PROXYSTATEMENTSUMMARY ESGGovernance&2022Highlights ESGGovernance&2022Highlights Ourgovernanceframeworkisdesignedtoprovidesoundcompanyoversight,driveBoardandmanagementaccountability anddemonstratePayPalscommitmenttotransparency,independenceanddiversity.Wetakeadecentralizedapproachto managementofESGwithintheorganization,ledbyoversightfromourBoardandstrategy-settingfromseniorleadership. PRO TheentireBoardengagesonESGmattersthatimpactbusinessstrategy,andBoardcommitteesaretaskedwithoversight XY of specific matters. ManagementbriefsBoardcommitteesandexecutivemanagementonESGtopicsonaquarterlybasis S andmeetswithasubcommitteeoftheEnterpriseRiskManagement(“ERM”)Committeeatleastannuallytoreviewcurrent T A andemergingESG-relatedrisktopics. TEMENT Oversight g Committee & Wor Our Board of Directors is actively engaged on ESG matters eerin king that impact business strategy. GSt cutive Manageme Grou • Governance Committee:Oversight of PayPals management ES Exe nt p of ESG, including overall ESG strategy, risks and opportunities, stakeholder engagement and programs and initiatives in social innovation and environmental sustainability Governance • Audit, Risk and Compliance (ARC) Committee:Oversight of the companys risk framework and enterprise-wide compliance program, including cybersecurity and privacy matters • Compensation Committee:Oversight of the companys strategies and responsibilities related to human capital PayPal Board (global talent) management, including diversity and Compensation of Directors inclusion, pay equity efforts and corporate culture ARC Management Our executive management directs and manages the execution of our enterprise-wide ESG strategy to ensure non-financial risks and opportunities are appropriately integrated across the Oversight enterprise, including through the ERCM Program Management Implementation Imp ion An ESG steering committee and cross-functional working lementat groups with representatives from more than 20 functions are responsible for overall program implementation PayPalrecognizestheimportanceofoperatingourbusinessinaresponsibleandsustainablemanneralignedwithour missiontobuildamorefinanciallyinclusiveandinterconnectedglobaleconomy.Webelievetheeffectivemanagementof keynon-financialrisksandopportunitiesplaysaroleinfurtheringourstrategyandhelpstocreatevalueforour stakeholders.To that end, in 2022, we continuedto demonstrateprogressacrossthefour dimensionsof our ESG strategy. ResponsibleBusinessPractices StrengthenedourproactivecybersecurityprogramthroughourISO27001certifiedinformationsecurity programandeducatedandprotectedconsumersandemployeesagainstfraud. SocialInnovation Facilitated accessto$4.2billionincapitalforentrepreneursandsmallbusinesses. Employees&Culture Reached56%overalldiverseworkforcerepresentationandcontinuedtobuildonourglobaltalentstrategy to attract, develop and retain top talent. EnvironmentalSustainability Demonstratedprogresstowardsourscience-basedclimatetargetsacrossourvaluechainandmaintained 100%renewableenergyforourdatacenters. FormoreinformationonourESGstrategyandprogram,see“ESGOversightandHighlights”beginningonpage38ofthis proxystatement,andourmostrecentGlobalImpactReport,whichisavailableathttps://investor.pypl.com/esg-strategy. •2023ProxyStatement 11