65 SUSTAINABILITY CLIMATE AND ENVIRONMENT REDUCING PLASTIC PALLET WRAP At our manufacturing and distribution facilities, pallets containing boxes are wrapped in stretch wrap film to prepare the boxes for shipment. The film is low density polyethylene (LLDPE) and, based on the location of the facility, there is not always a viable recovery option. We are addressing the use of plastic stretch wrap film with two pilot projects: • In fiscal 2021, we began collaborating on a project with some members of the Ellen MacArthur Foundation Network to design and pilot a circular business-to-business (B2B) product protection solution for transporting bulk shipments that eliminates single-use plastic stretch wrap film. This cross-sectoral group is focused on researching and piloting three different pathways to eliminate single-use stretch wrap used in a linear path: replacing stretch plastic with a compostable film; implementing reusable materials for securing pallets; and improving the recovery of single-use, linear plastic-based film for higher value and closed loop recycling solutions. It is anticipated that the pilots and results will be detailed in a white paper to be published in spring of 2022. • Additionally, we began piloting a sustainable load containment system that reduces the use of stretch wrap film by 30%. After using the system for one month in a busy distribution center, we were able to reduce stretch wrap film by 34% per pallet. INNOVATING FOR REDUCED PRODUCT WASTE For nearly 10 years, we have worked with g2 Revolution, an organization that takes difficult-to- recycle items and finds new ways to reuse them. Nearly every one of our freestanding stores in the United States * transfers their unsold products and testers to g2 Revolution, which then uses them as ingredients to make other products. In fiscal 2021, we were able to divert nearly 23,000 pounds of waste. *Does not include freestanding stores in California. WASTE Our facilities follow the waste-minimization hierarchy—reduce, reuse, and recycle—and look for opportunities to share best practices. If waste cannot be reused or recycled, it is converted to energy by licensed power plants or by co-processing at cement kilns. Our facilities manage electronic waste in accordance with our company policies that are based on applicable environmental regulations for recycling. In fiscal 2021, we again achieved zero industrial waste-to-landfill for 100% of our global manufacturing, distribution, and innovation sites * . Going forward, we plan to continue to maintain this commitment status. *Does not include DECIEM site acquired in May 2021.