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Our Impact Strategy and Progress

We are committed to growing sustainably by aligning our mission, guiding principles, and business strategy.

We have developed an Impact strategy that reflects the positive economic, social, and ecological impact we want to have on the world while advancing and complementing
our business strategy, and we are pleased to provide this update on our progress. Since announcing our Impact strategy in 2017, we have continued to evolve and update
many of our goals to be more specific, measurable, and time bound, all while continuing to expand the transparency of our reporting on these activities. We apply the same
focus, discipline, and accountability to our Impact metrics as we do our financial metrics, and together, they make us stronger and more resilient. We expect to continue to
evolve our Impact strategy and disclosures in the future as we grow and our Impact work matures. In addition, we have made improvements to our Investor website to make
it easier for investors to find details on our Impact strategy and progress, including our three primary Impact pillars, as well as more details on human capital management,
data privacy and security, and other important ESG disclosure areas.

We acquired Reverb in August 2019 and updated our 2020 Impact goals to be inclusive of Reverb. Except where specifically noted, our Impact data includes the operations
of our Reverb subsidiary.

2020 Impact Highlights

Economic Impact Social Impact Ecological Impact

Make creative entrepreneurship a path to economic Build long-term resilience by eliminating our carbon
Enable equitable access to the opportunities that we create.
security and personal empowerment. impacts and fostering responsible resource use.

We have met our goal to double Etsy sellers’ U.S. economic Etsy continued to attract and retain world-class talent in We met our 2020 goal to source 100% of our electricity
output by 2023. U.S. Etsy sellers contributed $13 billion to 2020, with a keen focus on diversity and gender balance. In from renewable energy. This includes electricity used to
the U.S. economy in 2020, up 142% from our 2018 baseline, 2020, Etsy (excluding Reverb) more than doubled the power our global offices, remote electricity used by
created 2.6 million jobs, enough to employ the entire city of percentage of our leadership level employee population who employees working from home in the United States as a
Houston, Texas while generating nearly $4 billion in income identify as an underrepresented minority (Black, Latinx, or result of COVID-19, and our computing load in colocated
to U.S. households. Native American; collectively, “URM”). URM hires data centers and Google Cloud. We also met our goal to run
constituted 20% of U.S. hires in 2020, and our U.S. URM a carbon neutral business for 2020 by investing in over
employee population has increased from 8.5% in 2018 to 400,000 verified emissions reductions that protect forests,
12.5% in 2020. sponsor wind and solar farms, and help develop greener
methods for producing auto parts.

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2020 was an unprecedented year due to the global pandemic and broad social issues impacting our team and the communities we serve. With our Impact strategy as a north
star, we were agile and stepped up our efforts well beyond the scope of the original goals we had outlined for 2020, all while working in a completely remote environment.
Our additional 2020 Impact work included the following:

• Direct Support for Sellers: Expanded seller education to help them manage their shops through this challenging time, implemented seller fee reductions,
expanded our marketing strategies to further support and feature underrepresented minority sellers in our marketplace, and launched advocacy campaigns in the
United States, United Kingdom, and Europe, to win government support and economic relief for small businesses, the self-employed, and sole proprietors, such as
Etsy sellers.

• Philanthropy: Made personal protective equipment (“PPE”) donations and grants to community organizations and programs that enable creative entrepreneurship,
advance racial justice, and help those most impacted by the pandemic, encouraged our employees to participate in charitable organizations through paid volunteer
time off and other activities.

• Expanded Diversity, Equity, and Inclusion Investments: We further expanded our already robust Diversity, Equity, and Inclusion (“DEI”) program while
pivoting hiring, engagement, mentorship, and our Employee Resource Group (“ERG”) program to a remote environment. Our main goal is to create safe spaces for
Etsy employees, strengthen social connections and professional networks, build Etsy’s collective cultural intelligence and increase equitable opportunity. We
continue to expand our ERG communities in 2021 which now includes those focused on remote employees, mental health, and a group for Jewish employees called
Jetsy. In 2020 our ERGs included:

We have started off 2021 by making some important new commitments related to our ecological impact, including:

• Science Based Goals: In January 2021, we set long-term carbon reduction goals that are aligned with science, doing our fair share to prevent the worst effects of
climate change. Our new Net Zero by 2030 goal includes a 50% absolute reduction in our Scope 1 and 2 greenhouse gas emissions and a 13.5% absolute reduction
in our Scope 3 greenhouse gas emissions.

• New TCFD Framework: Based upon feedback from the investment community, we have added the Task Force on Climate-Related Financial Disclosures
(“TCFD”) framework, in addition to using The Sustainability Accounting Standards Board’s (“SASBs”) framework, to our Impact reporting. You can find this
disclosure on pages 32-35 herein.

Looking forward, we have more exciting business strategy-aligned Impact work in the pipeline. Below are details of our economic and social pillars, including longer term
diversity goals for Etsy and Reverb, and additional goals related to marketplace and supply chain sustainability and diversity.

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Economic Impact

2020 Goals 2020 Progress 2021 Goals

Create and grow economic Expanding our Economic Impact Create and grow economic
opportunities for creative Target Met: opportunities for creative
entrepreneurs. In 2020, Etsy met and exceeded its 2018 goal of doubling sellers’ economic impact by 2023.* entrepreneurs.
Target: Double U.S. Etsy sellers’ In 2020, Etsy sellers:
economic output by 2023. Target:
- Contributed $13 billion to the U.S. economy, a 142% increase from our baseline of $5.37 billion in
2018; Set a new target and establish a
- Created 2.6 million jobs in the independent worker economy, enough jobs to employ the entire city of baseline for delivering economic
Houston, Texas;** empowerment to our sellers.
- Generated nearly $4 billion in income for sellers; and
- Produced $6.8 billion in additional economic value by harnessing their creativity and bringing unique
products to market.
* To calculate these results, Etsy commissioned its third economic impact study with ECONorthwest, an independent
economic consulting firm, to explore the ways Etsy sellers in the United States contribute to the national economic
landscape.
** Houston, Texas has a population of 2.3 million.

