Etsy is a long-time leader in demonstrating that driving business results and having a positive impact on the world can be mutually reinforcing, not mutually exclusive. Over the years, we have continued to evolve and update our goals to be more specific, measurable, and time bound, all while expanding the transparency of our reporting. We are proud that since 2019 we’ve been one of only a few public companies to publish a fully integrated annual report, applying the same focus, discipline, and accountability to our Impact metrics as we do our financial metrics.

In this year’s Integrated Annual Report, Etsy transitioned our Impact reporting to the more commonly used environmental, social, and governance (ESG) structure. This change has provided us with an opportunity to take a fresh look at our focus areas, while better aligning our reporting with emerging global standards so that various stakeholders can more easily track and interpret our progress.

No matter what we call it, our impact is baked into our business at every turn and, in 2021, we made notable progress on ESG metrics across the board, namely: 1

You can find our full report on Etsy's ESG strategy, including 2021 progress highlights, as well as our updated goals in our latest Form 10-K. Looking ahead, we are focused on deepening Etsy’s commitments to people and planet as we continue to responsibly grow our business by:

• Building resilience for the long term
  • Our environmental impact work focuses on progressing towards our Net Zero promise, running sustainable operations, and addressing the impact of our marketplaces while establishing them as destinations for conscious consumers.
• Ensuring equitable access to economic opportunity
  • Our social impact work encompasses Diversity, Equity and Inclusion (DEI) and Social Innovation efforts, which position us to play a role in building a more just, equitable, and resilient economy that prioritizes people at the center of commerce.
• Fostering a culture of ethics and accountability
  • In 2022, we will continue to focus on Governance by adhering to responsible marketplace practices, maintaining thoughtful corporate governance, and continuing our integrated ESG reporting.

We are incorporating our recently acquired marketplaces, Depop and Elo7, into our ESG framework alongside Etsy.com and Reverb to expand the reach of our commitment. We know it’s more critical than ever for businesses to lead from the front as catalysts for positive change in the world and, by the nature of our business model, the more Etsy grows, the stronger our impact becomes.