6 Environment Best Practices in 2021 • Added new on-site solar arrays at our facilities in China, Colombia, South Africa and Thailand. • Introduced on-site Power Purchase Agreement (PPA) structure in the form of multiyear “energy as a service” contracts at two sites, enabling GHG reduction benefits without capital investment. • Reduced carbon impact of logistics with new automated 3D freight loading plan that optimizes space utilization of shipping containers and reduced road distances traveled in Europe through distribution center routing optimization. • Advanced product end-of-life initiatives across Pharmaceutical and MedTech with product take-back, reprocessing and/or recycling programs. For example, we relaunched our SAFE RETURNS program in the U.S. for home-administered immunology products after removing the hazardous material classification and replacing containers with regular envelopes, enabling more convenient preparation and postage. • Improved packaging sustainability across several products, increasing recycled content and recyclability. For example, we replaced plastic trays for TREMFYA (guselkumab) with Pulp Injection Molding trays and reduced primary packaging weight across several MedTech products. 6 Environment Environment Highlights in 2021 52% 50% electricity use from renewable sources decrease in Scope 1+2 GHG emissions intensity (MT CO 2 e/ million $) since 2016 A /A- CDP A List rating for climate change disclosure and A- for water security 89% manufacturing and R&D sites certified to ISO 14001 67 LEED-certified buildings 86% operational waste diverted from disposal Our operational (Scope 1+2) GHG emissions goal is validated by the Science Based Targets initiative (SBTi) as being consistent with the reductions required to keep global warming to 1.5°C. Our operational carbon neutrality goal goes beyond what the latest climate science deems necessary to meet the goals of the Paris Climate Agreement. Our value chain (Scope 3) goal is validated by SBTi as being consistent with a 2°C reduction scenario. Climate Action Plan At-A-Glance Became a signatory of the United Nations-backed Race to Zero campaign and SBTi Business Ambition for 1.5°C, with an ambition to reach net zero emissions across our value chain by 2045.
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