Measuring Supplier-Enabled Decarbonization We know our supplier enablement work will have a big impact on our value chain emissions, but forecasting exactly what those reductions will look like is challenging. A lot of the decision-making that will lead to these reductions is outside of our direct control, and the availability of supplier data is often limited. That said, we expect the collective impact of our suppliers setting and achieving SBTs, purchasing renewable energy, and compensating for their remaining emissions will be significant. We estimate that by 2030, these efforts will lead to a 90% reduction in supplier emissions relative to business as usual (see Figure 1). Over time, we’ll continue to refine our methodology and share what we learn about calculating and forecasting supplier emissions. Even with deep decarbonization throughout our supply chain, some supplier emissions will remain. We’ll continue to compensate for these emissions by purchasing carbon credits2, always working to minimize the number of carbon credits required to maintain Net Zero emissions by prioritizing absolute emissions reductions first. We know that we are not alone in facing these data and transparency challenges. Global supply chains are complex and visibility into first-tier suppliers, much less the nth tier, is often limited. Our superpower at Salesforce is bringing Figure 1: Supplier Enablement Reduction Measures companies and customers together, and we’re excited about the technology we can bring to bear in solving this problem. Our Scope 3 Hub supports value chain emissions accounting, and Net Zero Cloud (formerly Sustainability Cloud) with Slack integration will help companies better communicate and collaborate with their suppliers. We will continue to focus on leveraging the full power of Salesforce to improve the state of GHG accounting and to open communication and data-sharing channels between suppliers and customers. In the spirit of increasing data collaboration between companies, we’re also committed to sharing allocated emissions data with our own customers. We provide them with a clear and comprehensive view of the GHG emissions attributed to the products and services delivered to them by Salesforce. By setting this example and sharing trusted and actionable Salesforce-related emissions data, we urge our customers to develop and track their own climate targets and increase transparency within their own supply chains. 2 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. 9 | Salesforce.com/sustainability