Task Force on
Climate-related
Financial
Disclosures(TCFD)
2023 ReportTable ofcontents

Introduction

03

About Kenvue

03

About this report

03

About the Task Force on Climate-related Financial Disclosures (TCFD)

04

Reporting boundaries

04

Materiality

04

Legal notice: Forward-Looking statements

04

Data assurance

04

Introduction to report

04

Governance05

Board oversight

05

Management’s roles and responsibilities

05

Strategy

06

Identification of climate-related risks and opportunities

06

Scenario analysis

07

Physical climate scenarios

07

Table 1: Physical climate-related risks

07

Transition climate scenarios

08

Table 2: Transition risks

08

Table 3: Climate-related opportunities

09

Impact to business, strategy, and financial planning

09

Resiliency of our strategy to address climate-related risks

10

Risk management

11

Process for identifying and assessing climate-related risks

11

Process for managing climate-related risks

11

Integrating climate into our risk management

11

Metrics and targets

12

Metrics used to assess climate-related risks and opportunities

12

Our climate targets and performance

12

Greenhouse gas emissions

12

Table 4: Corporate GHG emissions

13

Cover credit: Sezanne, France Kenvue Manufacturing Site

Task Force on Climate-related Financial Disclosures (TCFD)

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Introduction
About Kenvue
With $15.4 billion in net sales in fiscal year 2023, Kenvue Inc. (Kenvue or
the Company) is the world’s largest pure-play consumer health company
by revenue and holds a unique position at the intersection of healthcare
and consumer goods. By combining the power of science with meaningful
human insights and digital-first capabilities, we empower consumers tolive healthier lives every day.
Formerly operating as the Consumer Health segment of Johnson &Johnson, on May 4, 2023, we began trading on the New York Stock
Exchange under the ticker symbol “KVUE” in connection with our initialpublic offering (IPO). Our name Kenvue (pronounced “ken·view”) is
inspired by two powerful ideas: “ken,” meaning “knowledge,” an English
word primarily used in Scotland, and “vue,” referencing insight. On
August 23, 2023, we completed our separation from Johnson & Johnson,
marking our first day as a fully independent, publicly traded company.
We seek to deliver sustainable profitable growth through deliveringscience-backed innovative products, solutions and experiences centeredaround consumer health. With a presence in more than 165 countries
worldwide and an over 135-year legacy, we are a global leader at theintersection of healthcare and consumer goods.
We operate our business through three reportable business segments:
1) Self Care, 2) Skin Health & Beauty, and 3) Essential Health. Our
differentiated portfolio comprises a range of products that include
iconic brands and widely recognized household names such as Tylenol®,
Neutrogena®, Listerine®, Johnson’s®, BAND-AID® Brand, Aveeno®,
Zyrtec®, and Nicorette®. This broad portfolio allows us to provide holistic
consumer health solutions to our consumers across a spectrum of
product categories and hold leading positions across numerous large andattractive categories globally and locally. These comprehensive solutions
are backed by science and several of our brands have a long history ofrecommendations by healthcare professionals, which further reinforces
our consumers’ confidence in our brands.
Our brand portfolio has global scale across four regions—1) North
America (NA), 2) Asia Pacific (APAC), 3) Europe, Middle East, andAfrica (EMEA), and 4) Latin America (LATAM)—and is well balanced
geographically with approximately half of our net sales generated outside
North America in 2023.

About this report
This report outlines our approach to identifying climate-related risks
and opportunities, informed by the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD).1 Highlights of the report
include our strategic initiatives, governance oversight, and continuous
efforts to manage climate-related risks and leverage opportunities
throughout the organization. This report should be read in conjunction
with our most recent Healthy Lives Mission 2023 Report, Annual Reporton Form 10-K, subsequent Quarterly Reports on Form 10-Q, and otherfilings made with the U.S. Securities and Exchange Commission (SEC).
Kenvue Virtual Power Purchase Agreement, Colbeck’s Corner Wind Farm,
Carson County, Texas

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Introduction
About the Task Force on Climate-related
Financial Disclosures

Legal notice: Forward-looking statements

This report is informed by TCFD guidance for voluntary reporting on

the Private Securities Litigation Reform Act of 1995, including

the risks and opportunities associated with climate change and aims

forward-looking statements related to, among other things, risks andto provide comprehensive disclosure based on the following key pillars:

opportunities associated with climate change and our related ESGi.

Governance: governance structure for climate-related decisionmaking including board oversight and management responsibilities.

ii. Strategy: climate-related risks and opportunities over different
time horizons that may affect business, strategy, and financial
planning. We evaluate the resilience of our strategies throughscenario analysis.
iii. Risk Management: risk management processes for identifying,assessing, and managing climate-related risks.
iv. Metrics and Targets: key metrics used to measure and track ourprocesses for managing climate-related risks and opportunities,
such as our reduction targets for greenhouse gas (GHG) emissions.

Reporting boundaries
Unless otherwise specified, the scope of this report includes Kenvue’s
business activities, facilities, value chain, marketed products, and otherdata and information related to the calendar year ending December
31, 2023. As the sustainability landscape evolves, Kenvue expects tocontinue to refine its TCFD disclosures to provide new information, data,
and risk methodologies for additional transparency and accountability.

This report contains “forward-looking statements” as defined intargets, estimates, projections, goals, commitments and expected results.
Forward-looking statements may be identified by the use of words suchas “plans,” “expects,” “may,” “will,” “anticipates,” “estimates,” “intends,”“goal,” “target,” “commitment,” and other words of similar meaning.
The reader is cautioned not to rely on these forward-looking statements.
These statements are based on current expectations of future events.
If underlying assumptions prove inaccurate or known or unknown risks
or uncertainties materialize, actual results could vary materially fromthe expectations and projections of Kenvue and our affiliates. A list anddescriptions of risks, uncertainties, and other factors can be found in
our filings with the U.S. SEC, including the Kenvue Annual Report on
Form 10-K for the fiscal year ended December 31, 2023, and subsequent
Quarterly Reports on Form 10-Q and other filings, available atwww.kenvue.com or on request from Kenvue. Kenvue and our affiliates
undertake no obligation to update any forward-looking statements,
whether as a result of new information, future events or developments,
or otherwise.

