22 SOCIAL IMPACT EMPLOYEE EXPERIENCE ENGAGING EMPLOYEES IN PRIORITIZING SAFETY Our employees are our best safety ambassadors. We encourage them to take proactive measures to ensure safety protocols are followed across our sites, including manufacturing, distribution, R&D, retail, and office locations. Our global EHS+S teams run campaigns throughout the year to keep specific safety initiatives front of mind. Our Behavior Based Safety (BBS) program reinforces our actively caring safety culture through employee-led initiatives and communications around best practices. In fiscal 2021, we had 42 BBS Steering Teams across 24 facilities in 11 countries. These teams supported more than 4,800 employees, completed more than 3,600 BBS observations, and developed and implemented more than 520 projects to improve safety and increase awareness for safe behaviors at their sites. In fiscal 2021, we used a third-party to assess the efficacy of the BBS program. More than 3,300 employees (83% participation) completed an 18-item survey, and 124 separate interviews were conducted virtually in 26 locations. Overall, the assessment showed that the BBS process is functioning well, and it is an integral component of the Company’s overall safety culture. Recommendations included strengthening the program by increasing employee and management engagement with BBS activities. Specific actions have already been introduced in the FY22 BBS Strategy to address communication, training, and recognition opportunities. MANAGING THE CONTINUED IMPACTS OF COVID-19 From the start of the COVID-19 pandemic, we adjusted our operations and developed global protocols and guidelines to protect the health and safety of our people and our consumers. For employees working in person, we instituted rigorous measures to minimize the risk of exposure, including enhanced cleaning, sanitation, and hygiene protocols; temperature monitoring and face mask requirements; along with social/physical distancing guidelines and other provisions. These measures will remain part of our standard operating procedures for as long as the level of risk calls for them. In fiscal 2021, we implemented additional layers of protection to further support our employees, such as the roll-out of personal protective equipment (PPE) minimum standards including face shields and glasses; COVID-19 testing capabilities at more than 20 sites across North America and EMEA; installing barriers and applying other physical distancing measures; implementing a daily work readiness questionnaire; and incorporating improvements to our HVAC systems at our manufacturing and distribution plants. Across the globe, our employees used more than 5 million masks to protect themselves and others while working on-site. We worked diligently to reopen our stores in ways reflective of our values of safety and service to both our employees and our consumers. We also continued to leverage technology to reinvent our workplace to accommodate thousands of employees working remotely and instituted guidelines for phased office reopening across our global regions. Our actions were informed by the continued guidance of our Medical Advisory Board. Convened in April 2020 at the start of the pandemic, the board is comprised of leading physicians and health professionals with expertise across a variety of disciplines. The Medical Advisory Board works closely with our internal Health and Safety Team and Company leaders to guide our health- and safety-related efforts. PROGRESS TOWARD OUR GOALS GOAL: We will drive safety to continue decreasing the total incident rate * to ensure continued world class–leading levels, with a goal of 0.15 by the end of calendar year 2025. We achieved a total incident rate of 0.18 in fiscal 2021, a decrease from 0.23 in fiscal 2020. *Total incident rate is the number of OSHA recordable incidents per 100 workers. Excludes brands acquired by ELC during or after fiscal 2020. ELC’s ability to adapt its workplaces around the world to the ‘new normal’ of COVID-19 has been exceptional. The Company has implemented robust guidelines for physical distancing, hygiene, and mask-wearing for populations in supply chain, retail, and offices, but, more importantly, has created these guidelines with a flexibility to adapt given changing local restrictions and public health guidance. DR. JESSICA HERZSTEIN Medical Advisory Board “ “