Cdp2014 ebay

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1 Introduction 0. Introduction page CC0.1: Introduction eBay Inc. (NASDAQ:EBAY) is a global commerce and payments leader, providing a robust platform where merchants of all sizes can compete and win. Founded in 1995 in San Jose, Calif., eBay Inc. connects millions of buyers and sellers and enabled $205 billion* of commerce volume in 2013. We do so through eBay, one of the world's largest online marketplaces, which allows users to buy and sell in nearly every country on earth; through PayPal, which enables individuals and businesses to securely, easily and quickly send and receive digital payments; and through eBay Enterprise, which enables omnichannel commerce, multichannel retailing and digital marketing for global enterprises in the U.S. and internationally. We also reach millions through specialized marketplaces such as StubHub, the world's largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com. For more information on our environmental initiatives, please visit http://ebayinc.com/socialinnovation/. * This adjusted number reflects decision to remove vehicles and real estate GMV from ongoing total GMV and ECV metrics (previously stated ECV for 2013 was $212 billion, incorporating vehicles and real estate GMV). CC0.2: Reporting Year Tues 01 Jan 2013 - Tues 31 Dec 2013

Transcript of Cdp2014 ebay

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Introduction

0. Introduction page CC0.1: Introduction

eBay Inc. (NASDAQ:EBAY) is a global commerce and payments leader, providing a robust platform where merchants of all sizes can compete and win. Founded in 1995 in San Jose, Calif., eBay Inc. connects millions of buyers and sellers and enabled $205 billion* of commerce volume in 2013. We do so through eBay, one of the world's largest online marketplaces, which allows users to buy and sell in nearly every country on earth; through PayPal, which enables individuals and businesses to securely, easily and quickly send and receive digital payments; and through eBay Enterprise, which enables omnichannel commerce, multichannel retailing and digital marketing for global enterprises in the U.S. and internationally. We also reach millions through specialized marketplaces such as StubHub, the world's largest ticket marketplace, and eBay classifieds sites, which together have a presence in more than 1,000 cities around the world. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com. For more information on our environmental initiatives, please visit http://ebayinc.com/socialinnovation/. * This adjusted number reflects decision to remove vehicles and real estate GMV from ongoing total GMV and ECV metrics (previously stated ECV for 2013 was $212 billion, incorporating vehicles and real estate GMV). CC0.2: Reporting Year

Tues 01 Jan 2013 - Tues 31 Dec 2013

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CC0.3: Country list configuration

Country

Argentina

Australia

Belgium

Brazil

Canada

China

Croatia

Czech Republic

Denmark

France

Germany

India

Ireland

Israel

Italy

Japan

Korea, Republic of

Luxembourg

Malaysia

Mexico

Netherlands

Norway

Poland

Russian Federation

Singapore

Spain

Sweden

Switzerland

Taiwan, Province of China

Thailand

Turkey

Ukraine

United Kingdom

United States

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CC0.4: Currency selection

USD($)

CC0.5: Please select if you wish to complete a shorter information request

No CC0.6: Modules

None

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Management

CC1. Governance

CC1.1: Where is the highest level of direct responsibility for climate change within your organization?

Senior Manager/Officer

CC1.1a: Please identify the position of the individual or name of the committee with this responsibility eBay’s Global Director of Green is responsible for working with a cross functional group of business and functional unit leaders to establish goals regarding eBay Inc.’s greenhouse gas (GHG) emissions and other environmental issues, ensure that plans are in place to achieve these goals and monitor the company’s progress. The Director reports to the Senior Vice President of Communications, Brand, and Social Innovation who serves as an officer of the company and reports on goals and progress regularly to our CEO. The Director regularly monitors the company’s progress in achieving its goals regarding GHG emissions and other sustainability issues, and reports this both to business unit leaders as well as to the CEO. The company’s efforts towards achieving its goals will be measured against specific metrics related to, among other things, carbon impact, resource usage (energy and water), avoided costs (ROI) and operational efficiency targets. CC1.2: Do you provide incentives for the management of climate change issues, including the attainment of targets? No.

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CC2. Strategy CC2.1: Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1a: Please provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequency of monitoring

To whom are results reported?

Geographical areas considered

How far into the future are risks considered?

Comment

Annually Senior manager/officer

eBay Inc. evaluates climate change risks and opportunities at the global level using a cross-functional governance model. This evaluation occurs annually, at a minimum, but with higher frequency in regions where our operational footprint is most significant, specifically our major data center locations (Utah, Arizona, Nevada).

3 – 6 years

Our Social Innovation team coordinates the evaluation of and response to risks and opportunities with leadership across a number of key functional areas including operations (workplace, data center, fulfillment center), finance, government relations, legal and social innovation. Stakeholders from these teams develop specific responses to these risks & opportunities for their functional area and provide inputs to and review/approve the annual assessment and disclosure of these risks & opportunities.