Data assurance
Independent third-party limited assurance was conducted byEnvironmental Resources Management Certification Verification

Materiality

Services (CVS) for certain data included in this report (Table 4).

In this report, our use of the terms “material,” “materiality,” and other

Introduction to reportsimilar terms is consistent with that of TCFD, the Corporate Sustainability
Reporting Directive (CSRD), the draft European Sustainability ReportingStandards (ESRS), and other standards referenced in this report, or refers
to topics that reflect our significant ESG impacts or that substantiallyinfluence the assessments and decisions of a diverse set of stakeholders.
We are not using these terms as they are used under the securities orother laws of the United States or as these terms are used in the context
of financial statements and financial reporting. For additional information
regarding our financial statements and financial reporting, please see our
Annual Report on Form 10-K, subsequent Quarterly Reports on
Form 10-Q, and other filings made with the U.S. SEC.

Kenvue’s Healthy Lives Mission (HLM), our Company’s environmental,social and governance (ESG) strategy, aims to build lasting positivechange for people, communities, and our planet. In June, we launched
our inaugural Healthy Lives Mission 2023 Report, which shares our ESG
strategy, goals, and commitments and how the Company worked to help
advance the well-being of both people and planet in 2023.
Among the key ESG and sustainability topics covered in the inaugural
Healthy Lives Mission 2023 Report, climate change was one of ninepriority areas for which we have established goals and commitments
to hold ourselves accountable and demonstrate progress. While climatechange poses risks, it also poses new growth opportunities for companies
in the transition to a lower-carbon economy.
This TCFD 2023 Report builds upon that acknowledgment anddemonstrates our proactive approach in integrating climate
considerations into our business strategy. As a new company, this is
our first climate-related risks and opportunities assessment. It will be
reviewed and updated periodically. By disclosing our climate-relatedrisks and opportunities informed by TCFD recommendations, we aim
to enhance transparency and accountability across our organization.

Task Force on Climate-related Financial Disclosures (TCFD)

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Governance
Board oversight
Our Board of Directors (Board) is deeply committed to strong corporate
governance and robust independent oversight, which it believes are
essential to driving sustained shareholder value. To that end, our Board
has adopted our Principles of Corporate Governance that, together with
our Amended and Restated Certificate of Incorporation, Amended andRestated Bylaws, and Committee charters, provide a holistic framework
for the Board’s oversight and corporate governance practices. The Board
oversees management and provides advice, counsel and oversight on thedevelopment and execution of our corporate strategies.
Our Board is composed of global leaders from various fields andindustries, with a diverse range of experience, skills, and perspectives
that provide the collective expertise, diversity, and independence
necessary for sound governance. The Board currently has 12 members,
eight of whom are independent under the rules of the New York Stock
Exchange, including an independent Chair of the Board. The Board
has three key Committees: the Audit Committee, the Compensation& Human Capital Committee, and the Nominating, Governance &Sustainability Committee.
Our full Board is ultimately responsible for oversight of our ESG
impacts, risks, and opportunities and ensuring our ESG priorities andcommitments are integrated into our long-term strategy. On an annual
basis, the full Board receives an in-depth update on our Company’s ESG
strategy, which we call our Healthy Lives Mission. After each regularlyscheduled Committee meeting, the Committees report to the full Board
with updates on their areas of designated ESG oversight responsibilities.
In addition, the Board Nominating, Governance & Sustainability
Committee is updated on climate-related risks, opportunities, and key
initiatives biannually. The Kenvue Board is also responsible for overseeing
senior management’s execution of its risk management duties and forassessing its approach to risk management.

Management’s roles and responsibilities
We have established a cross-functional ESG Steering Committee(ESG Steer Co.), which is composed of functional subject matter experts
and leaders across our organization that meet regularly to help us
effectively execute our ESG priorities. Led by the Global Head of ESG &Sustainability, the ESG Steer Co. tracks our key initiatives and reports ourprogress quarterly to the Kenvue Leadership Team.
The ESG Steer Co. identifies and manages interdependencies acrossworkstreams, ensuring resources are allocated and committed toadvancing projects. This contributes to project deliverables by providing
guidance and information, enabling rapid and effective escalation whenneeded. The ESG Steer Co. supports workstream leads, keeps current
on projects and initiatives, and serves as subject matter experts forannual Healthy Lives Mission Report content review. Moreover, it
advocates for and implements changes necessary to achieve ESG
goals and commitments.

Cheong Ju, Korea, Kenvue Manufacturing Site

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Strategy
By understanding our potential exposure to climate-related risks,
we position our Company to effectively navigate these challenges andhelp mitigate any potential resultant financial impacts. Our strategy
reflects our commitment to responsible leadership, underscoring ourbelief that proactive risk mitigation forms the foundation for sustainableprofitable growth.
In this strategy framework, we assess the challenges and opportunities
posed by climate change. Our approach addresses both immediaterisks and potential longer-term climate-related impacts, to provide acomprehensive overview to inform our climate strategy. This includes adetailed assessment of key risk factors, potential opportunities, and ourcommitment to building resilience.

