Advancing Science for Life | Boston Scientific
Boston Scientific is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world.
Advancing Science for Life 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Introduction Boston Scientific is dedicated to transforming lives through innovative medical solutions that improve the health of patients around the world. In this section: • The heart of Kingston • A message from our Chairman and Chief Executive Officer • Boston Scientific: 2022 at a glance • Our ESG strategy and priorities • 2022 highlights • Awards and recognition 2 2022 Performance Report
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Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix The heart of Kingston surgery to implant the DYNAGEN™ MINI ICD, Abi-Gaye has been facing down her old fears of dying young. Abi-Gaye Smythe is in constant motion, whether on the job “This is my baby," she says, pointing to the spot where her device, “ It’s given me a second chance reporting local news, at the gym working out or busy promoting which detects and stops irregular heartbeats, is implanted. “It’s at life, and I’m making the awareness of heart disease. given me a second chance at life, and I’m making the most of it.” most of it.” Now in her thirties, the powerhouse from Kingston, Jamaica Now, instead of spending her time in and out of hospitals, Abi-Gaye Smythe struggled with cardiac symptoms as a child and was eventually Abi-Gaye raises awareness of the importance of heart health. Boston Scientific patient diagnosed with arrhythmogenic right ventricular dysplasia She also organizes blood drives and partners with non-profit (ARVD). The rare condition, which claimed her mother’s life at age organizations to arrange life-saving heart surgeries for patients 39, can lead to sudden, early death. in underserved communities in Jamaica. “My mother would want Abi-Gaye was determined to find a solution to her condition. me to do all of this,” Abi-Gaye says. “I’m stronger in every way, After years of debilitating symptoms and multiple tests, her and I feel like I can do anything.” doctors recommended a small, thin implantable cardioverter We couldn’t agree more. Abi-Gaye is all heart, and it is our defibrillator (ICD) developed by Boston Scientific. Since her last privilege to be a part of her story. Abi-Gaye dedicates herself to raising heart health Regular check-ups with her doctor keep Abi-Gaye on track for continued Abi-Gaye’s determination and resilience, as well as the ICD device, have awareness in Jamaica, including organizing progress and health. allowed her to not only live a normal life, but thrive. blood drives. 3 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Table of contents This report has been prepared with reference to the Global Reporting Initiative (GRI) Standards as well as alignment with the Sustainability Accounting Standards Board (SASB) standards for the Medical Equipment & Supplies industry and the Task Force for Climate-related Financial Disclosures (TCFD) recommendations. Unless otherwise indicated, data in this 2022 Performance Report and appendix are as of, or for the year ended, December 31, 2022, as applicable. Please refer to the appendix for detailed metrics and key definitions used within this report. Reporting on other matters specific to financial performance of the company and its subsidiaries can be found in our 2022 Annual Report. Introduction ............................................................................. 02 Protecting the environment ..................................................... 38 The heart of Kingston ......................................................................... 03 Reducing our environmental impact.................................................. 40 A message from our Chairman and Chief Executive Officer ..............05 Confronting climate risk ...................................................................... 44 Boston Scientific: 2022 at a glance ..................................................... 07 Enhancing product stewardship ......................................................... 46 Our ESG strategy and priorities .......................................................... 08 Creating value responsibly ...................................................... 47 2022 highlights.................................................................................... 10 Awards and recognition ...................................................................... 11 Maintaining governance that reflects our priorities and values .......48 Working with compliance, ethics and integrity ..................................50 Transforming care .................................................................... 12 Protecting human rights ..................................................................... 51 Innovating to meet more patient needs ............................................ 13 Keeping our supply chain resilient and reliable ................................. 52 Ensuring quality, health and safety .................................................... 18 Managing risk and global security ..................................................... 54 Improving patient outcomes through digital solutions .....................19 Ensuring cybersecurity and data privacy ........................................... 55 Investing in our people ............................................................ 20 Appendix ................................................................................. 56 Growing and engaging global talent ................................................. 21 Materiality ........................................................................................... 57 Fostering a diverse, equitable and inclusive workplace ....................26 Stakeholder engagement ................................................................... 58 Supporting our global workforce ....................................................... 29 Metrics summary ................................................................................ 59 Accelerating possibilities ......................................................... 31 Global Reporting Initiative (GRI) index ............................................... 68 Sustainability Accounting Standards Board (SASB) index .................75 Improving health equity and access .................................................. 32 Task Force on Climate-related Financial Disclosures (TCFD) index ....78 Supporting our communities ............................................................. 36 United Nations Sustainable Development Goals (SDGs) ...................81 4 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix A message from our Chairman and Chief Executive Officer At Boston Scientific, our purpose is advancing science for life — a purpose shared by our more than 45,000 employees around the world. This commitment is a result of a values-driven culture that aims to create a brighter and healthier future for patients, communities and our planet. Our 2022 environmental, social and governance results demonstrate high performance across our company. Our global teams navigated supply chain disruption, expanded our digital and operational capabilities, and fueled our pipeline by investing more than 10% of our sales into research 1 and development. We took action to address inequities in the workplace, communities and health care systems. Because a healthier planet leads to healthier people, we made steady progress toward our 2030 commitment 2 for carbon neutrality and received approval of our science-based emission reduction targets that will help guide our path to net-zero greenhouse gas emissions across our entire value chain by 2050. Most importantly, we worked together to help improve the lives of more than 33 million patients around the world. We have much more to do and will always raise the bar to hold ourselves accountable for progress. I know the culture we have built will continue to serve us well as we work together to transform lives around the world through innovative medical solutions. " At Boston Scientific, our commitment is a result of a Mike Mahoney values-driven culture that aims to create a brighter and Chairman and Chief Executive Officer, healthier future for patients, communities and our planet." Boston Scientific 1 Represents GAAP R&D expense as a percent of GAAP net sales per 2022 Annual Report on Form 10-K. 2 Inclusive of all manufacturing and key distribution sites only (scopes 1 and 2). 5 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Our work is guided by core values that define the Boston Scientific culture and empower our employees. Caring High performance We act with integrity and compassion We strive for high performance to support patients, customers, our to benefit our patients, clinicians communities and each other. and shareholders. Diversity Meaningful innovation We embrace diversity and value the We foster an environment of creativity to unique talents, ideas and experiences transform new ideas into breakthrough of our employees. services and solutions that create value for patients, customers and employees. Global collaboration Winning spirit We work collaboratively to pursue We adapt to change and act with speed, global opportunities that extend agility and accountability to further the reach of our medical solutions. improve patient care. 6 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Boston Scientific: 2022 at a glance 2022 net sales by region (dollars in millions) Boston Scientific transforms lives through innovative medical solutions that improve the health of patients around the world. U.S. $7,632 As a global medical technology leader for more than 40 years, EMEA (Europe, Middle East and Africa) $2,526 we advance science for life by providing a broad range of high- APAC (Asia-Pacific) $2,116 $12,682 performance solutions that address unmet patient needs and million reduce the cost of health care. LACA (Latin America and Canada) $469 To learn more about our category leadership strategy and $12,742 1 growth opportunities, visit our Investor Relations website. Other (60) Net Sales $12,682 2 1 Reflects sales reserves established for Italian government payback provisions not allocated to reportable segments. 2022 net sales by business (dollars in millions) Cardiovascular MedSurg Cardiology Peripheral Endoscopy Urology Neuromodulation Interventions $5,932 $1,899 $2,221 $1,773 $917 Cardiac Rhythm Electrophysiology Interventional Watchman Management Cardiology Therapies 2 In the first quarter of 2022, we reorganized our operational structure and have aggregated our core businesses, each of which generate revenues from the sale of medical devices, into two reportable segments comprised of MedSurg and Cardiovascular. Within the Cardiovascular segment, the newly formed Cardiology division represents the combined former Rhythm Management and Interventional Cardiology businesses. We have revised prior period amounts to conform to the current year presentation. 7 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Our ESG strategy and priorities Just as we believe in advancing science to change lives, we know A message from Meghan Scanlon, our work in health care comes with a responsibility to create senior vice president and president, positive change in the world around us. This commitment requires Urology and chair, ESG Executive environmental, social and governance (ESG) practices that reflect Steering Committee our values and make a difference in measurable ways. The Boston Scientific approach to ESG is aligned with the This report details our most recent ESG advances and United Nations Sustainable Development Goals (SDGs), and conveys our employees' deep commitment to these efforts. we prioritize material topics that enable us to have the greatest Our results demonstrate how ESG is embedded in our impact in the 130 countries where we operate. mindset, firmly rooted in our values and a critical driver of The employees of Boston Scientific are the collective force behind our business success. our commitment to advance ESG and deliver meaningful results. Caring for human life has always been the common bond This includes subject matter experts and key advisors from across that connects our mission, business strategy and ESG the business who work closely with our ESG team to determine priorities. We committed to the principles of ESG because how we measure and share progress. The vice president of it was the right thing to do, setting environmental targets ESG leads our global ESG vision and strategy and reports to the nearly 15 years ago and establishing diversity as a core chair of the ESG Executive Steering Committee, composed of value with aspirational goals early on. Today, we have nine Executive Committee members. The vice president of ESG an executive ESG governance structure and a global vice regularly updates our Board of Directors and its Nominating president of ESG who leads our efforts as we continually aim and Governance Committee, which oversee the company’s higher. Our focus on this work is shared by our stakeholders, ESG initiatives. including customers, and we hold ourselves accountable to them by publicly reporting progress toward our objectives. I look forward to working together to accelerate our advances in 2023 and beyond. 8 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Linking compensation to ESG performance The importance of our ESG efforts is reinforced by a companywide scorecard that is part of our annual employee bonus program and demonstrates our commitment to hold ourselves accountable to our goals in a measurable way. The ESG scorecard is weighted at 15% of our total bonus pool funding and equally divided among three ESG performance metrics. ESG scorecard metrics Performance metric category 2022 targets Increase representation of women in management roles globally Diversity, equity and inclusion (DE&I) and multicultural talent in management roles in the U.S., including Puerto Rico. Execute on 2022 enterprise action plans developed from results of Employee engagement 2021 Engagement Survey to drive future improvement, including reducing disparities, retaining talent and expanding enterprise change enablement resources. Progress against manufacturing and key distribution sites carbon “ With a strong tradition of our employees taking neutrality goal, specifically: Environmental • Increase renewable energy (electricity) percentage. ownership to advance ESG throughout the company, • Decrease carbon footprint. I see us achieving new levels of progress year after year — always working together and always aiming To learn more about our targets and performance, please see the company’s 2023 Proxy Statement. higher to deliver impact. The opportunity to join Boston Scientific at this point in the company’s trajectory is especially meaningful as we continue to Stakeholder engagement for ESG progress engage and share our progress with our stakeholders.” Our ESG strategy, priorities and practices are informed by conversations with diverse stakeholders inside and Kathryn Unger outside the company — locally, nationally and globally. In our collaborations and other business relationships, vice president, ESG we work with organizations that share our commitment to better understand and improve environmental, social and economic progress. 9 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix 2022 highlights Transforming Investing in Accelerating Protecting the Creating value care our people possibilities environment responsibly 80% $67 million 33+ million overall employee patients served engagement score donated to fund medical 76% ~37 million research, fellowships, renewable electricity2 42.6% education and charitable products delivered in 2022 $1.3+ billion organizations globally 1 supervisor and manager SBTi approval invested in R&D roles held by women (global) 99%+ 121,000+ net-zero and greenhouse gas of all employees have Zero findings women and people of color emission reduction targets completed Code of 22.6% identified in health action plans approved by the Science Based Conduct training resulting in action following supervisor and manager to advance equitable care in Targets initiative (SBTi) 325+ external audit days roles held by multicultural underserved U.S. communities employees (U.S./Puerto Rico) 1 Represents GAAP R&D expense per 2022 Annual Report on Form 10-K. 2 Purchased electricity matched with electricity from renewable sources, inclusive of all manufacturing and key distribution sites only. 10 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Awards and recognition Catalyst Award Disability Equality Index (DEI) Dow Jones Sustainability Premier recognition for advancing Best Places to Work for Index North America women and workplace equity Disability Inclusion 2022 2020-2022 2016-2022 Fast Company Forbes FORTUNE Best Workplaces for Innovators Best Employers for Diversity World’s Most Admired Companies 2020, 2022 2018-2022 2016-2023 Human Rights Newsweek Campaign (HRC) JUST Capital and CNBC’s Best Places to Work for America’s Most JUST Companies America’s Greatest LGBTQ+ Equality Workplaces for Diversity 2020-2022 2022 2015-2022 Visit our website for more information on our recent awards and recognitions. 11 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Transforming care We take on the most complex challenges in health care. Inspired by patients and the promise of innovation, we shape science 33+ million into solutions to help people live longer, patients served better lives. $1.3+ billion invested in R&D1 In this section: Zero findings • Innovating to meet more patient needs resulting in action following 325+ external audit days • Ensuring quality, health and safety • Improving patient outcomes through digital solutions 1 Represents GAAP R&D expense per 2022 Annual Report on Form 10-K. 12 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Overview and 2022 highlights Innovating to meet more Policies and related links With health care needs continuing to grow globally, making a patient needs difference for more people required our teams to challenge what How we approach quality was possible. Our people upheld rigorous quality processes, Our approach to innovation identifies new treatments for delivered market-leading solutions around the world and urgent health needs and enhancements that make our existing collaborated with early-stage innovators, partners in health products even better. Boston Scientific teams excel in this work equity and practitioners in the field to expand health care because for us, innovation is a mindset we share. Our best access. To further improve patient outcomes, we strengthened inventions come from the diverse perspectives of our people as our digital platforms and solutions to enhance health care they advance science to uncover potential solutions and then Why it matters professional education and increased the use of remote implement rigorous research and development (R&D). With our patient monitoring. strong pace of innovation, 33% of total company net sales in 2022 When patient outcomes improve came from products released over the past three years, inclusive because of our products, more of products new to Boston Scientific that were acquired through providers turn to us for quality strategic acquisitions. solutions. By finding new ways to 1 Represents GAAP R&D expense per 2022 Annual Report on Form 10-K. enhance those innovations and 2 Represents GAAP R&D expense as a percent of GAAP net sales per 2022 Annual Report expand access through digital on Form 10-K. advances, we help even more 2022 innovation results people lead healthier lives. 