2021
SUSTAINABILITYREPORT
MARCH 10TH, 2022

CEO LET TER

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ABOUT CALL AWAY

4OUR APPROACH
TO SUSTAINABILIT Y

9GOOD GOVERNANCE

14PEOPLE

16

PLANET

33

PRODUCT

42

PROCUREMENT

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APPENDIX52CEOLETTER

To Our Stakeholders:
We are proud to present Callaway Golf Company’s inaugural
Sustainability Report, which summarizes our ongoing efforts
and focus on corporate sustainability and social responsibility
at Callaway, and across all our businesses.
Our late founder Ely Callaway lived by the belief that “goodethics is good business,” an ethos that has guided our Company
over the past 39 years and continues to be actively reflected inour culture and actions today. We set high standards for our
employees and brands, putting significant emphasis on making
Callaway a great place to work, while also making a positive
impact for the greater good.
Over the past few years, Callaway has transformed from abusiness almost exclusively dedicated to producing golf
equipment, to a multifaceted company with products andoperations that span apparel, golf equipment and gear,
entertainment, golf technology, and outdoor lifestyle.
Throughout each phase of our transformation, we havecapitalized on the tremendous opportunity to learn and growtogether in the areas of sustainability and social responsibility.

Topgolf excels at connecting with the communities where
they operate in a meaningful way and prioritizing employee
engagement. Our goal is to take the best elements of eachcompany and fuse them together to create a corporate culture
and commitment to sustainability that is even stronger thanit was before.
Throughout this report, we anchor our sustainability strategy
on four key pillars: People, Planet, Product, and Procurement.
These key areas of social and environmental impact wereidentified through an intentional, diligent assessment
conducted in 2021 that discovered 15 topics of mostimportance to Callaway and our underlying businesses.
While we have long been focused on leading and improving
in these areas, we know that there is always more work to
be done, as these topics are more critical than ever before,
and will continue to increase in significance in the future.
With this report, we are committing our teams across Callaway,
Jack Wolfskin, Odyssey, OGIO, Topgolf, and TravisMathew to thenext level of tangible action and look forward to sharing ourcontinued progress with you.
Sincerely,

With every acquisition and merger, we gain new perspective
on ways of working that improve the total business. For
example, Jack Wolfskin is one of the prominent leaders inenvironmental impact in Europe and has helped advance theproduction and processes for our apparel and gear business.

3

Oliver “Chip” G. Brewer III
President and CEO

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

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PL ANETPRODUCTPROCUREMENTAPPENDIXABOUT CALLAWAYCOMPANY OVERVIEW
Callaway Golf Company (“Callaway” and the “Company”)
is an unrivaled tech-enabled golf company delivering leading
golf equipment, apparel, gear, and entertainment within aportfolio of global brands including Callaway Golf, Jack
Wolfskin, Odyssey, OGIO, Topgolf, and TravisMathew.
Incorporated in California in 1982, Callaway was establishedwith the main purpose of designing, manufacturing, andselling high-quality, premium performance golf clubs for every
level of player. As the industry grew, the Company evolved aswell to become a leading manufacturer and distributor of golf
equipment and accessories.
More recently, to diversify the business and create newopportunities for growth, the Company expanded its businessto include lifestyle product lines that are complementary togolf, as well as off-course golf and entertainment venues.
In 2017, the Company acquired OGIO, a leading manufacturer

4and distributor of premium storage gear for sport and personaluse, and TravisMathew, a leading designer and distributorof premium golf and lifestyle apparel, gear, and accessories.
In January 2019, the Company acquired Jack Wolfskin,an international, premium outdoor apparel, footwear, andequipment brand, which further enhanced the Company’s
lifestyle category and provided a platform in the active
outdoor and urban outdoor categories. In March 2021, theCompany merged with Topgolf, a technology-enabled global
sports and entertainment leader built on a foundation ofcommunity, inclusivity, and fun.

OUR CULTURE
Callaway’s brands are driven by good governance and ledby ethics and integrity. Our culture is characterized byour six core values, which we expect to be respected andembodied by all employees while working at Callaway.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCE

OUR HISTORYPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIX

2021

2012

Callaway merges with Topgolf

Callaway appoints Oliver“Chip” G. Brewer III as
President and CEO

1992

2017

Callaway becomes apublicly traded company

Callaway acquires TravisMathew

1999
Callaway is reincorporated
in the state of Delaware

2021

1982

Callaway’s TOUR
staff dominates withthree major wins, anda men’s gold medal

Callaway Golf Company isfounded by Ely Callaway andincorporated in California

1997

2017

Callaway acquires
Odyssey Golf

Callawayacquires OGIO

2019
Callaway acquires
Jack Wolfskin

5

1991

2000

Callaway introduces
the Big Bertha Driver

Callaway introduces its
first golf ball, The Rule 35

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIXOUR GLOBALFACILITIESLEGEND	Headquarters	Distribution, Manufacturing,
and/or Corporate Office	Retail Stores
Topgolf Entertainment Venues[1]	Retail Stores and Topgolf
Entertainment Venues[1][1] All franchise venues are included on this map to represent Topgolf’s global
reach; however, franchises are not included elsewhere in this report.

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OUR APPROACH TO SUSTAINABILIT Y

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PL ANETPRODUCTPROCUREMENTAPPENDIX

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

OUR BRANDS
Callaway Golf and Odyssey
Callaway Golf designs, manufactures, and sells a full lineof premium golf equipment and performance appareland accessories for every type of player. The brand’s golf
equipment includes best-selling woods and irons, hybrids,
wedges, and innovatively designed golf balls. Callaway is theparent company of Odyssey, the #1 Putter in Golf® and the #1
Putter on TOUR®.[1] This complete equipment line is engineered
to provide the best performance for all skill levels, fromdeveloping golfers to TOUR professionals.

Jack Wolfskin
Jack Wolfskin is a globally leading provider of premium
German-engineered outdoor apparel, footwear, and equipment.
The company was founded in 1981 with a mission to inspire all
explorers to discover through shared, transformative outdoor
experiences wherever they are. Jack Wolfskin has grown tobecome a leading outdoor brand across Europe and Asia.
The brand is rooted in sustainability and focused on designingethical and eco-conscious products, as well as promoting fairand humane working conditions. Jack Wolfskin has been amember of the multi-stakeholder initiative Fair Wear Foundation
since 2010, as well as a bluesign® system partner since 2011.

OGIO
One of the golf industry’s leading bag brands over the past 30
years, OGIO makes innovatively designed and uniquely styled
sports bags, travel bags, and business bags. Athletes from the

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PL ANETPRODUCTPROCUREMENTAPPENDIX

worlds of golf, skate, snow, surf, and BMX put their trust in theprotection, comfort, organization, and style of OGIO products.
OGIO continues to innovate better solutions for carrying
gear and is committed to creating sustainable productswith recycled materials and products that are built to last.

Topgolf
Topgolf is a technology-enabled global sports andentertainment community, connecting people in meaningful
ways through experience, innovation, and fun. What began
as a simple idea to enhance the game of golf has grown intoa movement where people from all walks of life connect at theintersection of technology and sports entertainment. Topgolf’s
platforms include Topgolf venues around the globe, Topgolf
Media, and its Toptracer ball-flight tracking technology.

TravisMathew
TravisMathew is a Southern California-based leading innovatorin lifestyle and performance apparel, footwear, and accessories.
Using best-in-class fabrications and designs, the brand ispushing forward a growing market trend toward casualization.
By offering hundreds of unique designs across frequent new
product releases, TravisMathew is establishing a new standard
for the young professional with the long-term goal to become
the top premium menswear brand in the United States while
expanding its global presence. Additionally, TravisMathew
constantly strives to challenge itself to discover innovations indesign, production, and technology.
[1] #1 Putter on TOUR based on putter usage across all major tours according to 2021
Darrell Survey Data.

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PL ANETPRODUCTPROCUREMENTAPPENDIXOUR APPROACH
TO SUSTAINABILITY
Callaway has a long history of conducting business in a
responsible manner, and we are dedicated to upholding avalues-based culture. Among our core values is a statement
professed by our late founder Ely Callaway, who believedthat “good ethics is good business.” This belief has guided
Callaway’s improvements in social and environmental
performance over the years and has inspired us to take a new
step forward in our approach to sustainability, transparency,
and accountability. As part of our ambition to drive continuous
improvement throughout our operations and supply chain,
we have established a Global Sustainability Program to lead
Callaway’s sustainability strategy in the future. We have also
committed to publishing a bi-annual Sustainability Report,
which will improve transparency in our business and aid us in
our future sustainability efforts. Publishing this Sustainability
Report with 2021 as our baseline year reflects our desire to“do the right thing” for our stakeholders by acting in the bestinterest of our people, our planet, and our company.

92021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT YCALL AWAY GLOBALSUSTAINABILIT Y PROGRAM
In 2019, at the direction of our Chief Executive Officer withoversight from the Board of Directors (“Board”), Callaway
formally launched our Global Sustainability Program. The goalof this program is to bring increased awareness and structure
to our existing social and environmental sustainability
initiatives, while also enhancing our sustainability efforts acrossour global businesses. In connection with launching the Global
Sustainability Program, Callaway established an Executive
Sustainability Committee comprising our Chief Executive
Officer, Chief Financial Officer, all other executive officers, and
the General Counsel. A Sustainability Core Team meets andthen reports progress of the Global Sustainability Program
quarterly to the Executive Sustainability Committee. Membersof the Sustainability Core Team, known as Sustainability
Champions, are employees who have been selected fromthroughout the organization to drive large-scale global
projects that build upon our existing environmental and social
sustainability efforts. Sustainability Champions also promotesmaller-scale employee-driven initiatives at the local levels.

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIXThe Company’s entire Board oversees the Global
Sustainability Program and receives a comprehensive report
regarding the program’s initiatives and progress on an annual
basis. Additionally, the General Counsel of the Company
provides a quarterly update to the Board’s Nominating andCorporate Governance Committee on the Company’s latest
third-party scores on environmental, social, and governance(“ESG”) topics to maintain a consistent pulse on the
Company’s ESG performance.
The Global Sustainability Program has played an integral role inassessing the Company’s material ESG concerns and developing
the Company’s sustainability strategy, goals, and inaugural
Sustainability Report for 2021. The Global Sustainability
Program has also introduced a variety of new initiatives acrossthe Company, including: establishing a quarterly internalsustainability newsletter; enhancing sustainability content on
Callaway’s website; and engaging employees globally to devise
new sustainability action plans for the Company’s various
brands and workspaces. Each quarter, our Sustainability CoreTeam convenes to share updates and progress on its latest
initiatives and discuss overall program strategy.

The goal of this program is to bring increased awareness and structure
to our existing social and environmental sustainability initiatives, while
also enhancing our sustainability efforts across our global businesses.

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PL ANET

MATERIALIT Y ASSESSMENT AND
STAKEHOLDER ENGAGEMENT
Our analysis identified 15 key
environmental and social
topics that are perceived tohave the most significant
impact on Callaway’s businessand stakeholders.

In 2021, as the next step in developing our Global Sustainability
Program strategy, Callaway conducted our first Company-widemateriality assessment referencing the Global Reporting
Initiative (“GRI”) Standards (the “materiality assessment”),
to determine the environmental and social sustainability topics
of greatest importance to our stakeholders and of mostsignificance to our business. For purposes of this assessment,
stakeholders were defined as those who are affected by ouractivities and whose actions have the potential to affect theoutcome of our business activities, including investors,
suppliers, customers, consumers, athletes, industry peers, andemployees. We conducted a multi-stakeholder engagement
process and utilized a materiality assessment survey to help
us understand and prioritize our environmental and social
sustainability topics. The stakeholders who were identified
and participated in the materiality assessment survey were
employees across all of our brands, our suppliers, customers,
Board members, and investors. In addition, as part of an
ongoing effort to benchmark against best practices, inform
decision-making, and stay up-to-date on issues related to ourmaterial topics, Callaway regularly engages with a variety of
external stakeholder groups throughout the year, including
professional associations, non-governmental organizations(“NGOs”), regulators, retailers, our suppliers, and our customers.
The assessment was led by a subset of our Sustainability
Core Team, who identified potential environmental and social
topics likely to affect the financial conditions or operating

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performances of companies in the consumer goods, apparel,and entertainment sectors. Topics were selected andbenchmarked from reporting standards and sources, such as
the GRI Standards, the Sustainability Accounting Standards
Board, the Taskforce on Climate-Related Financial Disclosures(“TCFD”), as well as through discussions with internal andexternal subject matter experts. The results from the materiality
assessment survey were discussed with and approved by
our Executive Sustainability Committee, and inform ourgoal-setting, sustainability strategy, and reporting procedures.
Our analysis identified 15 key environmental and social topics
that are perceived to have the most significant impact on
Callaway’s business and stakeholders. Based on the outcomeof the materiality assessment survey, the Company will befocusing on the following four priority topics: ‘Product Design
and Innovation’ and ‘Climate Change’ for environmental topics,and ‘Employee Attraction and Retention’ and ‘Diversity,
Equity, and Inclusion’ for social topics. ‘Product Design andInnovation’ is a core element of Callaway’s business andpresents many opportunities for the Company to improve ourenvironmental performance. ‘Climate Change’ is a topic that
affects all of Callaway’s stakeholders and has been identified
as a critical issue for responsible companies to manage.
‘Employee Attraction and Retention’ is a principal concern for
Callaway’s most important asset — our employees — as is‘Diversity, Equity, and Inclusion.’ Together, these two social
topics are essential to sustaining Callaway’s strong corporate
culture and position as an industry leader.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

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MATERIAL TOPICS
MATERIAL TOPICDESCRIPTIONENVIRONMENTAL

Climate ChangeManaging risks and opportunities associated withclimate change (i.e., measuring greenhouse gas
emissions and setting goals to reduce the associatedcarbon footprint).
Baselining energy use and driving improvements
through efficiency and renewable energy objectives.

Materials Sourcing
and Efficiency

Implementing processes for the selection of sustainable
and ethically sourced materials (i.e., locally sourced,
conflict-free, and environmentally sustainable).

Product Design
and Innovation

Pioneering new sustainable product offerings,
materials, packaging, and manufacturing processes.

Product Lifecycle
Management

Integration of all aspects of a product, taking it fromconception through the complete product lifecycle todisposal of the product and its components.

Waste and Recycling

Applying waste management principles to prevent,minimize, reuse, and recycle materials used in products
and packaging.

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DESCRIPTIONSOCIAL

Energy Management

Water and Wastewater
Management

MATERIAL TOPIC

Implementing sustainable practices to reduce usage
and ensure water quality is protective of consumers,
workers, and the environment.

Diversity, Equity, and Inclusion

Recruiting, developing, and promoting a diverse
and inclusive workforce at all levels of the company.

Employee Attraction
and Retention

Policies and programs to hire new talent and keep
turnover low.

Employee Engagement

Encouraging professional and personal growth ofcompany employees.

