PayPal Holdings, Inc. - Investors Environmental, Social and Governance (ESG) Strategy at PayPal

ESG Governance

We employ a decentralized approach to the functional management of ESG topics across PayPal, with strong oversight by our Board of Directors and executive leadership team.

While the full Board reviews and engages on ESG matters that impact business strategy, general oversight of ESG topics is the responsibility of the Corporate Governance and Nominating Committee. The other principal Board committees are responsible for oversight of ESG issues associated with their respective areas of responsibility (e.g., the Audit, Risk, and Compliance Committee oversees privacy and cybersecurity matters, while the Compensation Committee oversees pay equity).

Our Chief Business Affairs and Legal Officer directs and manages the execution of our enterprise ESG strategy, in close collaboration with other senior executives. Our internal ESG governance framework facilitates cross-functional ESG program management and development through an ESG steering committee and multiple cross-functional working groups. We continue to expand our internal ESG expertise, advance our programmatic and reporting activities, and identify new partnership opportunities to advance our key ESG issues.

An ESG steering committee and cross-functional working groups with representatives from more than 20 functions are esponsible for overall program implementation.

Oversight

PayPal Holdings, Inc. Board of Directors

Corporate Governance & Nominating Committee

Management

EVP, Chief Business Affairs & Legal Officer

Program Implementation

ESG Steering Committee

ESG Working Group

Environmental Working Group

As an essential part of our long-term strategy, we continue to expand our internal ESG expertise, advance our programmatic and reporting activities, and identify new partnership opportunities to advance our key ESG issues. In 2019, we reinforced the linkages between our governance and risk management programs and now regularly report on emerging ESG trends to a subcommittee of the internal Enterprise Risk Management Committee.

Materiality & ESG Strategy

Our First ESG Materiality & Prioritization Assessment

In 2019, PayPal undertook an inaugural materiality and prioritization assessment to identify key non-financial topics important to both our business and stakeholders. Our three-part approach included:

Phase I — Research & Landscape Assessment

Conducted an in-depth internal and external landscape assessment to analyze current company programs and reporting, peer performance, and global economic and ESG trends and standards to identify 19 key ESG topics.

Phase II — Stakeholder Mapping & Engagement

Interviewed or surveyed 130 internal and external stakeholders to gather feedback on key ESG topics and their intersection with our business and society. This includes engagement with PayPal’s senior leadership and a sample of our global employees, as well as conversations with various stakeholders from peer companies, financial health experts, business trade groups, and customers, among others. We also conducted an investor-focused governance perception study with 24 global investors holding more than US$ 4 trillion in assets under management to understand how they consider ESG factors in their investment decision-making and their views on PayPal’s current and future ESG program.

Phase III — Topic Analysis & Prioritization

Prioritized PayPal’s 19 key ESG topics by applying a five-factor model (business impact, stakeholder concern, perceived performance, degree of influence, and societal/environmental impact) to create our materiality matrix and inform our future ESG strategy. This analysis identified seven priority ESG topics that are important to both the Company and its stakeholders. We also examined the alignment of our business activities and key priority areas to the United Nations’ Sustainable Development Goals (SDGs). We found that PayPal makes a direct, positive contribution to 10 of the 17 SDGs, with the greatest influence on five Global Goals.

The conclusions from this assessment highlight how our mission and values are central to everything we do, reinforce the importance of stakeholder feedback, and will help prioritize our ESG strategy and disclosures going forward. We value ongoing feedback from our stakeholders and will be reviewing our ESG priorities annually.

Click here to see more information on our materiality and prioritization assessment , including our alignment to the U.N. Sustainable Development Goals.

2019 Global Impact Report

Download GIR 2019 PDF

2019 Key Highlights

We worked diligently to promote an inclusive and diverse workforce, expand our business, advance financial health, minimize our environmental impact, and ensure every aspect of our business operates responsibly. For more information visit www.paypal.com/impact.

Conducted our inaugural ESG Materiality and Prioritization Assessment to identify and prioritize key non-financial topics for our business and stakeholders.

Members of our Board and senior leadership team engaged with our workforce on meaningful topics, such as diversity and inclusion as part of our International Women’s Day celebration.

50% Board
Diversity

Achieved 50% diversity across our Board of Directors with the addition of Debbie Messemer.

Matched 65% of the energy in data centers with renewable generation, representing significant progress toward our goal of 100% by 2023.

Made progress toward setting a Science-Based Target for greenhouse gas emissions that aligns with the Paris Climate Agreement.

Employees volunteered their time and talents to address climate-related issues and worked together to develop innovative, sustainable products.

Please visit our Environmental Sustainability website for more information

Supported individuals and businesses in improving their financial health through our products, including the PayPal Commerce Platform and PayPal’s business financing solutions, as well as investments in companies driving financial wellness such as Tala.

$16B On Behalf of

40M people

Leveraged the power of our giving platform to process $16B in contributions from more than 40 million people around the world.

43% of PayPal employees participated globally in the Kiva lending campaign — empowering ~10,000 low-income entrepreneurs across 36 countries.

Please visit our Social Innovation website for more information.

81% of employees happy
to work at PayPal

According to our most recent employee engagement survey, 81% of global employees would recommend PayPal to their peers and/or are happy at the Company,12% above the peer benchmark.

Established an Employee Financial Wellness Program to strengthen the financial health of our employees, while also expanding health and wellness benefits.

100% PAY
EQUITY

Maintained 100% pay equity for women globally and ethnic pay parity in the US for the fourth year in a row and advocated for inclusive public policies.

Please visit our Diversity & Inclusion website for additional information.

Partnered with organizations to combat global financial crimes and support publicprivate collaboration to better understand the financing mechanisms of illegal firearm sales and disrupt human trafficking cash flows.

Continued to build a strong culture focused on customer privacy and security, including certifying our information security program to ISO 27001 standards.