37 SOCIAL IMPACT INCLUSION, DIVERSITY & EQUITY HONORING JUNETEENTH HONORING JUNETEENTH Before it became a federally mandated holiday, Before it became a federally mandated holiday, in 2020 we established Juneteenth as a permanent in 2020 we established Juneteenth as a permanent annual U.S. employee holiday to commemorate annual U.S. employee holiday to commemorate the end of slavery in the United States. In observance the end of slavery in the United States. In observance of Juneteenth in fiscal 2021, we invited employees of Juneteenth in fiscal 2021, we invited employees to participate in events to listen, learn, reflect, and act to participate in events to listen, learn, reflect, and act as we work collectively toward long-term, sustainable as we work collectively toward long-term, sustainable change at the Company and beyond. change at the Company and beyond. Additionally, ELC Good Works double-matched eligible Additionally, ELC Good Works double-matched eligible employee donations made between June 14-22, 2021, employee donations made between June 14-22, 2021, to the following nonprofit organizations: Black Lives Matter to the following nonprofit organizations: Black Lives Matter Support Fund, Equal Justice Initiative, NAACP Legal Support Fund, Equal Justice Initiative, NAACP Legal Defense and Educational Fund, National Museum of Defense and Educational Fund, National Museum of African American History and Culture, Race Forward, and African American History and Culture, Race Forward, and the Schomburg Center for Research in Black Culture. the Schomburg Center for Research in Black Culture. REPRESENTATION We are working to ensure that the end-to-end creative process accurately and consistently represents the Black experience, engages Black professionals, and that our products meet the needs of our Black consumers. • Our Research and Development and Legal Task Force on Inclusive Beauty expanded capabilities and testing for inclusive skin tone and ethnicity. We also increased our collaboration with brands on growing product concepts, claims, and opportunities for Black skin and Black cultural relevancy. • In February 2021, we launched an External Creative Advisory Board that meets quarterly with brand and creative leadership to accelerate our creative partnerships, expand our network of Black artists, and encourage the development of groundbreaking and relevant concepts and creative to connect to our Black consumers. • As of June 2021, a majority of our brands have developed ID&E governance and long-term strategies and identified areas of opportunities in line with their identities. Our brands are working to increase representation within their teams, develop meaningful collaborations with external talent, and increase product offerings and culturally relevant campaigns and activations for consumers. SUPPLIERS We are committed to leveraging our power to support Black-owned businesses. We commit to at least double the amount we currently spend on sourcing ingredients, packaging materials, and supplies from Black-owned businesses over the next three years. • We created a new role to lead our supplier diversity efforts. We also joined the National Minority Supplier Development Council (NMSDC) and renewed our membership with the Women’s Business Enterprise National Council (WBENC) to build connections and enable new supplier engagements with minority-and women-owned businesses. As of June 30, 2021, the Company purchased more than $217 million USD in goods and services from diverse and small-owned suppliers. INVESTING IN CHANGE We seek to meaningfully support external organizations and nonprofits pushing for systemic changes and racial and social justice. • Since announcing our commitment of $10 million over three years to support the work of prominent racial and social justice organizations, The Estée Lauder Companies Inc., its brands and the Lauder family, including through The Estée Lauder Companies Charitable Foundation and ELC Good Works awarded grants totaling more than $8 million USD to support external organizations and non-profits. Collectively, employees made over 4,500 donations between June 1, 2020 and June 30, 2021 to various racial equity nonprofits through ELC Good Works, totaling $3.1 million USD in employee donations and company matches. • We have deepened our support to the Black and AAPI community by accelerating our efforts to make racial equity a priority across the enterprise and have continued to champion initiatives that provide greater access to education through groups such as NAACP Legal Defense and Educational Fund, Inc.; the Equal Justice Initiative; Asian Americans Advancing Justice—AAJC; and The Young Women’s Leadership Schools (TYWLS), a program of the Student Leadership Network.