Identification of climate-related risks and opportunities
In 2023, Kenvue finalized an enterprise-wide double materiality
assessment (DMA), aligned with the guidelines of the CSRD and thedraft ESRS. The topic of climate change emerged as material from bothan impact and financial risk/opportunity materiality perspective.
Building upon insights gained from our DMA, at the end of 2023, webegan a comprehensive TCFD assessment and climate scenario analysis
to inform our business strategy and support decision-making that aligns
with our commitment to proactive risk management, sustainability andresiliency. This initiative further explored and quantified the potential
impacts of climate change on our business operations, value chain,marketed products, and strategic priorities. The climate scenario analysis
integrated a range of time horizons, from short-term to long-term
perspectives, and various temperature scenarios, to assess both physicaland transition risks and opportunities aligned with the TCFD framework.
The TCFD assessment involved multiple steps and a cross-functionalteam of subject-matter experts (SMEs) at Kenvue, supported bythird-party consultant Environmental Resources Management. We beganwith a peer benchmarking exercise, where the climate strategies anddisclosures of our industry peers were reviewed to understand Kenvue’s
position in climate performance. We next performed a TCFD gap analysis
to establish areas for improvement to better meet good practices andguidance around climate reporting. With this foundational knowledge,
we developed an initial inventory of potential climate-related risks andopportunities. Through extensive engagement with internal SMEs fromacross multiple relevant Kenvue functions, we confirmed the accuracy
and relevance of the initial inventory and identified additional potential
climate-related risks and opportunities for inclusion in the inventory.
Some of the potential climate-related risks and opportunities includedin the inventory are:· Costs imposed by physical damages from extreme weather eventsand long-term environmental shifts· Costs resulting from business interruptions due to operational
downtime and supply chain disruptions linked to acute or chronic
climate events· Dependency on raw materials, including agricultural commodities
and plant-based materials vulnerable to shifting seasons andunpredictable weather patterns· Securing quality water and reducing consumption in water-stressedor scarce regions· Costs associated with fossil fuel and renewable energy sources· Increasing capital expenditures for climate adaptation andmitigation implementation· Impacted profitability from carbon pricing regulations and required
participation in carbon markets· Decreasing costs associated with the transition to lower-emissions
technologies, and to raw materials and products withlower-carbon footprints· Shift in investor sentiment and retail and end consumers’
preferences around climate topics· Improved resource efficiency through more efficient modesof transportation, production, and distribution· Access to new markets, uses, and customers by capitalizing
on eco-conscious products

Madrid, Spain, Kenvue Manufacturing Site

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Strategy
This inventory of potential climate-related risks and opportunities was rated

distribution centers, warehouses, and major offices — evaluating each forby internal SMEs based on their potential impact, likelihood of occurrence,

their unique vulnerabilities and current resilience measures. We selected

and alignment with our business objectives. From this rating, we identified

these facilities to align to our GHG emissions inventory, which includes all

possible climate-related risks and opportunities for further qualitative

Kenvue-owned sites where Kenvue has operational control, regardless of

scenario analysis, as described in Section 3.2 below.

building type; all leased facilities used for manufacturing and/or research

As a result of the scenario analysis, we identified a subset of five potential

and development; and leased, non-manufacturing and/or non-research andclimate-related risks and opportunities to evaluate for potential financial
impact on Kenvue. This subset is provided in Tables 1, 2 and 3.
The scenario insights derived from the TCFD assessment, and the potential
risks identified, will be integrated into our strategic planning and enterpriserisk management processes.

development facilities where the facility is greater than 50,000 square feet
and where Kenvue has operational control. We also assessed 30 key external
manufacturers and suppliers, including chemicals, active pharmaceuticalingredients, and packaging suppliers, to understand their specific risks
from acute and chronic hazards. Hazards included in the assessment were
extreme temperatures, flooding, tropical cyclones, wildfire conditions, water
stress, and landslides.

Scenario analysis
Scenarios representing potential future climate conditions and time frames
were applied for the physical and transition risk assessments. The selectedscenarios are not forecasts or predictions, but rather a possible set of future
conditions that may lead to a particular outcome within a given time frame.
We considered three time frames: short-term (0-5 years), medium-term(5-10 years), and long-term (20-30 years), to capture the evolving nature ofclimate risks and opportunities and their potential impacts on our businessstrategies. This approach seeks to ensure that our strategic decisions arethorough and adaptive, integrating resilience and sustainability into our
long-term planning processes.

Physical climate scenarios
In the context of climate change, “physical risks” refers to the adverse
consequences and financial vulnerabilities resulting from direct

Our assessment of physical risks utilized climate modeling projections
based on the latest standards approved by the United Nations (U.N.)
Intergovernmental Panel on Climate Change (IPCC). These projections
are categorized into prescribed GHG emissions scenarios known as Shared
Socioeconomic Pathways (SSPs). Each SSP combines qualitative narrativesof potential societal developments with assumed measures influencing
the trajectories of global emissions and subsequent global temperaturechanges. These scenarios outline a spectrum of potential outcomes.
In our analysis, we considered two physical risk scenarios as follows:· Low emissions scenario (SSP1-2.6) assumes carbon emissions
are significantly reduced to reach net zero after 2050 and maintainwarming below 2°C by 2100. To achieve this, society shifts from a focus
on economic growth toward lower resources and fossil fuel usage.
· High emissions scenario (SSP3-7.0) assumes global emissions

climate-related weather events (acute risks) and long-term environmental

double current levels and global warming exceeds 3.5°C by the end

shifts (chronic risks).

of the century. This scenario implies little change from the global

We performed a detailed physical risk screening across our operations andeconomy’s current trajectory of the usage of fossil fuels as its main

key supply chain partners. The analysis reviewed 41 of our global facilities —energy source.

including manufacturing sites, research and development centers,
Table 1: Physical climate-related risks
Risk driver

Description of potential business impact

Weather-related
physical damage to
Kenvue-owned facilities

Kenvue’s operations infrastructure, including manufacturing facilities, research and development centers, and administrative sites, may be vulnerable
to physical damages caused by acute weather hazards such as floods and hurricane-force winds. These events may result in costs to repair or
replace infrastructure, equipment, machinery, and/or inventory at each site.

Type: Acute physical

Kenvue maintains estimates for the property values of our facilities, including repair and replacement costs for buildings, equipment and inventory. To
estimate potential costs from flood inundation waters or hurricane wind speeds, we used damage curves that relate hazard intensity to a proportional
level of potential impact to each facility’s property value, such as those published by the European Commission and other published research.

