CONTINUOUS IMPROVEMENT MODEL — 1ST ELEMENT • Prior responsible manufacturing performance: This includes previous audit results and participation in our capability building efforts. • Additional insight: This refers to information obtained by Dell social and environmental responsibility (SER) team members during regular factory visits or from independent sources, such as regulatory and third-party organizations. • Amount of spend with the supplier: This is an Risk assessment indicator of our influence with the supplier and the relative size of their operations. Our engagement with suppliers at any tier — Based on the results of the SAQ and additional 45 including final assembly, direct and sub-tier insight, we classify suppliers as low-, medium- or — begins with an assessment of their social high-risk. Suppliers that are determined to be high and environmental risks. We conduct initial risk risk are required to complete a third-party audit assessments for our suppliers as part of their that looks at conformance to the Responsible onboarding process before they begin to do Business Alliance Code of Conduct as part of our business with Dell. SER qualification process. Suppliers complete a self-assessment Our risk assessment efforts do not end here. questionnaire (SAQ) that enables us to determine We also monitor SER risk for our Dell factories risk level using the following criteria: and suppliers on an annual basis. Continuous • Geographic location: This considers risks at improvement is important for our own operations, the country and/or local level around social as well as those of our suppliers. concerns, such as child labor and forced labor, and environmental risks, such as water quality and air pollution. • Commodity: This considers specific risks associated with manufacturing, such as labor intensity, manufacturing processes and paints or chemicals involved in the production of a commodity. INTRO OUR PLAN GOALS DASHBOARD ADVANCING SUSTAINABILITY CULTIVATING INCLUSION TRANSFORMING LIVES ETHICS & PRIVACY SUPPLY CHAIN BY THE NUMBERS APPENDIX 107