At Etsy, our ecological impact work aims to build long-term resilience by eliminating our carbon impacts and fostering responsible resource use.

We recognize the urgency and importance of doing our part in trying to prevent the worst effects of climate change. That's why this year we set a long-term carbon-reduction goal that is aligned with science. Our new Net Zero by 2030 goal includes a 50% absolute reduction in our Scope 1 and Scope 2 greenhouse gas emissions and a 13.5% absolute reduction in our Scope 3 greenhouse gas emissions.

And we're already meeting ambitious milestones along our carbon reduction journey. We achieved our 2020 goal of sourcing 100% of our electricity from renewable energy. We also reported significant energy efficiency gains in our computing with a 23% reduction between 2018 and 2020, despite substantial growth in our business over the same time period.

Other highlights of our 2020 progress include:

• Continuing to run a carbon neutral business by investing in 404,737 verified emissions reductions that protect forests, sponsor wind and solar farms, and help develop greener methods for producing auto parts.
• Running zero waste operations for the third year in a row by diverting over 90% of waste from landfill.
• Advocating for ambitious regional policies that have the potential to accelerate the decarbonization of the transportation and logistics sector.
• Adding a “local seller” signal to listing pages when the buyer is in the same ship-from region as the item, which can reduce our carbon footprint from shipping.
• Deepening our strategic sourcing program with 81% of Etsy's spend going to companies that have set a greenhouse gas emissions reduction goal.
• Expanding accountability for the impacts of our business by adding new areas to our carbon footprint: (1) The packaging our sellers use to ship products to buyers (2) the energy use from consumer devices for our websites and apps 3) our purchased goods and services. We also estimated and reported on energy used by all our global employees working from home as a result of Covid-19.

Our full carbon footprint and progress against our goals can be seen in our Integrated Annual Report. In addition to disclosing according to The Sustainability Accounting Standards Board's (“SASBs”) standards, we have added a Task Force on Climate-related Financial Disclosures (“TCFD”) section to address the risks and opportunities arising from climate change.

In 2021, our ecological Impact work will focus on these targets:

1. Achieving best-in-class sustainable operations by sourcing 100% renewable electricity, reducing the intensity of our energy use, and running zero waste operations.

• Continue to source 100% of Etsy's electricity from renewable sources.
• Achieve a 25% reduction in the intensity of Etsy's energy use by 2025.
• Maintain zero waste across global operations for Etsy.
• Run zero waste operations at Reverb by 2025.

2. Achieving Net Zero by 2030 and run a carbon neutral business now.

• 50% absolute reduction in Scope 1 and 2 greenhouse gas emissions by 2030.
• 13.5% absolute reduction in Scope 3 greenhouse gas emissions by 2030.
• Offset 100% of measured Scope 1, 2, and 3 greenhouse gas emissions annually.

3. Establishing our marketplaces as destinations for sustainably-minded shoppers and conscious living.

• By 2021, define a key performance indicator and establish a baseline for marketplace sustainability.

We are excited about the goals we've set for the company and we're committed to holding ourselves accountable through regular, transparent reporting on our progress. We'll continue to bring you more updates throughout the year through this section of our Impact blog.