Time horizon for impact:
short-, medium-,
and/or long-term

Business disruptionsat Kenvue-owned
facilities and suppliers
due to extreme
weather andclimate-related events
Type: Acute andchronic physicalTime horizon for impact:
short-, medium-,
and/or long-term

While we maintain property insurance for our manufacturing facilities and other owned and operated sites, quantifying potential costs related tophysical damages leveraging scenario-variant climate indicator data has identified locations that may benefit from additional loss estimation andemergency action planning.
Kenvue’s manufacturing facilities, research and development centers, administrative sites, and our suppliers may be susceptible to disruptions
in business operations caused by a range of acute and chronic hazards. Events such as floods, hurricanes, wildfires, landslides, and storms havethe potential to interrupt production processes, impact workforce availability, disrupt/halt the transportation of goods and services, and limit site
accessibility. Extreme heat may exacerbate these challenges by causing local electricity supply disruptions or creating unsafe working conditions,which could result in operational shutdowns or reduced efficiency. Facilities dependent on water may face additional risks during periods of droughtor heightened strain on water resources. These hazards may not only threaten operational continuity, but also may pose financial risks, including
potential revenue loss from production delays and the need for contingency planning to manage these potential impacts effectively.
Reputational and financial damage may also occur if customer orders cannot be fulfilled on time, affecting customer relationships and futurebusiness prospects as well as a potential market share loss if consumers switch to other brands.
Kenvue estimated the potential annual cost of business interruption at 41 of our owned-and-operated facilities. For some facilities this estimate wasprovided by our insurance provider, and for others we used facility-specific sales as a proxy. For each facility, a potential length of interruption wasdetermined for each scenario and time horizon using climate indicators for extreme heat, water scarcity, wildfires and landslides.
For the 30 supplier locations included in our physical risk assessment, we performed a qualitative assessment of baseline and future exposure toclimate hazards.
Physical risk screening and scenario analysis has identified locations that may benefit from additional assessment of water scarcity.

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Strategy
Transition climate scenarios
The transition to a lower-carbon economy may present policy,
legal, market, technology, and reputational risks as well as
business opportunities.
To assess the potential impacts of these transition risks andopportunities, we used two scenarios, including a 2°C or lower global
warming trajectory as recommended by TCFD. The scenarios usedwere modeled by the International Energy Agency (IEA) World Energy
Outlook (WEO) 2023. The IEA’s WEO is an annual report that provides
a detailed analysis of the global energy landscape and offers scenarios
for the future. It examines key trends and developments including energy
demand, supply, investments, and government policies. The two IEA WEO
scenarios we used are the Stated Policies Scenario (STEPS) and the Net
Zero Emissions Scenario (NZE):· Stated Policies Scenario (STEPS) explores how the energy
system evolves if governments retain current policy settings.
This includes the latest policy measures adopted by governments
around the world, such as the Inflation Reduction Act in the UnitedStates. This scenario results in an expected temperature rise of
2.5°C by 2100.
· The Net-Zero Scenario (NZE) shows a pathway for the global
energy sector to achieve net zero emissions by 2050, with advanced
economies achieving net zero prior to others. This scenario
also meets key energy-related Sustainable Development Goals(SDGs), in particular universal energy access by 2030 and major
improvements in air quality. It limits global temperature rise to 1.5°C.

Bangkok, Thailand, Kenvue Manufacturing Site

Table 2: Transition risks
Risk driver

Description of potential business impact

Increased raw
material prices

Some of Kenvue’s raw material prices may increase due to changing climate regulations. Agricultural raw materials, such as palm oil,soy and wood fiber, may be affected by EU deforestation regulations (EUDR), among others. Potential costs may result from shifting to
EUDR-compliant suppliers and from potential regulatory penalties. Developmental factors such as population growth leading to increased
demand for raw materials and deforestation may also affect raw material prices. Scenario data indicate that palm oil and soy may increasein price, which may result in an additional potential cost to Kenvue.

Type: Market and policy
Time horizon for impact:
short-, medium-,
and/or long-term

Kenvue primarily buys a small volume of palm oil derivatives, meaning that our upstream suppliers may use a very small amount of palm oil andpalm kernel oil to manufacture the oleochemical we purchase. Kenvue maintains data on our annual spend for palm oil derived raw materials.
To estimate the magnitude of potential increase to this annual spend due to climate factors, we obtained scenario-variant forecasts for palm oil
commodity price increases from the World Business Council for Sustainable Development (WBCSD). For example, palm oil costs may increase,driven by factors such as greater demand and lower commodity supplies. In our analysis, we assumed this price increase may pass through toour palm oil-derived ingredients.
We conducted a similar calculation for our soy-derived ingredients. Although climate scenario data shows a similar price trend for soy as for
palm, our current spend on soy-derived ingredients is significantly lower than palm, and we therefore estimate a potential negligible impact toour soy spending relative to palm oil.
As part of this analysis, we also estimated the potential impact of a carbon tax on a portion of our Scope 3 Category 1 emissions (“purchased
goods and services”). For the goods we included in this analysis such as packaging, plastic and resins, we used the IEA carbon price and apass-through rate, based on estimates available in published research. There may also be other direct and indirect increases to raw material
prices due to carbon pricing or other climate factors.

Carbon pricing
Type: Policy and legal
Time horizon for impact:
short-, medium-,
and/or long-term

Kenvue may incur potential costs due to taxes on Scope 1 and 2 emissions in areas of operation. For instance, the EU Carbon Border
Adjustment Mechanism (CBAM) may negatively impact import prices by imposing fees. A federal carbon tax in the United States does not
currently exist, though various state-level jurisdictions are beginning to impose carbon taxes or cap-and-trade systems. Additionally, there may
be a potential pass-through of carbon pricing on raw materials, including plastics and other packaging.
Kenvue has completed a full inventory of our Scope 1 and 2 emissions. To estimate the potential cost of carbon pricing, we applied the IEA’s
scenario-variant carbon price assumptions detailed in the World Energy Outlook noted above to our 2023 emissions by country. Aggregating
globally for both Scope 1 and 2 emissions indicates that Kenvue’s total carbon pricing exposure, under this scenario, may be immaterial.
As we continue to make progress on our goal of reducing Scope 1 and 2 emissions by 42% by 2030, versus our 2020 baseline, we will
accordingly reduce our exposure to this potential cost. We also continue to explore the benefits of power purchase agreements (PPAs) thatmay provide us with additional access to renewable electricity and further reduce Scope 2 emissions.

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Strategy
Table 3: Climate-related opportunities
Opportunity

Description of potential business impact

Increased product sales

Consumer demand for allergy medicine may increase due to longer pollen seasons. Research indicates that a warming climate may lead toextended pollen seasons in certain regions where Kenvue markets its products. Extended allergy season duration may result in greater demand
for Kenvue’s over-the-counter medicines since they are typically taken daily.

Type: Market
Time horizon for impact:
medium- and/or
long-term

To understand how climate change may affect these sales, we estimated the potential increase in pollen season length in the countries where
we sell specific allergy products. For each country, we used scenario-variant climate indicator data that projects the potential decrease in
the annual number of frost days in each location. Published research has estimated that pollen season lengths increase correspondingly withthe decrease in frost days. For example, in one scenario, the number of frost days in the Northeast USA may decrease, which correlates toa potential increase in pollen season length. We applied this potential pollen season increase to our current sales revenue linked to allergy
products by country to assess the potential overall increase in revenue.
Other climate-relevant factors may also influence the allergy medicine market. For example, diminishing air quality and increased precipitation
may lead to more widespread presence of allergens including mold. While the assessment we conducted is limited to pollen as a driver of allergy
demand, the results indicate that an adverse trend in global warming may present additional opportunity for this product category.

Impact to business, strategy, and financial planning
Kenvue may face potential impacts from both physical and transition
risks on multiple fronts. Physical damages to Kenvue-owned facilities
from climate-related extreme weather events can disrupt operations,which could require repairs that may have financial impact anddisrupt production schedules. These disruptions may require strategic
adjustments like increasing production capacity at unaffected backup

and end-of-life phases. Such policy changes may necessitate a strategic
reassessment and potential redesign of our supply chain to reduce
emissions, focusing on lower-carbon feedstocks and sustainablesourcing, efficient production methods, and technological upgrades.
This shift may lead to increased production and procurement costs,
requiring budgeting and adjustments to pricing strategies to maintainfinancial results.

facilities or maintaining safety stock to address customer satisfaction

Kenvue may also benefit from climate-related opportunities. For example,

and market competitiveness.

as climate change impacts environmental factors like pollen levels,

Similarly, weather-related business interruptions may affect both
Kenvue-owned facilities and external manufacturers and may lead tosupply disruptions, affecting the timely delivery of products to customers.
This may result in revenue loss and potential reputational damage if not
managed effectively through contingency plans and insurance coverage.
Some agricultural-based commodities are used in the formulation of
our products, and disruptions due to long-term climatic changes (i.e.,heatwaves or drought) or extreme weather events (i.e., severe storms or
flooding) may affect the growing conditions, availability, and cost of raw
materials such as palm oil and soy. Fluctuations in agricultural output
may also result in increased costs to secure limited resources during

there may be an increase in demand for effective allergy relief solutions.
Kenvue’s portfolio of over-the-counter allergy relief products are well
positioned to meet such a growing consumer demand. Our allergy relief
product offerings not only support our commitment to addressing healthconcerns exacerbated by environmental changes but also position us toresponsibly contribute to public health solutions. Additionally, investingin research and development for new allergy relief solutions aligns with
our strategy of science-backed innovation, strengthening our competitive
position in the consumer health sector.
Additional information regarding how an identified risk or opportunity
may impact our business is provided in Tables 1, 2 and 3.

supply shortages, potentially impacting profit margins and requiring
strategic partnerships or alternative sourcing strategies to mitigate
potential risks.
Climate change regulations aimed at reducing GHG emissions may
impose additional costs on agricultural producers, who may need toadopt more sustainable farming practices or invest in carbon inset and/or offset programs. These regulations can influence the cost structureof agricultural products, potentially leading to higher prices for raw
materials if producers pass on compliance costs to downstream buyers
like Kenvue.
Carbon pricing under Scope 1 and 2 emissions regulations may result in
new costs in certain jurisdictions, requiring expenditures for emissions
assessment, monitoring systems, and potentially higher operationalcosts. Beyond compliance costs, the transition may require strategic
investments in emissions reduction initiatives and renewable energy
sources, and financial planning to balance short-term financial
considerations with our long-term sustainability goals. The applicationof carbon pricing on plastics and chemicals under Scope 3 emissions
could mean that Kenvue may face increased costs associated with thefull product lifecycle, spanning the extraction, production, transportation,

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Strategy
Resiliency of our strategy to address climate-related risks

chain efficiency, and enhancing relationships with key suppliers, we can

The TCFD assessment and scenario analysis provided us with insights

better manage costs and navigate price volatility.

on how climate change may impact our business, which will inform our

We have set near-term targets for Scope 1, 2 and 3 GHG emissions whichclimate action and transition planning. By assessing three time frames

have been validated by the Science-Based Targets initiative (SBTi). Our

and different climate scenarios, we considered the unpredictable naturecommitment to set a net-zero target will further align Kenvue with globalof climate-related risks and opportunities and their potential impacts on

climate goals and better prepare us for forthcoming regulations. As partour business strategies across different planning horizons.

of our near-term targets, we’re working to reduce our emissions throughRecognizing the potential impacts of physical damage and operational

investments in renewable energy, energy efficiency, better fugitive

disruptions from climate-related natural threats, our management has
implemented site-hardening measures, resilience building design andconstruction, and maintains insurance coverage. These initiatives areintended to help safeguard our operations, minimize potential downtime,emissions management, fleet decarbonization projects, and our Supplier
Climate Action Program. We have key metrics to measure and track ourprocesses for managing climate-related risks and opportunities, such as
our reduction targets for GHG emissions highlighted in the “Metrics andand accelerate recovery from disruptions.

targets” section.

We are actively building resilience to transition risks, including the rising

Simultaneously, we are exploring climate-related opportunities as part

costs of raw materials and the implications of carbon pricing. We arediversifying our supply chains and securing long-term contracts whenpossible and necessary, to further stabilize material pricing and reduce
dependency on any single source. By investing in innovative productdesign that requires fewer materials, identifying alternative materials,
introducing alternate suppliers and supplier locations, optimizing supplyof our business strategy. While the potential climate-related opportunityof longer allergy seasons presents a chance for us to increase allergy
relief product revenue, our primary focus remains on developing solutions
that not only meet the needs of our consumers but also align with ourcommitment to environmental stewardship. This strategic approach canhelp enhance our competitiveness in a market increasingly focused on
climate- and eco-conscious consumers.