Foster economic and personal Philanthropy Foster economic and personal

empowerment among our In 2020, we invested over $2.6 million in charitable gifts, which supported community organizations and empowerment among our
stakeholders. programs: stakeholders.
Target: Invest in social programs - to enable creative entrepreneurship,
that: - to advance racial justice, Target:
- promote economic opportunities for - to help those most impacted by the pandemic (including with personal protection equipment and Invest in social programs that:
creative entrepreneurs and grants), and - promote economic opportunities
- provide musical education to people - to provide natural disaster relief to Etsy sellers. for creative entrepreneurs and
in need (Reverb).
We also expanded our employee matching program from $500 to $750 matched annually and, through - provide musical education to
Reverb Gives, supported musical education initiatives globally. people in need (Reverb).

Community Engagement
Collectively, Etsy employees donated over 2,000 hours of volunteer time in their communities through
Etsy’s Impact Hours program, which gives all employees up to 40 hours per year to volunteer.

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Economic Impact (continued)

2020 Goals 2020 Progress 2021 Goals

Advocate for public policies that Advocating for Creative Entrepreneurs Advocate for public policies that
advance our commitments to In 2020, we continued our advocacy for public policies that enable creative entrepreneurs to start and advance our commitments to
economic empowerment, equity, and grow their businesses, including COVID-19 relief for the self-employed and sole proprietors, support for economic empowerment, equity, and
ecological sustainability. the United States Postal Service, portable benefits, and sensible platform regulation. We also supported ecological sustainability.
Target: Advance public policies that public policies to reduce carbon emissions in the transportation and logistics sector, as well as economic
increase economic security and justice policies to support microbusinesses operated by women, indigenous community members, and Target:
reduce administrative burdens for people of color.
Advance public policies that increase
creative entrepreneurs. economic security and reduce
Activating the Power of Etsy Sellers administrative burdens for creative
Over 88,000 Etsy sellers advocated on the above issues in Washington, D.C., California, Brussels, entrepreneurs.
France, and the United Kingdom and generated over 333,000 messages to lawmakers on behalf of our
community.

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Social Impact

2020 Goals 2020 Progress 2021 Goals

Build diverse and inclusive Expanding our Diversity, Equity, and Inclusion (“DEI”) Efforts Build diverse and inclusive
workforces that are broadly We continued to expand our robust Diversity, Equity, and Inclusion program while pivoting all of our workforces that are broadly
representative of their communities. hiring, engagement, mentorship, sponsorship, and Employee Resource Group (“ERG”) program representative of their communities.
Targets: activities to a remote environment. We drew strength from our programmatic commitments and
demonstrated progress during worldwide protests against police violence and racial inequality in May,
- Approximately double the June, and July 2020. Targets:
percentage of Black and Latinx - Approximately double the
employees at Etsy by 2023. percentage of U.S. employees at Etsy
- Set a baseline and goals for Attracting Diverse Talent with a Focus on Leadership Representation who identify as Black, Latinx, or
Reverb’s performance and pay In 2020, we deepened our work to recruit underrepresented minority (“URM”) candidates, and we Native American by 2023.
practices, hiring rubric, and amplified our employer brand awareness efforts. As a result, this year Black, Latinx, and Native
diversity, equity, and inclusion American people now comprise 8.6% of Etsy and Reverb’s combined leadership-level workforce, up
strategy. from 4.5% in 2019. Reverb:
Approximately double the percentage
of U.S. employees at Reverb who
Progress on our DEI Goals identify as BIPOC by 2026 (from
We made progress on the goal we set in 2018 to double the percentage of Black, Latinx, and Native 16.5% to at least 33% by 2026).
American employees at Etsy by 2023. In 2020, Black, Latinx, and Native American people constituted - Reach gender parity at Reverb by
20.0% of U.S. Etsy hires. As a result, Black, Latinx, and Native American people now make up 12.5% 2026 (increasing women and
of Etsy’s (excluding Reverb) U.S. workforce, up from 8.6% in 2018 and 11% in 2019. marginalized genders from 29.3% to
Our 2020 DEI goal for Reverb was to study that business and set baseline DEI goals for Reverb, which at least 50% by 2026).
we did. This is to approximately double the percentage of U.S. employees who identify as Black,
Indigenous, or a Person of Color (collectively, “BIPOC”), and to reach gender parity.

Employee Engagement and Retention

We launched the second cohort of our Mentorship Circle Program, an Engineering Sponsorship program
for women and underrepresented minority engineers, launched a Company-wide DEI learning platform
called Blue Ocean Brain, held community-wide vigils for Black Lives Matter, created grief circles and
extra mental health benefits for struggling employees, held anti-racism workshops for parents, created
flexible schedules and paid time off options for employees who had expanded caregiving responsibilities
due to the pandemic, and donated $1 million to support Black-led organizations that support racial
justice, voting rights, and criminal justice reform.

Pay Equity
We continued to invest in fair pay practices, and saw positive results in our 2020 Pay Equity analysis,
which was conducted by a third-party consulting firm. The analysis found no unexplained pay gaps
adverse to women or employees from other marginalized genders, or non-white employees. This was
consistent with the findings of our 2018 analysis.

