9 9 Governance $14.7 billion $13.1 billion R&D spend, an increase of 20% compared to 2020 total tax contribution $5.22 billion Global Impact Spend with small and diverse suppliers 82% of invited suppliers participated in CDP Supply Chain Climate program 35.7% women on the Board of Directors Governance Best Practices in 2021 • Announced a significant change to our corporate governance with a new role of Executive Chairman of Johnson & Johnson (Alex Gorsky), effective January 3, 2022, alongside the appointment of a new Chief Executive Officer, Joaquin Duato. • Conducted Health Care Compliance training, completed by 97% of sales and marketing employees, in addition to Code of Business Conduct training across the Enterprise. • Revised Our Credo escalation procedure and communicated it broadly to all employees, emphasizing that every employee is empowered to speak up on any matter relating to ethical conduct or compliance. • Enhanced our strategic approach to human rights by conducting an enterprise-level gap analysis of our human rights approach and held workshops to further develop and define a long-term strategic framework that will shape our human rights focus areas and action plans. • Advanced human rights in our own operations with human rights audits at key Johnson & Johnson sites; reinforcement of fair labor practices in our own operations with our annual living wage analysis and wage adjustments; and a new examination of the potential risk of excessive work hours for employees in our operations. In 2021, we also introduced a Foundational Human Rights Learning and Education Course in 26 languages. • Completed the Transparency International UK Corporate Anti- Corruption Benchmark , which is designed and verified by independent experts and includes meeting the legal requirements of the UK Bribery Act and the U.S. Foreign Corrupt Practices Act. Our overall score ranked highly in the benchmark relative to other industry participants. • Expanded our Supplier Sustainability Program to a total of 29,400 suppliers that includes conformance to our Responsibility Standards for Suppliers and EcoVadis assessments. • Initiated three Partnerships for Good with suppliers to advance innovative solutions in human rights, diversity performance and engagement in the End Workplace TB initiative. • Implemented initiatives to advance diverse supplier spend including expansion of our Buy Diverse digital procurement platform, engaging advocacy organizations in a global virtual procurement matchmaking event, and collaborating with 14 NGO partners outside the U.S., to promote minority business enterprises and social enterprises in Europe. • Began adopting new ways of monitoring and detecting illicit trade through enhanced product security intelligence and analytics with a new mobile app that provides field-based product authentication capabilities to enhance product security. 98% of employees completed Code of Business Conduct training Governance Highlights in 2021