33+ million patients served $1.3+ billion invested in R&D1 10.4% 2 R&D spend as percent of sales 13 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Research and development (R&D) R&D Centers of Excellence: Building capability for new product development to advance innovation We design medical solutions by applying scientific rigor to our Marlborough, U.S. Clonmel, Ireland Shanghai, China most promising ideas. Our product development approach • Biological innovation • Metal additive • Electronic medical equipment addresses health care problems while adhering to stringent • Computational analysis business, technical and quality standards. As we monitor • Direct visualization product life cycles, our teams consider next-generation improvements as well as technologies that can help solve unmet clinical needs. Boston Scientific has 10 R&D Centers of Excellence for new product development, which are located across the United States, the European Union, Costa Rica, India and China, and give the company’s innovators a collaborative platform to investigate treatment approaches. In each center, engineers and scientists specialize in key areas of product performance to identify best practices and enhance patient care. A cross-divisional committee of senior leaders guides their work to ensure findings are shared across our full R&D pipeline. For example, in our battery design and manufacturing Center of Excellence, we design implantable batteries for neuromodulation and cardiac rhythm management devices. We manufacture these critical components internally to ensure quality and avoid supply issues. Heredia, Costa Rica Maple Grove, U.S. Arden Hills, U.S. Gurugram, India • Computational analysis • Catheter material and design • Battery design and manufacturing • Human factors and • Nitinol product design • Computational analysis industrial design • Pharmaceutical sciences • Electronic medical equipment 14 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Pre-clinical science and clinical trials meet all applicable laws and regulatory requirements, exceeding Science and comprehensive clinical processes underpin our many regulatory standards. We are routinely audited by internal advances. We conduct both in-vitro and in-vivo pre-clinical experts and government agencies, including the FDA, the U.S. research and evaluations of a medical device throughout the Department of Agriculture, and the Association for Assessment development process. Our biological scientists work closely and Accreditation of Laboratory Animal Care. with the engineering teams to improve each product, ensuring To read more about our clinical trial diversity, see 2022 clinical trial enrollment safety and efficacy. Before proceeding to clinical trials, our team Accelerating possibilities. of toxicologists and biocompatibility scientists conduct highly 80 regulated studies that generate critical safety data for submission active clinical trials with to global regulatory bodies. After generating comprehensive safety and efficacy data in clinical trials, we publicly report the 17,000+ outcomes. This work incorporates the industry's highest safety and quality specifications, external regulatory requirements and patients enrolled globally our strict standards of ethics and excellence. We also monitor ongoing device safety and efficacy in post-market clinical trials. It is critically important that clinical trials — and the researchers who lead them — reflect the patients helped by our technologies, especially people who have been historically underrepresented in medical studies. We continue to make progress with trial diversity through programs such as our ELEGANCE patient registry. When we use new materials in medical devices, the U.S. Food and Drug Administration (FDA) and global regulatory bodies require that extensive evidence of efficacy and safety be demonstrated in animals before we proceed to human clinical trials. Boston Scientific is committed to the humane care and treatment of laboratory animals, and whenever it is feasible and scientifically valid, we use alternative testing. Our facilities 15 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Patient-focused investments and acquisitions Innovation at Boston Scientific ranges from discovering new FARAPULSE acquisition: treatments to extending the reach of solutions that are making Improving care with emerging technology a significant difference in patients' quality of life. In a dynamic health care landscape, life-changing ideas can come from Millions of patients around the world are affected by atrial fibrillation (AF), companies big and small. Through our venture portfolio and a serious medical condition that requires treatment to prevent stroke. strategic acquisitions, we invest in early-stage and commercial AF is often treated through a procedure called cardiac ablation, which companies to identify technologies that expand our ability uses heat or cold to destroy the heart tissue causing rapid and irregular to address complicated diseases and conditions. heartbeats, but it can put surrounding tissue at risk. Our search for various Learn more about Boston Scientific acquisitions on our website. technology led us to acquire Farapulse, a company we've been investing in since 2014. Farapulse makes an alternative treatment known as pulsed field ablation (PFA), which uses tissue-selective technology that allows physicians to block abnormal heartbeats with precision and reduce the risk of complications associated with conventional ablation procedures. Boston Scientific acquired Farapulse in 2021 and last year successfully completed enrollment for an investigational device exemption (IDE) clinical trial for the Farapulse™ PFA Systems1 in the United States. The trial will compare the Farapulse™ PFA System with the standard-of-care ablation for the treatment of paroxysmal, or intermittent, AF. “ At Boston Scientific, we have a responsibility to patients and their providers to achieve the best possible outcomes in care. We are investing in emerging technology like PFA to do just that.” Kenneth Stein, MD senior vice president and global chief medical officer 1 CAUTION. Investigative device. The Farapulse Pulsed Field Ablation System is limited by U.S. law to investigative use only and not available for sale. 16 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Joining forces for science and patients with using our devices, then uses clinical outcomes and real-world Our patient-centered focus calls for constant collaboration. data to demonstrate the value of our products. They share this We work with academic institutions and other private and evidence with health care payers and providers, advocating for public organizations around the world to pursue emerging payer policies that improve market access for patients. technologies and improve patient treatments and outcomes. Our HEMA team published 12 peer-reviewed health economics In 2022, as a result of our collaboration with IBM Research, manuscripts and 27 peer-reviewed abstracts to contribute we presented data from two innovative, multi-site clinical to the global evidence base for payers and other purchasing studies on the individual experience of chronic pain, which decision-makers. In addition, our HEMA specialists accomplished applied artificial intelligence and other analytic techniques the following: on biomarkers and data collected through daily questionnaires, • Access in Japan. Received reimbursement approval smartwatches and physician feedback. By having access to from Japan's Central Social Insurance Medical Counsel actionable insights, physicians are enabled to intervene with for Rezūm™ Water Vapor Therapy, a minimally invasive more personalized treatment options for patients living with treatment that aims to improve quality of life for patients chronic pain. with benign prostatic hyperplasia, providing access to the We are a lead partner in the Israel-based MEDX Xelerator country's aging population. that targets vascular care innovations as well as in the Mayo • Access in Saudi Arabia. Secured funding for The Rezūm™ Clinic Motion Medical accelerator, which focuses on minimally system through the first-ever MedTech industry health invasive treatment for conditions that impede quality and technology assessment in Saudi Arabia, potentially facilitating longevity of life. Boston Scientific is also a founding sponsor access for up to 3,500 additional patients. of the gBETA MedTech Accelerator for early-stage medical, biotech and diagnostic companies. Our product experts • Access in the U.S. Utilized data from the IMPERIAL randomized participated as mentors for gBETA’s fall 2022 Black Founders controlled trial to complete a cost-effectiveness analysis program, which offered innovation grants and professional showing that Eluvia™ Drug-Eluting Vascular Stent System is development opportunities to finalists. more effective and less costly for peripheral artery disease (PAD) treatment from a Medicare perspective than other treatments Addressing health economics to improve for PAD. patient access • Access in India. Negotiated coverage of peripheral intervention If a health care provider believes their patient will benefit from technologies to treat peripheral vascular disease under India’s a device or procedure, we want it to be accessible so the patient national public health insurance fund, which provides health receives the care they need. Our Health Economics and Market care access to the country’s most vulnerable families. Access (HEMA) team studies the economic factors associated 17 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix 4 Ensuring quality, Best quality results health and safety Metric 2022 Results 2023 Focus areas Health care providers and their patients count on us to use life-changing science to develop medical devices they can Continue to identify preventative trust. All Boston Scientific employees play a role in continually Culture 18% of corrective and CAPA opportunities raising the bar for product quality and patient safety, and every Establishing a preventative preventative actions (CAPAs) Promote improved product performance quality culture considered preventative through increased employee connection manufacturing and distribution site relies on a shared set of to patient experience metrics to ensure that the highest standards are met throughout our operations. This unified, patient-centric framework enables us to be vigilant and act swiftly in the rare event issues arise. Identify savings through quality 4 Agility $42 million savings systems improvements Delivering quality globally: Best Removing complexity, through quality Expand use of technology across quality We follow a global design process that includes a series of improving systems systems improvements processes, with focus on predictive controls to ensure the safety and quality of our emerging analytics and preventive quality technologies as well as our existing products. Our teams take a comprehensive approach that incorporates clinical needs, risk management and usability engineering. We assess the Performance Five year complaint rate components and materials used in every device for quality, trend: 36.5% overall Continuous reduction in overall durability, availability, safety and efficacy — as well as to evaluate Driving continuous reduction since 2018 complaint rate device performance in every phase of its life cycle. Throughout improvement in 97% effectiveness in CAPA product performance, metrics and 99% on-time Maintain quality performance excellence the product development process, our focus is always on the patient experience CAPA approvals physicians who will use our products to provide care and on the patients who will benefit from them. 2022 recalls: Compliance • Class I recalls: 0 Continue implementation of EU MDR Adhering to Global Quality Zero findings resulting in and product transitions to EU MDR • Class II recalls: 12 System compliance excellence action following more than requirements throughout 2023 and executing EU MDR Quality 325 external audit days Management System (QMS) Zero findings resulting in action 4, see how we approach quality. For more detail on Best 18 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Improving patient outcomes through digital solutions Preventice Physician Notifications: In 2022, we strengthened the digital infrastructure that supports Digital solutions for critical care our business and increased our use of digital solutions to Cardiovascular disease is the leading cause of mortality improve patient outcomes. This work included expanding health globally, accounting for nearly 17.9 million annual deaths care professionals education and engagement through remote and highlighting the need for early detection and cardiac platforms. Approximately 38,000 health care professionals management. Our teams developed Preventice Physician in more than 130 countries accessed our growing EDUCARE Notifications, a pilot-phase mobile app that enables platform for on-demand medical education, case studies, physicians to access data from a device worn by patients procedural videos and interactive training tools. at risk of cardiac arrhythmias. Through the app, clinicians To collaborate with and serve providers, our teams continued can immediately review patient event data, intervene to use remote technologies. We made increasing use of remote remotely and make critical care decisions, accelerating patient monitoring (RPM) to help physicians around the world medical response time and reducing staff workload. observe the progression of chronic diseases. We also improved To read more about how we protect data and patient privacy, features of the MyLATITUDE™ Patient App, including an opt-in see Creating value responsibly. feature that allows patients and caregivers to share feedback about their experience with the app, so we can continue to improve it. 19 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Investing in our people A shared sense of purpose unites our employees as we work to make a difference for patients around the world. 80% overall employee engagement score In this section: 42.6% • Growing and engaging global talent supervisor and manager roles held by women (global) • Fostering a diverse, equitable and inclusive workplace 22.6% • Supporting our global workforce supervisor and manager roles held by multicultural employees (U.S./Puerto Rico) 20 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Overview and 2022 highlights Growing and engaging global talent Our more than 45,000 Boston Scientific employees support our Our global community is built around the talent and experience Policies and related links reach to 130 countries and work as one team to take on health of our people. We listen to their ideas and aspirations, turning Equal Employment Opportunity Policy care’s toughest challenges. Our capacity for innovation, coupled them into development opportunities that help our employees How we approach talent development with a deep caring for human life, underpins everything we do. advance in their careers. Environment, Health & Safety Policy A clear focus on equity and inclusion fosters diverse perspectives, Read more on our approach to talent development. leading us to new and better solutions for patients. As our BenefitsConnect global benefits actions reinforced the company’s core values and equitable Recruiting talent for now and the future opportunities for growth, we welcomed new talent to our business while advancing more of our people as innovators The way we approach talent attraction advances diversity and builds and leaders. capabilities to fuel innovation. In 2022, we invested in technology to enhance our talent acquisition practices and initiated partnerships with specialized recruiting organizations in the United States, Ireland, Why it matters India and other emerging markets to strengthen and expand access to diverse talent. We believe in the talent of our Boston Scientific global teams also strengthened collaborations employees and invest in a culture with universities and professional organizations. In 2022, we rich in diversity, equity and inclusion 2022 growth and promotions worked with more than 80 colleges and universities around the (DE&I) that makes breakthroughs world. In Japan, we added a new job information site to promote possible. The progress we achieve opportunities, enabling us to ramp up hiring for sales and other together leads to promising careers, 75% positions. In India, we collaborated with campus groups to connect healthier patient lives, a strong 10,300+ of open positions at with recent and future graduates qualified for roles in marketing, business for our stakeholders and new hires director level and above technology, finance and HR. In the United States, we expanded our greater impact in our communities. filled from within program aimed at developing professional Black sales and early- career science, technology, engineering and math (STEM) talent through mentoring, career counseling, networking and internship opportunities that support a successful career in the medical device industry. 