Climate Change Data

Environmental Metrics

Social Achievements

• Named one of the Best Places to Work on Glassdoor for the years 2018 through 2021.
• Established the Diversity and Employee Success team.
• Founded the Black eXp Network (BEN) and the ONE eXp initiative to foster diversity and inclusion.

Climate Goals & Targets

Environmental Challenges

• Rapid growth requiring efficient scaling of business and systems.
• Maintaining agent growth rate.
• Understanding and communicating the value proposition to agents and brokers.
• Attracting and retaining qualified personnel.
• Limited operating history and need for consistent profitability.
• Potential limitations on utilizing net operating loss carryforwards.
• Exposure to changes in tax laws and regulations.
• Unproven nature of 3D cloud-based immersive office strategy.
• Risks associated with acquisitions and investments.
• Risks related to international operations.
• Dependence on key executive officers.
• Potential for intellectual property infringement.
• Previously identified material weaknesses in internal control over financial reporting (remediated in 2020).

Mitigation Strategies

• Implemented remedial measures to address control deficiencies leading to material weaknesses.
• Established an internal audit team and IT compliance oversight function.
• Provided training on internal controls and improved documentation.
• Enhanced controls and reviews related to IT system changes.
• Redesigned system access controls.
• Continued investment in technology and expansion into new markets.
• Agent equity programs and revenue sharing plans to incentivize agents.
• Focus on agent and employee experience through Net Promoter Score® (NPS).

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Places to Work on Glassdoor (2018-2021)

Environmental Metrics

ESG Focus Areas

• environmental
• social
• governance

Environmental Achievements

• Not disclosed

Social Achievements

• Launched One eXp initiative to promote diversity, equity, belonging, and inclusion.
• Joint initiative with New Story to build 100 homes in Mexico after earthquake damage.
• eXtend-a-Hand, a 501(c)(3) nonprofit, provided financial assistance to agents facing catastrophic events.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Maintaining agent growth rate.
• Effectively managing rapid business growth.
• Growing in various local markets and identifying new business opportunities.
• Implementing business model changes without disproportionately increasing expenses or reducing profit margins.
• Attracting and retaining qualified personnel.
• Maintaining compliance with laws and regulations concerning agent classification and compensation practices.
• Protecting intellectual property rights.
• Addressing material weaknesses in internal control over financial reporting.
• Remaining an innovative leader in the real estate industry.
• Expanding, maintaining, and improving systems and technologies.
• Protecting against security breaches and system failures.
• Protecting against cybersecurity incidents.
• Maintaining compliance with network marketing regulations.
• Complying with laws and regulations concerning customer privacy and personal information.
• Potential for stock price volatility and dilution.

Mitigation Strategies

• Investing in internal systems, integrating with third-party systems, and maintaining infrastructure performance.
• Scaling internal business systems and services organization.
• Competing successfully against other brokerages for agents, brokers, and consumers.
• Implementing cost-effective strategies for expansion into new markets and business lines.
• Offering competitive compensation and benefits packages.
• Continuously monitoring business practices for compliance with applicable laws, rules, and regulations.
• Asserting intellectual property rights against infringement.
• Implementing remedial measures to address control deficiencies.
• Continuously improving the performance, features, and reliability of its Internet-based virtual environment.
• Expanding, maintaining, and improving the technology that supports business operations.
• Employing measures to prevent, detect, address, and mitigate cybersecurity threats.
• Ensuring compliance with network marketing regulations in each market.
• Implementing measures to protect the security of personal information and comply with privacy regulations.
• Implementing a stock repurchase program.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Named one of the Best Places to Work on Glassdoor (2019-2021).
• Named one of the Top 100 Companies to Watch for Remote Jobs by FlexJobs (2021).

Environmental Metrics

ESG Focus Areas

• Agent/employee diversity, inclusion/equity
• Anti-corruption/antibribery
• Business ethics/integrity/transparency
• Community engagement/impact
• Data privacy/cyber security
• Energy use/greenhouse gas emissions
• ESG governance/education
• Executive compensation
• Market presence/expansion
• Non-discrimination of clients/communities
• Physical/psychological safety
• Cloud technology to lower environmental impact
• Remote working culture
• Responsible marketing/content practices
• Responsible tax behavior
• Product/service accessibility/social inclusion
• Talent attraction/retention
• Training/coaching/development
• Waste/electronic waste
• Resilience to climate/other global impacts
• Responsible supply chain/service providers

Environmental Achievements

• Cloud-based model resulting in insignificant physical footprint and minimal environmental impact

Social Achievements

• Community involvement initiatives, including "I Heart eXp" week and partnership with New Story to build homes in Mexico
• Commitment to diversity and inclusiveness through ONE eXp initiative and various employee resource groups
• Expansion of eXtend-a-Hand to provide financial assistance to agents facing catastrophic events
• Named one of the Best Places to Work on Glassdoor (2019-2022) and one of the Top 100 Companies to Watch for Remote Jobs by FlexJobs (2021-2022)

