Slides from Emily Bishop, Responsible Sourcing & Supplier Diversity Lead, Mastercard; Brian Werner, Account Director, ESG, Trucost, part of S&P Global; Athanasia Xeros, Global Sustainability Manager, Mastercard; presented at the Sustainable Purchasing Leadership Council’s 2019 Summit in Portland, OR.

1. ©2019Mastercard.ProprietaryandConfidential.
1MAY 21, 2019

2. ©2019Mastercard.ProprietaryandConfidential.
2
Pulse Check

3. ©2019Mastercard.ProprietaryandConfidential.
MAY 21, 2019
Science-Based Targets
3
Science Based Target:
20% reduction on Scopes 1 and 2 GHG
emissions and 20% reduction on Scope 3
GHG emissions by 2025 from a 2016 base
year.

4. ©2019Mastercard.ProprietaryandConfidential.
JUNE 11, 2019 SEPTEMBER PROGRAM 4
Scope 1
+ 2
Scope 3
GHG PORTFOLIO
Environmental Sustainability at Mastercard

5. ©2019Mastercard.ProprietaryandConfidential.
5
First Steps

6. ©2019Mastercard.ProprietaryandConfidential.
6
Our Approach
+ +

7. Strategies and Tactics to
achieve science-based
targets through
sustainable procurement
and supplier engagement
Presentation for SPLC Summit 2019
Brian Werner
Account Director, ESG
May 22, 2019

9. S&P Global
9
– Green Evaluations
– Company ESG Evaluation
– CRISIL Inclusix, India’s first financial inclusion index
– Corporate governance methodology
– ESG data and analytics for companies and investors
– ESG Insider weekly newsletter
– Governance and energy data
– Energy and commodity insights
– 2 degree climate energy scenario analysis
– Research and analytics in energy, carbon and renewables
– Provider of ESG Indices since 1999
– Trucost Carbon Scorecard has been applied to all S&P Dow Jones Indices’ standard indices
– Carbon price risk index
Environmental, Social, and Governance (ESG) solutions
include indices, data, news, corporate and investor analytics
and thought leadership

10. Why is spend analysis important?
Source: State of Green Business Report (2019)
10

11. What can spend analysis do?
Identify hot spots in
supply chains –
suppliers,
categories,
commodities
Establish baseline
performance and aid
in supplier
engagement
Aid in setting
aggressive targets
Communicate to
customers and
investors how risks
are managed
To change, turn on or off footer: Insert > Header & Footer > Enter / change text > Click Apply All. 11

12. Quantify
environmental
drivers through data
collection and
modelling
How does spend analysis work?
1
Phase 1: EEI-O modelling
1. Obtain details on Tier 1 supply chain spend, including
information on:
• Supplier name
• Address details
• Expenditure (USD)
• Production volumes
• Product category (Apparel / Accessories / Footwear)
2. Suppliers and spend mapped to specific business activities
3. Trucost EEI-O model used to derive quantities of
environmental drivers for each supplier from cradle-to-gate
4. Supply chain data reported alongside organization’s financial
data to provide contextualization
1
12

13. How does spend analysis work?, continued
Phase 2: Supplier engagement
1. Identification of engagement sample: for example, 60 suppliers whose
operations and own supply chains account for 90% of environmental
indicator contribution
2. Data collected on suppliers from existing Tier 1 auditing (50 suppliers) and
through engagement using Trucost’s online portal (10 suppliers)
3. Key data inputs included:
• Fuel use (operations and vehicles)
• Electricity consumption
• Business travel
• Water consumption
• Etc.
4. Provision of information on geographical sourcing of raw materials within
each product type and geographical location of Tier 2 and 3 suppliers
through existing audits
Engage with key
suppliers for most
robust quantification
2
13

