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Decarbonizing a Work from Anywhere World


Emissions Reduction Decarbonizing a Work From Anywhere World salesforce sustainability, 2021

Executive Summary COVID-19 has fundamentally changed how and where people work, shining a spotlight onthe desire of workers for flexibility and balance (e.g., spending less time commuting). Salesforce is committed to maintaining an adaptable, hybrid approach to work. This approach incorporates a number of strategies that will result in a reduction of carbon emissions per employee. These strategies include selecting low emissions buildings for our offices, increasing energy efficiency in buildings we operate, selecting low-carbon materials, supporting a sustainable remote work experience, and decarbonizing employees’ commutes. “An immersive workspace is no longer limited to a desk in our Towers; the 9-to-5 workday is dead; and the employee experience is about more than ping- pong tables and snacks.” Brent Hyder, President & Chief People Officer, Salesforce While we are working hard to decarbonize our own value chain, we understand that will not be enough. We also need to prioritize even greater leadership in this space, supporting systemic change at a speed and scale sufficient to meet the climate emergency head-on. This includes supporting industry organizations, developing public resources, and lobbying for climate policy. Every business must take action by using their sustainability superpowers: their influence, purchasing power, and core strengths. This is an area where all businesses have relevance, and we have a tremendous opportunity to collaborate and learn from each other. It will take all of us working together to mitigate the climate crisis and safeguard our collective 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 |

Time for Action The Intergovernmental Panel on Climate Change’s Sixth Assessment Report (AR6) makes clear that the time for society to act on climate is now. AR6 states that without aggressive reductions in greenhouse gas (GHG) emissions, global temperatures in the early 2030s will exceed the Paris Agreement’s ambition to limit warming to 1.5° C. The built environment accounts for 39% of global emissions when building operations, energy for heating, cooling, and power, and materials and construction are accounted for. Consequently, it is a critical area where companies, including Salesforce, must contribute to climate action. COVID-19 has transformed workplaces and workforces. Many Salesforce employees want to work more flexibly, completing the majority of their work remotely while also having opportunities to come into the office periodically. This change to the way we work provides an unprecedented opportunity for decarbonization. 2 |

Our Workplace Decarbonization Strategy Salesforce is committed to building a more sustainable, low-carbon future for all. It is our vision to have the world’s most sustainable Work From Anywhere model, and we are targeting a 50% reduction in emissions intensity by 2030 (see Figure 1 below). Decarbonizing our real estate, employee commutes, and remote work is key to this vision. Figure 1: Work From Anywhere Emissions Reduction Measures Flex Workspace Our flex workspace approach recognizes that we can enable employee success, operate our business, and provide for our customers while working more sustainably from anywhere. In the new world of workplace flexibility normalized by COVID-19, we must also account for the fact that most people will work remotely for at least part of their workweeks. While remote working is only one factor in decreased emissions during study in Nature the pandemic, we have seen a glimpse into the potential climate benefits it could offer, with a estimating that global CO2 emissions decreased by 8.8% in the first half of 2020, compared with the same period in 2019 1. 1 Although we cannot pinpoint how much of the 8.8% emissions decrease during COVID-19 is due to remote working specifically, 40% of this decrease comes from ground transportation, 22% 
 from the power sector, 13% from the aviation sector, 3% from residential and commercial buildings, and the remainder from industry and international shipping. 3 |