Health and Safety

Well-being of company employees, workers at our
suppliers, and customers at our facilities.

Labor Practices
and Human Rights

Upholding commonly accepted labor standards
in the workplace (i.e., compliance with labor laws
and internationally accepted norms and standards)
including basic human rights (i.e., fair wages,
no child/forced labor, etc.).

Local Communities

Positively engaging and supporting people incommunities in which we operate.

Procurement Practices

Policies in place to ensure components and finishedproducts are ethically sourced.

Product Quality
and Compliance

Testing products for compliance with quality standards
and restricted chemical guidelines.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

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SUSTAINABILIT Y
STRATEGY FRAMEWORKPL ANETPRODUCTPROCUREMENTAPPENDIXSUSTAINABILITY STRATEGY

Building upon the results of the materiality assessment,
Callaway developed a sustainability strategy framework,
which is a visual representation of the Global Sustainability
Program’s strategy for the Company’s global business andbrands. This framework considers Callaway’s four priority
material topics along with the additional eleven material topics
discussed in the Materiality Assessment and Stakeholder
Engagement section. It comprises four key pillars: People,
Planet, Product, and Procurement.
The pillars relate to our four priority topics in that People istied to ‘Employee Attraction and Retention’ and ‘Diversity,
Equity, and Inclusion,’ Planet is driven by ‘Climate Change,’
and Product and Procurement are connected to ‘Product
Design and Innovation.’ The other eleven material topics are
categorized under the relevant pillars as well. Callaway’s
commitment to conducting business with ethics and integrity
governs our approach to managing these four pillars, which
is why ‘Good Governance: Ethics and Integrity’ spans acrossthe top of the framework. Along the bottom, each pillar is
supported by our inclusive, collaborative, and innovative
culture, which serves as the foundation of our strategy.

PEOPLEGOOD GOVERNANCE: E THICS AND INTEGRIT YPEOPLE

PL ANETPRODUCTPROCUREMENT

Employees

Energy Management

Procurement Practices

Suppliers

Climate Change
and Emissions

Product Design
and Innovation

Local Communities

Product Management

Waste Management
and Recycling

Supplier Assessment
and Engagement

Product Quality
and Compliance

Water and Wastewater
Management

OUR CULTURE
BE HUMBLE AND HUNGRY
DO WHAT YOU SAY YOU’RE GOING TO DO

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ACT WITH INTEGRITY AND RESPECTDARE TO BE GREATPUT THE TEAM AND CUSTOMER BEFORE SELF

ONE TEAM — ONE COMPANY

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANETGOOD GOVERNANCEAt Callaway, we conduct our business with the highest standardsof ethics and corporate integrity. Following our belief that
“good ethics is good business,” we are proud of the ethical way
we have governed and operated our business to date, and weremain firmly dedicated to continuing to do so in the future.

COMMITMENT TO ETHICS
AND INTEGRIT Y
Our Code of Conduct is integral to Callaway’s commitment
to conduct our global business honestly, ethically, and legally.
It contains our core ethics-related policies and outlines ourshared values and expectations of conduct. It also covers
important topics such as anti-corruption, bribery, harassment,
and policies regarding political contributions, among others.
The Code of Conduct applies to all Board members, officers,
and employees of our Company and its subsidiaries.
Callaway’s Code of Conduct also provides the foundation for
our Environmental, Health and Safety (“EH&S”) Policy, which
establishes our commitment to conduct business safely andin compliance with all applicable environmental laws, rules,
and regulations. We accomplish this by establishing policies,
setting expectations, and providing leadership, technical and

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professional expertise, and education throughout our operations
and supply chain. Our EH&S Policy empowers employees andsuppliers at all levels to promote safe and environmentally
responsible practices and aligns with our culture to always act
with integrity and respect. Callaway’s EH&S Program is overseen
by our Senior Director of Facilities and EH&S, Executive Vice
President of Global Operations, and ultimately the CEO of theCompany. Our EH&S Policy further establishes direction to
conduct business in a sustainable and safe manner.
Callaway requires all employees to report any acts that
violate our Code of Conduct to Human Resources, Legal
Department, Chief Ethics Officer, or the Chief Executive
Officer in accordance with the terms of the Code of Conduct.
In addition, the Chief Ethics Officer provides quarterly updates
to the Board regarding any complaints relating to accounting,internal controls or auditing matters, actual or potential
violations of the Code of Conduct by officers, as well as
actual or potential conflicts of interest.
Callaway’s suppliers are important partners in deliveringhigh-quality and innovative products. They are required toadhere to our Supplier Code of Conduct, which sets theminimum standards that our Company and our subsidiaries
expect them to meet. The Supplier Code of Conduct isdesigned to ensure that all Callaway suppliers adhere tosocially and environmentally responsible business practices,and that all products made for us are produced under lawful,humane, and ethical conditions.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

We also make sure we act with integrity and respect on social
issues that are important to Callaway and our stakeholders.
This includes our commitment to respect internationallyrecognized human rights throughout our global operations,in alignment with the Universal Declaration of Human Rights(“UDHR”)[1], and is represented in our Human Rights Policy.
Callaway’s culture is rooted in our people and is what brings
us together as a team, company, and industry leader.
The Company also has a Compliance Committee that
reviews compliance issues globally and develops systems
and procedures that address these issues. The Compliance
Committee is led by the Compliance Officer (currently, theCompany’s General Counsel), who has been appointed by
the Company’s Board, and meets on a quarterly basis. The
Committee members consist of key stakeholders throughout
the global organization. During these meetings, the Compliance
Committee members discuss the progress made for each of thespecific and ongoing compliance-related matters and add new
matters as necessary in order to ensure that the Company
continues to have an effective compliance program.
[1] The UDHR is based on the United Nations General Assembly Resolution 217A.

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GOOD GOVERNANCEPEOPLE

PL ANETCORPORATE GOVERNANCE
The Company’s Board and senior management team arecommitted to governing Callaway with the highest standards of
ethics and integrity. Our strong corporate governance practices
position our business for growth and creating long-term value
for all of our stakeholders. The Board is currently comprised of 13
members and is led by an independent, non-executive Chairman.
The Audit Committee oversees the financial, risk, and compliancereporting. The Compensation and Management Succession
Committee monitors succession planning for executive officers
and sets compensation policies and programs. The Nominating
and Corporate Governance Committee recommends, reviews,
and assesses candidates, along with setting corporate
governance policies and guidelines.

PRODUCTPROCUREMENTAPPENDIX

believes that such diversity is important and can provide
distinct value. The Board currently includes three female
members and two members who self-identify as membersof an underrepresented community. The Board believes its
composition appropriately reflects the knowledge, experience,skills, and other characteristics required to fulfill its duties.
In addition to this, our directors are diverse in age, race,and gender, which we believe allows our directors to better
represent our customers, employees, shareholders, and thecommunities we serve.

The Company’s entire Board oversees the Global Sustainability
Program, and the Board’s Nominating and Corporate
Governance Committee reviews the Company’s ESG
performance on a quarterly basis. For further information on
Callaway’s business, please see our Investor Relations website.
Callaway is committed to inclusiveness and to ensuring adiverse Board. In addition to the criteria for a Board member as
set forth in the Company’s Corporate Governance Guidelines,
the Board believes that the Board, as a whole, should possess a
combination of skills, professional experience, and diversity ofbackgrounds necessary to oversee the Company’s business. As
such, when considering a potential new candidate, the Board
considers whether a potential new director would increase theethnic, gender, or cultural diversity of the Board, as the Board

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

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PL ANETPRODUCTPROCUREMENTAPPENDIXPEOPLE
Callaway’s corporate culture starts with our people. They define us as a company and as anindustry leader. As an expanding global company, we recognize the impact our business has on
people around the world. That is why we have made People a fundamental part of our commitment
to sustainability. Every day, we strive to promote the health, well-being, and success of the people
that comprise our company, our supply chain, and our communities around the globe.

OUR EMPLOYEES16OUR SUPPLIERS

LOCAL COMMUNITIES

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

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PL ANETOUR EMPLOYEESEMPLOYEE AT TRACTION
AND RETENTION
Callaway’s employees and the employees of our subsidiaries
are our most valuable assets. They drive our culture andthe success of our business. Every day, we challenge our
employees to “dare to be great.” Our Company strives to do
the same by cultivating a workplace and a culture that bringsout the best in our employees. We seek to attract and maintainthe highest quality talent by offering competitive benefits andwellness services, opportunities to grow professionally, andregular performance evaluations, among other initiatives.
Our commitment to our employees is also demonstrated in
the way we design our compensation and benefits programs.
Callaway currently offers competitive compensation and afull suite of benefits, including comprehensive health, life,and disability insurance coverage and a retirement plan withmatching benefits. We also offer our Callaway and Jack
Wolfskin employees in the U.S. the ability to participate inwellness programs and incentives that can reduce employee
health care costs. Participants and their spouses who choose
to participate in an annual exam with their personal physician

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receive discounted medical payroll deductions each pay
period. Participants can also earn cash rewards throughpreventive care activities such as cancer screenings, dental
check-ups, and weight loss or exercise programs. Additionally,
we also provide an Employee Assistance Program to all
employees. Some offices and facilities provide fitness facilities,
yoga and exercise programs, and education addressing
physical, mental, social, nutritional, and financial health.
We encourage the professional and personal growth of ouremployees through annual performance reviews and a varietyof training programs. For the 2020 annual review period, whichconcluded in Q1 of 2021, 86% of Callaway U.S.[1] and 98% of
Topgolf U.S. eligible full-time employees received performance
reviews and Callaway U.S.’s 2,052 employees received over
3,800 total hours of core training, including Code of Conduct,
Anti-Corruption, Safety, and Diversity, Equity, and Inclusion
training, as well as leadership training. We require all new
Callaway hires to complete training on our Code of Conduct,
which includes Insider Trading, Anti-Bribery, Open Door Policy,
and Global Conduct Expectations training. Periodic training
on our Code of Conduct and legal compliance is also provided
for existing employees. We further develop and promote talentfrom within our Company through the Callaway Emerging
Leaders Program, Callaway Leadership Academy, andManufacturing Leadership Training Program.
[1] Data reported as “Callaway U.S.” includes the following Company locations: Callaway
Corporate Headquarters; TravisMathew Headquarters; Jack Wolfskin North America
Office; Chicopee Golf Ball Operations; North America Distribution Center; Callaway
Golf Interactive; TravisMathew Retail Stores.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANET

Emerging Leaders Program

Callaway Leadership Academy

Callaway’s Emerging Leaders Program (“ELP”) is designed to
identify high-performing employees in all U.S. departments
throughout Callaway, Jack Wolfskin, and TravisMathew andprepare them for leadership roles within our organization. The
ELP’s 12–18 month-long curriculum combines classroom training
with hands-on, experiential learning. ELP participants convene
several times a year to discuss topics that include Appreciating
Differences, Motivating Workforces, Identifying Work Priorities,
and Developing Leadership Presence. The ELP also hosts several
guest speakers annually to discuss leadership topics. Participants
are given opportunities to apply these discussion topics withpractical, on-site experiences. For example, our inaugural ELPgroup received hands-on manufacturing training at our golf ballfacility in Chicopee, Massachusetts, and our club assembly plantin Monterrey, Mexico. Our most recent participants received
experiential training at our North American Distribution Center(“NADC”) in Fort Worth, Texas and completed a leadership tourof a Topgolf venue. Our most recent 2021 group graduated with
21 emerging leaders from the program.

The Callaway Leadership Academy is a training programavailable to all our management-level Callaway employees
in the United States. It is designed to help Callaway managers
better understand their strengths, weaknesses, opportunities,
and limitations as leaders in the Company. The goal of
our Leadership Academy is for participants to apply theirimproved self-awareness to more successfully develop,
manage, and lead their teams. Periodic training topics haveincluded topics such as Myers-Briggs, Appreciating Difference,
Change Management, Correcting Performance Problems,and Adapting to Constant Change.

PRODUCTPROCUREMENTAPPENDIX

Manufacturing Leadership Training
Callaway’s Manufacturing Leadership Training Program
targets supervisors and managers at the Company’s NADC
and Chicopee, Massachusetts golf ball manufacturing plant.
It aims to continuously enhance the manufacturing leadershipteam to develop and cultivate its leadership skills. Participants
are invited to take courses throughout the year anchored infoundational management competencies.

The ELP’s 12–18 month-long curriculum combinesclassroom training with hands-on, experiential learning.

18

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT YENGAGEMENT AND SATISFACTION RESULTS

74%

77

survey response rate forsalaried[1] employees at
Callaway U.S.

rate of engagement[2] amongsalaried[1] employees at
Callaway U.S.

67%

75

survey response rate for
Topgolf salaried andhourly global associates

rate of engagement[2] among
Topgolf salaried and hourly
global associates

71%

72%

survey response rate forTravisMathew full-time
corporate associates

satisfaction[3] rate among
TravisMathew full-time
corporate associates[1] Salaried employees are defined as U.S. employees outside Callaway’s union
and warehouse hourly workers.
[2] Engagement score is measured on a scale from 0–100 based on two items:“How happy are you working at [Callaway or Topgolf]?” and “Would you
recommend [Callaway or Topgolf] as a great place to work?”[3] Satisfaction rate includes both ‘Agree’ and ‘Strongly Agree’ ratings on the
5-Point Likert Scale.