21 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Development for all employees Our development approach is based on the premise that all Redefining the performance review employees can meet their career goals here, regardless of where they are in their professional development. We integrate learning The company’s continuous performance and feedback into the flow of work so people can develop at their management (CPM) framework redefines the own pace, in their own ways. In 2022, the company introduced performance review as an ongoing process ALIGNMENT more training for front-line leaders, expanded our employee rather than a one-time event. Employees listening strategies and provided more options for employees to have continuous and candid conversations personalize their development experiences through on-demand with their managers about work planning learning pathways. and expectations as well as performance and career paths. This approach gives GOAL SETTING CONTINUOUS RECOGNITION & Enhancing development opportunities. The company’s CONVERSATIONS DEVELOPMENT leaders valuable insights and helps facilitate development initiatives offer a variety of pathways that give employee development. In 2022, we further our employees choices for how they incorporate learning enhanced our systems to enable leaders and into their everyday jobs and apply what they learn to their employees to track business and development FEEDBACK COACHING current responsibilities. We offer more than 150 professional goals, capture coaching and peer feedback, and technical courses, including on-the-job training, as well as store and retrieve documents skills-based education and programs for employees and resources. who have leadership potential. “ Continuous performance management is about creating and supporting a feedback-rich culture where people are comfortable having holistic, candid conversations about their career aspirations and performance.” Tokunboh Osinowo organizational development manager, Enterprise Talent Management 22 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Enhancing leadership impact Our managers play a critical role in meeting business objectives Developing leaders and building the next generation of leaders. We count on through ALDP these people leaders to coach employees, understand their career aspirations and champion inclusive ways of working. Facilitated by Executive In 2022, we increased development options for those seeking Committee members, senior to strengthen their leadership skills and grow their careers: leaders and external experts, • Manager Pathways. Our on-demand manager pathway ALDP strengthens capabilities courses help experienced managers strengthen their in financial acumen, business leadership capacity across a range of skill sets, including strategy and leadership. We listening, coaching and development. In 2022, we added added a pro bono volunteer a course for production supervisors and created new offerings component to the program to on agile leadership and how to manage hybrid teams. reinforce our values and the company's commitment to • Accelerated Leadership Development Program (ALDP). give back to our communities. Senior people leaders nominated for ALDP complete an eight-month curriculum to prepare them for more complex, global roles. In 2022, we added new topics to the program, including leading with agility and supporting employee well-being. Boston Scientific also invested in opportunities for emerging leaders. At the regional level, we launched WE Lead (Women Empowered to Lead), a six-month curriculum for women beginning their careers either as individual contributors or “ The most meaningful part of ALDP is the opportunity to develop a range of skills first-time managers. Our teams in Asia Pacific (APAC), Europe, and competencies essential for effective leadership. The program gave me a Middle East and Africa (EMEA) and Latin America collaborated better understanding of my strengths and weaknesses as well as my leadership to expand our Emerging Market Talent Exchange, a 90-day style and how that impacts others.” initiative that broadens the global perspectives of leaders. Our APAC and EMEA teams offer an 18-month Rising Leaders Shrikant Ramachandran program for high-potential people managers. chief information officer 23 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix GROW goes global Our development program GROW — Give Real Opportunities for Valuable Work Experience — was inspired by conversations with employees who build our medical devices and are interested in furthering their careers in business roles. In 2022, we launched 16 additional GROW cohorts and established a framework to guide the initiative’s global implementation. By year's end, nearly 200 product builders and technicians had graduated from the program at 10 Boston Scientific sites, including Heredia, Costa Rica, Cork, Ireland, Penang, Malaysia and several cities in the United States. We offer three GROW tracks so participants can choose the option that best matches their objectives. Each curriculum enlists people leaders to mentor participants through classroom and hands-on training sessions. Based on feedback and results to date, the program is helping us develop and promote direct labor and supply chain employees into new roles. “ This was one of the best experiences I have had during my time here! I would recommend the GROW program to anyone in our supply chain network who is interested in advancing their career.” Jenn Rivas supervisor, Distribution Operations Management 24 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Enhancing talent review and succession processes Employee engagement Our development efforts are aimed at matching our employees' Boston Scientific is a place where people speak up, ask questions 2022 employee engagement capabilities and goals with business needs. We continue to and make a difference. Our culture is built on inclusion and a improve talent processes for those with the potential and desire collective belief that everyone’s ideas, ambitions and careers survey results to advance at Boston Scientific. To ensure our leadership reflects matter. We use a comprehensive listening strategy to elicit the diversity of our customers and employees, we introduced feedback from people and make improvements based on their additional training for managing bias that we will deploy globally input. Having multiple communication and feedback channels 80% in 2023 as part of the talent review process. To support these helps our people leaders better manage their teams. practices, in 2022 we enhanced our technology to identify overall employee critical roles and high potential talent across the organization. Employee engagement pulse survey engagement score We are leveraging this technology as we nominate leaders With a 76% response rate, nearly 32,500 employees participated for key development programs and build a more robust in our companywide, voluntary engagement pulse survey in succession bench. 2022. Their responses produced a score of 80% or higher across Our regional, functional and divisional leaders meet regularly four key areas. We are using these results to help support 85% to assess their teams’ performances and development plans. retention, enhance leadership training and expand resources extremely satisfied The Executive Committee conducts quarterly and annual talent where people need them. Employee engagement is also a key working at component of our environmental, social and governance (ESG) Boston Scientific reviews to gain insights about our succession pipeline, and the scorecard that is part of our annual employee bonus program. board and its Nominating and Governance Committee review CEO succession planning annually. Our Executive Committee Learn more about our ESG scorecard in our 2023 Proxy Statement. succession is also reviewed annually by the Board of Directors. SPARK survey 85% Read more about our approach to talent development. Our SPARK survey gathers feedback about our people leaders would recommend from their direct reports. The digital questionnaire, which is Boston Scientific as an employer available in 14 languages, asks employees to rate their managers on leadership attributes. The results help people leaders reflect on their strengths and areas for development and serve as a basis for productive conversations with team members. 88% In 2022, more than 31,000 employees were invited to evaluate approximately 7,000 leaders. We had a response rate of 76%, are proud to work and 85% of people leaders received a feedback report. at Boston Scientific 25 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Fostering a diverse, equitable and inclusive workplace Progress with our objectives At Boston Scientific, we share an understanding that DE&I helps In 2022, we continued our focus on our 3Up by 2023 As we finalize our new global career framework, our create a workplace where every employee feels valued and free to objectives to increase opportunities for representation 2023 DE&I goals will reflect a broadened focus on collaborate in a way that results in our best ideas and innovations. of women and multicultural talent. While we fell increasing the representation of women globally and When all our employees grow and advance, we increase our ability slightly short of our goals in 2022, which was multicultural talent in the U.S., including Puerto Rico, to help make life better for patients and communities everywhere. reflected in our ESG scorecard, we will continue at all levels of the organization. to hold ourselves accountable and be transparent To learn more about our DE&I aspirational goals A new global career framework for everyone on the results of our work. and progress, please visit our DE&I website. We embrace DE&I as a business imperative, and we hold ourselves More information about our ESG scorecard can accountable by setting measurable, publicly reported goals. Our be found in our 2023 Proxy Statement. longstanding commitment to inclusive practices has taught us that every goal achieved is an opportunity to identify ways to do more. 2022 3Up progress In 2022, we made significant progress in developing a global career framework that expands our focus on equitable career ( ) ( ) progression opportunities for everyone at Boston Scientific. Women Global Multicultural talent U.S./Puerto Rico This work is the result of a multi-year project that grew Supervisor and manager level Supervisor and manager level out of our global employee engagement survey and other 3Up goal: 43% 3Up goal: 23% listening initiatives. 42.6% 22.6% Our new global career framework is based on the premise that 41.1% 21.4% 21.6% everyone in every aspect of our business should have a roadmap 20.8% that illustrates where and how they can advance at Boston 39.9% 19.6% Scientific. It will adjust how we approach job positions and will 38.4% provide clear career progression opportunities for all employees, 38.1% both within their area of expertise and beyond. A consistent and transparent global job structure can also contribute to greater organizational effectiveness and high performance. After finalizing the framework in 2023, we expect to reflect these changes in our 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 long-term DE&I aspirational goals. 26 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Reinforcing equitable opportunities for growth observed that 63% of ADT graduates have moved to different We continue to scale up initiatives that support equitable career roles or been promoted, and 86% of those promoted were opportunities for everyone in our company. All employees are appointed to vice president or director-level roles. required to complete unconscious bias training, now available Another cohort of leaders completed our Diverse Leaders in 18 languages. To equip employees with additional skills to lead of Tomorrow (DLT) development course in 2022. Individuals inclusively and address systemic racism, bias and prejudice, we nominated for DLT expand their professional networks and offer Anti-Racism & Cultural History (ARCH) training, a program develop more skills for navigating their personal and professional required for people leaders and recommended for individual growth. We also marked the 11th year of our EXCELerate contributors. In 2022, we introduced ARCH in the EMEA region, opportunity for high-potential women leaders. The multi-year where our DE&I efforts were recognized for the first time by the program matches participants with executive sponsors who “ Creating a better world for my Financial Times Leader in Diversity Index. We are now expanding serve as career mentors and advocates. Since 2013, we have children is a very high priority. ARCH training to include additional regions and levels in observed that 51% of EXCELerate graduates have advanced It’s really important that I am our organization. to more senior roles in the company. actively involved in creating Every people leader at Boston Scientific is expected to develop To learn more about our partnerships, visit our DE&I website. change, and I’m part of and implement a DE&I plan and follow our diverse slate a company that understands guidelines for recruiting manager and above roles. When hiring this. For me, that’s really living or promoting senior leaders, we consider how candidates have the dream.” demonstrated inclusive behaviors. Dr. Jeri’Ann Hiller Advancing pathways for diverse talent growth EXCELerate graduate and manager, To solve health care’s biggest challenges, we need people with Health Equity diverse perspectives from all cultures, backgrounds and identities who think beyond the status quo. One of our top priorities is ensuring that high-performing talent across all dimensions of diversity feel they belong and have pathways for advancement. The Boston Scientific Accelerated Diverse Talent (ADT) initiative supports the development of women and multicultural talent with the potential for advancing to more senior leadership roles. Over the past two years, we have 27 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Empowering employees through employee The EmpowHER chapter in Singapore spreads the word about heart disease resource groups (ERGs) during the company's annual Heart Health Day event. Our DE&I efforts are designed, improved upon and promoted with input from Boston Scientific ERGs. These employee-led, company- sponsored groups are organized around dimensions of diversity such as gender identity, race, ethnicity, veteran status, life stage and sexual orientation. Each group contributes to the direction of our company and is supported by an executive sponsor and our Global Council for Inclusion (GCI). The GCI is co-chaired by our chief financial officer and executive vice president of Human Resources “ In a world where women continue to face and includes our chairman and CEO, the Executive Committee, barriers in their careers, I’m proud of the DE&I team members and all ERG global leads. work we are doing through EmpowHER In 2022, we welcomed Fostering Indigenous Resources & to advocate for the advancement of Empowerment (FIRE), our newest ERG. FIRE launched with women, foster valuable connections, three chapters organized around its mission to raise a collective and provide career development and voice for advocacy and representation of Indigenous employees leadership opportunities.” and cultures at Boston Scientific. Bhavna Sapra senior manager marketing, Urology and APAC chapter lead EmpowHER ERG ERGs: the heart of our DE&I strategy 122 Boston Scientific was honored with a 2022 10 9,000+ Catalyst Award, a premier recognition for ERG chapters globally, advancing women and workplace equity. global ERGs with 49 outside the U.S. employees involved and 15 virtual chapters 28 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Supporting our global workforce can include bonus pay, sales incentives, long-term incentive stock awards, and on-the-spot recognition awards for The well-being, health and safety of our employees and their highly successful projects and breakthrough performance. families is a top priority at Boston Scientific. The company also offers an employee stock purchase plan and country-specific retirement programs that include matching Meeting needs and adding value: company contributions where country tax law permits. Employee benefits and well-being Compensating people equally for equal work is essential to our 1 inclusive culture. Our most recent assessment reported 99% or Boston Scientific offers benefits programs that support the greater pay equity for employees across gender globally as well health and well-being of our people while providing flexibility as multicultural talent in the United States, including Puerto Rico. to meet individual needs and expectations. In applicable Boston Scientific compensation experts regularly benchmark " The well-being of our countries, our offerings include paid time off, telehealth services, salaries and conduct companywide and external parity audits. employees is a priority childcare and parental care benefits, mental health services, We contract with an independent third party to assess pay that reflects our values and college and financial planning, fertility and surrogacy benefits, equity for all positions using regression analysis. This data-driven inclusive culture. We are a breast milk shipping service, domestic partner benefits, tuition approach controls for variables that influence compensation such working to embed well-being support, a meal-planning service and sabbaticals for employees as job position, tenure, years of experience and location. We use deeper into our policies and with more than seven years of service. the results to identify any potential pay disparities and address programs to ensure every In 2022, we continued expanding our global benefit programs them accordingly. Equal pay alone is not enough. We continue individual has the support and services. For example, we increased telehealth and domestic to educate and train our people, update policies and expand they need to be at their best.” partner health care coverage for employees in Ireland, extended benefits to address any bias, increase opportunities for greater maternity and paternity leave in Japan and significantly diversity, and foster a culture where all employees feel valued Ebony Travis broadened well-being benefits in Costa Rica, including and included. director, a significant increase in coverage for mental health services. Global Well-being and HR Policy To learn more about our global benefit programs and services, visit BenefitsConnect. Compensation: Our approach and practices We create competitive programs that are performance-based, that align the long and short-term interests of employees with those of the company, and are equitable and cost effective. We offer an annualized base as well as a variable component to employee compensation, both in accordance with job responsibilities and local labor standards. Variable components 1 Figure from 2021 results. Analysis is completed every other year. 29 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Keeping people healthy and safe Boston Scientific closely monitors and manages employee Investing in global occupational health health and safety at all offices and facilities in accordance with the Boston Scientific Environment, Health & Safety Policy. In 2022, we appointed a global occupational health manager to We measure occupational health and safety for our employees connect our global network of occupational health nurses and ensure through Total Recordable Incident Rate (TRIR) targets that are that our health, wellness and education resources meet the needs reviewed monthly by our Employee Health and Safety (EHS) of our workforce now and into the future. Our continued focus on Operations Council. In 2022, we recorded our best performance occupational health was once again recognized by the American to date with a TRIR of 0.28, down from 0.4 in 2021. We are on Board for Occupational Health Nurses, who named Boston Scientific track to meet our 2030 goal of 0.25 TRIR per 100 employees. their 2022 employer of the year. Our teams achieved these results through deeper incident In Ireland, where we have more than 6,000 employees, analysis, more employee engagement with occupational health Boston Scientific in Cork achieved the KeepWell Mark from IBEC, nurses and a new safety performance recognition program. the nation’s largest business and human resources organization. The company also doubled the number of manufacturing The accreditation is based on key areas of workplace well-being and distribution sites — from four sites to eight — that meet such as leadership, mental health, absence management, nutrition International Organization for Standardization (ISO) requirements and physical activity. Our team in Galway, Ireland was reaccredited for ISO 45001:2018 Occupational Health and Safety certifications. for this distinction and received a recognition award for its occupational health practices. “ We keep our employees healthy and safe by promoting health and wellness programs, and by protecting them from work-related injuries and environmental hazards. If employees are sick or injured, we work closely Total Recordable Incident Rate (TRIR) with them while they heal to ensure their safe return to work. As a nurse with more than 25 years of experience, I am passionate about my work.” 2022: 2030 goal: Darlene Patterson 0.28 TRIR 0.25 TRIR global manager, (0.28 injuries per 100 employees) (0.25 injuries per 100 employees) Occupational Health 30 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Accelerating possibilities Our work to improve patient outcomes includes improving access to care. When people have the health care resources they $67 million need, they can lead their best possible lives. donated to fund medical research, fellowships, education and charitable organizations globally In this section: 121,000+ • Improving health equity and access women and people of color identified in health action plans • Supporting our communities to advance equitable care in underserved U.S. communities 31 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Policies and related links Boston Scientific Foundation Boston Scientific Foundation Europe Close the Gap — health equity program Community engagement Why it matters All people deserve access to quality care and to fully understand their health needs. Health inequities are rooted in a range of social and economic factors, and our work to confront disparities requires breaking down systemic barriers Overview and 2022 highlights Improving health equity and access to care. When we increase health awareness, close care gaps and Our commitment to ESG informs our outreach and community Our commitment to improving patient outcomes inspires us to educate providers about their role engagement around the world. In 2022, our teams increased their address global health disparities. We collaborate with partners in inclusive access, we contribute collaboration with nongovernmental organizations, nonprofits, to expand community education, increase health care provider to better futures for people, their health care advocates and providers to address health inequities outreach and break down barriers to care in underrepresented families and communities. in underrepresented populations. We launched initiatives and communities. Creating opportunities for access is key to ensuring expanded existing efforts to reduce disparities in care and that our medical solutions can make a meaningful difference to provide science, technology, engineering and math (STEM) the people who need them. education and volunteer support in underserved communities. 