12 GOALS & PROGRESS SUSTAINABILITY SOCIAL IMPACT & OUR GOALS ARE AN IMPORTANT PART OF OUR STRATEGY TO EMBED SOCIAL IMPACT AND SUSTAINABILITY INTO BUSINESS OPERATIONS. BELOW IS PROGRESS TOWARD OUR GOALS AS OF JUNE 30, 2021. Please read about our Racial Equity and Gender Equality commitments in the Inclusion, Diversity & Equity chapter, starting on page 32. GOAL GOAL 1 1 FY21 PROGRESS FY21 PROGRESS TARGET TARGET PROGRESS NOTES PROGRESS NOTES STATUS STATUS SUSTAINABILITY Climate and Energy Reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions 50% by 2030 from a 2018 base year. 2 3 59% Scope 1 and 2 reduction 50% reduction (FY 2030 target) In fiscal 2021, we continued to make progress towards our 2030 target through a portfolio of climate solutions. See pp. 56-63 for details. Reduce Scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution and business travel 60% per unit revenue by 2030 from a 2018 base year. 2 4 Fiscal 2021 data available in calendar year 2022 60% per unit revenue (FY 2030 target) In fiscal 2021, we engaged with suppliers through CDP Supply Chain and established an internal governance structure to oversee emissions reduction. See p. 64 for details. In fiscal 2020 and fiscal 2021, we achieved Net Zero and sourced 100% renewable electricity globally for our direct operations, reaching the target we set on joining RE100. 5 Responsible Sourcing As part of our continuous efforts to address issues that may exist within complex supply chains, by 2025 we will have identified sensitive ingredient supply chains and developed robust biodiversity and social action plans for them. We have identified a number of ingredients as priorities and have developed and are implementing biodiversity and social action plans (please see pp. 68-77 for details). As part of our ongoing review, we will continue to develop and implement action plans as per our prioritization process. By 2025, at least 90% of our palm-based ingredients 6 (palm oil and its derivatives) will be certified sustainable from RSPO physical supply chains. 71% (calendar year 2020) 90% In total, 100% of our palm-based ingredients 6 are certified under one of RSPO’s four certification types: Mass Balance, Identity Preserved, Segregated, or Book & Claim. 1. “B y 20XX” means by the end of calendar year 20XX, unless otherwise noted. 2. F or SBT goals, the base year is fiscal 2018 and completion year is fiscal 2030. 3. E xcludes brands acquired by ELC during or after fiscal 2021. 4. E xcludes brands acquired by ELC during or after fiscal 2020 and other acquisitions made prior thereto that have not yet been integrated into the relevant ELC systems. 5. EL C joined the RE100 campaign in 2017. Please see www.there100.org for more information. 6. E xcludes palm-based ingredients not directly procured by ELC, such as those procured by Third-Party Manufacturers (TPMs) and certain acquired brands not yet fully integrated into the relevant ELC systems. TARGET MET ON TRACK