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CC2.1b: Please describe how your risk and opportunity identification processes are applied at both company and asset level 1) Risks/opportunities at a company level: The Social Innovation team works across the corporation to bring together business leaders to identify risks/opportunities and align on management measures, including energy efficiency, renewable energy, low and predictable pricing, and reliable energy sourcing. To better understand globally changing dynamics, this team engages with key resources around the world, including finance, government relations, and operations leads, as well as external subject matter experts/researchers. These leaders/experts help us identify trends and opportunities, as well as current and potential social/policy/environmental issues that could materially impact our climate change risks and opportunities. As risks and opportunities are identified, the appropriate teams are engaged to drive further evaluation and implement appropriate response measures. 2) Risks/opportunities at an asset level: Individual teams have their own processes. For example, our Global Foundation Services team has defined processes for identifying risks and mitigation measures in the design and siting of new data centers as well as cleaner energy sourcing opportunities. An example outcome of this process is the 6MW fuel cell deployment done as part of our data center expansion in Salt Lake City, Utah. Rather than taking a business-as-usual approach in design and power sourcing from the grid, the GFS team engaged outside experts to evaluate the environmental and infrastructure reliability impacts of using on-site generation with the electrical grid as backup. It was determined that taking this approach would: - reduce construction costs - be 10 times less likely to have power failures - reduce expected annual CO2 emissions by 49 percent, compared to our phase 1 data center - increase overall efficiency when compared with other data centers that run on the traditional grid - allow our system to be online and available more frequently than those on the traditional grid

CC2.1c: How do you prioritize the risks and opportunities identified?

Risks and opportunities are prioritized across three main dimensions:

Financial implications of regulatory and physical risks, particularly as they relate to increasing energy prices and potential costs of responding to climate-related impacts on our facilities.

Reputation – eBay operates within a very competitive business climate, and our impact on and response to climate change has the potential to both positively and negatively influence our company reputation and brand value.

Current and future employee engagement – Our annual survey of employee sentiment as well as on-going feedback from those employees make it clear that they highly value our commitment to running our business in an environmentally and socially responsible manner. Further, competition for new talent is fierce, and we strongly believe that these commitments are a key tool for attracting and retaining high-quality talent.

CC2.2: Is climate change integrated into your business strategy?

Yes CC2.2a: Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process eBay Inc’s Social Innovation team works across the organization to integrate climate change and overall environmental thinking into the company’s business strategy. This team drives communications and stakeholder engagement across the company about environmental principles, programs and policies and serves as subject-matter experts to inform and influence our strategy across three main dimensions: financial, reputation, and employee engagement/recruiting.

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Changes in eBay Inc.’s short-term (< 3 year) strategy in response to climate change primarily influences operational practices, including:

- Transportation/employee travel – eBay Incl. has deployed a number of programs to drive down the carbon impacts of our employees’ travel, including installing more than 700 video conference units across our offices to eliminate trips entirely (more than 230,000 virtual meetings were held in 2013), operating employee shuttles in the San Francisco Bay area, supporting commuter alternatives such as transit and bicycle options, and growing the number of electric vehicle charging stations.

- Taking advantage of “greener energy” options from utility providers at some of our larger facilities in Europe and the US (see question 11.4)

- Implementing aggressive waste diversion programs at sites where local infrastructure supports these initiatives. For instance, our San Jose campuses have achieved landfill diversion rates over 90% for the past several years.

- Creating a metric for assessing the transaction-level efficiency of our Marketplaces data center infrastructure (see http://dse.ebay.com for more information). This metric allows us to analyze the carbon production and energy use per user action on our platform and make infrastructure and software changes to drive up efficiency and drive down GHG totals.

Changes in eBay’s long-term strategy (3 – 10+ years) in both physical infrastructure and energy investments include:

- Implementing a data center siting policy that includes a range of sustainability factors: o Available free air cooling o Ability to provide key metrics on facility and subleased space on energy use, water use,

waste, etc., as well as KPIs such as facility PUE, CUE, WUE, etc. o Incentive programs (tax, federal, state and local) to offset costs of sustainable measures o Current grid energy fuel mix (fossil/renewable) o Cost and permissive co-generation opportunities o Regional carbon capacities o Anticipated/future grid energy fuel mix (fossil/renewable) o Available solar energy capacity at or near the site o Available wind energy capacity at or near the site o Alternative water sources o Grey water reuse opportunities o Redevelopment and adaptive use opportunities o Ability of site to add scoring of LEED, BREAM or comparable system o Ability of site to contribute to net zero opportunities o Brownfield opportunities o Opportunity to locate in a rural area or diminished market

- Green building – Since 2008 every new building built by our Workplace Resources team has achieved LEED Gold certification. In 2013 our two latest LEED Gold buildings opened in Salt Lake City, Utah and Bangalore, India.

- Expanding our cleaner energy portfolio – eBay Inc. has a commitment to source 8% of total global electricity from cleaner sources by 2015. In 2013 we made substantial progress towards this goal through a solar array and large fuel cell deployment in Salt Lake City and entered into an agreement with a third party developer in the state to provide an additional 5 MW of cleaner energy to the site by the end of 2016.

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CC2.3: Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Trade associations Other

CC2.3b: Are you on the Board of any trade associations or provide funding beyond membership?

Yes.

CC2.3c: Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on climate change consistent with theirs?

Please explain the trade association’s position

How have you, or are you attempting to, influence the position

Business for Innovative Climate & Energy Policy

Consistent “In accordance with the recommendations of an overwhelming majority of leading climate scientists, BICEP’s overall goal is broad, bi-partisan consensus among policy makers to reduce US greenhouse gas emissions 80 percent below 1990 levels by 2050, with an interim goal of at least 25 percent below 1990 levels by 2020. We recognize that there are a number of ways to reach this level of mitigation. Principles are here: http://www.ceres.org/bicep/principles”

Via our leadership role in BICEP, we regularly support state and federal legislation and global policy that reinforces BICEP’s position on climate change. In April 2013, eBay Inc. cosigned BICEP’s climate declaration that was presented to Capitol Hill and the Administration. The Declaration was a private sector statement that climate change is one of the greatest economic challenges facing American businesses, and action to address climate change opens the door for American economic opportunity. We actively lobbied in support of the declaration and action to address climate issues. A list of other campaigns that we have been active on through our participation in BICEP can be found here: http://www.ceres.org/bicep/policy

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CC2.3g: Please provide details of the other engagement activities that you undertake

eBay supports the Information Technology Industry Council, which actively supports different energy/efficiency legislative proposals. Among them are: a. The Shaheen-Portman bill that is currently under consideration by the US Congress. This bill

focuses on energy efficiency, and more information can be found here: http://www.shaheen.senate.gov/imo/media/doc/Shaheen-Portman_One%20Page_Summary_113th.pdf

b. The Energy Efficient Government Act, which, again, is an efficiency bill: http://eshoo.house.gov/press-releases/eshoo-data-center-efficiency-legislation-passes-house/

eBay Inc. is a founding member of the Future of Internet Power, a working group convened via Business for Social Responsibility (BSR). This group is comprised of leading technology companies that will share and promote best practices and develop a platform for driving low-carbon, sustainable power for data centers in collaboration with select utilities and policymakers. eBay Inc. is also a member of the Silicon Valley Leadership Group. The Leadership Group is a key player in helping ensure the implementation of California’s AB 32 rewards efficiency, protects innovation and provides flexibility to seek out and implement the lowest-cost solutions, while also meeting our greenhouse gas reduction goals. In addition, the Leadership Group is increasingly active in federal-level advocacy for smart energy and climate policies. CC2.3h: What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? To ensure a coordinated approach to and positions on climate and energy policy activities, regular meetings are held between key internal stakeholder groups. Agendas for these meetings include a review of current and pending policy initiatives and discussion of how these do or do not align with our corporate climate and energy strategy, as well identify any opportunities/requests to engage with external stakeholders on these activities. It should be noted that it is a business reality that some trade associations and other external groups that advocate for non environment-related polices that are material to the success of eBay Inc. and our customers may at times hold/advocate for positions that conflict with our strategy with respect to climate and energy. As these conflicts are identified, our team of internal stakeholders uses these regular meetings to assess the best approach for resolving these issues.

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CC3. Targets & Initiatives CC3.1: Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?

Yes

Intensity target

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CC3.1b: Please provide details of your intensity target ID Scope % of emissions

in scope % reduction from base year

Metric Base year Normalized base year emissions

Target year Comment

Int1 Scope 2 52% 10 Other: Average grams CO2 per 1000 eBay.com

customer transactions

2012 45.8 2013 eBay’s Digital Service Efficiency is our metric to track the emissions, energy and revenue performance of our eBay.com infrastructure. Full dashboard can be found at http://dse.ebay.com.

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CC3.1c: Please also indicate what change in absolute emissions this intensity target reflects

ID Direction of change anticipated in absolute Scope 1+2 emissions at target completion?

% change anticipated in absolute Scope 1+2 emissions

Direction of change anticipated in absolute Scope 3 emissions at target completion?

% change anticipated in absolute Scope 3 emissions

Comment

Int1 Increase

15% No change

0 While the carbon intensity of our eBay.com platform will decrease, it is expected that overall eBay Inc. Scope 1& 2 emissions will continue to trend upward. However, we expect the pace of emissions growth to slow significantly as the result of both efficiencies and procurement of cleaner energy over the next 3 to 5 years.

CC3.1d: For all of your targets, please provide details on the progress made in the reporting year ID % complete (time) % complete (emissions) Comment Int1 100 0 eBay created the Digital

Service Efficiency metric in 2012 and set a preliminary goal to reduce grams carbon per 1000 URLs (i.e. external user server requests) by 10% in 2013. We set that goal knowing that there was a high probability that we would make adjustments to the calculation methodology as we put the tool into use. At the end of 2013, we engaged a third party to audit and verify the modified methodology. At the time of this filing, the results of this audit are being finalized. We are confident that the overall result of the audit will be a more robust metric.

CC3.2: Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?

No CC3.3: Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and implementation phases)

Yes

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CC3.3a: Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 1 0

To be implemented* 2 53,000

Implementation commenced* 1 5,943

Implemented* 3 21,982

Not to be implemented 0 0

CC3.3b: For those initiatives implemented in the reporting year, please provide details in the table below. Activity type

Description of activity

Estimated annual CO2e savings (tonnes)

Annual monetary savings (unit currency)

Investment required (unit currency)

Payback period

Estimated lifetime of initiative

Comment

Low Carbon Energy Installation

As part of our voluntary approach to reducing GHG emissions, eBay installed 6MW of oxide fuel cell capacity at our Salt Lake City data center location. This installation serves as primary power for the ‘SLC02’ data center and displaces Scope 2 carbon emissions.

5,706 $0.00 NA 16 – 20 years

20 years eBay Inc. opts not to disclose investment amount.

Low carbon energy installation

As part of our voluntary approach to reducing GHG emissions, we installed our largest ever (665kW) solar array at our Salt Lake City data center site. This array provides non-base-load energy free of Scope 1, 2 or 3 carbon emissions

538 $0.00 NA 4-10 years

20 years eBay Inc. opts not to disclose investment amount.

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Activity type

Description of activity

Estimated annual CO2e savings (tonnes)

Annual monetary savings (unit currency)

Investment required (unit currency)

Payback period

Estimated lifetime of initiative

Comment

Low carbon energy purchase

Renewable energy instruments purchased for office locations from our utility providers

15,738 0 NA NA 1 year

CC3.3c: What methods do you use to drive investment in emissions reduction activities?

Method Comment

Dedicated budget for energy efficiency

eBay Inc.’s Global Foundation Services team designs, builds and operates our data center infrastructure. This team prioritizes platform reliability and performance. Performance not only includes the up-front functionality of a given transaction, but also optimizing to use the smallest amount of energy and produce the smallest amount of carbon emissions for each transaction. The metrics for measuring these efficiencies is discussed in Question 3.1c; the full metrics dashboard for the eBay Marketplaces business can be found at http://dse.ebay.com/.

Dedicated budget for other emission reduction activities

The procurement (whether via on-site installations or off-site contracts) of lower-carbon energy is part of eBay Inc.’s data center expansion strategy. Cleaner energy is an essential component in reducing overall carbon intensity of our commerce platform, as described in Question 3.1b.

Employee engagement

Employee engagement is a key foundational element of eBay Inc.’s Social Innovation strategy. The origins of our Greener Commerce programs can be traced directly back to the grassroots passion of our employees. Today, eBay has 35 Green Teams around the world with 2,900 employee volunteers. These teams are briefed regularly on our energy and carbon approach, as well as educated about local initiatives that can impact our overall carbon footprint. Many of the extended team who work in operational energy efficiency, greener building, renewable energy and other areas are also Green Team members

Lower return on investment (ROI) specification

Historically, particularly for our low carbon energy investments, we have used alternative (as compared with standard business-as-usual) criteria for investment, including a longer payback period and lower ROI specification.

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Communications

CC4. Communications CC4.1: Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication Page/Section reference

Identify the attachment

In voluntary communications (underway) – previous year attached

Greener Commerce, pages 19 – 23

SocialInnovation_Book.071314.pdf

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Risks & Opportunities

CC5. Climate Change Risks CC5.1: Have you identified any climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply

Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

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CC5.1a: Please describe your risks driven by changes in regulations

Risk driver Description Potential impact Timeframe Direct/

Indirect

Likelihood Magnitude of impact

Estimated financial implications

Management methods

Cost of management

Fuel/energy taxes and regulations

Increased electricity prices and rate volatility, impacting operating costs in data centers.

Energy is an essential input to eBay Inc.’s business. Significant increases in energy prices would likely lead to increased operational costs for the company. However, as energy currently accounts for less than 5% of eBay Inc.’s overall operating expenses, this is considered a manageable risk.

Increased operational cost

> 6 years Indirect (supply chain)

Likely Low - Medium eBay Inc. is a large user of electricity, in particular through office and data center facilities, and we are subject to some risks related to regulatory actions negatively impacting electricity prices, as are all businesses that consume large amounts of electricity. As noted in Question 5.1a, total energy purchases currently account for less than 5% of eBay’s overall operating costs, so we consider this a manageable risk, particularly in the 1 – 6 year timeframe.

We have implemented a number of measures to manage this risk:

Energy source diversification, including sourcing and constructing additional cleaner energy capacity in 2013. This includes fuel cells powered by natural gas. Given the very low prices for this commodity, this provides a hedge against large energy price spikes for the next several years.

Improving the energy efficiency of our operations, particularly in our data centers and large office locations.

Through our membership organizations outlined in Questions 2.3c and 2.3g, we are actively advocating for polices that encourage renewable energy availability at a price point at or near commercial utility rates.

Managing energy cost increases are generally within the scope of current operations teams, so increases in staff costs are predicted to be minimal. Efficiency improvements represent cost savings, so no additional costs are anticipated for those programs. On-site energy generation requires additional up-front budget, both operational (consultants, staff time) and capital. The scope of these costs is dependent on the projects chosen and cannot be accurately quantified at this time.

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CC5.1b: Please describe your risks that are driven by change in physical climate parameters

Risk driver Description Potential impact

Timeframe Direct/

Indirect

Likelihood Magnitude of impact

Estimated financial implications

Management methods Cost of management

Change in precipitation extremes and droughts

eBay Inc.’s technical infrastructure relies on a network of ITC hardware and software providers, many of whom have key production facilities that have been or are at risk of disruption from extreme weather events. A recent industry example is the 2011 flooding in Thailand that disrupted computer hard disk production and led to hardware delivery delays. Similar incidents could directly impact eBay Inc.’s ability to deploy mission critical infrastructure and potentially increase the costs of some hardware components.

Reduction/ disruption in production capacity

Unknown Indirect (Supply Chain)

About as likely as not

Medium-high

Business disruptions as well as physical damage to facilities could increase costs and have potentially negative revenue impacts by restricting or disrupting altogether access to our platforms and services.

Business continuity, crisis management and emergency response processes are integrated at the corporate level to assure the safety of our employees and minimize the disruption to business operations. In addition, physical risks to operations are a key input to any expansion decision.

From a business perspective, eBay Inc.’s business is geographically diversified, and our physical risks are similar to but more dispersed than those of other retail or e-commerce companies.

Our Global Foundation Services team is responsible for our data center infrastructure; they have internalized this risk into their core functions. Given the essential strategic function of this team to eBay Inc.’s business, this team strives to anticipate hardware and other infrastructure needs far in advance, as well as have a diversified supplier

Managing these risks is currently part of the normal course of business at eBay Inc. so no additional costs over normal operational expenses are being incurred at this time.

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base. This significantly diminishes the impact on our business from climate-related supplier disruptions

Change in precipitation extremes and droughts

eBay Inc. has facilities in 34 countries around the world (see Q0.3). Some of these locations are more vulnerable than others to potential physical changes from climate change. These risks could include disruption of our operations or physical damage to our facilities from floods, fires or other extreme weather events and possible sea level rise. Drought and other climate-related decreases in the availability of fresh water could also pose a risk to our operations. This is most particularly the case for our data center operations.

Reduction/ disruption in production capacity

Unknown Direct More likely than not

Unknown Business disruptions as well as physical damage to facilities could increase costs and have potentially negative revenue impacts by restricting or disrupting altogether access to our platforms and services.

Business continuity, crisis management and emergency response processes are integrated at the corporate level to assure the safety of our employees and minimize the disruption to business operations. In addition, physical risks to operations are a key input to any expansion decision.

From a business perspective, eBay Inc.’s business is geographically diversified, and our physical risks are similar to but more dispersed than those of other retail or e-commerce companies.

To help address water risks, eBay Inc. includes water availability and risk as part of its data center sighting policy and is driving water efficiency to decrease overall demand.

Managing these risks is currently part of the normal course of business at eBay so no additional costs over normal operational expenses are being incurred at this time.

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CC5.1c: Please describe your risks that are driven by changes in other climate-related developments

Risk driver Description Potential impact

Timeframe Direct/

Indirect

Likelihood

Magnitude of impact

Estimated financial implications

Management methods

Cost of management

Changing consumer behavior

As a global commerce company, there are various ways that increases in energy prices could impact our customers and, consequently, our business. Higher consumer prices for energy could mean decreased buying overall, including on-line shopping. In eBay’s marketplaces business, higher liquid fuel prices could mean increased shipping costs for sellers and decrease on-line shopping demand. eBay Inc. is a global commerce company whose customers include hundreds of millions of users and millions of businesses. These individuals and companies could be affected by any number of climate change issues - including the financial impacts of fuel price volatility, weather volatility, sea level rise, etc. - which could present a general risk to our business. The most likely “additional risk” to our business is the impact of increasing energy prices on commerce. In addition to our own commerce platform infrastructure and the energy it requires, our business model relies heavily on shipping and logistics, some of which is done directly by eBay Inc. businesses but the majority of which occurs downstream of

Reduced demand for goods/services

Unknown Indirect (Client)

About as likely as not

Unknown Given the vast number of variables, including externalities beyond eBay inc's control, we are currently unable to assess the financial implications of changing consumer behaviour related to climate change

The diversification of eBay’s business is already providing customers with options that could help mitigate lower demand for on-line shopping. For instance, in 2013 the eBay Marketplaces business piloted a program to enable buyers find goods at local merchants but have the convenience of home delivery. This is only one example of how evolving programs can help reduce the business impacts of climate change.

Managing changing consumer behaviour is inherent in eBay’s business model, so no additional management costs are anticipated at this time.

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and out of our direct control. Increasing energy prices could quickly translate into higher shipping and logistics costs. If those costs are passed on in the prices offered to customers on our commerce sites, this could drive down demand for on-line shopping.

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CC6.Climate Change Opportunities CC6.1: Have you identified any climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in other climate-related developments

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CC6.1a: Please describe your opportunities that are driven by changes in regulation Opportunity driver

Description Potential impact

Timeframe Direct/ Indirect

Likelihood Magnitude of impact

Estimated financial implications

Management methods

Cost of management

Fuel/energy taxes and regulations

Climate-related regulations are likely to result in increased prices for fuel and commodities, with some geographies experiencing higher price pressure than others. eBay Inc.’s portfolio companies could benefit financially from this in a number of ways: - Increasing fuel and commodities prices could also drive up the price of new goods overall, driving increased interest in pre-owned items. As the one of the world’s largest marketplace for pre-owned goods, this could translate into increased sales and revenue for eBay Inc. - Higher fuel and goods prices in a particular region may drive up interest in on-line shopping, as consumers are able to comparison shop not only locally, but regionally and worldwide. - Higher transportation fuel prices might discourage consumers from driving to local stores and instead encourage them to either shop on-line or use one of eBay’s local pick-up services, increasing eBay Inc. revenue.

Increased demand for goods/services

> 6 years Direct About as likely as not

Low – medium

Changes in shopping behavior toward more on-line shopping, both for pre-owned and new goods, as well as interest in local delivery services could increase eBay Inc. revenue.

eBay Inc’s portfolio of businesses are constantly assessing and responding to changing customer requirements and consumer sentiment. This includes expanding and evolving existing services as well as creating new business models such as local delivery.

Managing and responding to changing consumer behaviour is inherent in eBay Inc.’s business model, so no additional management costs are anticipated at this time.

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CC6.1c: Please describe the opportunities that are driven by changes in other climate-related developments

Opportunity driver

Description Potential impact

Timeframe

Direct/

Indirect

Likelihood Magnitude of impact

Estimated financial implications

Management methods Cost of management

Reputation Increased attention on data center efficiency results in drive for increased innovation & transparency. It is possible that climate change-related regulations could not only drive up fuel costs, but also increase scrutiny on business sectors that are large energy consumers, such as internet-based companies like eBay Inc. While our sector is by no means as energy intensive as traditional manufacturing, there has been increased publicity around the contribution of ICT companies to global GHG emissions. Regulations that encourage transparency and innovation around the impacts of internet-based companies would play strongly to eBay Inc.’s strengths, as data center efficiency is a key pillar of our environmental programs. Our newest data center in Utah is the latest milestone in our multi-year data center consolidation strategy to transition into

Increased stock price (market valuation)

3-6 years

Direct Likely Low-medium

eBay Inc. does business in a strongly competitive environment. Increased positive brand recognition and sentiment could translate into positive competitive advantage and higher revenue across many of our business areas

A key focus of eBay Inc.’s Social Innovation team is to increase the frequency and quality of our disclosures related to our environmental and social performance. In 2013 we launched our Social Innovation website which is the most comprehensive overview of our approach to these issues and has been positively received by key external stakeholders. In addition our team works with our Global Communications team to build our positive reputation through key conference appearances, media engagements and other activities.

Transparency and related external communications activities are a normal part of our work, so we expect no additional costs to be incurred in communicating about our response to climate change.

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Opportunity driver

Description Potential impact

Timeframe

Direct/

Indirect

Likelihood Magnitude of impact

Estimated financial implications

Management methods Cost of management

eBay-owned centers where we control the technology rhythms, site efficiency and ultimately the total cost to the business. This is the first commercial data center powered 100% via onsite cleaner energy (fuel cells) and is one of the most efficient data centers in the world. Our ability to continue on this path, particularly in a more highly-regulated environment, could yield increased brand value and may contribute to business growth.

CC6.1e: Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure [2400 characters max] eBay Inc. has evaluated likely physical climate parameters across our four geographies of operations: North America, Asia-Pacific, Latin America and Europe-Middle East-Africa. While we see the potential for climate-related changes, we have not identified any current or anticipated physical changes that present any material, quantifiable, actionable opportunities for eBay Inc. Because of our internet-based business model, changes in the physical environment are less relevant to business opportunities.

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Emissions

CC7. Emissions Methodology CC7.1: Please provide your base year and base year emissions (Scopes 1 and 2)

Base year Scope 1 Base year emissions (metric tonnes CO2e)

Scope 2 Base year emissions (metric tonnes CO2e)

01/01/2012 – 31/12/2012

16,895 209,299

CC7.2: Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) CC7.3: Please give the source for the global warming potentials you have used

Gas Reference

CO2 IPCC Second Assessment Report (SAR- 100 Year)

CH4 IPCC Second Assessment Report (SAR- 100 Year)

N2O IPCC Second Assessment Report (SAR- 100 Year)

HFCs IPCC Second Assessment Report (SAR- 100 Year)

PFCs IPCC Second Assessment Report (SAR- 100 Year)

SF6 IPCC Second Assessment Report (SAR- 100 Year) CC7.4: Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of the page 2013_Supplier_Emission_Factors.ebay_inc.xlsx

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CC8. Emissions Data CC8.1: Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Operational control CC8.2: Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 28,090 CC8.3: Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e 222,892 CC8.4: Are there any sources (e.g. facilities, specific GHGs, activities, geographies etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Yes CC8.4a: Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source Relevance of Scope 1 emissions from this source

Relevance of Scope 2 emissions from this source

Explain why the source is excluded

Fuel use by small vehicles/equipment

Emissions are not evaluated

No emissions from this source

It is likely that small amounts of diesel and gasoline consumption by campus and other support vehicles are not included in Scope 1 emissions estimates. eBay considers these emissions an insignificant contributor to the overall Scope 1 inventory total.

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CC8.5: Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope 1 emissions: Uncertainty range

Scope 1 emissions: Main sources of uncertainty

Scope 1 emissions: Please expand on the uncertainty in your data

Scope 2 emissions: Uncertainty range

Scope 2 emissions: Main sources of uncertainty

Scope 2 emissions: Please expand on the uncertainty in your data

More than 10% but less than or equal to 20%

Data Gaps

Assumptions

Other – Estimations

Scope 1 uncertainty is driven largely by estimation for natural gas consumption and refrigerant use primariy at office-based locations.

More than 5% but less than or equal to 10%

Data Gaps

Assumptions

Other – Estimations

Scope 2 uncertainty is driven largely by estimation for electricity consumption primarily at office-based locations.

CC8.6: Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

No third party verification or assurance CC8.7: Please indicate the verification/assurance status that applies to your reported Scope 2 emissions

No third party verification or assurance CC8.9: Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

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CC9. Scope 1 Emissions Breakdown CC9.1: Do you have Scope 1 emissions sources in more than one country?

Yes CC9.1a: Please break down your total gross global Scope 1 emissions by country/region

Country / Region Scope 1 (MTCO2e)

Argentina 1

Australia 11

Belgium 3

Brazil 31

Canada 250

China 554

Croatia 1

Czech Republic 8

Denmark 33

France 116

Germany 3711

India 4188

Ireland 1083

Israel 391

Italy 6

Japan 16

Korea, Republic of 607

Luxembourg 15

Malaysia 0

Mexico 3

Netherlands 4

Norway 0

Poland 2

Russian Federation 5

Singapore 81

Spain 29

Sweden 27

Switzerland 33

Taiwan, Province of China 8

Thailand 1

Turkey 96

Ukraine 62

United Kingdom 76

United States 16,640

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CC9.2: Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By business division (CC9.2a)

By GHG type (CC9.2c)

By activity (CC9.2d) CC9.2a: Please break down your total gross global Scope 1 emissions by business division

Business division Scope 1 emissions (metric tonnes CO2e)

North America 5,464

Asia/Pacific 5,701

Europe 35

Latin America 16,890

CC9.2b: Please break down your total gross global Scope 1 emissions by facility NA CC9.2c: Please break down your total gross global Scope 1 emissions by GHG type

GHG type Scope 1 emissions (metric tonnes CO2e)

CO2 27,985

CH4 45

N2O 24

Refrigerants 35

CC9.2d: Please break down your total gross global Scope 1 emissions by activity

Activity Scope 1 emissions (metric tonnes CO2e)

Fuel Cells 5,662

Corporate Jet 1,244

Diesel 6,105

Natural Gas 15,044

Refrigerants 35

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CC10. Scope 2 Emissions Breakdown CC10.1: Do you have Scope 2 emissions sources in more than one country?

Yes CC10.1a: Please break down your total gross global Scope 2 emissions and energy consumption by country/region Country / Region Scope 2 Purchased and consumed

electricity, heat, steam or cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling (MWh)

Argentina 4 9

Australia 407 494

Belgium 8 40

Brazil 15 214

Canada 171 1,745

China 2,544 3,330

Croatia 2 7

Czech Republic 56 96

Denmark 342 1,087

France 30 500

Germany 308 4,740 4,094

India 7,512 8,776

Ireland 3,102 13,270 6,006

Israel 1,681 2,313

Italy 88 219

Japan 55 111

Korea, Republic of 11,618 21,318

Luxembourg 72 185

Malaysia 506 735

Mexico 8 18

Netherlands 1,752 4,337

Norway 0 4

Poland 15 19

Russian Federation 42 97

Singapore 465 931

Spain 61 211

Sweden 6 380

Switzerland 12 406

Taiwan, Province of China 28 46

Thailand 6 12

Turkey 178 378

32

Country / Region Scope 2 Purchased and consumed electricity, heat, steam or cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling (MWh)

Ukraine 473 1,051

United Kingdom 2,240 5,080

United States 187,234 392,339 5,777

CC10.2: Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By business division (CC10.2a)

By activity (CC10.2c) CC10.2a: Please break down your total gross global Scope 2 emissions by business division

Business division Scope 2 emissions (metric tonnes CO2e)

Asia/Pacific 23,142

Europe 10,472

Latin America 26

North Amerca 189,252

CC10.2c: Please break down your total gross global Scope 2 emissions by activity

Activity Scope 2 emissions (metric tonnes CO2e)

Electricity 222,892

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CC11. Energy CC11.1: What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5% CC11.2: Please state how much fuel, electricity, heat, steam and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type MWh

Fuel 210,131

Electricity 485,063

34

CC11.3: Please complete the table by breaking down the total “Fuel” figure entered above by fuel type

Fuels MWh

Biodiesel 1,965

Motor Gasoline 4,558

Jet Kerosene 97,094

Diesel 23,968

Natural Gas 82,545

CC11.4: Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure you provided in CC8.3

Basis for applying a low carbon emission factor

MWh associated with low carbon electricity, heat, steam or cooling

Comments

Grid connected low carbon electricity generation owned by the company, instruments created and retired

665 600 KW solar array, San Jose, California North campus

Grid connected low carbon electricity generation owned by the company, instruments created and retired

2,990 500 KW fuel cells, powered with biogas, San Jose, California North campus

Grid connected low carbon electricity generation owned by the company, instruments created and retired

764 665 KW solar array, Salt Lake City Utah data center site

Tracking instruments, Guarantees of Origin 10,100 100% renewable energy option purchased from utility providers for sites in Dublin, Ireland and Berlin and Dreillinden, Germany

Tracking instruments, RECs 5,777 RECs purchased via Rocky Mountain Power “Blue Skies” program equivalent to 100% of total electricity use for Draper, UT site

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CC12. Emissions Performance CC12.1: How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Increased CC12.1a: Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

Reason Emissions value (percentage) Direction of change Comment

Change in output 10.41% Increase Emissions increase was driven by increased energy consumption (Scope 1 and Scope 2). This is primarily a reflection of organic growth in the business, particularly the increase in data center infrastructure needs.