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Social Impact (continued)

2020 Goals 2020 Progress 2021 Goals

Build a diverse, equitable, and Supply Chain Responsibility Build a diverse, equitable, and
sustainable supply chain to support Through our supplier vetting program, we collected impact data from 59% of Etsy’s suppliers, sustainable supply chain to support
our operations and bring value to our representing 84% of Etsy’s supplier spend in 2020, and we continued to track our supply chain impact our operations and bring value to our
company and our vendors. across key indicators. Of suppliers who have provided information through our impact survey, we found company and our vendors.
Target: Ensure at least 50% of that:
Etsy’s small- and medium-sized - 81% of Etsy’s spend went to companies that have set a greenhouse gas emissions reduction goal; and Targets:
enterprise suppliers are owned by - 43% of Etsy’s small and medium-sized suppliers (sole proprietors up to 250 employees) are owned by - Ensure at least 50% of Etsy’s small-
women, minorities, or veterans by women, minorities, or veterans. and medium-sized enterprise
2022. We will continue to enhance data collection protocols to increase coverage across more of our full suppliers are owned by women,
supply chain. minorities, or veterans by 2022.
- Achieve a 13.5% absolute reduction
Supplier Diversity in our carbon footprint from
In line with Etsy’s commitment to enable equitable access to economic opportunities, we are taking purchased goods and services by
meaningful steps to ensure we have diverse representation across our supply chain. Etsy’s plans to 2030.
increase the percentage of women-, minority-, and veteran-owned businesses in our supply chain were
disrupted in 2020 by the closure of our offices and cancellation of in-person business activities, which in
turn disrupted many of our supplier purchases. This led to a decrease in the percentage of women-,
minority-, and veteran-owned small- and medium-sized suppliers that we engaged relative to our 2019
baseline. To address the negative impact COVID-19 had on our small- and medium-sized enterprise
suppliers, we created a COVID-19 economic relief fund for our suppliers and distributed $100,000 in
grant funding to these suppliers, with prioritization going to women-, minority-, and veteran-owned
businesses. We also provided small business suppliers with information on how to access COVID-19-
related relief funding and support. As we resume in-person business activity, we will continue our work
to ensure that by 2022 at least 50% of Etsy’s small- and medium-sized enterprise suppliers are owned by
women, minorities, or veterans. We believe there is a pathway to achieve our target, but it is largely
dependent on our ability to resume in-person activities, including in-office events, employee programs,
and in-person marketing activities.

Outsourcing Vendor Labor Practices

In 2020, we automated the data collection and assessment of employment practices for Etsy suppliers
that provide full-time contractors to support Etsy. We consolidated findings related to their wage, paid
leave, and benefits practices and conducted research to inform a future employment practice standard.

Sustainable Supply Chain

In an effort to understand and influence the sustainability of our supply chain, we added purchased
goods and services to our greenhouse gas inventory this year. In 2020, emissions from our corporate
supply chain were 42,646 tCO2e, or 10.5% of our total footprint. We plan to leverage our negotiating
power in our supply chain agreements to contribute to our new Net Zero by 2030 goal.

Influencing Suppliers to Improve their Social, Environmental, and Economic Practices

As our purchasing power grows, our ability to influence our suppliers to address pressing social,
economic, and environmental challenges also grows. We have always tried to use this leverage to make
meaningful progress across our key impact areas. In 2020, we focused on influencing vendors to
improve practices, including: (1) wage, benefits, and paid leave standards for their employees; (2)
environmentally responsible methods for producing goods and services; and, (3) policies that promote
more inclusive workforces.

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Social Impact (continued)

2020 Goals 2020 Progress 2021 Goals

Ensure our marketplaces are diverse, Inclusive Marketing Ensure our marketplaces are diverse,
welcoming, and inclusive places to In 2020, we worked to ensure that the images we proactively created and shared in our marketplace were welcoming, and inclusive places to
sell and shop. representative of the communities in which we live by committing to a policy to include at least 30% sell and shop.
Target: By 2021, define a key representation of black or brown skin tones in marketing assets. In the fourth quarter of 2020, 59% of the
performance indicator and establish a images with a human element developed by our creative team had black or brown skin tone
representation. Our award-winning Gift Like You Mean It ad campaign, which aired across the United Target:
baseline for marketplace diversity
and inclusivity. States during the holiday season, showcased our commitment to diversity and inclusion by featuring In 2021, define a key performance
Black, Latinx, and LGBTQ community members and storylines, as well as people with disabilities. indicator and establish a baseline for
marketplace impact.
Highlighting Diversity as a Core Component of our Brand
We embedded diversity into our everyday work to highlight that it is a core component of who Etsy is as
a brand and company. We featured and celebrated Black and Latinx owned shops during a time when
supporting small businesses was more important than ever before, and we created a Black-owned
Business Etsy Community where sellers can opt-in, build community, and support one another.