Skillman, New Jersey, Kenvue Administrative Offices

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Risk management
Process for identifying and assessing
climate-related risks
We integrate climate-related considerations into our comprehensive
Enterprise Risk Management (ERM) program.
The risk identification process includes the collection of risk-related
information obtained from internal (including survey of risk functions
and data analytics) and external sources (including horizon scanning
activities). This program facilitates regular engagement through theIntegrated Risk Management Committee (IRMC), where risk owners,
SMEs, and IRMC members are encouraged to contribute by entering
identified risks into a centralized Risk Register. The Register, updated
biannually, includes a specific category for climate-related topics,
ensuring comprehensive coverage, active management, and ongoing

We will further leverage insights from our recently completed TCFD
scenario analysis and financial quantification of climate-related risks
and opportunities. By assessing various climate scenarios, we continue toanticipate impacts such as extreme weather events and regulatory shifts.
This enables us to develop contingency plans and adaptive strategies andsupport anti-fragility for Kenvue. Additionally, our physical climate hazard
screening of our owned and operated facilities and strategic suppliers
has confirmed our largest potential climate hazard vulnerabilities,
thereby informing proactive mitigation strategies that may be used to
guide investments towards continued resiliency. Moving forward, we areestablishing a risk-scoring mechanism that evaluates climate-relatedrisks across our value chain, enabling targeted mitigation efforts andenhancing our overall climate risk management framework.

monitoring of these potential risks. As we continue to fully integrate the
TCFD taxonomy into our ERM system, efforts are underway to confirm
that all aspects of potential climate-related impacts and risks are
systematically assessed and addressed.
The risk assessment process includes examination and analysis of risks,
using consistent risk rating criteria for impact, likelihood, management
preparedness, and velocity.
Upon completion of the risk assessment, risk response planning is
initiated. With support from the IRMC, respective risk owners areaccountable for identifying the risk tolerance for each risk, developing
mitigation activities, and executing risk response plans.
Risk owners monitor the effectiveness of the risk mitigation activities
and determine whether the risk should be escalated.

Process for managing climate-related risks
The IRMC, which includes senior enterprise risk leaders, serves as across-functional team to identify and share emerging risks and common
practices, especially for cross-functional risks that require an integrated
approach or may have a cross-functional or cross-regional impact.
The IRMC partners with commercial leaders across our businesses toevaluate risk levels and business processes to ensure they are consistent
with the risk tolerance, internal risk policies, and regulatory requirements
for risk management. In addition, the IRMC provides feedback for theproactive design and continuous improvement of the integrated risk
management approach, laddering to an industry capability maturity model.

Integrating climate into our risk management
Kenvue’s ERM program is designed to assess and mitigate risks acrossour business and operations. It combines risk identification, assessment,
and monitoring processes to proactively address potential challenges. As
Kenvue enhances our approach to enterprise risk management, we haveincorporated climate-related considerations into the IRMC, emphasizing
governance related to climate and sustainability issues.

Kenvue Virtual Power Purchase Agreement, Campillo II Wind Farm, Aragon, Spain

Task Force on Climate-related Financial Disclosures (TCFD)

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Metrics and targets
Metrics used to assess climate-relatedrisks and opportunities
Kenvue measures and reports on GHG emissions in accordance with theWorld Resources Institute (WRI)/World Business Council on Sustainable
Development (WBCSD) Greenhouse Gas Protocol – A Corporate
Accounting and Reporting Standard (Revised Edition 2013). Kenvue’s
Scope 1 and Scope 2 GHG emissions are reported for all Kenvue-owned
facilities where Kenvue has operational control, regardless of building
type; all leased facilities used for manufacturing and/or research anddevelopment; and leased and non-manufacturing and/or non-researchand development facilities where the facility is greater than 50,000
square feet and where Kenvue has operational control.
Kenvue’s Scope 3 emissions are defined as indirect GHG emissions(not included in Scope 2) that occur in Kenvue’s value chain, including
both upstream and downstream emissions, and are aligned with the
WRI/WBCSD Corporate Value Chain (Scope 3) Accounting andReporting Standard.
Scope 1

Direct GHG emissions that occur from sources that arecontrolled or owned by the Company

Scope 2

Indirect GHG emissions associated with the purchase ofelectricity and other energy sources

Scope 3Net zeroIndirect GHG emissions not included in Scope 2 that occur
in the Company’s value chain
Balancing the amount of GHG emissions emitted into theatmosphere with an equivalent amount removed or offset

Our climate targets and performance
We have committed to setting near-term and long-term company-wide
GHG emissions reduction targets in line with the SBTi Net-Zero Standard
and our near-term targets have been validated by SBTi. The SBTi
defines and promotes best practices in science-based target setting
and independently assesses and approves companies’ targets. Alignedwith SBTi and the latest climate science from the U.N. IPCC, our goals
and commitments provide us with clearly defined targets to reduce GHG
emissions in line with limiting global temperature rise to 1.5°C, alignedwith the Paris Agreement goals.
As part of our near-term targets, we are working to reduce our absolute
Scope 1 and Scope 2 GHG emissions 42% by 2030 from a 2020 baseline
through investments in renewable energy, energy efficiency, better
fugitive emissions management, and fleet decarbonization projects.
Kenvue achieved a 25% reduction in Scope 1 and Scope 2 emissions
for the period ending December 31, 2023, versus baseline year, marking
substantial progress toward our goal.

