Environmental 2022 Summary Highlights Sustainability • 26% reduction in direct emissions compared to 2021.88 • Undertook a climate risk assessment and scenario 2022 Progress on Our Science-Based At PayPal, we work to mitigate our environmental footprint and analysis as part of enhancements to risk management Climate Goals89 advance sustainable practices in the communities where we practices and TCFD disclosure. GOAL: 2022 PROGRESS: operate, even with PayPal’s relatively small GHG emissions • Joined the Climate Innovation for Adaptation & footprint compared to other companies. Resilience (CIFAR) Alliance as a founding member to Reduce absolute 80% operational support responsible innovation in digital finance for operational GHG emissions reduction 88 90 Our Environmental Sustainability Policy and ISO emissions by 25% from 2019 base year 14001-aligned environmental management system help climate adaptation and resilience. by 2025 (from a 2019 to guide our environmental sustainability strategy. This • Reached 90% total renewable energy use. base year) includes our science-based approach to mitigating • Enabled customers to donate more than $1 million Engage 75% of our Approximately 39% of greenhouse gas (GHG) emissions, efficiently managing our in natural disaster relief to impacted communities. suppliers, by spend, suppliers, by spend, natural resources, exploring environmental innovations to set science-based have or committed across our products and services and engaging our 91,92 targets (SBTs) by 2025 to a SBT employees in sustainability. “In 2021, PayPal achieved 100% renewable energy sourcing for our data centers, a tremendous milestone Achieve 100% Maintained 100% PayPal is well positioned to help catalyze digital financial for the company. Building on this progress, renewable energy for of our global data innovations to promote greater resilience among we are continuing to find new ways to global data center center energy use with underserved communities, support relief efforts to those reduce and offset our carbon footprint, operations by 2023 renewable generation impacted by climate change and reduce our impact on and advance sustainable practices in the sources the environment. communities where PayPal operates.” Greg Sly SVP, Infrastructure Sacramento, CA, U.S. In This Section SDGs Reflected in This Section • Mitigating Our Climate-Related Risks • Managing Our Natural Resources 88 Direct/operational greenhouse gas emissions include those emission sources covered by Scope 1 and Scope 2 market-based method (MBM) as defined by the Greenhouse Gas Protocol and the Science-Based Targets initiative. 89 PayPal’s Science-Based Targets are informed by stakeholder consultation and validated by the Science-Based Targets initiative (SBTi). 90 While we observed operational GHG reductions exceeding our 2025 goal, we recognize that in future years this may change as employees return to the office and the Company continues to grow. 91 To calculate the progress toward our goal of reaching 75% vendors by spend with a SBT, we consider relevant annual spend with vendors who have set or committed to setting a SBT validated by the SBTi, or have publicly disclosed a greenhouse gas (GHG) emissions reduction goal that is aligned with the latest SBTi criteria, even if not validated by SBTi. For vendors with an SBT set or commitment to set an SBT, their targets have been verified against the latest SBTi v4.2 and v5 criteria. 92 We continue to refine our assessment methodology to include vendors within relevant Scope 3 categories, including purchased goods and services, capital goods, business travel and upstream transportation and distribution.