At Etsy, our environmental impact work aims to build long-term resilience by progressing towards our Net Zero promise, running sustainable operations, and addressing the impact of our marketplaces while establishing them as destinations for conscious consumers.

We’ve long held ourselves accountable to ambitious environmental goals and recognize that individual action alone cannot solve the scale of the climate crisis. We do, however, believe change is possible through the collective power of our business ecosystem.

Last year we set an ambitious, long-term Net Zero carbon-reduction goal driven by science-based targets. It pushes us to identify opportunities to avoid emissions in our operations, reduce the emissions we can’t avoid, switch fuel sources from fossil fuels to renewable energy and offset what we’re unable to address through direct measures.

Although there are some areas we have less control over, such as emissions resulting from deliveries between our sellers and their buyers, we still feel a pressing responsibility to work towards more sustainable solutions. That’s why we are engaging with carriers and suppliers to help sellers source more sustainable packaging and advocating for public policies to drive the decarbonization of the transportation industry.

In 2021, we continued to demonstrate our deep commitment to the environment by achieving our goals of sourcing 100% of our electricity from renewable energy and, for Etsy.com, reducing computing energy use by 27% compared to 2018 despite substantial growth in our business over the same time period.

Other highlights of our 2021 progress include 1:

• Reducing our Scope 1 and 2 emissions by 66% from our 2019 baseline and beginning to activate long-term Scope 3 reduction measures.
• Continuing to run a carbon neutral business by investing in 549,250 verified emissions reductions that protect forests, sponsor wind and solar farms, and help develop greener methods for producing auto parts.
• Running zero waste operations for the fourth year in a row by diverting over 90% of waste from landfill at four office locations.
• Advocating for national and regional policy solutions that have the potential to accelerate decarbonization of the transportation sector, expand electrification infrastructure, and drive efficiency and resilience in the shipping and logistics sector.
• Launching a new partnership allowing U.S. sellers to purchase affordable packaging made from certified responsibly sourced or 100% recycled materials that buyers can also recycle easily at home. In 2021, seller packaging made up 12% of our total emissions footprint.
• Introducing an updated “Shop Local” signal which indicates when the buyer is in the same ship-from region as the item. This can reduce our carbon footprint from shipping and has been received well by Etsy buyers, as we saw a conversion rate increase upon adding the local signal.
• Collecting impact data from 75.6% of Etsy’s suppliers, representing 83% of Etsy’s supplier spend in 2021. Of suppliers who have provided information, we found that 52.9% of Etsy’s spend went to companies that have set a greenhouse gas emissions reduction goal.
• Engaging buyers in the positive impact they create when they shop on Etsy.com by launching an Impact Tracker that creates a personalized digest of how many small businesses a buyer has supported, how much emissions were offset from shipping and packaging for their purchases, and how much the buyer has contributed to Etsy’s Uplift Fund.

Etsy continues to report our 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 2022, our Environmental Impact work will focus on these targets:

The goals we’ve set demonstrate our unwavering commitment to having a positive impact on the world. We will continue to hold ourselves accountable through regular, transparent reporting on our progress.