Best Buy Co. Inc’s corporate lobbying may exacerbate existing systemic racial inequities and
could potentially impinge upon civil and human rights. Financial, reputational and legal risks
related to the company’s lobbying activity could also adversely affect shareholder value.

Despite Best Buy Co. Inc.’s commitment to addressing racial inequality, the company was found to be the top national retail corporation supporting retail industry groups opposing state criminal justice reforms and supporting harsher anti-shoplifting laws (https://bit.ly/2KuL0Lj). These lobbying activities have resulted in negative press because of their harmful impacts on communities of color. (https://bit.ly/2LFhsvh)

Corporate lobbying that is inconsistent with racial equity poses a systemic risk to economic stability and introduces uncertainty and volatility into investment portfolios. As a recent Citi GPS: Global Perspectives & Solutions study has found, “closing racial gaps is a pareto improvement to both the U.S. economy and society.” If racial gaps had been closed 20 years ago, U.S. GDP could have benefited by an estimated $16 trillion (http://citi.us/3gNyDWS).

Lobbying against criminal justice reform and to increase incarceration levels also contributes to economic instability. It has been shown that mass incarceration costs $182 billion a year
without contributing to public safety. It also furthers racial gaps across a variety of factors
(https://bit.ly/2K6jB2G). We believe that lobbying aligned with Best Buy’s stated commitment
to racial equity helps to mitigate these risks and contributes positively to the long-term value of
our investment portfolios.

Of particular concern are trade associations and other politically active organizations that speak
for business but too often present forceful obstacles to addressing racial equity. In several
instances, these associations, which received direct financial support from Best Buy Co. Inc,
lobbied in support of stricter shoplifting laws by opposing criminal justice reform, supporting
criminal justice reform rollback and tougher shoplifting sentences, and lowering the bar for
felony charges related to shoplifting (https://bit.ly/389RuHE).
These lobbying stances and focus on low-level offenses increase race-based economic burdens
and further criminalizes poverty (https://bit.ly/3ml0IWI).

Excessively strict shoplifting laws and policies contribute to racial enforcement disparities, mass
incarceration and alienates potential customers. (https://bit.ly/2K4BFKo).
Several corporations, including Best Buy, have faced legal challenges (https://bit.ly/2Kt6XKM)
and large lawsuits (https://bit.ly/3r1dtcL) for racial discrimination related to these laws and
policies. In addition, corporations that have supported strict anti-shoplifting policies have faced
potential boycotts by consumers for the policies’ racial equity impacts (https://bit.ly/34irjxE).

RESOLVED: Shareholders request that the Board of Directors conduct an evaluation and issue a
report within the next year (at reasonable cost, omitting proprietary information) describing if
and how Best Buy Co. Inc.’s lobbying activities (direct and through trade associations) align with
the goal of embracing equality and justice and fighting against systemic racism. The report
should also address the risks presented by any misaligned lobbying and the company’s plans, if
any, to mitigate these risks.