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Ecological Impact

2020 Goals 2020 Progress 2021 Goals

Achieve best-in-class sustainable Renewable Electricity Achieve best-in-class sustainable

operations by sourcing 100% Target met: operations by sourcing 100%
renewable electricity, reducing the We met our goal to source 100% of our electricity from renewable energy by 2020. This was up from renewable electricity, reducing the
intensity of our energy use, and 76% in 2019. This includes electricity used to power Etsy and Reverb’s global offices, remote electricity intensity of our energy use, and
running zero waste operations. used by employees working from home in the United States as a result of COVID-19, and Etsy.com’s running zero waste operations.
Targets: computing load in colocated data centers and Google Cloud.
- Source 100% of Etsy’s electricity Targets:
from renewable sources by 2020. Energy Use - Continue to source 100% of
- Achieve a 25% reduction in the In 2020, our total operational energy footprint was 13,138 MWh, of which 61% was from electricity. electricity from renewable sources.
intensity of Etsy’s energy use by Because our offices were closed for much of the year due to COVID-19, we included estimations of - Achieve a 25% reduction in the
2025. remote energy use for employees working from home totaling 4,482 MWh. intensity of our energy use by 2025.
- Maintain a 90% waste diversion Our colocated data centers accounted for 1,506 MWh, and we estimate our energy consumption from - Maintain zero waste across global
rate across global operations. Google Cloud in 2020 to be 4,169 MWh. In total our energy use for computing was 43% of our total operations for Etsy.
energy use in 2020. - Run zero waste operations at
To address data availability challenges associated with allocating energy consumption from the cloud, Reverb by 2025.
Etsy developed an estimation methodology to account for our Google Cloud computing footprint, which
has been reviewed by industry experts. Quantification of our cloud energy consumption is allowing us to
meaningfully explore and activate levers of change to drive further cost and energy efficiencies in our
computing footprint. We shared this estimation methodology publicly in 2020. By making this
methodology public, we hope to make it easier for peers to use and build on this approach, and to drive
transparency, accountability, and progress in efficient computing.

Energy Efficiency
Our 2020 office energy footprint was 2,981 MWh. In offices where Etsy maintains operational control,
we achieved a 48% reduction in energy intensity (kWh per square foot) across our global operations
based on a 2016 baseline. While our efficiency work has driven significant progress since 2016, the
magnitude of this reduction was due to COVID-19 office closures.
For computing energy use, we achieved a 23% reduction in total energy use between 2018 and 2020,
despite substantial growth in our business over the same time period.

Diversion from Landfill

In 2020, Etsy achieved zero waste operations for the third year in a row by diverting over 90% of waste
from landfill. In 2020, we diverted 93% of waste generated from office and data center operations from
landfill.

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Ecological Impact (continued)

2020 Goals 2020 Progress 2021 Goals

Run a carbon neutral business. Running a Carbon Neutral Business Achieve Net Zero by 2030 and run a
Target: Offset 100% of measured Target Met: carbon neutral business now.
Scope 1, 2, and 3 emissions. We have run a carbon neutral business since we launched carbon-offset shipping in 2019. For 2020, we
invested in 404,737 verified emissions reductions (“VERs”), protecting forests, sponsoring wind and
solar farms, and developing greener methods for producing auto parts. Being carbon neutral allows us to Targets:
take immediate action to balance our footprint while we work toward long-term reductions in our value - 50% absolute reduction in Scope
chain as a part of our new Net Zero by 2030 goal. 1+2 greenhouse gas emissions by
2030.
Expanding Accountability for our Carbon Footprint - 13.5% absolute reduction in Scope
3 greenhouse gas emissions by 2030.
Each year we evaluate our corporate greenhouse gas boundary to ensure that we are taking responsibility
for the climate change impacts of our business. Our approach is to be as comprehensive and transparent - Offset 100% of measured Scope 1,
as possible. That’s why we have expanded our inventory to account for the greenhouse gas impacts 2, and 3 greenhouse gas emissions
from: (1) the packaging our sellers use to ship products to buyers, (2) the energy use of our platforms on annually.
consumer devices, and (3) our supply chain. Our full greenhouse gas inventory can be seen below in our
SASB disclosure.

Advocating for Climate-Friendly E-commerce

We take action in support of policy solutions that will help to drive carbon reduction in the long term. In
2020, we prioritized advocating for ambitious regional policies that have the potential to accelerate the
decarbonization of the transportation sector and drive significant market transformation. We are
especially focused on electrification infrastructure and heavy- and medium-duty vehicles that play an
important role in e-commerce logistics. We continue to collaborate with peers, vendors, and NGOs on
industry-wide efforts to drive efficiency and resilience in the shipping and logistics sector.

Establish our marketplaces as Adding a Local Seller Signal Establish our marketplaces as
destinations for sustainably-minded We added a “local seller” signal to listing pages when the buyer is in the same ship-from region as the destinations for sustainably-minded
shoppers and conscious living. item. Local purchases can play a significant role in reducing our carbon footprint from shipping. Buyers shoppers and conscious living.
Target: By 2021, define a key appreciated being able to shop locally too; we saw a conversion rate increase upon adding the local
performance indicator and establish a signal. Target:
baseline for marketplace In 2021, define a key performance
sustainability. A Holistic Approach to Marketplace Impact indicator and establish a baseline for
As we undertook work on this goal in 2020, we realized that the positive impact our marketplace can marketplace impact.
drive should not be evaluated through a single-issue lens. Instead the potential to leverage our
marketplace for meaningful impact is best realized at the intersection of our three strategic Impact pillars
- economic, social, ecological. That’s why in 2021 we will continue the work we started this year to
develop a more holistic approach to marketplace impact that is integrated across our teams.

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Our mission is to “Keep Commerce Human.” Our DEI goals are integral to who we are as a company: namely, a marketplace and a workplace that are made stronger by the
unique and special qualities of our communities.

We are committed to transparent reporting on workforce diversity. All metrics below are as of December 31 of the stated year. Overall metrics include all employees
globally. Leadership is defined as Director level and above. Engineering employees are defined as those employees who work within the Engineering Job Family Group.
Tech employees are defined as those employees who work on Product, Engineering, Analytics and HR Information and Financial Systems Administration teams. Other
Business Roles are defined as those employees who work in roles outside of the Tech definition, inclusive of non-tech Leadership positions. Gender and age metrics
represent our global employee base, while race and ethnicity metrics represent U.S. employees only. 2019 and 2020 metrics include both Etsy and Reverb employees, while
metrics from 2018 do not include Reverb employees.

