Herbalife Nutrition
Greenhouse Gas Emissions Verification Opinion Declaration

Background

Herbalife Nutrition, a global leader in nutrition and weightmanagement products, has committed to transparency and accountability in its climate strategy. As part of this commitment, an independent thirdparty verification was commissioned to assess the companys greenhouse gas (GHG) emissions for the reporting year 2023. The outcome of that verification is summarized in the Greenhouse Gas Emissions Verification Opinion Declaration (the Declaration).

The Declaration provides stakeholdersinvestors, distributors, regulators, and consumerswith a clear, auditable view of the scope, magnitude, and trends of Herbalifes carbon footprint, as well as the robustness of the data collection and reporting processes.

Methodology and Scope

The verification adhered to the International Standard for Assurance Engagements (ISAE 3000) and the GHG Protocol Corporate Standard. The scope covered:

• Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion at manufacturing plants).
• Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling.
• Scope 3: Other indirect emissions, especially those linked to product distribution, business travel, waste generated in operations, and the use of sold products.

Data were collected from 45 manufacturing sites, 112 distribution centers, and 28 regional offices across 30 countries. The verification team performed sampling, crosschecking of utility invoices, fuel logs, and thirdparty transportation data, and applied emission factors consistent with the latest EPA and IPCC guidelines.

Key Findings

The verified totals for the 2023 reporting period are:

• Scope1: 62,400tCOe (tons of CO equivalent)
• Scope2: 78,900tCOe
• Scope3: 210,300tCOe
• Total Corporate Carbon Footprint: 351,600tCOe

Compared with the 2022 baseline, the total footprint decreased by 4.2%, driven primarily by:

• Installation of energyefficient LED lighting in 30% of manufacturing sites.
• Switch to renewable electricity contracts covering 18% of total electricity consumption.
• Optimization of logistics routes, reducing average transport distance per unit by 7%.

Scope3 remains the dominant share (60%) of the total footprint, reflecting the inherent emissions of product use and the extensive global distribution network.

Assurance Opinion

The assurance provider issued an Unqualified Assurance Opinion, stating that:

• The GHG emissions data are free from material misstatement.
• The methodology applied is appropriate for the nature and scale of Herbalifes operations.
• Controls over data collection, calculation, and internal review are effectively designed and operating.

In addition, the auditor highlighted two areas for improvement:

1. Scope3 Data Granularity: While the overall figure is reliable, further disaggregationespecially for the use of sold products subcategorywould enhance stakeholder insight.
2. FutureYear Forecasting: Incorporating scenarioanalysis for potential regulatory changes (e.g., carbon pricing) would strengthen strategic planning.

Next Steps & Commitment

Herbalife Nutrition has outlined a roadmap to deepen its climate ambition:

1. ScienceBased Target: Submit a target aligned with a 1.5C pathway to the Science Based Targets initiative (SBTi) by Q42024.
2. Scope3 Reduction: Implement a supplier engagement program aimed at a 15% reduction in upstream emissions by 2027.
3. Renewable Energy Expansion: Increase renewable electricity procurement to 45% of total consumption by 2026.
4. Transparent Reporting: Publish an annual GHG emissions report in line with the CDP Climate Change questionnaire.

These actions will be monitored through an internal Climate Steering Committee, whose mandate includes quarterly progress reviews and public disclosure of any material deviations.