Climate Change Data

Environmental Metrics

ESG Focus Areas

• Inclusive Growth
• Inspired Workforce
• Environmental Stewardship
• Ethical and Responsible Standards

Environmental Achievements

• Achieved 100% renewable energy for global operations
• 73% of office space earned green building certification
• First payments company to receive external validation of science-based target to reduce GHG emissions by 20% by 2025
• Reduced Scope 3 emissions by 42% between 2016 and 2017

Social Achievements

• Reached an estimated 330 million people and 7.6 million micro and small businesses through initiatives in over 60 countries
• Launched Mastercard Labs for Financial Inclusion
• Launched Mastercard Aid
• Increased female representation in workforce to 39% and in senior leadership to 30%
• Expanded parental leave policy globally
• Introduced back-up child and elder care options in several countries
• Expanded bereavement leave program globally

Governance Achievements

• Updated Code of Conduct to reflect best practices
• Implemented robust compliance system to prevent money laundering, terrorist financing, and sanctions evasion
• Established new routines to define and communicate risk balance between stability and agility
• Developed new policies and practices to identify, measure, and manage internal and external risks

Climate Goals & Targets

Environmental Challenges

• High cost of cash preventing financial inclusion
• Challenges with identification preventing access to financial products and basic rights
• Barriers faced by micro and small businesses in accessing tools and financial services
• Environmental impacts of cash and cryptocurrencies
• Supply chain emissions
• Cybersecurity threats

Mitigation Strategies

• Established Mastercard Center for Inclusive Growth
• Partnered with governments to link identity solutions with payments
• Developed Masterpass QR digital payment solution
• Launched Mastercard Farmer Network
• Implemented science-based target to reduce GHG emissions
• Engaged with suppliers to measure, report, and reduce emissions
• Implemented multi-layered security strategy and Fusion Center

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct requiring adherence to labor laws, human rights principles, and avoidance of forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option

Sustainable Products & Innovation

• Biodegradable credit card (partnership)
• Pay-as-you-go model for home solar energy systems (partnership)

Awards & Recognition

• World’s Most Ethical Companies
• Global CSR RepTrak
• Barron’s Most Respected American Companies
• DiversityInc’s Top 50 Companies for Diversity

Environmental Metrics

ESG Focus Areas

• Climate change
• Economic inclusion
• Cultural diversity
• Security of the global payments ecosystem
• Environmental stewardship
• Social equality
• Sustainability
• Gender diversity
• Financial inclusion
• Gender pay parity

Environmental Achievements

• Used 100 percent renewable electricity in 2020
• Expanded use of solar panels in data centers
• Priceless Planet Coalition to restore 100 million trees over five years (includes over 50 partners in 15 countries)
• Targeting a 38 percent reduction in all direct emissions and indirect emissions from electricity and a 20 percent reduction in other indirect emissions by 2025 (based on a 2016 baseline)
• First in the payments industry to target net zero emissions by 2050
• Issued a $600 million sustainability bond

Social Achievements

• Commitment to connect 1 billion people to the digital economy by 2025, with a direct focus on providing 25 million women entrepreneurs with solutions to help them grow their businesses
• Partnership with MTN to give millions of customers in 16 countries access to a secure, virtual payment solution linked to the MTN MoMo wallet
• Mastercard Index of Women Entrepreneurs report
• Partnership with Stride to provide customers with access to simple and affordable health, dental and vision coverage plans for independent workers
• Benefits21 initiative to ensure financial security and economic dignity for all workers
• Support for Black women-owned businesses
• Initiatives to empower underserved small businesses to recover and grow
• Initiatives to close wealth and opportunity gaps
• Partnerships with cities to assist an inclusive recovery

Governance Achievements

• Linking executive compensation for executive vice presidents and above to Mastercard’s environmental, social, and corporate governance (ESG) initiatives, focusing on carbon neutrality, financial inclusion, and gender pay parity

Climate Goals & Targets

Environmental Challenges

• Climate change
• COVID-19 pandemic impact on businesses and consumers
• Challenges in cross-border payments (slow speeds, high costs, limited transparency, fraud, complexity)
• Ransomware attacks in the healthcare industry
• Supply chain disruptions
• Lack of access to benefits for non-traditional workers
• Complexity of food supply chains
• Liquidity challenges for financial institutions
• Need for greater transparency and trust in digital identity
• Need for more efficient and inclusive disbursement of aid
• Inefficient consumer bill payment processes
• Devastating impact of the pandemic on the global travel and tourism industries
• Lack of purchase transparency in digital commerce and banking