Our Board of Directors also affirmed its dedication to diversity in 2020, committing to actively seek out diverse director candidates to include in the pool from which Board
nominees are chosen. Etsy will provide additional disclosures on Board diversity in our Proxy Statement for our 2021 Annual Meeting of Stockholders.

Gender Metrics - Global

Female Male Other Genders Not Declared

50.0% 50.0% 50.0% 47.5% 24.6%

42.8% 55.7% 55.0% 60.0% 65.2%
32.9% 32.7%
44.8% 45.3% 55.2% 54.9% 59.2% 60.2%

74.4%

61.0% 62.0%
55.8%
50.0% 50.0% 50.0% 51.5%
48.3% 47.7%
42.7% 43.7%
38.4% 37.0% 36.8%
33.2%
31.6% 30.3%

—% —% —% —% —%
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Board Overall Leadership Tech Engineering Other Business Roles

† Etsy commissioned an external third party to perform attest procedures with respect to our diversity metrics as of December 31, 2020. Full details and data methodology are available at
investors.etsy.com.
‡ Metrics for which historical data has also been subject to previous attest procedures.

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Race & Ethnicity Metrics - U.S. Only

Other Business
Board Overall Leadership Tech Engineering Roles
2020 2018‡ 2019‡ 2020† 2018‡ 2019‡ 2020† 2018‡ 2019‡ 2020† 2018‡ 2019‡ 2020† 2018‡ 2019‡ 2020†

American Indian or Alaska Native —% 0.1% 0.1% 0.2% —% —% 0.7% —% —% 0.1% —% —% —% 0.3% 0.2% 0.2%

Asian —% 16.5% 15.3% 17.5% 19.3% 15.5% 14.4% 22.6% 21.1% 25.6% 21.9% 20% 22.6% 8.5% 7.7% 8%

Black/African American 12.5% 3.7% 5.2% 5.9% 3.4% 2.7% 5.8% 2.6% 4.6% 5% 3.2% 5.1% 5.5% 5.5% 5.9% 7.2%

Hispanic —% 4.8% 5.2% 6.1% —% 1.8% 2.2% 4.7% 4.7% 4.6% 5.1% 5.5% 5.5% 5.2% 5.7% 8%

Two or More Races —% 2.8% 3.1% 3.4% 2.3% 2.7% 3.6% 3% 3.6% 4.2% 3.2% 4.1% 4.4% 2.7% 2.4% 2.5%

White 87.5% 67.0% 64.6% 63.0% 75% 72.7% 71.9% 60.8% 58.8% 56.4% 60.8% 58.4% 57.5% 74.8% 72.1% 70.6%

Not Declared —% 5.1% 6.5% 3.8% —% 4.6% 1.4% 6.3% 7.2% 4% 5.8% 6.9% 4.6% 3% 6% 3.3%

Age Metrics - Global

2018‡ 2019‡ 2020†

24 years and younger 5.3% 4.3% 3.3%

25-29 years 27.9% 27.6% 25.3%

30-34 years 32.2% 34.9% 33.8%

35-39 years 20.8% 19.5% 21.4%

40-49 years 11.1% 11.0% 12.9%

50+ years 2.7% 2.7% 3.3%

† Etsy commissioned an external third party to perform attest procedures with respect to our diversity metrics as of December 31, 2020. Full details and data methodology are available at
investors.etsy.com.
‡ Metrics for which historical data has also been subject to previous attest procedures.

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SASB Disclosure
The Sustainability Accounting Standards Board’s (SASB) mission is to develop sustainability metrics for public corporations to
disclose material, decision-useful information to investors. Etsy’s disclosures are designed to provide comparable and
consistent data. We have included below the metrics from SASB’s Consumer Goods Sector – E-Commerce industry standard
that are relevant to our business.

SASB Metrics
SASB Code Metric 2018 2019 2020
CG-EC-000.A Entity-defined measure of Active buyers (thousands) 39,447 46,351 81,898
user activity Active sellers (thousands) 2,115 2,699 4,365

CG-EC-000.B Data processing capacity • In December 2017, Etsy announced our Google Cloud Partnership, an initiative to
transition Etsy.com infrastructure to Google Cloud Platform (“GCP”).
• In February 2020, we completed our full migration to GCP.
• We believe this transition will result in increased engineering efficiency, and enhance
our overall infrastructure by providing faster processing speed, improved page load
time, and more nimble fulfillment to capacity on an as needed basis.

Percentage outsourced 100% 100% 100%

Hardware Infrastructure Energy & Water Management

CG-EC-130a.1 Total energy consumed, MWh 7,330 6,376 5,675
Percentage renewable energy 65% 89% 100%
Percentage grid electricity 100% 100% 100%

