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Business Travel in a Net Zero World


Emissions Reduction Business Travel in a Net Zero World s a l e s f o r c e s u s ta i n a b i l i t y , 2 0 2 1

Executive Summary Business travel, which accounts for 15-20% of all global travel, is a significant contributor to global greenhouse gas emissions. The aviation sector alone accounted for 2.5% of global emissions in 2018. In order to align with the Paris agreement, the aviation sector must reduce average carbon intensity by about 40% by 2035, increasing to about 65% reduction by 2050. To help ensure future temperature rise is limited to no more than 1.5°C, companies must reduce emissions associated with 20% reduction travel. While analysts predict a in business travel spending by 2023 compared to 2019 in part due to changing business travel habits from the pandemic, a reduction in dollars spent on travel alone won’t achieve the change that science tells us is needed. Collectively, we need a more strategic approach that carefully considers how to achieve the benefits that business travel provides in ways that significantly decrease greenhouse gas (GHG) emissions. Companies must rethink how to best facilitate the kinds of collaboration and connection that travel makes possible. This will mean reducing non-essential travel and getting creative about how to bring people together in lower-emission ways when in-person gathering is needed. Because decisions at company, team, and individual levels can only be as good as the information that’s available, as a first step companies should calculate and share information about the climate impact of business travel. Then, they should provide tools to help employees minimize the emissions associated with travel and promote the travel options with the least associated emissions during the booking process and/or at point of sale. Most importantly, companies must collaborate with others to develop additional solutions and reduce the emissions impact of travel. It’s time to work together to develop better, lower-emission solutions that will make the collaboration and connection that business travel provides possible in a global Net Zero future. At Salesforce, we’re driving towards a 1.5°C future by focusing on these six sustainability priorities. Learn more about our Climate Action Plan and how you can accelerate your own journey to Net Zero. Emissions carbon removal Trillion Trees & Education & Regulation & Innovation Reduction Ecosystem Mobilization Policy Restoration 1 |

Key Challenges Travel is an integral part of doing business, fostering internal collaboration and strengthening client relationships. However, travel can also come with a high cost for the planet. Almost overnight, COVID-19 changed howcompanies balance travel, technology, and climate change impacts. At the onset, companies replaced in-person meetings and events with virtual ones, quickly reimagining how to best connect with customers and internal teams in a reality where travel nearly completely stopped. As we collectively begin the journey of returning to offices, we must decide what our new normal will look like. How will we stay connected in a rapidly-warming, post-pandemic world? How business is conducted continues to evolve as companies change their practices to reduce their climate impact. Figure 1: Sustainability Efforts Organizations are Making to Reduce their Environmental Impacts 1 % 20 decrease in business travel spending expected by 2023 from 2019levels. We must collectively find creative ways to reduce the emissions associated with travel and contribute to developing solutions that will connect people globally without such a significant GHG impact. 1 Deloitte Insights. Return to a world transformed, 2021. 2 |

Our Approach At Salesforce, our vision is to lead by example in reducing business travel emissions. We have set a goal to reduce our business travel emissions intensity by at least 50% by 2030.2 To achieve this, we lean on our digital-first culture and utilize our business travel policy to maximize more sustainable choices, influence employee behavior, send strong demand signals for sustainable aviation fuel and electric vehicles (EVs), and optimize travel booking technology that empowers responsible choices. Figure 2: Salesforce Business Travel Reduction Measures 2 Our business travel goal is to reduce emissions intensity, per dollar of revenue, by 50% by 2030 (in comparison with 2019 levels). 3 |