14. Example: Mastercard
Supply Chain Tier Analysis
Spend Category Analysis
14

15. NOTICE
Copyright © 2019 S&P Trucost Limited (“Trucost”), an affiliate of S&P Global Market Intelligence. All rights reserved. Trucost and EBoard are trademarks of Trucost. Redistribution or reproduction in whole or in part is prohibited without
written permission. This document does not constitute an offer of services in jurisdictions where Trucost and its affiliates do not have the necessary licenses. All information provided by Trucost is impersonal and not tailored to the
needs of any person, entity or group of persons.
DISCLAIMER
Copyright © 2019 S&P Trucost Limited (“Trucost”), an affiliate of S&P Global Market Intelligence. All rights reserved.
This publication and related materials are not intended to provide and do not constitute financial or investment advice. The information in this publication should not be construed or relied upon in making, or refraining from making, any
investment decisions with respect to a specific company or security or be used as legal advice. Trucost is not an investment advisor, and Trucost makes no representation regarding the advisability of investing in any investment fund
or other investment vehicle. A decision to invest in any investment fund or other investment vehicle should not be made in reliance on any of the statements set forth in this document.
This publication and related materials (“Information”) have been prepared solely for informational purposes only based upon information generally available to the public from sources believed to be reliable. The Information may not
be reproduced or disseminated in whole or in part without the prior written permission of Trucost. The information may not be used to verify or correct other data, create indexes, risk models, or analytics or in connection with issuing,
offering, sponsoring, managing, marketing any securities, portfolios, financial products, or other investment vehicles.
Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction.
Trucost, its affiliates, or its and their third-party data providers and licensors (collectively “Trucost Parties”) do not guarantee the accuracy or completeness of the Information. Trucost Parties are not responsible for any errors or
omissions, regardless of the cause, for the results obtained from the use of the Information. THE TRUCOST PARTIES MAKE NO WARRANTIES OR REPRESENTATIONS, AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW,
EACH TRUCOST PARTY HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OR MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE
FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE TRUCOST PARTIES HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR DIRECT, INDIRECT,
SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR AN OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not
by applicable law be excluded or limited.
‘Trucost’ is the trading name of S&P Trucost Limited a limited company registered in England company number 3929223 whose registered office is at 20 Canada Square, London E14 5LH, UK.

16. Using Data to Drive Engagement
Calculate
Supply Chain
Emissions
Prioritize
Suppliers &
Impact
Identify &
Engage with
Internal
Stakeholders
Educate &
Develop
Suppliers
Implement
Interventions
with
Suppliers

17. ©2019Mastercard.ProprietaryandConfidential
Prioritize Suppliers
Disclosing to CDP
Reporting Any Sustainability
Information / Values
Large GHG Intensity
Trucost Data & Ranking
Creating Our
Supplier
Engagement List
RESPONSIBLE SOURCING

18. ©2018Mastercard.ProprietaryandConfidential.
Internal Engagement
Category Leaders / Relationship Owners
Review Suppliers’ Performance
Discuss & Identify Opportunities
Set Goals: Category & Supplier-Specific
Identify & Collect Key Contacts
RESPONSIBLE SOURCING

19. ©2018Mastercard.ProprietaryandConfidential.
External Engagement
SuppliersFebruary-April
INVITE TO
DISCLOSE
Email invitation from our
Chief Procurement
Officer
Introduce Environmental
Key Performance
Indicators
Provide Toolkit
Email invitation from CDP
May-July
EDUCATE &
DEVELOP
Supplier Support
Workshops
GHG Calculation
Workshop
CDP Reporting Best
Practices Workshop
Environmental
Development Initiative
(new to 2019)
September-October
MEASURE &
SCORE
Collect & Analyze CDP
Supply Chain Data
Measure Performance
against E-KPIs
Update Environmental
Scores in Responsible
Sourcing Scorecard
November-January
PROVIDE
FEEDBACK
Communicate
Performance (E-KPIs)
Share [only internal]
Updated Responsible
Sourcing’s Preferred
Supplier List
Recognizing with
Category Leaders &
Business Unit Owners
RESPONSIBLE SOURCING

20. ©2019Mastercard.ProprietaryandConfidential
Mastercard’s Environmental Key Performance Indicators
Participation
Measurement
Accountability
Leadership
•Disclose to CDP
•Report Scopes 1 & 2
•Third-Party Verification
•Decrease Annually
•Report Scope 3
•Third-Party Verification
•Decrease Annually
•Set an Emissions Reduction Target
•Science-Based Target
•Allocate Emissions to Mastercard
•All Scopes Allocated
•Collaborate with Mastercard
•Highly Encouraged to Partner
Example of Feedback
RESPONSIBLE SOURCING

21. ©2019Mastercard.ProprietaryandConfidential
Examples of Supplier Engagement
Education & Development
Company A:
Loyalty Rewards
Program
From “What are
emissions?”…
to reporting to
the CDP.
Company B:
Facilities
Management
From
participation…
to allocating
emissions to
Mastercard.
Company C:
Advertising &
Public Relations
From
participation &
measurement..
to implementing
emission-
reducing
initiatives.
RESPONSIBLE SOURCING