CG-EC-130a.3 Discussion of the integration of environmental considerations into strategic planning for data center needs.
• In 2020 we met our goal to source 100% renewable electricity for our operations, and we have a 2025 goal to
reduce the intensity of our energy use by 25%. These goals are included as key considerations as we plan for our
computing needs, and have been a focus of our sustainability efforts. When transitioning to a cloud computing
infrastructure, we selected Google Cloud, a partner that shares our commitment to 100% renewable electricity.
Their highly efficient data centers are expected to help us save significant overhead energy. Moreover, moving to
flexible cloud-based infrastructure has enabled us to reduce energy consumption. We achieved a 23% reduction in
total energy use from computing between 2018 and 2020, despite substantial growth in our business over the same
time period.
• We actively monitor and manage energy consumption from our computing infrastructure. In 2020, our collocated
data centers consumed 1,506 MWh and we estimate that our energy consumption in Google Cloud was 4,169
MWh, based on a methodology developed by Etsy and reviewed by industry experts. Quantification of our cloud
energy consumption is allowing us to meaningfully explore and activate levers of change to drive further cost and
energy efficiencies in our computing footprint. Our 2020 hardware infrastructure footprint does not include Reverb,
but we plan to include Reverb’s energy used from computing in our 2021 analysis.
• In 2018, Etsy entered into a virtual power purchase agreement for solar energy in Virginia. This project is providing
us with renewable attributes to apply to our operations and computing infrastructure, furthering our goals of
creating a cleaner internet and reducing our impact on the planet.

Data Privacy and Advertising Standards

CG-EC-220a.2 Description of the policies and practices relating to behavioral advertising and user privacy.
• We care deeply about privacy and we’re committed to being upfront about our privacy practices, including how we
treat personal information. Etsy’s Privacy Policy provides a detailed explanation of our privacy practices. Etsy’s
transparency report also includes details of our Privacy Principles.
• Among other things, our Privacy Policy covers the user information that Etsy collects or receives, the choices and
control that a user has in relation to this data including based on type and sensitivity by region and worldwide, the
purpose for which Etsy uses such information (including first and third party advertising purposes), our policies
relating to our usage and sharing within Etsy, its affiliates and third party partners, disclosures about third party
partner privacy policy and options, and user controls for sharing and controlling such information with third parties.

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SASB Metrics
SASB Code Metric 2018 2019 2020
Data Security

CG-EC-230a.1 Description of approach to identifying and addressing data security risks.

• Data security is overseen by our Chief Information Security Officer (“CISO”) who reports to our Chief Technology
Officer (“CTO”).
• We strive to protect sensitive information through various means, such as technical safeguards, procedural
requirements and policies, an intensive program of monitoring on both our web platform and within our corporate
network, continuous testing of aspects of our security posture internally and with outside vendors, a robust incident
response program, and regular training for employees.

Employee Recruitment, Inclusion and Performance

CG-EC-330a.1 Employee engagement as a percentage (Etsy) 70% 76% 81%
Employee engagement as a percentage (Reverb) 75%

Employee engagement as a percentage and discussion of methodology.

• In September 2020, Etsy conducted an engagement survey of all global employees. Of all employees surveyed
across Etsy and Reverb, 92% submitted a response, and 81% of Etsy respondents and 75% of Reverb respondents
reported favorable employee engagement. The survey was conducted through the Culture Amp platform and
consisted of 57 questions - 53 rating questions on which employees were asked to indicate their level of agreement
with a statement based on a five-point scale from Strongly Agree to Strongly Disagree, two free-text questions to
which employees were asked to write out a response, and two demographic questions.
• The responses were analyzed against the results from a similar survey conducted in 2019, as well as Culture Amp’s
2020 New Tech - 500+ Benchmark, which consists of survey results from approximately 650 companies that are
primarily internet-based or focused on creating new technologies, and that have between 500 and 5,000 employees.

CG-EC-330a.3 Gender and racial/ethnic group representation for leadership, See Impact Strategy section for detailed metrics.
technical staff and other business functions
Discussion of diversity and inclusion strategy and performance See Impact Strategy - Social Impact for details.
CG-EC-330a.4 Percentage of technical employees who are H-1B visa holders 2.5% 3.5% 5.1%
Product Packaging and Distribution
CG-EC-410a.1 Total greenhouse gas (“GHG”) footprint of product shipments in 135,459‡ 154,078‡ 303,218†
metric tons CO2e
Total greenhouse gas (GHG) footprint of packaging in metric tons 53,489†
CO2e

CG-EC-410a.2 Discussion of strategies to reduce the environmental impact of product delivery.

• The delivery of products sold on our marketplace represents the majority of Etsy’s carbon footprint. As a peer-to-
peer marketplace, Etsy does not directly control seller shipping or the associated logistics networks; however, we
are committed to addressing carbon emissions from shipping.
• In 2019, we announced immediate action to balance our footprint by offsetting 100% of our emissions generated
from Etsy.com shipping through investment in verified emissions reductions. In April 2020, we announced 100%
carbon-offset shipping for Reverb.com.
• We added a “local seller” signal to listing pages when the buyer is in the same ship-from region as the item. Local
purchases can play a significant role in reducing our carbon footprint from shipping.
• In addition, we take action in support of policy solutions that will help to drive carbon reduction from product
delivery in the long term. In 2020, we prioritized advocating for ambitious regional policies that have the potential
to accelerate the decarbonization of the transportation sector and drive significant market transformation. We are
especially focused on electrification infrastructure and heavy- and medium-duty vehicles that play an important role
in e-commerce logistics.
• We continue to collaborate with peers, vendors, and NGOs on industry-wide efforts to drive efficiency and
resilience in the shipping and logistics sector.