19

GOOD GOVERNANCEPEOPLE

PL ANETEMPLOYEE ENGAGEMENT
Callaway strives to create a culture where every voice mattersand our employees feel engaged in their work. Beginning withthe onboarding process and throughout their career, we create
moments for our employees to share their perspectives andinsights into how we can improve the way they work and theirenvironment. Through informal discussions with leaders andmore formal engagement surveys, we are able to gauge what
is most important. Our ability to make improvements based on
employee feedback and measure engagement regularly helps
us build and maintain trust levels with our employees.
We encourage all of Callaway’s new hires to complete anine-question survey after their first 45 days at Callaway.
The results are reviewed and compared to past trends ona quarterly basis, which informs the management teams
ofareas that may need to be addressed. Results from the
new hire surveys have improved Callaway’s New Employee
Welcome Guide for managers and have increased proactive
communication between HR and hiring managers.
We also conduct periodic employee surveys to assess thesatisfaction of TravisMathew's employees and the engagementof Callaway’s Corporate Headquarters, NADC, and Chicopee
salaried employees[1], as well as Topgolf’s global associates.
Our leaders in each department share results with theirteam to identify drivers of engagement and develop a planof action. Leaders subsequently meet with their teams to
implement agreed-upon solutions. High-level survey results

PRODUCTPROCUREMENTAPPENDIX

are also reviewed by our CEO and executive team. In addition,
we use a trend analysis from previous reports to assesslong-term trends in survey results. If issues are repeatedly
identified in particular areas, we conduct narrower pulse
surveys to address issues more rapidly.
Callaway is also proud of the opportunities we offer employees
to engage with their local communities. The Callaway Golf
Company Community Giving Program is led by a team ofvolunteer employees at Callaway who plan volunteering
initiatives and product donations to support communities
in the San Diego, California area. Employees from our global
subsidiaries also engage in a variety of volunteer initiatives
to give back to their local communities. These engagement
efforts encourage our employees to collaborate, build unity,
and strengthen our company culture.
Topgolf employees volunteer in clean up efforts with local
charities, mentor at the Boys and Girls Club, and participate
in the Urban League Bright Start Program. Topgolf’s Driving
For Good program assists qualified charities to raise funds
and increase their goodwill. Furthermore, Topgolf engages andsupports its employees through Topgolf Cares. Topgolf Cares
is a registered 501(c)(3) charitable organization and program
funded by Topgolf associates, designed to provide temporary
relief to members of the Topgolf family who are experiencing
unforeseen hardships.
More information about our community engagement programs
can be found in Local Communities.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

Engaging Our Employees
During the Pandemic
COVID-19 presented Callaway, our employees, and our
stakeholders with unprecedented challenges. Throughout
the pandemic, the health, safety, and well-being of our people
remained our number one priority. We maintained a constantdialogue with our teams around the world to ensure our
response was unified, supportive, and adaptive.
At the onset of the pandemic, we established a global
COVID-19 Core Team at Callaway, including senior leadership,
to strategize about impacts to employees and customers,
develop and implement comprehensive COVID-19 policies,
procedures, and reopening plans, and train employees onsite-specific protocols. Our Core Team quickly implemented
a Facility Readiness Plan to manage safety protocols, which
included mask-wearing, social distancing, contact tracing,and on-site sanitation. Procedures were kept up-to-datein accordance with the most stringent local and regionalguidelines from the Centers for Disease Control andPrevention and other ruling health organizations around theworld. Our offices instituted a voluntary remote work policy
for all associates who were able to work remotely, as well as
paid sick time before federal relief programs were in place. We
also provided our employees with temperature checks, masks,and hand sanitizer at our locations where resources wereneeded. In addition, the Callaway NADC and Jack Wolfskinwarehouse staff sewed masks to donate to employees andhealthcare workers when surgical masks were in short supply.

20

GOOD GOVERNANCEPEOPLE

PL ANETThe Core Team at Callaway held weekly meetings throughout
the beginning of the pandemic, which were later adjusted toa monthly basis, and each of our sites assembled a committee
to stay up-to-date on the latest local developments. Leveraging
knowledge of early pandemic developments from our offices
in China, we implemented COVID-19 protocols quickly, which
included immediate travel restrictions to ensure the safetyof our employees. As borders close and reopen andcircumstances change, we continuously monitor the safety andaccommodation of our employees during global travel andassess whether or not it is critical for our employees to travel.

PRODUCTPROCUREMENTAPPENDIX

This effort allowed Topgolf to prevent kitchen supplies fromgoing to waste while also doing a small part to ensure that theTopgolf associates who were temporarily furloughed did notface food insecurity. In total, we estimate that each participating
venue served between 1,000 and 1,500 meals.

Our policies and procedures have been guided by the latest
scientific developments and recommendations by leading
health authorities and the Core Team at Callaway has beencommitted to engaging in an open dialogue with our
employees over our response measures. Employee feedback
has indicated that the protocols we implemented have been
appropriate for the times.
Callaway and our subsidiaries took additional steps topromote employee well-being early in the pandemic. Callaway
and Jack Wolfskin employees in the U.S. were distributed
healthy snack boxes to their homes. To ensure our U.S. Topgolf
venue employees had access to hot meals at the beginning ofshelter-in-place mandates in 2020, a majority of the Topgolf
venues prepared hot meals for Topgolf employees to pick up.
Twice a day, the Topgolf employees could stop by their venue
to collect bags of food from volunteers while maintaining
social distancing outside.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANET

DIVERSIT Y, EQUIT Y,
AND INCLUSIONThe Importance of Diversity,
Equity, and Inclusion
Callaway embraces a culture of being One Team — One
Company. As our global footprint grows, we work daily withteams from around the world who each bring a unique skill set
and perspective to our business. Callaway and its subsidiaries
have diverse employee bases with a wide range of cultures,experiences, talents, capabilities, and perspectives, and we
firmly believe that ethnic, gender, and cultural diversity provide
distinct value to our company. That is why we are committed torecruiting, developing, and promoting a diverse and inclusive
workforce while offering opportunities and career paths for our
employees. We seek to hire the best qualified individuals and do
not discriminate on the basis of actual or perceived race, creed,color, religion, national origin, citizenship status, age, disability,
marital status, sexual orientation, gender, gender identity, andsimilar classifications. Moreover, we foster a culture of respect
for one another’s differences regardless of background, culture,or work experience. We believe a commitment to Diversity,
Equity, and Inclusion improves trust and engagement among all
our stakeholders and drives a positive, safe, empowering, andaccepting culture.

21

PRODUCTPROCUREMENTAPPENDIX

Callaway has an ongoing commitment to increase the numberof women and diverse candidates throughout all levels ofmanagement. We require all our Callaway U.S. employees tocomplete Diversity, Equity, and Inclusion and Unconscious Bias
training, and members of Callaway’s Emerging Leaders Program
also participate in Breaking Through Bias training. We strive tobring more women and minorities into the game of golf andremain dedicated to making the sport we love more accessible
to a diverse range of customers. To achieve this, Callaway
promotes a variety of Diversity, Equity, and Inclusion initiatives
within our Company and throughout our local communities.

Since 2019, more than half ofCallaway U.S. management-level
new hires and promotions havebeen of a diverse category — thatis non-white, female, or both.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

Diversity of Our Employees

Diversity, Equity, and Inclusion Initiatives

We acknowledge that systemic inequalities due to ethnic,
gender, and racial differences remain persistent, and we arecommitted to making Diversity, Equity, and Inclusion afundamental component of our hiring process. For Callaway’s
2,052 U.S. employees:• Since 2019, Callaway has sponsored Howard University’s

38%

44%

identify as aminority in the U.S.

are above age 40

PL ANETPROCUREMENTAPPENDIX

Golf Team through a partnership with NBA superstar,
Stephen Curry, as part of the ongoing efforts to increase
diversity and inclusion in (and awareness of) golf. Recently,
Callaway also expanded our partnership with Howard
University by not only equipping the men’s and women’s
golf teams, but also by setting up a summer internshipprogram for two of the team members to learn more about
working in the golf industry.

• In 2021, Callaway continued our partnership with Women’s
Golf Day, and together rang the bell along with Topgolf
representatives at the New York Stock Exchange to help
drive additional awareness of women in the game.

• Starting in 2019, Callaway has partnered with PGA WORKS
In 2021, Callaway U.S. achieved several hiring goals for
employees of a diverse category, which encompasses
employees who are non-white, female, or both.

57%

52%

73%

of management level
new hires are of adiverse categoryof promoted
employees are of adiverse categoryof the 2021 internshipprogram were of adiverse category

22

PRODUCTand participated in its career expo. This expo is an opportunity
for golf industry employers to connect one-on-one with adiverse pool of talented student-athletes competing in the
PGA WORKS Collegiate Championship to discuss internships
and entry level employment in the golf industry.

• In support of our ongoing relationship with the Ladies
Professional Golf Association (“LPGA”), Callaway
developed an official marketing partnership to increasecontent opportunities and overall exposure around
women’s professional golf.

• Callaway helped fund and activate the cross-industry‘Make Golf Your Thing’ initiative. ‘Make Golf Your Thing’is a multi-faceted, multi-year campaign to invite more
people to the sport from all backgrounds to enjoy thegame — their way.

• In 2021, Callaway participated in the 2nd annual Black Golf
Directory (“BGD”) virtual career fair. Started by a LPGA
professional, BGD was created to elevate and promote
African Americans in the golf industry. At this virtual career
fair, several of Callaway’s diverse employees participated ona panel to speak about the Company, our culture, and career
opportunities. Callaway also participates in various BGD
ongoing networking opportunities.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

Diversity, Equity, and Inclusion at Topgolf
Callaway’s merger with Topgolf has strengthened our efforts
to promote Diversity, Equity, and Inclusion throughout ourcompany. Topgolf strives to bring accessibility to the gameof golf by creating an experience that is fun, social, andentertaining. It is part of Topgolf’s goal to break down barriers,
promote inclusion, and invite diverse groups of people toenjoy the game of golf for the first time and discoveremployment opportunities at Topgolf. Topgolf’s 2021 Diversity,
Equity, and Inclusion strategy focused on four main pillars:

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIX

Topgolf celebrates inclusion daily by featuring its diverse
workforce on Workplace — a Meta-powered communicationand engagement tool. Associates can share their diverse
perspectives and insights on important topics related to theirculture or heritage. In 2021, Topgolf associates shared nearly
2,000 posts within the Diversity Resource Group pages on
Workplace, ranging in topics from Juneteenth and female
leaders within the company to Pride celebrations and thehistory behind Hispanic Heritage Month. These posts sparked
over 6,000 comments and further solidified associates’ senseof belonging within Topgolf.

1. Executive Engagement and Accessibility
2. Diversity Resource Groups
3. Talent Development
4. Workplace Inclusion
Topgolf offers four Diversity Resource Groups for its
employees: LatinX, Pride of Topgolf, Black Associate
Networking Group, and Topgolf Woman. These groups
celebrate and support the members of their communities
and work cross-functionally with each other and the restof the Topgolf organization to advance their shared goals.
Topgolf also has diverse representation in its C-Suite andNational Director of Operations.

23

Additionally, Topgolf has been awarded three different
prestigious employer awards in recognition of its Diversity,
Equity, and Inclusion efforts. They include Diversity Jobs Top
Employer 2021, Forbes 2020 Best Employers for Women, andNational Down Syndrome Congress 2018 Employer of the Year.

TOP GOLF' S U .S. EMPLOYEE DIVERSIT Y(19,234 EMPLOYEES)

47%

12%

identify as aminority in the U.S.

are above age 40

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT YHEALTH AND SAFET Y
OF OUR EMPLOYEES
Environmental, Health, and Safety Program
The health and safety of our employees is paramount to ourculture and our business success. We view health and safety as
not only a matter of compliance, but also as an integral part ofour commitment to ensuring the well-being of our people. Inturn, Callaway’s EH&S Program is dedicated to maintaining asafe and healthful workplace for the protection of theemployees and contracted workers at our facilities.

GOOD GOVERNANCEPEOPLE

PL ANETIn compliance with California state law, Callaway maintains
an occupational health and safety management system,
referred to as our Injury and Illness Prevention Program(“IIPP”). Callaway’s IIPP covers all of the Company’s workers,
contingent workers, and visitors in North America.[1] Per our
IIPP, the Senior Director of Facilities and EH&S, Executive
Vice President of Global Operations, and ultimately the CEO
have oversight of Callaway’s EH&S policies and procedures.
TravisMathew maintains a separate IIPP for its headquartersin Huntington Beach.
The goal of Callaway’s IIPP is to meet or exceed all applicableregulations, codes, standards, and recommendations throughthe adoption of industry best practices. California’s Departmentof Occupational Safety and Health provides guidance that aneffective workplace injury and illness prevention program
should contain the following elements, all of which arecaptured in our IIPP:• Responsibility• Accident/Exposure Investigation• Compliance• Hazard Correction• Communication• Training and Instruction• Hazard Assessment• Recordkeeping

PRODUCTPROCUREMENTAPPENDIX

To prevent and mitigate significant negative occupational
health and safety impacts, Callaway partners annually with
our Workers Compensation Insurance Provider to develop a
Risk Control Service Plan. This service plan includes industrial
hygiene support, such as checking noise dosimetry andchemical exposure. It also includes safety-related support suchas machine guarding surveys and facility safety assessments.
The above services use a Certified Industrial Hygienist (“CIH”),
a Certified Professional Ergonomist, and a Certified Safety
Professional as appropriate for each service plan. Callaway
also uses third-party CIHs for specific projects when necessary.
Callaway requires all full-time, part-time, and temporary
employees to complete safety awareness training that covers
Callaway’s IIPP, hazard communication, emergency procedures,and other specific requirements, such as California Prop 65. We
also provide formal training for respirators, forklifts, electricalsafety, and other job-specific subjects. Callaway saves all our
training records to keep track of employee training progressand retraining needs. Callaway also maintains EH&S policies,
procedures, safety aids, and related forms in the Company’s
Enterprise Level Document Management System.

[1] Callaway reports Occupational Safety and Health Administration (“OSHA”)-related incidents for workers and contingent workers when they are directly supervised by the workplace. An
example of a contingent worker covered by our reporting is a temporary worker building a golf club under the supervision of Callaway. An example of a contingent worker not reported
under our metrics is a security guard working under the supervision of the security company. While all workers, contingent workers, and visitors are covered by our IIPP, our reporting ofincidents is limited to workers and contingent workers directly supervised by the Company. Where contingent workers work under the supervision of another company, such as janitorial,
food services, security, or construction, we document incidents involving these contingent workers, but do not report with our metrics.

24

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

Callaway takes pride in setting high expectations for our
employees’ health and safety and closely monitors our healthand safety performance through the following metrics, among
others, which relate to our full-time and contracted workforce:

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIX

prenatal care to employees, or a pre-employment checkup
to a prospective employee. A full description of our healthand wellness services can be found in the Employee Attraction
and Retention section of this report.

• Callaway U.S. finished calendar year 2021 with an OSHA
Recordable Rate of 1.27, which was 53% lower than the
Sporting Goods Manufacturing industry-wide average.

• Callaway’s Monterrey, Mexico manufacturing facility
participates in the Mexican Ministry of Labor and Social
Welfare’s (“STPS”) Self-Management Program in Healthand Safety at Work (“PASST”). In the most recent PASST
recertification conducted in 2019, the facility’s safety
management program achieved the high rating score of
99.8% in the government inspection, maintaining the STPS
PASST Level 3 certified ranking. The PASST program issimilar to the OHSAS 18001 program and requires
recertification once every five years.

Employee Health Services
Callaway U.S. provides its employees with a variety of healthservices such as flu shots, sunscreen desk drops, and parental
and mental health resources provided by Cigna. Jack Wolfskin’s
European employees receive eye checks for desktop workers,
regular health checks, medical shots, and first aid training.
At Callaway’s Monterrey, Mexico manufacturing facility,
employees have access to a contracted nurse, working under
the supervision of a doctor, who provides occupational andpersonal health support to the facility. The nurse may provide
additional services such as blood pressure checks and25

L ABOR PRACTICES AND HUMAN
RIGHTS OF OUR EMPLOYEES
Respecting internationally recognized human rights
throughout Callaway’s global operations is integral to ourcommitment to upholding the highest standards of businessethics. Our unwavering respect for human rights is exemplified
in the commitments and expectations described in ourEnterprise Human Rights Policy. This policy is informed by
the principles described in the UDHR.
Callaway strives for a workplace free from discrimination andharassment, child labor, forced labor and human trafficking,and other unsafe, unhealthful, or unlawful working conditions.
As stated in our Code of Conduct, we will not tolerateunacceptable worker treatment — such as the exploitationof children, physical punishment, involuntary servitude, orother forms of abuse — at any of our offices or facilities.
Currently, Callaway has not identified any serious risks that
the Company’s operations pose to human rights. However,Callaway has processes in place for our global operations toensure we are in compliance with all applicable human rights
laws. We also train all our full-time, part-time, and temporary
employees on our Code of Conduct and on employee rights
and responsibilities during new hire orientation.

