Mitigating Our Climate-Related Risks We’ve established a long-term goal of achieving net- as a result of post-pandemic workplace repopulation. zero GHG emissions across our value chain by 2040, as At the same time, we reached 90% total renewable Understanding & Managing Our Climate-Related Risks Environmental well as medium-term science-based GHG emissions energy use and maintained 100% renewable energy We recognize that climate change poses current and future physical and Performance by the reduction targets as validated by the Science-Based sourcing for our data centers. This expanded approach Numbers Targets initiative (SBTi).93 to renewable energy procurement helped to further transition risks for PayPal, including the impact of extreme weather conditions reduce our operational GHG emissions (Scope 1 and 2) on our facilities and the effect of existing and emerging global regulations 0.5 We’re also exploring ways to help disadvantaged by 26% from 2021, even with our generally stable 2022 across our value chain. grams CO2e per communities capture opportunities and adapt their energy use. Consistent with the Task Force on Climate-Related Financial Disclosures transaction97 lives to changing global climate conditions through (TCFD) recommendations, and building on the climate risk assessment we partnerships and digital finance tools and services. We are currently on track to meet our SBT for reducing conducted in Europe, we began an enterprise climate risk assessment and 100% Scope 1 and 2 emissions 25% by 2025, with those scenario analysis using three scenarios from the Network for Greening the emissions down 80% relative to our 2019 base year.95,96 data center renewable 2022 Energy & Operational Financial System to evaluate potential short-, medium- and long-term climate energy use Emissions Trends We continue to pursue cost-effective emissions risks and opportunities for PayPal. Initial results identified key risks for PayPal, reduction opportunities across our direct operations including physical, operational, regulatory and reputational risk. See our -80% Our global energy use remained relatively flat (+1% from and our broader value chain, even with PayPal’s TCFD Index and our CDP Climate Questionnaire for the latest information 98 2021) as data center power use remained steady and relatively small GHG emissions footprint compared on our climate-related risks and opportunities. operational GHG emissions office energy use increased moderately through 2022 to other companies. (since 2019) Energy Use & Renewable Energy GHG Emissions Global Energy Use by Facility Type Renewable Energy Operational Greenhouse Gas Emissions by Scope Value Chain Greenhouse Gas Emissions (MWh in thousands)94 (% of Global Energy Use) (Thousands MT CO2e) (Thousands MT CO2e)100,101 300 100% Data Center 60 600 264.1 Goal: 100% 53.1 250 256.6 259.8 98% 100% 100% by 2023 50 500 80% 88% 90% 522 65.0 51.7 59.6 40 Emissions 507 200 76% Reduction 400 60% Goal: 25% 150 30 46.6 by 202595,96 300 40% 25.1 100 199.1 204.9 200.3 20 200 20% 22.1 14.3 10.6 50 10 11.7 100 6.5 6.7 0 0 0 3.0 2.6 3.9 0 2020 2021 2022 2020 2021 2022 2019 2020 2021 2022 2021 2022 Facilities Data Centers Total Energy Data Center Energy Scope 1 Scope 2 (MBM)99 Scope 3 93 97 100 PayPal’s Science-Based Targets are informed by stakeholder consultation and validated by the Science-Based Targets initiative (SBTi). Calculation includes operational emissions from all Scope 1 and 2 sources, including corporate jet. Scope 3 inventory includes Fuel and Energy Related Activities (FERA), Business Travel emissions from air, rail, rental car and hotel lodging, 94 98 Spend-Based Purchased Goods & Services, Crypto Activity-Based emissions, Capital Goods, Upstream Transportation and Distribution, and Our 2022 energy and operational emissions include warehouse site activities associated with our recent acquisition of Happy Returns. Operational greenhouse gas emissions include those emission sources covered by Scope 1 and Scope 2 as Warehouse energy consumption represented less than 1% of our global energy consumption in 2022. defined by the Greenhouse Gas Protocol and the Science-Based Targets initiative. In 2019, the base year for our Employee Commuting and Remote Working. Total Scope 3 emissions estimates are rounded to the nearest 1,000 metric tons CO2e to reflect 95 operational emissions target, Scope 1 and 2 emissions totaled 53,100 metric tons. While we observed operational limitations in the underlying data sources and estimation methodologies. Operational greenhouse gas emissions include those emission sources covered by Scope 1 and Scope 2 as defined by the 101 Greenhouse Gas Protocol market-based method (MBM) and the Science-Based Targets initiative. GHG reductions exceeding our 2025 goal, we recognize that in future years this may change as employees return Cryptocurrency-related emissions are estimated using calendar year activity data and the Hybrid Emissions Allocation Method as presented 96 to the office and the Company continues to grow. in the Accounting for Cryptocurrency Climate Impacts guidance published by Crypto Carbon Rating Institute and South Pole in 2022. In 2022, In 2019, the base year for our operational emissions target, Scope 1 and 2 emissions totaled 53,100 metric tons. 99 we estimate that emissions from our crypto services represented approximately 13% of our Scope 3 emissions inventory. Cryptocurrency- Scope 2 emissions data is calculated using the GHG Protocol market-based method (MBM), which includes purchases of off-site renewable energy. related emissions are accounted for as purchased goods and services, consistent with the GHG Protocol, Value Chain Standard.