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Greenhouse Gas (“GHG”) Emissions Summary (tCO2e) 2018 2019 2020

GHG Emissions by Scope

Scope 1 372‡ 371‡ 294†

Scope 2 - Market 1,213‡ 652‡ 4†
Scope 2 - Location 2,923‡ 1,859‡ 914†
Scope 3 - Market 137,042 155,967 404,439
Scope 3 - Location 137,042 155,967 407,021
Scope 3 GHG Emissions by Activity Source

Category 1: Purchased Goods & Services

Purchased Goods & Services 42,646†
Category 5: Waste Generated in Operations
Waste 6 13 3
Water 3 6 9
Category 6: Business Travel
Air Travel 943‡ 1,217‡ 153†
Other Business Travel 10
Category 7: Employee Commuting
Commuting 544 510 111
Remote Workers - Market 672
Remote Workers - Location 87 114 1,136
Category 8: Upstream Leased Assets
Cloud Computing - Market (Etsy only) 29‡ 0†
Cloud Computing - Location (Etsy only) 2,355†
Category 9: Downstream Transportation & Distribution
Shipping 135,459‡ 154,078‡ 303,218†
Packaging 53,489†
Category 11: Use of Sold Products
End User Energy Use - Market 4,127†
End User Energy Use - Location 3,890†
Our 2020 greenhouse gas emissions include both Etsy and Reverb, unless otherwise stated. Our 2019 greenhouse gas emissions include both Etsy and
Reverb, except for Shipping and Cloud Computing. Reverb’s footprint has been accounted for from the date of acquisition in 2019 forward. Our 2018
greenhouse gas emissions include only Etsy. Etsy has included emissions generated from our colocated data centers as Scope 2 emissions, consistent with
prior years. Emissions generated from cloud computing are classified as Scope 3 - Category 8 emissions. In 2020, we expanded our inventory to account for
the Scope 3 greenhouse gas emissions from: (1) The packaging our sellers use to ship products to buyers, (2) the use of our platforms on consumers’
personal devices, and (3) our corporate supply chain.

† Etsy commissioned an external third party to perform attest procedures with respect to our carbon and energy metrics for the period from January 1, 2020 to
December 31, 2020. Full details and data methodology are available at investors.etsy.com.
‡ Metrics for which historical data has also been subject to previous attest procedures.

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The Task Force on Climate-Related Financial Disclosures

The Financial Stability Board established the Task Force on Climate-Related Financial Disclosures (“TCFD”), which is
committed to market transparency and stability, to develop recommendations for more effective climate-related disclosures.
Beginning this year, Etsy is providing enhanced climate-related disclosures using the TCFD framework. The following table
summarizes specific information that addresses the disclosures recommended in the TCFD, including the publicly available
source where each disclosure is referenced. Etsy plans to leverage the TCFD framework and recommendations as we continue
our focus on climate-related disclosures and management.

Core TCFD Disclosure Disclosure

Elements Recommendation

Governance a) Describe the board’s Etsy’s Board is responsible for reviewing and approving Etsy’s Annual Operating
oversight of climate-related Plan, which includes both climate-related strategy, goals and targets, and associated
risks and opportunities budgets required to meet those goals.
The Nominating and Corporate Governance Committee of the Board, within its
charter, has responsibility for the periodic review of progress against the company's
economic, social and ecological impact goals, which includes climate-related issues.
The Audit Committee of the Board oversees Etsy’s 10-K disclosure, which includes
our climate-related and impact disclosures.

b) Describe management’s Etsy’s annual Impact goals are set by our Executive Team at the corporate level,
role in assessing and aligned with its three Pillars of economic, social and ecological activities. Within these
managing climate-related pillars, the Executive Team sets specific and measurable goals.
risks and opportunities
Etsy also has a Risk Steering Committee, a cross functional team that meets at least
quarterly and is responsible for the management and oversight of key financial,
operational, legal and strategic risks facing Etsy, including any risks that are climate-
related.
Etsy’s Impact Committee meets monthly to set and drive company-wide impact
strategy, including our climate-related goals. It ensures organization-wide internal and
external accountability for climate-related goals. The Impact Committee also assesses
climate-related issues and develops management plans to address these issues
accordingly. The Impact Committee includes cross-functional membership from major
business functions at Etsy, including legal, workplace, strategic sourcing,
sustainability, advocacy, product analytics, marketing, public relations, and investor
relations.
Etsy’s Impact Committee provides periodic updates to the Risk Steering Committee
and the Etsy board.

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Core TCFD Disclosure Disclosure

Elements Recommendation

Strategy a) Describe the climate- Etsy’s Sustainability and Legal/Advocacy teams help to assess regulatory issues
related risks and opportunities associated with current or emerging climate-related legislation and the potential
the organization has identified impacts on Etsy's ability to meet our short and long-term goals. These teams, as well as
over the short, medium, and the Impact Committee and our Executive Team, also monitor ESG trends, market
long term trends, and other issues that might impact Etsy's brand and reputation. Etsy considers
ESG risks and opportunities in the short-term (0-1 years), medium-term (1-3 years),
and long-term (3-5 years).
In our ESG risk analysis, Etsy considers both transitional and physical risks.
Transitional risks include the assessment of current and emerging regulatory,
technology, legal, market, and reputational risks. Physical risk assessment includes
both acute and chronic risks. Etsy considers natural disasters and other weather and
climate-related risks, which could impact operations, internet or mobile networks, or
the operations of one or more of our third-party service providers.
Etsy has identified climate-related opportunities in the short term (0-1 years) that may
have financial or strategic impacts on the business, including participation in
renewable energy programs and adopting energy-efficiency measures, using lower-
emission sources of energy, and being prepared for any climate-related shift in
consumer preferences.