Mitigation Strategies

• Leveraging business, technology, and partnerships to act on climate change
• Supporting banks, non-banking financial institutions, and digital platforms to improve cross-border payments
• Offering free access to RiskRecon services for healthcare organizations
• Developing portable benefits platform for independent workers
• Using blockchain technology to increase transparency and trust in supply chains
• Applying advanced data analytics to predict liquidity more effectively
• Developing a globally interoperable digital identity service
• Partnering with Oracle to speed up emergency aid disbursements
• Developing Mastercard Bill Pay for streamlined consumer bill payments
• Using data analytics to guide tourism investment
• Consumer Clarity to share purchase information between merchants and card issuers
• Extending Specialty Merchant Registration requirements to prevent illegal adult content

Supply Chain Management

Responsible Procurement

• Decarbonizing supply chains in collaboration with vendors globally
• Sustainable materials for cards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Cards made from sustainable materials

Environmental Metrics

ESG Focus Areas

• Financial inclusion
• Diversity, equity and inclusion (DEI)
• Climate change
• Data responsibility, privacy and security

Environmental Achievements

• Accelerated net-zero emissions target from 2050 to 2040
• Engaged over 85 partners in the Priceless Planet Coalition to restore 100 million trees
• Launched the Sustainability Innovation Lab
• Launched the Mastercard Carbon Calculator

Social Achievements

• Reached over 675 million people toward the goal of bringing 1 billion into the financial mainstream by 2025
• Advanced the In Solidarity initiative to combat racism and bridge the racial wealth gap
• Expanded flexibility and well-being offerings for employees
• Introduced Unlocked, an AI-driven digital platform for employee engagement

Governance Achievements

• Published Cybersecurity Principles
• Recognized by Ethisphere as one of the World’s Most Ethical Companies for the seventh consecutive year
• Linked executive compensation to carbon neutrality, financial inclusion, and gender pay parity

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Supply chain bottlenecks
• War in Ukraine
• Rising inflation
• Fractured geopolitical landscape
• Competition for talent leading to increased employee turnover (10.6% in 2021)

Mitigation Strategies

• Developed alternative sourcing strategies
• Expanded flexibility and well-being offerings for employees
• Implemented new standards to ensure living wages
• Invested in digitizing and modernizing financial service providers
• Launched initiatives to support small businesses
• Used data science for social impact

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Modern Slavery and Human Trafficking Statement
• Human Rights Statement
• Supplier engagement program to encourage net-zero targets

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Drought
• Extreme temperatures
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Impacts to travel patterns
• Inequitable global growth

Opportunities

• Sustainable and resilient programs and services
• Carbon calculator tools
• Accelerated digitization of transactions
• Resilience services

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Software & IT Services framework

Certifications: LEED, Well Health Safety Seal, Fitwel

Third-party Assurance: Apex Companies, LLC (Limited assurance for GHG emissions)

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Mastercard's initiatives contribute to these goals through financial inclusion, diversity and inclusion programs, climate action, sustainable products, and community engagement.

Sustainable Products & Innovation

• Mastercard Carbon Calculator
• Sustainable Card Badge and Certification Program
• Wildlife Impact Cards

Awards & Recognition

• Ethisphere’s World’s Most Ethical Companies
• Bloomberg’s Gender Equality Index
• Fast Company Innovation by Design Awards

Environmental Metrics

ESG Focus Areas

• Carbon Reduction
• Financial Inclusion
• Gender Pay Parity

Environmental Achievements

• 41% reduction in total Scope 1, 2, and 3 emissions from 2016 base year in 2022
• 44% reduction in Scope 1 and 2 GHG emissions from 2016 base year in 2022
• 40% reduction in Scope 3 GHG emissions from 2016 base year in 2022
• 100% renewable energy for operations for the sixth consecutive year
• 71% of waste generated by Mastercard-owned sites diverted through recycling, composting, donations, and other landfill diversion methods in 2022
• San Francisco office received TRUE Zero Waste certification in 2022

Social Achievements

• Increased global median pay for female employees to 94.0% of median pay for male employees (up 0.8% from 2021)
• Connected more than 100 million people to the digital economy in 2022 (780 million since 2015)
• Connected 9 million MSMEs to the digital economy in 2022 (35 million since 2020)
• Provided 8 million women entrepreneurs with solutions to help grow their businesses in 2022 (27 million since 2020)
• Invested $423 million in Black communities in the U.S. since 2020 (toward a $500 million goal by 2025)
• Educated 1.8 million girls through Girls4Tech® program in 2022 (3.6 million since 2014)

Governance Achievements

• Expanded data responsibility principles to include a commitment to inclusion
• Linked executive and employee compensation to ESG performance measures
• 100% of employees certified that they reviewed the Code of Conduct in 2022