Callaway also recognizes the right of our unionized employees,with whom we maintain positive relations, to collectively bargain
and freely associate. Our golf ball manufacturing employees inChicopee, Massachusetts are unionized and are covered under acollective bargaining agreement with International Brotherhoodof Boilermakers, Iron Ship Builders, Blacksmiths, Forgers andHelpers A.F.L.-C.I.O. Local Lodge 1851. In addition, many ofCallaway’s production employees in Mexico are also unionized.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANETOUR SUPPLIERS
We consider suppliers to be a valued part of the Callaway
team. As such, we are committed to working with suppliers
that uphold that the same standards we have set for our own
employees in regard to human rights, health, and safety.

L ABOR PRACTICES AND HUMAN
RIGHTS OF OUR SUPPLIERS
Conducting our business honestly, ethically, and legally
underpins the importance of socially responsible businesspractices in Callaway’s global supply chain. We hold our
suppliers accountable to the same human rights policies as
our own employees, including Callaway’s Enterprise Human
Rights Policy. We further require all Callaway suppliers tocomply with human rights and other responsible labor
standards set forth in our Supplier Code of Conduct andthe Transparency in Supply Chains Act and UK Modern Day
Slavery Policy. These standards include, but are not limited to:• No use of involuntary or forced labor• No use of child labor• Provide a workplace free of harassment, discrimination,
and abuse• Ensure fair and accurate compensation• Ensure that working hours are not excessive

PRODUCTPROCUREMENTAPPENDIX• Provide a healthy and safe workplace• Allow freedom of association and collective bargaining• Ensure conflict free sourcing• Deal lawfully with foreign contract and migrant workers.
Callaway has a number of mechanisms to ensure compliancewith our social standards, including: the use of administrative
controls such as contracts and agreements; providing new
supplier on-boarding review and approval; conducting
thorough internal and third-party supplier audits; and offering
employee and supplier training and education.
Callaway’s goal is to drive continuous improvement inour supply chain and procurement practices. To do so,
we benchmark our performance against the standards set
by industry associations, NGOs, and peers to understand thebest way to manage human rights-related concerns and issues.
We have procedures in place to review and correct issues
and concerns as appropriate. Where concerns are identified,Callaway works with suppliers to address them while taking
the opportunity to strengthen our own diligence processes.
Our comprehensive approach to managing and engaging our
suppliers, which includes screening, auditing, and training
suppliers on our social and environmental standards, is further
discussed in the Procurement section of this report.

• Use fair and non-discriminatory employment
terms and practices

262021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIXHEALTH AND SAFET Y
OF OUR SUPPLIERS
Callaway believes workers in our supply chain are entitled
to work in healthy and safe conditions, just like our own
employees. We strive to uphold a high standard for healthand safety at the factories operated by our suppliers as we
do in our own operations. Callaway requires our suppliers topromote and adhere to all health and safety expectations
outlined in our Supplier Code of Conduct, in a mannerconsistent with the Company’s Code of Conduct, and otherrelevant policies, procedures, and guidance.
Callaway’s suppliers must maintain a safe and healthy
working environment, with clean drinking water andsanitation, appropriate security, and personal protective
equipment. Suppliers also must provide safe and adequate
accommodation where residential housing is provided toworkers, conduct health checks, and take steps to prevent
accidents and injuries in the workplace. This includes ensuringthat potential risks are identified and appropriate safetymeasures are taken, complying with laws regarding buildinguse, safety, and occupancy, and having emergency action plansin place. Additionally, Callaway requires all suppliers to reportsignificant injuries and accidents suffered by employees.
Callaway’s commitment to this topic has led us to makecapital investments to improve the safety of our suppliers’
manufacturing processes. We also collaborate with suppliers
to drive continuous improvement by applying such things aslean manufacturing and Six Sigma techniques that improve

27

process efficiency and safety. For Callaway’s club and golf ball
suppliers, automation was introduced to some of the mostdangerous areas of the production process, including grinding,polishing, cutting, and dipping of metal hardware. These
improvements have dramatically reduced exposure of factory
employees to hand-arm vibration syndrome, repetitive motion,and other on-the-job injuries.
Callaway also partnered with our soft goods and apparel
suppliers to create automated sewing machines that mitigate
the risk of repetitive-motion injuries. As an added benefit,

these machines also improved the quality of the product.
Additionally, Callaway reduces workers’ exposure to hazardous
substances such as carcinogens and teratogens by establishingchemical restrictions in Callaway’s Restricted Substances List(“RSL”) and Jack Wolfskin’s Green Book.
Callaway routinely audits the health and safety standards ofour suppliers, which is discussed further in the Procurement
section of this report.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANETLOCAL COMMUNITIESFollowing the lead of our founder, Ely Callaway, our Company
believes it is important to build more than just great products;
we are also passionate about building great communities andmaking a positive difference in the lives of our neighbors —especially those in need. We engage and support our local
communities through the Callaway Golf Company Foundation(the “Foundation”), the Callaway Golf Company Community
Giving Program, and a variety of local volunteering anddonation initiatives led by our global subsidiaries.

THE CALL AWAY GOLF
COMPANY FOUNDATIONThe Foundation was established to support programs that
improve lives, while serving as a catalyst for our employees topositively impact their community. The Foundation provides
cash grants and scholarships to non-profit organizations on
a select basis. The Foundation Board has annually selected
one local non-profit and one military non-profit to receive a$50,000 grant. In 2021, the recipients were Feeding San Diegoand Homes for Our Troops. In addition, the Foundation also

28

PRODUCTPROCUREMENTAPPENDIX

presented grants for scholarships and to additionalfoundations such as the Challenged Athletes Foundationand the Pro Kids Golf Academy, with overall 2021 grants
to all organizations totaling $464,850.
Callaway’s headquarters hosts an annual Bike to Work Day,
where the Foundation sponsors $100 for each participatingrider, with proceeds going to the Challenged Athletes
Foundation. The Challenged Athletes Foundation provides
opportunities and support to people with physical challenges,
so they can pursue active lifestyles through physical fitness
and competitive athletics. The daylong event consists of
employees riding from a selected location to work. Every year
a guest speaker from Challenged Athletes Foundation is
invited to join the event and speak about their experiences.
With the donations from the 2021 event, the Foundation has
raised $100,000 for the Challenged Athletes Foundation todate. The event is also sponsored by Callaway Facilities, ourCafé vendor Eurest, along with other suppliers who provide
food and snack stops for riders.
The Foundation’s Scholarship Program awards annual
scholarships to students of Callaway employees. Scholarships ofup to $10,000 are given to students in good standing and may
be renewed on an annual basis. The program is announced every
December and is administered by Scholarship America. In 2021,
the program awarded $81,000 in new and renewed scholarships.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

The Foundation also encourages Callaway employees
to give back through its Employee Matching Gift Program.
The Foundation matches individual donations of up to $10,000
made by employees to qualified non-profits of their choice.
In 2021, combined donations totaled $79,333.
In April 2021, Callaway and the Foundation were chosen as
co-recipients of the 2021 Corporate Philanthropy Award by
the North County Philanthropy Council. This award recognizes
the hard work and dedication of employee volunteers, and thegenerosity of cash grants given to programs. Callaway andthe Foundation received the award for their work with Pro
Kids, First Tee – San Diego. Callaway has supported Pro Kids
since 1994, when Ely Callaway and the Pro Kids founder, Ernie
Wright, partnered to build the original Golf Academy at Colina
Park in City Heights. To date, Callaway and the Foundation
have donated over $5.5 million dollars to Pro Kids in cash
grants and golf products.

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIXCALL AWAY GOLF COMPANYCOMMUNIT Y GIVING PROGRAM
Each month since 1995, the Callaway Golf Company Community
Giving Program has planned volunteering initiatives andproduct donations to support communities in the San Diego,
California area. The program’s committee, led by 12 volunteer
employees from Callaway’s headquarters, selects non-profits
focused on a variety of charitable endeavors including
improving the environment, youth empowerment, helping thehomeless and disadvantaged, animal care, and military support.
Although Callaway’s engagement has been virtual since April
2020, the Company continues to support local non-profits
throughout the COVID-19 pandemic. Since 1995, Callaway has
contributed 23,953 volunteer hours across volunteer projects.
Since 2003, Callaway has donated $6.4 million worth of golfballs, golf clubs, and other products to non-profit organizations.
Callaway’s established targets for product donations focus onprograms that support:• Youth: improving the lives of young people in need or
at-risk, primarily through the building of life-skills.

Since 2003, Callaway has donated$6.4 million worth of golf balls,
golf clubs, and other products to
non-profit organizations.

29• Health: providing access to essential health services for
non-insured or under-insured individuals and families.

• Military: providing support and services to wounded
warrior programs.

2021 SUSTAINABILIT Y REPORTABOUT CALL AWAYOUR APPROACH TO SUSTAINABILIT Y

GOOD GOVERNANCEPEOPLE

PL ANET• Our Jack Wolfskin headquarters in Idstein, Germany
regularly supports children’s hospice through annual
monetary contributions, homeless shelters through productdonations, healthcare clinics through mask donations forclinics and nurseries, and healthcare workers in Germany
through a discount in stores throughout 2020.

• In 2021, TravisMathew partnered with Chris Pratt to hostan online Charity Flash Sale benefiting Special Olympics.
Through the flash sale, TravisMathew raised its largest
charitable donation ever of $1,074,600, which will help
train more than 16,500 athletes in 2022 and will provide
direct support to 52 chapters in the U.S.

ENGAGING OUR
GLOBAL COMMUNITIESCallaway gives our global subsidiaries the ability to lead theirown community engagement initiatives. To facilitate this,
we provide our sales teams with product donation accounts
to help manage their contributions to select charities andfundraiser events. We also encourage our global offices andsubsidiaries to engage in community partnerships at theirdiscretion based on the needs of their local regions.

• Callaway Korea launched a limited edition Truvis Golf
Ball and wedge club featuring the image of a polar bear,an endangered species, standing on a small iceberg with thenumber “0422,” which is a reference to global warming andEarth Day on April 22. Callaway Korea donated 15% of thesales of these products to an environmental non-profit in order
to raise money and awareness for sustainability projects.

30• In 2020, TravisMathew donated over $500,000 to theOscar de la Hoya Foundation, which aims to create more
opportunities for people coming from underprivileged
communities in the greater Los Angeles area, such assupporting various after-school programs and local
medical centers.

• In 2020, Callaway Golf South Pacific set a budget of$20,000 for product donations to support various “green
grass” or Golf Course Pro Shop charity events held by golf
clubs in response to Australian bush fires. They have also
donated around $5,000 in excess product to local
underprivileged schools in the past seven years thatwould like to introduce golf into their athletic programs.

• Callaway Golf South Pacific also supports PukaUp, acause-driven organization whose vision is suicide prevention
and mental health awareness. We supported the organization
with a donation and received a well-being webinar from Wayne

PRODUCTPROCUREMENTAPPENDIX

Schwass, the founder, which was available to all South Pacificemployees. PukaUp provides education programs in schools
and workplaces, and has recently partnered with Melbourne
University’s Centre for Wellbeing Science to raise money todevelop a program called Foundations of Well-Being, which
will be available to businesses to participate in.

• At our Monterrey, Mexico facility, Callaway donated clubs to
two tournaments where the proceeds went to Casa Mi Angeland Retos. Casa Mi Angel is an association that provides
economic and psychological support for abandoned expecting
mothers and their children through food, board, and trainings.
Retos is an association dedicated to supporting people over
the age of 15 who have physical, intellectual, and mental
disabilities that live in situations of extreme poverty.

• Callaway Golf Europe sponsors a variety of charities andprograms, many that have a personal significance to theiremployees, including MacMillan Cancer Centre and the On
Course Foundation for wounded and sick service personnel.

• Callaway Vietnam employees partnered with the Youth Social
Work Center, a non-profit that helps support Vietnamese
citizens who are negatively impacted by COVID-19. In July
2021, Callaway Vietnam distributed rice and other necessities
to Vietnamese charity kitchens so they could prepare anddistribute thousands of free meals to people in need.

• Callaway Japan leads an initiative known as “Callaway Golf
Farm.” This program, in alignment with the requirements of
the Ministry of Health, provides employment opportunities
for individuals with disabilities. Workers are given theopportunity to work on the farm and contribute to thebetterment of society in a meaningful way.

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JACK WOLFSKIN
Wolftrail is an initiative led by Jack Wolfskin aimed atconnecting customers with the outdoors through all-day
hiking events that combine product testing with environmental
protection projects. Jack Wolfskin has created a variety ofWolftrail hiking routes throughout the highlands of Europe,and each location focuses on a specific environmental cause.
In Romania, for example, Wolftrail participants guard against
illegal deforestation of the country’s primeval forests. In 2021
and in the spirit of Wolftrail, Callaway introduced a global
neighborhood cleanup event inviting employees from allbrands to participate by cleaning up their local neighborhoods
while enjoying the outdoors.
Jack Wolfskin has teamed up with SEAQUAL INITIATIVE, acollaborative community fighting plastic pollution. They bring
together individuals, organizations, and companies to help clean
the oceans and raise awareness of the issue of marine plastic.
The SEAQUAL INITIATIVE is working with clean-up efforts which
can be anything from small groups of local volunteers doing
one-off beach clean-ups, all the way through to large

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIX

international programs retrieving waste on a regular basis.
All the marine litter used by SEAQUAL INITIATIVE is cleaned
from beaches and coasts, the ocean floor and surface, and rivers
and estuaries. Jack Wolfskin utilizes the SEAQUAL® YARN —which is a high quality 100% post-consumer recycled polyester
yarn containing approximately 10% Upcycled Marine Plastic(from marine litter) and 90% post-consumer polyethylene
terephthalate (“PET”) from land sources — to create a line oftrendy, multi-colored shirts made with a blend of SEAQUAL®
YARN and organic cotton yarn.
Going against the trend of deep discounts during theNovember shopping season, Jack Wolfskin instead prioritizedenvironmental protection. Jack Wolfskin is providing €100,000
from the proceeds of its Nature Counts campaign, which ran
from November 26–29, 2021 (Black Friday and Cyber Monday)
in Germany, Austria, Switzerland, Belgium, Luxembourg, Italy,
and the UK, to a forest conservation project run by Wohlleben’s
Forest Academy. The campaign will ensure the protection of
25,000 m² of ancient beech forests in Central Europe througha corresponding 50-year lease.