Our Workplace Decarbonization Strategy At Salesforce, we are committed to enabling a distributed, Figure 2: Flex Workspace Emissions Reductions2 flexible workforce even after the pandemic. We’ve calculated that this strategy will reduce emissions per employee by 29% (see Figure 2). While home emissions will increase due to the additional energy required to support remote work, reductions in office energy emissions and commute emissions outweigh anticipated home increases. Digital Shifting to a distributed work model, powered by a HQ , will allow other businesses to achieve similar reductions. This is a once-in-a-generation opportunity for every company to reinvent themselves and make work more flexible, inclusive, and productive. There could not be a more exciting time for Salesforce and Slack to come together to help every company find success in this new Stewart Butterfield digital-first world.” CEOand Co-Founder of Slack Sustainability at Home We’ve always had a strong work-from-home population as part of our Salesforce@Home Program, but the pandemic provided an opportunity to enhance our home sustainability strategy. In September 2020, we released the Sustainability at Home guide to suggest how employees could make their homes more comfortable, productive, and sustainable. In it, we share actionable ways employees can improve workspaces and the planet. While our office- and commute-related emissions significantly decreased during the pandemic, we know that emissions increased elsewhere as our employees shifted to working from home. To better understand the carbon footprint of working from home, we estimated the increase in employee home energy consumption through a survey conducted in February Net Zero 2021. As part of our commitment, we are developing carbon reduction programs for the home energy emissions measured in the survey. After reduction options are exhausted, we will compensate for remaining emissions by investing in high-quality carbon credits. Moving forward, we will continue to measure (and offset3) home energy emissions based on learning from further annual surveys. 2 Salesforce Stakeholder Impact Report 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. 4 |

Our Workplace Decarbonization Strategy Sustainable Buildings For Salesforce, our buildings and spaces are a physical expression of our culture, where our employees feel empowered to do their best work and which have a lasting positive impact on our partners, customers, communities, and the environment Sustainable Built Environment Program around us. Through our global , we’ve implemented measures to reduce our environmental impact while delivering world-class space and looking for ways to innovate. Setting Standards: Design, Construction, Figure 3: Green Building Certifications vs. Operational Carbon Intensity and Certification Our workspaces are built to meet or exceed leading green building standards worldwide. We see green building certification as a driver for real estate project accountability, transparency, and sustainability. But our sustainable built environment strategy is much more than just a certification process; it’s a framework for delivering world-class, high- performing, low-carbon real estate. In fact, this certification strategy has been a key driver for our reduction in operational carbon intensity4 (see Figure 3). Additional operational carbon reduction strategies include prioritizing energy efficient fixtures, installing floor-level submetering to provide us with real-time data, and finding innovative solutions such as smart sensors and lighting control optimization to help us operate higher performing, more sustainable buildings. To continue driving improvements across our company, we have set a goal to increase energy efficiency 20% by 2030 compared to 2020. However, because we are tenants in the vast majority of the buildings we occupy, the most significant impact we can make is selecting the right buildings to begin with. Building Selection Strategy We prioritize sustainability from the very beginning of Salesforce’s real estate process by incorporating specific criteria as part green lease of the initial site search, prioritizing all-electric, green-certified buildings, and negotiating language for new and existing buildings that put the environment first. We put carbon impact at the forefront of building analysis and selection, using carbon as a key decision driver. To help our brokers understand our sustainability values, requirements, and preferences, we educate and train them on the latest industry trends. With ambitious sustainability targets to hit, our brokers and transactions managers play a crucial role in driving down carbon in our real estate. 4 Operational carbon intensity is a location-based measurement (excludes renewable energy purchases). 5 |

OurWorkplace Decarbonization Strategy Embodied Carbon Figure 4: Targeted Embodied Carbon Reductions Our Healthy and Sustainable Materials program propels efforts to bring healthier and more sustainable materials into our workplace. As part of this program and our pursuit Zero Carbon certification of , we evaluate the embodied carbon5 of materials to inform our procurement and material use decisions. Our efforts to date have resulted in a 20% reduction in embodied carbon (compared to industry baselines), and we have a target to reach 50% by 2026 and 80% by 2030 (see Figure 4). EmbodiedCarbon in Construction Calculator (EC3) is the industry leading tool for quantifying and reducing embodied carbon emissions. Salesforce is an early supporter and utilizes the tool to measure our own embodied carbon. We approach embodied carbon reduction by focusing on strategies that fall into the three categories described in Table 1 below. Table 1: Embodied Carbon Reduction Approach Embodied Carbon Reduction Approach Pros Cons Work with manufacturer # Advances partnership # May be difficult to to reduce carbon of with manufacture& convince manufacture& Product product # Reduces carbon of # Some products are not Decarbonization product for all customers specified and selected E.g., set 20% reduction goal by 2026 project by project for manufacturer of existing product Select alternate # Introduce new products # Product may have not low-carbon product to office construction, been used in office Product inspiring others to do the construction context E.g., substitute biobased insulation Alternate same instead of mineral wool board Change design to # Only “internal” # Minimal positive impacts reduce embodied coordination required outside of Salesforcè Design carbon (design team and # May be seen as sacrificing Change architects) other priorities (e.g., E.g., work with design team to use aesthetics, cost, etc.) less finishes 5 The emissions associated with the extraction, manufacturing, transportation, and installation of buildings, before and after their use. 6 |

