ESGOVERSIGHTANDHIGHLIGHTS ESGStrategy ESGSignificanceAssessment Building on PayPals comprehensiveESGsignificance*assessmentconductedin2020,wereviewourESGsignificance mapannuallytohelpusfocusonthetopicsthataremostimportanttoourbusinessandstakeholders.In2022,we reaffirmedour 18 key ESG topics,including8 priority risks and opportunitiesthat have been noted as significantfor PayPal to drive long-term businessperformanceandimpactbasedonstockholderandotherfeedback.ThefindingsfromourESG significanceassessmentserveasanimportantinputtoinformhowwestrategicallydeployresourcesacrosstheenterprise andrefineourprograms. * AsusedinthisproxystatementinreferencetoESGmatters,theterm“significance”andvariationsthereofrefertosignificancewithinthecontextofourESGstrategies,activities, progress, metrics and performance.Suchtermisdistinctfrom,anddoesnotreferto,conceptsofmaterialityusedinsecuritiesorotherapplicablelaw,anduseofsuchtermisnotan indicationthat PayPal deems relatedinformationto be material or importantto an understandingof the business or an investmentdecisionwith respectto PayPalsecurities. Cybersecurity & secure transactions Diversity, inclusion, equity & belonging INCREASING IMPORTANCE Climate change Data privacy mitigation Empowering Financial health entrepreneurs, small & inclusion businesses & nonprots Corporate Employee wellness, governance health & safety Social product innovation Human rights Employee recruitment & development ) Community engagement Compliant, ethical & Sustainable supply humane use of products chain management eholder concernNatural resources stak management Climate change Business ethics f adaptation ee o Environmental EXTERNAL STAKEHOLDERS PERSPECTIVEDegrproduct innovation ( PAYPAL PERSPECTIVE INCREASING (Impact on business) IMPORTANCE CATEGORIES: Responsible Business Practices Social Innovation Employees & Culture Environmental Sustainability ESGReportingFrameworks Aspartofourcommitmenttotransparency,weperiodicallyconsiderenhancementstoourESGdisclosuresandreporting andstrivefor alignmentwiththoseframeworksmostapplicabletoourbusinessandmostimportanttoourstakeholders. OurGlobalImpactReportprovidesspecificreportingofourESGprograms,policiesandmetricsmappedtoGlobal ReportingInitiative standardsand SustainabilityAccountingStandardsBoardstandards,asapplicable. Wecontinuetodevelopourclimate-relateddisclosuresinaccordancewiththerecommendationsoftheTaskForceon Climate-relatedFinancialDisclosures(“TCFD”) andseektoprovideclearreportingonthegovernance,strategy,risk managementandtargetsthroughourTCFDIndexandourannualCDPclimatechangequestionnaire.Werecently enhancedourindextoincludeinitialfindingsofourfirstclimateriskscenarioassessment,whichidentifiedshort-,medium- andlong-termrisksfortheCompany,includingphysical,operational,regulatoryandreputationalrisks. 40 •2023ProxyStatement