Jack Wolfskin utilizes the SEAQUAL® YARN — which is a high quality 100%
post-consumer recycled polyester yarn containing approximately 10% Upcycled
Marine Plastic (from marine litter) and 90% post-consumer PET from land sources.

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PL ANETand social justice for the Black community. With their expertise,
the goal is to make a meaningful difference through fundraisingand mentorship programs to create positive change together.
Since 2016, Topgolf and Make-A-Wish Foundation havepartnered to help make dreams a reality for Wish Kids aroundthe country. Topgolf regularly lends out its venues to hostMake-A-Wish celebrity reveals, and has raised more than
$2 million from 2016 through 2021.
The Youth Play It Forward program was launched in 2017 andprovides free game play for high school golf teams and charities
supporting youth mentorship, leadership, and empowerment.
By participating in this initiative, Topgolf helps inspire a life-longlove for golf in aspiring youth while improving the game’s
accessibility for younger generations.

TOPGOLF
Topgolf is proud to donate time and money to causes thatstrengthen our cities and bring people together. Topgolf has
partnered with local chapters of the non-profit First Tee anddonates to children in need. Topgolf also donates turf drivingmats from its venues to Bunkers to Baghdad or sends them backto their manufacturer, where they are recycled into new mats.
Topgolf is strengthening its work with local chapters of National
Urban League, a historic civil rights organization founded in
1910, and dedicated to economic empowerment, equality,32

In 2021, Topgolf raised enough money to provide over 500,000
healthy meals to hungry children in the U.S. through No Kid
Hungry. This organization is working to end childhood hunger
by launching and improving programs that give kids the healthy
food they need to thrive.
At Topgolf, serving our community is important. Topgolf
associates volunteered over 19,000 hours in 2019[1] to local
communities in need. Volunteering spans from food banks andpet rescues to classrooms and hospitals. Topgolf uses theseopportunities to strengthen its teams and reinforce its culture ofcaring for one another and collaborating with its communities.

PRODUCTPROCUREMENTAPPENDIXMILITARY APPRECIATION
Headquartered in a strong military community, Callaway is aproud supporter of the armed forces and has a longstanding
commitment to military appreciation initiatives. Our support
for those serving our country includes charitable donations tomilitary non-profits, a 15% military discount on products from
CallawayGolf.com, and custom golf club fittings through ourpartnership with Wounded Warriors. Since 1999, Callaway has
contributed $9.5 million in military product donations.
Callaway is proud to be the largest individual donor to
Bunkers in Baghdad, a non-profit charity that collects andsends new and used golf balls, clubs, and equipment to our
deployed troops around the world. Since 2008, Bunkers for
Baghdad has sent over 12 million golf balls and nearly 1 million
golf clubs to 45 different countries. We also team up with
Birdies for the Brave to host Callaway Warrior Club Fittings
at PGA TOUR tournaments across the nation. These personal
club fittings aid in the physical and psychological rehabilitationof our American heroes and express our gratitude for theirservice and sacrifice. To date, Callaway has fit more than 150
combat-wounded heroes.
Additionally, Topgolf is an active supporter of Folds of Honor,
an organization that provides educational scholarships tochildren and spouses of fallen and disabled service members.
Topgolf also offers military (active duty and veterans), police,
fire, and EMS personnel 10% off Topgolf game play and 20%
off discount on select monthly memberships.

[1] Due to COVID-19, volunteering was limited in 2020 and 2021. As a result, Topgolf isdisclosing the 2019 hours while also aiming to revive volunteer hours and tracking,pending circumstances of the pandemic.

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PL ANETPRODUCTPROCUREMENTAPPENDIXPLANET
At Callaway, our mission is to innovate premium products and services that allow our customers to excel in thegame of golf and experience the wonders of the outdoors. In turn, we recognize the importance of addressing
climate change, reducing our energy and water consumption, and responsibly managing the waste we generate.
The Company’s EH&S Policy establishes our commitment to environmental responsibility, and we have a long
history of implementing positive initiatives to reduce our environmental footprint. Conducting business in anenvironmentally sustainable manner aligns with our core value to always act with integrity and respect.

ENERGY MANAGEMENT

CLIMATE CHANGE AND EMISSIONSWASTE MANAGEMENT AND RECYCLING

33

WATER AND WASTEWATER MANAGEMENT

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PL ANETPRODUCTPROCUREMENTAPPENDIXENERGYMANAGEMENT
Energy consumption is a primary source of Callaway’s
greenhouse gas (“GHG”) emissions, and as part of ourcommitment to reduce our carbon footprint, we are seeking
new ways to lower our overall energy consumption and increase
our use of renewable sources. Since 2005, Callaway has
implemented energy efficiency improvements through active
participation in utility-sponsored demand-reduction programs
while actively pursuing new energy efficiency projects,
examples of which are described in this section. Across ouroperations, we have been able to make reductions throughretrofits as well as switching to renewable sources of energy.
Callaway also engages with our landlords seeking to implement
energy efficiency projects associated with leased properties.

34

CALL AWAY CORPORATEHEADQUARTERS
Callaway’s corporate headquarters in Carlsbad, California has
made significant updates to improve our energy efficiency. In
2021, more than 40% of the energy used at the headquarters
came from renewable sources, supported by a battery storage
system that charges up during off-peak hours to help run
the building during peak energy use periods, therefore
reducing stress on the power grid. We also replaced a 12
million British Thermal Units per hour (“BTU/hr”) boiler witha high-efficiency, low emissions 2.5 million BTU/hr boiler, andinstalled high-efficiency LED lightbulbs. Despite significantly
increasing our building occupancy and adding a data centerand 10 electric vehicle charging stations, our total energy
consumption was still down by 18% since 2012 at the end of2021, with 5,578 megawatt-hours (“MWh”) consumed in 2021.

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PL ANETMANUFACTURING,
DISTRIBUTION, RETAIL, AND
ENTERTAINMENT FACILITIES• In 2021, Callaway’s global company-owned and leased facilities
consumed 49,044 MWh of electricity, excluding Topgolf,
whose U.S. venues consumed 104,232 MWh of electricity.

• In 2021, Callaway completed retrofitting our Monterrey, Mexico
facility with high-efficiency LED lighting, reducing the facility’selectrical demand by 500,000 kilowatt-hours per year.

• LED lightbulbs were installed at TravisMathew’s headquartersin Huntington Beach, Callaway’s distribution center in Korea,
Callaway's headquarters in Carlsbad, and Callaway’s
European headquarters in Chessington.

2021 ENERGY CONSUMP TIONCALL AWAY NATUR AL GASCONSUMP TION [1] (GIGA JOULES)CALL AWAY ELECTRICIT Y
CONSUMP TION [1] (MWH)

111,939PROCUREMENTAPPENDIX• At Callaway’s Chicopee, Massachusetts facility, the Company
entered into an agreement with Bloom Energy for a 4.0
megawatt natural gas fuel cell system that is anticipated to
be installed by the end of 2022. This fuel cell should eliminate
approximately 1.9 million pounds of CO2 emissions per year.

• At Jack Wolfskin’s Hamburg distribution center, Idstein
headquarters, and all except for one owned retail stores inGermany and Austria, 100% of electricity used is fromrenewable energy.

• Topgolf has submitted an application for a LEED Silver
certification for its San Jose, California location. The venue
opened in April 2021, and is equipped with sustainable features
including solar panels, LED lighting, high-reflective roofing,
low-flow plumbing fixtures, and designated parking for clean
air/electric vehicles. Topgolf continues to review equipment
specifications for energy efficiency and Energy Star ratings,
install and maintain LED lighting throughout its venues, andconsider design improvements that reduce energy and water
consumption for future venues.

49,044TOP GOLF NATUR AL GASCONSUMP TION [2] (GIGA JOULES)TOP GOLF ELECTRICIT Y
CONSUMP TION [2] (MWH)

PRODUCT

864,423
104,232[1] Includes global operations for Callaway, Jack Wolfskin, OGIO, and TravisMathew.
[2] Includes Topgolf U.S. venues.

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PL ANETPRODUCTPROCUREMENTAPPENDIX

CLIMATE CHANGE
AND EMISSIONS
Callaway recognizes that climate change is a global issue andneeds to be addressed comprehensively not only to protect
the planet for future generations, but also to ensure strong
and sustainable economic growth. We are committed tooperating with a focus on sustainability, while continuing to
manufacture and distribute high-quality products for ourcustomers, and create value for our stakeholders. Callaway
supports the TCFD, and we have reported our approach inthe corresponding TCFD Index.
The primary driver for purchased electricity GHG emissions for
Callaway is energy. Callaway has already implemented a numberof initiatives aimed at reducing our GHG emissions highlighted
throughout this Planet section, including energy efficiency
upgrades to our headquarters, facilities, and manufacturing
processes. We also monitor and aim to reduce hazardous
pollutants and volatile organic compounds (“VOCs”) that have
impacts on employee health and the environment.

To supplement these initiatives, Callaway is certified by the U.S.
Environmental Protection Agency (“EPA”) SmartWay program,which helps companies advance supply chain sustainability
and reduce their carbon footprints. By tracking Callaway’s
transportation statistics, we are able to make strategic andsustainable decisions to reduce GHG emissions from ourfreight network. In North America, Callaway’s truck-based
logistics have increased the use of SmartWay carriers from
50% in 2016 to 89% in 2020.[1]In the United Kingdom, Callaway’s vehicle fleet increased
the percentage of hybrid or electric vehicles in the fleet from
24% in 2020 to 40% in 2021. Callaway Europe ensures thatevery replacement vehicle has a lower emissions output thanthe previous vehicle.
In 2021, Callaway’s emissions equivalent intensity ratio was
20 CO2e/$1M net revenue and Topgolf’s[3] emissions equivalentintensity ratio was 108 CO2e/$1M net revenue.

2021 GHG EMISSIONS EQUIVALENT(metric tons of CO2e)

CALL AWAY NATUR AL GASEMISSIONS EQUIVALENT [2]
CALL AWAY ELECTRICIT Y
EMISSIONS EQUIVALENT [2]
TOP GOLF NATUR AL GASEMISSIONS EQUIVALENT [3]5,624
34,77243,508[2]

TOP GOLF ELECTRICIT Y
EMISSIONS EQUIVALENT [3]73,900[1] 2021 data from U.S. EPA SmartWay program is not yet available at the time ofreport publishing.
[2] Includes global operations for Callaway, Jack Wolfskin, OGIO, and TravisMathew.
[3] Includes Topgolf U.S. venues.

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PL ANETWASTE MANAGEMENT
AND RECYCLINGPRODUCTPROCUREMENTAPPENDIX• Since 2019, Callaway Golf Europe has eliminated PVC
synthetic plastic, removed all lamination, or alternatively
switched to Cellogreen, a recyclable lamination on marketing
materials. Callaway Europe also uses Forest StewardshipCouncil (“FSC”) certified display boards, has an agreementwith Green Dot® for the recovery, sorting, and recycling ofsales packaging, and 100% of the Point of Sale (“POS”)
materials produced are recyclable.

• Callaway South Pacific has also increased the use of
Callaway has proactively implemented positive environmental
initiatives to reduce our environmental footprint and considers
responsible waste management as an essential part ofpreserving the long-term health of our planet. Callaway actively
tracks our North American hazardous and non-hazardous waste
and recycling, which allows the Company to drive improvement
on various performance metrics. In 2021, Callaway’s North
American facilities[1] generated 6,086 metric tons of total waste
and recycling. Of that, 3,609 metric tons was waste and 2,477
metric tons was recycled. The Company is also working on ways
to reduce excess product packaging and increase efficiency inproduction processes.
At Callaway’s North American facilities, we recycle cardboard,paper, metal, electronic waste, green waste, plastics, and wood.
Where available, we work with local recycling partners to
optimize our recycling opportunities, including organizations
that uphold the R2 Responsible Recycling Standard forrecyclable electronics.

Across our global subsidiaries, programs and initiatives havebeen implemented to address waste management and increase
opportunities for recycling:• We launched the “I Love a Green Callaway” program at theCarlsbad headquarters and Callaway Golf South Pacific tomake these locations greener by using less plastic andpolystyrene foam, providing reusable dishware, and improving
labeling and access to recycling bins for all employees.

• In an ongoing effort to save paper, Callaway Japan, China,
Europe, and Australia have all increased the use of digital
information and processes for administrative documents,
forms, and invoices.
[1] Includes Callaway’s primary North American manufacturing, Research and Development,
and distribution facilities: Callaway Corporate Headquarters; Chicopee Golf Ball
Operations; North American Distribution Center; Monterrey, Mexico manufacturing facility.

2021 WASTE AND RECYCLING METRICS [1](metric tons)

TOTAL WASTE AND
RECYCLING GENER ATEDTOTAL HAZARDOUS
WASTE DISPOSED

6,086
284

TOTAL NON-HAZARDOUS
WASTE DISPOSEDTOTAL WASTE RECYCLED

37

sustainable materials in their POS advertising, by using
100% recycled paper and/or cardboard for posters, bollards,
wall prints, and ambassador boxes.

3,325
2,477

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PL ANETPRODUCTPROCUREMENTAPPENDIXPACKAGINGHIGHLIGHT STORYJOURNEY TO
SUSTAINABLE
PACKAGING

Across all brands, Callaway is continuously pursuing initiatives
that will decrease the amount of packaging, as well as waste,created through our various product categories. As part of ourjourney to become more sustainable, we are in the process of
eliminating silica gel dry packs from our product packaging,
and adopting biodegradable, clay-based dry packs as a moresustainable alternative. The silica dry packs are used to keep
products safe and dry during transport, but could lead to
additional waste that ends up in landfills. The clay-based dry
packs are filled with all-natural desiccant which outperforms
synthetic alternatives, and safely guards our high-risk products
from mold and moisture damage. Our continued use of dry
packs will be further reduced as we transition to recycled
polybag packaging, which contains an interior anti-moldcoating that eliminates the need for desiccant packs
altogether. Jack Wolfskin is the first of our brands to fully
eliminate silica gel dry packs from its packaging using thesemethods. In total, Jack Wolfskin has eliminated the use of
more than 7 million silica dry packs. This company-wide effort
is one of the many steps Callaway is taking to mitigate ourenvironmental impact and reduce our waste.

