Task Force on Climate-Related Financial Disclosures (TCFD) Summary The Financial Stability Board, which is committed to market transparency and stability, established the Task Force on Climate-Related Financial Disclosures (TCFD) to develop recommendations for more effective climate-related disclosures. The following summarizes PayPal’s approach to addressing climate-related governance, strategy, risk management and metrics and targets in alignment with the TCFD recommendations. Our full TCFD Index is available here. Governance Strategy Risk Management Metrics & Targets Overview of PayPal’s governance structure and Discussion of the actual and potential impacts of Description of how PayPal identifies, assesses and Disclosure of the metrics and targets PayPal uses oversight of climate-related risks and opportunities climate-related risks and opportunities on PayPal’s manages climate-related risks to assess and manage relevant climate-related risks business, strategy and financial planning and opportunities • The Corporate Governance and Nominating • PayPal considers both transitional and physical risks • ESG-related risks, including climate-related risks, • PayPal discloses climate-related metrics related Committee of PayPal’s Board oversees ESG matters in the short term (zero to three years), medium term are integrated in our enterprise risk assessment. to total energy consumed, percentage renewable generally, including environmental sustainability (three to five years) and long term (five to 10 years). We identify and prioritize ESG risks and opportunities energy and Scope 1, 2 and 3 greenhouse gas (GHG) management, with responsibilities such as reviewing • The Company recognizes the potential physical and through our significance assessment, refreshed emissions. progress in developing and implementing strategies transition risks for its operations and supply chain, annually. • In 2021, we established science-based emissions- for managing environmental topics (inclusive of even as the overall risk to our business from climate • We apply the Three Lines of Defense model reduction targets informed by stakeholder climate-related risks and opportunities). change is likely low. (management, oversight and independent assurance) consultation and validated by the Science Based • Management and designated internal leaders provide • As part of PayPal’s mission to democratize financial to manage risks and our Enterprise Risk and Targets initiative (SBTi) to demonstrate progress regular updates to the Board and relevant committees services, we are exploring opportunities for our Compliance Management Program sets PayPal’s toward our long-term goal of reaching net-zero on climate- and ESG-related topics. digital payments technology to support an equitable programmatic approach to identifying, measuring, GHG emissions across our operations and value transition to a global net-zero economy. managing, monitoring and reporting key risks facing chain by 2040: • We began a climate risk assessment and scenario the Company. – Reduce absolute operational GHG emissions analysis using three scenarios to further understand • The Enterprise Risk Management Committee by 25% by 2025 (from a 2019 base year) potential short-, medium- and long-term climate risks (ERMC), co-chaired by PayPal’s Chief Risk and and opportunities for PayPal. Compliance Officer and Chief Enterprise Services – Engage 75% of our suppliers, by spend, to set Officer, and delegated subcommittees oversee the science-based targets by 2025 implementation and execution of our program. – Source 100% of our data center energy use • An ESG Steering Committee consisting of senior with renewable energy sources by 2023 leaders across PayPal regularly reports on emerging (achieved in 2021) ESG risks that affect PayPal’s business, including climate-related risks, to a subcommittee of the ERMC.