Fastly: Fastly : 2023 ESG Report

2023 Environmental, Social, and Governance Report December 2024 Table of Contents Letter from our CEO About this Report 06 Governance Corporate Governance Guidelines Board Independence and Diversity ESG Oversight The Board's role in Risk Management Business Ethics Data Security and Privacy Vendor Management and Human Rights 14 Social Fastly Fast Forward Employee Health and Well-Being Recruitment Employee Growth and Career Development 19 Diversity, Equity & Inclusion (DEI) and Belonging 21 Environmental 21 Sustainability 2 Letter from our CEO I am pleased to present Fastly's Environmental, Social, and Governance (ESG) Report for 2023 which reflects our commitment to building a more sustainable, equitable, and responsible future. At Fastly, our mission is to make the internet a better place where all experiences are fast, safe, and engaging. We recognize that our business operates at the intersection of technology and society. Our edge innovations are transforming industries, reducing latency, improving operational efficiency, making the internet safer, and bringing engaging content and powerful computing closer to the end user. With this transformation comes responsibility. The impact of our technology extends beyond the data centers that house Fastly's Points of Presence (PoPs) and the parts of the internet we enable. It touches the environment, communities, and the broader economy. As we look to the future, we understand the critical role edge computing will play in shaping tomorrow's digital landscape. We are committed to aligning our growth with sustainable practices, championing social responsibility, and maintaining governance that builds trust with our stakeholders. Empowering Communities and People Supporting an open internet that is fast and secure for all is a key part of Fasty's mission. Our Fast Forward program extends free services to eligible open source projects and nonprofits that support them. During 2023, we reached 100 program members and 5 trillion requests served for open source projects. We are proud to support these projects, which have a meaningful impact on the open source community. We continue to prioritize diversity in our workforce, foster an inclusive company culture, and provide growth opportunities through education and training. By empowering our employees and making our technologies accessible to a wider array of industries, geographies, and communities, we aim to create shared value that benefits everyone. We could not do this work without our incredible employees. Our Employee Resource Groups (ERGs) are a vital part of our community. In 2023, we hosted our first ERG Leads Summit to create alignment with specific focus on community, career, culture, and company. ERG benefits include the development of future leaders and we are looking to expand that program going forward. Building and empowering a diverse, inclusive workforce is not only a moral imperative, but a business imperative as well. By fostering a diverse team, we will better represent our customers and, most importantly, Internet users at large. To that end, we remain mindful of how we find talent, grow and develop our employees, and build a culture that allows everyone to bring their whole selves to work. Fastly 2023 ESG Report 3 Environmental Sustainability - Our Next Frontier As a company that relies on digital infrastructure, we are acutely aware of the environmental challenges with the growth of digitization, digital content delivery, data processing, and the associated resource consumption and carbon emissions. Data centers are estimated to consume 3% of electricity supplied around the world and to be responsible for around 2% of global Greenhouse Gas (GHG) emissions. 1 This is on par with the global aviation sector. 2 In the coming decade, demand is expected to evolve for many reasons, including wider adoption of AI and, with it, increased demand for low-latency computing, and edge networks like Fastly's. While this is clearly an opportunity for Fastly, a large portion of our emissions is related to electricity consumption in the data centers that house Fastly's PoPs around the world. We need to be very conscious of how to deal with the sustainability implications of growth. Driving energy and resource efficiency across our operations has been part of our DNA since day one. Because our PoPs are powerful, we are able to operate fewer machines and still achieve optimal performance relative to traditional PoPs. Caching content helps customers lower their environmental impact and costs by reducing network traffic to origin. We know we still have a long way to go. In 2024, we will be increasing resources to support this work. We plan to make further progress on our transparency and to articulate our climate ambitions in the years to come. We also know we can't do this work alone. We are grateful to our customers, partners, vendors, and employees for their continued support of Fastly as we work together to build a better internet for everyone. Todd Dhanabalan Thangam (2024), Computational Intelligence for Green Cloud Computing and Digital Waste Management (pp.60-83) Publisher: IGI Global Publishers, USA, Retrieved 5th November 2024 from researchgate.net Hannah Ritchie (2024) - "What share of global CO₂ emissions come from aviation?" Published online at OurWorldinData.org. Retrieved 5th November 2024 from ourworldindata.org Fastly 2023 ESG Report 4 About This Report In this 2023 Environmental, Social, and Governance Report we address the ESG topics that we believe certain of our investors, customers, employees, and other stakeholders consider the most important. We look forward to reporting our progress as we develop our ESG program and goals and disclose our achievement against such goals. Unless otherwise specified, this report highlights activities and metrics related to Fastly's fiscal year ended December 31, 2023. This document contains certain "forward-looking" statements that are based on our beliefs and assumptions and on information currently available to us on the date of this document. Readers are cautioned not to place undue reliance on forward-looking statements, which may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our ongoing and future ESG plans and practices; our ESG targets, goals, and commitments; and statements regarding the future effect of offset purchases. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially include, but are not limited to, the novel and evolving nature of ESG disclosure frameworks and metrics; our ability to maintain effective controls related to ESG disclosures; our reliance on third-party data and information, including with regard to offset purchases, as well as the risk factors detailed from time to time in the reports we file with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed on February 22, 2024 and each subsequent Quarterly Report on Form 10-Q, including those for the fiscal quarters ended March 31, 2024, June 30, 2024, and September 30, 2024. Readers are encouraged to review such publicly available risk factor information. Copies of reports filed with the SEC are posted on our website and are available without charge. Fastly 2023 ESG Report 5 Governance Our values are core to our company culture, our decision making, the way we behave and how we operate our business. Transparency, integrity, trustworthiness and being good people are just some of the values which guide how we do business. Strong governance structures enable us to uphold our values, manage risks effectively, and drive innovation in a responsible manner. We continuously assess and enhance our governance practices to support compliance with high ethical standards and with an aim to contribute positively to the societies in which we operate. Corporate Governance Guidelines The Board of Directors (Board) has documented our governance practices by adopting Corporate Governance Guidelines to support the Board's authority and practices with respect to the review and evaluation of our business operations and to independent decision-making. The guidelines also memorialize the various ways in which the interests of directors and management are aligned with those of our stockholders. The Corporate Governance Guidelines set forth the practices the Board intends to follow with respect to board composition and selection, board meetings and involvement of senior management, Chief Executive Officer performance evaluation and succession planning, and board committees and compensation. The Corporate Governance Guidelines, as well as the charters for each committee of the Board, may be viewed on the Investors section of our website at investors.fastly.com. Fastly 2023 ESG Report 6 Board Independence and Diversity Fastly is proud of the independence and diversity of its Board. Our Board believes that our directors represent a diverse and broad range of attributes, qualifications, experiences, and skills to provide an effective mix of viewpoints and knowledge. The Nominating and Corporate Governance Committee regularly assesses its members and the composition of the Board as part of its annual evaluation process. In conducting this assessment, the Nominating and Corporate Governance Committee typically considers diversity (including gender, racial and ethnic diversity, as well as diver