Our Approach at Salesforce Our first and most critical step was to assemble and consult a team of internal stakeholders from key business units, including travel, procurement, sustainability, finance, and sales. We used their input to develop a comprehensive and strategic approach to sustainable business travel which includes creating a digital-first culture and decarbonizing business travel that does take place. Building a Digital-First Culture Creating a digital-first culture means that we travel purposefully and communicate travel guidance internally that helps reduce non-essential travel. This includes: Implementing our Work from Proactively communicating how Creating policies to reinforce our Anywhere strategy which enables individual travelers and teams can digital-first culture and leveraging and encourages remote make smarter travel choices that a tracking system built to manage participation through virtualization. support emissions reductions. compliance. We learned a ton last year...with minimal travel we performedexceptionally well. We had more C-Level meetings, faster turnaround times, better access to customers. And we don’t want to lose that. It’s digital first, and that should be our mentality moving forward. Brian Millham, President, CSG & COO Worldwide Distribution, Salesforce Decarbonizing Business Travel For the essential business travel that does take place, we find ways to deeply decarbonize and reduce its climate impact. First, we’ve made choosing lower-carbon travel easy and efficient. We optimized our online booking tool to recommend lowest-emissionmodesoftravel and makethese options easy to choose. This enables easy mode-switching on routes where a more sustainable form of transportation is a viable alternative, such as traveling by rail instead of air. Now, we’re working to make the impact of these choices more visible. We’re developing a dashboard that visualizes each employee’s travel-related emissions footprint. The goal is to help Managers enable their teams and for employees to understand their individual impact by surfacing actionable insights and communicating personalizedways to reduce that footprint. As these programs roll out, we continue to assess our impact and consider the need for other internal policies as we focus on minimizing the carbon emissions associated with every employee’s travel footprint. At the same time, we’re engaging with our travel suppliers to encourage them to set science-based targets and provide us with carbon neutral products and services. We aim to formalize these commitments through implementing theSalesforce Sustainability Exhibit, which embeds sustainability into supplier contracts. 4 |

Our Approach at Salesforce Sustainable Aviation Fuel Though only 2.5% of global emissions come from air travel, 83% of Salesforce’s business travel emissions come from flying. Because some level of air travel will continue to be an important part of doing business, finding ways to reduce this impact is a critical part of our emissions reduction strategy. We recognize that a diverse portfolio of solutions will be required to fully decarbonize the aviation sector. While new modes of air travel (e.g. electric airplanes, hydrogen-powered aviation) are being actively developed by scientists, we believe sustainable aviation fuel will play an important role in managing the emissions impact of travel and supporting the energy transition as a whole, particularly in the short term. To that end, we believe sustainable aviation fuel is a robust starting point for decarbonizing air travel because it allows the industry to leverage existing aviation infrastructure with a drop-in replacement for more carbon-intensive fuels. The opportunity is large, but the market for sustainable aviation fuel today is just getting started. Key Challenges The primary challenge hindering the mainstream use of sustainable aviation fuel is cost. Because there are not yet clear demand signals from the market, supply remains low and prices remain high. Growing both sides of the market simultaneously is a common hurdle for new technologies and is a source of both risk and delay. These issues are exacerbated by the stringent nature of safety requirements with respect to air travel, requiring thorough testing at each step of development and implementation. In addition, uptake of sustainable aviation fuel lacks the kind of globally recognized accounting, verification, and disclosure standards needed to enable accurate trading as well as an agreed upon framework to define the specific characteristics that make it sustainable. This currently makes it hard for companies to guarantee the lifecycle benefits of the sustainable aviation fuel they purchase. How CorporateTravel Buyers Can Help Corporate buyers such as Salesforce can help ease the challenges hindering uptake of sustainable aviation fuel by using our voices to demand fuels with the lowest carbon impacts. Our combined influence can also help establish the standards required in the sustainable aviation fuel value chain while providing the financial support needed to scale up the development of these fuels. To support the growth of sustainable aviation fuel, we became a founding member of the Sustainable Aviation Buyers’ Alliance, to help develop market infrastructure, drive demand, and engage in policy advocacy. Through this initiative, we see an opportunity for Salesforce to collaborate with our airline suppliers and to grow the market by aggregating the demand required from fuel producers. These supplier engagements with key partners will send a strong demand signal to the broader aviation industry. To further drive decarbonization through supplier engagement, we integrate climate commitments into supplier agreements, including those with travel suppliers, via our Sustainability Exhibit. 5 |