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and 2 emissions in 2022 due to employee return to office, increased employee count, office footprint growth, and increased EPA eGrid emission factors
• Maintaining progress on U.S. Black leadership growth goal despite headcount growth and competitive talent market
• Maintaining compliance with increasingly rigorous regulatory oversight and compliance

Mitigation Strategies

• Working with utility providers to bring green energy to the grid, investing in long-term renewable energy projects
• Reassessing talent strategies and making significant investments in DEI strategy
• Implementing robust policies, procedures, and programs to promote compliance with applicable laws and regulatory obligations

Supply Chain Management

Supplier Audits: 78% of invited Tier 1 suppliers responded to CDP Climate Change Questionnaire in 2022

Responsible Procurement

• Supplier Code of Conduct
• Science-based emission reduction goals for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Extreme temperatures
• Drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: TRUE Zero Waste, LEED, WELL Building, FitWell, BREEAM, Greenstar, CEC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Mastercard focuses on SDGs where it can ensure demonstrable impact, leveraging its business, people, customers, and partners to influence real change.

Sustainable Products & Innovation

• Mastercard Carbon Calculator
• Sustainable Card program
• Touch Card
• True Name®

Awards & Recognition

• Dow Jones Sustainability Index North America
• World’s Most Ethical Companies
• #2 in DiversityInc’s Top 50 Companies for Diversity
• CDP A rating for supplier engagement
• Bloomberg Gender-Equality Index
• FTSE4Good Index Series
• MSCI ESG Rating of AA

Environmental Metrics

ESG Focus Areas

• People
• Prosperity
• Planet
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 48% from 2016 baseline.
• Reduced Scope 3 GHG emissions by 40% from 2016 baseline.
• Reduced total Scope 1, 2, and 3 emissions by 41% from 2016 baseline.
• Funded restoration of 17 million trees through Priceless Planet Coalition.
• 100% renewable energy used for operations for the seventh consecutive year.
• 85% of waste generated by Mastercard-owned sites diverted from landfill.

Social Achievements

• Increased global median pay for female employees to 96.4% of male median pay.
• Grew the number of U.S. Black leaders at VP level and above by 13% since 2020.
• Invested over $511 million in Black communities in the U.S. (exceeding the $500 million goal).
• Educated 6.8 million girls through Girls4Tech program (exceeding the 5 million goal).
• Connected more than 85 million people to the digital economy in 2023.
• Connected 13 million MSMEs to the digital economy through card acceptance in 2023.
• Provided 37 million women entrepreneurs with solutions to help grow their businesses (exceeding the 25 million goal).

Governance Achievements

• Linked executive and employee compensation to ESG performance measures.
• 100% of employees certified that they reviewed the Code of Conduct.
• Implemented robust anti-corruption compliance program.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events.
• Competitive marketplace for senior-level Black talent.
• Achieving the 100 million tree restoration goal by 2030.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Continued investments in DEI strategy.
• Implemented engagement tools and fundraising efforts to accelerate tree restoration progress.

Supply Chain Management

Supplier Audits: 91% response rate to CDP Climate Change Questionnaire in 2023

Responsible Procurement

• Supplier Code of Conduct
• In Solidarity initiative to increase procurement with Black-owned businesses

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Software & IT Services Standard, TCFD recommendations

Certifications: CEC (Card Eco-Certification)

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance on social metrics)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

See report for details on how initiatives contribute to these goals.

Sustainable Products & Innovation

• Mastercard Carbon Calculator
• Sustainable Card program
• True Name™
• Touch Card by Mastercard™

Awards & Recognition

• Bloomberg Gender Equality Index
• CDP Supplier Engagement Leadership score A-
• Ethisphere World’s Most Ethical Companies
• Fair360 #1 in Top 50 Companies for Diversity
• Many others (see report)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Circular Economy
• Eco-labelling
• Supply Chain Transparency
• Consumer Behavior

Climate Goals & Targets

Environmental Challenges

• Say-do gap: Consumers express interest in sustainable products but don't always act accordingly.
• Difficulty identifying truly sustainable products.
• Greenwashing erodes consumer trust.
• Sustainability is not the only consumer priority (cost, quality, convenience also matter).
• Financial pressures influence purchasing decisions.
• Lack of comprehensive and reliable information on products' environmental impact.

Mitigation Strategies

• Improved eco-labeling and standardization.
• Dynamic data and technology to track environmental impact throughout the product lifecycle.
• Increased transparency and data sharing across supply chains.
• Regulations promoting sustainable production and consumption.
• Consumer education and awareness campaigns.

Supply Chain Management

Climate-Related Risks & Opportunities