38

Leaders from across our brands convene regularly to discuss
new ways of eliminating cardboard and single-use plastics fromour product packaging. To reduce the amount of cardboard in
product shipments, Callaway implemented a customer ordersystem that automatically aligns an order with its “best fit”
shipping carton and trained our operators to make changes tothe packaging and correct the system optimization as needed.
Jack Wolfskin has also begun using boxes made from 30%
grass-based cardboard for its e-commerce shipments. The grassused is not treated with fertilizers or pesticides and requires
significantly less water and chemicals to produce than wood.
Callaway is working to convert our single-use plastic
packaging to recycled plastic where feasible, and expects that
Jack Wolfskin will be the first of our brands to complete thistransition. Jack Wolfskin uses recycled polybags in producttransport and only uses FSC certified paper bags to bag
in-store customer purchases. In 2021, this process eliminated
173,233 kilograms (“kg”) of single-use plastic from Jack
Wolfskin product packaging. Callaway also discontinued theinclusion of plastic wrenches with our adjustable drivers andhybrid clubs in 2021, thereby eliminating more than 18.5
metric tons of single-use plastic each year moving forward.
Additionally, Callaway Golf Japan changed their custom
grip shrink wrap packaging from PET to a biomass plastic,
which is 80% derived from plants, in November 2021.

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PL ANETPRODUCTPROCUREMENTAPPENDIXMANUFACTURING PROCESSES
Callaway has made significant investments in research anddevelopment to improve the efficiency of our manufacturing
processes. These investments effectively resulted in reduced
material waste and VOC emissions. Callaway also uses
advanced techniques such as 3-D modeling and artificial
intelligence to optimize our design process. Such techniques
allow the Company to reduce the number of prototypes
needed to arrive at final products, thereby minimizing theenergy and materials required to create them. Additional
achievements in our manufacturing processes include:• In 2020, we innovated a shaft redesign with our suppliers toyield multiple pieces of our new putter shaft from a single
steel blank, greatly reducing overall steel waste. We estimatethat the redesign reduced our steel scrap by approximately
56,700 kg annually.

• Callaway invested in a multi-year research and development
project to reduce VOC emissions in our supply chain,
beginning with a full transition from an oil-based paint to awater-based paint used on our club heads. The water-based
paint retains the adhesion and durability of its predecessor,
but reduces VOC emissions by over 60%. This investment also
included a partnership with a supplier to develop a treatment
system in their factory that could better capture VOC
emissions at the source. This resulted in the capture andtreatment of over 90% of VOC emissions from that factory.

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PL ANETPRODUCTPROCUREMENTAPPENDIX

WATER AND WASTEWATERMANAGEMENT
Callaway’s Southern California roots have made us consciousof the importance of responsible water management, andwe strive to reduce, reuse, and conserve water across ouroperations wherever possible. With manufacturing facilities,
distribution centers, and corporate offices around the globe,
our approach to water management varies across locations.
When it comes to Callaway’s water usage in our manufacturing
processes for our owned operations, we use a limited amountof water. Callaway’s headquarters in Carlsbad, California has aClass III Industrial Wastewater Discharge Permit that classifies
Callaway’s Research and Development operations as “ZeroDischarge” for reporting purposes. Our golf ball manufacturing
facility in Chicopee, Massachusetts has a similar permit, withprocess water estimated between 200 and 5,000 gallons perday. Callaway’s manufacturing facility in Monterrey, Mexico uses
no industrial contact process water.

40

Callaway has implemented initiatives to ensure our operations
and suppliers manage water and wastewater responsibly.
In 2021, Callaway recorded 171 megaliters (ML) of water
consumption across our global operations[1], while Topgolf
U.S. venues recorded 833 ML.[2]Callaway facilities track their water usage so the Operations
Team can identify opportunities to conserve water, maintainrecycled water systems, and implement practices to improve
the Company’s water management processes.
[1] Includes global operations for Callaway, Jack Wolfskin, OGIO, and TravisMathew.
[2] Includes Topgolf's U.S. venues.

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WATER AND WASTEWATERINITIATIVES• At Callaway’s golf ball manufacturing facility in Chicopee,
Massachusetts, one of its manufacturing processes uses afiltration system to recycle 95% of the water it uses.

• At our headquarters in Carlsbad, California, the irrigation
system uses 100% reclaimed water for landscaping, rather
than withdrawing city water.
• Callaway’s central plants’ cooling and heating operations
use a patented soft water program that reduces water use
at Callaway’s headquarters by more than 2 million gallons
per year, and eliminates more than 1,000 gallons ofhazardous chemicals per year.

GOOD GOVERNANCEPEOPLE

PL ANETPRODUCTPROCUREMENTAPPENDIX• The natural gas fuel cell system that will be installed at our
Chicopee, Massachusetts facility is expected to reduce theequivalent of 500 million gallons of water used per year, as
compared to electricity being supplied through the local
utility company.

• At Topgolf venues, driving range outfields are made ofartificial turf, and therefore require no irrigation. Most
Topgolf venues also direct storm water runoff into detention
facilities, such as wet or dry basins. This lessens the impact
to local streams, rivers, and other water bodies.

• At Jack Wolfskin the “Zero Discharge of Hazardous
Chemicals (“ZDHC”) Wastewater Guidelines” are used forregular wastewater analysis at its suppliers’ production sites.
By managing the chemical inputs and ensuring procedures
and indicators are in place during manufacturing, the process
outputs are cleaner and safer for the environment.

2021 WATER CONSUMP TION
(ML)

CALL AWAY [1]171

TOP GOLF [2]833[1] Includes global operations for Callaway, Jack Wolfskin, OGIO, and TravisMathew.
[2] Includes Topgolf's U.S. venues.

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PL ANETPRODUCTPROCUREMENTAPPENDIXPRODUCT
Callaway takes pride in developing premium, high-performance products for our athletes andcustomers. Technical innovation and quality control are critical elements of our production
process and are a main source of our competitive advantage. We also believe that being aleader in innovation means integrating sustainable practices throughout the product lifecycle.
While Callaway has a long-standing commitment to reducing waste and increasing efficiency,
we continually seek new ways to introduce sustainability into the way we design, source,and extend the life of our products.

PRODUCT DESIGN AND INNOVATIONPRODUCT MANAGEMENTPRODUCT QUALIT Y AND COMPLIANCE

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PL ANETPRODUCTPROCUREMENTAPPENDIXPRODUCT DESIGNAND INNOVATION
Callaway’s passion for innovation drives our effort to bringsustainability into our product designs. We actively work with
our development teams and suppliers to find new ways ofminimizing our environmental footprint through design
improvements. The range of goods offered by our brands
creates unique opportunities for each brand to embrace the useof recycled materials and green chemistry in new product lines.
Our brands value the opportunity to learn from Jack Wolfskinin its adoption of sustainable apparel practices and design.
Jack Wolfskin was the first of its peers to close the production
loop for the membrane layer in a waterproof jacket. Its
Texapore-Ecosphere collection features an outer layer,
membrane, and lining that is made entirely of pre- and postconsumer waste and production scraps, andpost-consumer
PET material. Jack Wolfskin’s 2021 Spring/Summer Collection
encompassed over 150 products featuring TexaporeEcosphere, as well as two other fully recycled material
technologies known as Nanuk-Ecosphere and MicroguardEcosphere. Since 2018, Jack Wolfskin has produced over
1,557,000 meters (1,033 miles) of Texapore-Ecosphere43

membrane alone. The waste saved by these three technologies
is equivalent to 34,330,000 recycled one-liter PET bottles.
To learn more about how Jack Wolfskin achieves this process,please visit Jack Wolfskin’sTexapore-Ecosphere page.
Some other recent innovative product designs include:• In 2021, Jack Wolfskin was awarded the German
Sustainability Design Award for its Wolftrail 28 RECCO
backpack. The award recognizes environmentally friendly
production and the responsible use of resources.

• In 2019, Jack Wolfskin achieved its goal to make allapparel and equipment 100% free of perfluorinated andpolyfluorinated compounds (“PFCs”). Jack Wolfskin’s next
target is to completely phase out PFCs in footwear by 2025.

• In 2021, TravisMathew worked closely with suppliers tocreate its first collection of premium, sustainable fabrics
made from either certified-recycled polyester or 100%organic cotton. It launched this eco-friendly apparel line in
September in partnership with the World Surf League, andcontributed $145,023 as part of its Surfrider 100% profits

campaign. TravisMathew is also engaged in an ongoing
effort to include recycled or environmentally sustainable
materials in more of its fabrics and has set a target of $50
million in sales of sustainable product in 2023.

• In 2021, Callaway Golf Japan launched its Solid caddie bags
made from 50% recycled polyester and a “Go Green” apparelcollection made from recycled materials and manufactured
using less water. The eco-line is expected to expand to morethan 50 styles in 2022.

• Callaway is working with a scientific initiative at the Universityof California, San Diego that is creating biodegradable polymer
materials from algae. We are utilizing the technology to explore
various foam options for shoulder straps across a range ofCallaway, OGIO, and Jack Wolfskin products.

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PL ANETPRODUCTPROCUREMENTAPPENDIXPRODUCT MANAGEMENT
Callaway’s commitment to product excellence goes beyond
design and manufacturing. We strive to uphold responsible
management practices at all stages of the product lifecycle.
We have adopted programs and procedures to ensure our raw
materials are sourced responsibly, our supply chain factories
minimize the use of toxic chemicals by applying green
chemistry principles, and our products can be used — andreused — as long as possible. We are committed to delivering
products that are safe for our customers and compliant withhigh quality standards.

PRODUCT LIFECYCLE
MANAGEMENT
Callaway cares about being a responsible corporate citizen
and is conscious of the environmental impact of our products
throughout their lifecycle. In turn, we have implemented
numerous initiatives aimed at reducing the impact of manyof our products at various stages. Examples include pursuingenergy and water efficiency retrofitting at our manufacturing
facilities, reducing the amount of single-use plastic andcardboard packaging used in product transportation, andestablishing recycling and scrapping procedures for when
our products reach their end of life.
Where possible, Callaway seeks to extend the life of our
products through product resale, repairs, and donations.
Callaway’s ‘Trade In! Trade Up!’ Program encourages ourcustomers to return lightly used golf clubs of any major brandin exchange for a credit toward the purchase of new Callaway
products. We then refurbish and sell these clubs at our online
store as certified, pre-owned equipment, helping to reduce thenumber of clubs adding to consumer waste. Callaway is alsoproud of its warranty program for golf products. In 2021,
our Monterrey, Mexico facility repaired 14,243 clubs, thereby

44

extending the life of these clubs. In Japan, Callaway productsthat do not meet our cosmetic standards and cannot be
upgraded to the highest quality by repair are sold in outlet
stores to minimize products going to landfill.
Jack Wolfskin operates a repair shop in Hamburg, Germany
to extend the life of its products and reduce clothing waste.
A number of metrics are tracked to help understand the
product lifecycle management performance. In a 16-month
period from January 1, 2020 to May 1, 2021, customers used
the following repair shop services:• 3,445 professional wash and treatment services, whichmakes Jack Wolfskin’s water-repellent products good as new• 5,104 warranty repairs• 2,303 goodwill repairs• 3,356 out-of-warranty repairs

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PL ANET

MATERIALS SOURCINGAND EFFICIENCY
Callaway recognizes the potential environmental impacts
generated by the use of raw materials in our manufacturing
processes. We also believe that premium, high-performance
products should be made from materials that are responsibly
sourced. In turn, we are committed to transparently disclosing
the materials we source, and we strive to mitigate the impactof their use.
Callaway sources a range of raw materials from domestic
and international suppliers to manufacture certain Callaway
products. Callaway sources mainly steel, titanium alloys, andcarbon fiber for the manufacturing of golf clubs, and mainly
synthetic rubber, thermoplastics, and zinc compounds for the
manufacturing of golf balls. Callaway’s Conflict Mineral Policy
provides assurance that any sourcing of tin and tungsten will
not directly or indirectly finance armed groups in the Covered
Countries, as defined by the Conflict Minerals Regulation issued
by the U.S. Securities and Exchange Commission (“SEC”) under
the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010, with further details included in Callaway’s SEC
Specialized Disclosure Report.
For apparel and footwear, Callaway sources cotton, wool,
rubber, and various synthetic fabrics, some of which are madefrom post-consumer recycled materials. Callaway strives tocontinually improve our understanding of the origins of raw
materials we use, and is committed to ensuring that all raw
materials in our supply chain are responsibly sourced.

45

PRODUCTPROCUREMENTAPPENDIXJack Wolfskin implements a number of practices to ensure its
materials are sourced in a responsible and ethical manner, andpublicly discloses its suppliers’ accreditations on its website.
All materials Jack Wolfskin sources from animals — except
wool — must be a by-product of the food industry, including
all down and leather. All cotton used in Jack Wolfskin products
is certified organic, and all feather down is independently
certified by Responsible Down Standard to extend animal
welfare. Jack Wolfskin exclusively uses Merino wool from
non-mulesed sheep and has never used real fur, Angora, or
Mohair wool. By 2025, Jack Wolfskin intends to have all its
wool certified by the Responsible Wool Standard. Additionally,
all recycled materials used by Jack Wolfskin are certified by
the Global Recycled Standard. To learn more about Jack
Wolfskin’s sustainable sourcing practices, please visit
Social Responsibility at Jack Wolfskin.
To enhance resource efficiency, Callaway maintains numerous
initiatives to increase our use of post-consumer recycledmaterials in products and packaging, which are highlighted
in the Product Design and Innovation section of this report.
Callaway conducts a New Material Review Process to evaluate
the environmental and safety impact of the materials used in
our manufacturing and assembly facilities, as well as supplierfacilities. This process aims to reduce impacts to air quality,
mitigate risk to worker safety and public health, and identify
green alternatives. It also ensures that Callaway products do notcontain restricted substances and are safe for our customers
and the environment. Further information is available in the
Product Quality and Compliance section of this report.

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PL ANETPRODUCTPROCUREMENTAPPENDIXPRODUCT QUALITYAND COMPLIANCE
Callaway’s commitment to ethical business means delivering
premium products that ensure the safety of our customers andminimize the impact on the environment. Callaway’s products
do not contain hazardous substances, and the Company
regularly tests its products to ensure they meet or exceed
physical and chemical compliance requirements.
Callaway utilizes the RSL published by the American Appareland Footwear Association (“AAFA”) to ensure its products
comply with global standards such as the Consumer Product
Safety Commission (“CPSC”), EU REACH, and California’s
Proposition 65 requirements. Jack Wolfskin and TravisMathew
also maintain product safety and quality standards according to
the Jack Wolfskin Green Book and the TravisMathew Quality
Manual, respectively. Jack Wolfskin independently requests thatits partners use the ZDHC Manufacturing Restricted Substances
List (“MRSL”) which does not permit the use of prohibitedchemicals, or that may exceed strict concentration limits,throughout the complete production process. Jack Wolfskinalso maintains a partnership with bluesign® to reduce hazards
and risks associated with chemicals used in the textile
manufacturing process. Currently, over 80% of Jack Wolfskin’s
fabrics have been approved by bluesign®.
In addition to working closely with regulatory agencies, Callaway
participates in professional working groups such as the AAFA
to ensure that we are upholding best practices and promoting
them across our industry. To guarantee that Callaway products
meet RSL requirements, we regularly work with suppliers toestablish and improve their reasonable testing programs.[1] These
programs drive best practices, helping suppliers understand RSL
restrictions and establish quality assurance systems. Throughour own periodic testing, Callaway verifies that these reasonable
testing programs continue to uphold the Company’s productstandards. Callaway also uses established quality policies andprocedures that align with the American National Standards
Institute’s ASQ Z1.4 Standard: Sampling Procedures and Tables
for Inspection by Attributes.

