01% of the world’s annual production of palm oil-based derivatives. While this amount makes us a comparatively low-volume user of palm-based ingredients relative to other sectors, we are committed to taking concrete action with our suppliers to build sustainable and ethical palm supply chains. Currently, 100% of our purchased palm-based ingredients are certified to Roundtable on Sustainable Palm Oil (RSPO) standards for sustainable production * . ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) We have been a member of RSPO, the leading convening body that develops and sets the standards for sustainable palm oil and enables palm oil certification, since 2014. We are also signatories to the RSPO’s North American Sustainable Palm Oil Network (NASPON) Charter Agreement. NASPON is a multi-stakeholder platform to collaborate, educate, inform, and build momentum to help North American companies make and deliver on commitments to source sustainable palm oil. *Excludes palm-based ingredients not directly procured by The Estée Lauder Companies, such as those procured by Third-Party Manufacturers.