Our Approach to Climate Change Macy’s recognizes the risk climate change poses to our business and our planet. That is why we are committed to monitoring and mitigating the risks to our operations and facilities, as well as to reducing our carbon emissions. Our reporting is informed by the Task Force on Climate- Related Financial Disclosures (TCFD) recommendations. Governance Board Oversight Our Board of Directors has ultimate oversight of environmental risks including those related to climate change; specific ESG mandates are included in the charters of the Board’s committees. The Nominating and Governance Committee is responsible for overseeing the company’s climate change–related programs and policies as part of its wider ESG oversight, including the responsibility to assess the adequacy and effectiveness of management’s ability to monitor, manage and mitigate ESG risks including climate. This committee is provided with sustainability updates, which include the company’s progress on sustainability and climate-related goals at least annually. The Compensation and Management Development Committee oversees the company’s human capital strategy and initiatives in support of a diverse and inclusive company culture. This committee provides guidance on talent and people strategies as well as labor relations, compensation and colleague engagement. The Audit Committee is responsible for overseeing enterprise risk management and mitigation actions for a variety of risks, including certain environmental, operational, IT, compliance and reputational risks. Additionally, this committee is responsible for reviewing ESG disclosures in our public filings, including those related to climate change. Management Role We ensure appropriate governance of sustainability including environmental topics by integrating sustainability into our overall management model. Our Chairman and Chief Executive Officer has ultimate responsibility for climate-related strategy. Our Chief Financial Officer, Chief Legal Officer and Chief Transformation and Human Resources Officer, working with our investor relations team, engages with stakeholders on ESG issues and provides feedback to management and the Board. The Chief Supply Chain Officer, who reports directly to the CEO and Chair, is responsible for teams that manage sustainability initiatives and supply chain transparency. Our Corporate Strategy Group has executive-level members from all of the company’s operating and functional teams and is led by the Chairman and CEO. Together with the company’s Sustainability Committee, this group determines how Macy’s can adopt business practices that help preserve and protect the environment. This group reviews sustainability and climate-related goals on an annual basis. Our Sustainability Executive Steering Committee is responsible for approving Macy’s sustainability strategy and priorities. This senior management team regularly discusses risks and opportunities related to environmental issues, including review of progress on sustainability and climate-related goals on a quarterly basis. Strategy We have identified climate change–related risks and opportunities that may impact our business over the short-, medium- and long-term. The nature of these risks depends on both the physical aspects of climate change as well as market regulations, pressure to reduce our carbon footprint and our ability to understand and respond to rapidly evolving developments. Our identified risks include the following: Regulatory Risks: Unfavorable global, domestic or regional economic or political conditions and other developments and risks could negatively affect our business and results of operations. For example, energy or carbon policies (both existing and emerging) with influence on our energy suppliers have the ability to impact indirect costs to our operations through shifts in energy prices. Current environmental and climate-related regulation—both at a State and Federal level–are monitored as part of the Enterprise Risk Management process. Reputational Risk: Maintaining our company’s reputation and brand at a high level is critical to our operations and financial results. We believe our reputation and brand are partially based on the perception that we act equitably and honestly in dealing with customers, employees, business partners and shareholders. Reputational risk in relation to climate-related issues encompasses both supply chain | Sustainability Report 2020 Return to Table of Contents 19