32 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Closing the gap in care and outcomes Increasing diversity in medical research We know that health inequities lead to poorer patient outcomes, Diversity in medical research is essential to ensuring everyone and our Close the Gap team works to address them through a who needs care can benefit from treatments and therapies. comprehensive health equity strategy. In the United States, the In 2022, the U.S. Food and Drug Administration (FDA) released team works closely with providers and organizations in local draft guidelines for diversity in clinical trials, affirming the ELEGANCE inclusion milestones communities to raise awareness about racial and gender biases need for inclusive representation. Beginning in 2014 with the that contribute to disparities in heart and vascular care and also Platinum Diversity Trial, our longstanding work to increase to advocate for inclusive clinical trial representation. clinical trial diversity now includes the ELEGANCE patient Enrollment 2022 enrollment registry and post-market study for patients diagnosed with goal: progress: Partnering with providers. Disease prevalence data can help peripheral artery disease (PAD), which disproportionately affects providers improve their outreach to underserved patients. Black men and women. Through 2022, we have surpassed our 40%+ 43% In 2022, at the request of community providers, the Close the ELEGANCE diversity goal. To date, there are 43% women and women women Gap team generated local U.S. disparity index data on disease 47% underrepresented minorities enrolled in the registry. prevalence and treatment inequities. We identified more than 40%+ 47% 121,000 women and people of color who may not have access to equitable heart and vascular care, and collaborated with underrepresented underrepresented providers to create health action plans that address disparities minorities minorities and promote equity in underserved communities. Raising awareness. To address health inequities, the Close the Gap team held health education summits on heart and vascular disease in Atlanta, Georgia and Charlotte, North Carolina in collaboration with Black Health Matters and Omega Psi Phi Fraternity Inc., one of the oldest U.S. historically Black fraternities. Participants reported a 99% increase in their familiarity with cardiovascular disease risk factors and treatment options after the sessions. 33 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Promoting health access around the globe Our teams also collaborate to advance health equity around Bringing health camps the world. For example, we supported the Children's HeartLink to India Center of Excellence Collaborative, which convenes pediatric cardiac health professionals from hospitals in Brazil, China, In India, our team organized health India and Malaysia to exchange knowledge, including with camps in communities that lack other professionals in underserved communities. This new access to affordable health care. initiative improves standards of care and will increase equitable Working in partnership with local access to cardiac health care among children. health professionals, we hosted camps at schools in Pune and Gurgaon to provide dental, vision and general physical check-ups to more than 1,000 students. Since 2016, our SAIL (South Asians in Leadership) ERG has led similar efforts throughout the country, offering annual health screenings and distributing health care supplies. Partners in the Children’s HeartLink Center of Excellence Collaborative include Hospital da Criança e Maternidade in Brazil, West China Hospital, Amrita Institute of Medical Sciences in India and Institut Jantung Negara, National Heart Institut in Malaysia. 34 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Combating racism in the United States the Family Van has reduced health disparities in Boston through Our commitment to upholding our values includes confronting curbside screenings, health coaching, and referrals for health racism and intolerance. Our multi-year, $3.5 million strategy to and social services. combat racism is focused on deepening community awareness of The company also continued our commitment to CEO Action for racism and its impact, advocating for policies and practices that Diversity & Inclusion and supported the CEO Action for Racial support equity and inclusion, and empowering key partners to Equity Fellowship, an initiative to advance policy change at the take action. local, state and national levels. In 2022, we funded a mobile health clinic for people in For more on the work we are doing to advance equity and inclusion underserved communities in the Boston area. For 30 years, in our workplace, see Investing in our people. “ As a CEO Action for Racial Equity fellow, I helped build a framework to guide policymakers to consider social determinants of health — where a person is born, lives and works — to address racial health inequities. I am excited to bring my passion for this work to the company's sustainability efforts.” Marina Vornle von Haagenfels senior project manager, Environmental, Social and Governance The Family Van mobile health clinic in Boston. 35 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Supporting our communities has also resulted in nearly 35,000 health care screenings that have led to chronic disease diagnoses for more than As a leader in health care, we make it a priority to help create 6,300 people. Partnering for humanitarian healthier communities. In 2022, the company donated more relief for Ukraine than $67 million to fund medical research, fellowships, education Advancing education: STEM outreach When millions of Ukrainians were and charitable organizations globally. In the United States, STEM education is a proven path to developing more diversity forced to flee their country or were the Boston Scientific Foundation awarded over $2 million in the next generation of medical technology innovators. internally displaced, we worked in scholarships and grants. And in more than 50 countries, In 2022, 17 employee STEM teams engaged with more than with longstanding partner Project Boston Scientific employees led initiatives to advance 70,000 students around the world through hands-on activities, HOPE to help. The Boston Scientific global health, STEM education and community well-being. tutoring, competitions and career guidance. As part of a Boston Foundation donated $1 million To learn more about our charitable giving, visit the Boston Scientific Scientific pilot program that awarded community engagement for refugee assistance in Poland, Foundation website. grants based on employee proposals, our team in São Paolo, where we have 240 employees Brazil led a day of mentoring and STEM challenges at a and where more than two million Advancing health: local school. Ukrainians sought refuge. Funds Signature Health Grant Program were used to transport medicines into Ukraine, procure supplies for a The World Health Organization projects a shortfall of 10 million neonatal hospital in Kyiv and provide health workers by 2030, mostly in low- and lower-middle resources for a strained Polish health income countries. To address this shortage, we collaborate with care system. The contributions organizations that train health care workers to conduct disease from our Ukraine aid employee screenings in vulnerable communities. In 2022, we expanded our matching gifts campaign, Signature Health Grant Program with a U.S.-based initiative to Boston Scientific Foundation Europe increase the number of trained health care workers and improve and our European employees totaled the quality and availability of chronic disease screenings. The more than $500,000. initiative provided more than $500,000 in grants to Project HOPE, the American Cancer Society, Partners in Health, the American Heart Association and Global Access to Cancer Care Foundation. Since we developed our community health strategy in 2016, we have helped train 7,300 community health professionals in six countries through various initiatives. Our community outreach Our São Paulo team provides STEM programming for local students. 36 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Advancing community: Doing our part around the world Everywhere our people live and work, they contribute to their communities. In 2022, Boston Scientific and employees contributed nearly $2 million through the employee matching gifts program, and employees volunteered more than 31,000 hours. We also piloted a pro bono volunteer program in Ireland and the U.S. so employees can contribute in ways that go beyond traditional volunteering, helping local nonprofits expand their networks through new partnerships. Singapore Week of Caring: More trees in Making a Costa Rica Our team packed meals for Latin America: beach accessible: people in need, upcycled We marked National Tree Our LEAD (Leadership, resources and refurbished Week by planting trees Education and Allies for IT equipment. in local neighborhoods Disabilities) ERG and a to protect public health local surf team renovated and the environment. Herradura Beach to improve access for people with reduced mobility. Mandela Day in Refugee resources Helping families South Africa: in Israel: in the Netherlands: We partnered with Food Boston Scientific employees Our local team contributed Forward South Africa to in our Haifa, Israel site 100+ hours and $6,000+ provide 1.5 million meals volunteered with the African to Ronald McDonald for vulnerable families. Refugee Development Center Kindervallei, which houses to offer aid and medical families with children care for African refugees undergoing intensive in northern Israel. medical care. United States Connecting with COVID-19 action in India: volunteer week: neighbors in Türkiye: When COVID-19 surged again, More than 650 volunteers in Our Istanbul team spent time we collaborated with SEWA Minnesota supported local with elders at a local care International to distribute organizations with projects facility and built a new STEM health kits and supplies ranging from cleaning up workspace for students in an donated by our Shanghai, outdoor spaces to preparing underserved neighborhood. China team. meals for critically ill people. 37 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Protecting the environment For healthy lives, we need a healthy planet. Our commitment to better patient outcomes includes confronting climate 76% change and protecting the environment. renewable electricity1 SBTi approval In this section: net-zero and greenhouse gas emission reduction targets • Reducing our environmental impact approved by the Science Based Targets initiative (SBTi) • Confronting climate risk • Enhancing product stewardship 1 Purchased electricity matched with electricity from renewable sources, inclusive of all manufacturing and key distribution sites only. 38 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Overview and 2022 highlights our science-based net-zero target, making us one of the first in our sector to do so. This approval will help guide us on a path Policies and related links We took action to protect the environment throughout our toward net-zero greenhouse gas (GHG) emissions across our entire business and value chain. Our teams worked to mitigate climate value chain by 2050. Through collaborations and partnerships Global Energy Management risks while setting ambitious new targets for further reducing our with suppliers and customers, we will work together to advance System Policy environmental impact. We achieved 76% renewable electricity1 meaningful change for a healthier planet. Environment, Health & Safety Policy 2 and remained on track for carbon neutrality (scope 1 and 2) in Environmental Data Verification all our manufacturing and key distribution sites by 2030. In 2022, 1 Purchased electricity matched with electricity from renewable sources, inclusive of all the Science Based Targets initiative (SBTi), the predominant manufacturing and key distribution sites only. 2 Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions third-party, net-zero target assessment organization, approved are indirect emissions from the generation of purchased energy. Why it matters When we take action to protect the planet and confront climate change, we reduce our environmental impact, improve the sustainability of our supply chain and help to mitigate climate risks to the business. As a result of our activity, we contribute to healthier patients and communities — and more successful economies around the world. 39 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Reducing our environmental impact In 2022, we made measurable progress in addressing climate change. Boston Scientific Teams across the company worked to keep us on course to meet our global commitments met a milestone when our targets for net-zero GHG emissions by 2050 were approved by the for net-zero emissions, carbon neutrality, renewable electricity and waste management. SBTi. This approval, which encompasses scopes 1, 2 and 31, was received less than a year after Progress against our environmental targets is also a key component of our environmental, we expanded our climate goals by committing to set science-based targets and joining the social and governance (ESG) scorecard that is part of our annual employee bonus program. United Nations Race to Zero and SBTi Business Ambition for 1.5°C campaigns. For additional information about our ESG scorecard, please see the company’s 2023 Proxy Statement. 2 Our path to net-zero One of the first medical device manufacturers to pledge Near-term targets (2019 base year): 3 to achieve carbon neutrality (scopes 1 & 2) by 2030 46.2% absolute reduction in scopes 1 & 2 Visit our Protecting the SBTi GHG emissions environment website to learn 3,4 3 76% renewable electricity , 40% renewable energy , received SBTi approval of net-zero emissions target 55% reduction in scope 3 GHG emissions more about our commitment per USD value added to science-based targets. 100% renewable electricity3,4 3 90% renewable energy (all sources) Net-zero emissions (scopes 1, 2 & 3) 3 Carbon neutrality (scopes 1 & 2) Long-term targets (2019 base year): SBTi 97% reduction in scopes 1 & 2 GHG emissions per USD value added (equivalent 1 Scope 1 emissions are direct emissions from owned to 90% absolute reduction) or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. 97% reduction in scope 3 GHG emissions Scope 3 emissions are all indirect emissions (not per USD value added included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. 2 Trajectory to net-zero emissions defined by science- based targets to reach net-zero greenhouse gas emissions across the value chain by 2050 from a 2019 base year. 3 Inclusive of all manufacturing and key distribution sites only. 4 Purchased electricity matched with electricity from 2017 2022 2024 2027 2030 2050 renewable sources. 40 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix GEMS key performance indicators Boston Scientific developed the Global Energy Management " I was fortunate to be part of a broad team of experts as a research student System (GEMS) to measure our progress toward carbon at the University of Galway, where I helped develop GEMS and our C3 strategy neutrality. The company’s Global Facilities Utility Management for carbon neutrality. Seven years later, it's gratifying to play a role in (GFUM) Council benchmarks best practices, monitors metrics its continued implementation and observe its impact on the company's and publicly reports results using the key performance indicators decarbonization journey." (KPIs) in the following chart. Sergio Contreras senior engineer, Energy Management Key performance indicators and definitions Unit 2018 2019 2020 2021 2022 CO equivalent metric tons (MT CO e) 85,127 84,778 53,730 52,284 48,717 CO 2 2 2 Carbon footprint Total amount of scope 1 and scope 2 GHG emissions (MT CO 1 e) emitted into the atmosphere. 2 Normalized MT CO e/million $ net sales 8.7 7.9 5.4 4.4 3.8 2 Total MWh 355k 368k 381k 397k 404k Energy use Total energy Boston Scientific consumes annually to 1 (MWh) manufacture our products. Energy intensity in MWh/million $ net sales 36 34 38 33 32 Green real estate Percentage of all Boston Scientific real estate (including commercial, leased and owned) that is independently (% of total) certified for energy efficiency by industry-leading bodies such as LEED for design and Energy Star or ISO 32% 41% 42% 46% 71% 50001:2018 for building operations, representing 6+ million square feet. Percentage of total energy consumed, generated Electricity percent 5% 11% 71% 73% 76% Renewable energy from renewable sources, with Boston Scientific (% of total) 1 owning the renewable attributes. All sources percent 3% 6% 35% 38% 40% 1 Inclusive of all manufacturing and key distribution sites only. 41 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Minimizing our carbon footprint (scopes 1 and 2) The company’s C3 energy strategy drives our decarbonization efforts: Cutting energy use by investing in energy efficiency at our existing sites and new construction that meets the highest climate standards. This work includes adhering to the Leadership in Energy and Environmental Design (LEED) framework and the International Organization for Standardization (ISO) 50001:2018 energy management standard. Converting to renewable energy sources instead of relying on fossil fuels. Compensating with carbon credits and offset projects for remaining unavoidable emissions. Global reduction in 3 energy intensity Our C results for all manufacturing and key distribution sites in 2022 included: 1 • Reduction in energy intensity. Since 2017, Boston Scientific • More all-electric buildings and expansions. We continued 42 20% decrease in energy has decreased energy intensity globally by 20%. reducing reliance on fossil fuels with new all-electric buildings 40 intensity since 2017 • Further expansion of ISO 50001:2018 energy management. at our Penang, Malaysia global distribution center and Maple 38 We increased our total certified manufacturing and Grove, Minnesota manufacturing site. 36 distribution sites to 12, with three new certifications, • Solar energy use. Onsite solar installations at our 34 and expect all manufacturing and key distribution sites Marlborough headquarters, Quincy distribution center and 32 to be certified by 2025. Dorado, Puerto Rico manufacturing site generated 5 GWh 30 • Sourced renewable electricity equivalent to 76% for all of renewable electricity in 2022. manufacturing and key distribution sites. In the United • On course for 90% renewable energy (all sources) by 2027. 