Prioritizing Efficient & Renewable our supply chain, with vendor activities representing Supporting Digital Finance Solutions Generating Economic Opportunity Energy Use an estimated 95% of our Scope 3 footprint in 2022. This for Climate Resilience Through Clean Energy PayPal again earned estimate helps to illustrate the importance of our efforts Over the past two years, the U.S. Environmental to engage 75% of our suppliers, by spend, to set SBTs PayPal is a founding member of the Climate Innovation We continue to invest in climate impact projects PayPal’s real estate, Protection Agency Green by 2025, a goal that we hope to primarily achieve by for Adaptation and Resilience (CIFAR) Alliance, a that promote renewable energy and improve living construction and facilities Power Partnership Top 100 working with PayPal’s top 300 suppliers. We will also global initiative working to provide climate adaptation standards for those with limited means. Clean energy teams have installed rating, ranking among the continue to educate our employees on sustainable and resilience tools and resources to 1 billion of the technologies for cooking and lighting help underserved energy-efficient LED country’s largest renewable business travel options and eco-friendly practices for world’s most vulnerable people. The CIFAR Alliance families, women and children spend less time laboring energy procurers. 107 lighting systems across remote working and commuting. evolved from the Digital Finance for Climate Resilience and more time learning or generating income. In 2022, nearly 1 million square feet (92,170 square meters) of Task Force launched in 2021. The Alliance brings PayPal: PayPal workspace at 19 office locations globally. An To help meet our supply chain-focused SBT, we’re together over 40 members, funders and contributing estimated 9,900 long-life LED lamps will save 7.5 million partnering with CDP to provide information and organizations, representing expertise across digital • Retired recent-vintage carbon credits representing kilowatt-hours of energy over their useful life, equivalent resources to help our largest vendors, by spend, innovation, economic development and climate. 6,000 metric tons of avoided emissions from Project to the energy needed to power approximately 700 U.S. develop GHG inventories and learn more about SBTs. Shine, an efficient lighting initiative that, to date, 102 In 2022, 39% of our suppliers by spend have or In 2022, the Alliance: has helped distribute 14.5 million LED bulbs to homes for one year. Where feasible, the LEDs are 105 over 3 million households across India, preventing paired with smart control systems that sense occupancy committed to set an SBT (up from 30% in 2021). • Launched the Carbon Finance Opportunity Brief, 108 and daylight to optimize energy efficiency and light which explores how the voluntary carbon market 1.3 million metric tons of CO2e. quality for worker health and productivity. We acknowledge that there are current limitations in our • Provided financial support for new clean cookstove ability to influence GHG emissions outside of PayPal’s could help provide economic incentives for climate direct control. We continue to engage with vendors, mitigation and adaptation in Africa. projects in Mexico and Guatemala, where credit In 2022, PayPal joined 100% renewable energy tariffs in verification and retirement are underway. San Jose, CA and Scottsdale, AZ, U.S. supporting the industry peers, GHG accounting standard-setters and • Coached over 30 African entrepreneurs, including greening of local power grids. environmental non-governmental organizations to learn 50% women, in blue carbon venture-building, helping • Partnered with Gold Standard Foundation to offer more about best practices in sustainable supply chain to form seven climate impact start-ups across six PayPal employees the opportunity to purchase While most of our computing occurs in PayPal data management and will use these findings to continue countries. high-quality carbon credits, with PayPal matching center premises, we continue to migrate to cloud 109 working toward our goal. those donations. service providers who either have achieved or are 103 committed to achieving 100% renewable energy. This transition supports improvements in computing and Working to Decarbonize Business Travel data storage efficiency, as well as energy consumption. Vendor Science-Based Target Progress In 2022, we redeployed more than $300K of (% of supply chain by spend)105,110 Managing Emissions Across unused travel funds due to reduced travel during 39% of current vendors have Goal: the COVID-19 pandemic to stimulate demand for or committed to an SBT 75% by 2025 Our Supply Chain sustainable aviation fuel (SAF). SAF represents (+12% from 2020 baseline) As part of our commitment to continuous improvement, an emerging low-carbon technology with the 15.7% 20.8% 2.3% 61.2% we’ve taken steps to share a preliminary estimate of our potential to significantly reduce the climate 106 0% 20% 40% 60% 80% 100% indirect (Scope 3) emissions from relevant 2022 value impacts of commercial air travel. Science-Based Target: Set Science-Based Target: Committed Science-Based Climate Goals 104 No Climate Goals or Unknown chain activities, please see Appendix to learn more. The majority of our value chain emissions come from 102 104 105 106 107 108 109 110 Assumes LEDs are 45% more efficient Scope 3 emissions inventory methodologies are imprecise and presented as estimates. Purchased We’ve restated prior period According to the International According to the Global We purchased and Carbon credit purchases from To calculate the progress toward our goal of reaching 75% than comparable fluorescent lamps, goods and services, capital goods and upstream transportation and distribution emissions estimates values based on refinements Air Transport Association, Alliance for Clean Cooking, retired 6,000 metric eligible nonprofits by PayPal vendors by spend with a science-based target (SBT), we an average LED power of 17 watts, and are determined using annual procurement spend and Economically Extended Input-Output in assessment methodology sustainable aviation fuel has been time poverty is the result of tons of vintage 2021 employees are eligible to be consider relevant annual spend with vendors who have set or average LED life span of 50,000 hours. emissions factors as published by the U.S. Environmental Protection Agency. Employee emissions are to include vendor spend from shown to provide significant loss of time due to unpaid work carbon credits, which matched by PayPal for climate committed to setting a SBT validated by the Science-Based Average U.S. home energy consumption: estimated using average office occupancy data, employee transportation survey data and estimated relevant Scope 3 categories reduction in overall CO2 lifecycle such as collecting clean water received independent impact philanthropy. Climate impact Targets initiative (SBTi), or have publicly disclosed a greenhouse 10,632 KWh. Sources: eia.gov. incremental household energy intensity due to working from home. As a software and services only, including purchased goods emissions compared to fossil and firewood. It is a global verification and have philanthropy matching is subject to gas (GHG) emissions reduction goal that is aligned with the 103 business, substantially all of PayPal’s products and services are digital. Our preliminary analyses show and services, capital goods, fuels, up to 80% in some cases. issue that carries widespread been retired on a our existing match of $2,500, which latest SBTi criteria, even if not validated by SBTi. For vendors All PayPal data center premises are housed in co-location data center that downstream Scope 3 emissions categories are not currently a material source of emissions for business travel and upstream Source: Sustainable Aviation impacts on women, their public carbon credit includes giving and volunteering, with an SBT set or commitment to set an SBT, their targets have facilities. PayPal. We will continue to assess the relevance and materiality of all Scope 3 emissions categories. transportation and distribution. Fuels: Fact Sheet 5, Dec 2018. families and their communities. registry. per year per employee. been verified against the latest SBTi v4.2 and v5 criteria.