Macy’s Private Brand uses the Sustainable Apparel Coalition (SAC) Higg Index Facility Environmental Module and Facility Social and Labor Module to gauge the environmental and social performance of our manufacturing facilities. In 2020, we rolled out the Higg Index Facility Environmental Module (FEM) to over 500 facilities in our supply chain— most of them associated with Macy’s strategic suppliers— representing over 60% of our total private label procurement spend. Approximately 200 Tier-1 factories and over 160 Tier-2 facilities shared their FEM results with us, allowing us to monitor their sustainability performance. Additionally, 30 of our Tier-2 facilities shared their Higg Index Social and Labor Module with us, giving us visibility into their compliance. Environmental Responsibility in Our Supply Chain Responsible chemical management is integral to our product safety efforts, especially as customers increasingly seek information about product ingredients and purchase products that have been formulated without certain chemicals. Our chemical management oversight extends from product concept through customer use. The Product Integrity and Quality Assurance Group, an internal function, collaborates with product-development teams to provide guidance about potential issues related to materials or manufacturing, interfaces with offices and suppliers as needed and oversees quality and testing programs. This group also performs conflict minerals screening to keep conflict minerals out of our supply chain. Chemical Phase-Out Goal We continue to advance our previously established goal to develop and implement our first Private Brand Restricted Substance List covering apparel, footwear and home textiles in 2022 and non-apparel product categories beginning in 2024. Additionally, we seek to develop and implement our first Private Brand Manufacturing Restricted Substance List for children’s apparel/footwear and home textiles by 2023 and non-apparel product categories beginning in 2025. Macy’s Private Brand restrict the use of certain flame retardants (15 flame retardants) in soft line products including apparel, upholstered furniture and children’s products. This is communicated to our suppliers via our product integrity manual. Avoiding Conflict Minerals Our Conflict Minerals Policy sets forth our requirements for supplier due diligence, risk assessment and compliance. The Policy applies to Private Brand products produced by Macy’s, Bloomingdale’s, Bluemercury and their respective subsidiaries, and we prepare and file an annual Conflict Minerals Report with the Securities and Exchange Commission. As part of our due diligence, we use an independent third party to survey our suppliers annually to determine if conflict minerals are used in their supply chains and to identify the sources of those conflict minerals. We also require that our Tier-1 Private Brand suppliers source metal trim components from our Nominated Trim Supplier list. Trim suppliers who are not able to meet or maintain these expectations risk being removed from our program. | Sustainability Report 2020 Return to Table of Contents 15