b) Describe the impact of Etsy evaluates climate-related risks and opportunities across the value chain including
climate-related risks and direct operations, upstream, and downstream. This evaluation is integrated into a
opportunities on the multi-disciplinary company-wide risk management process. We conduct interviews
organization’s businesses, and roundtable discussions with internal stakeholders across the business to gather
strategy, and financial perspectives on these factors and associated strategies. Assessment of size and scope,
planning and risk management strategy is overseen by the Risk Steering Committee.
At this time, we have not identified near-term climate-related risks with the potential to
have a substantive financial or strategic impact on our business. Etsy's buyer and seller
base is distributed globally, and as a two-sided marketplace we are not directly
responsible for production of goods sold or for holding inventory. We will continue to
look at additional ways to incorporate assessment of these factors in our risk
management processes.

c) Describe the resilience of Etsy has set a long-term carbon reduction goal aligned with science to be Net Zero by
the organization’s strategy, 2030, which includes absolute reduction targets for Scope 1, 2, and 3. We are currently
taking into consideration undertaking exploratory research to understand the best way to apply climate-related
different climate-related scenario analysis to inform business strategy. The Etsy Impact Committee and
scenarios, including a 2 Sustainability team continue to coordinate with other teams to determine the
degree or lower scenario appropriate scope of this analysis, involving a preliminary exploration of how climate
change will impact Etsy and its community. We plan to use this research to inform
relevant scenario selection for broader analysis, and evaluate impacts accordingly,
including potential opportunities for our business.
We also take action in support of policy solutions that will help to drive carbon
reduction in the long term. In 2020, we prioritized advocating for ambitious regional
policies that have the potential to accelerate the decarbonization of the transportation
sector and drive significant market transformation. We are especially focused on
policies to improve the electrification infrastructure and to reduce emissions for heavy-
and medium-duty vehicles that play an important role in e-commerce logistics.

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Core TCFD Disclosure Disclosure

Elements Recommendation

Risk a) Describe the organization’s The Etsy Sustainability team, along with others in relevant functions within the
Management processes for identifying and Company, evaluates climate-related risks and opportunities, analyzes them in the
assessing climate-related risks context of our business, develops recommendations as appropriate, and escalates them
for oversight senior management. For example, the Sustainability team has conducted
a geographic analysis in selected geographic segments of projected physical climate
impacts on Etsy sellers and buyers.
The Sustainability team, in consultation with the Legal/Advocacy team, assesses
regulatory issues associated with current or emerging climate-related legislation.

b) Describe the organization’s The Sustainability team, in addition to their role outlined in Section (a) above,
processes for managing develops management plans to address these issues accordingly.
climate-related risks

c) Describe how processes for Etsy’s Impact Committee is a cross-functional group with representation from major
identifying, assessing, and business functions across the company, including: legal, workplace, strategic sourcing,
managing climate-related sustainability, advocacy, product analytics, marketing, public relations, and investor
risks are integrated into the relations. This ensures that climate-related issues are considered strategically and
organization’s overall risk integrated throughout the business, as appropriate.
management
Since 2018, Etsy has used an integrated annual report structure, and has included ESG-
related topics in our Annual Reports and Proxy Statements. These reporting structures
ensure that climate-related issues are considered holistically from a risk and
opportunity perspective by a cross-functional group and are appropriately elevated to
senior management through defined channels.

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Core TCFD Disclosure Disclosure

Elements Recommendation

Metrics and a) Disclose the metrics used Etsy tracks climate-related metrics related to total energy consumed, percentage
Targets by the organization to assess renewable, percentage grid electricity, total GHG footprint of scope 1, 2 and 3
climate-related risks and emissions including product shipments, packaging, end user energy use, water, and
opportunities in line with its outgoing waste material streams. For a historical view on our metrics, please view
strategy and risk management pages 29-31 of this Integrated Annual Report.
process
As a result of offsetting 100% of carbon emissions across all measured Scope 1, 2, and
3 categories, Etsy.com became a carbon neutral business and put an internal price on
our emissions, creating a financial incentive to support decisions through the business
that reduce greenhouse gas emissions, from driving operational efficiencies to
integrating sustainability into our procurement process.
We continue to act in support of solutions that will help drive carbon reduction in the
long term, including advocating at the federal and state level for comprehensive
climate and carbon reduction policies and collaborating with peers on industry-wide
efforts to drive efficiency and resilience in the shipping and logistics sector.
For all teams at Etsy, compensation is tied to the company’s financial performance, as
well as individual employee contributions. While responsibility for delivering on our
impact goals is distributed across the company, each goal owner is responsible for
ensuring that the work associated with advancing their goal is incorporated into team
members’ individual goals, which is in turn directly tied to compensation. The annual
performance goals of our Executive Team are often directly tied to some of our Impact
goals. They also serve as executive sponsors for specific goals to help ensure that
teams stay on track and have the value of executive leadership and expertise as plans
are executed.

b) Disclose Scope 1, Scope 2, Please view pages 29-31 of this Integrated Annual Report for our Greenhouse Gas
and, if appropriate, Scope 3 (“GHG”) Emissions Summary.
greenhouse gas (GHG)
emissions, and the related
risks

c) Describe the targets used Our climate-related targets include:

by the organization to manage
climate-related risks and • Achieve Net Zero by 2030 through a 50% absolute reduction in our Scope 1 and 2
opportunities and greenhouse gas emissions and a 13.5% absolute reduction in our Scope 3
performance against targets greenhouse gas emissions. This target is aligned with current climate science.
• Continue to source 100% of Etsy’s electricity from renewable sources. This is an
absolute-based target set from a 2016 base year.
• Achieve a 25% reduction in the intensity of Etsy’s energy use by 2025. This is an
intensity-based target set from a 2016 base year.
• Maintain a 90% waste diversion rate across global operations. This is an intensity-
based target set from a 2017 base year.

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