ESGOVERSIGHTANDHIGHLIGHTS ESGStrategy 2022ESGPerformanceHighlights OurannualGlobalImpactReporthighlightsPayPalsprogramsandprogressacrossourfourESGpillars: ResponsibleBusinessPractices PRO XY Wecontinuedtofocusonmaintainingandenhancingouroversightandgovernancepractices,includingby: S T A • Prioritizing responsible use of data through promotinga privacy-firstculture, includingour five principlesof ResponsibleAI. TEMENT • IncorporatingthemanagementofsignificantESGtopics,suchasriskandcomplianceandDIE&B,intotheindividualperformance componentofourexecutiveAnnualIncentivePlan. • ContinuingtoimplementaproactivesecurityphilosophythroughourISO27001certifiedinformationsecurityprogramand strengtheningpartnershipstoeducateandprotectemployeesandconsumersagainstfraud. SocialInnovation Weworkedtoprovidemerchants,entrepreneurs,consumersandnonprofitsthetoolstheyneedtothriveinthedigitaleconomy, includingby: • Launchingnewwaysforconsumerstosaveandmanagetheirmoneythroughproductsthatsupportfinancialflexibilityincluding PayPalRewards,expandedglobalpaylatersolutionsandmoreseamlessoptionsatcheckout. • Facilitating efficient access to $4.2 billion in capital for entrepreneurs and small businesses. • Promotingconsumerdataprotectionthrougheducationandtools,includingtheintroductionofpasswordlessauthenticationwith passkeys. • AcceleratingmoreseamlessgivingacrossPayPalsfourgivingchannels,whichenabledourcustomerstodonatemorethan $20billiontosupportglobalnon-profits,charitiesandcauses,includingmorethan$600millionforthehumanitariancrisisinUkraine. Employees&Culture Westrivedtocreateapositive,supportiveandcollaborativeworkplacewhereallemployeescanthriveby: • RevampingourGlobalTalentAcquisitionstrategyandcreatingnewdevelopmentprogramsforouremployeesglobally. • PromotingourDIE&Bstrategytoattractanddeveloptoptalentthatcancreateproductsandservicestoservethefullspectrumofour customers. • Continuingtocreateopportunitiesforemployeestodedicatetheirtime,expertiseandresourcestosupportlocalcommunities worldwidethroughskills-basedvolunteering. EnvironmentalSustainability Wesoughttoresponsiblymanageourenvironmentalimpactandfocusonaddressingclimatechange,managingnaturalresources, exploringenvironmentalinnovationandengagingpartnersacrossourvaluechainonenvironmentalaction,includingby: • Demonstratingprogresstowardsourgoaltoreachnet-zerogreenhousegasemissionsacrossourvaluechainby2040andmeetour interim science-basedtargetsby2025. • Maintaining100%renewableenergyuseinourglobaldatacenters. HumanCapitalManagement GlobalTalentStrategy PayPalrecognizesthefundamentalimportancetoourbusinessofattracting,recruiting,developingandretainingdiverse talent through a comprehensiveapproachtomanagingourglobaltalent(humancapital)toenableustocreateinnovative productsandservicesforourcustomersandtoserveourstockholdersandotherstakeholders.TheCompensation Committeeoverseesourapproachtoglobaltalent,whichismanagedbyourEVP,PeopleandSourcing.TheBoardand executivemanagementreceiveregularreportsonourapproachandresultswithrespecttoourglobaltalentstrategy. Weremainfocusedonsupportingouremployeesacrossthefullemployeelifecyclefromrecruitment,onboardingand developmenttooffboarding.Wedothisbystrivingtoactivelylistentoourworkforce,broadenourtalentpipeline,promote thephysical,mentalandfinancialwellnessofouremployeesandenableflexibilityandcollaborationinanevolvingwork environment.In2022,webeganintegratingtheLeadershipPrinciplesacrossourglobaltalentstrategytohelpshapeour programsthroughtheemployeelifecycleandachievekeybusinesspriorities. •2023ProxyStatement 41