2017 2018 2019 2020 2021 2022 States and Europe, we achieved 100% renewable electricity We recorded 40% renewable energy for all sources, keeping Energy intensity in ahead of plan and remain on track to achieve this target us on course to reach our goal of 90% by 2027. MWh/USD million net sales globally by 2024. 1 Energy Intensity is measured by the quantity of energy required per unit output or activity so that using less energy to produce a product reduces the intensity. 42 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Minimizing waste and water usage We measure and reduce waste and water usage at all Innovating to reduce In addition, our Costa Rica employees submitted manufacturing and key distribution facilities supported by environmental impact more than 1,000 sustainability ideas, including the ISO 14001:2015 environmental management system. an innovative way to convert waste. The teams A total of 17 Boston Scientific sites are now certified to Our manufacturing facilities in Heredia and implemented processes for collecting materials this standard. Coyol, Costa Rica deliver new advances to reduce used to produce our devices, such as protective Managing non-hazardous waste. The company has a environmental impact every year. In 2022, they booties, hairnets, trays, labels and pouches, and zero-waste goal of diverting a minimum of 90% of all waste led the way for the company’s energy and carbon converted that waste to plastic wood. Working from landfills and incineration by 2030. We are following the neutrality performance. The sites incorporate our with a local recycling vendor, they upcycled Total Resource Use and Efficiency certification program at our C3 strategy into daily practices. 75 tons of waste in less than six months. manufacturing and key distribution centers. • Cut. Both locations are ISO 50001:2018 Conserving water. We are committed to minimizing usage certified and in 2018 became the first and preparing for environmental challenges such as water Boston Scientific facilities to meet scarcity. Usage at our manufacturing and key distribution this standard. centers is predominantly associated with employees. In 2022, • Convert. Onsite rooftop solar installations only 24% of the company's water consumption was associated completed in 2022 generate a combined with production processes. 1.4MW power supply. More than 90% of our local energy needs are met by the Costa Rican electric grid generated from approximately 98% renewable sources. • Compensate. We compensate for remaining unavoidable emissions at each location with certified carbon offsets. 2022 non-hazardous waste recycling • Certified carbon neutral. Each year since 2016, both sites have achieved INTE B5 and 71% INTE/ISO carbon neutrality certifications from the Institute of Technical Standards of Costa of our non-hazardous waste from all manufacturing Rica (INTECO). In 2010, our Coyol site became one of the first medical technology and key distribution sites was recycled facilities in Costa Rica to achieve LEED Silver certification. 43 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Confronting climate risk As the world faces an increasing number of extreme events, Our climate risk approach including flooding, droughts and other natural disasters, we Our climate risk approach entails good governance, sound strategy, risk management, and metrics have a responsibility to continue to respond to the effects and targets. of climate change. Our climate risk management initiatives align with the guidelines of the Task Force on Climate-related Governance Risk management Financial Disclosures (TCFD), and we partner with a leading risk The Boston Scientific Board of Directors oversees We use analytics and artificial intelligence tools intelligence provider to conduct quantitative and qualitative risk management of environmental and climate-related to map and assess climate risks and potential assessments under multiple scenarios. We use the results of this risks. In 2022, we expanded the charter of the disruptions across the company's value chain. work to make decisions about resiliency investments across our board’s Risk Committee to encompass business We monitor our sites against more than 100 global supply chain. resiliency, including potential climate-related risk indices that track hazards such as wildfires, operational risk. sea-level rise and drought. As we track extreme For complete TCFD details, see the Appendix. weather events and other potential threats, we Strategy collaborate with customers and external partners The company’s Enterprise Risk Management (ERM) to maintain continuity and deliver our medical team continuously analyzes climate risks to identify solutions where they are needed. and manage obstacles that could affect our ability to meet our business objectives. We prioritize our Metrics and targets highest-risk locations and invest in improvements In addition to the metrics and targets outlined to mitigate risk and reinforce resiliency. Our ERM in this report, we use the CDP1 platform to team escalates any potential material impacts to complete a comprehensive assessment of our the Board of Directors. climate-related initiatives annually and received a B score in 2022. We also conduct routine risk assessments of all primary business operations in partnership with our facilities insurer and other outside assurance experts. To learn more about business continuity and risk management, see Creating value responsibly. 1 CDP is a not-for-profit charity that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. 44 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Resiliency in the eye of the storm Across Boston Scientific, operational and climate resiliency efforts ensure the safety of our global workforce and the reliable delivery of our medical solutions to providers caring for patients. We continually assess potential vulnerabilities and take action wherever necessary to protect our people, facilities and supply chain. After Hurricane Maria devastated the Caribbean in 2017, we implemented critical infrastructure upgrades at our Dorado, Puerto Rico manufacturing site. It was an investment that proved invaluable when Hurricane Fiona hit the island in 2022 and global and local teams implemented proactive measures that kept disruption to a minimum. Days before Fiona made landfall, products were stocked and secured to ensure an uninterrupted supply chain, and we switched to independent water and power systems capable of providing us with up to two months of backup utilities and supplies. As part of our long-term risk management strategy, facility upgrades at our Dorado, Puerto Rico manufacturing site over the last five years included a hurricane roof, hurricane shutters and increased generator capacity. With the facility prepared, we proactively shut down and sent our 800 employees home to ensure their safety. We immediately confirmed that all our people and their families were safe as Fiona left the island, then turned “ We all pulled together, and the plan kept our people and operations protected, our focus to reopening. Our Dorado team rallied to resume while also ensuring our life-saving products made it to the patients who needed operations a day later, a testament to their perseverance them. Our teams were many steps ahead of the storm, looking out for all of us.” and a resiliency plan that left nothing to chance. Ariel Gonzalez Ruiz For more information about our business resiliency efforts, senior manager, see Creating value responsibly. Environmental Health & Safety 45 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Enhancing product stewardship and share best practices and tools, across all business divisions, that minimize the footprint of our packaging and labeling. For We make a concerted effort to minimize the environmental example, we implemented sustainability guidance for packaging impacts of our devices, packaging and materials. Product engineers encouraging them to use more recyclable materials where stewardship at Boston Scientific focuses on the environmental possible, and our teams implemented more than 50 packaging footprint of our products at every life cycle stage, from design, improvement projects. sourcing, production and distribution to waste disposal and Here are some examples of our 2022 packaging and labeling recycling. In 2022, we finalized life cycle analysis (LCA) guidance sustainability advances and other successful practices: and created a focus group to introduce a companywide LCA methodology. We plan to conduct LCA pilot studies in 2023 • We reduced the packaging weight of our LithoVue™ Elite as we further refine our methodologies. ureteroscope by 25% compared with our first generation “ Just as we collaborate and LithoVue™ scope. innovate to make medical Packaging and labeling • A packaging design change to a lighter, more efficient carton solutions that help people for Vercise™ lead extensions led to a 70.8% reduction in carton live healthier lives, we’re The company develops packaging and labeling sustainability material used. working with partners and goals with input from a global steering committee and customers to innovate and processes that meet international labeling regulations. • We supported Medtech Europe's effort to assess the health care identify sustainable device In 2022, we established a dedicated team to develop sector's endorsement of eLabeling as a sustainable alternative and packaging solutions for to paper and will continue to advocate for solutions that will a healthier world." allow eLabeling. • Boston Scientific collaborates with industry peers in the Healthcare Lindsay Smaron Plastics Recycling Council (HPRC) to ensure our practices reduce associate manager product stewardship, waste, limit emissions and maximize opportunities to recycle. Urology 2022 packaging sustainability 170+ metric tons Collaborating to increase medical device recycling Product stewardship in our company also includes medical device of packaging removed from waste stream recycling. In the United States, we partner with leaders in recycling and waste management to provide sustainability solutions for 1,000 metric tons single-use devices. We now offer systems for recycling devices of recycled content used in packaging and converting product waste to energy. In 2022, participating customers recycled 97% of LithoVue™ scopes and 97% of EXALT™ Model D devices. 46 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Creating value responsibly A more sustainable world begins with having deep respect for its people and resources. Across our company and supply chain, we work with integrity and accountability to deliver solutions that change and save lives. In this section: • Maintaining governance that reflects our priorities and values • Working with compliance, ethics and integrity ~37 million • Protecting human rights products delivered in 2022 • Keeping our supply chain resilient and reliable 99%+ • Managing risk and global security of all employees have completed Code of Conduct training • Ensuring cybersecurity and data privacy 47 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Overview and 2022 highlights Maintaining governance that Policies and related links As champions for better health around the world, our employees reflects our priorities and values unite to deliver patient solutions when and where they are Data Privacy Policy needed. We implement advanced systems and processes We have a longstanding commitment to strong corporate Corporate Governance Guidelines aimed to make our network increasingly resilient amid rising governance, ethics and regulatory compliance. Our climate risk, supply chain pressures and geopolitical conflict. Corporate Governance Guidelines have been adopted by Code of Conduct In 2022, the company took new steps to safeguard data privacy the Boston Scientific Board of Directors. The board has also Labor and human rights and ensure ethical practices throughout our operations. established charters for each of its standing committees Conflict minerals Through enhanced risk profiling, we protected our business from (audit, executive compensation and human resources, unforeseen events and delivered our devices to more providers nominating and governance, and risk). In 2022, the board Global tax strategy and patients than ever before. expanded the remit of its Risk Committee to include oversight Policy and advocacy of cybersecurity and business resiliency. The vice president of ESG leads our global ESG vision and strategy and reports to the chair of the ESG Executive Steering Committee, composed of nine Executive Committee members. The vice president of ESG regularly updates our Board of Directors and its Nominating and Governance Committee, Why it matters which oversee the company’s ESG initiatives. The board's Nominating and Governance Committee has primary Caring for human life inspires us oversight responsibility for the company’s ESG initiatives to innovate and influences the as well as other matters affecting our corporate responsibility, way we engage with people and including diversity, equity and inclusion, human rights and communities around the world. charitable giving. When we meet our responsibilities as a corporate citizen, our employees For more information about our ESG strategy, see the Introduction. and customers believe in what we do and our business is stronger. We believe every step we make toward a more sustainable business and planet delivers value for our stakeholders. 48 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Global tax strategy and compliance Partnering for patient care and access Boston Scientific is committed to complying with all applicable The company partners with medical technology groups and regulatory bodies to share best practices and stay informed tax laws, regulations and related disclosure requirements in every about policy developments and emerging areas of regulatory updates. Boston Scientific collaborates with the U.S. jurisdiction where we operate. Our tax professionals adhere Food and Drug Administration (FDA), primarily through the agency’s Digital Health Software Precertification Program, to the highest compliance standards and use standardized, which is focused on giving patients access to emerging health care technologies. We are also part of the Medical Device automated processes to minimize tax risk. The company’s Innovation Consortium, a public-private partnership that engages with government and industry to advance solutions published global tax strategy outlines our approach to taxation, that promote patient access to innovative medical devices and treatments. from risk management and compliance to tax planning and Read more about our work to expand patient access to care in Transforming care. engagement with tax authorities. Political involvement We support public policies that protect and improve patient health, benefit our employees and communities, and promote diversity, equity and inclusion (DE&I). The company advocates for policies that increase access to care and life-saving technologies, and we provide annual updates on political action committee (PAC) activity and other contributions. For example, in 2022 we voiced support for U.S. policies addressing supply chain resiliency to prevent disruptions in care. To advance sound public policy, the Boston Scientific Corporation PAC pools voluntary political contributions from eligible employees and our Board of Directors in accordance with federal law. To learn more about our political involvement, visit our website. 49 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Working with compliance, ethics and integrity We strive to act ethically and with integrity in all our working relationships, inside and outside the company. People and Confidential advice line 2022 training partners across our business and supply chain trust our ethics and our track record of responsibility. All Boston Scientific employees share a commitment to: Third party Seven days Multiple 99%+ • Act honestly and ethically in all company matters. operated a week languages of all employees have completed Code of Conduct training • Protect the privacy of patients, customers and employees. • Treat one another with respect and fairness. • Hold one another accountable for quality in everything we do. One of these initiatives included our 2022 Power of One campaign, which reinforced each employee's accountability The Boston Scientific Global Compliance team provides the to ethical behavior in their daily business operations. In 2022, training and resources our employees need to ensure they we also launched a new advice line website to make it easier are conducting business responsibly, treating customers and for employees to report ethics concerns. All employees are suppliers fairly and reporting any ethics concerns. The team is responsible for immediately reporting any suspected violation led by our chief compliance officer, who reports to the full Board of our Code of Conduct or other company policy. of Directors annually, the Risk Committee of the board quarterly Mandatory training. Every employee is required to complete and to the Audit Committee as warranted. Our compliance annual training on the Code of Conduct, along with multiple experts collaborate with teams across the business to monitor mandatory training courses that reinforce company policies, the company’s compliance with Boston Scientific policies and explain corruption- and compliance-related risks, and provide applicable laws. resources for reporting concerns. The Boston Scientific Code of Conduct No retaliation. Boston Scientific prohibits any form of retaliation, Every Boston Scientific employee is required to read and direct or indirect, against an individual who raises a concern in understand the Boston Scientific Code of Conduct. The code is good faith. This protection extends to anyone who assists with, the foundation for all of our business practices and relationships or cooperates in, an investigation of such a report. and is promoted through our annual Integrity Week initiatives. See more about our policies and practices on our website. 50 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Marketing and selling responsibly Protecting human rights Marketing and selling life-changing products is a serious As a global health care business, we play a role in advancing undertaking that we oversee closely. Our mandatory training and protecting human rights. Boston Scientific respects and for all customer-facing employees addresses fair and honest strictly adheres to labor and human rights laws, including marketing practices, intellectual property, and interactions those related to modern slavery, child labor, human trafficking, with providers and public officials. It also addresses how to bribery, discrimination, harassment and pay equity. We require navigate actual and perceived conflicts of interest, which our contractors, suppliers and partners to conduct their includes guidance for managing off-label inquiries and focusing businesses legally and ethically as well. Our supply chain marketing discussions on approved, on-label use of our products. resiliency team regularly assesses our direct suppliers as well as our extended supply chain network to identify and address any potential exposure to unethical labor practices. Human rights oversight and accountability We respect the dignity and human rights of all people, 2022 sales and marketing training and our global human rights policies and processes govern conduct throughout the business and supply chain. Our Supplier Guidebook mandates adherence to all human 10,000+ hours rights laws and labor standards and requires that safe and of compliance training for customer-facing employees healthy working conditions be maintained at all times. In 2022, we launched a new supplier code of conduct that reinforces our supply partners’ commitment to social responsibility. Over the past two years, we invested in and began utilizing artificial intelligence and visualization systems to more easily evaluate the risk of possible exposure to unfair or unethical labor practices within our extended supply chain. The resulting analytics help our teams conduct due diligence to better identify areas of risk and deploy appropriate resources to remove unfair or unethical labor practices from our supply chain. In 2023, we will expand use of this technology throughout our value chain. For a complete summary of our human rights approach and activities, please see our website. 