Central to our commitment to reducing our environmental impact is ourgoal to achieve 100% renewable electricity for our operations by 2030.
We plan to achieve this goal through a comprehensive approach including
on-site solar installations, virtual power purchase agreements (VPPAs),
direct power purchase agreements (PPAs), energy attribute certificates(EACs or RECs), and green retail contracts. Currently, renewableelectricity sources cover approximately 65% of our electricity usage.
We’ve built 18 on-site systems in 12 countries. All are fully operational,
including five that came online in 2023. We have also executed nine
contracts for off-site renewable electricity procurement in the form of
VPPAs in North America and Europe; direct PPAs in Brazil, Argentina,
and India; and green retail contracts in Colombia, Malaysia, and China.

Our goals and commitments provide us
with clearly defined targets to reduce
GHG emissions in line with limiting global
temperature rise to 1.5°C, aligned with
the Paris Agreement goals.
We also aim to have all our packaging either recyclable or refillable andto reduce our use of virgin plastic by 25% by 2025. Looking further ahead,
we have set a goal to reduce virgin plastic in our packaging by 50% by2030, using 2020 as our base year. Our progress so far shows 71.4% of
our packaging now being recyclable or refillable and a 21.1% reduction in
virgin plastic use. By making these changes, we seek to position ourselves
to better navigate regulatory changes, supply chain challenges, andevolving customer expectations.

Greenhouse gas emissions
As part of our ongoing efforts to manage and mitigate our carbon footprint,
we regularly monitor and report our GHG emissions across Scope 1, 2 and 3
categories. Our Company’s largest Scope 1 and 2 emissions are from electric
power, followed by natural gas. Emissions from electric power represented
60% of our Scope 2 emissions, with the next largest source being natural
gas and ancillary fuels from facilities, representing 35%. The remaining
Scope 1 and 2 emissions are from fleet (3%) and fugitive emissions (3%).
Like most consumer goods manufacturing companies, emissions directly
within our control only amount to approximately 5% of the total emissions
associated with our value chain. Our Company’s Upstream Scope 3
categories are the largest emissions source and represent about 90% of our
total emissions. The most significant emission sources are from Purchased
goods & services (71%) (all emissions related to our direct and indirectspend) and Upstream transportation & distribution (15%) (moving raw
materials and product). Our Downstream Scope 3 categories represent only
about 5% of total emissions and include product-related emissions (shipping
products to customers and consumers, consumer use of products, and the

To advance our transition toward net zero, we must support our

impact of product disposal — either recycling products or throwing themvalue chain partners in setting and achieving their own ambitious

away without recovery).

science-based climate goals. Our Supplier Climate Action Program allows
us to customize the way we engage with our value chain partners basedon their climate maturity, carbon footprint and long-term decarbonization
strategies. In accordance with SBTi, we are engaging with Kenvue
suppliers such that 75% of our suppliers by emissions will have ascience-based target by year-end 2028. In 2023, 21% of our suppliersin scope have science-based targets.

Task Force on Climate-related Financial Disclosures (TCFD)

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Metrics and targets
Table 4: Corporate GHG emissions
The following table provides a detailed breakdown of these emissions, reflecting our dedication to understanding and reducing our environmental footprint across ouroperational activities and supply chain engagements.
Greenhouse gas emissions2,3,4 (metric tons of CO2e)20205,6

2021

2022

20235

73,84173,062

71,982

62,919Kenvue Location-based Scope 2 GHG emissions

158,307

146,693

154,554

146,245

Kenvue Market-based Scope 2 GHG emissions

136,832

133,505

113,934

93,610Total Kenvue Scope 3 GHG emissions8,9--3,652,178

3,410,360

Category 1: Purchased goods and services10--

2,644,220

2,519,417

Category 2: Capital goods11--

18,063

21,474

Category 3: Fuel-and energy-related activities12--

71,12764,867

Category 4: Upstream transportation and distribution13--

696,046549,345

Category 5: Waste generated in operations14

-

-

2,314

2,063

Category 6: Business travel15--

23,51425,901Category 7: Employee commuting16--

28,20834,692Category 8: Upstream leased assets17

-

-

4,745

5,958

Category 9: Downstream transportation and distribution18--

18,082

18,406

Category 11: Use of sold products19

-

-

1,129

817

Category 12: End-of-life treatment of sold products18--

143,995

166,869

Category 15: Investments20

-

-

735

551

Scope 1 Direct emissions
Total Kenvue Scope 1 GHG emissions
Scope 2 Indirect emissions