Internally, the Company’s Compliance Team works closely with
the Global Engineering and Quality Department to review new
paints and solvents proposed for our products. From a toxicity
standpoint, Callaway evaluates products to minimize and/or
eliminate the use of “hazardous air pollutants,” as defined by the
U.S. EPA, and to reduce VOC emissions, which are a precursor
to smog. Callaway compares the VOC content of our paints withlimits established by the San Diego Air Pollution Control District,which are among the most stringent in the world.
Callaway’s Quality Assurance Team invests time in training our
suppliers on the Acceptable Quality Level process and in 2021,
Callaway experienced no consumer retail product recalls due
to safety or environmental compliance across all of our brands.
[1] A reasonable testing program is defined by guidance and best practice provided by
the CPSC.

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PL ANETPRODUCTPROCUREMENTAPPENDIXPROCUREMENT
Callaway believes premium products require suppliers that share our commitment to quality, honesty, andintegrity. We view our suppliers as an extension of our Company and actively manage our supplier relationships
in alignment with our belief that “good ethics is good business.” In turn, we prioritize selective, long-term
supplier partnerships that uphold socially responsible business practices throughout our supply chain.

PROCUREMENT PR ACTICES47

SUPPLIER ASSESSMENT AND ENGAGEMENT

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PL ANETPROCUREMENT
PRACTICES
Callaway has a longstanding commitment to responsible
procurement. Over the last decade, we have consolidated thenumber of our manufacturing partners as much as possible,
allowing us to build deeper, long-term relationships with fewer
suppliers, and work together to achieve socially responsible
procurement. Through consolidation, Callaway has been able
to collaborate more closely with our suppliers and maintaina greater level of oversight of social and environmental
performance. Callaway has implemented a number ofpractices and processes, described in this section, to ensurecompliance with our social and environmental standards.
These include: a supplier review and approval process;administrative controls such as contracts and agreements;
thorough internal and third-party supplier audits; andemployee and supplier training and education.

PRODUCTPROCUREMENTAPPENDIXOVERVIEW OF SUPPLIER FACILITIESIn 2021, Callaway brands contracted with manufacturing suppliers
from 20 countries,[1] with the majority of these countries locatedin Asia. The largest portion of the Company’s external production
volume originates from China, Indonesia, Taiwan, and Vietnam.
Some of our suppliers operate in several locations; therefore,
Callaway maintains a direct line of communication with individual
manufacturing sites and optimizes each collaboration according
to local conditions and circumstances.

NEW SUPPLIER SELECTION PROCESSAll of Callaway’s new manufacturing suppliers are screened
based on compliance with our Supplier Code of Conduct[2],which requires suppliers to provide safe working conditions,
treat workers with respect, and use socially and environmentally
responsible business practices. We also require our suppliers’
leadership to sign an agreement acknowledging theircommitment to meeting our expectations. Callaway thenconducts an extensive onboarding process, which requires
new suppliers to be approved by Callaway’s Corporate Social
Responsibility (“CSR”) Compliance, Trade Compliance, Security,
Finance, Legal, and Program Management teams. Callaway’s
on-site sourcing team members also visit our new supplierpartners to assess their performance and voice the Company’s
expectations face-to-face. In 2021, Callaway conducted auditsof all 36 of our new suppliers.

[1] Callaway brands include Callaway Golf, Jack Wolfskin, OGIO, and TravisMathew.
[2] T his policy applies to Callaway and our subsidiaries, our suppliers, vendors and partners, and is applied to newly acquired ventures within a reasonable period after acquisition.

48

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PL ANETPRODUCTPROCUREMENTAPPENDIX

U .K.
SOUTH KOREAGERMANY
ITALY

U .S.

SLOVENIAJAPAN
TURKEYCHINATAIWANMEXICOBANGL ADESH
MYANMAR

VIETNAMCAMBODIA
PHILIPPINESTHAIL ANDPERU

SINGAP ORE
INDONESIAOUR SUPPLIERFACILITIES[1][1] Callaway brands include Callaway Golf, Jack Wolfskin, OGIO, and TravisMathew.

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PL ANETPRODUCTPROCUREMENTAPPENDIXSUPPLIER ASSESSMENT
AND ENGAGEMENT
In order to drive continuous improvement in our supply chain,
Callaway regularly assesses all new and existing suppliers
through an extensive auditing process. Callaway conducts
various types of audits, including: regular and occasionallyunannounced on-site audits conducted or attended byCallaway personnel; collaborative or self-audits; and periodic
third-party on-site audits. Our audits evaluate the performanceof each supplier facility by applying a comprehensive
catalogue of criteria aligned with our Supplier Code of
Conduct, as well as standards and best practices establishedby our third-party audit responsible sourcing partners andbenchmarked against recognized standards such as Sedex
Members Ethical Trade Audit, Worldwide Responsible
Accredited Production, and Business Social Compliance
Initiative. Callaway is also a signatory to the Responsible
Recruiting Commitment and Cambodia (Worker’s Rights)
Brand Letter. In addition, Jack Wolfskin independently audits
its suppliers to meet the expectations of the Fair Wear
Foundation (“FWF”), of which it is a member. Theseevaluations provide the Company’s procurement teams withan accurate picture of each supplier facility’s strengths,

50

shortcomings, and progress. Callaway transparently shares all
audit results with the respective manufacturing partner andvalidates any corrective action that needs to be addressed
within a defined timeframe.
Independent, third-party firms have conducted audits ofCallaway suppliers since 2007 and all other brands within areasonable time period post-acquisition. Auditing teams fromthese firms periodically visit our supplier facilities to assess
working conditions and verify whether any improvement
measures formerly agreed upon have been implemented
successfully. They also benchmark Callaway’s performance withleading customers and manufacturing peers to ensure that theCompany is following best practices. To improve performancein lower-scoring supplier facilities, our CSR Compliance
Program engages in training and educational outreach withfacility management and employees. Callaway’s full-timecompliance specialists provide coaching to suppliers to help
them improve their social and environmental performance,
especially in areas such as reasonable working hours and faircompensation. Together, we work with our suppliers to charta business path that is both economical and responsible.

In 2021, Callaway assessed 100% of the 75 suppliers subject toits social audit criteria. The majority of these suppliers met theCompany’s criteria for social compliance. Five suppliers wereidentified as companies that Callaway will partner with onvarious Performance Improvement Plans. One supplier was
identified as having potentially discriminatory labor practices.
This supplier was re-audited promptly, at which time wevalidated the supplier was in compliance. Callaway also
audited all 75 suppliers subject to our environmental audit
criteria, all of which met the Company’s standards forenvironmental compliance.

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PL ANETPRODUCTPROCUREMENTAPPENDIXHIGHLIGHT STORY

JACK WOLFSKIN

As a member of the Fair Wear Foundation since 2010, Jack Wolfskin has established industry-leading standards for fair,humane, and safe working conditions across its Tier 1 suppliers and subcontractors. The following section highlights key
initiatives Jack Wolfskin implements with its manufacturing partners. For a comprehensive overview of Jack Wolfskin’s
management approach to socially responsible procurement, please refer to the brand’s website.

Commitment to Living Wages
Jack Wolfskin is committed to establishing living wages forthe employees at their suppliers’ factories. A living wage allows
workers to provide for their families, to afford housing, and topay for other important necessities. It reflects what workers
in a family need to bring home based on the actual costs ofliving in a specific community, which is typically higher than agovernment regulated minimum wage. Jack Wolfskin does notoperate its own manufacturing facilities and instead relies on avariety of suppliers to meet its production needs. This meansthat the brand does not directly employ or pay any production
workers, which makes establishing living wages a challenge, as it
is ultimately the supplier who pays the employees manufacturing
its products. However, Jack Wolfskin diligently works with its
manufacturing partners to try to secure living wages for theirworkers, believing that this is the just and sustainable way to
conduct business.

51

Fair Wear Foundation
Workplace Education Programs
At Jack Wolfskin’s supplier facilities, on-site trainings are offered
to both management and employees within the scope of the
FWF Workplace Education Programs. To this end, Jack Wolfskinsends experienced FWF representatives who are well acquainted
with the local language, culture, and characteristics of thatparticular country to lead supplier education programs. The
trainings provided create awareness around safe and fair working
conditions and inform all involved parties of their statutory rights
and obligations. FWF representatives also focus on the meansand possibilities of constructive communication when
encountering issues in the workplace, as well as the benefits ofutilizing FWF’s Complaints Management System. Jack Wolfskin
further supports these efforts with supplementary trainings andseminars regarding country-specific topics. In Myanmar, forexample, the FWF designed new training that enables Human
Resources employees to determine the true age of job applicants,
which helps to prevent child labor. Additional training topics
include pricing to factor in living wages and the importance of
free unionization. Jack Wolfskin aims to repeat these trainings,
and others as they become available, at its suppliers’ sites on an
as-needed basis.

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PL ANETPRODUCTPROCUREMENTAPPENDIXAPPENDIXABOUT THIS REP ORT52

GRI CONTENT INDEXTCFD INDEX

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PL ANETPRODUCTPROCUREMENTAPPENDIXABOUT THIS REPORTThis 2021 Sustainability Report is the inaugural report for
Callaway, providing a summary of Callaway’s performanceacross corporate offices, facilities, and global operations.
This report covers Callaway’s fiscal year from January 1, 2021
to December 31, 2021, and contains material disclosuresreferencing GRI Standards.

With Callaway’s merger with Topgolf in March 2021,
standardized practices for collecting and integrating data
across all subsidiaries remain in development. For the 2021
Sustainability Report, Callaway and Topgolf data is disclosed
separately, unless otherwise stated. Franchises are not includedin this report because they are independently run businesses.

This Sustainability Report focuses on Callaway’s achievements
and programs for 2021, although references to previous years
may be included for context. It is structured around thematerial environmental and social topics Callaway identified
through stakeholder engagement and a materiality assessment
conducted in 2021. Through this process, Callaway has
established the baseline year to be 2021, and is committed
to developing and setting realistic and actionable goals overthe next year, aiming to include them in the next Sustainability
Report. Transparency is important to Callaway; therefore,
Callaway is taking steps to further improve the data collection
process for the Sustainability Report and strives to disclose
additional data in future reports where possible.

All costs and financial figures throughout the report areprovided in U.S. Dollars, unless otherwise noted.

53

Callaway did not seek external assurance from third parties withrespect to the information in this report. The data presented inthis 2021 Sustainability Report has been internally collected,
reviewed, and validated for completeness and accuracy.
For any questions related to Callaway’s 2021 Sustainability
Report, please contact GlobalSustainability@callawaygolf.com.
2180 Rutherford Road
Carlsbad, California 92008(760) 931–1771
www.callawaygolf.com

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PL ANETPRODUCTPROCUREMENTAPPENDIXGRI CONTENT INDEXDISCLOSUREDISCLOSURE TITLE

LOCATION IN SUSTAINABILITY REPORT

NOTES

102-1

Name of the organization

See note.

Callaway Golf Company.

102-2

Activities, brands, products, and services

See note.

See our 2021 Form 10-K, pages 1–7.

102-3

Location of headquarters

See note.

Carlsbad, California.

102-4

Location of operations

See note.

See our 2021 Form 10-K, pages 1–7.

102-5

Ownership and legal form

See note.

Delaware corporation.

102-6

Markets served

See note.

See our 2021 Form 10-K, pages 1–7.

102-7

Scale of the organization

See note.

See our 2021 Form 10-K, pages 7, 8, and 53–59.

GENERAL STANDARDS
Organizational Profile

See our ESG Data Table, “Workforce Composition.”
102-8

Information on employees and other workers

See note.

See our 2021 Form 10-K, page 8.
There is not a significant portion of the Company’s activities that is
performed by workers who are not employees of the Company.

102-9

54

Supply chain

Procurement

See also our Transparency in Supply Chains Act and UK Modern
Day Slavery Act Policy.

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NOTES
See also our 2021 Form 10-K, pages 1, 2, and 11.

102-10102-11Significant changes to the organization and its supply chain

Precautionary Principle or approach

Procurement

See note.

In March 2021, Callaway Golf completed their merger with Topgolf
International, Inc.
In order to mitigate our environmental impacts, Callaway’s environmental
policies and procedures endeavor to support the Precautionary Principle
as referenced in the state of California’s ‘The Precautionary Principle in
Action.’ For example, Callaway’s New Material Review Process follows aprecautionary approach to approving chemicals used in our manufacturing
facilities, and we do not use substances listed on the ZDHC MRSL.
Callaway Golf Company: AAFA Cambodia Brand Letter; AAFA
Commitment to Responsible Recruitment

102-12External initiatives

See note.

Jack Wolfskin: Certifications from Textile Exchange (Global Recycled
Standard; Responsible Down Standard; Responsible Wool Standard;
Organic Content Standard); Fur Free Retailer Program; Grüner Knopf
Callaway Golf Company: AAFA; Industrial Environmental Associationof San Diego; United States Golf Association; The Professional Golfers’
Association; Sports & Fitness Industry Association

102-13

Membership of associations

See note.

102-14

Statement from senior decision-maker

CEO Letter102-15Key impacts, risks, and opportunities

TCFD Index

Jack Wolfskin: bluesign System Partner; Bundesverband der Deutschen
Sportartikel-Industrie e.V.(BSI); European Outdoor Conservation
Association; European Outdoor Group; FWF; German Fashion
Association; Outdoor Industry Association; Sustainable Apparel Coalition

Strategy

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See also our 2021 Form 10-K, pages 13–46.

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PL ANETPRODUCT

LOCATION IN SUSTAINABILITY REPORTNOTESOur Culture

See also our 2021 Form 10-K, page 8.

Commitment to Ethics and Integrity

See also our Code of Conduct.

PROCUREMENTAPPENDIX

Ethics and Integrity

102-16

Values, principles, standards, and norms of behavior

102-17

Mechanisms for advice and concerns about ethics

Commitment to Ethics and Integrity

See also our Code of Conduct.
See also our Corporate Social Responsibility page.

GovernanceCorporate GovernanceSee also our Corporate Governance Guidelines.

Callaway Global Sustainability Program

See also our 2021 Proxy Statement, pages 9–25.

Delegating authority

Callaway Global Sustainability Program

See also our Corporate Governance Guidelines and Committee Charters.

102-20Executive-level responsibility for economic, environmental,
and social topics

Callaway Global Sustainability Program

See also our Corporate Governance Guidelines.

102-21

Consulting stakeholders on economic, environmental,
and social topics

Materiality Assessment and Stakeholder Engagement102-22Composition of the highest governance bodyand its committees

102-18Governance structure102-19See our ESG Data Table, “Board Composition.”
See note.

