ESG报告2023（英文版）-VMWAREVIP专享VIP免费

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2023-11-20
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ESG Strategy Sustainability Equity Trust ESG Performance

ESG IMPACT REPORT 2023

Environmental

Social and

Governance

Report 2023

ESG IMPACT REPORT 2023

ESG Strategy Sustainability Equity Trust ESG Performance

ESG IMPACT REPORT 2023

Smart Impact

VMware’s 2030 Agenda is a decade-long Environmental, Social and Governance (ESG)

commitment to build a more sustainable, equitable and secure future. We continuously

leverage our 25-year legacy of innovation to drive this work: making actionable

commitments, setting milestones to guide our progress, and refining our

approach along the way. This is especially important as we navigate

persistent uncertainty and global challenges.

Amid a warming climate, shifting workforce needs and increasing

cybersecurity threats, the need to move beyond commitments and

deliver measurable results has never been more urgent. Our strategy

requires smarter, more focused actions to achieve our desired

outcomes. We prioritize where we can deliver the most

significant results for ourselves, our customers and all

our stakeholders. That’s why the theme of this year’s

report is Smart Impact.

The following pages provide transparency into

VMware’s progress toward our goals, including

data and stories to demonstrate our investments

in smart opportunities that will grow our

resiliency, meet the evolving needs of

our customers, and maximize

our impact.

Mural created by VMware employees to celebrate VMware’s 25th anniversary

ESG IMPACT REPORT 2023

ESG Strategy Sustainability Equity Trust ESG Performance

About This Report

Reporting Period

This report covers VMware, Inc. and our subsidiaries (referred to as

VMware or the Company) for the 2023 fiscal year (January 29, 2022,

to February 3, 2023), also referred to as fiscal year 2023 (FY23).

References in this report to 2022 refer to calendar year 2022,

which is largely included within fiscal year 2023.

Assurance

VMware is responsible for the preparation and integrity of the

information in this report. VMware engaged Apex Companies LLC

(Apex) as an independent third party to review our fiscal year 2023

greenhouse gas (GHG) inventory and energy consumption and

received limited assurance of its accuracy and completeness.

The scope of this review, contained in this report, includes global

Scope 1 and Scope 2 GHG emissions, Scope 1 and Scope 2 energy

consumption, and Scope 3 GHG emissions related to business travel

and employee commuting. The rest of this report has not been

externally assured by an independent third party. Please see

our third-party assurance letter by Apex for more information.

ESG Double-materiality Assessment

Our last ESG double-materiality assessment was completed in

fiscal year 2020, consistent with current double-materiality

assessment practices. We conducted a comprehensive review of

our stakeholder ecosystem, including executives, employees and

customers, to narrow our focus on what ESG issues matter most

for VMware. We assessed topics based on their impact on the

environment, to society and to enterprise value, with consideration

for ESG reporting frameworks and ESG topics identified by our

industry peers. Based on this assessment, we developed and

finalized our 2030 Agenda.

ESG Data Frameworks and Standards

This report was prepared with consideration of ESG data

frameworks and standards, including the Global Reporting Initiative

(GRI) 2016, the Sustainability Accounting Standards Board (SASB),

the Greenhouse Gas Protocol, the Principles of the United Nations

Global Compact (UNGC), the United Nations Sustainable

Development Goals (UN SDGs), and the Task Force on Climate-

related Financial Disclosures (TCFD). We plan to continue to

enhance our reporting as part of our commitment to transparency

and progress toward our goals. Please refer to the ESG Data section

on page 55 for a listing of where disclosures can be found in

VMware’s publicly available filings.

About VMware

VMware is a leading provider of multi-cloud services for all apps,

enabling digital innovation with enterprise control. As a trusted

foundation to accelerate innovation, VMware software gives

businesses the flexibility and choice they need to build the future.

Headquartered in Palo Alto, California, VMware is committed to

building a better future through the Company’s 2030 Agenda.

For more information, please visit vmware.com/company.

Cover Story: Vasa Cubes

The set of three vibrant cubes was created by sculptor

Vasa Mihich. Known for seeing a different color based

on the angle of viewing, VMware has long seen the

cubes as a representation of virtualization as well as an

homage to the three interlocking cubes in the

Company’s original logo. Over time, VMware developed

a tradition of awarding a trio of Vasa cubes to celebrate

employee anniversaries.

Additionally, the Vasa cubes are a symbol for the theme

of this year’s ESG Report: “Smart Impact.” Their ever-

changing appearance represents the constantly evolving

global landscape, their transparency reflects our

commitment to sharing the progress made toward

our goals, and each cube represents the focus on our

three 2030 Agenda outcomes of Sustainability, Equity

and Trust.

