At Etsy, our sustainability efforts aim to build long-term resilience for our business and for the millions of entrepreneurs who rely on our platform each day. In addition to creating value for our stakeholders, we know Etsy’s environmental commitments contribute to the overall health of the planet and the people on it, a priority that directly aligns with our mission to Keep Commerce Human.

In 2023, we continued to demonstrate our commitment to our ambitious goals, including our work to run sustainable operations, serve as a destination for sustainability minded consumers and reach Net Zero carbon emissions. We continued to source renewable electricity for Etsy.com's computing load in Google Cloud and for Etsy.com, Depop and Reverb offices and employees working from home.

Other highlights from our 2023 progress include:

• We made significant progress toward our ambitious goal of achieving Net Zero carbon emissions, with a 16% reduction of our Scope 3 emissions intensity relative to 2022, keeping us on track for our 2030 interim target as we work toward our Net Zero goal validated by the Science Based Target Initiative.
• Scope 3 emissions intensity related specifically to shipping was reduced by 22% from the previous year, and by 43% from our 2020 baseline. We also helped our shipping partners pursue their work to increase sustainability in their operations, including advocating for the U.S. Postal Service’s commitment to exclusively purchase electric vehicles starting in 2026.
• We continued making progress in decreasing our reported corporate supply chain emissions intensity, down by 5% relative to 2022. As part of this effort, Etsy piloted a new supplier carbon fee program, requiring suppliers to achieve an A- on their annual Carbon Disclosure Project (CDP) assessment in order to avoid paying a carbon fee.
• In 2023, we continued to offer sellers a way to easily source affordable packaging made from recycled and responsibly sourced paper. And, emissions intensity from sellers’ packaging was down 7% compared to 2022.
• Etsy's Brooklyn office headquarters received “Zero Waste” certification for the sixth year in a row, diverting over 90% of waste from landfill.
• Over the course of 2023, sellers created 108 million listings with circular attributes on the Etsy, Depop and Reverb marketplaces, including vintage, upcycled, used and secondhand items, helping to reduce waste and encourage more sustainable practices among buyers.
• We helped our sellers build resilience by expanding our Disaster Response Grant program through Craft Emergency Relief Fund, which offers grants to Etsy marketplace U.S. sellers impacted by Federal Emergency Management Agency (FEMA) declared disasters. We also partnered with Nest, Inc. and the Environmental Defense Fund to develop open source resource guides that help makers access climate-related disaster information and funding.
• Etsy allocated $3.0 million of our Impact Investment Fund to support decarbonization. This investment supports Greenbacker Capital Management’s direct investments in renewable energy technology and other energy sector innovations that may reduce reliance on fossil fuels.
• Etsy continued to invest in carbon offsets in an amount equal to our quantified annual Scope 1, 2 and 3 emissions.

Etsy reports Impact metrics using the Sustainability Accounting Standards Board (“SASB”) and Task Force on Climate-Related Financial Disclosures (“TCFD”) frameworks. Our full carbon footprint and progress against our goals can be seen in our Integrated Annual Report.

In 2024, our Environmental Impact work will focus on these targets:

We’re committed to continuing our progress on building a sustainable, resilient business, centering what’s good for people and the planet. We will continue to hold ourselves accountable through regular, transparent reporting on our progress.