51 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Keeping our supply chain Boston Scientific utilizes internal and external sterilization facilities as part of building a resilient global supply chain. resilient and reliable Similar to other medical device manufacturers, we require sterilization, like ethylene oxide (EtO), so we can continue to To ensure we are able to deliver for the more than 33 million provide innovative and life-enhancing medical solutions. All patients annually who rely on our life-changing technology, our facilities comply with current permit requirements as well as our end-to-end global supply chain organization is supported regulatory guidelines, and we have a variety of technologies in by an agile network adept at continuously responding to place to measure and control emissions. We support continuous changing market conditions globally through supplier, improvements to reduce the use of EtO and efforts to innovate Our operations in Penang, Malaysia serve manufacturing and distribution strategies. Our global supply sterilization for medical devices and were the first company to as a distribution warehouse and operational base for planning, logistics, customer care and chain network spans 15 principal manufacturing facilities, join the U.S. FDA EtO Sterilization Master File Pilot Program. equipment service repair. as well as various distribution, customer fulfillment and Going forward, we will continue to work with the U.S. FDA technology centers around the world. and other agencies to explore new methods. In the past year, we expanded our regionalized distribution approach within our global supply chain network. The expansion included our first Asian regional distribution center in Penang, Malaysia, now our hub for Asia Pacific (APAC) markets. We built the facility next to a manufacturing site we opened in 2017, giving us added capacity to support global growth as well as access to local talent. Our proximity to regional customers saves time and “ We are proud to be part of limits carbon emissions. Each year, our Malaysia team will deliver Delivering for patients and providers in 2022 the company’s first global products representing our interventional cardiology, endoscopy, distribution hub in Asia. Our peripheral interventions and urology divisions to customers ~37 million around the world. team in Penang is committed products delivered to serving people in the For more on our climate-related initiatives, region and delivering products see Protecting the environment. 21,000+ needed by customers and Global Supply Chain team members their patients.” 10,000+ Jason Khoo active direct and indirect suppliers vice president, Global Supply Chain APAC 52 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Small and diverse suppliers Our approach to supplier selection builds diversity, equity and Change that makes ESG and business sense: inclusion throughout the Boston Scientific supplier network. Ideal product flow In the United States, we make it a priority to work with certified companies that share our values and commitment to customer As we continue to align business operations with our ESG priorities, we and patient care, including businesses that are minority-owned, are introducing a new process for ideal end-to-end product flow, including women-owned, small or disadvantaged, service-disabled, improving the way our products are sourced, manufactured, packaged, veteran-owned, LGBTQ+-owned and disability-owned. shipped and distributed. This new approach allows us to manufacture more products and reliably deliver them to customers and their patients, while making our supply chain more sustainable by lowering carbon emissions, reducing packaging waste and significantly decreasing our global shipping footprint. These advances will result in part from postponing product packaging until we determine the product’s destination. Where possible, products Supporting supplier diversity will be directly shipped to customers, skipping unnecessary handling and travel to and from distribution centers. For products headed to countries ~1,300 where regulations allow downloadable Instructions for Use (IFUs), we are eliminating paper IFUs and shipping devices more fuel efficiently in lighter small and diverse suppliers engaged packaging. Where printed IFUs are required, we only send instructions in $340+ million local languages rather than in multiple-language packets. In addition to reducing packaging waste and shipping weight, we are spent on small and diverse suppliers optimizing shipping routes. When feasible, we are transporting freight by sea rather than air to produce fewer emissions. By 2026, these changes Reduce paper Increase direct shipping Reduce supply chain are expected to: IFUs by to destination regions to costs annually by up to ~90% ~90% ~$80 million 53 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Managing risk and global security Enhancing business resiliency As a global business, we continually prepare for a range of Because customers and patients count on us for quality potential threats, including meteorologic, geopolitical and solutions and outcomes, our enterprise experts assess potential climate-related events. We introduced a network modeling vulnerabilities to safeguard our supply chain. They analyze system in 2022 that lets our supply planners make on-the-spot strategic, operational, financial, legal and compliance risks so decisions that mitigate potential risks and keep us on track to we can safely pursue opportunities, adapt quickly in the face meet customer commitments. The technology monitors factors of challenges and meet our commitments. Our resiliency and such as raw material levels, distribution channels and supplier security teams work with our enterprise risk management performance to build increased certainty into our processes specialists to keep our facilities, people and partners secure despite supply chain volatility. In 2023, we will expand our work on a daily basis and in the event of a crisis. with a global risk intelligence provider to gain greater visibility into real-time events and emerging risks. Risk management governance For more on our climate risk management work, see The Boston Scientific Enterprise Risk Management (ERM) program Protecting the environment. is led by our vice president of Global Internal Audit, whose team examines existing risks to determine whether we have Securing global assets appropriate mitigation plans in place. New and emerging risks are identified in discussions with Executive Committee members, Our global security and resiliency team uses a mix of tools surveys of key employees and the Board of Directors, external and procedures to protect our people, enterprise assets and third-party resources and through industry peer benchmarking. operations. They manage our security in collaboration with Results of all these initiatives are shared with executives and partners who specialize in cybersecurity, environment, health our Board of Directors to determine next steps. and safety, international regulations and data privacy. In 2022, we made advances beyond industry-standard protocols to review additional layers of detail about the performance and practices of our suppliers, contractors and small business vendors. Despite supply challenges around the world, we maintained operations and reliably served health care providers without significant disruptions. 54 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Ensuring cybersecurity ISO/IEC 27001:2013 and ISO/IEC 27018:2014, and we conduct business in compliance with applicable international laws and regulations and data privacy governing product and data security. With patients and providers increasingly benefiting from our Outside of the company, we do our part to contribute to stronger connected devices, cybersecurity is critical. The Risk Committee data protocols throughout our industry. As a member of the of our Board of Directors oversees cybersecurity and business Health Information Sharing and Analysis Center (H-ISAC) community resiliency, and all senior leaders receive regular updates on of private and public health organizations, we share security best the state of our security and any potential concerns. practices and threat intelligence with peers and partners in the private and public health sectors. The Boston Scientific Global Cybersecurity team takes a For transparency, our product security website updates providers, “ Cybersecurity is a constantly centralized data privacy approach to safeguarding all systems, patients and caregivers on security findings and processes. evolving landscape, so we are notification applications, connected medical devices and continuously pushing ourselves clinician interfaces. Our cybersecurity strategy builds on the National Institute of Standards and Technology principles Protecting personal data and collaborating with industry of identify, protect, detect, respond and recover. We are Health care and data security are increasingly interconnected, experts, customers and outside implementing a zero-trust cybersecurity model focused and patients should be able to use smarter medical solutions partners to evaluate and on users, assets and resources to strengthen our resilience with peace of mind. We updated our website privacy and internal protect against new risks." against cyber threats. personal data use policies in 2022 to reflect current data regulations Drew Bomett and realities. We periodically assess our policies to ensure they vice president and chief information Product cybersecurity remain up to date. security officer Our product cybersecurity focus begins with our design protocols The company conducts outreach with employees, customers and and is supported by quality testing, provider education, and outside partners about data privacy and cybersecurity best practices. packaging and distribution standards. In 2022, we expanded Mandatory employee education programs reinforce zero-trust product security to include multiple risk analysis requirements principles and include simulations to promote security awareness. for every piece of hardware and software in our devices. Employees who interact with customers are required to complete We use penetration testing to simulate cyberattacks and better annual training about the data they may encounter and their understand our exploitable weaknesses, and we monitor threat responsibility to protect information and report privacy concerns. intelligence feeds and use scanning tools to detect and assess We also require all employees to submit impact assessments for vulnerabilities that could affect our products. products, processes and initiatives that collect, use, manage or Health care providers remotely monitor Boston Scientific process personal data. In 2022, our global privacy team reviewed implantable cardiac medical devices via systems certified over 650 privacy impact assessments. by the International Organization for Standardization Learn more about Boston Scientific product security on our website. 55 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Appendix In this section: • Materiality • Stakeholder engagement • Metrics summary • Global Reporting Initiative (GRI) index • Sustainability Accounting Standards Board (SASB) index • Task Force on Climate-related Financial Disclosures (TCFD) index • United Nations Sustainable Development Goals (SDGs) 56 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Materiality Our ESG materiality matrix We can better focus our efforts to reduce risk and drive Innovation for patient needs positive impact when we fully understand the environmental, Patient outcomes social and governance (ESG) topics most important to our itical cr stakeholders and our business. In 2021, we engaged with Product quality and customer health and safety Diversity, equity and an independent third-party consulting firm to update our inclusion/anti-racism materiality1 assessment. The work to examine our priority topics involved in-depth interviews, peer benchmarking, and guidance Health equity and access Supply chain Greenhouse gas from internationally recognized sustainability frameworks and s management emissions/energy standards. After consulting with internal subject matter experts Employee well-being, on the topics identified by the assessment, the Boston Scientific engagement and safety Product stewardship Corporate governance Climate risk management ESG Steering Committee, Executive Committee and Board of eholder Directors reviewed the findings. Human capital attraction Transparency ak and development Informed by our materiality assessment and our values, t o s Corporate philanthropy, community Compliance we prioritized 15 material topics that would have the greatest outreach and volunteerism Data security impact and are continuing to integrate these findings into our ESG strategy. We will continue to regularly monitor and ance t Other air and water emissions Human rights assess progress to ensure we remain focused on the issues t Anti-corruption and of greatest importance to our stakeholders. Customer relationship anti-competitive behavior por management Labor and compensation Im Risk and crisis management Ethics in research and development/animal testing Biodiversity Public policy and lobbying high critical Impact on economy, environment and society 1 Throughout this report, we use the Global Reporting Initiative Standards definition of Key materiality in order to identify and prioritize ESG topics for the company. This standard is different from the definition and concept of materiality within the securities laws that Material1 we use to assess, among other things, required disclosure in Securities and Exchange Important Commission filings. ESG topics identified as “material” for purposes of this report may not be considered material to the Company as a whole, including for SEC reporting purposes. 57 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Stakeholder engagement The following chart outlines our key stakeholders and describes the ways we regularly engage with them. Stakeholder Channels of engagement Stakeholder Channels of engagement Customers • Clinical trial management Individual shareholders • Annual Meeting of Stockholders and quarterly • Post-market surveillance and institutional investors earnings calls • Customer care • Investor section of Bostonscientific.com • Training and medical education • Bi-annual investor day • Business continuity and resiliency planning • Investor calls and meetings • Close the Gap • Annual report on Form 10-K and quarterly reports on • Product and data security Form 10-Q • Professional sections of Bostonscientific.com • Annual Proxy Statement • Performance Report • Performance Report Patients and patient • Clinical trials Government regulators • Government affairs team advocacy groups • Close the Gap and policymakers • Trade associations • Product and data security • Boston Scientific Corporation Political Action Committee • Customer service and complaint handling • Policy & advocacy • Advocacy group engagement • Patient sections of Bostonscientific.com Nongovernmental organizations • Boston Scientific Foundations and local communities • Grants, donations and exhibits Employees • Employee engagement surveys • Employee volunteering • Employee resource groups • Scholarships and internships • Quarterly business updates • Sponsorships, partnerships and collaborations • Business-specific town halls • Boston Scientific intranet and Yammer Suppliers and distributors • Supplier diversity program • Weekly global newsletter and monthly CEO letter • Global supplier guidebook and resource center • Matching gift program and volunteering • Supplier scorecards • Awards and recognition • Supplier code of conduct • Supplier quality and audit programs 58 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Metrics summary Our metrics summary provides key performance data organized under five pillars that align to leading environmental, social and governance (ESG) ratings and inclusion within sustainability indices. Transforming care Product quality and safety Unit 2018 2019 2020 2021 2022 Class I recalls # 0 0 3 3 0 Class II recalls # 5 7 15 8 12 Regulatory inspections # 76 87 85 97 81 Form 483 observations # 7 0 0 5 1 FDA warning letters Yes/No No No No No No Innovation Unit 2018 2019 2020 2021 2022 1 Research & Development (R&D) spend USD millions 1,113 1,174 1,143 1,204 1,323 2 R&D spend as a percent of net sales % 11.3 10.9 11.5 10.1 10.4 Number of R&D positions FTE 1,453 2,040 2,114 2,136 2,469 1 Represents GAAP R&D expense per corresponding Annual Report on Form 10-K. 2 Represents GAAP R&D expense as a percent of GAAP net sales per corresponding Annual Report on Form 10-K. 59 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Investing in our people Diversity and inclusion Unit 2018 2019 2020 2021 2022 1 Representation of women (globally) Board of Directors — women Percent 30.0 30.0 30.0 30.0 30.02 3 Executive officers — women Percent 18.8 25.0 25.0 18.8 11.1 4 Executive Committee — women Percent 18.8 25.0 25.0 18.8 25.0 5 Senior management — women Percent 29.5 31.0 33.2 34.8 37.7 6 Supervisors and managers — women Percent 38.4 38.1 39.9 41.1 42.6 Share of total field sales management positions — women Percent 22.0 21.3 22.9 24.1 26.8 Share of total workforce — women Percent 46.5 47.0 47.4 48.3 49.0 New hires — women Percent 51.2 50.2 48.9 51.7 51.8 Women by region United States, including Puerto Rico Percent 44.3 45.0 45.3 46.8 47.7 Latin America Percent 57.7 56.1 55.7 55.6 55.2 Canada Percent 43.6 43.4 48.1 48.4 48.8 Europe, Middle East and Africa Percent 45.5 45.5 46.3 47.0 47.1 Asia Pacific Percent 43.3 46.4 46.9 46.5 49.2 1 Gender: includes all employees globally where gender is identified. Excludes any employees where gender is "undeclared" and "unknown." 2 Donna James will remain in her role as a director of the Company until her resignation becomes effective on the day of the 2023 Annual Meeting of Stockholders, which is scheduled to occur on May 4, 2023. 3 Executive officers: includes all executive officers listed in the Annual Report. 