Our Approach at Salesforce Whilesustainable aviation fuel can be a promising pathway towards low-carbon air travel, the term encompasses a range of fuels. These fuels are not all created equal and vary widely in their ability to reducecarbon emissions. They are produced using a variety of methods, including gasification, pyrolysis and Fischer-Tropsch, and feedstocks, from corn grain to palm oil to algae and even municipal solid waste. As a result, the potential reduction in lifecycle carbon emissions can range from 10 to 80% compared to conventional fossil fuel-derived jet fuel. Furthermore, most sustainable aviation fuels must be blended with traditional jet fuel to maintain efficiency and power for flight. The diversity in options presents a wide opportunity for growth but also exemplifies the need for robust standards and systems as the market grows. Although we know sustainable aviation fuel will be a key part of reducing emissions from air travel, we will only be able to quantify the level of its impact for Salesforce - and the industry at large - following its more widespread adoption. While we anticipate sustainable aviation fuel uptake will drive a significant decrease in our travel-related emissions over time, for now we represent its potential impact on Salesforce’s emissions as a range (see Figure 2, pg. 3) as the technology is nascent and the carbon benefits and the scalability of solutions coming to market varies. Compensating for our Remaining Emissions Even after mitigation strategies like those outlined above are implemented, some travel-related emissions will remain. As part of our Net Zero commitment, we will offset all remaining emissions with high-quality carbon credits.3 We also advocate for businesses and governments to play leading roles in developing more sustainable travel options to support our ambition to mobilize, collaborate with, and enable others to catalyze significant changes in the global travel value chain. 3 We follow a robust due diligence process to vet carbon credits before we procure them. For every potential carbon credit purchase, we apply a set of 
 detailed criteria that are based on global best practices. We also work with qualified independent consultants and expert brokers to help guide us. 6 |

Here’s What You Can Do Projections show that business travel is bouncing back from COVID-19-imposed lows, and Salesforce will be one of many companies with people still traveling in some capacity. Because business travel will still take place, companies should work hard to reduce travel- related emissions wherever possible. Hereare a few actions all companies can take: Grow internal partnerships across different functions like travel, procurement, sustainability, finance, and Work together to find the sales, as these are key to forging organization-wide solutions to deliver the behavior change needed to best solutions reduce travel-related emissions. Also, partner with your travel management company, reach out to your travel and procurement peers, ask questions, benchmark, and collaborate on best practices to establish across the industry. Identify which types of travel are truly business-essential and where the opportunities exist to switch to Getcreative about virtual solutions or more sustainable modes of transportation. connecting Provide visibility into travel emissions impacts for individual travelers, business units, countries, and the Encouragenew norms wider organization. Then, strongly encourage and build lower-emissions travel options such as rail and electric vehicles into your travel program. Normalize the idea of opting for low emissions travel options as a default. Changing social norms and behaviors like this takes time and investment – it doesn’t happen overnight, but ultimately the impact of this sort of systemic change is worth the effort. Seek out external initiatives where you can get involved to help reduce travel-related emissions. Leverage Speak up externally collaboration and advocacy to drive systemic change and lower-carbon transportation options. Some ways we’ve gotten involved include the Sustainable Aviation Buyers’ Alliance, Clean Skies for Tomorrow, and the Global Business Travel Association's Sustainability and Responsibility Committee. It’s Time to Act The world is in a climate crisis. To avoid its worst impacts will require every facet of society to act boldly to create a sustainable future. Reducing business travel emissions is a critical component of realizing a sustainable future for all. Every company has the ability to transform how they travel with the goal of drastically decarbonizing their travel footprint. Learn more about Salesforce’s Climate Action Plan 7 |