Our Workplace Decarbonization Strategy To further advance our efforts to reduce supply chain carbon emissions, we include our Sustainability Exhibit in new supplier agreements. Some of the terms we ask for within the Exhibit include setting a science-based target, increasing sustainability- related disclosures, implementing a sustainability continuous improvement plan, and providing products and services on a carbon-neutral basis. In addition, we are committed to ensuring that suppliers representing 60% of our Scope 36 emissions set their own science-based targets by 2024. As of our FY21 reporting, suppliers representing 28% of our Scope 3 emissions have set or committed to setting targets. Sustainable Commute Even with many people continuing to work from home, others will travel to the office at least a few days a week. This means it’s important to pursue strategies that decarbonize employee commute. We begin by locating offices in dense urban areas, which facilitates access to public transit, biking infrastructure, and nearby housing. We’ve calculated that continuing our urban office strategy will result in significant avoided commute emissions (618,000 tCO2e7 from 2022-2030) compared to a strategy where offices are located in the suburbs (see Figure 5 below). Figure 5: Avoided Commute Emissions as a Result of Urban Office Strategy 6 Scope 3 includes all indirect emissions that occur in a company's value chain, including both upstream and downstream emissions. 7 Tonnes of Carbon Dioxide equivalent. 7 |

Our Workplace Decarbonization Strategy The benefits of our urban campus strategy are evident in the results of our 2019 commute survey8 (see Figure 6 and Figure 7 below), which show that 49% of commute trips were made by public transit while 11% were human-powered (walk/ run/bike). However, there is still significant room for improvement: 31% of employees drove alone, representing 66% of total carbon emissions. Furthermore, 85% of these trips were made in standard gas cars. Figure 6: 2019 Employee Commute Statistics Figure 7: 2019 Employee Personal Vehicle Breakdown As we work to further reduce the emissions associated with employee commutes, our strategies fall into the following categories: Shift Accelerate Transition commutes from drive Encourage EV adoption and alone to transit, bike, or carpool. increase office EV charging infrastructure. Move Create Increase our shuttle program to Introduce campaigns and incentives 100% EV by 2030 and expand to encourage sustainable service. commutes. Reducing emissions from business travel also plays an important role in our decarbonization strategy, and we’ll cover the details of that work in a separate white paper. 8 Represents pre-pandemic commuting patterns. 8 |

Here’s What You Can Do Salesforce is a Net Zero company today, but we must work together to achieve the deep decarbonization that science tells us is needed. All businesses have a role to play in decarbonizing the built environments where we work. Because the circumstances of every business are different, there is not a one-size-fits-all approach for reducing building emissions. Instead, businesses should adapt their strategies to their specific needs. To do so, we recommend: If you are a building landlord: Z Develop a decarbonization plar Z Electrify existing buildings and construct only all-electric buildingW Z Prioritize existing building reusk Z If new construction can’t be avoided, prioritize low embodied carbon materials, such as mass timber If you are a building tenant: Z Choose buildings with low-carbon attributes (e.g., all-electric, low embodied carbon, renewable energy Z Include green leasing language in your leaseW Z Collaborate with your landlords to put new decarbonization projects in place If you have a remote workforce: Z Educate employees about how to increase energy efficiency by changing appliance settings, unplugging “energy vampires” like phone chargers that consume energy when not in use, and buying energy efficient applianceW Z Encourage employees to power their homes with renewable energy by buying it through the grid, installing on-site renewables, and/or participating in community solar initiatives where available 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. In the built environment, the path to decarbonize is clear and achievable. Now, companies must make that path a reality. Learn more about Salesforce's Climate Action Plan 9 |

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 and other 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. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements it makes. 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 and foreign 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, and the 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 Forms 10-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. 10 |

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