4 Executive Committee: includes all Executive Committee members as of December 31 of that calendar year. 5 Senior management: includes all levels that are director, vice president, senior vice president, executive vice president and CEO. 6 Supervisors and managers: includes all levels that are supervisor, manager I and manager II. 60 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Investing in our people Diversity and inclusion Unit 2018 2019 2020 2021 2022 1, 2 Representation of multicultural talent (U.S., including Puerto Rico) American Indian/Alaska Native Percent 0.3 0.3 0.3 0.3 0.3 Asian Percent 13.4 13.3 13.6 12.8 12.8 African American/Black Percent 6.5 7.2 7.9 9.2 9.2 Hispanic/Latino Percent 9.5 10.5 10.3 11.5 11.9 Two or more races Percent 1.6 1.6 1.7 1.7 1.8 Native Hawaiian/Other Pacific Islander Percent 0.3 0.3 0.3 0.2 0.2 Total Percent 31.6 33.2 34.1 35.7 36.2 3 Senior management — multicultural talent Percent 13.1 13.6 14.4 16.5 17.6 4 Supervisors and managers — multicultural talent Percent 19.6 20.8 21.4 21.6 22.6 Share of total workforce — multicultural talent Percent 31.7 33.2 34.0 35.7 36.0 New hires — multicultural talent Percent 42.6 43.5 42.5 49.5 41.4 Representation of employees by age group (U.S., including Puerto Rico) <30 Percent 11.1 14.0 16.1 18.9 18.8 30-50 Percent 58.3 57.8 57.6 56.1 55.7 >50 Percent 30.6 28.1 26.3 25.0 25.5 Representation of employees by age group (global) <30 Percent 14.6 18.3 21.5 24.2 24.9 30-50 Percent 63.0 61.1 59.8 58.0 57.4 >50 Percent 22.5 20.6 18.7 17.8 17.7 1 3 Multicultural talent: in the U.S. including Puerto Rico, defined as African American/Black, Asian, Hispanic/Latino, American Indian/ Senior management: includes all levels that are director, vice president, senior vice president, executive vice president and CEO. Alaska Native, Native Hawaiian/Other Pacific Islander and two or more races. Excludes any employees who choose not to self-identify. 4 Supervisors and managers: includes all levels that are supervisor, manager I and manager II. 2 Reflects Equal Employment Opportunity (EEO) race/ethnicity categories. 61 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Investing in our people Career and culture Unit 2018 2019 2020 2021 2022 Total new hires FTE 7,298 8,417 6,494 8,303 10,370 Employee retention rate Percent 88.1 88.0 89.7 84.7 84.9 Employee turnover or attrition rate Percent 11.9 12.0 10.3 15.3 15.1 Employee voluntary turnover rate Percent 9.5 9.5 7.1 11.4 12.3 Analysis not Analysis not completed. 1 Pay equity global (gender) Global BSC 99%+ 99%+ completed 99%+ Next Analysis will take place in 2023. Analysis not Analysis not completed. 1 Pay equity multicultural (U.S., including Puerto Rico) U.S., including Puerto Rico 99%+ 99%+ completed 99%+ Next Analysis will take place in 2023. Open positions filled by internal candidates Percent 20.1 17.5 20.5 22.0 19.2 2 2 2 Period that long-term incentives for employees are paid out after Years 4 4 4 4 4 3 Average learning hours/employee Hours - - 16.5 18.6 19.5 1 We will be completing every other year. Next analysis scheduled for 2023. 2 Vesting for options and restricted units is four years (25% per year). Boston Scientific changed from 5-year to 4-year award vesting beginning with RSUs granted in FY 2019. Half of the value delivered to executives is through performance share units, which have a three year cliff vest. 3 Inclusive of global indirect labor employees only. 62 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Investing in our people Employee health and safety Unit 2018 2019 2020 2021 2022 Work related fatalities — employees # 0.0 0.0 0.0 0.0 0.0 Work related fatalities — contractors # 0.0 0.0 0.0 0.0 0.0 Total Recordable Incident Rate (TRIR) Injuries per 0.52 0.53 0.47 0.42 0.28 100 employees Total Recordable Injury Frequency Rate (TRIFR) Injuries per 1 million 2.6 2.7 2.3 2.1 1.4 hours worked Lost Time Injury Frequency Rate (LTIFR) Lost Time Injuries per 2.6 3.0 1.7 1.3 0.7 1 million hours worked Occupational Lost Time Rate (OLTR) Lost Time Days per 5.2 5.9 4.7 4.5 3.0 100 employees TRIR, TRIFR, LTIFR and OLTR rate coverage Percent of employees 66.0 66.0 67.0 98.0 100 Accelerating possibilities Community engagement Unit 2018 2019 2020 2021 2022 1 Monetary value of philanthropic cash contributions USD millions 8.90 8.14 9.04 7.21 6.72 Boston Scientific Foundation (U.S.) cash contributions USD millions 1.07 1.19 1.21 1.21 2.09 Employee volunteering hours Hours 43,000 41,000 23,000 51,000 31,444 2 2 2 Overhead costs for management of philanthropic activities USD millions 0.068 0.067 0.200 0.222 0.286 1 This includes donations to Health Care Providers (HCP) and non-HCP charitable organizations and does not include any medical grant, research grant or fellowship funding. 2 Data includes community engagement, sales charitable contributions committee costs and foundation consultant fees. 63 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Protecting the environment Environmental impact1 Unit 2018 2019 2020 2021 2022 Total municipal water consumed Million cubic meters 0.568 0.581 0.618 0.664 0.731 Total fresh water consumed Million cubic meters 0.121 0.109 0.119 0.185 0.130 Total process water discharged Million cubic meters 0.057 0.068 0.109 0.112 0.208 Total domestic water discharged Million cubic meters 0.412 0.430 0.511 0.590 0.519 Cubic meters water Water intensity consumed/USD millions 70 64 74 71 68 net sales Total non-hazardous and hazardous waste generated Metric tons 12,372 12,196 10,936 12,796 13,051 Total non-hazardous waste generated Metric tons 11,579 11,200 9,978 11,703 11,977 Total non-hazardous waste recycled Metric tons 9,667 8,943 7,843 8,673 8,563 Total non-hazardous waste energy recovered Metric tons 1,332 1,744 1,545 1,962 2,124 Total non-hazardous waste disposed to landfill Metric tons 581 514 591 1,067 1,290 Total hazardous waste generated Metric tons 792 996 958 1,093 1,074 Total hazardous waste recovered Metric tons 76 57 94 103 100 Total hazardous waste energy recovered Metric tons 310 362 376 468 449 Total hazardous waste treatment Metric tons 247 240 292 307 270 Total hazardous waste incinerated Metric tons 135 218 152 181 225 Total hazardous waste landfilled Metric tons 0 0 14 1 1 Total hazardous waste recycled Metric tons 24 119 29 33 29 Environmental notice of violation # 0 3 0 0 0 1 Environmental impact metrics coverage includes scopes 1 and 2 inclusive of all manufacturing and key distribution sites only, which represent approximately 67% of total employees. 64 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Protecting the environment Climate change1 Unit 2018 2019 2020 2021 2022 Total direct greenhouse gas emissions (scope 1) CO equivalent metric tons 31,257 34,168 35,908 35,395 35,596 2 Total indirect greenhouse gas emissions (scope 2) CO equivalent metric tons 53,870 50,611 17,823 16,889 13,121 2 Non-renewable fuels consumed MWh 170,495 186,393 191,645 192,076 191,365 Total electricity purchased MWh 181,587 187,736 185,329 205,187 212,505 Total renewable electricity purchased MWh 9,149 22,508 131,896 149,617 161,485 Total energy use GWh 355 368 381 397 404 2 Green real estate Percent 32 41 42 46 71 Number of LEED certified / registered buildings # 13 13 15 16 12 Number of ISO 50001:2018 certified sites # 2 5 6 9 12 Number of ISO 14001:2015 certified sites # 15 15 16 16 17 Carbon footprint (scopes 1 and 2) calendar year Metric tons 85,127 84,778 53,730 52,284 48,717 Renewable electricity purchased with renewable energy certificates calendar year Percent 5 11 71 73 76 Renewable energy (all sources) used with renewable energy certificates Percent 3 6 35 38 40 Energy intensity MWh/USD millions net sales 36 34 38 33 32 Metric tons CO e/ Carbon intensity 2 8.7 7.9 5.5 4.4 3.8 USD millions net sales 1 Climate change metrics coverage includes scopes 1 and 2 inclusive of all manufacturing and key distribution sites only, which represent approximately 67% of total employees. 2 Green real estate: percentage of all Boston Scientific real estate (including commercial, leased and owned) that is independently certified for energy efficiency by industry-leading bodies such as LEED for design and Energy Star or ISO 50001:2018 for building operations, representing 6+ million square feet. 65 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Creating value responsibly Responsible supply chain Unit 2018 2019 2020 2021 2022 Total number of suppliers identified as Tier 1 # 1,498 1,650 1,489 1,356 1,071 Percentage of suppliers identified as Tier 1 Percent 100 100 100 100 100 Total number of Tier 1 suppliers identified as critical # 153 141 137 130 128 Percentage of Tier 1 suppliers identified as critical Percent 10.2 8.6 9.2 9.6 12.0 Supplier scorecard risk assessment — total number of Tier 1 suppliers assessed in last # 393 333 337 313 290 three years Supplier scorecard risk assessment — percentage of Tier 1 suppliers assessed in last Percent 26.3 20.2 22.6 23.1 27.0 three years Comprehensive assessment of critical (Tier 1 and Non-Tier 1) suppliers annually Percent 10.2 8.6 9.2 9.6 12.0 Comprehensive assessment of critical (Tier 1 and Non-Tier 1) suppliers in the last Percent 26.2 20.2 22.6 23.1 27.0 three years Compliance Unit 2018 2019 2020 2021 2022 Anti-competitive practices fines Yes/No No No No No No Corruption and bribery cases # 0 0 0 0 0 Earnings before tax USD millions 1,422 687 -79 1,076 1,141 Reported taxes USD millions -249 -4,013 2 36 443 Reported tax rate Percent -17.5 -584.0 2.9 3.3 38.9 Cash taxes paid USD millions 1,037 242 207 302 662 Upheld regulatory complaints concerning marketing and selling practices # 0 0 0 0 0 Upheld self-regulatory complaints concerning marketing and selling practices # 0 0 0 0 0 66 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Creating value responsibly Governance Unit 2018 2019 2020 2021 2022 Number of executive directors # 1 1 1 1 1 1 Number of independent directors # 9 9 9 9 9 1 Number of women on Board of Directors # 3 3 3 3 3 1 Average tenure of independent board members (years) # 5 6 7 7 8 Number of non-executive/independent directors who sit on four or less public 1 company boards, including Boston Scientific # 9 9 8 9 9 Number of public company boards outside of Boston Scientific on which # 3 3 3 3 3 2 non-executive/independent directors can sit 3 Number of executive officers — women # 3 3 4 3 1 Performance period covered by Executive Compensation Plan Years 3 3 3 3 3 Clawback provision for Executive Compensation Plan Yes/No Yes Yes Yes Yes Yes 4 Shares of common stock outstanding — each entitled to one vote No. of Votes 1,385,961,926 1,396,195,349 1,417,165,707 1,426,724,712 1,434,780,104 5 Total annual CEO compensation USD millions 13.97 15.76 13.77 16.06 16.94 Median annual compensation for all employees USD thousands 62.5 65.6 59.3 68.9 76.1 Lobbying USD millions 1.68 1.68 1.52 1.52 1.52 Lobbying — local, regional or national political campaigns USD millions 0.27 0.26 0.25 0.22 0.18 Lobbying — trade associations USD millions 0.14 0.14 0.13 0.21 0.11 1 Donna James will remain in her role as a director of the Company until her resignation becomes effective on the day of the 2023 Annual Meeting of Stockholders, which is scheduled to occur on May 4, 2023. 2 Without the approval of the Nominating and Governance Committee, no director may sit on more than four public company boards (including the Company’s board). For more information, please review our Corporate Governance Guidelines. 3 Executive officers: includes all executive officers listed in the Annual Report. 4 Total number of shares outstanding as listed on the cover page of the applicable Annual Report on Form 10-K. 5 Compensation is calculated in accordance with Item 402 of Reg S-K. 67 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Global Reporting Initiative (GRI) index The GRI Standards represent global best practices for reporting publicly on a range of ESG impacts. We continue to expand the scope of our ESG metrics and disclosures to topics material to our business and stakeholders. This report has been prepared with reference to the GRI Standards, using GRI 1: Foundation 2021. Applicable GRI sector standards are not currently available. The information cited in this GRI content index is for the period from January 1, 2022 to December 31, 2022. The following table includes references to our 2022 Performance Report, 2022 Annual Report on Form 10-K and other documents available on Bostonscientific.com. Indicator Description Response GRI 2: General disclosures Boston Scientific Corporation, publicly traded on New York Stock Exchange as BSX 2-1 Organizational details Global headquarters: 300 Boston Scientific Way, Marlborough, MA 01752-1234 Form 10-K, Item 2. Properties, Page 32 Locations 2-2 Entities included in the organization’s sustainability reporting Form 10-K, Exhibit 21 Where noted, scope is inclusive of all manufacturing and key distribution sites only We report and plan to update this index annually. Data in the 2022 Performance Report covers the period between 2-3 Reporting period, frequency and contact point January 1, 2022 and December 31, 2022, unless otherwise indicated Contact: Investor Relations 2-4 Restatements of information If corrections are made to previously reported data, restatements are noted within the Performance Report and Performance Report Appendix 2-5 External assurance Our energy and greenhouse gas (GHG) emissions data has been independently verified Form 10-K, Item 1. Business, Page 3 Form 10-K, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 2-6 Activities, value chain, and other business relationships Page 36 Performance Report, Boston Scientific: 2022 at glance, Page 7 Performance Report, Creating value responsibly, Page 47 2-7 Employees Form 10-K, Item 1. Human Capital, Page 11 Performance Report Appendix 68 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Indicator Description Response 2-8 Workers who are not employees Not currently disclosed Proxy Statement 2-9 Governance structure and composition Governance overview Performance Report, Our ESG strategy and priorities, Page 8 Performance Report, Creating value responsibly, Page 47 2-10 Nominating and selection of the highest governance body Proxy Statement Performance Report, Creating value responsibly, Page 47 2-11 Chair of the highest governance body Proxy Statement Performance Report, Our ESG strategy and priorities, Page 8 Role of the highest governance body in overseeing the Performance Report, Creating value responsibly, Page 47 2-12 management of impacts Performance Report Appendix, Stakeholder engagement, Page 58 Proxy Statement Form 10-K, Item 1. Business, Page 3 Proxy Statement 2-13 Delegation of responsibility for managing impacts Performance Report, Our ESG strategy and priorities, Page 8 Performance Report, Creating value responsibly, Page 47 2-14 Role of the highest governance body in sustainability reporting Proxy Statement Performance Report, Our ESG strategy and priorities, Page 8 2-15 Conflicts of interest Code of Conduct Proxy Statement Form 10-K, Item 1A. Risk Factors, Page 18 2-16 Communication of critical concerns Proxy Statement Code of Conduct 2-17 Collective knowledge of the highest governance body Proxy Statement 2-18 Evaluation of the performance of the highest governance body Proxy Statement 2-19 Remuneration policies Proxy Statement 2-20 Process to determine remuneration Proxy Statement 69 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Indicator Description Response 2-21 Annual total compensation ratio Proxy Statement 2-22 Statement on sustainable development strategy Performance Report, A message from our Chairman and Chief Executive Officer, Page 5 Form 10-K, Item 1. Business Strategy, Page 3 Performance Report, Our ESG strategy and priorities, Page 8 2-23 Policy commitments Performance Report, Our mission and values, Page 6 Code of Conduct Respecting human rights Performance Report, Creating value responsibly, Page 47 2-24 Embedding policy commitments Respecting human rights Compliance and ethics 2-25 Processes to remediate negative impacts Compliance and ethics 2-26 Mechanisms for seeking advice and raising concerns Advice line Boston Scientific adheres to all compliance requirements, see compliance references throughout the Performance Report and Bostonscientific.com 2-27 Compliance with laws and regulations Form 10-K, Item 1. Regulatory Environment, Page 9 Form 10-K, Item 8. Financial Statements and Supplementary Data, Note I - Commitments and Contingencies, Page 103 Performance Report Appendix, Metrics summary 2-28 Membership associations Trade association memberships 2-29 Approach to stakeholder engagement Performance Report, Our ESG strategy and priorities, Page 8 Performance Report Appendix, Stakeholder engagement, Page 58 2-30 Collective bargaining agreements Human rights, collective bargaining GRI 3: Material topics 2021 3-1 Process to determine material topics Performance Report Appendix, Materiality, Page 57 3-2 List of material topics Performance Report Appendix, Materiality, Page 57 Form 10-K, Item 1. Business, Page 3 3-3 Management of material topics Performance Report, Our ESG strategy and priorities, Page 8 Performance Report Appendix, Materiality, Page 57 70 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Indicator Description Response GRI 200 201-1 Direct economic value generated and distributed Form 10-K, Item 8. Financial Statements and Supplementary Data, Page 65 Performance Report, Boston Scientific: 2022 at glance, Page 7 201-2 Financial implications and other risks and opportunities due to Form 10-K, Item 1A. Risk Factors, Page 18 climate change Performance Report, Confronting climate risk, Page 44 201-3 Defined benefit plan obligations and other retirement plans Form 10-K, Item 8. Financial Statements and Supplementary Data, Note Q - Employee Retirement Plans, Page 119 202-1 Ratios of standard entry level wage by gender compared to local Labor and human rights, commitment to labor initiatives or standards minimum wage 203-1 Infrastructure investments and services supported Form 10-K, Item 1. Marketing and Sales, Page 8 Performance Report, Transforming care, Page 12 Performance Report, Investing in our people, Page 20 203-2 Significant indirect economic impacts Performance Report, Accelerating possibilities, Page 31 Performance Report, Protecting the environment, Page 38 Performance Report, Creating value responsibly, Page 47 204-1 Proportion of spending on local suppliers Performance Report, Keeping our supply chain resilient and reliable, Page 52 205-1 Operations assessed for risks related to corruption Anti-corruption & governance 205-2 Communication and training about anti-corruption policies Performance Report, Working with compliance, ethics and integrity, Page 50 and procedures 206-1 Legal actions for anti-competitive behavior, anti-trust and Form 10-K, Item 8. Financial Statements and Supplementary Data, Note I - Commitments and Contingencies, monopoly practices Page 103 GRI 300 302-1 Energy consumption within the organization Performance Report, GEMS KPIs, Page 41 Performance Report Appendix, Metrics summary 302-3 Energy intensity Performance Report, GEMS KPIs, Page 41 Performance Report Appendix, Metrics summary 71 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Indicator Description Response 302-4 Reduction of energy consumption Performance Report, GEMS KPIs, Page 41 Performance Report Appendix, Metrics summary Performance Report, GEMS KPIs, Page 41 302-5 Reductions in energy requirements of products and services Performance Report, Enhancing product stewardship, Page 46 Performance Report Appendix, Metrics summary 303-1 Water withdrawal Performance Report Appendix, Metrics summary 303-2 Water discharge Performance Report Appendix, Metrics summary 303-3 Water consumption Performance Report Appendix, Metrics summary 305-1 Direct (scope 1) GHG emissions Performance Report Appendix, Metrics summary 305-2 Energy indirect (scope 2) GHG emissions Performance Report Appendix, Metrics summary 305-5 Reduction of GHG emissions Performance Report, Protecting the environment, Page 38 Performance Report Appendix, Metrics summary 306-1 Waste generation and significant waste-related impacts Performance Report, Protecting the environment, Page 38 Performance Report Appendix, Metrics summary 306-2 Management of significant waste-related impacts Performance Report, Protecting