Physical risk - Scenario analysis results Our employees are already experiencing, and will continue to experience, the effects of their exposure to the physical risks associated with climate change. We believe we are effectively managing these risks, to the extent possible, through a combination of our GS&S programs and green building strategy. For example, based on the physical risk categories assessed: ● On a global basis, our employees face the greatest exposure to water-stress, wildfires and cold waves. ● Our employees in the greater Tokyo, San Francisco, Hyderabad and New York areas face the highest overall exposure. ● The degree of exposure is largely consistent under all climate scenarios and time horizons considered. Moving forward, we will continue to integrate this analysis into our strategic planning and may repeat the analysis as the geographical distribution of employees warrants. 5.5B Carbon pricing risk scenario analysis Carbon pricing - Scenario selection and assumptions We performed an analysis on carbon pricing risk to help inform our sustainable operations goals and our efforts to decarbonize our supply chain. Our carbon pricing risk analysis contemplates how our future operating costs are impacted by a range of Salesforce-specific and low-carbon economy drivers, such as growth in electricity consumption and electricity prices, value chain emissions and carbon prices. Momentum around carbon pricing continues to i ncrease as countries strive to reach their Nationally Determined Contributions (“NDCs”) under the framework of the Paris Agreement. We assessed the impact that the price of carbon could have on Salesforce’s business, and stress tested against strategies we have implemented today, including our 100 percent renewable energy program and Science-Based Target. We utilized S&P Global Trucost’s Carbon Pricing Tool. This tool includes a database of over 100 current prices on carbon in various regions, including emissions trading schemes, direct carbon taxes and fuel taxes. The tool models three scenarios for future carbon pricing (High, Moderate, Low) based on the Organization for Economic Co-operation and Development and International Energy Agency data. The delta between the modeled future carbon price and existing pricing schemes to date is considered the “carbon price risk premium” that could impact our operating margin. Carbon pricing - Scenario analysis results The results of this analysis suggest that carbon pricing is unlikely to have a material impact on our business. Carbon pricing risk is further mitigated by our sustainability strategy, which includes our commitment to help our suppliers set their own Science-Based Targets. 20 | Salesforce TCFD Report