Materiality Assessment

McCormick's customers, consumers, employees, communities, shareholders and suppliers, are critical stakeholders, whom we regularly engage with through a variety of channels. We complete horizon scanning and benchmarking to stay abreast of the external environment, including activities and interests of IGOs, NGOs and trade bodies as well as investors, industry analysts, customers and suppliers.

Our participation in professional networks and strategic partnerships enable us to gain a deeper understanding of impact, risks and opportunities from a value-chain perspective, prioritizing activities with the greatest benefit.

In our 2021 materiality assessment, we sourced topics and their relevancy from stakeholder engagement including surveys and interviews, and leading third-party reporting frameworks, standard-setters, rating agencies and providers. Material topics were stratified across three tiers of material topics. The Strategic tier reflects topics where we can show leadership and differentiate ourselves, the Priority tier reflects priority material topics and the Material tier reflects general material topics. Additionally, we designated topic categorization under People, Communities, Planet and Governance.

In 2024 we completed a Double Materiality Assessment (DMA), which considers both an “outside in” and “inside out” perspective. This allows us to reassess our most relevant ESG topics through both an Impact and Financial Material lens. We continue to take a disciplined, data-driven approach, remaining well positioned to advance our leadership and differentiation and deliver long-term value for all of our stakeholders.

The use of the terms “material,” “materiality” and other similar terminology in certain statements we make relating to Purpose-led Performance (“PLP”) and environmental, social and governance (“ESG”) matters, including those in our PLP reports or on our websites, refers to topics that reflect our significant PLP and ESG impacts or to topics that substantially influence the assessments and decisions of stakeholders sourced from stakeholder engagement including surveys and interviews, and leading third-party ESG frameworks, standard-setters, rating agencies and providers. We do not use these terms as they have been defined by or construed in accordance with the securities laws or any other laws of the United States or any other jurisdiction, or as these terms are used in the context of financial statements and financial reporting. No communication in our PLP reports, websites or other statements we make related to PLP and ESG matters are intended to be construed to indicate otherwise.