Governance Achievements

• Conducted ESG materiality assessment with GlobeScan to identify key focus areas and develop a strategy to address material ESG topics

Climate Goals & Targets

Environmental Challenges

• Rapid growth requiring efficient scaling of business systems and services
• Attracting and retaining qualified personnel in a competitive market
• Maintaining agent growth rate in a fluctuating real estate market
• Managing risks associated with international operations
• Protecting intellectual property rights
• Maintaining compliance with complex and evolving regulations
• Protecting the privacy and personal information of customers, agents, and employees
• Risks associated with new business initiatives (SUCCESS Lending and SUCCESS Franchising)
• Stock price volatility and potential dilution

Mitigation Strategies

• Investing in internal systems and infrastructure improvements
• Implementing competitive compensation and incentive programs
• Leveraging a low-cost, high-engagement model
• Assigning appropriate personnel to manage compliance with international regulations
• Asserting intellectual property rights against infringement
• Allocating resources to maintain legal compliance
• Implementing measures to prevent, detect, and mitigate cybersecurity threats
• Continuously monitoring and adapting to regulatory changes
• Implementing robust data security and privacy measures
• Actively managing risks associated with new business initiatives
• Maintaining a stock repurchase program

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Places to Work on Glassdoor (2019-2022)
• Top 100 Companies to Watch for Remote Jobs by FlexJobs (2021-2022)

Environmental Metrics

ESG Focus Areas

• empowering people development
• building inclusive and equitable communities
• advancing climate-positive solutions

Environmental Achievements

• reduced GHGs and environmental impact including server energy, waste and agent travel

Social Achievements

• provided tools for productivity and health and wellbeing, for our employees, access to wellness platforms such as Calm, Vitality and Noom, and, for our real estate agents and brokers, providing toolkits for scaling business and entrepreneurship
• established the Realtor Safety Taskforce whose mission is ensuring the utmost safety of our agents while they are representing eXp, including at eXp-sponsored events and meetings, and we provide safe and inclusive workspaces within our virtual world
• created the Women’s Impact Network to further the success, health and wellbeing of our female agents and employees while providing an outlet for diverse and inclusive voices
• contribute to building equitable communities through the sponsorship of many community initiatives which are well attended by our employees, agents and brokers
• continued expanding initiatives driven by our 501(c)(3) affiliated nonprofit, eXtend-a-Hand, whose mission is to provide financial assistance to independent agents of the Company who suffer catastrophic events, including, without limitation, natural disasters, illness and accidents and in the case of dependents or designated beneficiaries, the death of their independent agent family member

Governance Achievements

• created a Sustainability Committee of the Board tasked with overseeing and developing, alongside management, strategies related to the material ESG topics identified in the assessment

Climate Goals & Targets

Environmental Challenges

• declining real estate transaction volumes due to inflation and rising interest rates
• unable to maintain agent growth rate
• reduction in the Company’s portion of the commission revenue from property sales transactions
• agents and brokers may not understand or appreciate the value of the revenue sharing plan
• decline in demand for the application-based Virbela platform
• various legal proceedings
• intense competition for real estate professionals
• difficulty in attracting and retaining qualified personnel
• security breaches, interruptions, delays and failures in our systems and operations
• cybersecurity incidents
• changes in tax laws and regulations
• difficulty in managing growth
• failure to protect intellectual property rights
• failure to accurately predict demand or growth of new products and services
• risks associated with acquisitions, mergers, joint ventures or investments
• risks associated with international operations
• risks associated with agent and broker misconduct
• risks associated with non-compliance with laws and regulations

Mitigation Strategies

• instituted a series of strategic initiatives including Boost, Thrive, Accelerate, and Masterminds, with a sustained emphasis on agent productivity
• implemented cost savings initiatives
• continued to pursue growth opportunities and increase market share in the countries where operations began in recent years
• focused on increasing productivity throughout our international entities
• expanded the eXp Luxury program
• continued to develop the core Virbela enterprise virtual world technology and the newer WebXR FrameVR (“Frame”) platform
• evaluated capital deployments between various platform offerings
• vigorously defending against all claims in legal proceedings
• executed contractual agreements with real estate professionals that mandate compliance with applicable laws and adherence to established policies and procedures
• assigned and/or engaged appropriate personnel to manage and comply with regulatory requirements

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• natural disasters

Transition Risks

• regulatory changes
• market shifts

Opportunities

• development of energy-efficient products

Awards & Recognition

• Best Places to Work on Glassdoor (2019-2023)
• Top 100 Companies to Watch for Remote Jobs by FlexJobs (2021-2023)