See our 2021 Proxy Statement, pages 9, 10, 14, 15, and 25–36.
See our Corporate Governance Guidelines.

102-23Chair of the highest governance body

Corporate GovernanceSee also our 2021 Proxy Statement, page 27.

102-24

Nominating and selecting the highest governance bodySee note.

See our 2021 Proxy Statement, pages 9–13, and 17.

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See our Code of Conduct, pages 3–6.

102-25

Conflicts of interest

See note.

See our 2021 Proxy Statement, pages 9, 11, 16, and 17.
See our Corporate Governance Guidelines.

102-26

Roles of highest governance body in setting purpose,values, and strategy

Callaway Global Sustainability Program

See also our Corporate Governance Guidelines, pages 5–6.

Corporate GovernanceSee also our 2021 Proxy Statement.

102-27

Collective knowledge of highest governance body

Callaway Global Sustainability Program

102-29Identifying and managing economic, environmental,
and social impacts

Callaway Global Sustainability Program

See also our 2021 Proxy Statement, pages 18–21 and 43–45.

Corporate Governance

The Company’s Board oversees risk management of economic,
environmental, and social topics and the mechanisms the Company
possesses to control their associated risks. The Board-appointed Audit
Committee’s duties and responsibilities include reviewing and discussing
the Company’s policies with respect to risk assessment and risk
management. See also our Audit Committee Charter, pages 1–4.

102-30Effectiveness of risk management processes

102-31

Review of economic, environmental, and social topics

102-32Highest governance body’s role in sustainability reporting

102-33

Communicating critical concerns

Callaway Global Sustainability Program
TCFD Index
Callaway Global Sustainability Program

See note.

The Company’s Corporate Audit update and the Chief Ethics Officer
report are provided to the Audit Committee of the Board on a quarterly
basis. All Company personnel leave the room to ensure an independent
channel to avoid any conflict of interest during the independent board
executive sessions. The General Counsel of the Company also has theoption to call an executive session with the Board if needed.
See our Audit Committee Charter.

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PL ANETPRODUCTPROCUREMENTDISCLOSUREDISCLOSURE TITLE

LOCATION IN SUSTAINABILITY REPORTNOTES

102-35

Remuneration policies

See note.

See our 2021 Proxy Statement, pages 22–24, 42–45,
51–56, 61, 62, and 64–69.

102-36

Process for determining remuneration

See note.

See our 2021 Proxy Statement, pages 16, 17, 22, and 42–58.

102-37

Stakeholders’ involvement in remuneration

See note.

See our 2021 Proxy Statement, pages 42, 44, and 45.

102-38Annual total compensation ratio

See note.

See our 2021 Proxy Statement, page 74.

APPENDIX

Stakeholder Engagement102-40

List of stakeholder groups

Materiality Assessment and Stakeholder Engagement102-41

Collective bargaining agreements

See note.

102-42

Identifying and selecting stakeholders

Materiality Assessment and Stakeholder Engagement102-43

Approach to stakeholder engagement

Materiality Assessment and Stakeholder Engagement102-44

Key topics and concerns raised

Materiality Assessment and Stakeholder Engagement102-45

Entities included in the consolidated financial statements

See note.

102-46

Process for defining report content and topic Boundaries

102-47

List of material topics

Materiality Assessment and Stakeholder Engagement102-48

Effect of restatements of information

See note.

No restatements, this is Callaway Golf’s first report.

102-49Significant changes in reportingSee note.

No changes, this is Callaway Golf’s first report.

See our ESG Data Table, “Labor Relations.”

Reporting Practice58

Callaway Golf Company, OGIO, Jack Wolfskin, Topgolf, andTravisMathew are included in Callaway's 2021 Form 10-K.

Materiality Assessment and Stakeholder Engagement
About This Report

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PL ANETPRODUCTPROCUREMENTDISCLOSUREDISCLOSURE TITLE

LOCATION IN SUSTAINABILITY REPORTNOTES

102-50

Reporting period

About This Report

January 1st, 2021 – December 31st, 2021.

102-51

Date of most recent report

About This Report

This is the Company’s first report.

102-52

Reporting cycle

See note.

Bi-annual.

102-53

Contact point for questions regarding the report

About This Report

GlobalSustainability@callawaygolf.com

102-54

Core or Comprehensive claim

About This Report

This report contains material disclosures referencing GRI Standards.

102-55

GRI content index

GRI Content Index

102-56

Policy/practice for external assurance

About This Report

APPENDIXInternal assurance only.

ENVIRONMENTAL STANDARDS
Materials
Management approach

Materials Sourcing and Efficiency

103

Management approach

Energy Management

302-1

Energy consumption within the organization

Energy Management

302-3

Energy intensity

See note.

302-4

Reduction of energy consumption

Energy Management

103
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PL ANETPRODUCTPROCUREMENTDISCLOSURE TITLE

LOCATION IN SUSTAINABILITY REPORT103

Management approach

Water and Wastewater Management

303-1

Interactions with water as a shared resource

Water and Wastewater Management

303-5

Water consumption

Water and Wastewater Management

103

Management approach

Climate Change and Emissions

305-4

GHG emissions intensity

Climate Change and Emissions

See also our ESG Data Table, “Emissions.”

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions

See note.

See our ESG Data Table, “Emissions.”

103

Management approach

Waste Management and Recycling

306-1

Waste generation and significant waste-related impacts

Waste Management and Recycling

306-2

Management of significant waste-related impacts

Waste Management and Recycling

306-3

Waste generated

Waste Management and Recycling

See also our ESG Data Table, “Waste.”

306-4

Waste diverted from disposal

Waste Management and Recycling

See also our ESG Data Table, “Waste.”

306-5

Waste directed to disposal

Waste Management and Recycling

See also our ESG Data Table, “Waste.”

APPENDIXNOTES

Water and Effluents

See also our ESG Data Table, “Water.”Emissions

Waste

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NOTES

Environmental ComplianceSee our Code of Conduct, pages 9–10.

103Management approach

See note.

307-1

Non-compliance with environmental laws and regulations

See note.

See our ESG Data Table, “Environmental Compliance.”

See our Environmental, Health and Safety Policy.

Supplier Environmental Assessment
103

Management approach

Supplier Assessment and Engagement

See also our Transparency in Supply Chains Act and
UK Modern Day Slavery Act Policy.

308-1

New suppliers that were screened using environmental criteria

See note.

See our ESG Data Table, “Supplier Environmental Assessment.”

308-2

Negative environmental impacts in the supply chain
and actions taken

See note.

See our ESG Data Table, “Supplier Environmental Assessment.”

103

Management approach

Employee Attraction and Retention

401-1

New employee hires and employee turnoverSee note.

See our ESG Data Table, “Hiring.”

401-3

Parental leave

See note.

See our ESG Data Table, “Parental Leave.”

SOCIAL STANDARDS
Employment

Occupational Health and Safety
103Management approach

Health and Safety of Our Employees

403-1

Occupational health and safety management system

Health and Safety of Our Employees

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403-2

Hazard identification, risk assessment,
and incident investigation

Health and Safety of Our Employees

403-3

Occupational health services

Health and Safety of Our Employees

403-4

Worker participation, consultation, and communication
on occupational health and safety

Health and Safety of Our Employees

403-5

Worker training on occupational health and safety

Health and Safety of Our Employees

403-6

Promotion of worker health

Health and Safety of Our Employees

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

Health and Safety of Our Employees

403-8

Workers covered by an occupational health and safety
management system

Health and Safety of Our Employees

See also our ESG Data Table, “Safety.”403-9Work-related injuries

Health and Safety of Our Employees

See also our ESG Data Table, “Safety.”403-10Work-related ill health

Health and Safety of Our Employees

See also our ESG Data Table, “Safety.”

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Management approach

Employee Attraction and Retention

404-1

Average hours of training per year per employee

See note.

404-2

Programs for upgrading employee skills and transition
assistance programs

Employee Attraction and Retention

404-3

Percentage of employees receiving regular performanceand career development reviews

Employee Attraction and Retention

PROCUREMENTAPPENDIXNOTESThe Communication element of the IIPP establishes Operations andDepartment safety meetings that include worker participation.

Health and Safety of Our Suppliers

Training and Education

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See our ESG Data Table, “Training.”

See also our ESG Data Table, “Training.”

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103

Management approach

405-1

Diversity of governance bodies and employees

Diversity, Equity, and Inclusion
Corporate GovernanceDiversity, Equity, and Inclusion

See also our ESG Data Tables, “Board Diversity” and“Employee Diversity.”

Freedom of Association and Collective Bargaining

103

Management approach

407-1

Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk

Labor Practices and Human Rights of Our Employees
Labor Practices and Human Rights of Our Suppliers
Labor Practices and Human Rights of Our Employees
Labor Practices and Human Rights of Our SuppliersChild Labor

103

Management approach

408-1

Operations and suppliers at significant risk for incidents
of child labor

Labor Practices and Human Rights of Our Employees
Labor Practices and Human Rights of Our Suppliers
Supplier Assessment and Engagement

Callaway’s CSR diligence for suppliers covers child labor.

Forced or Compulsory Labor
Labor Practices and Human Rights of Our Employees
103Management approach

Labor Practices and Human Rights of Our Suppliers
Supplier Assessment and Engagement

409-1

63

Operations and suppliers at significant risk for incidents
of forced or compulsory labor

Supplier Assessment and Engagement

Callaway’s CSR diligence for suppliers covers forced labor.

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103

Management approach

412-2

Employee training on human rights policies or procedures

412-3

Significant investment agreements and contracts that
include human rights clauses or that underwent humanrights screening

Labor Practices and Human Rights of Our Employees
Supplier Assessment and Engagement

Labor Practices and Human Rights of Our Employees

Training is required for all new employees and existing employees
receive periodic training on the topics of Human Rights and theCallaway Code of Conduct.
See our ESG Data Table, “Human Rights Assessment.”

See note.

The merger agreement with Topgolf is a significant contract for
the Company and contains a compliance with laws provision.
This includes compliance with human rights laws.

Social Supplier Assessment
103

Management approach

Supplier Assessment and Engagement414-1

New suppliers that were screened using social criteria

New Supplier Selection Process

See also our ESG Data Table, “Supplier Social Assessment.”

414-2

Negative social impacts in the supply chain and actions taken

See note.

See our ESG Data Table, “Supplier Social Assessment.”

Incidents of non-compliance concerning the health andsafety impacts of products and services

See note.

Callaway has not identified any non-compliance with regulations
and/or voluntary codes concerning the health and safety impacts
of its products and services.

Incidents of non-compliance concerning product andservice information and labelingSee note.

Callaway has not identified any non-compliance with regulations and/or
voluntary codes concerning product and service information and labeling.

Customer Health and Safety

416-2

Marketing and Labeling
417-2

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PL ANETTCFD INDEX
Callaway is conscious of the risks that climate change poses to ourplanet, our stakeholders, and our company. We have aligned thissection of our report to the Financial Stability Board’s Task Force on
Climate-Related Financial Disclosures (“TCFD”). Callaway is beginning
to assess and incorporate TCFD recommendations into our reporting,
and we aim to report additional details in future reports.

fewer golf rounds played and reduced demand for all golf products,
and in particular, golf balls. Furthermore, catastrophic storms cannegatively affect golf rounds played both during the storms andafterward as storm-damaged golf courses undergo repairs andgolfers choose to focus on repairing the damage to their homes,
businesses, and communities. Consequently, sustained adverse
weather conditions could materially affect sales.

GOVERNANCE

We expect our expanding apparel business to experience stronger
revenue during different times of the year than our golf-related
business. However, a portion of the sales of our apparel products isdependent in part on the weather, and it is likely to decline in years
in which weather conditions do not stimulate demand for our apparelproducts. Changing climate patterns may result in both risks andopportunities for our apparel business depending on prevailingtemperatures during a season. For example, a risk scenario wouldfeature periods of unseasonably warm weather in the fall or winteror unseasonably cold weather in the spring and summer. Unintended
inventory accumulation by customers resulting from unseasonable
weather in one season generally negatively affects orders in futureseasons, which could have a material adverse effect on our business,financial condition, and results of operations. In particular, theCompany’s Jack Wolfskin business focuses primarily on outerwear andconsequently experiences stronger sales for such products during thecold-weather months and the corresponding prior selling periods.
A significant portion of the Jack Wolfskin business is highly dependent
on cold-weather seasons and patterns to generate consumer demandfor cold-weather apparel. Consumer demand for Jack Wolfskinbranded cold-weather products may be negatively affected to theextent global weather patterns trend warmer and reduce typical
patterns of cold-weather events or increase weather volatility.

The Board and Executive Sustainability Committee oversee the Global
Sustainability Program’s goals and objectives, including those related
to climate-related risks and opportunities. Discussions around theserisks and opportunities and our management approach occur throughour regular Global Sustainability Program communication channels,
which include quarterly updates to the Executive Sustainability
Committee and annual updates to the Board, in addition to quarterly
reviews of our ESG performance inclusive of climate change by the
Board’s Nominating and Corporate Governance Committee.

STRATEGY
We have identified several climate-related risks that could materiallyadversely affect Callaway’s business, financial condition, and resultsof our operations. Due to the seasonality of our businesses, there is
the potential for unusual or severe weather conditions (flooding,drought, etc.) and fluctuations in weather patterns caused by climatechange to cause significant adverse effects to our business. One such
scenario is unfavorable weather conditions, which generally result in

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PRODUCTPROCUREMENTAPPENDIXRISK MANAGEMENT
Callaway’s Sustainability Core Team periodically assesses our
climate-related risks and opportunities and reports its findings to the
Executive Sustainability Committee and the Board. The climate risk
assessment which identified the previously mentioned risk scenarios
will be further refined as we continue incorporating TCFD into ourGlobal Sustainability Program. Continued engagement with ourleadership teams will continue to help inform our strategy aroundclimate risk management and mitigation procedures.
To mitigate our climate risks and impacts, Callaway is focusedon continuing to improve our management of energy, waste, andnatural resources. Energy consumption is a primary source of theCompany’s GHG emissions, and as part of our commitment to reduce
our carbon footprint, we are seeking new ways to lower our overall
energy consumption and increase our use of renewable energy
sources. Callaway has continued to implement energy efficiency
improvements and actively pursues new energy efficiency projects.
We are also implementing initiatives to eliminate excess waste fromthe lifecycle of our products and increase water and raw material
efficiency in our facilities and manufacturing processes. These
initiatives are discussed in detail in the Planet section of this report.

METRICS AND TARGETS
In 2021, we conducted our first calculation of GHG emissions by
converting our natural gas and electricity usage into CO2 equivalent.
We continue to enhance our energy and emissions tracking andinternal reporting to help drive continuous improvement each year.
Metrics related to emissions and energy consumption are located in
the Planet section of this report.

2021 SUSTAINABILIT Y REPORT