Falabella S A : Anexo ESG 2023

ESG ANNEX 2023

CORPORATE GOVERNANCE	CREATING LONG-TERM VALUE	VALUE CHAIN	SOCIAL IMPACT	ENVIRONMENTAL IMPACT

ABOUT THIS DOCUMENT

We are convinced that the best way to fulfill our purpose of making life simpler and more enjoyable is by building genuine connections with our shareholders, customers, employees, local communities, and the planet. This is how long-term value is created, as we understand that becoming sustainable is a good business practice and that we are essentially investing in the future. While we know we still have a long way to go, we are proud of what we have achieved so far as a company. In 2022, and for the seventh consecutive year, we were included in the Dow Jones Sustainability Index, being the only Chilean company in the four categories of: World, Emerging Markets, Chile and the Latin American Integrated Market (MILA). This positions us among the top ten most sustainable retailers in the world.

This is consistent with our sustainability strategy, which has five priorities: Climate Action, Circularity and Waste, Diversity and Inclusion, Social Impact and Corporate Governance. This report describes our progress this year, which is illustrated by initiatives from all our businesses.

In our commitment to transparency and accountability, we present this ESG Annex as a complementary report to our 2022 annual report.

This annex aims to provide a comprehensive overview of our ESG performance, initiatives, and targets. It constitutes an essential resource for investors, customers, employees, and communities who seek to understand how we integrate sustainability into our business practices.

We embrace a variety of global sustainability reporting standards and frameworks to guide our sustainability efforts, ensuring that we align with broad financial market dynamics, stakeholder interests, and diverse ESG ratings and market considerations. By voluntarily participating in various assessments and evaluations across the spectrum of sustainability, we subject our performance to rigorous scrutiny, reflecting a

commitment to best practices and continuous improvement. The ESG Annex serves as a platform to share additional information, insights,

and data points, further illustrating our commitment to sustainable development and transparent engagement with all our stakeholders.

2

CORPORATE GOVERNANCE	CREATING LONG-TERM VALUE	VALUE CHAIN	SOCIAL IMPACT	ENVIRONMENTAL IMPACT

ABOUT THIS DOCUMENT

This ESG Annex highlights our progress and achievements in key areas such as environmental stewardship, social impact, and corporate governance. We recognize that sustainability is an ongoing journey, and through this report, we also identify the challenges we face and outline our strategies for improvement.

In this ESG Annex, you will find detailed information on our sustainable sourcing practices, efforts to reduce our environmental footprint, initiatives to promote diversity and inclusion, community engagement programs, and responsible governance structures. Together with our Annual Report, we aim to provide a comprehensive overview of our sustainability strategy, policies, and practices, enabling stakeholders to assess our performance and hold us accountable.

Furthermore, the ESG Annex presents a snapshot of our long-term sustainability goals and the metrics we use to measure progress. We firmly believe in setting ambitious targets and regularly evaluating our performance against these targets to drive meaningful change. By sharing our aspirations and metrics, we encourage feedback, collaboration, and partnership from stakeholders to collectively address global challenges and seize opportunities for positive impact.

Falabella Group is dedicated to making a positive difference in the lives of our customers, employees, and the communities we serve. This

commitment to sustainable development is deeply ingrained in our corporate culture, and we are proud to present the ESG Annex as a testament to our ongoing efforts and progress.

We invite you to explore this report, learn more about our sustainability journey, and join us as we work towards a more sustainable and equitable future.

3

INDEX

Corporate governance:

• Board independence
• Experience and participation in other boards
• Board diversity
• Certification of Crime Prevention Model
• Executive incentives
• Risk management - Governance

Creating long-term value

• Double materiality
• Priorization of material topics
• Social Investments
• Contributions and other spending

Value Chain

• Cybersecurity governance
• Supply chain management
• Product recalls

Social Impact

• Living wage methodology
• Gender breakdown
• Employee development programs
• Employee hires and internal mobility
• Employee performance evaluation
• Employee support programs
• Employee turnover rate
• Employee engagement
• Health and safety indicators
• Customer satisfaction
• Human Rights

Environmental Impact

• Environmental policy & commitments
• EMS Certification / audit / verification
• TCFD
• Food Loss & Waste

4

Corporate Governance