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.