Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental impact
• IT infrastructure sustainability
• Energy, emissions, and climate
• Employee experience
• Talent attraction and engagement
• Employee health, safety, and well-being
• Diversity, equity, and inclusion
• Equal pay and wage gap
• Accessibility
• Ethical business practices
• Business ethics and integrity
• Product responsibility and data ethics
• Human and labor rights
• Privacy and data security
• Risk management

Environmental Achievements

• Achieved carbon neutrality for Scope 1, Scope 2 (market-based), and Scope 3 business-travel emissions
• Sourced 100% renewable energy for all of our data center IT power
• Reduced total energy consumption in leased offices/studios and data centers by 26% from 2020
• Reduced absolute Scope 1 and Scope 2 (location-based) emissions by 31%, compared with 2020
• Achieved a 63% reuse rate for data center hardware by refurbishing and reselling decommissioned servers
• Total landfill diversion is 84% including compost and recycling in studios, and recycled and resold IT equipment from data centers

Social Achievements

• 42% of senior leaders are women
• 12% of workforce identifies as an underrepresented minority (URM)
• $1.68 million total employee donations and corporate gift matching
• Launched the DEI Trailblazer Award
• Co-developed the Black Equity Index
• Launched a digital toolkit that helps employees guide, evaluate, and incorporate well-being into their work and their personal life
• Implemented the Modern Health Partnership, resulting in 91% of users reporting increased health and well-being

Governance Achievements

• Completed first ESG priority assessment
• Delegated oversight of ESG activities, programs, and disclosures to the Nominating and Corporate Governance committee of our board of directors in May 2022
• Delegated oversight of human capital management activities to the Compensation committee of our board of directors in May 2022
• 99% of full-time employees completed annual code of conduct training

Climate Goals & Targets

Environmental Challenges

• Understanding how the remote work model—including employees’ at-home energy consumption—will affect our total energy consumption and emissions
• Overall representation for women was slightly down (year over year) and for URMs was flat (year over year) in 2021

Mitigation Strategies

• Investing in programs that promote DEI in the workplace
• Working with property managers to directly source renewable energy for colocated data centers, and purchasing renewable energy certificates (RECs) for the rest of our energy footprint
• Reducing overall emissions, favoring carbon reductions over offsets, and seeking opportunities to partner with our landlords to directly procure renewable energy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, UNGC

Certifications: LEED Platinum/Gold, ISO 27001, ISO 27701, ISO 27017, ISO 27018, ISO 22301, SOC 1, 2, 3

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

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Named one of the “Most Innovative Companies” in 2022 by Fast Company
• Named “Best Place to Work for LGBTQ Equality” for the 8th year in a row

Environmental Metrics

ESG Focus Areas

• Protecting our users
• Putting people first
• Acting with integrity
• Owning our impact

Environmental Achievements

• Reduced electricity usage by an estimated 5.1 million kilowatt hours in data centers in 2022 through Deep Sleep technology.
• Sourced 100% renewable energy for the second year in a row.
• Achieved carbon neutrality for Scope 1, Scope 2 (market-based), and Scope 3 business travel and work-from-home emissions.

Social Achievements

• Increased employee volunteer hours by 91.5% from 2021.
• Launched a new mandatory leadership development program for all managers.
• Expanded fertility and family formation benefits internationally.

Governance Achievements

• Expanded the Office of the Data Protection Officer.
• 99% of full-time employees completed annual code of conduct and information security training.

Climate Goals & Targets

Environmental Challenges

• Significant energy consumption required to power AI technology.

Mitigation Strategies

• Continued focus on renewable energy sources for data centers and transparency about progress.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), UN Global Compact (UNGC)

Third-party Assurance: Ernst & Young LLP (EY)

Environmental Metrics

ESG Focus Areas

• Privacy and data security
• Product responsibility and data ethics
• Accessibility
• Employee health, safety, and wellbeing
• Equal pay and wage gap
• Diversity, equity, and inclusion
• Talent attraction and engagement
• Business ethics and integrity
• Human and labor rights
• Risk management
• Energy, emissions, and climate
• IT infrastructure sustainability

Environmental Achievements

• Achieved carbon neutrality for Scope 1, Scope 2 (market-based), and Scope 3 business travel emissions
• Sourced renewable energy to meet 100% of our electricity consumption
• Reduced energy consumption in data centers by approximately 5 million kilowatt hours through Deep Sleep technology

Social Achievements

• 63% increase in employee engagement with the revamped Dropbox Neighborhoods program
• Donated more than $1.4M to nonprofit and community organizations globally through employee fundraising and corporate gift-matching
• Volunteered over 5,000 hours to nonprofit and community organizations globally

Governance Achievements

• Published AI Principles to guide AI product development
• Implemented an automated system for data subject requests (DSRs)
• Expanded quantitative risk program

Climate Goals & Targets

Environmental Challenges

• Increased energy expenditure and potential inability to remain carbon neutral due to increased cost or limited availability of RECs
• Increased expenditure due to transition from carbon offsets to carbon removals
• Brand and legal impacts due to inadvertent misreporting of emissions data
• Increased expenditure due to increased oversight on Scope 3 emissions
• Reputational damage due to insufficient IT infrastructure reusability, recyclability, and efficiency practices

Mitigation Strategies

• Developing more robust frameworks for managing priority topics
• Working with property managers to directly source renewable energy for co-located data centers
• Purchasing RECs for the remainder of our energy footprint
• Exploring ways to harness AI to develop products that drive additional progress on environmental goals and targets

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• FCPA compliance screening

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 27001, ISO 27701, ISO 27017, ISO 27018, ISO 22301, SOC 1, SOC 2, and SOC 3, NIST SP 800-171 R2, EU-US Data Privacy Framework, UK Extension to the EU-US Data Privacy Framework, Swiss-US Data Privacy Framework, GDPR, EU Cloud Code of Conduct

Third-party Assurance: Ernst & Young LLP (limited assurance)

Awards & Recognition

• Equality 100 Award: Leader for LGBTQ+ Workplace Inclusion (Human Rights Campaign Foundation)
• Best Places to Work (Built In)
• #1 Top Tech Company for Culture and Values (Glassdoor)
• Highest Rated Public Cloud Companies To Work For (Battery)
• Campus Forward Award Winner (Ripple Match)
• U.S. Best Places to Work
• U.S. Best Large Places to Work
• Seattle, WA Best Places to Work
• Seattle, WA Best Large Places to Work
• San Francisco, CA Best Places to Work
• San Francisco, CA Best Large Places to Work
• Remote Best Places to Work
• Remote Best Large Places to Work