the environment, Page 38 Performance Report Appendix, Metrics summary 306-3 Waste generated Performance Report Appendix, Metrics summary 306-4 Waste diverted from disposal Performance Report Appendix, Metrics summary 306-5 Waste directed to disposal Performance Report Appendix, Metrics summary 307-1 Non-compliance with environmental laws and regulation Performance Report Appendix, Metrics summary 308-1 New suppliers that were screened using environmental criteria Performance Report, Creating value responsibly, Page 47 GRI 400 401-1 New employee hires and employee turnover Performance Report Appendix, Metrics summary 401-2 Benefits provided to full-time employees that are not provided to Benefits temporary or part-time employees 72 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Indicator Description Response 401-3 Parental leave Benefits 403-2 Types of injury and rates of injury, occupational diseases, lost days, Performance Report Appendix, Metrics summary and absenteeism and number of work-related fatalities 404-1 Average hours of training per year per employee Performance Report Appendix, Metrics summary 404-2 Programs for upgrading employee skills and transition Performance Report, Investing in our people, Page 20 assistance programs 404-3 Percentage of employees receiving regular performance and Performance Report, Investing in our people, Page 20 career development reviews 405-1 Diversity of governance bodies and employees Proxy Statement Performance Report Appendix, Metrics summary 405-2 Ratio of basic salary and remuneration of women to men Performance Report, Investing in our people, Page 20 Equal pay for equal work 406-1 Incidents of discrimination and corrective actions taken Compliance and ethics 407-1 Operations and suppliers in which the right to freedom of Human rights association and collective bargaining may be at risk 408-1 Operations and suppliers at significant risk for incidence of Human rights child labor 409-1 Operations and suppliers at significant risk for incidence of forced Human rights or compulsory labor 411-1 Incidents of violations involving rights of Indigenous peoples Human rights 412-1 Operations that have been subject to human rights reviews or Human rights impact assessments 412-2 Employee training on human rights policies or procedures Performance Report, Creating value responsibly, Page 47 Human rights 413-1 Operations with local community engagement, impact Performance Report, Supporting our communities, Page 36 assessments and development programs Community engagement 73 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Indicator Description Response 414-1 New suppliers that were screened using social criteria Performance Report, Creating value responsibly, Page 47 415-1 Political contributions Political contributions 416-1 Assessment of the health and safety impacts of product and Performance Report, Ensuring quality, health and safety, Page 18 service categories 416-2 Incidents of non-compliance concerning the health and safety Performance Report, Ensuring quality, health and safety, Page 18 impacts of products and services 417-1 Requirements for product and service information and labeling Performance Report, Ensuring quality, health and safety, Page 18 Performance Report, Enhancing product stewardship, Page 46 419-1 Non-compliance with laws and regulations in the social and Boston Scientific adheres to all compliance requirements, see compliance references throughout the economic area Performance Report and Bostonscientific.com 74 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Sustainability Accounting Standards Board (SASB) index SASB is an independent standards-setting organization dedicated to improving the effectiveness and comparability of corporate disclosure on ESG factors. The following table summarizes how our existing reporting is guided by recommended disclosure topics and accounting metrics for the Medical Equipment & Supplies industry standard, and it includes references to our 2022 Performance Report, 2022 Annual Report on Form 10-K and other documents available on Bostonscientific.com. Topic Accounting Metric Code Response Ratio of weighted average rate of net price increases (for all HC-MS-240a.1 Not currently disclosed products) to the annual increase in the U.S. Consumer Price Index Affordability & Pricing Description of how price information for each product is disclosed HC-MS-240a.2 Form 10-K, Item 1. Healthcare Policies and Reimbursement, Page 10 to customers or to their agents Class I Recalls: 0 Number of recalls issued, total units recalled HC-MS-250a.1 Class II Recalls: 12 Total units recalled: 101,103 List of products listed in the FDA's MedWatch Safety Alerts for HC-MS-250a.2 FDA's MedWatch Safety Alerts for Human Medical Products database Product Safety Human Medical Products database Number of fatalities related to products as reported in the FDA HC-MS-250a.3 FDA Manufacturer and User Facility Device Experience (MAUDE) database Manufacturer and User Facility Device Experience Number of FDA enforcement actions taken in response to HC-MS-250a.4 0 in 2022 violations of current Good Manufacturing Practices (cGMP), by type Total amount of monetary losses as a result of legal proceedings HC-MS-270a.1 $0 in 2022 associated with false marketing claims Ethical Marketing Description of code of ethics governing promotion of off-label use HC-MS-270a.2 Code of Conduct, Page 40 of products Performance Report, Creating value responsibly, Page 47 75 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Topic Accounting Metric Code Response The company's commitment to innovation and patient health extends beyond the surgical suite by managing the environmental and human health impact of chemicals in our products Discussion of process to assess and manage environmental through design, manufacture and use. Our design and supplier management processes assess and human health considerations associated with chemicals in HC-MS-410a.1 and manage relevant environmental and chemical requirements. We work with our suppliers products, and meet demand for sustainable products to ensure material compliance of all purchased goods and components, allowing us to make Product Design & responsible material and chemical choices for the design and manufacture of our products. Lifecycle Management Performance Report, Enhancing product stewardship, Page 46 Within participating customers: Total amount of products accepted for take-back and reused, • 97% of LithoVue™ systems recycled in the United States in 2022 recycled, or donated, broken down by: (1) devices and equipment HC-MS-410a.2 (2) supplies • 97% of EXALT™ Model D systems recycled in the United States in 2022 Performance Report, Enhancing product stewardship, Page 46 All Boston Scientific medical device manufacturing facilities are audited by external regulators or applicable authorities. All of our medical device manufacturing facilities and distribution centers are certified under the ISO 13485 quality system standard, established by the Percentage of (1) entity's facilities and (2) Tier I suppliers' facilities International Standards Organization (ISO) for medical devices, which includes requirements participating in third-party audit programs for manufacturing and HC-MS-430a.1 for an implemented quality system that applies to component quality, supplier control, product product quality design and manufacturing operations. A majority of our direct suppliers are ISO certified (for example ISO 9001 or ISO 13485), as applicable, and demonstrate compliance and quality through certification audits. Form 10-K, Item 1. Medical Device Regulatory Approvals, Page 9 Supply Chain Boston Scientific maintains traceability within the manufacturing and distribution chain through Management either serial or batch control of finished products. We: • Leverage product identification technologies, such as barcoding identification to track the Description of efforts to maintain traceability within the HC-MS-430a.2 information of products distribution chain • Utilize enterprise resource planning (ERP) solutions to support identification and control of products once they leave manufacturing sites — including supporting specific patient tracking if required. Our ERP solutions ensure compliance with regulatory, quality and customs control requirements Description of the management of risks associated with the use of HC-MS-430a.3 Form 10-K, Item 1. Manufacturing and Raw Materials, Page 8 critical materials Performance Report, Creating value responsibly, Page 47 76 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Topic Accounting Metric Code Response Total amount of monetary losses as a result of legal proceedings HC-MS-510a.1 $0 in 2022 associated with bribery or corruption Business Ethics Description of code of ethics governing interactions with health HC-MS-510a.2 Code of Conduct, Page 32 care professionals Performance Report, Creating value responsibly, Page 47 Activity Metrics Code Response Number of units sold by product category HC-MS-000.A Not currently disclosed 77 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Task Force on Climate-related Financial Disclosures (TCFD) index The Financial Stability Board’s TCFD was established to help identify the information needed by stakeholders to appropriately assess and price climate-related risks and opportunities. The following table provides responses to key disclosures on climate change and includes references to our 2022 Performance Report, 2022 Annual Report on Form 10-K and other documents available on Bostonscientific.com. Recommendation Disclosure alignment Summary of current state Governance • The Boston Scientific Board of Directors and its committees oversee management of environmental and climate- related risks and opportunities. The board has delegated oversight of sustainability and environment initiatives to its Nominating and Governance Committee, which reviews climate-related issues at least annually, or more frequently a. Describe the board’s oversight of as needed. The board’s Risk Committee has been delegated authority to oversee the company’s business continuity climate-related risks and opportunities. and resiliency plans, including those related to climate risks. These meetings cover the strategy necessary to mitigate and adapt to climate change, as well as ensuring that the company's business plans will allow for such measures to take place. Climate-related risks, updates on targets, opportunities and strategy are escalated to the full board as appropriate. Members of the board have environmental, health, safety and sustainability, and risk competencies. Disclose the organization’s • The CEO is responsible for progressing the Boston Scientific environmental sustainability goals with delegated governance around climate-related support from an ESG Executive Steering Committee, the vice president of ESG and subject matter experts. risks and opportunities. Additionally, the CEO has sustainability goals as a component of their individual performance objectives, which are set by the Board of Directors. b. Describe management’ s role in assessing • In furtherance of our commitment to sustainability, an ESG scorecard, designed to incentivize companywide progress and managing climate-related risks and toward diversity, equity and inclusion (DE&I), engagement and environmental goals, has been a part of our annual opportunities. bonus plan (for all bonus eligible employees, including senior leadership) since 2021. Additional resources: Performance Report, Protecting the environment, Page 38 Annual Proxy Statement, Pages 30-31 78 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Recommendation Disclosure alignment Summary of current state Strategy a. Describe the climate-related risks and • The effects of global climate change present risks to our business. Natural disasters, extreme weather and other opportunities the organization has conditions caused by or related to climate change could adversely impact our supply chain, including manufacturing identified over the short, medium, and and distribution networks, the availability and cost of raw materials and components, energy supply, transportation, long term. or other inputs necessary for the operation of our business. Climate change and natural disasters could also result in physical damage to our facilities as well as those of our suppliers, customers and other business partners, which could cause disruption in our business and operations or increase costs to operate our business. Additionally, Disclose the actual and potential impacts of b. Describe the impact of clima te- increased environmental regulation, including to address climate change, may result in increases in our costs to climate-related risks and opportunities on related risks and opportunities on the operate our business or restrict certain aspects of our activities. The extent and severity of climate change impacts the organization’s businesses, strategy, and organization’s businesses, strategy, and are unknown, and therefore, the scope of potential impact on our business may be difficult to predict, and it may be financial planning where such information is financial planning. difficult to adequately prepare. material. • To help mitigate future business exposure to the effects of climate change, Boston Scientific partnered with leading climate change experts to formally integrate climate risk exposure assessments into our strategic planning process c. Describe the resilience of the and annual operating plans to help inform our facilities and global supply chain network investments. organization’s strategy, taking into • Leveraging this partnership, the company also recently conducted a detailed climate-related scenario analysis consideration different climate- covering SSP1-2.6, SSP2-4.5 and SSP5-8.5 for the 2030 and 2050 time horizons across all key facilities, which we related scenarios, including a 2°C continue to assess and evaluate. or lower scenario. Risk Management a. Describe the organization’s processes • Climate change risk is incorporated and managed as part of the Boston Scientific enterprise risk management (ERM) for identifying and assessing climate- process. Climate change risks include transitional and physical risks. related risks. • The Boston Scientific ERM framework is considered as a part of the company’s strategic decision-making process. The b. Describe the or ganization’s processes for Board of Directors receives regular enterprise risk management updates, participates in the ERM process and receives managing climate-related risks. a presentation of the results annually. Disclose how the organization identifies, assesses, and manages climate-related risks. • Climate risk is further managed by the Risk and Resiliency Center of Excellence that has mapped 100 risks including c. Describe how pr ocesses for identifying, climate change, for each of the company’s products in order to identify and mitigate inherent risks across our value assessing, and managing climate- chain (including Tier 1 suppliers). related risks are integrated into the Additional resources: organization’s overall risk management. Performance Report, Protecting the environment, Page 44 Performance Report, Creating value responsibly, Page 54 79 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix Recommendation Disclosure alignment Summary of current state Metrics and Targets a. Disclose the metrics used by the • Disclose and report on climate-related targets: carbon neutrality by 2030 inclusive of all manufacturing and organization to assess climate-related key distribution centers only (scopes 1 and 2) and net-zero emissions by 2050 across our entire value chain risks and opportunities in line with its (scopes 1, 2 and 3). In 2022, our science-based net-zero target and near- and long-term emission reduction targets strategy and risk management process. were approved by the Science Based Targets initiative (SBTi). Disclose the metrics and targets used to assess and manage relevant climate- b. Disclose sc ope 1, scope 2 and, if • Aligned with our submission to SBTi, we calculated our scopes 1, 2 and 3 emissions following the GHG Protocol, related risks and opportunities where such appropriate, scope 3 greenhouse gas as disclosed in our assessment on the CDP platform. information is material. (GHG) emissions and the related risks. • We use and disclose a wide range of climate-related metrics and report to CDP (2022 score: B). c. Describe the t argets used by the • Manage and disclose our zero-waste target by 2030 and manage and disclose water resources and metrics. organization to manage climate-related Additional resources: risks and opportunities and performance Performance Report, Protecting the environment, Page 38 against targets. Performance Report Appendix, Metrics summary 80 2022 Performance Report
Introduction Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly Appendix United Nations Sustainable Development Goals (SDGs) The United Nations SDGs are a set of 17 global goals with the aim to end poverty, fight inequality and injustice, and tackle climate change by 2030. The following table summarizes how our reporting aligns with the SDGs. More information on our priorities can also be found in Our ESG strategy and priorities. Transforming care Investing in our people Accelerating possibilities Protecting the environment Creating value responsibly 81 2022 Performance Report
Cautionary Statement Regarding Forward-Looking Statements This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by words like “anticipate,” “expect,” “project,” “believe,” “plan,” “may,” “estimate,” “intend”, “will” and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. These forward-looking statements include, among other things, statements regarding our financial and operating performance; our business and environmental, social and governance (ESG) plans, performance and goals, including our environmental targets; clinical trials; and product launches, performance and impact. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this report. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements. Risks and uncertainties that may cause such differences include, among other things: current and future U.S. and global economic, political, competitive, reimbursement and regulatory conditions; the impact of foreign currency fluctuations; manufacturing, distribution and supply chain disruptions and cost increases; disruptions caused by cybersecurity events; disruptions caused by extreme weather or other climate change related events; disruptions caused by the COVID-19 pandemic on our operations and financial results; labor shortages and increases in labor costs; new product introductions; expected procedural volumes; the closing and integration of acquisitions; demographic trends; intellectual property rights; litigation; financial market conditions; the execution and effect of our business strategy, including our cost-savings and growth initiatives; and future business decisions made by us and our competitors. New risks and uncertainties may arise from time to time and are difficult to predict, including those that have emerged or have increased in significance or likelihood as a result of the COVID-19 pandemic. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A — Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may update in Part II, Item 1A — Risk Factors in Quarterly Reports on Form 10-Q we have filed or will file hereafter. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this report. All images are the property of Boston Scientific. All trademarks are the property of their respective owners. ©2023 Boston Scientific Corporation or its affiliates. All rights reserved. PR2023