appendix Safe Harbor Statement "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This report contains forward-looking statements about the company's financial and operating results, which may include expected GAAP and non-GAAP financial andother operating and non-operating results, including revenue, net income, earnings per share, operating cash flow growth, operating margin, expected revenue growth, expected current remaining performance obligation growth, expected tax rates, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, environmental, social and governance goals, expected capital allocation, including mergers and acquisitions, capital expenditures and other investments, expectations regarding closing contemplated acquisitions and contributions from acquired companies. 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The risks and uncertainties referred to above include – but are not limited to – risks associated with the impact of, and actions we may take in response to, the COVID-19 pandemic, related public health measures and resulting economic downturn and market volatility; our ability to maintain security levels and service performance meeting the expectations of our customers, and the resources and costs required to avoid unanticipated downtime and prevent, detect and remediate performance degradation and security breaches; the expenses associated with our “first-party” data centers and third-party cloud infrastructure providers; our ability to secure additional data center capacity; our reliance on first and third-party hardware, software and platform providers where we do not directly own the infrastructure; the effect of evolving domestic andforeign government regulations, including those related to the provision of services on the Internet, those related to accessing the Internet, and those addressing data privacy, cross-border data transfers and import and export controls; current and potential litigation involving us or our industry, including litigation involving acquired entities such as Tableau, andthe resolution or settlement thereof; regulatory developments and regulatory investigations involving us or affecting our industry; our ability to successfully introduce new services and product features, including any efforts to expand our services; the success of our strategy of acquiring or making investments in complementary businesses, joint ventures, services, technologies and intellectual property rights; our ability to complete, on a timely basis or at all, announced transactions, including our proposed acquisition of Slack Technologies, Inc.; our ability to realize the benefits from acquisitions, strategic partnerships, joint ventures and investments; our ability to successfully integrate acquired businesses and technologies; our ability to compete in the market in which we participate; the success of our business strategy and our plan to build our business, including our strategy to be a leading provider of enterprise cloud computing applications and platforms; our ability to execute our business plans; our ability to continue to grow unearned revenue and remaining performance obligation; the pace of change and innovation in enterprise cloud computing services; the seasonal nature of our sales cycles; our ability to limit customer attrition and costs related to those efforts; the success of our international expansion strategy; the demands on our personnel and infrastructure resulting from significant growth in our customer base and operations, including as a result of acquisitions; our ability to preserve our workplace culture, including as a result of our decisions regarding our current and future office environments or work-from-home policies; our dependency on the development and maintenance of the infrastructure of the Internet; our real estate and office facilities strategy and related costs and uncertainties; fluctuations in, and our ability to predict, our operating results and cash flows; the variability in our results arising from the accounting for term license revenue products; the performance and fair value of our investments in complementary businesses through our strategic investment portfolio; the impact of future gains or losses from our strategic investment portfolio including gains or losses from overall market conditions that may affect the publicly traded companies within our strategic investment portfolio; our ability to protect our intellectual property rights; our ability to develop our brands; the impact of foreign currency exchange rate and interest rate fluctuations on our results; the valuation of our deferred tax assets and the release of related valuation allowances; the potential availability of additional tax assets in the future; the impact of new accounting pronouncements and tax laws; uncertainties affecting our ability to estimate our tax rate; uncertainties regarding our tax obligations in connection with potential jurisdictional transfers of intellectual property, including the tax rate, the timing of the transfer and the value of such transferred intellectual property; uncertainties regarding the effect of general economic and market conditions; the impact of geopolitical events; uncertainties regarding the impact of expensing stock options and other equity awards; the sufficiency of our capital resources; risks related to the availability and funding of our bridge loan facility and term loan associated with our proposed acquisition of Slack Technologies, Inc. and other indebtedness; our ability to comply with our debt covenants and lease obligations; and the impact of climate change, natural disasters and actual or threatened public health emergencies, including the ongoing COVID-19 pandemic. Further information on these and other factors that could affect the company’s financial results is included in the reports on Forms10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of the company’s website at ., inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law. 8 |

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