Climate Change Data

Etsy, Inc.

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:407,021 tCO2e
Scope 1 Emissions:294 tCO2e
Scope 2 Emissions:914 tCO2e
Scope 3 Emissions:404,439 tCO2e
Renewable Energy Share:100%
Total Energy Consumption:13,138 MWh
Water Consumption:9 m3/year
Waste Generated:3 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Economic Impact
  • Social Impact
  • Ecological Impact

Environmental Achievements

  • Met goal to source 100% of electricity from renewable energy
  • Ran a carbon neutral business for 2020

Social Achievements

  • More than doubled the percentage of leadership-level employees who identify as an underrepresented minority (Black, Latinx, or Native American)
  • Increased U.S. underrepresented minority employee population from 8.5% in 2018 to 12.5% in 2020
  • Expanded seller education to help them manage their shops during the pandemic
  • Implemented seller fee reductions
  • Expanded marketing strategies to further support and feature underrepresented minority sellers
  • Launched advocacy campaigns to win government support and economic relief for small businesses

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero by 2030 through a 50% absolute reduction in Scope 1 and 2 greenhouse gas emissions and a 13.5% absolute reduction in Scope 3 greenhouse gas emissions
Medium-term Goals:
  • Achieve a 25% reduction in the intensity of Etsy’s energy use by 2025
  • Ensure at least 50% of Etsy’s small- and medium-sized enterprise suppliers are owned by women, minorities, or veterans by 2022
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Rapid growth and potential infrastructure limitations
  • Economic downturns, natural disasters, public health crises, and geopolitical changes
  • Quarterly operating result fluctuations
  • Technology disruptions and data security risks
  • Maintaining trustworthy marketplaces and community engagement
  • Intense competition
  • Keeping pace with technological changes
  • International expansion challenges
  • Risks related to acquisitions and strategic investments
  • Regulatory compliance and legal risks
  • Evolving global legal and regulatory requirements
  • Potential for litigation and regulatory matters
  • Intellectual property claims
  • Fluctuations in tax obligations and effective tax rate
  • Debt obligations and potential need for additional capital
  • Inadequate insurance coverage
  • Activist stockholder actions
  • Maintaining effective internal control over financial reporting
  • Changes to accounting methods for convertible debt
  • Stock price volatility
  • Potential for additional dilution
  • Brexit uncertainties
Mitigation Strategies
  • Investing in infrastructure, human resources, and operational resources
  • Developing strategies to mitigate economic and geopolitical risks
  • Investing in technology and security measures
  • Enhancing customer service and trust and safety programs
  • Investing in product development and marketing
  • Expanding international operations strategically
  • Implementing robust integration processes for acquisitions
  • Proactive compliance efforts and legal risk management
  • Tax planning and risk management
  • Maintaining a strong cash position and access to capital
  • Comprehensive insurance coverage
  • Engaging with activist stockholders constructively
  • Robust internal controls and financial reporting processes
  • Adapting to accounting standard changes
  • Stock repurchase program
  • Monitoring Brexit developments and adapting business operations

Supply Chain Management

Supplier Audits: 59% of Etsy’s suppliers (representing 84% of Etsy’s supplier spend)

Responsible Procurement
  • Supplier vetting program
  • COVID-19 economic relief fund for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters and adverse weather conditions
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Participation in renewable energy programs
  • Adopting energy-efficiency measures

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed