CLIMATE TRANSITION PLAN August 2024 Climate Transition Plan 2 Contents Introduction 3 Metrics and targets 4 Baseline GHG emissions Methodology and verification statement Climate targets Governance 6 Board-level oversight Executive management oversight Climate-related incentives and remuneration Strategy 7 Value chain engagement and low-carbon initiatives Financial planning Climate scenario analysis Risks and opportunities 11 Additional resources 12 Climate Transition Plan 3 INTRODUCTION METRICS AND TARGETS GOVERNANCE STRATEGY RISKS AND OPPORTUNITIES ADDITIONAL RESOURCES Introduction For ServiceNow, environmental sustainability is a key interest for our stakeholders: employees, customers, and investors. On our pathway to net zero, we have set near- term science-based targets, validated by the Science Based Targets initiative (S B Ti). These targets align with the latest climate science to limit global temperature rise to 1.5°C. Since setting our first science-based targets in 2021, we have built and refined our approach to net zero. We continue to invest in people and programs to further operationalize and execute our commitments and targets. The ServiceNow Climate Transition Plan (“Plan”) follows the technical notes from CDP1 and outlines our climate commitments, governance, strategies, and climate- related risks and opportunities. We continually implement initiatives across our operations and value chain to meet our goal to transition to net zero by 2030. This Plan complements existing disclosures2 and provides a reference for our stakeholders. We intend to update this Plan periodically to reflect our evolving strategies and initiatives related to our transition to net zero. Updates on our existing targets and specific examples of initiatives will be published annually in the ServiceNow Global Impact Report and CDP questionnaire. 1CDP Technical Note: Reporting on Climate Transition Plans – 2.3 Elements of a credible climate transition plan 2ServiceNow Global Impact Report, TCFD, CDP Climate Transition Plan 4 INTRODUCTION METRICS AND TARGETS GOVERNANCE STRATEGY RISKS AND OPPORTUNITIES ADDITIONAL RESOURCES Metrics and targets We are committed to the disclosure of our climate-related metrics and targets. We support this through consistent third-party verification. Baseline GHG emissions In 2019, ServiceNow’s baseline total greenhouse gas (GHG) emissions amounted to 228,228 tonnes of carbon dioxide equivalent (mtCO2e)3. Over 90% of our baseline GHG emissions are associated with our value chain, with approximately 75% of our carbon emissions associated with our suppliers. For more detailed information, see our annual GHG emissions table. Methodology and verification statement Our GHG emissions calculations are consistent with the GHG Protocol Corporate Accounting and Reporting Standard, as well as the Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Emissions are presented in mtCO2e. In accordance with ISO 1 4 0 6 4-3, we work with a third- party assurance provider to verify our annual GHG emissions, purchased and generated renewable electricity, purchased carbon offsets, and net emissions. For more detailed information, see our GHG verification letter. Our 2019 carbon footprint by scope and business activity (in mtCO2e) 3All Scope 2 and Scope 3 emissions are market-based Climate Transition Plan 5 INTRODUCTION METRICS AND TARGETS GOVERNANCE STRATEGY RISKS AND OPPORTUNITIES ADDITIONAL RESOURCES Climate targets On our pathway to net zero, we set near-term science-based targets, validated by the S B Ti, aligning with the latest climate science to limit global temperature rise to 1.5°C. We remain committed to 100% renewable electricity and delivering a carbon-neutral cloud to our customers. Net zero by 2030 100% renewable electricity Carbon-neutral cloud for our customers Our near-term science-based targets S B Ti target 1 Absolute reduction of Scope 1 and 2 GHG emissions by 70% by 2026 from a 2019 baseline (validated by S B Ti as 1.5°C aligned). Target 70% reduction by 2026 S B Ti target 2 Intensity reduction of Scope 3 GHG emissions from business travel and employee commuting (including work from home) by 40% per unit of value added (gross profit) by 2026 from a 2019 baseline. Target 40% reduction per unit of value added by 2026 S B Ti target 3 Ensure 65% of our suppliers by spend, covering purchased goods and services and capital goods, have science-based targets by 2026. Target 65% by 2026 Climate Transition Plan 6 INTRODUCTION METRICS AND TARGETS GOVERNANCE STRATEGY RISKS AND OPPORTUNITIES ADDITIONAL RESOURCES Governance We ensure consistency across our reporting of progress, metrics, targets, and underlying data governance through our ESG governance process. Board-level oversight • The Nominating and Governance Committee oversees and reviews with management our major ESG activities and programs. • The Audit Committee reviews the integrity, adequacy, and effectiveness of our accounting and financial reporting processes, systems of internal controls, and disclosure controls and procedures. This includes processes, procedures, and validation surrounding our ESG disclosures, such as those for assessing and managing environmental-related risks. • The Board of Directors leverages input from the Risk and Compliance Steering Committee, executive management, and the annual risk assessment results, which includes a range of business resilience and continuity planning for natural disasters (physical risks). Executive management oversight • The ESG Steering Committee, chaired by the CFO, is responsible for overseeing the management of climate-related risks and opportunities. The ESG Steering Committee, which meets twice a year, reviews risk and opportunity owners, sponsors strategies for addressing these risks and opportunities, and oversees measurement and reporting of performance. • The effectiveness of the assessment and control process is reviewed at least once a year by the Enterprise Risk Management (E R M) team (including Business Continuity Management) and reported to the ESG Steering Committee. • The climate-related risk and opportunity assessment process adopts E R M methods and criteria used at ServiceNow. This helps identify climate-related risks and opportunities, assess their significance, assign risk and opportunity owners, and track the effectiveness of control measures. Climate-related incentives and remuneration For 2023, the Compensation Committee approved non- financial performance goals for our NEOs as a group that align with key company priorities, including progress toward carbon neutrality and renewable electricity goals. For more details, see our Proxy statement. Climate Transition Plan 7 INTRODUCTION METRICS AND TARGETS GOVERNANCE STRATEGY RISKS AND OPPORTUNITIES ADDITIONAL RESOURCES Strategy To meet our net-zero and S B Ti target commitments, our strategy and related financial planning to develop a program for a sustainable transition include the following: • Grow our dedicated team of environmental sustainability experts. • Work with sustainability leads from our data centers, offices, travel, and strategic sourcing to build programs that support our journey to net zero. • Invest in more robust energy-efficiency programs and improve our data collection and monitoring initiatives across global operations. • Stay up-to-date with existing regulatory change and new regulations as they come into effect. • Manage a dedicated budget for purchasing renewable electricity and carbon offsets to maintain 100% renewable electricity and to offer a carbon-neutral cloud to our customers. Value chain engagement and low-carbon initiatives Our approach to net zero involves a collaborative and integrated three-part effort to engage stakeholders, operationalize sustainability, and address decarbonization. Climate Transition Plan 8 INTRODUCTION METRICS AND TARGETS GOVERNANCE STRATEGY RISKS AND OPPORTUNITIES ADDITIONAL RESOURCES Engage We engage across all of our stakeholders—including employees, customers, partners, suppliers, and investors—to bring them on board with our climate goals and to support them in theirs. With approximately 75% of our carbon emissions associated with suppliers, reducing our carbon footprint depends on working together. We are engaging our suppliers through CDP Supply Chain surveys, customized surveys, and supplier training to set out ServiceNow goals and expectations for suppliers on their sustainability performance. For a list of stakeholders we engage, see our Global Impact Report. Operationalize To operationalize sustainability, we are implementing the necessary measures and controls to embed sustainable processes and practices within our organization. We achieve this through appropriate policy and standards, improved data collection, and monitoring and workflows that support sustainability initiatives. We continue to update our Environmental Sustainability Policy as our supplier expectations evolve. We also embed sustainability requirements into our processes and supply chain. For more details on how we are operationalizing sustainability, see our Global Impact Report. Decarbonize Given our focus on decarbonization, we remain committed to our annual goal of using 100% renewable electricity. We achieve this by working with colocation partners in our data center facilities who use renewable electricity, investing in green utility tariffs, and purchasing renewable energy certificates. For more details on our decarbonization strategies, see our annual Global Impact Report. Financial planning Our financial planning is linked to the execution of our climate strategy. Please see the Strategy section above for details. Climate Transition Plan 9 INTRODUCTION METRICS AND TARGETS GOVERNANCE STRATEGY RISKS AND OPPORTUNITIES ADDITIONAL RESOURCES Climate scenario analysis Climate impact and decarbonization remain top priorities for ServiceNow. We conducted qualitative and quantitative climate scenario analysis to identify and assess the most relevant climate-related risks and opportunities under various climate scenarios and time horizons (see below).