CC12.2: Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue.

Intensity figure

Metric numerator (tonnes CO2e)

Metric denominator

% change from previous year

Direction of change from previous year

Reason for change

.000016 250,982 $16,047,000,000 -2.7% Decrease Scope 1 & 2 emissions grew at a slower rate relative to revenue, which grew 14% year-over-year.

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CC12.3: Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensity figure

Metric numerator Metric denominator

% change from previous year

Direction of change from previous year

Reason for change

7.89 Metric Tonnes FTE Employee 4.7%

Increase Scope 1 & 2

emissions grew at a faster rate (10%) than total number of employees, which increased by 6%. Emissions growth driven by both expanding data center infrastructure and the expansion of our global office footprint to support the larger workforce.

37

CC13. Emissions Trading CC13.1: Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years CC13.2: Has your organization originated any project-based carbon credits or purchased any within the reporting period?

No

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CC14. Scope 3 Emissions CC14.1: Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3 emissions

Evaluation status metric tonnes CO2e

Methodology Percentage of emissions calculated using primary data

Explanation

Business Travel Relevant, calculated 48,755 DEFRA 2011: 2011 Guidelines to DEFRA GHG Conversion Factors; US EPA Climate Leaders: “Direct Emissions from Mobile Combustion Sources

100% Business air travel increased during 2013, particularly long haul flights originating in North America.

Other (downstream) Relevant, calculated 456 US EPA Climate Leaders: “Direct Emissions from Mobile Combustion Sources

100% eBay Inc. provides employee shuttles in between San Francisco and our two San Jose campuses. Level of service and, consequently, total emissions increased in 2013.

Employee Commuting Relevant, not calculated

No No No eBay Inc. does not currently estimate emissions from employee commuting. However, we recognize that how our employees get to work contributes to our company’s overall carbon impact, and have taken steps to mitigate these impacts. This includes by promoting and incentivizing transit use, biking, and ridesharing. In 2013 we continued to expand the availability of vehicle charging stations at some North American locations. At different locations around the world, we are experimenting with creative ways to get cars off the road completely. In addition to preferred parking for carpools and low emission vehicles in San Jose, Salt Lake City

39

Sources of Scope 3 emissions

Evaluation status metric tonnes CO2e

Methodology Percentage of emissions calculated using primary data

Explanation

and Chandler, our new customer support center in Draper, Utah has direct access to transit, a feature not available at our previous Draper location.

Waste generated in operations

Relevant, not calculated

No No No eBay Inc. does not yet have a comprehensive global waste management program, which would make calculating this impact feasible. However, some of our larger facilities, such as our San Jose headquarters, have rigorous waste reduction and zero waste initiatives that are achieving better than 90% diversion from landfill.

CC14.2: Please indicate the verification/assurance status that applies to your reported Scope 3 emissions

No third party verification or assurance CC14.3: Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes CC14.3a: Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Scope 3 emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

Business Travel Change in output

22.4% Increase eBay Inc. experienced robust business growth in 2013, driven by high staff productivity and performance expectations. In addition, the company grew to include more offices and employees. This increase in activity and company scope was a key driver of the substantial increase in business travel activity. While emissions from rental car use and rail travel Increased air travel decreased in 2013 compared to 2012, this decrease did not offset increased air travel in 2013 compared to 2012.

Other (downstream)

Change in output

22.5% Increase Additional employee shuttle routes were added in 2013, leading to emissions increases.

40

CC14.4: Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? No, we do not engage

Q14.4d Please explain why not and any plans you have to develop an engagement strategy in the future

eBay Inc. has a distributed approach to supplier selection and management, though there is a standard set of ethics and compliance expectations that apply across the business. In 2013 eBay Inc. implemented our first corporate-wide Supplier Code of Conduct and Ethics. It makes clear our requirement that all suppliers conduct themselves with integrity and environmental responsibility (including climate change), as well as in accordance with labor and human rights regulations. In general, any additional requirements of suppliers have been managed at the individual business unit level. Under this model some groups, such as our Global Foundation Services team, have developed and include energy efficiency and other environment-related criteria into their RFP process, but GHG emissions have not been specifically addressed.

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Sign off

CDP asks companies to identify the person that has signed off (approved) the CDP response. This is not compulsory and will not be associated with either a disclosure or performance score. However, this information does signal to investors that responsibility is being taken for the response and the information contained therein.

CC15.1: Please provide the following information for the person that has signed off (approved) the CDP response Name Job title Corresponding job category

Alan Marks Senior Vice President, Global Communications, Brand & Social Innovation

Other – member of the executive leadership team

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END END END END