Scope 3 Emissions5,7

1
2

3
4

5

6
7

8
9

10

11

12

13

14

15

16

17

18

19

20

Task Force on Climate-Related Financial Disclosures | TCFD (fsb-tcfd.org)
Applies to all Kenvue-owned facilities where Kenvue has operational control, regardless of building type; all leased facilities used for manufacturing and/or research and development; and leased, non-manufacturing and/or
non-research and development facilities where the facility is greater than 50,000 square feet and where Kenvue has operational control. The 2020 baseline and all subsequent reporting years include all facilities aligned to
Kenvue’s structure upon separation from Johnson & Johnson in 2023 and do not include any operational or organizational exclusions.
The target boundary includes land-related emissions and removals from bioenergy feedstocks.
The inventory was compiled in accordance with the WRI/WBCSD Greenhouse Gas (GHG) Protocol – A Corporate Accounting and Reporting Standard (Revised Edition 2013) including the amendment to this protocol, GHG
Protocol Scope 2 Guidance (2015). Scope 1 emission factors are sourced from a variety of reputable public sources which includes emission factors for fuel sources which are multiplied by the associated global warming
potential (GWP) and added together to determine the total CO2e. Scope 1 emissions are defined as from sources that are owned or controlled by Kenvue and occur on-site within its operational boundaries.
2020 represents Kenvue’s baseline year toward which GHG emissions reductions will be measured. Consistent with the GHG Protocol, a recalculation shall be performed if any significant qualitative or quantitative change ismade to the data, inventory boundary and/or methods; “significant” is defined as a structural change such as merger or acquisition or a data error over 5%.
Data has been assured by ERM-CVS.
The inventory was compiled in accordance with the WRI/WBCSD Greenhouse Gas (GHG) Protocol – A Corporate Accounting and Reporting Standard (Revised Edition 2013) including the amendment to this protocol, GHG
Protocol Scope 2 Guidance (2015). Scope 3 are defined as indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions and arealigned with The World Business Council on Sustainable Development (WBCSD) defined 15 Scope 3 categories in the Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Emissions from C10: Processing of sold products, C13: Downstream leased assets, and C14: Franchises and investments are not applicable to Kenvue.
Scope 3 data limited assurance provided by ERM-CVS includes all Scope 3 categories except C1: Purchased goods and services – Forest Land and Agriculture (FLAG) emissions (494,307 MT CO2e) and C15: Investments (551
MT CO2e).
C1 includes emissions from all upstream impacts (cradle to gate) from Kenvue’s supply chain related to goods (such as external manufacturing, chemicals, packaging) and services (media, marketing, research services). This
also includes Forest, Land and Agriculture (FLAG) emissions from cotton, palm oil, and timber. Emissions were calculated using company spend in the report year paired with appropriate economic input/out (IO) emissions
factor the Supply Chain Greenhouse Gas Emissions Factors v1.2 NAICS-6.
C2 includes emissions from all upstream impacts (cradle to gate) for categories designated as capital goods under Kenvue’s financial accounting (capital equipment, construction, and facility services). Emissions were
calculated using Company spend in the report year paired with appropriate economic input/out (IO) emissions factor the Supply Chain Greenhouse Gas Emissions Factors v1.2 NAICS-6.
C3 includes upstream emissions associated with the production of fuels, electricity, steam, chilled water, and district heat consumed by Kenvue. This includes well-to-tank (WTT) — GHG emissions from the production,transportation, transformation and distribution of the fuel used to power vehicles, transmission and distribution (T&D)—GHG emissions associated with distributing electricity from a utility to the end user, and WTT and T&D
loss—upstream GHG emissions associated with the production, transportation, transformation and distribution of the fuel used to power electricity that is lost in the transmission and distribution process. Emissions were
calculated using IEA loss factors for electricity and DEFRA WTT emission factors for fuels and electricity.
C4 includes emissions from air, rail, road, and marine transportation, and storage of products produced in the reporting year. This can be between an organization’s tier 1 suppliers and its own operations, or for all inbound oroutbound logistics purchased by the reporting organization from a third party. Reporting includes all inbound and outbound third-party logistics and warehousing paid for by Kenvue.
C5 includes emissions from waste generated in Kenvue-owned facilities where Kenvue has operational control, used for manufacturing and/or research and development. Emissions were calculated for both non-hazardousand hazardous waste using DEFRA’s emissions factors for waste.
C6 includes emissions from the transportation of employees for business-related activities, including air, rail, and automobile travel including well-to-wheel (WTW) emissions (emissions produced throughout a fuel’s entire
lifecycle, from its production to its use). Hotel stays are considered optional for reporting to the SBTi and are not reported. Travel-related emissions from reimbursements were excluded. Data reported in 2023 reflects anadjustment to the methodology using DEFRA’s emissions factors for air travel.
C7 includes emissions from the transportation of employees for business-related activities, including air, rail, and automobile travel including well-to-wheel emissions and was calculated based on employee home and officelocations and average work-from-home as well as commuting behaviors.
C8 includes emissions from upstream leased assets and was calculated for sites that do not meet the criteria of Kenvue’s Scope 1 and 2 emissions: Kenvue-owned facilities where Kenvue has operational control,
regardless of building type; all leased facilities used for manufacturing and/or research and development; and leased, non-manufacturing and/or non-research and development facilities where the facility is greater than
50,000 square feet.
C9 includes emissions from the transportation and distribution of sold products. This only includes emissions from after the point of sale when transportation of the product is not paid for by Kenvue. In general, most of
the outbound transportation from Kenvue’s operations to customers is paid for by Kenvue and reported in C4. Upon transfer of goods to Kenvue’s customers, products are distributed/stored downstream from retailers’
warehouses to their retail locations and reported in C9 and was calculated using activity-based data using DEFRA emissions factors.
C11 and C12 include direct emissions from the use of sold products and the end-of-life treatment of sold products was calculated using sales volumes for all Kenvue products combined with lifecycle assessment (LCA) models
where sales volumes could be obtained; where they could not be obtained, sales revenues and average unit prices were used to estimate volumes. Due to the size of our product portfolio, LCAs were not performed for every
Kenvue product, so products were placed into LCA categories, and a representative product LCA was applied.
C15 includes emissions for some investments that were previously included in Johnson & Johnson’s Venture Investing. Kenvue only reports the Scopes 1 & 2 of these investments in line with Greenhouse Gas Protocol guidanceon C15.

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Acronyms and abbreviations
AcronymDescription

APAC

Asia Pacific

CBAM

European Union Carbon Border Adjustment Mechanism

CO2e

Carbon-dioxide equivalent emissions

CSRD

Corporate Sustainability Reporting Directive

CVS

Environmental Resources Management (ERM) Certification Verification Services

EMEA

Europe, Middle East, and Africa

ERM

Environmental Resources Management

ESG

Environmental, social, and governance

ESRS

European Sustainability Reporting Standards

EUDR

European Union Deforestation Regulation

GHG

Greenhouse gas

HLM

Healthy Lives Mission

IEA

International Energy Agency

IFRS

International Financial Reporting Standards

IPCC

Intergovernmental Panel on Climate Change

IPO

Initial public offering

IRM

Integrated Risk Management program

ISSB

International Sustainability Standards Board

IRMC

Integrated Risk Management (IRM) program Committee

KVUE

Kenvue New York Stock Exchange ticker symbol

LATAM

Latin America

NA

North America

PPAs

Power purchase agreements

SBTi

Science Based Targets initiative

SDG

Sustainable Development Goal

SEC

U.S. Securities and Exchange Commission

SSP

Shared Socioeconomic Pathway

STEPS

Stated Policies Scenarios

TCFD

Task Force on Climate-related Financial Disclosures

U.N.

United Nations

VPPA

Virtual power purchase agreement

WEO

World Energy Outlook

Task Force on Climate-related Financial Disclosures (TCFD)

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Task Force on
Climate-related
Financial
Disclosures(TCFD)
2023 Reportwww.kenvue.com
sustainability@kenvue.com