Our Approach Procurement Integration 2 Climate strategy is a key consideration in our supplier selection and performance assessment frameworks. For example, when choosing furniture vendors for our offices we scored proposals based on required information such as Environmental Product Declarations and full lifecycle assessments. Sustainability questions are standard in Salesforce requests for proposals. When scoring suppliers during strategic business reviews, we weigh sustainability metrics equally alongside traditional business measures such as cost, timeliness, and quality. We know sustainability is a journey, and some companies are just starting to develop their climate strategies. So we consider collaboration and effort as well as progress against our expectations. Including climate-related terms in business contracts is another powerful procurement lever. To be impactful, there must be consequences for non-compliance. That’s why the Salesforce Sustainability Exhibit includes a climate-positive “exclusive remedies” provision. If a supplier fails to meet the terms of their Exhibit, the remedy is a “climate remediation fee” paid to fund projects that support ecosystem conservation and restoration or clean energy projects. We want other companies to make climate action contractual as well. Our Sustainability Exhibit is publicly available, along with tips for introducing such terms into contracts. We hope others will use these resources to develop language that builds climate action into their own procurement contracts. Activating the Procurement Organization Salesforce’s sustainability strategy is fundamentally about embedding best practices throughout the organization. Supply chain sustainability engagement is no different - we have embedded this work in the procurement organization. For example, when we added the Sustainability Exhibit to our standard agreement templates, our legal team held training sessions and prepared a reference playbook to enable our procurement partners to understand, communicate, and negotiate the Exhibit. Our procurement partners influence who we spend our money with, negotiate the terms of our agreements and understand where we have leverage. Their deep knowledge of our suppliers is essential to strategizing engagements that land at the right time with the right approach. Empowering these procurement partners to implement sustainability initiatives is key to scalability. We’ve made sustainability a seamless part of our day-to-day purchasing processes and supplier relationships, thereby building an agile and resilient program that can reach our full supplier base. 5 | Salesforce.com/sustainability
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