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ESGStrategySustainabilityEquityTrustESGPerformanceEnvironmentalSocialandGovernanceReport2023ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformanceSmartImpactVMware’s2030Agendaisadecade-longEnvironmental,SocialandGovernance(ESG)commitmenttobuildamoresustainable,equitableandsecurefuture.Wecontinuouslyleverageour25-yearlegacyofinnovationtodrivethiswork:makingactionablecommitments,settingmilestonestoguideourprogress,andrefiningourapproachalongtheway.Thisisespeciallyimportantaswenavigatepersistentuncertaintyandglobalchallenges.Amidawarmingclimate,shiftingworkforceneedsandincreasingcybersecuritythreats,theneedtomovebeyondcommitmentsanddelivermeasurableresultshasneverbeenmoreurgent.Ourstrategyrequiressmarter,morefocusedactionstoachieveourdesiredoutcomes.Weprioritizewherewecandeliverthemostsignificantresultsforourselves,ourcustomersandallourstakeholders.That’swhythethemeofthisyear’sreportisSmartImpact.ThefollowingpagesprovidetransparencyintoVMware’sprogresstowardourgoals,includingdataandstoriestodemonstrateourinvestmentsinsmartopportunitiesthatwillgrowourresiliency,meettheevolvingneedsofourcustomers,andmaximizeourimpact.ESGIMPACTREPORT2023MuralcreatedbyVMwareemployeestocelebrateVMware’s25thanniversary2ESGStrategySustainabilityEquityTrustESGPerformanceAboutThisReportCoverStory:VasaCubesReportingPeriodESGDataFrameworksandStandardsThesetofthreevibrantcubeswascreatedbysculptorVasaMihich.KnownforseeingadifferentcolorbasedThisreportcoversVMware,Inc.andoursubsidiaries(referredtoasThisreportwaspreparedwithconsiderationofESGdataontheangleofviewing,VMwarehaslongseentheVMwareortheCompany)forthe2023fiscalyear(January29,2022,frameworksandstandards,includingtheGlobalReportingInitiativecubesasarepresentationofvirtualizationaswellasantoFebruary3,2023),alsoreferredtoasfiscalyear2023(FY23).(GRI)2016,theSustainabilityAccountingStandardsBoard(SASB),homagetothethreeinterlockingcubesintheReferencesinthisreportto2022refertocalendaryear2022,theGreenhouseGasProtocol,thePrinciplesoftheUnitedNationsCompany’soriginallogo.Overtime,VMwaredevelopedwhichislargelyincludedwithinfiscalyear2023.GlobalCompact(UNGC),theUnitedNationsSustainableatraditionofawardingatrioofVasacubestocelebrateDevelopmentGoals(UNSDGs),andtheTaskForceonClimate-employeeanniversaries.AssurancerelatedFinancialDisclosures(TCFD).WeplantocontinuetoenhanceourreportingaspartofourcommitmenttotransparencyAdditionally,theVasacubesareasymbolforthethemeVMwareisresponsibleforthepreparationandintegrityoftheandprogresstowardourgoals.PleaserefertotheESGDatasectionofthisyear’sESGReport:“SmartImpact.”Theirever-informationinthisreport.VMwareengagedApexCompaniesLLConpage55foralistingofwheredisclosurescanbefoundinchangingappearancerepresentstheconstantlyevolving(Apex)asanindependentthirdpartytoreviewourfiscalyear2023VMware’spubliclyavailablefilings.globallandscape,theirtransparencyreflectsourgreenhousegas(GHG)inventoryandenergyconsumptionandcommitmenttosharingtheprogressmadetowardreceivedlimitedassuranceofitsaccuracyandcompleteness.AboutVMwareourgoals,andeachcuberepresentsthefocusonourThescopeofthisreview,containedinthisreport,includesglobalthree2030AgendaoutcomesofSustainability,EquityScope1andScope2GHGemissions,Scope1andScope2energyVMwareisaleadingproviderofmulti-cloudservicesforallapps,andTrust.consumption,andScope3GHGemissionsrelatedtobusinesstravelenablingdigitalinnovationwithenterprisecontrol.Asatrustedandemployeecommuting.Therestofthisreporthasnotbeenfoundationtoaccelerateinnovation,VMwaresoftwaregives3externallyassuredbyanindependentthirdparty.Pleaseseebusinessestheflexibilityandchoicetheyneedtobuildthefuture.ourthird-partyassuranceletterbyApexformoreinformation.HeadquarteredinPaloAlto,California,VMwareiscommittedtobuildingabetterfuturethroughtheCompany’s2030Agenda.ESGDouble-materialityAssessmentFormoreinformation,pleasevisitvmware.com/company.OurlastESGdouble-materialityassessmentwascompletedinfiscalyear2020,consistentwithcurrentdouble-materialityassessmentpractices.Weconductedacomprehensivereviewofourstakeholderecosystem,includingexecutives,employeesandcustomers,tonarrowourfocusonwhatESGissuesmattermostforVMware.Weassessedtopicsbasedontheirimpactontheenvironment,tosocietyandtoenterprisevalue,withconsiderationforESGreportingframeworksandESGtopicsidentifiedbyourindustrypeers.Basedonthisassessment,wedevelopedandfinalizedour2030Agenda.ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformanceTableofESGStrategySustainabilityEquityTrustESGPerformanceContents2030Agenda6Overview12Overview26Overview372030Agenda49Executive7Impactand13Impactand27Impactand38ProgressPerspectivesInsightsInsightsInsightsTCFDDisclosure522030Agenda9FutureImpact24FutureImpact35FutureImpact46ESGData55GoalsEndnotes67ESGHighlights10ESGIMPACTREPORT20234ESGStrategySustainabilityEquityTrustESGPerformanceESGStrategyESGIMPACTREPORT2023BetsySutter,EVPandChiefPeopleOfficer,announcesEPIC2AchievementAwardsatcompanytownhall5ESGStrategySustainabilityEquityTrustESGPerformance2030AgendaThe2030AgendaisVMware’sESGAsaproviderofcriticaldigitalESGStrategyDevelopmentstrategytodecarbonizedigitalinfrastructuretocompaniesaroundtheandAlignmentinfrastructures,increaseequitableaccessworld,wealsorecognizethatourbusinesstoopportunitiesthroughdistributedisinterdependentwiththeinterestsofourWhenVMwaredesignedthe2030Agenda,wetookaholistic,double-workforcetechnology,andearntrustwithstakeholders—employees,customers,materialityapproachthatincludedpeerbenchmarking,feedbackfromenhancedsecurityandtransparency.Itsuppliers,stockholdersandthebroaderinvestorsandcustomers,andbestpracticesfromexpertsthathelpedusconsistsof30cross-companygoalsthatcommunitieswearepartofandserve.Inbetterunderstandindustry-specificrisksandopportunities.Weprioritizedaligntothreekeyoutcomes:sustainability,thiscomplexandinterconnectedworld,topicsbasedontheirpotentialimpacttoourcorebusiness—whetherequityandtrust.Thisfocusonoutcomesthe2030Agendaisacompassthatguidesfinancial,reputationalormarket-based—andhowthosetopicsaffectourisintentionalandcrucialtoourgoal-ouractionstowardcollectiveoutcomesofstakeholders.orientedandstakeholder-drivensustainability,equityandtrust.approachtoESG.Our2030AgendawasalsoinspiredbyleadingESGreportingframeworks,includingtheUNGCprinciplesandUNSDGs.Ouroutcomesofsustainability,AtVMware,webelievethateveryproductequityandtrustaligntospecificSDGsthatwebelieveVMwarecanweengineer,everycustomerwesupport,contributemoremeaningfullywithourpartners.andeveryemployeeweempowerbringsusonestepclosertoamoresustainable,Sustainabilityequitableandsecurefuture.Throughoutourjourney,wehavecontinuallypushedEquityourselvestoimplementasmarter,system-wideapproachwhilestayingtruetoourTrustcoreintentofgrowingourownresiliencywhileservingtheneedsofourcustomers.ESGIMPACTREPORT20236ESGStrategySustainabilityEquityTrustESGPerformanceRaghuRaghuram,25YearsofImpactChiefExecutiveOfficerAsthesenewdemandsweighonourcustomers,GreenScorefeatureinThisyear,VMwarecelebratedVMwareisconstantlydevelopingsolutionstoVMwareAriaOperationsTMlaunchedasignificantmilestoneforanymeettheirneeds.Deliveringvaluetocustomerscompany:our25thanniversary.andbuildingamoresustainable,equitableandVMwareZeroCarbonCommittedTM2023Foundedin1998byfiveforward-securefuturegohandinhand.That’swhyourinitiativecreatedthinkingtechnologistswhobusinessstrategyandourESGstrategyaresopioneeredx86virtualization,closelyaligned.VMwareResponsibleSourcingTM2022VMwarehasbuiltabusinessprogramlaunchedbasedoncontinuousinnovationVMwareiscommittedtobuildingbusinessandinfluencedcountlesschangesintheITindustry.resilienceandmaximizingimpactforboth2030Agenda2021Today,wehelpcustomersacceleratetheirdigitalourcustomersandourowncompany.Weareformalizedtransformationinthemulti-cloudera—theengineeringamoresustainablemulti-cloudthatdistributed,heterogeneousworldofapplicationshelpscustomersmeettheirenvironmentalgoals,100%renewable2020andusersacrosspublicandprivateclouds,supportstheirdiverseanddistributedworkforce,energypowereddatacenters,andtheedgethatpowersandprotectsthemwithamoresecure,privacy-enterprisesglobally.awaredigitalinfrastructure.Atthesametime,CertifiedCarbonNeutral®2019wearereducingouremissionsfootprinttowardcompanyTheJourneytoCloudSmartachievingnetzero,creatinganinclusiveculturetoattractandretaintalent,andembodyingVMinclusion2018Inmyconversationswithcustomersaboutmulti-responsiblebusinesspracticestobealaunchedcloud,theydescribeajourneyfromearlyadoptiontrustedsupplier.todigitalacceleration,achievingwhatwecallaVMwareFoundation2016cloud-smartmindset—amoresophisticated,matureESGisacompetitiveadvantageforVMwarethatestablishedapproachthatempowersenterprisestoselectthewilldefineourfutureassurelyasvirtualizationrightcloudfortherightapplicationattherightdefinedourbeginnings.Becauseinthemulti-cloudPaloAltoHQ2010moment.Thisflexibilityiswhat’sneededtostayera,empoweringdigitalinnovationandbuildingasustainablyaheadofthecompetitionandmeettheevolvingmoresustainable,equitableandsecureworldaredesignedneedsoftheirbusinesses—everythingfromthesamegoals.optimizingandsecuringdigitalinfrastructuretoVMware2006empoweringtalentinadistributedworkforcewithfoundedthebesttechnology.It’salsowhat’sneededtonavigateadynamiclandscapethatincludesongoing1998economicuncertainty,climatechange,complexcybersecuritythreats,andtheriseofgenerativeAI.ESGIMPACTREPORT20237ESGStrategySustainabilityEquityTrustESGPerformanceNicolaAcutt,significantESGtopicswithinour2030AgendathatbothbuildourownAwardsandChiefSustainabilityOfficerbusinessresilienceandmeettheevolvingneedsofourcustomers.WeRecognitionsFY23callthisnextevolutionofourESGmindset“smartimpact,”whichhasusWhenfacedwithuncertainty,organizationsoftenfacelaserfocusedonreducingourownemissionstoachievenetzero,SUSTAINABILITYachoice:retreatandprotectwhattheyknow,orengineeringamoresustainablemulti-cloudexperienceforourboldlypursuetheopportunitythatexistsineverycustomers,empoweringdiverseanddistributedworkforces,andbeingaDowJonesSustainabilityIndex(DJSI)unknown.AtVMware,there’snochoicetomake.trustedsupplierthatshipsmoresecure,privacy-awaresolutionsbuilton#6INSOFTWAREWehavealwaystakenthepathofinventionandaresponsiblesupplychain.CDP–ClimateChangeAListinnovation.Thismindsetdriveseverythingwedo—CDP–SupplierEngagementLeader,includingandespeciallyourESGagenda.We’vemaderealprogressinFY23towardthesegoals.TOP8%Hereareafewhighlights:There’snoquestionthatwefindourselvesataEQUITYpivotalmoment.Geopoliticalinstability,climate•LaunchedtheGreenScorefeatureinVMwareAriaOperations,whichdisasters,dataprivacyconcerns,increasedpolarization,emergingprovidesrecommendationsforcustomerstofurtheroptimizeenergyNewsweek–GreatestWorkplacesforDiversity,regulations,andfragmentedreportingstandardshavemadeESGmoreandcarbonintheircloudenvironments5-STARDIVERSITYSCOREessentialandmoredifficulttoaccomplish.Meanwhile,advancementsinDisabilityEqualityIndex–BestPlacestoWorkAIandmachinelearningprovideuswithanunmistakableopportunityto•ExpandedtheVMwareZeroCarbonCommittedinitiativebyaddingforDisabilityInclusionbakesustainability,equity,andtrustintooursharedandrapidlygrowing24VMwareCloudServicesProvider™partnerscommittedtoHumanRightsCampaign–BestPlacestoWorkdigitalfuture.renewableenergy,reachingatotalofmorethan50partnersforLGBTQEquality,100%SCOREIfwe’regoingtosuccessfullynavigatethesechallengesandcapture•Improveddiversity,equityandinclusion(DEI)representationwith33TRUSTtheseopportunities,wecan’tbecomplacent.Wemustcontinuetopercentofglobalhiresself-identifyingasawoman,and16percentofinnovateandfindsmarterwaystoaccomplishourlong-termaspirations.U.S.hiresself-identifyingasanunderrepresentedminorityCybersecurityExcellenceAwards,GOLDAWARDVMware’sJourneytoSmartImpact•EnhancedVMwareAnywhereWorkspacesolutionswithVMwareNewsweek–America’sMostTrustworthyWorkspaceONE®MobileThreatDefense™toprovidecustomersCompanies,#2INSOFTWAREANDIn2020,VMwareannouncedthe2030Agenda,ourambitious,withaddedsecurityfortheirdistributedworkforceTELECOMMUNICATIONSoutcome-drivencommitmentsforamoresustainable,equitableandJUSTCapitalandCNBC–100Mostsecurefuture.OurstrategywasinformedbyanESGdouble-materiality•Achieveda100percentmalwareprotectionscorewithVMwareJUSTCompanies,#11OVERALLANDassessmentwithfeedbackfromstakeholdersonarangeoftopicsthatCarbonBlackCloudEndpoint™Standardinanindependent#2INSOFTWAREaffectVMware’sbusiness.cybersecuritytestbyAV-Comparatives1Thefollowingyear,wetookanotherimportantstepforward.Weknew•StrengthenedgovernancepracticesbyincludingESGmilestonesinthatsiloedorone-offinitiativeswouldn’tbeenoughtoaddressthescaleexecutivecompensationbonusplansofthechallengesweface;systems-levelchangewouldbeneeded.So,wecascadedandintegratedthe2030Agendaandits30goalsacrossThisreportdetailsthefullbreadthofourimpactandtheinsightswe’vetheentirecompany,withbusinessgroupsfromoperationstoproductgainedinfiscalyear2023.It’sanimportantrecordoftheprogresswe’vedevelopmentowningkeyresultsintheirrespectivedomains.made,butmuchworkundoubtedlyremains.Whileeconomicconditionscanshiftandpoliticalwindscanchange,VMware’scommitmenttotheOurstrategymaturedfurtherin2022.Witheconomicuncertainty2030Agendaremainsresolute.Iknowthatinourpursuitofpersistingandtheneedforreal-worldsolutionsgrowingbytheday,wesustainability,equityandtrust,we’recommittedtosuccessfullychartingrecognizedourbestresponsewouldbetomaximizeimpactwithinouracoursethroughwhat’snextbyprioritizinginnovationandimpact.greatestspheresofinfluence.Thisrequiredprioritizingthemost8ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformance2030AgendaGoalsReadour2030AgendaProgressUpdateonpage48SUSTAINABILITYEQUITYTRUSTCarbonEnabletransparencyintothecarbonAnywhereEnableourcustomers’distributedworkforcesSecurityEnableacyberresilientworldTransparencyreductionimpactofVMwaresolutionsWorkspacetobeproductiveandengagedwherevertheythroughVMwaresolutionsareworkingPrivacybyWorkloadAccelerateproductivityandcarbonDiversityandDesignEmbedprivacybydesignacrossCarbonefficiencyofcustomers’digitaloperationsInclusionDriveequitythroughdoublingdownonourproducts,servicesandoperationsEfficiencydiversehiringandinclusiveleadershipFairandCatalyzethetransitiontoDistributedEthicalAdvancefairandethicalZeroCarbonzerocarboncloudsWorkforceBuildadiverse,innovativeandproductivePracticesbusinesspracticesCloudsworkforcebymeetingtalentwheretheyareEquitablePayandhowtheywanttoworkTransparencyEmbedgovernanceandaccountabilityNetZeroAchievenetzerocarbonemissionsTechnologyforthebenefitofallstakeholdersEmissionsforouroperationsandsupplychainAccessibilityAdvanceequitablepayforallVMwarepeopleVMwareonVMwareLeverageVMwaresoftwareinourinternalBusinessEnsureresiliencefromourphysicalSupplierDesignthetechnologyweinfrastructurewithafocusontrust,security,ResilienceinfrastructuretoourdistributedworkforceDiversitydeveloptobeaccessibleforallWorkforceexperienceandsustainabilityDevelopmentDistributedAcceleratetheadoptionofrenewableCultureofIncreasecommitmenttodiversesuppliers,EnableourpeopletoEnergyanddistributedenergyforourworkplacesServiceincludingsmallbusinesses,minority-Impactadvancefromeverychairownedenterprises,woman-ownedAdvocacyE-WasteDrivee-wasteresponsibilityDigitalSkillsenterprises,andbusinessesownedbySupportpublicpolicythatdrivesResponsibilitythroughoutouroperationsotherunderrepresentedgroupsDigitalsocialandenvironmentalimpactinITNonprofitEthicsImpactInvestininnovationsattheintersectionofDigitalFosteracultureofserviceamongourglobalAdvanceourapproachtodigitalInvestmentssocial,environmentalandfinancialimpactTransformationcommunitiesIntegratedethicsandstewardshipReportingWaterSupportwaterresilienceamongWellbeingAdvancetechnicalanddigitalskillsTransitiontointegratedreporting,meetingResilienceourglobalcommunitiesacquisitionaroundtheworldSustainableorexceedingESGdisclosurestandardsFinanceSustainableSupportpublicpolicythatdrivesAcceleratenonprofits’digitaljourneysIntegratesustainabilitymetricsintoCloudAdvocacymoresecure,resilientandsustainableourfinancialdecision-makingprocessmulti-cloudinfrastructureEngageandempowerourpeoplethroughacultureofhealthandwellnessthatisaccessible,inclusiveandinnovativeESGIMPACTREPORT20239ESGStrategySustainabilityEquityTrustESGPerformanceESGHighlightsFY23EQUITYTRUSTSUSTAINABILITYmalwareprotectionscorewithVMwareCarbonBlackCloudEndpointStandardinanindependentofoperationsforourfacilitiesaroundtheofglobalhiresself-identifiedasawomancybersecuritytestbyAV-Comparativesworldhavebeenpoweredfromrenewableand16percentofU.S.hiresself-identifiedsourcescontinuouslysince2019asanunderrepresentedminorityscoreandsixthhighestrankedsoftwarecompanyintheDowJonesSustainabilityIndexofsuppliers(byspend)havepubliclycommittedlearnersupskilledonVMwaretosettingorhavesetscience-basedtargetstechnologysolutionsrankedsoftwarecompanyinNewsweek’sAmerica'sMostTrustworthyCompanies2023environmentalscoreoverallinNewsweek’srankedcompanyforworkersinthesoftwareAmerica’sMostResponsibleCompaniesindustryinJUSTCapitalandCNBC’sJUST100ESGIMPACTREPORT202310ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceSustainabilityESGIMPACTREPORT2023VMware’ssustainablydesignedheadquarterslocatedinPaloAlto,CA,USA11ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceSustainabilityOverviewSustainabilityiscoretodeliveringonVMware’sESGvision,ImpactandInsightsSustainabilityHighlightsFY23meetingtheneedsofourcustomersandprotectingtheDecarbonizingDigitalInfrastructure13long-termhealthofourbusiness,ouremployeesandtheLaunchedtheGreenScorefeatureinVMwareAriaOperationsforcustomerstofurtheroptimizeenergycommunitiesweserve.OurpioneeringvirtualizationsolutionsScalingZeroCarbonClouds14intheircloudenvironmentshavebroughtcarbonavoidancebenefitstoourcustomersPlanningforaNetZeroTransition15Added24partnerstotheVMwareZeroCarbonforthepasttwodecades.Nowwe’reengineeringnew,Committedprogram,totalingmorethan50partnerssustainablemulti-cloudsolutions—decarbonizingtheVMware’sCarbonFootprintFY2316CertifiedasaCarbonNeutralCompany(continuouslysince2018)digitalinfrastructuresoftomorrowalongthepathtoDrivingOperationalEfficiency17netzeroemissions.Achieved100percentrenewablysourcedpowerforoperationsofourglobalfacilitiesandco-locatedOursustainabilitystrategyisgroundedinthreeapproaches:Procuring100%RenewableEnergy18datacenters(continuouslysince2019)2•Visibility–Wecan’tmeasurewhatwecan’tseeMitigatingResidualEmissions19Metnear-termscience-basedtargetsasofFY23toreduceScope1and2emissionsaswellas•Efficiency–OptimizeresourceutilizationSourcingResponsiblyfromSuppliers20Scope3:EmployeeCommuteemissions•Renewables–Substitutedirtyenergyforcleanpower.AssessingClimateRisks2152percentofsuppliers(byspend)havecommittedtosettingorhavesetscience-basedtargetsWhenexecutedtogether,weseethefullpowerofasmartandOpportunitiesFurtheredclimatetransitionplanning,guidedbytheimpactstrategy:empoweringourstakeholderstoachievetheirLivingOurCultureofSustainability22TaskForceonClimate-relatedFinancialDisclosuresenvironmentalgoalsasweoperationalizeourown.ImpactSpotlight:Sustainable23JoinedtheEuropeanGreenDigitalCoalitiontodevelopgreenerdigitaltechnologiesandservicesCommunicationsNetworksRecognizedontheCarbonDisclosureProjectAListFutureImpactinSustainability24andasaCDPSupplierEngagementLeaderESGIMPACTREPORT2023AwardedtheSilverSustainabilityrankingbyEcoVadis,andfeaturedinacasestudyondata-drivenapproachestosustainableprocurementEarned#1environmentalscoreoverallinNewsweek’sAmerica’sMostResponsibleCompanies12ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceDecarbonizingDigitalInfrastructureDrivingSmartGridInnovationwithAlperiaVMware’sapproachtosustainabilitygoesfarTheGreenScorefeatureinVMwareAriaOperationsbeyonddecarbonizingourownoperations;itprovidesrecommendationsforcustomerstofurtherCUSTOMERSTORYisalsoinherentinourinnovativetechnology.optimizetheirenergyusageandcarbonfootprintbyWehelpcustomerssignificantlyreduceenergyconsideringvariousfactorssuchasworkloadefficiency,Alperia,anenergycostsandcarbonemissionsassociatedwithresourceutilization,virtualizationrate,powersourceservicesprovideroperatingarobustdigitalinfrastructurewhileandhardwareefficiency.inItaly,producesprovidingresponsivescalabilityandsimplifiedenergyfromrenewablesourcestobuildamanagement.AlongwithgainsinhardwareandThesustainabilitydashboardinVMwareAriacleanerworldwhilemanaginganelectricitydatacenterefficiencies,VMware’svirtualizationOperationsgivescustomersvisibilityintocarbongridcoveringmorethan8,000kilometers.technologieshelpedreducepowerconsumption,emissionsreducedbyvirtualizationandprovidesDigitaltransformationbecameachallengeresultinginavoidedemissionsevenasITguidanceonsustainabilityoptimizationindatacentersason-premisesinfrastructurecouldnotscaleworkloadshavegrown.poweredbyvSphere®.attherequiredpace.AlperialeveragedInadditiontoenablingdigitaltransformationofVMwareCloud™onAWStorunitsapplicationscustomers’applications,infrastructureandVirtualMachineDesiredStateConfigurationseamlesslybetweenon-premisesinfrastructuresoperations,weprovidedeeperinsightsintotheintroducesano-riskwaytoeasilydetermineandandAWS,enablingthecompanytomovecarbonemissionsoftheirdatacenterright-sizevirtualmachinesthatcanbeusedmoreworkloadstothecloudwhenitneededgreaterinfrastructureandhelpcustomersimprovetheirefficientlytomaximizeworkloadsandenergy.flexibility.Inaddition,itloweredcomputecostsenergyandcarbonefficiencythroughtheby30percentandconsolidateditson-premisesfollowingVMwaretechnologysolutions:Disasterrecoveryasaserviceeliminateson-premiseshardwarefootprintfromfivetojusttwodatabackupdatacentersinfavorofacloud-based,on-centers,leadingtoreducedpowerconsumptionESGIMPACTREPORT2023demandmodelwithminimalinfrastructure,enablingattheretiredsites.customerstoreducetheircarbonfootprints.ThedecisiontolaunchthistechnologicalEnergyefficiencycalculatorforVMwareCloudpartnershipwithVMwarewasalsoDirector™helpsVMwareCloudServiceProviderdictatedbythesharedcommitmenttopartnersquantifytheimpactofminimizingcarbonshapearesilientandenvironmentallythroughoptimalhardwareusageonbehalfoftheirfriendlyfuture.”customers.LUCACERIANICHIEFDIGITALANDTECHNOLOGYOFFICER,ALPERIA13ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceScalingZeroCarbonCloudsWelaunchedtheVMwareZeroCarbonCommittedprogramtoconnectcustomersWhatVMwareZeroCarbontoourecosystemofpubliccloudpartnerscommittedtoachieving100percentCommittedPartnersAreSayingrenewableenergy-powereddatacentersorcarbonneutralityby2030.ThisallowsustoscaleoursustainabilityimpactbysupportingcustomersintheirshifttoWehaveseensignificantinterestfromcustomersinmaximizingrenewableenergy-poweredclouds.datacenterefficiencyandareproudtoserveasaninauguralmemberoftheVMwareZeroCarbonCommittedcloudpartnerinitiativeandSincethelaunchoftheVMwareZeroCarbonCommittedprogram,wehaveshareinthecommitmenttogeneratingnetzeroemissionsby2030.partneredwithmorethan50publiccloudproviders,includingGoogleCloudandMicrosoftAzure,tosupportourcustomersinreachingtheirnetzerogoals.FRANÇOISSTERINCHIEFINDUSTRYOFFICERInFY23,wedoubleddownonourcommitmenttocreatingimpactthroughtheVMwareZeroCarbonCommittedprogrambyproactivelyengagingcloudpartnersThroughthispartnershipwithVMware,wecanhelpourmutualwhohavenotyetmaderenewableenergycommitments.Weencouragedthemtocustomersandpartnersgreentheirsupplychainandreducetheirstarttheirownsustainabilityjourneysbysharingresourcesandbestpractices,environmentalimpact,whilebuildingfastandmoresecureenterpriseincludingavideotrainingseriesthatsharesthewhy,whatandhowofsettingandhybridmulti-cloudinfrastructures.executingrenewableenergygoals.STEVESTEINHILBERThispastyear,VMwarealsoinitiatedagroundbreakingpartnershipwithTeraco,VPOFBUSINESSDEVELOPMENTAfrica’sleadingcarrier-neutralcolocationprovider.ItnowsuppliesrenewablepoweredcolocateddatacentersforfiveVMwareCloudVerifiedpartners(NetworkPlatforms,Strategix,Routed,SaicomandSiliconSky)thatpreviouslydidnothaveaccesstorenewableenergyinfrastructure.LearnmoreabouttheVMwareZeroCarbonCommittedprogramESGIMPACTREPORT202314ESGStrategySSuusstainabilittyyEquityTrustESGPerformancePlanningforaNetZeroTransitionProgressTowardScience-BasedTargetsVMwareisproudtobecarbonneutralsince2018,andwearecommittedtoOur1.5˚C-alignedscience-basedtargetslaythefoundationforouremissionsmaximizingdecarbonizationacrossourentirevaluechainonthepathtonetreductionsandwerevalidatedbytheScienceBasedTargetsinitiative(SBTi).zeroby2030.TARGETPROGRESSASOFFY23Usingoursmartimpactapproach,wecontinuetoevolveourclimatetransitionplanasweapplylessonslearnedfromoperationalizingour50%reductionin82%50%sustainabilitygoals.Weapplyamulti-prongedstrategythatincludesScope1andScope2GOALdrivingefficiencyandcarbonreductionacrossthebusiness,procuringemissionsby2030renewableenergyforourofficesanddatacenters,andinvestingincarbon(baseyearFY19)offsetsforhigh-qualityprojectsthatcreatetheclimatechangesolutionsofthefuture.50%reductionin44%50%Scope3fuel-and-50%GOALToaccelerateglobalprogresstowardnetzero,weparticipateinrenewableenergy-relatedenergyinitiativessuchastheCleanEnergyBuyersAllianceandRE100.3emissionsby203050%WealsojoinedTheClimatePledgetofurtherournetzeroprogress(baseyearFY19)GOALalongsidecompanieswithasimilarfocusonbothreducingemissionsandprocuringcleanenergy.50%reductionin75%Scope3employeeGOALcommuteemissionsby2030(baseyearFY19)75%ofoursuppliers52%(byspend)willsetorcommittosetscience-basedtargetsbyendofFY25ESGIMPACTREPORT202315ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceVMware’sCarbonFootprintFY2316SCOPE1DirectFuel-basedConsumption3,650MTCO2eSCOPE2Market-based844MTCO2eSCOPE3Total397,008392,515MTCO2eMTCO2ePurchasedGoodsandServices190,576MTCO2eCapitalGoodsBusinessTravel62,933MTCO2e44,210MTCO2eEmployeeCommutingOther25,815MTCO2e68,891MTCO2eESGIMPACTREPORT2023TotalGHGemissionscalculationincludesScope1andScope2market-basedemissionsforouroperationsandScope3emissionsforourvaluechain.OthercategoriesincludeFuelandEnergyRelatedActivities,UpstreamTransportationandDistribution,WasteGeneratedinOperations,UpstreamLeasedAssetsandUseofSoldProduct(addedinFY23).ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceJourneytonetzeroDrivingOperationalEfficiencyJOURNEYTONETZERODrivingOperationalEfficiencyToreduceourenvironmentalimpact,VMwareincorporatesemissionsDataCenterSustainabilityatVMwarereductionsintoourdailybusinessoperationsbyimprovingtheresourceefficiencyandresiliencyofourbuildingsanddatacenters.WearealsoVMwareimprovesenergyefficiencybyreducingresourceconsumptioninimprovingourmeasurementofwasteandwatertogainactionableinsightsourdatacenters,leadingtolowercostsandfewercarbonemissions.Oneandminimizingtheamountofe-wasteinourinternaloperationsbyrecyclingwayweaccomplishedthisisbytransitioningfromadistributedhardwareITassetsinaccordancewithourinternalGlobalAssetManagementPolicy.ownershipmodeltoa100percentcentralizedsharedinfrastructureserviceWefollowsustainabledesignprinciplestosupportourreductionofScope2model,whichimprovesresourceutilizationandreducesunnecessaryenergyemissions,havingachievedLEEDcertificationformanyofourexistingusage.retrofits,remodelsandnewconstruction.WearecommittedtogreenbuildingsandhaveachievedLEEDcertificationfor20ofoursitesglobally,Tocreatethissharedinfrastructureservicemodel,wechangedthewayweincludingLEEDPlatinumcertificationfortwobuildingsinPuneanddesign,procure,supportandmonitordevices.ThroughmoreefficientBangalore.OurtotalLEEDfootprintequatesto45percentofthetotalallocationofhardwareresources,wecanfurtherdecarbonizeouroperationssquarefootageacrossourentirerealestateportfolio.whileenhancingcapacityandpowermanagement.Wealreadytransitioned80percentofourdatacentersforinternaloperationstoasharedservicesESGIMPACTREPORT2023model,andwearesharinglessonslearnedfromtheseeffortswithcustomersworkingtowardtheirownnetzerogoals.17ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceJJOoUuRrNnEeYyTtOoNnEeTtZEzReOroProcuring100%RenewableEnergyProcuring100%RenewableEnergyWhileweworktoreduceouroverallenergydemand,VMwareiscommittedtoRenewableElectricitygeneratingorpurchasingenergyfrom100percentrenewablesources.OurProcurementPrinciplespurchasedelectricityisresponsibleforourScope2emissions.However,byprocuringrenewableenergyinstrumentsthatadheretotheGreenhouseGasOurinvestmentshouldmakeapositiveimpactbydrivingdemandforProtocol(wherewedonotreceiverenewableenergydirectly),wecanreduceourScope2emissionstozero.1renewableenergyand/oraddingmorerenewableenergyelectronsWejoinedRE100in2016tocommittorenewableenergyacrossallourglobalonthegrid,particularlyinheavilyfossilfuel-basedregions.facilities,includingouroffices(leased,ownedandserviced),labsanddatacenters.Wealsocovercolocationfacilitiesnotinouroperationalcontrolbutfor2TherenewableenergygenerationshouldbeinthesamegeographywhichemissionsareincludedinourScope2andScope3boundaries.Weasourbusinessoperations,asdefinedbytheGHGProtocol.maintain100percentrenewableelectricityforourglobalfacilities,andmovingforward,weareactivelyreviewingtheavailabilityofnewvirtualpowerpurchaseOurprocurementstrategyshouldalignwithourstakeholders’agreements(VPPAs)thataddrenewableenergy-generatingassetstothegrid.3expectationsandprovideco-benefitswhereverpossible(i.e.,Overtime,weplantoincreasetheproportionofhigh-impactrenewableprojectsprovideasuperiorenvironmentalandsocialimpactinelectricitypurchasingcontractstoourportfolioand,wherepossible,shiftawayfromrelyingonEnergyAttributeCertificates(EACs).Toguideourfutureadditiontonet-newrenewableelectricitygeneration).investments,wedevelopedrenewableelectricityprocurementprinciplesforreliable,cost-effectivesolutionswhereverweoperate.WeshoulddeveloparegionallyspecificrenewableelectricityESGIMPACTREPORT20234planthatincludesVPPAsandaggregatedVPPAsinmaturemarketswhereVMwarehasasignificantpresence,suchastheUnitedStatesandEurope.18ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceJJOoUuRrNnEeYyTtOoNnEeTtZEzReOroMitigatingResidualEmissionsMitigatingResidualEmissionsAfterdrivingefficiencyandcarbonreductionsAllourcarboncreditsmustalsomeettheCommunityCarbonProjectsacrossthevaluechainandprocuringrenewableInternationalCarbonReductionandOffsetenergy,wethenfocusonmitigatingtheAlliancecodeofbestpractice.ManyofourVMware’scarbonfinancestrategysupportsremainingemissionsthroughcarbonoffsets.forestryprojectsareVerifiedCarbonStandardprojectsthathavethepotentialforsystemicVMwarehasbeenaCertifiedCarbonNeutralandClimate,CommunityandBiodiversityimpactincommunities.Hereareafewexamplescompanysince2018,whichrequiresustooffsetcertified.Thismeansthatprojectsmeasureofourmanycarbonavoidanceandremovalaportionofourfootprintasdefinedbytheclimate,communityandbiodiversitybenefitsinprojectsaroundtheworld:CarbonNeutralProtocol.additiontocarbonsequestrationrates.SolarWaterCleanWaterVMwareinvestsinhigh-qualitycarbonprojectsWhilemostofourcarboninvestmentstodateHeatinginIndiaandCookingthataremonitoredandmeasuredforimpact.Tohavebeenavoidanceprojects,whichhavebeeninGuatemalaensureourinvestmentininstrumentsiscrediblemorereadilyavailableandcosteffective,weareandimpactful,weaimtomakesurethey:workingtoincreasetheratiotoward100MangroveTeakpercentcarbonremovals.Inaddition,wehaveRestorationinAfforestation•Areverifiedbyathirdpartyfocusedonnature-basedsolutions,whichareKenyainMexicosustainableplanning,design,environmental•Focusonnature-basedsolutionsmanagementandengineeringpracticesthatKibaleForestWindPowerweavenaturalfeaturesorprocessesintotheRestorationininChinaand•AregeographicallymatchedbuiltenvironmenttopromoteadaptationandUgandaIndiaresilience.Theseincludesolutionsthatreduce•Benefitthecommunityandremovecarbonaswellasoftenofferco-benefitsfornearbycommunitiesthat•Aligntoour2030Agendaoutcomesstrengthenlocalclimateresilience.ofsustainability,equityandtrustandtheUNSDGs19ESGIMPACTREPORT2023ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceSourcingResponsiblyfromSuppliersTheVMwareResponsibleSourcingprogramenvisionscreatingasustainable,diverseandresilientSustainabilitySupplyChainsupplychainthroughstakeholderengagement,enablement,transparencyandvaluecreation.EngagementProgramVMwareResponsibleSourcingisacorepieceofourprocurementstrategyandprioritizesspendToachieveourgoalof75percentannualspendwithsuppliersalignedtoour2030Agenda.Ourgoalsfallintothreepillars:withsupplierswhohavecommittedtosettingorhavesetscience-basedtargetsbytheendofSUSTAINABILITYDIVERSITYACCESSIBILITYFY25,welaunchedthesuppliersustainabilityengagementprogram.Thepilotengaged15Achieve75percentofannualSpend$1.5billiononprocurementAssesssuppliers,selectedfortheirdiverserepresentationspendwithsupplierswhohavefromdiversesuppliersby2030,accessibilitystandardsofourentiresupplierbase.Ourintentwastocommittedtosettingorhaveincludingsmallbusinessesandbetterunderstandtherangeofneedsandlevelofenterprisesownedbyforallnewsoftwareinvolvementweshouldanticipatefromsupplierssetscience-basedtargetsbyunderrepresentedgroupsandeventsupplierstohelpacceleratetheirprogress.ThepilottheendofFY25revealedthat73percentofparticipatingsuppliers$300M+ASOFFY23INTEGRATEDCOMPLIANCEarenowinterestedand/oractivelyengagedin52%ASOFFY23TRACKINGSYSTEMsettingtheirownscience-basedtargets.InFY23,wemadesignificantprogresstowardourVMwareResponsibleSourcinggoals.WelaunchedTobuildonthismomentumandhelpoursuppliersoursuppliersustainabilityengagementprogramtoprovidesupplierswithresourcestoadvancetheirsetthemselvesupforsuccess,wealsodevelopedownscience-basedtargets.Wealsoexpandedoursustainableswaginitiativeto96percentcompliancefivetrainingmodulesandadditionalresourcestoasweaimtoprocuremoresustainableandresponsiblyproducedpromotionalitemswhileavoidinghelpthemadvancetheirprogress.wastefulpurchasing.Additionally,wematuredourdatacollectiontobetterevaluatesupplierdiversityamongthird-partyvendorsandadvanceequityforunderrepresentedcommunities.WeintegratedaWehavetheuniqueopportunitytopartnerwithcompliancetrackingsystemwithaccessibilityguidelinesforsoftwareprocurementandfocusedonoursupplierstoamplifyimpactonclimatechange,ensuringthatallglobalmeetingsandeventsarephysicallyanddigitallyaccessibleforattendees.diversityandinclusion,andsocialjustice.Inadditiontotheseadvancements,weengagedtopsupplierstodotheirownESGassessmentthroughVIPULCHITALIAEcoVadisandbeganincludinglanguageincontractsthatrequiressupplieractiononsustainability,VICEPRESIDENT,SOURCINGANDdiversityandaccessibility.OPERATIONS,VMWAREESGIMPACTREPORT2023LearnmoreaboutVMwareResponsibleSourcing20ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceAssessingClimateRisksandOpportunitiesVMwarehasreporteditsclimatestrategy,ReadourTCFDdisclosureonpage52ClimateTransitionPlanningtargets,emissions,risksandopportunitiesinintheESGPerformancesectionofthisreport.detailthroughanannualdisclosurewiththeClimatescreeningCarbonDisclosureProject(CDP).OurCDPtoprioritizepotentialreportingalignstorecommendationsprovidedclimaterisksandbytheTaskForceonClimate-relatedFinancialopportunitiesDisclosures(TCFD),whichutilizesadouble-materialityframeworktoassessandthenScenarioanalysistoincorporateclimate-relatedrisksandquantitativelymodelopportunitiesintolong-termstrategies.priorityclimaterisksandopportunitiesInFY23,VMwarewasrecognizedontheCDPClimateAListforourenvironmentalMitigationandadaptationtransparencyandperformanceonclimatestrategydevelopmenttochangepreparedness.AswematureouraddressthefindingssustainabilityandriskmanagementpracticesacrossVMware’soperations,wewillcontinuetodeepenourunderstandingofpotentialchallengesthatcomewithanuncertainfuturebroughtonbyclimatechange.Wewilladaptaswelearnmoreaboutthenatureandmagnitudeofourclimate-relatedimpactswhiletakingaphasedapproachtoclimatetransitionplanningthatutilizesbestpracticesinclimatescreening,scenarioanalysisandmitigation.ESGIMPACTREPORT202321ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceLivingOurCultureofSustainabilityVMwareSnapshot:AtVMware,weempowerourpeopletopracticePlantingTreesinHonorVMwareemployeeplantingsustainablelivingbothatworkandathome.ofVMwarePeopletreesonEarthDayEarthMonthisVMware’sflagshipsustainabilityOurcommitmenttoemployeeengagementeffort.In2022,wenature-basedsolutionsESGIMPACTREPORT2023promotedpersonalclimateactionbyprovidingisevidencedbyourtoolsandeducationontopicsincludingpledgetoplantandregenerativeagriculture,electricvehicleprotect1milliontreesby2030,whichweadoption,andclimateadvocacy.madewhenwejoined1t.orgin2021.OurSustainabilityatHomeprogramisledbyAsofFY23,we’vefundedtheplantingofmorethanvolunteerVMwareemployeeSustainability400,000trees.ThiscommitmenthasenabledustoAmbassadorsineachregion.TheyengagewithaccelerateourimpactbybringingtogetherteamstheircommunitiesandsupportcolleaguesinandbusinessunitsthroughoutVMwarewithaleadingamoresustainablelifestyle,whichsharedgoal.Ouremployeescontributeinanumberincludesprovidingdiscountswithsustainabilityofways,whetherbyplantingtreesonbehalfoforganizationsandongoingeducationoncustomersorasrecognitionforemployees’sustainabilitytopics.OurpartnershipwithparticipationinVMwareeventsandsustainabilityCommonEnergyisagreatexampleofhowtheseengagementactivities.programsworktobenefitouremployeesandtheenvironment:VMwareemployeescansignupto22supportanew,local,cleanenergyprojectforfree,andtheenergygeneratedfromtheprojectreplacesfossilfuels,loweringemissionsinthecommunitywhilehelpingemployeessaveontheirelectricitybill.ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceImpactSpotlight:SustainableCommunicationsNetworksSustainabilityhasbecomeamajorfocusoforganizationsacrossindustries,andthetelecommunicationsindustryisnoexception.Informationandcommunicationstechnology(ICT)hasemergedasoneofthemostcriticalareastotargetbecauseitaccountsforupto10percentoftheworld’senergyusage,andwithconnectivityexpandinganddigitaldevicesproliferating,thatshareisgrowingquickly.4,5VMwareistakingaleadingroleindevelopingICTsustainabilityinnovations,bothinternallyandthroughprojectswithourpartnersaroundtheglobe.We’reimplementingnewstrategiestohelpcommunicationserviceprovidersandtheircustomersadvancesustainabilityacrossfourkeypillars:ImprovingenergyandresourceefficiencyUsingrenewableenergysourcesReducingGHGemissionsOvercominginstitutionalbarriersReadVMware’swhitepaperESGIMPACTREPORT202323ESGStrategySSuusstainabilittyyEquityTrustESGPerformanceFutureImpactinSustainabilityIn25yearsofoperations,sustainabilityhasTheseinnovationsareespeciallycrucialwiththeGreenSoftwareFoundationalwaysbeenintrinsicandwithinVMware’sDNA.riseofAI,whichisestimatedtousemoreenergyAswelooktothefuture,weplantobethanotherformsofcomputing,andtrainingaVMwarejoinedtheGreenproactivelysustainableinthemulti-cloudera.singlemodelcangobbleupmoreelectricitySoftwareFoundation(GSF)tothan100U.S.homesuseinanentireyear.6IfevolvebestpracticesthathelpOurlatestsustainabilitypartnershipshapingcurrentAIpracticesremainunchanged,thedevelopersandoperatorsruntomorrow’sinnovationsiswiththeEuropeanconsequencesmightbesevereformoresustainableapplicationsGreenDigitalCoalition,anallianceofITsustainabilitygoalsandefforts.andclouds.Therearemanycompaniesworkingtoharnesstheemission-waystomitigatetheclimateimpactofsoftware,reducingpotentialofdigitalsolutions.ThisToaddressthisemergingchallenge,VMwareincludinghostingstrategiessuchasvirtualization,collaborationsupportsoureffortstodevelopplanstocontinuetoinvestinsustainabledigitalmanagementpoliciessuchasintelligentscaling,toolsthatmeasurekeyareasofenergyuse,infrastructurewhiledevelopingefficiencyandandsource-codeenhancementstodesignmoreimprovingefficiencyandensuringthedigitalmonitoringsolutionsforcustomerstomaximizecarbon-awareapplicationsthatdomoreworksolutionsweengineerhelpcustomersmeettheirtheirownresourcesinanAI-poweredworld.duringtimeswhenelectricityissuppliedmainlyenvironmentalgoals.Innovationswe’repursuingbyrenewables.includedeepcoolingsolutionsindatacentersWeareproudofthesustainabilityprogressandenhancedpowermanagement,whichwouldwe’vemadesofar,andweremaincommittedtoTheGSFidentifiedeightprinciplestominimizereduceenergyconsumptionandincreasetappingintoourcultureofinnovationtoreachemissionsthatwilldefinethenewfrontierofgreenvisibilityintocostandemissionsinthecloud.netzero.softwaredevelopment:ESGIMPACTREPORT20231.Buildcarbon-efficientapplications2.Buildenergy-efficientapplications3.Consumeelectricitywiththelowestcarbonintensity4.Buildhardware-efficientapplications5.Maximizetheenergyefficiencyofhardware6.Reducetheamountofdataanddistanceitmusttravelacrossthenetwork7.Buildcarbon-awareapplications8.Focusonstep-by-stepoptimizationsthatincreaseoverallcarbonefficiency24ESGStrategySustainabilityEquityTrustESGPerformanceEquityESGIMPACTREPORT2023EPIC2AchievementAwardwinnersmeetwithVMwareCEO,RaghuRaghuram25ESGStrategySustainabilityEquityTrustESGPerformanceEquityOverviewAtVMware,equityisabusinessimperative.OurdiverseworkforceempowersImpactandInsightsEquityHighlightsFY23ustoinnovateandmeetthevariousneedsofourcustomers.OurpursuitforRecognizedwitha100percentscoreontheequityiswhywe’realwayspushingourselvestodomoreasacompany,acrossDrivingEquityAnywhere27CorporateEqualityIndexbytheHumanRightsCampaignandtheDisabilityEqualityIndexbymultipledimensionsofaccess,opportunityandadvancement.PlanningforanEquitableFuture28Disability:INOursmartimpactapproachstartswithcreatingadiverseandinclusiveworkBuildingaDiverse,Equitableand29Recognizedasthe#1companyforworkersenvironmentthatallowseveryoneinourorganizationtofeelasenseofinthesoftwareindustrybyCNBCandJUSTCapitalbelongingandcommunity.InalignmentwithourDEIefforts,weinvestinourInclusiveCultureExpandedtheapplicationofcompany-widepdeeompolecrwatiitzhepdrcohfeasristiaobnlaelgdievvineglopprmogernatmops.pAocrtruonssitioeus,rwvaellulbeecinhgainp,rowgerasmupsp,oanrtdInvestinginOurPeople30DEIgoalsasacomponentoffundingforallbonus-eligibleemployees,beyondthepreviousdiversesuppliersanddevelopdistributedworksolutionsthatenableourFosteringaCultureofService31applicationtothoseatSeniorDirectorlevelandabovecustomerstoprovideincreasedflexibilityandaccessfortheirownemployees.Expandedself-IDbeyondtheUnitedStatestoWealsoseektocreateanenvironmentthatsupportsdisability,wellnessandDevelopingtheFutureWorkforce32employeesacrossAustralia,India,Ireland,Japan,neurodiversityinclusion,includingbydevelopingtechnologywithaccessibilitySingaporeandtheUnitedKingdominmind.ThesecollectiveeffortsstrengthenourcommunitiesinsideandoutsideImprovingAccessibility33VMware,reinforcingourstatusasanemployerofchoiceandcreatingamorePrioritizedspendingacumulativeofmorethanequitablefutureforall.ImpactSpotlight:34$300millionwithdiversesupplierstowardour$1.5billiongoalby2030SupportingtheLGBTQIA+CommunityEmpowered85percentofVMwarepeopletoFutureImpactinEquity35supportnonprofitsoftheirchoicethroughtheVMwareFoundation,impactingmorethan15,000ESGIMPACTREPORT2023organizationsin98countriesUpskilledmorethan100,000learnersonVMwaretechnologysolutionsandenabledattainmentofmorethan1,500VMwarecertificationsthroughtheVMwareITAcademyEmpoweredVMwarepeoplewithmorethan900,000hoursoftraininganddevelopmentwithanaverageof25hoursperemployee26ESGStrategySustainabilityEquityTrustESGPerformanceDrivingEquityAnywhereWorkspaceONEHelpsCustomerImplementMobileTeachingRemoteandflexibleworkhasbecomeakeyleverinexpandingequitybyincreasingaccesstojobopportunitiesregardlessofone’sphysicallocation.AtVMware,we’velearnedthatrecruitingCUSTOMERSTORYacrossgeographiesaspartofadistributedworkforcemodelleadstoamorediverseandqualifiedtalentpool.BeijingRoyalSchoolhasamissiontocultivateleaderswithmultidisciplinaryVMwareAnywhereWorkspacesolutionsutilizemachinelearning,datascience,secureaccessskills,internationalvision,andglobalfeatures,andautomatedendpointmanagementtosetourcustomersupforsuccessevenwhencompetitivenessthroughitsK-12theiremployeesarenotbasedinacentralizedlocation.Thisflexibilityisespeciallyimportantforcurriculum.Tofacilitatemoreflexiblethemanypeoplewithdisabilitiesaroundtheworldwhomightnotbeabletocommutetoalearningforstudentsandenableteacherssharedofficelocation.Wealsobuildaccessibilityfeaturesintoourproductsandsolutionstotopushpersonalizedlessonplansdigitally,BeijingRoyaldriveequityforallourstakeholders,regardlessofhowandwheretheywork.SchooldevelopedamobileteachingapproachthatrequiredimplementinganewdeviceandapplicationLearnmoreaboutVMwareAnywhereWorkspacesolutionsmanagementsystem.ESGIMPACTREPORT2023VMwareWorkspaceONEUnifiedEndpointManagementhelpedBeijingRoyalSchoolreducecosts,improveworkefficiency,andmostimportantly,enabledteacherstodistributehigh-qualityapplicationstostudentsmoreconveniently—bettermeetingtheirindividuallearningneedsandimprovingeducationaloutcomes.Thissolutiondeliversexcellentperformance,facilitatingteachingandassistingusinmanagement,operations,andmaintenanceYAGANGBIDIRECTOROFINFORMATIONMANAGEMENT,BEIJINGROYALSCHOOLLearnmoreaboutVMwareWorkspaceONE27ESGStrategySustainabilityEquityTrustESGPerformancePlanningforanEquitableFutureEveryonehasaroletoplayindriving2030AgendaequitywithinVMware,oursupplychainEquityTargetsandourbroadercommunities.That’swhywe’vesettargetsacrosstheorganization—AchieveequitablepayforallfromDEItoresponsiblesourcingtoVMwarepeopleengagingouremployeesthroughCitizenPhilanthropy—andmeasureourprogressHireatleastonepersonwhoself-alongtheway.identifiesasawomanorgendernon-binaryforeverypersonwhoOurequitytargetsareinspiredbyidentifiesasamanby2030businessobjectivesandourcompany’sEPIC2values—execution,passion,Spend$1.5billionwithdiverseintegrity,customersandcommunity—suppliersthrough2030whichweredevelopedbyVMwareemployeestohelpdefineourinclusiveEstablishamanagementteamthatcultureandinnovativemindset.includesatleast50percentofpeoplewhoself-identifyasawoman,genderByworkingtogethertomeetourgoals,non-binary,personwithdisabilities,wewillprotectourequityprogressmadeveteranormemberoftheLGBTQIA+thusfarandadvanceimpactforthefuture.communityby2030VMwareSnapshot:Continueengagingatleast75VMwareemployeesatourannualpercentofVMwareemployeesinsupportingnonprofitsoftheirResearchandDevelopmentchoiceintheircommunitiesInnovationOffsite(RADIO)28ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformanceBuildingaDiverse,EquitableRepresentationatVMwareFY23andInclusiveCulturepayequitygloballyofwomentomenpayequityintheUnitedStatesforInnovationiscriticaltoourcontinuedgrowth,andweknowthatinnovationwithrespecttotargetcashunderrepresentedminorities(URM)8isfueledbyadiverse,equitableandinclusiveworkforce.compensationcomparedtowhitecounterparts’compensationTonurtureourcultureatVMware,weembeddedDEIgoalsthroughoutthebusinesswithtransparencyandaccountability,includingtyingDEIgoalsasofemployeesoverallidentifyaswomen,ofhiresself-identifiedasaacomponentoffundingforallbonus-eligibleemployeesinFY23.Wealsowith28.4percentoftechrolesoccupiedwomanand16percentofU.S.strengthenedourrecruitingprocesses,channelsandpartnershipsaswebyemployeeswhoidentifyaswomenhiresself-identifiedasaURMstriveforarepresentativeworkforce,ensuringweconnectwithtalentfromavarietyofbackgroundsandexperiences,andenhancingaccesstoopportunitiesalongtheway.That’swhyweareexpandingdatacollectionandanalysisofDEIdataforemployeeswhoself-identifyaspartofanunderrepresentedgroup7,whichwediscloseinourannualDEIReport.MakingVMwareapeople-firstcompanyforouremployees,customersandcommunitiesisfundamentaltoourculture.Aspartofourongoinginvestmentinhumancapital,ourDEIworkalsofocusesonpersonalgrowthandcareerdevelopmentwhileexpandingaccesstosupportandtrainingresourcesforVMwarepeopleeverywhere.ofemployeesself-identifiedasPowerofDifference(POD)LGBTQIA+9,6.7percentself-employeeresourcegroupstoidentifiedasveterans10,and3.4buildacultureofbelongingpercentself-identifiedasapersonwithadisability11Formoreinformation,seeourmostrecentDEIReportandEEO-1disclosure:vmware.com/company/diversityESGIMPACTREPORT202329ESGStrategySustainabilityEquityTrustESGPerformanceInvestinginOurPeopleVMware’scultureofinnovationisfueledbyOurpeoplearethekeytoVMware’ssuccess,TrainingbytheNumberspeoplewithagenuinecuriosityforongoingandsupportingtheirwellbeingcreatesandevelopment.Weofferarobustseriesofenvironmentinwhicheveryonecanthrive.employeescompletedUnconsciousBiasEducationprogramsandtrainingtohelpemployees—whoFromdestigmatizingmentalhealthtoprioritizinginFY23,offeredthroughourpartnershipwiththearealreadyextremelyskilled—engageinlifelongphysicalhealthandtheevolvingneedsoftoday’sStanfordVMwareWomen’sLeadershipInnovationlearningthatrenewsandexpandstheirpotential.distributedworkforce,wecontinuetosupportLab.ThiscoursebuildsawarenessanddrivesOnaverage,VMwareemployeesreceivemoreourpeoplethroughavarietyofwellbeingactionstoblockbiasintheworkplace.than25hoursoftrainingannually,whichequatesprograms.tomorethan900,000hoursoftrainingintotal.participantsfromaroundtheworldcompletedourInFY23,morethan18,000employeescompletedVMwareoffersTakeaBreakdayseachnewInclusiveLanguagetraininginFY23,whichprofessionaldevelopmentprogramsandmoreyear,whichcanbeusedatanytimetodealwithisdesignedtoincreaseawarenessonkeyDEIthan14,000employeescompletedresearchandwhateverlifethrowsatyou,noquestionsasked.topics,buildanunderstandingofhowbehaviorsdevelopment(R&D)technicalcourses.WealsocreatedadditionalEPIC2holidayswhenimpactcultureandinspirechangeacrossVMware.theentirecompanypausestopromotecollectiveVMwareoffersmanytalentdevelopmentemployeewellbeing—includingonEarthDaysoofpeoplemanagerscompletedInclusiveinitiativesforemployeestoexploretheemployeescanreflectontheirownsustainabilityLeadershipinActiontraininginFY23,anincreasepotentialinthemselvesandothers.Theseimpactandserveintheirlocalcommunities.ofmorethan20percentfromthepreviousyear.includetheEPIC2managerprogram,leadershipforums,technicaleducationactivitiesandsalesLearnmoreaboutemployeewellbeingatVMware:30enablementprograms.Oneofourmostpopularwellbeing.vmware.cominitiativesisLookWithin,athree-partcareerenrichmentprogramthatsupportsinternalcareermobilitybyencouragingemployeesatvariousstagesoftheirVMwarelivestorefresh,reigniteandrejuvenatetheirmindsets.LearnmoreaboutcareerdevelopmentatVMware:careers.vmware.comESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformanceFosteringaCultureofServiceOurpeopleareempoweredtosupportthecausestheycaremostaboutinProBonotheircommunitiesyear-roundthroughCitizenPhilanthropyprogramsthatServiceLearningcontributetime,talents,andresourcestothenonprofitsofchoice.withGoodGigsInFY23,morethan33,000VMwareCitizenPhilanthropistssupportedmoreGoodGigsProjectsenableVMwareCitizenPhilanthropiststocontributetheirtimethan15,000nonprofitsin98countriesthroughprogramssuchasServiceandtalentprobonotoaddresscriticalsocialissues.Throughthisprogram,teamsofLearning,MatchingGifts,MilestoneAwards,HumanitarianReliefandVMwarepeoplepartnerwithanonprofitoftheirchoicetoidentifytheorganizations’otheremployee-directeddonations.Withthischoice-andaction-orientedneedsandco-createsolutionsthathelpacceleratetheirimpact.approachtogiving,CitizenPhilanthropyhasbecomeakeydriverofhumancapitaldevelopment.InFY23,wepartneredwithFolding@home,anorganizationthatbringstogethervolunteerscientiststorunsimulationsofproteinRecognizingthatmanyworthyhumanitarianreliefeffortsdonotgetthedynamicstodevelopremediesforavarietyofdiseases.VMwareinternationalattentiontheydeserve,weempoweredourpeopletodirecthelpedresolveinfrastructure-relatedpainpointsbyassistingwithdonationsfromVMwaretoanycommunityinneedaroundtheworldthisobservabilityandautomation-relatedtoolsandprocesses.pastyear.Morethan11,000VMwarepeopletookaction,directingmorethan$220,000inhumanitarianrelieffundsinFY23.WeestablishedtrustsothattheFolding@hometeamfeltsafetellinguswhattheyneededmostandforustoagreeonthebestfocusfortheproject.VMwareisalsoproudtosupportnonprofitsindrivingtheirowndigitalKATHERINESKILLINGtransformationbyco-innovatingmeaningfulandlong-lastingsolutions.STAFFCONSULTANT,PROFESSIONALSERVICES,VMWARERatherthandesigningprojectsonourownfornonprofits,VMwarepeoplecollaboratewithnonprofits,usingtheirexpertiseandskillsthroughprogramssuchasGoodGigsProjectsandourpartnershipwithTechSoup’sDigitalAssessmentTool.LearnmoreabouttheVMwareFoundationESGIMPACTREPORT202331ESGStrategySustainabilityEquityTrustESGPerformanceDevelopingtheFutureWorkforceVMwareusesabroad,inclusiveapproachtodigitalskillsdevelopmentthatprovideslearnerswithincreasedaccesstoopportunity,educationandcommunitywhilesupportingamoreequitableworkforce.Inpartnershipwithacademicinstitutions,governmentagenciesandnonprofitorganizations,theVMwareITAcademyprovidesaglobaleducationprogramthatupskillsdiverselearnersonourtechnologysolutionstobetterequipthemtoadvancetheircareersandgrowanecosystemoftalent.InFY23,weupskilledmorethan100,000learnersonVMwaretechnologysolutions,leadingtomorethan1,300VMwarecertificationsearned.VMware’sdigitalskillsteachingprogramsalsosupportunderrepresentedgroups,includingveterans.ToempowerveteranswiththenecessaryskillstobecompetitiveintheITworkforce,theVeterans@VMwarePODlaunchedascholarshipprogramcalled“RebootwithVMwareITAcademy”inpartnershipwithStanlyCommunityCollege.Thatprogramhastrainedmorethan50veteransinFY23,whohaveeachbecomeaVMwareCertifiedProfessionalinDataCenterVirtualization.ESGIMPACTREPORT2023MembersofVeterans@VMwarePODattendHiringourHeroesrecruitmenteventatFt.CarsoninColoradoSprings,CO.32ESGStrategySustainabilityEquityTrustESGPerformanceImprovingAccessibilityWestrivetocreateaninclusiveworkplaceforallDisabilitiesAct,Section508oftheRehabilitationGlobalAccommodationsemployees.OurgoalistofosteraculturewhereAct,andtheEuropeanstandardsdescribedinENeveryonefeelsempoweredtosharetheirunique301549.Tofollowthoselegalmandates,VMwareProvidingaccessibleandequitabletalents.Todothis,weseektoadvanceprogressstrivestomeettheWebContentAccessibilityaccommodationsstartswiththecandidateondisabilityinclusion,accommodationGuidelines(WCAG)version2.1LevelAAandexperienceaspartofourapplicationandstrategies,andphysicalandtechnologicalPDFU/Astandards.interviewprocess.Forexample,candidatescanaccessibility.Weareproudtobeamemberofrequestanadjustedschedule,havedocumentsTheValuable500andrecognizedforoureffortsInadditiontomodifyingourinternalsystemsandreadtothemusingtheirpreferredtechnology,orbyDisability:INasoneoftheBestPlacestoWorkguidelines,VMwareleveragesourinfluenceanduseasignlanguageinterpreterfortheinterview.forDisabilityInclusion.scaletoencouragesupplierstoprioritizeaccessibilityaswell.OurengagementwithOncehired,employeescanrequestworkplaceManysoftwaretoolsthatcompaniesrelyoneverysuppliershasledtofeaturedevelopmentssuchaccommodations,adjustments,oradaptationssoday—frommessagingappstovideoconferencingasdirectmessageannouncementsforSlacktheycandotheirbestwork.Toremovepossibletothefilesweview—arenotdesignedforpeoplescreen-readerusers—atechnologythathasbarrierstoachievingthisgoal,VMwarecreatedawithdisabilities.Toaddressthischallenge,wesincebeenreleasedaroundtheworld.centralizedfundsothatnoteamorbusinessunitareoverhaulinginternalsoftwaresolutionsusedbearsanycostrelatedtoworkplacerequirements.byVMwarepeopletoimproveaccessibility.ForLearnmoreabouttheaccessibilityinVMwaresolutionsexample,wemadePowerPointandPDFfiles33moreaccessibleandusablebyallpeople—includingthedigitalversionofthisESGReport.VMwarecomplieswiththeAmericanswithESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformanceImpactSpotlight:SupportingtheLGBTQIA+CommunityFairness,equaltreatmentandopportunityarecentraltoVMware’svaluesbecausewecareaboutouremployeesandthecustomersweserve.ThisextendstoallourcommunitieswithinVMware,includingcolleagueswhoself-identifyasLGBTQIA+(lesbian,gay,bisexual,transgender,queerand/orquestioning,intersexandallies).Weareproudofthemanydiverseanduniqueindividualswhoareapartofworkforceandwe’recommittedtosupportingtheirwellbeingthroughbenefits,resourcesandpublicadvocacy.Forexample,in2022,VMwarejoinedmorethan170companiestosigntheHumanRightsCampaign(HRC)lettersupportingthepassageoftheRespectforMarriageActintheU.S.Senate.Asrecognitionforourinclusioneffortsacrossthecompanyandinthebroadercommunity,VMwarewasnamedforthefifthconsecutiveyearasoneoftheBestPlacestoWorkforLGBTQ+EqualitybytheHRCCorporateEqualityIndex.WealsoreceivedaGoldbadgeintheIndiaWorkplaceEqualityIndexandwereawardedthehighestGoldratingintheJapanPRIDEIndex,whichevaluatesLGBTQIA+initiatives.LearnmoreabouttheLGBTQIA+benefitsatVMwareESGIMPACTREPORT2023CaptionhereVMwareemployeesataPrideeventinJapan34ESGStrategySustainabilityEquityTrustESGPerformanceFutureImpactinEquityTheroadtoequityislong.WerecognizethatInFY23,wehelpedHowardstudentslearnAcceleratingFutureLeadersevenwiththeprogresswehavemadefosteringaboutthecutting-edgeVMwareTelcoCloudasenseofbelongingamongouremployees,Automation™andVMwareTelcoCloudDECODEDisacomprehensivefive-monthvirtualtherewillalwaysbemoreworktobedone.Platform™offerings.SupportedbythecohortprogramofferedbyVMware'sExecutiveBlack@VMwareemployeeresourcegroup,weLeadershipCouncilanddesignedtoaccelerateWeplantocontinuetoincreaserepresentationalsocreatedathree-dayDevOpsclasstoexposeBlackprofessionalsintoexecutivepositions.andinclusivity,whichextendstostakeholdersinvariousstudentstoGitOpsmethodologiesusingthecommunitieswhereVMwareoperates.ForVMwareTanzu®,GitHubandHTMLcoding.InFY23,24membersoftheBlack@VMwareexample,wearepartneringwiththeDepartmentPODgraduatedfromthisprogram.ParticipantsofInformationSystemsandSupplyChainAsalargeemployeroperatingincommunitiesengagedwithlearningmodulesthatincludedliveManagementattheHowardUniversitySchoolofaroundtheworld,VMwarehasatremendousinstruction,firesidechatswithC-suiteBlackBusinesstobuildthefirsttelco-focusedprogramopportunityandresponsibilitytoincreaseequity.technologyprofessionals,assessments,self-atahistoricallyBlackcollegeoruniversityWeareinvestinginthefutureforadirectedlearningandexecutivecoaching(HBCU).Thishasthepotentialtotransformmorediverse,equitableandinclusiveindividualcareersandtheindustryatlargebycultureatVMware.ParticipatinginDECODEDwasthemostimpactfulbuildingarepeatablemodelthatengagestheprofessionaldevelopmentprogramI’veeverbeenHBCUcommunitynationally.apartof.Beingabletonetworkwithawesomeprofessionalsinthetechindustry,gaintipsfromESGIMPACTREPORT2023facilitatorsforbetternavigatingtheuniquechallengesofBlackprofessionalsincorporatespacesinasafeenvironment…Itwasallexcellent.”BRITTANYJONESCLIENTEXECUTIVE,HEALTHCARE,VMWARE35ESGStrategySustainabilityEquityTrustESGPerformanceTrustTrustESGIMPACTREPORT2023VMwareemployeescollaboratetocreateartworkcelebratingtheopeningofourPaloAltocampus36ESGStrategySustainabilityEquityTrustESGPerformanceTrustOverviewEarningtrustiscrucialtoforgingtherelationshipsneededtobuildaImpactandInsightsFTrYu2s3tHTriguhstliHghigtshligFhYt2s3moresustainable,equitableandsecurefuture.That’swhyVMwareSecurityAmidIncreasing38Ranked#2intheSoftwareandTelecommunicationscategorystrivestoresponsiblymanagedataprivacy,enhancesecuritytoprotectCyberthreatsbyNewsweek’sMostTrustworthyCompaniesinAmericafromcyberattacksandoperateethicallyonbehalfofallstakeholders.WeEmbeddedESGmilestonesinexecutiveunderstandthatrobustandreliablepracticesearnstakeholdertrust,DataPrivacyPracticesandControls39compensationbonusplansandassignedcorporateDEIgoalstiedtobonusenhancecustomerexperience,andaccelerateourabilitytodriveimpact.compensationforallemployeesAccountableESGGovernance40Enhancedemployeecomplaintsprocessesforinternalinvestigations,buildingafollow-Ourapproachtoearningtrustisrootedinfourstrategies:TransparentandActionable41upprotocolsoemployeesfeelsaferreportingharassment,discrimination,•Listening–InvitingstakeholderstoopenlysharetheirviewpointsReportingdisrespectfulorunethicalconduct•Dialogue–CreatingforumswherewecanengagewitheachotherResponsibleEthicsand42ReceivedtheGoldrankingbytheCybersecurityExcellenceAwards•Transparency–OwningwherewearetodayasweprogressforwardAnti-CorruptionPoliciesRecognizedasacybersecurity•Accountability–AcceptingresponsibilityforouractionsinnovatorattheCyberDefenseMagazineInfoSecAwards:PublicPolicyandPolitical43•BestSolutionThreatIntelligenceOureffortsareyieldingresults:We’vebeenrecognizedbyNewsweekasEngagementforVMwareContexa™oneofthemosttrustworthysoftwarecompaniesinAmericaandourBuildingTrustThroughPartnerships44•BestSolutionFirewallcybersecuritysolutionscontinuetosetthestandardfortheindustry.forVMwareNSX®DistributedFirewall™ImpactSpotlight:45•MarketLeaderApplicationSecurityforVMwareCarbonBlackContainer™BreakingtheBiasinCybersecurity•Publisher’sChoiceEndpointSecurityFutureImpactinTrust46forVMwareCarbonBlackCloud™ESGIMPACTREPORT2023•MostComprehensiveSecureAccessServiceEdge(SASE)forVMwareSASE™37ESGStrategySustainabilityEquityTrustESGPerformanceSecurityAmidIncreasingCyberthreatsSecurityDeliversPeaceofMindDigitalsecurityisacomplex,challengingWearetakingonthesechallengesdirectly,andever-changingissuefororganizationsdesigninginnovativesecurityprogramsthatCUSTOMERSTORYeverywhere.Therapidlyadvancingthreatofanticipatetrendsincyberthreats.WestrivetocyberattacksposesseriousriskstointellectualachieveahighlevelofinformationprotectionEMERGENCYNGOOnlusprovidesfree,propertyandsensitiveinformation,aswellastostandardsbyestablishingpoliciesbasedonhigh-quality,humanrights-basedmedicalanenterprise’strustamongitscustomers.ThisISO/IEC27001internationalstandards,consistentcaretopeopleaffectedbywar,povertyandmakesthesecurity,transparencyandreliabilitywithindustry-acceptedpractices,andinlandmines.Currentlyactiveineightofourofferingsatoppriorityforourcustomers.accordancewithbusinessrequirements,countriesworldwide,theorganizationhascontractsandrelevantlawsandregulations.treatedmorethan12millionpatients,Publicandprivatecloudsareespeciallyhigh-Thesepoliciesapplytoallpersonnelwhoofferingsurgical,medicalandrehabilitationvaluetargetsforcybercriminalsbecausetheymanage,use,orhaveaccesstoVMwareservices.Datasecurityisparamountastheprovideaccesstocriticalinfrastructureservices,informationassets,aswellastoallVMwareEMERGENCYteamoperatesremotely,suchasemailserversandcustomerdatabases.informationassetsandinformationprocessingofteninchallenginglocationssuchaswarAsattacksoncloudenvironmentssurge,environments.ThisincludesITinfrastructureszones,whichmakessensitiveinformationcompaniesmustreducetheirattacksurfaces,andservicesusedtosupportVMwareCloudvulnerable.UsingVMwareCarbonBlackincreasevisibilityacrosstheirenvironments,andservices.CloudEndpoint™Advanced,thesecureworkloadsagainstemergingthreats.TheyEMERGENCYteamhasachievedamoremustoperationalizeconsistentsecurityonsecuresolutionthatdeliverspeaceofmind,workloadsrunninginvirtualized,private,andenablingstafftofocusonprovidinglife-hybridcloudenvironmentswithprioritizedsavinghealthcareservices.vulnerabilityreportingandworkloadhardeningthatoffersprevention,detectionandresponseVMwareenablesustokeepthefocuscapabilities.whereitshouldbe:deliveringapositiveimpactforourstaffandpatients.LearnmoreaboutVMwareSecuritysolutions:vmware.com/securityROLANDOBRICCHIITDIRECTOR,ESGIMPACTREPORT2023EMERGENCYNGOONLUS38ESGStrategySustainabilityEquityTrustESGPerformanceDataPrivacyPracticesandControlsVMwaredeploysenterpriseprivacytraining,InFY23,weaddednewcustomerresourcesinDataPrivacyChampionproceduresandcontrolstoprotectourtheVMwareCloudTrustCentertoincreasecustomersandtheirITinfrastructures.Wetransparency,includingdatasheetsthatexplainVMwareisproudtobea2023ChampionforregularlyreviewourprivacystrategyagainsthowourserviceofferingshelpcustomersprocessDataPrivacyWeek,supportingtheprincipleemerginglegalrequirementsandregulatorypersonaldataandaseriesoffrequentlyaskedthatallorganizationssharetheresponsibilityguidancetoimplementbest-in-classprograms.questionsonwhatdataVMwarecollects.Recentofbeingconscientiousstewardsofpersonalregulatorycomplianceadditionsincludetheinformation.ThegoalofDataPrivacyWeekisPrivacyisfoundationaltobuildingtrustwithHIPAABusinessAssociateAgreementForm,toraiseawarenessabouttheimportanceofourcustomersandwithinourindustry,whichisBindingCorporateRulesforProcessors(BCR-P)privacyandremindorganizationsthatrespectingwhyweembedthefollowingprivacy-by-designFAQs,andreferencestoU.S.statelaws.privacyisgoodforbusiness.TheinitiativeisledprinciplesintotheprocessesandtechnologiesbytheNationalCybersecurityAlliance,athattouchpersonaldata:LearnmoreabouttheVMwareCloudTrustCenternonprofitorganizationonamissiontocreateamoresecure,interconnectedworldby•BuildingprivacyinfromtheWecontinuedenterprise-wideprivacytrainingpromotingpublic-privatepartnership.earlieststagesofaproductthataddressesrealday-to-dayscenariosthathelpouremployeesmeettheirprivacy-relatedTobeaDataPrivacyChampion,anorganization•Minimizingthedatawecollectanduseobligations.WealsodevelopedandrolledoutamustadoptstrongcybersecuritycontrolsandbespokereleaselifecyclemanagementplatformprivacyframeworkssuchastheNationalInstitute•SafeguardingpersonaldatawiththethatensuresproductreleasesadheretospecificofStandardsandTechnology(NIST),thehighestcybersecuritystandardsdataprivacyandsecurityreviewsandAssociationofInternationalCertifiedProfessionalrequirements,includingbutnotlimitedtoAccountants(AICPA),andtheInternational•LettinguserschoosewhatpersonalcompliancewiththeU.S.FederalInformationOrganizationofStandardization(ISO)tohelpdatatheyprovidewherepossibleProcessingStandards(FIPS).Trainingforthismanagerisk.Bycreatingacultureofprivacyandplatformisnowastandardpartofourneweducatingemployeesonhowprivacyandsecurityhireonboarding,ensuringeveryengineerapplytotheirday-to-dayjobs,organizationscanisorientedtothemoresecureVMwareway.betterprotectagainstbothinternalandexternalsecurityanddataprivacythreats.ESGIMPACTREPORT202339ESGStrategySustainabilityEquityTrustESGPerformanceAccountableESGGovernanceBoardCommitteesESGOfficeVMware’sESG-relatedcorporategovernancepracticesGovernanceDedicatedESGteamsetsstrategy,provideaframeworkforoperatinginourstakeholders'OversightofESG,reviewsstrategyandprogramoperationalizesgoals,drivescross-bestinterestsandincompliancewithapplicablelegalprogressthreetimesperyearfunctionalalignment,reportsonESGrequirements.WehaveimplementedastrongCompensationperformanceandadvancesprogressgovernancestructuretoensureoversightandeffectiveOversightofannualexecutiveofficerindividualonESGoutcomeswithoversightbymanagementofESGissuesthatimpactourbusiness.performancegoalsincorporatingESGgoalsBoardCommitteesandguidancefromAuditESGExecutiveSponsorsandESGThisstartsatthetopwithannualoversightofESGQuarterlyoversightofcybersecurityLeadershipCounciltopicsbythefullBoardofDirectors(Board).TheanddataprivacyLedbyvicepresidentofESGNominating,GovernanceandRelatedPersonsandchiefsustainabilityofficerTransactionsCommitteeoftheBoard(GovernanceESGExecutiveSponsorsCommittee)isresponsibleforformaloversightofour40ESGprogress.TheAuditCommitteeoftheBoardisMeetquarterlytoprovideESGresponsibleforoversightofcybersecurityanddatastrategydirectionprivacymatters.TheCompensationCommitteeoftheChiefexecutiveofficerBoardisresponsibleforoversightofexecutiveChieffinancialofficercompensationincorporatingESGgoals.OurESGChiefpeopleofficerExecutiveSponsors—comprisedofC-suiteleaders—GeneralcounselmeetquarterlytoprovideESGstrategydirection.OurPresidentESGLeadershipCouncil—madeupofseniorfunctionalChieftechnologyofficerandbusinessunitleaders—meetsquarterlytomonitorprogressagainstESG-relatedgoals.ESGLeadershipCouncilOperationally,ourESGOfficedrivescross-companySeniorfunctionalandbusinessunitleadersalignmentandintegrationofour2030Agenda,meetquarterlytomonitorprogressagainstimplementsESGinitiativesandmeasurestheprogressimplementationgoalsmadetowardenterprise-wideESGtargets.ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformanceTransparentandActionableReportingInternationalDisclosures:IndiaCSRActWeexpectourstockholdersandotherstakeholderstoTostayinformedandsharebestpracticesonInternationalDisclosures:holdusaccountableforourESGprogress.Thatiswhyemergingmandatoryreportingrequirements,weIndiaCSRActwevoluntarilyprovidetransparentupdatesannuallyinpartnerwithorganizationslikeAccountingforourESGReport,DEIReportandCDPdisclosure,Sustainability(A4S),whichwasestablishedtocatalyzeTheIndianCompaniesAct201312,oftenreferredwhichcanbefoundonVMware’sESGwebpage.actionbyfinanceleaderstodriveashifttowardatoastheIndiaCSRAct,requirescompanieswithaWealsodiscloseESG-relatedinformationinthesustainableeconomy.InFY23,across-functionalpresenceinIndiatospendaminimumpercentageannualVMwareTransparencyandLawEnforcementworkinggroupatVMware,includingrepresentativesofaveragenetprofitsoncorporatesocialReportandinourForm10-KandannualProxyfromtheESGOffice,Finance,HumanResources,responsibility(CSR)initiativesinIndia.VMwareStatementfilingswiththeU.S.SecuritiesandAccounting,Legalandmore,collaboratedtoimprovecomplieswiththismandatewhileregularlyExchangeCommission(SEC).reportingprocessesandpracticesaswepreparetoreportingongrantexpenditure,utilizationandcomplywithnewregulations.impactinalignmentwithandinadditiontoourESGdataenablesustomeasureourprogresstowardglobalCitizenPhilanthropycharitablegiving,goalsandprovidesactionableinsightstohelpinformLearnmoreaboutinvestorrelationsatVMware:whichinvestsinIndiannonprofitsthroughourstrategicprioritiesasweadoptasmartimpactir.vmware.comVMwareFoundationprograms.mindset.ReportingourdataandqualitativedisclosuresiscrucialtoearningtrustfromourInFY23,VMware’seffortsinIndiatowardthestakeholders,whichiswhyweworktoalignourESGCSRActsupported25nonprofitsworkingonaReportwithleadingframeworksandstandards:widerangeofcauses,includingeducation,environmentalconservation,economic•SustainableAccountingStandardsBoard(SASB)developmentandmore.•GreenhouseGasProtocol(GHGProtocol)•GlobalReportingInitiative(GRI)•TaskForceonClimate-relatedFinancialDisclosures(TCFD)•UnitedNationsSustainableDevelopmentGoals(UNSDGs)•PrinciplesoftheUnitedNationsGlobalCompact(UNGC)ESGIMPACTREPORT202341ESGStrategySustainabilityEquityTrustESGPerformanceResponsibleEthicsandAnti-CorruptionPoliciesVMwareSnapshot:AcultureofethicalconductandcompliancePublishedPoliciesEPIC2awardwinnercelebratediskeytomaintainingatrustedandresponsibleandPrivacyNoticesforembodyingoursharedvaluesbusiness.VMwaredevelopsethicalguidelinestogovernhowESGIMPACTREPORT2023ThiscultureiscoretoVMware’scommitmenttoweoperateasaresponsiblebusiness,includingintegrity,whichunderpinsourBusinessConductbutnotlimitedtothefollowingpoliciesandnoticesGuidelinesthatspecifystandardsofbehaviorthatthathavebeenpublishedexternally:gobeyondjustcomplyingwiththelaw.Theseguidelinesrequireallemployees,directorsand•BusinessConductGuidelinesexecutiveofficersofVMwaretoupholdour•CorporateGovernanceGuidelinessharedEPIC2values.Tocultivateacultureof•PartnerCodeofConductaccountability,aconfidentialethicshelpline,•SupplierCodeofConductmanagedbyanexternalvendor,isavailable•VMwareCommitmentAgainstSlaveryandaroundtheclockinmultiplelanguagesandwithanoptionforanonymousreporting.HumanTrafficking•VMwareEnvironmentalPolicyOurcommitmenttoethicsandresponsibilityis•VMwareTaxStrategybolsteredbyananti-corruptionprogramthatseekstoembedanti-briberymanagementintoLearnmoreattheVMwareInvestorRelationswebpageeveryfacetofourbusiness.Weleverageriskassessmentstodriveprocessandcontrol•CaliforniaRightsPrivacyNoticerefinement,identifytargetedtraining•ChinaPrivacyNoticeopportunities,andimplementprogram•CookiePrivacyNoticeenhancements.•GlobalPrivacyNotice•JobApplicantPrivacyNoticeThesepoliciesandmoreserveasVMware’s•ProductsandServicesPrivacyNoticeNorthStar,guidingourpathtowardbest-in-class•WorkspaceONEPrivacyDisclosureresponsiblebusinesspractices.LearnmoreattheVMwarePrivacyProgramwebpage42ESGStrategySustainabilityEquityTrustESGPerformancePublicPolicyandPoliticalEngagementOurGovernmentRelationsandPublicPolicyteampartnerswithPublicPolicyHighlightsFY23governmentsandpublicofficialstochampionourtechnologies,productsandservices,customers,employeesandglobalcommunities.WeworkwithVMwareparticipatesinpublicpolicyengagementsaroundtheworldtoalllevelsofgovernmentonpublicpoliciesrelevanttoourcorebusinessandco-innovatewithstakeholdersaswebuildamoresustainable,equitablevalues,andwepartnerwithtradeassociationsandindustryorganizationsandsecureworld:thatshareourvisionandpolicyobjectives.JoinedtheEuropeanGreenDigitalCoalitionincollaborationTheVMwareGovernmentRelationsteamcollaborateswithPODemployeewiththeEuropeanCommissionandEuropeanParliamenttoresourcegroupstomanagetheVMwarePowerofDifferenceGovernmentharnesstheemission-reducingpotentialofdigitalsolutionsEngagementProgram,whichprovidesemployeeswithopportunitiestodiscussDEIissueswithgovernmentofficials.Amongotherefforts,theAdvocatedforsustainabilitybydesigntobecomethefoundationVMwarePoliticalActionCommittee(PAC)supportsselectmembersofofsoftwaredevelopmentandtoridtheITindustryCongresssolelybasedontheirleadershipandactivismonESGandDEI.ofwastefulsystemsthatneedlesslyresultinhigherenergyWehaveidentifiedseveralCongressionalchampionstocorrespondtoourconsumptionattheclean-ITConferencewiththePODsandenvironmentalsustainabilityadvocacy.Hasso-PlattnerInstituteinGermanyLeadersfromtheBlack@VMwarePODattendedseveraleventshostedbytheU.S.CongressionalBlackCaucusInstitute(CBCI)andparticipatedinaneventhostedbyCongresswomanAlmaAdamsfromtheCongressionalBipartisanHBCUCaucustosupportworkforcedevelopmentinthetechnologyindustryRespondedtoarequestforinformation(RFI)fromtheOfficeoftheNationalCyberDirector(ONCD)attheWhiteHouseonhowtobuildadiverseandinclusivecybersecurityworkforceintheUnitedStatesESGIMPACTREPORT202343ESGStrategySustainabilityEquityTrustESGPerformanceBuildingTrust1t.orgAccountingforCleanEnergyBuyersTheClimatePledgeThroughPledgingtoacceleratenature-Sustainability(A4S)AssociationCommittingtosolvethePartnershipsbasedsolutionswithaServingasanactivemember,ServingasanactiveboardchallengesofdecarbonizingourcommitmenttoplantandprotectinspiringactionbyfinanceleadersmemberandaproudsignatoryofeconomyandachievingnetzeroVMwarecollaboratesand1milliontreesby2030todriveafundamentalshifttheEnergyBuyerFederalCleanemissionsco-innovateswithanexpansivetowardsresilientbusinessmodelsEnergyPolicystatementecosystemofpartnerstofosterandasustainableeconomyamoresustainable,equitableandsecureworld.ByworkingEuropeanGreenDigitalEV100GreenSoftwareFoundationNationalScienceFoundationwithotherstosolveourCoalitionSupportingtheadoptionofContributingtoatrustedSupportingmultipleprojectswithcollectivechallenges,VMwareHarnessingtheemission-electricvehiclesbyourecosystemofpeople,standards,agoaloffosteringtransformativebuildstrustandenhancesourreducingpotentialofdigitalemployeesandatourofficetooling,andbestpracticesforresearchthatchangeshowweabilitytodrivesmartimpact.solutionsalongsidenearly40ITlocationsoverthenextdecadeenvironmentallysustainableworktomorrowHereareafewofthemanycompaniessupportedbythesoftwareorganizationsthatwepartnerEuropeanCommissionandthewitharoundtheworld:EuropeanParliamentRE100StanfordVMwareWomen’sTheValuable500WorldEconomicForumSigningonearlytothisglobalLeadershipInnovationLabServingasamembertounlockServingasanactivememberinitiativerepresentingbusinessesSponsoringresearchandthebusiness,socialandeconomicwithWEF,anon-partisan,committedtousing100percentdevelopingsolutionstoadvancevalueofmorethan1billionnonprofitorganizationthatrenewableelectricityinwomen'sleadershipandgenderpeoplewithdisabilitiesaroundengagesprominent,political,partnershipwiththeClimateequalitytheworldbusinessandotherleadersGroupandCDP44ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustESGPerformanceImpactSpotlight:BreakingtheBiasinCybersecurityInternationalWomen’sDayinMarchisaglobalacknowledgementofthesocial,Myroleasanengineeringleadergivesmetheeconomic,cultural,andpoliticalachievementsofwomen.Asaproudchampionofchancetohiredeservingdiversetalentandmentorwomen,VMwareiscommittedtoadvancinggenderequalityandacceleratingthem.Imakeaconsciouseffortnottoallowthefemaleleadershipinthetechnologyindustry—especiallyincybersecuritywhereworld’s(ormyown)biasestolimitmeinrealizingmywomenareunderrepresentedcomparedtomalepeers.13potential.ThatistheexampleIhopetosetforthenextgenerationofwomentohelpbreakthebias.Withsuchgenderimbalanceinthesecurityindustry,itiscriticalforfemalesecurityprofessionalstoadvocateforcareerdevelopment,supporteachDHARMASRINIVASANotherthroughallyshipandpushto“breakthebias”together—theDIRECTOROFENGINEERING,VMWAREthemeofInternationalWomen’sDayin2022.Thispastfiscalyear,VMwarehelpedraisedawarenessonthesesystemicchallengesbyshiningaspotlightonourownfemalesecurityprofessionalsandaskingtheiradviceonhowtoovercomebiasesandestablishtheircareers.LearnmoreaboutVMwarewomenincybersecurityAsanengineeringmanagerfortheVMwareSecurityBusinessUnit,Ifeelthatitismyresponsibilitytofosteranenvironmentwhereeveryonefeelsthattheirvoicecanbeheardandtheirinputisvalued.Whenwehaveadiversesetofperspectives,wecanbuildabetterpictureoftheproblemathandanddeliverwell-roundedsolutionstoourcustomers.CAROLHOLMSTEDTENGINEERINGMANAGER,VMWAREESGIMPACTREPORT202345ESGStrategySustainabilityEquityTrustESGPerformanceFutureImpactinTrustEmerginginternationalregulations,theriseofWerecognizethatbuildingtrustisaconstantpracticeBeyondZeroTrustgenerativeAIandbadactorstakingadvantageofessentialtobothourlong-termbusinesshealthandsecurityvulnerabilitiesmakeaccountablecorporateourcustomerrelationships.OurcustomersexpectourDeliveringtrusted,moresecurecapabilitiestoourgovernanceandresponsiblebusinesspracticesmoretechnologysolutionstofocusonsecurityandcustomersiscrucialinafuturethatwillseeever-crucialthaneverbefore.Enterprisesneedtobetterresilience,whilealsoexpectingustoactresponsiblyincreasing,morecomplexcyberattacks.BeyondZeroprotectstakeholderdata,achievecompliance,andandtransparently.ThroughourcollectiveESGeffortsTrustisacompany-wideefforttousecross-functionaleffectivelydefendagainsttheincreasingcyberattacksVMwareprotectsthetrustwe’vebuiltwithteamsandourtechnologytofurtherprotectourthreateningourdigitalworld.stakeholdersandadvancesourimpactwiththemasproducts,systemsandpeoplebybetterdetectingwemoveforwardtogether.andlimitingimpactfrominsiderthreats.TheseeffortsWhiletrustislargelyaboutprovidingprotection,rangefromimplementingnewpoliciesandsecurityVMwareusesoursmartimpactapproachtoadvanceReadVMware’sblogpostaboutethicalAIprotocolstoamorerobustauthenticationframework.cutting-edgesolutionsthataddressemergingtrends.TheBeyondZeroTrustinitiativeisdesignedsoweLookingahead,VMwareplanstocontinuetocontinuetoearnourcustomer’strustbysupportingstrengthenourESGreportingandauditpracticesasthefollowinggoals:regulatoryrequirementsevolvearoundtheworld.Inaddition,asweexploretheopportunitiesofAI,weareQualitysoftwarealsoaddressingprivacy,securityandethicalEnableteamstoproduceproductsconsiderationsaswecontinuetooperateresponsibly.andservicesthatserveourcustomersintermsofreliability,integrityandESGIMPACTREPORT2023usabilityColleaguesecurityContinuallyworktosecureourenvironmentandplatformswhilereplacinglegacyenvironmentsasweacceleratetransformationDetectanddefendExpandoursecurityservicestobeabletobetterdetectordefendagainstmaliciousactivity46ESGStrategySustainabilityEquityTrustEESSGPerformanceESGPerformanceESGIMPACTREPORT2023NicolaAcutt,VPofESGandChiefSustainabilityOfficer,highlightsVMware'scommunitymicrogridatcompanytownhall47ESGStrategySustainabilityEquityTrustEESSGPerformanceESGPerformanceDatatransparencyisacornerstonetokeepingourselvesaccountableinachievingour2030AgendaoutcomesofSustainability,EquityandTrust.Besideskeepingourstakeholdersinformed,wealsoleveragedatatoimproveourdecision-makingandcapacityforinnovationwhenimplementingoursmartimpactapproachtoESG.Inadditiontoourannualdatadisclosures,wesharequalitativeprogressupdatesoneachofour30cross-companygoalswithinthe2030Agenda.Overtime,wehavedeepenedouralignmenttoleadingframeworksthatguidethestructureofthisreportaswellasstandardsthatprescribespecific,replicableanddetailedrequirementsforwhattopicsshouldbedisclosedbasedonourindustry.TheseframeworksandstandardsincludetheTCFD,GHGProtocol,GRI,SASB,andthePrinciplesoftheUNGC.ESGIMPACTREPORT2023VMwareemployeescollaboratetocreateartworkcelebratingVMware’s25thanniversary48ESGStrategySustainabilityEquityTrustEESSGPerformance2030AgendaProgressSustainabilityGOALDESCRIPTIONPROGRESSUPDATECarbonWewillempowerourcustomersbyenablingtransparencyInFY23,wereleasedtheGreenScorefeatureinVMwareAriaOperationstotracksustainabilityprogressandprovideTransparencyintothecarbonreductionimpactofVMwaresolutions.actionablerecommendationsforcustomers.Inaddition,weareimprovingtheaccuracyofVMpowermetricsinvSphere.WorkloadWewillprioritizeradicalefficiencyinnovationsthatWeactascustomerzeroforourproductstoachieveworkloadcarbon-efficiencygains.Throughtheseefforts,wedefinedCarbonaccelerateproductivityandcarbonefficiencyofqualificationcriteriaforcarbon-efficientcustomersandenhancedpowermanagementfeaturesforenergy-efficiencygains.Efficiencycustomers'digitaloperations.AsofMay2023,56partnershavejoinedtheVMwareZeroCarbonCommittedprogram.ZeroCarbonWewillcollaboratewithourenterprisepubliccloudpartnersCloudstocatalyzethetransitiontozerocarboncloudsthroughtheAsofFY23,weachieved82percentofourScope1and2emissionsreductiontargetrelativetotheFY19baseyear,44percentadoptionof100percentrenewableenergy.ofourScope3emissionsreductiontargetforfuel-and-energy-relatedactivitiesrelativetotheFY19baseyear,and50percentNetZeroofScope3emissionsreductiontargetforemployeecommutingrelativetotheFY19baseyear.Inaddition,52percentofourEmissionsWewillachievenetzerocarbonemissionsforouroperationssuppliers(byspend)haveatleastcommittedtosettingscience-basedtargets.andsupplychainandreduceouremissions50percentfromFY19baselineby2030.BusinessWewillensurebusinessresiliencefromourphysicalWecontinuetoenhancemanagerpreparednessthroughpeoplemanagerresiliencyplansandimproveouremergencyResilienceinfrastructuretoourdistributedworkforce.notificationsystemsafterapplyinglessonslearnedfromtheCOVID-19pandemicandrecentnaturaldisasters.DistributedWewillinvestinrenewableenergytechnologytoInFY23,theTechnicalBuildingOperationsteamatVMwarebeganmonitoringoperatingconditionsrelatingtoenergyEnergyacceleratethetransitiontoworkplacedistributedenergy.efficiencyofourcommunitymicrogrid.Thisensuresthatthemicrogridcanprovideclean,reliableenergyevenasdemandincreasesduetorisingtemperatures.E-WasteResponsibilityWewillprocess100percentofoure-wasteintheToavoidcarbonemissionsfrome-waste,weexpandedourpreferredend-of-lifevendorbase,whichenablesincreasedassetmostsociallyandenvironmentallyresponsiblemanner.dispositionoptionsacrossourglobalfacilities.Wealsoincreasedtheresaleofend-of-lifeequipmenttoextendtheusefulnessImpactofhardware.InvestmentsWewillinvestininnovationsattheintersectionofsocial,VMwarehasmadetwoimpactinvestmentsalignedwithourtechnologyroadmapinthefollowingareas:1)geospatialdataWaterenvironmentalandfinancialimpact.capture,processingandanalyticsthatenableenterprisecustomerstodetect,prioritize,andmonitorforenvironmentalandResiliencesocialimpacts;2)softwarefocusedonacceleratingcleanenergytransitionbyenablingsecureAIanddataanalyticsacrossenergycompanies.SustainableCloudAdvocacyWewillinstituteaggressivewaterconservationintheToreducewaterconsumptionby20percentby2025,wehaveinstalledwatermeters,lowflowfixtures,aerators,andsensor-water-stressedregionswithinourworkplaceportfolio.basedtapsinrestroomswithinmanyofouroffices.InFY23,wereducedconsumptionby12.5percentascomparedtotheFY21baselineyear.WewillcollaboratewithglobalgovernmentstodriveITpolicyInFY23,VMwareadvocatedinfavorofsustainabilitylegislation,includingtheU.S.federal2023AppropriationsActthatthatmakesITinfrastructuremorereliable,scalable,flexible,includesprovisionsonmulti-cloudthatcanleadtoreducingtheenergyconsumptionofITinfrastructure.VMwarealsojoinedsecure,cost-effectiveandsustainable.theEuropeanGreenDigitalCoalitiontosupportincreasingtheuseofemission-reducingdigitalsolutions.ESGIMPACTREPORT202349ESGStrategySustainabilityEquityTrustEESSGPerformance2030AgendaProgressEquityGOALDESCRIPTIONPROGRESSUPDATEAnywhereWewillsupportourcustomers’distributedworkforcestobeWithintheVMwareAnywhereWorkspacesolutions,mobileplatformswereenhancedwithWorkspaceONEMobileThreatWorkspaceproductive,wherevertheyare,withanintegratedZeroTrust–Defensetoprovidecustomerswithaddedsecurityfortheirdistributedworkforces.Authenticationoptionswerealsoaddedtobasedintelligentplatformthatcombinessecuritywithanimproveend-userexperiencewhilestillenablingsecureaccesstoenterpriseresourcesregardlessofend-userlocation.Diversity,Equityexceptionalend-userexperience.andInclusionWewilldriveequitybyfocusingondiversehiringInFY23,womenrepresented29.8percentofourglobalemployees,underrepresentedminoritiesrepresented13percentofDistributedandpracticinginclusiveleadership.ourU.S.workforce,33.3percentofourglobalhiresself-identifiedasawoman,and16.3percentofU.S.hiresself-identifiedasWorkforceanunderrepresentedminority.Tostayaccountable,corporateDEIgoalsweretiedtobonuscompensation.EquitablePayWewillenableadiverse,globalworkforcebuiltonchoiceInFY23,92percentofrespondentstoouremployeesurveyagreedthatVMwareisdeliveringonitscommitmenttogiveandflexibilitybyempoweringouremployeeswiththerightemployeeschoiceandflexibilityinwheretheywork.Toaddresstheneedsofadistributedworkforce,VMwaretransformed70collaborationcapabilities,technologyandworkpracticesaspercentofourofficeportfoliotomeetcollaboration-firstdesignprinciples.theygrowtheircareerwithoutlimitationsorboundaries.Wewilldriveequityandretentionofwomenandunder-Weanalyzecompensationglobally,accountingforfactorsthatinfluencepaysuchasjob,grade,tenure,timeinjob,locationrepresentedcommunitiesthroughourcommitmenttoandperformance.OurmostrecentanalysisshowsthatwomenatVMwareearn99percentoftheirmalecounterparts'salaryequitablepay.globally,andracialandethnicminorityemployeesearn100percentoftheirwhitecounterpartsintheUnitedStates.TechnologyWewillenablethetechnologythatwedevelopandVMwareconductsaccessibilityauditsandprovidesconsulting,education,andsupporttoProductandMarketingteamsAccessibilityselltobeaccessibleforall.throughourEmbeddedAccessibilityStrategistprogram.SupplierWewillsupportdiverse-ownedsuppliersincludingsmallInFY23,wematuredourdatacollectiontobetterevaluatesupplierdiversityamongthird-partyvendors,engagedtopsuppliersDiversitybusinesses,women-ownedandotherunderrepresentedtodoanassessmentthroughEcoVadis,andbeganleveragingcontractuallanguagetorequiresupplieractiononsustainability,minoritiesbyincreasingourspendwiththesesuppliers.diversityandaccessibility.SinceFY21,we'veinvestedacumulativemorethan$300millionwithdiversesuppliers.CultureofServiceWewillcontinuetofosteracultureofservicebyamplifyingInFY23,morethan33,000VMwareCitizenPhilanthropistssupportedmorethan15,000nonprofitsin98countriesthroughthepersonalcontributionsofourpeople'stime,talentsandprogramssuchasMatchingGifts,ServiceLearning,MilestoneAwards,ayear-endglobalgivinginitiative,andotherresourcestotheirnonprofitsofchoiceinourglobalemployee-directeddonations.Wealsoinitiatedourfirst-everHumanitarianReliefdonationthispastyear.communities.DigitalSkillsWewillgrowadiversetalentpoolthatunderstandsInFY23,VMwareITAcademyupskilledmorethan100,000learnersonVMwaretechnologysolutions,grantedmorethanVMwaresolutionsthroughdigitalskillseducation.1,300VMwarecertificationsandreachedmorethan15,000learnersthroughalearn-a-thoneventinIndia.NonprofitDigitalWewillhelptoacceleratenonprofits'impactgloballybyWeserved1,135nonprofitsinFY23throughVMwareinitiativessuchasGoodGigsProjectsandNonprofitPricing,aswellasTransformationsupportingnonprofitsintheirdigitaltransformationjourneys.throughoursupportofTechSoup’sDigitalAssessmentToolfornonprofits.WellbeingWewillbuildonthefoundationofourEPIC2valuesthroughVMwarecontinuedtoimproveourcomprehensivebenefitsprogram,designedtoassistemployeesintakingcareofwellbeingandpeopleempowermentprogramsthatarethemselvesandachievingwellbeing.Thisincludesouremployeewellbeingallowancethatoffersemployeesfundsforactivitiesthatalignwithoneoffourwellbeingpillars:physical,emotional,financialandcommunity.accessible,inclusive,andinnovative.ESGIMPACTREPORT202350ESGStrategySustainabilityEquityTrustEESSGPerformance2030AgendaProgressTrustGOALDESCRIPTIONPROGRESSUPDATESecurityWewillenableourcustomerstoprotecttheirapplicationsandInFY23,weinitiatedaprogramtoactivelyscaninternet-exposedsystemsforknownvulnerabilitiesandproactivelyreachedPrivacybydatawithup-to-datesecuritytechnologythatembedssecurityouttoourcustomerstohelpimprovethesecuritypostureoftheirVMwareproductinstallations.Inaddition,VMwareDesignthroughouttheirdigitalinfrastructure.continuestomakeregulardisclosuresofexploitableidentifiedvulnerabilitiesatVMwareSecurityAdvisories.FairandEthicalPracticesWewillinspirecustomerandemployeetrustbyembeddingInFY23,weaddednewcustomerresourcesintheVMwareCloudTrustCentertoincreasetransparency,includingdatasheetsprivacybydesignintotheDNAofhowwedesign,buildandthathelpexplainhowourserviceofferingshelpcustomersprocesspersonaldata.RecentregulatorycomplianceadditionsTransparencydeployproducts,servicesandapplicablebusinessoperations.includetheHIPAABAAform,BCR-PFAQs,andU.S.statelawreferences.VMwareWewilldrivefairandethicalbusinesspracticesacrossourInFY23,VMwarecreatedtechnologicalmonitoringcapabilitiestoidentifyhigh-risktransactionsandlaunchedtheEthics&onVMwarevaluechainbyleveragingpredictivetechnologycapabilitiesComplianceAmbassadorsprogramgloballytoincreaseawarenessoffairandethicalpractices.andthroughgreatercollaborationaroundtheglobe.WorkforceDevelopmentWewillchampionoperationalexcellenceandtransparencyVMwarehasimplementedanESGgovernancestructuretoensureoversightandtransparency.OurGovernanceCommitteeacrossourorganization,throughourgovernance,reportingoverseesourESGprogressourAuditCommitteeoverseescybersecurityanddataprivacymatters,andourCompensationImpactandcommunications,includingengagementandoversightatCommitteereviewsESGinthecontextofexecutivecompensation.AdvocacythemanagementandBoardofDirectorslevels.DigitalWewilloperateourinfrastructuretothehighestlevelofAscustomerzeroandfirstadoptersofVMwaretechnology,weprovidepracticalstepsforourcustomerstodeployVMwareEthicssecurity,reliabilityandefficiencythroughthedeploymentofproductsgloballyatscale.Our2023VMwareITPerformanceAnnualReporthelpscustomersbuildaresilient,future-readyVMwareonVMwaresolutions.organizationinspiredbyVMware'sowndigitaltransformationjourney.IntegratedReportingWewillenableourpeopletoadvancefromeveryInFY23,wefocusedoncuratingcontentanddrivingemployeeconsumptionoftechnical,product,leadershipandbusinesschairandgrowthroughouttheircareer.skilltrainingresources.Onaverage,VMwareemployeesreceivedmorethan25hoursoftrainingannually,whichequatestoSustainablemorethan900,000hoursoftrainingintotalfortheyear.FinanceWewillsupportpolicythatdrivesclimate-positiveITsolutionsTheVMwarePACsupportscertainmembersofCongresssolelybasedontheiractivismonESGandDEIissues.Ithostsimpactandsocialimpactpolicythatsupportsequityandinclusion.publicpolicyeventsforVMwareemployeeresourcegroupleaderstomeetwiththeirpoliticalrepresentativesaswellasemployeeresourcegroupleadersfromothercorporations.Wewillempowerourengineersandorganizationtodevelop,WecreatedethicalprinciplesforAItoensureweoperateresponsibly,leveragingbestpracticesfromtheNIST,thebuildandreleaseproductsinalignmentwithourcodeofAssociationfortheAdvancementofArtificialIntelligence(AAAI),andtheEuropeanUnion’shigh-levelexpertgrouponAI.digitalethicsandstewardship.Wewilltransitiontointegratedreporting,combiningfinancialWeexpandedESGandDEIdisclosuresinourFY23Form10-Kand2023ProxyStatementfilingsinpreparationforemergingandnonfinancialdatainalignmentwithSASBandTCFD.regulations.WewilldevelopandincorporatesustainablemetricstoembedVMwarecontinuedourparticipationinAccountingforSustainability,includingtheCFOLeadershipNetwork,andfurtherintegratedsustainabilityintoVMware’sfinancialprocessesbyaligningourannualoperatingplanandresourceallocationwithsustainabilityintoourfinancialdecision-makingprocess.ourESGstrategyandpriorities.ESGIMPACTREPORT202351ESGStrategySustainabilityEquityTrustEESSGPerformanceTCFDDisclosureCATEGORYSUB-CATEGORYRESPONSEGOVERNANCEDescribeboardoversightVMwarehasimplementedanESGgovernancestructurethatincludesannualoversightbythefullBoardofDirectors(Board)overESGtopics,Disclosethecompany’sofclimate-relatedrisksincludingclimate-relatedrisks.OurNominating,GovernanceandRelatedPersonsTransactionsCommitteeoftheBoard(GovernancegovernancearoundandopportunitiesCommittee)isresponsibleforprimaryoversightofourESGprogress,includingwithrespecttoclimate-relatedriskmitigationandopportunities.climate-relatedrisksTheGovernanceCommitteereviewsESGstrategyandprogramprogressthreetimesperyear.TheGovernanceCommitteealsooverseesandopportunitiesDescribemanagement’sroleinVMware’scorporategovernancepractices,whichprovideacompany-wideframeworkforoperatinginthebestinterestsofallourstakeholders,assessingandmanagingclimate-includingemployees,customers,partners,suppliers,stockholdersandcommunitiesinwhichVMwareoperates,andincompliancewithRISKMANAGEMENTrelatedrisksandopportunitiesapplicablelegalrequirementsaswemanagerisksandbenefitfromopportunitiesrelatedtoclimatechange.OurESGgovernancestructureisfurtherdetailedonpage40ofthe2023ESGReportandinthecompany’s2023ProxyStatement,availableatir.vmware.com.Disclosehowthecompanyidentifies,VMware’sESGExecutiveSponsors,comprisedofC-suiteleaders,meetquarterlytoprovideESGstrategydirection,reviewthelatestmacro-assesses,andmanagestrendstoassessemergingclimate-relatedrisksandopportunities,andensureaprogramisinplacetoidentify,assess,manageandmonitorclimate-relatedrisksclimaterisks.OurESGLeadershipCouncil,madeupofseniorfunctionalandbusinessunitleaders,meetsquarterlytomonitorprogressagainstourgoalsandtocraftshort-andmedium-termroadmaps.Operationally,VMware’sESGOfficedrivescross-companyalignmentandintegrationESGIMPACTREPORT2023ofour2030Agenda,implementsinitiativesandmeasurestheprogressmadetowardourtargets.TheESGOfficeisledbyourVP,ESGandchiefsustainabilityofficer.Describethecompany’sTheAuditCommitteeoftheBoardhasoversightoftheInternalAuditfunction,whichidentifiesandassessesenterprise-widerisks,includingprocessesforidentifyingandclimate-relatedrisksthatareconsideredequallyinrelationtootherenterpriserisks.InternalAuditisresponsibleforassuranceandriskadvisoryassessingclimate-relatedrisksservices(suchasmaturityassessments,riskprofiling,raisingawareness)andperformsannualcomplianceriskassessmentsforidentified/emergingrisks;company-wide;acrossthevaluechain;andacrossshort-,medium-andlong-termhorizons.Riskscenariosareevaluatedforfinancial,reputationalorotherrisks,andthentheVPofInternalAuditdeterminesiftheriskscenariorisestothelevelofacorporateriskfocusorifitshouldbereevaluatedlater.TheresultinglistofcorporateriskfocusareasisreviewedwiththeAuditCommitteeonaquarterlybasis.Theoperationalriskassessmentprocessisongoing;pertinentrisksariseandareflaggedbytheRiskManagement,PhysicalSecurity,EmergencyResponse,andCrisisManagementteams,includinganyrisksorissuesidentifiedbyInternalAuditinthecourseoftheiraudits.Inaddition,VMware’sVP,ESGandchiefsustainabilityofficercollaborateswiththeVPofInternalAudittointegrateclimaterisksandopportunitiesfromdirectoperationsintotheriskassessmentprocess.ThisallowstheESGOfficetoprovideexpertiseonthelatestclimatescienceandensuretheuniqueanddynamiccharacteristicsofclimaterisksareconsidered.Describethecompany’sprocessesTomanagerisks,EnterpriseResiliencyfocusesonriskmitigationstrategiesforthosekeybusinessinterruptionrisksidentifiedbymanagementformanagingclimate-relatedrisks,self-assessments,incorporatinginputfromInternalAudit,includingclimate-relatedriskssuchasnaturaldisasters.EnterpriseResiliencyworkstoandhowprocessesforidentifying,improvedisasterpreparednessandunitesbusinesscontinuity,technologyrecovery,emergencyresponse,andcrisismanagementprogramsassessing,andmanagingclimate-underacollaborativegovernanceframeworktoeffectivelymanageriskstoVMware’speopleandbusiness.Ultimately,climate-relatedrisksarerelatedrisksareintegratedintomitigatedbyrelevantteams,includingWorkplace,CrisisManagement,PhysicalSecurity,andEnterpriseResiliency,throughtheimplementationthecompany’soverallriskofdisasterrecovery,crisismanagement,andbusinesscontinuityplanning.management52ESGStrategySustainabilityEquityTrustEESSGPerformanceTCFDDisclosure(Continued)CATEGORYSUB-CATEGORYRESPONSESTRATEGYDescribetheclimate-relatedrisksToleadintheglobaltransitiontoalow-carboneconomy,VMwaredevelopedour2030Agenda,whichisacalltoactionwithmeasurablegoalsintegratedandopportunitiesthecompanythroughoutthecompanyandservesasaframeworktooperationalizeourESGstrategy,sparkinnovation,andensureaccountability.VMware’scollectiveeffortstoDisclosetheactualhasidentified,theirimpactonthedrivenetzeroemissionsinouroperationsandembedsustainabilityinourproductsolutionswillhelpusmitigateclimate-relatedrisksandcapturerelatedandpotentialimpactsofcompany’sbusinesses,strategy,opportunitiesinthefaceofclimatechange.Our2030Agendawillenableustocontinuetoimproveresourceefficiency,investinthetransitiontoalow-carbonclimate-relatedrisksandandfinancialplanning,andtheeconomy,andbuildenterpriseresiliencyatVMware.opportunitiesontheresilienceofthecompany’scompany’sbusinesses,strategyInadditiontothe2030Agendaandourongoinginternalriskassessmentprocesses,aclimatescreeningwasconductedinfiscalyear2022toidentifyandassessstrategy,andfinancialVMware’sclimate-relatedtransitiontoalow-carboneconomyandphysicalrisks,aswellascorrespondingopportunities.OperationalleadersacrosskeyfunctionalplanningbusinessareaswereenlistedtoestablishadetailedunderstandingofhowVMwarecurrentlyaddressesclimateriskstosuccessfullyexecutebusinessobjectives.Inconductingthisscreening,weengagedaglobalsustainabilityconsultingleadertohelpusbetterunderstandourriskexposure,sothatwewillbeabletocreateaESGIMPACTREPORT2023formalroadmapforscenarioanalysisandresiliencyplanningandbetterdevelopstrategiesforleveragingopportunities.TheassessmentsoughttoidentifyrisksandopportunitiesbywayofinterviewswithVMware’sinternalstakeholders.Physicalandtransitionrisks:•Physical–Acute:Increasingfrequencyandseverityofevent-drivenextremeweatherevents•Physical–Chronic:•Risingmeantemperaturesandincreasedtemperaturevariability•Risingsealevels•Changesinprecipitationpatterns•Transitional–Technology:Uncertaintyincostofthetechnologicalinnovationswhichsupporttheenergytransitiontoalow-carboneconomy•Transitional–Reputation:UncertainandchangingperceptionsofVMware’scontributiontothetransitiontoalowcarboneconomy.•Transitional–Legal&Policy:Policiesthatacttoconstrainadverseeffectsofclimatechangeorpromoteadaptationtoclimatechange.•Transitional–Market:UncertainshiftsinsupplyanddemandforVMwareservices.OpportunitiesVMwarecanfurtherpursue:•ResourceEfficiency:EfficiencyofVMware’sofficesandoperations(datacentersandcloudpartners)•EnergySource:VMware’suseoflower-emissionsourcesofenergyandparticipationinthecarbonmarket•ProductsandServices:TheshiftofconsumerpreferencestowardVMware’sproductswhichaccelerateproductivityandcarbonefficiencyofcustomers’digitaloperations•Markets:VMware’saccesstonewcustomers•Resilience:VMware’sabilitytocontinuetodobusinessinthemidstofclimate-relatedrisksthroughresilienceplanningandreliabilityofproductsandservicesWebelieveourapproachtoanalyzingclimate-relatedrisksandopportunitieswillhelpVMwareestablisharesilientpathforwardinthefaceofclimatechange.Theabove-describedclimate-relatedriskassessment,conductedcross-functionallywithourinternalstakeholders,providesthequalitativedatanecessarytounderstandVMware’spositionintheclimate-relatedrisklandscape.MoreinformationonVMware’sdisclosedclimate-relatedriskscanbefoundinourSECfilings,includingForms10-Kand10-Q,availableatir.vmware.comandinourannualCDPdisclosure.53ESGStrategySustainabilityEquityTrustEESSGPerformanceTCFDDisclosure(Continued)CATEGORYSUB-CATEGORYRESPONSEMETRICSANDTARGETSDisclosethemetricsusedbyVMwareusesavarietyofmetricstounderstandourexposuretoclimate-relatedrisksandopportunities.Thisdataenablesustomeasureourthecompanytoassessclimate-progresstowardgoalsandprovidesactionableinsightstohelpinformstrategicprioritization.Theseinclude,butarenotlimitedto,transitionriskDisclosethemetricsandrelatedrisksandopportunitiesmetrics,suchasworkloadcarbonefficiency,energyconsumptionanddistribution,andourGHGemissions.Physicalriskmetricshighlightedtargetsusedtoassessinlinewithitsstrategyandriskincludeourabilitytominimizee-waste,conservewater,increasesustainablesourcing,andbuildbusinessresiliencegloballyinourphysicalandmanagerelevantmanagementprocessinfrastructure.Internally,ESGprogressmetrics,whichtrackspecificinitiativesbeingimplementedacrossbusinessunitsandfunctions,areclimate-relatedrisksandassessedandintegratedintoaquarterlyCEOreview.Externally,VMwarevoluntarilyprovidestransparentquantitativeandqualitativeupdatesopportunitiesDiscloseScope1,Scope2,and,ifonourESGperformanceannuallyinourESGReport,CDPdisclosure,andForm10-KandProxyStatementfilings.appropriate,Scope3greenhouseWebelievethisreportingisacrucialcomponentinearningthetrustofourstakeholders,whichiswhyweworktoalignwithleadingESGgas(GHG)emissions,andtheframeworksandstandards:relatedrisks•SustainableAccountingStandardsBoard(SASB)Describethetargetsusedbythe•GlobalReportingInitiative(GRI)companytomanageclimate-•TaskForceonClimate-relatedFinancialDisclosures(TCFD)relatedrisksandopportunities•UnitedNationsSustainableDevelopmentGoals(UNSDGs)andperformanceagainsttargets•PrinciplesoftheUnitedNationsGlobalCompact(UNGC)VMware’semissionsarecalculatedinlinewiththeuniversallyrecognizedGreenhouseGasProtocol,whichenablesVMwaretorespondtoemergingregulationsandexpectationsfromstakeholdersforincreasingdisclosureofemissionsmetrics.PleaseseetheESGDatasectiononpage63forourFY23ESGdata,includingourScope1,Scope2andScope3GHGemissions.AspartofVMware’sjourneytonetzero,VMwaresettargetsforouroperationsandsupplychainthatcanalsohelpmitigaterisksandcaptureopportunitiesrelatedtoclimatechange.Inadditiontoa100percentrenewableenergycommitment,VMwareiscommittedtothefollowing1.5°C-alignedtargetsvalidatedbytheSBTi:•50percentreductioninScope1andScope2emissionsby2030(baseyearfiscalyear2019)•50percentreductioninScope3employeecommuteemissionsby2030(baseyearfiscalyear2019)•50percentreductioninScope3fuel-and-energy-relatedemissionsby2030(baseyearfiscalyear2019)•75percentengagementofoursuppliers(byspend)incommittingtosettheirownscience-basedtargetsbyendoffiscalyear2025ESGIMPACTREPORT202354ESGStrategySustainabilityEquityTrustEESSGPerformanceESGDataFY23GRISASBUNGC55DESCRIPTIONVMware,Inc.GRI102-1COMPANYOVERVIEW$13,350OrganizationnameVMwareForm10-KFY23GRI102-2Totalrevenue(inmillions)10,000+Primarybrands,products,andservices3401HillviewAvenue,PaloAlto,California94304USAGRI102-3WorldwidepatentsandapplicationsVMwareofficelocationsGRI102-4LocationofheadquartersVMwareForm10-KFY23GRI102-5LocationofoperationsVMwareForm10-KFY23GRI102-6OwnershipandlegalformVMwareForm10-KFY23GRI102-7MarketsservedJanuary29,2022-February3,2023GRI102-50ScaleoftheorganizationAnnualGRI102-52ReportingperiodESG@vmware.comGRI102-53ReportcycleVMwareForm10-KFY23GRI201-1ReportcontactVMware2022CDPClimateChangedisclosureGRI102-13DirecteconomicvaluegeneratedanddistributedShareholders,customers,partners,employees,communities,theenvironmentGRI102-40MembershipofassociationsVMware2023ESGReport,ExecutivePerspectivesGRI102-14ListofstakeholdergroupsVMware2023DEIReportGRI102-8Statementfromseniordecision-makerWeareinvolvedinmanyexternalinitiativesandpartnerships,including:InformationonemployeesandotherworkersRE100,CEBA,UNGC,Valuable500,1t.org,TheClimatePledge,WorldEconomicForumandmore.GRI102-12ThelowcarbonsustainabledevelopmentprojectsthatwesupportaddressnumerousSustainableExternalinitiativesDevelopmentGoals(SDGs),including:SDG3,SDG4,SDG5,SDG6,SDG7,SDG8,SDG9,SDG12,SDG13,SDG15,SDG16andSDG17.DetailsoftheseprojectscanbefoundinVMware's2022CDPESGIMPACTREPORT2023ClimateChangeresponse.ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTIONCorporateGovernanceGuidelinesGRI102-18GOVERNANCEVMware'sEnvironmental,SocialandGovernancestrategyisledbytheVP,ESGandchiefsustainabilityofficerCORPORATEGOVERNANCEandisoverseenbythefollowingESGExecutiveSponsors:chiefexecutiveofficer,chieffinancialofficer,chiefGRI102-20Governancestructurepeopleofficer,generalcounsel,presidentandchieftechnologyofficer10GRI102-22Executive-levelresponsibilityforeconomic,30%GRI102-22,405-1environmental,andsocialtopicsGRI102-22CorporateGovernanceGuidelinesGRI102-23Totalexecutiveandnon-executiveboardmembersGRI102-24CorporateGovernanceGuidelinesGRI102-25BoardgenderdiversityGRI102-26CompositionofthehighestgovernanceCorporateGovernanceGuidelinesbodyanditscommitteesChairofthehighestgovernancebodyCorporateGovernanceGuidelinesNominatingandselectingthehighestgovernancebodyCorporateGovernanceGuidelinesConflictsofinterestRoleofhighestgovernancebodyinCorporateGovernanceGuidelinesGRI102-28settingpurpose,values,andstrategyGRI102-33EvaluatingthehighestgovernanceCorporateGovernanceGuidelinesbody’sperformanceGRI102-47CommunicatingcriticalconcernsDataprivacyandsecurity,digitalethics,productstewardshipanddesign,climateresilienceandadaptation,energyandGHGemissions,civicengagementandpublicpolicy,communityengagement,digitalskillsandListofESGmaterialtopics14training,humancapital,inclusionandequalopportunity,supplychainresponsibility,businessoversightandtransparencyESGIMPACTREPORT202356ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTIONVMwareengagedApexCompaniesLLC(Apex)asanindependentthirdpartytoreviewourFY23GreenhouseGRI102-56Principle10GOVERNANCE(CONTINUED)Gas(GHG)inventoryandenergyconsumptionandreceivedlimitedassuranceofitsaccuracyandPrinciple10CORPORATEGOVERNANCE(CONTINUED)completeness.Thescopeofthisreview,includedinthisreport,includesglobalScope1andScope2GHGGRI102-16emissions,Scope1and2energyconsumption,andScope3GHGemissionsrelatedtobusinesstravel,GRI102-16Externalassuranceemployeecommutingandfuel-andenergy-relatedactivities.TherestofthisreporthasnotbeenexternallyGRI102-17assuredbyanindependentthirdparty.Pleaseseeourthird-partyassuranceletterbyApexformoredetails.CodeofconductPercentageofemployeeswhocompletedBusinessConductGuidelinesBusinessConductGuidelinestrainingMechanismsforadviceandconcernsaboutethics100%PUBLICPOLICYCompanypoliticalcontributionsETICAistheVMwareEthicsHelpline,whichisareportingservicethatpermitsemployeestoaskquestions,VMwarePACcontributions15reportconcernsorfollowuponmatterstheyhavealreadyreported.Ithelpsourcompanyaddressfraud,DATAPRIVACYANDSECURITYabuse,andmisconductintheworkplace,allwhilecultivatingapositiveworkenvironment.Systemperformanceandsecurity$0GRI415-1Descriptionofpoliciesandpracticesrelating$109,000GRI415-1tobehavioraladvertisinganduserprivacyVMwareCloudTrustCenterGRI418-1TC-SI-220a.1Principle1ESGIMPACTREPORT2023GRI418-1VMwarebelievesthatprotectingpersonaldataiscriticaltobuildingtrustedrelationshipswithbothcustomersTC-SI-220a.1andemployees,aswellasforpromotinginnovation.VMware’sdedicatedGlobalPrivacyteamworksacrosstheorganizationtodeliverpragmatic,creative,andscalableprivacysolutionstoprotectourcustomersandtheirinfrastructuresaswellasourown.Tohelpproactivelyidentifyandmitigateprivacy-relatedissues,theGlobalPrivacyteamhasimplementedaPrivacyReviewprocessthatiscompletedwhenteamsareimplementingorupdatingbusinessprocesses,applicationsorservicesthatwillprocesspersonaldata.Inaddition,weregularlyreviewourprivacystrategyagainstemerginglegalrequirementsandregulatoryguidancetodefineandembedprivacycontrolsthatmeetbothourcustomers’andinternalstakeholders’expectations,andtoimplementbest-in-class,cross-borderdatatransfermechanisms.PleaseviewourPrivacyNoticeandVMwarePrivacyProgramwebpagetolearnmore.57ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTIONVMwarepromptlyandregularlydisclosespubliclyknownvulnerabilitiesthatareexploitableTC-SI-230a.2GOVERNANCE(CONTINUED)inoneormoresupportedproductsandarecriticalandimportantinseverity.DATAPRIVACYANDSECURITY(CONTINUED)TC-SI-550a.2Wehavearigorousprograminplacethatactivelyidentitiesandaddressessecuritythreats.Oncea58Descriptionofapproachtoidentifyingandvulnerabilityisidentifiedinanyoftheproductsofourproductportfolio,ourteamswillseetoitsremediation.addressingdatasecurityrisks,includingInadditiontoourinternalsecurityoperations,VMwarecollaboratescloselywiththesecurityresearchuseofthird-partycybersecuritystandardscommunitytotracksecurityissues.VMwaremakesregulardisclosureofexploitableidentifiedvulnerabilitiesatVMwareSecurityAdvisories(VMSA).DescriptionofbusinesscontinuityrisksrelatedtodisruptionofoperationsVMwareisactiveinthebroadersoftwareindustrysecuritycommunity,becominganearlymemberoftheBuildingSecurityInMaturityModel(BSIMM)in2009andamemberofSAFECodein2014,anorganizationdrivingsecurityandintegrityinsoftwareproductsandsolutions.VMwareisdeeplyinvestedinopensourcesoftware(OSS)security.Notonlydowecontributetosomeoftheworld’smostimportantOSSprojects,butwealsomakecontributionsinmanyways,includingourparticipationinorganizationssuchastheOpenSourceSecurityFoundation(OpenSSF)andCloudNativeComputingFoundation(CNCF)fromtheLinuxFoundation.Risksrelatedtorapidclimatechange,suchasextremeweatherconditions,sea-levelrise,drought,floodingandwildfires,mayhaveanincreasinglyadverseimpactonourbusinessandthoseofourcustomers,partnersandvendorsinthelongerterm.Accesstocleanwaterandreliableenergyinthecommunitieswhereweconductourbusiness,whetherforouroffices,datacenters,vendors,customersorotherstakeholders,isapriority.Anyofourprimarylocationsmaybevulnerabletotheadverseeffectsofclimatechangeandtheimpactsofextremeweatherevents,whichhavecausedregionalshort-termsystemicfailuresintheU.S.andelsewhere.Forexample,ourCaliforniaheadquartersisprojectedtobevulnerabletofuturewaterscarcityduetoclimatechange,andunanticipatedextremecoldweatherhasresultedinelectricalgridoutagesinTexaswheremanyofourU.S.employeesarelocated.Whilethisdangercurrentlyhasalow-assessedriskofdisruptingnormalbusinessoperationsinthenearterm,ithasthepotentialtoimpactemployees’abilitiestocommutetoworkortoworkfromhomeandstayconnectedeffectively.Climate-relatedeventsandtheirpotentialtoincreasepoliticalinstabilityinregionswherewe,ourcustomers,partnersandourvendorsdobusiness,havethepotentialtodisruptourbusiness,ourthird-partysuppliers,orthebusinessofourcustomersandpartnersandmaycauseustoexperiencehigherattritionandadditionalcoststomaintainorresumeoperations.ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTION38,300GRI102-7Principle1,6SOCIALVMwareBenefitsWORKFORCEINDICATORSVMwareDiversity,EquityandInclusionGRI401-2TC-SI-330a.3Numberofemployees1645.1%TC-SI-330a.3Benefitsprovidedtofull-timeemployeesthatarenot35.2%GRI102-7TC-SI-330a.3providedtotemporaryorpart-timeemployees19.8%GRI102-7TC-SI-330a.3CommitmenttoDiversityandInclusion70.2%Men;29.8%WomenGRI102-7Regionalemployees(AMER%)70.2%Men;29.8%WomenGRI102-8TC-SI-330a.3Regionalemployees(APAC%)69.5%Men;30.5%WomenGRI102-8TC-SI-330a.3Regionalemployees(EMEA%)71.3%Men;28.7%WomenGRI102-8TC-SI-330a.3Globalgenderdiversity21.7%GRI102-8Regionalgenderdiversity,AMER64.0%GRI405-159Regionalgenderdiversity,APJ14.2%GRI405-1Regionalgenderdiversity,EMEA38.4%GRI405-1Regularemployeesunder31yearsold53.9%GRI401-1Regularemployees31-50yearsold7.7%GRI401-1Regularemployeesover50yearsold4.8%GRI401-1TotalNewHires-under31yearsold31.3%GRI405-1TotalNewHires-31-50yearsold53.6%GRI405-1TotalNewHires-over50yearsoldGRI405-1U.S.–African-American/BlackU.S.–AsianU.S.–Caucasian/WhiteESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTION7.6%GRI405-1TC-SI-330a.3SOCIAL(CONTINUED)2.1%GRI405-1TC-SI-330a.3WORKFORCEINDICATORS(CONTINUED)0.6%GRI405-1TC-SI-330a.3U.S.-Hispanic/Latinx3.4%U.S.–Multiracial10.4%TC-SI-330a.3U.S.–Other176.7%DifferentlyAbled18LGBTQ+19Thepercentagesofgenderandracial/ethnicgrouprepresentationbyemployeetype,includingmetricsVeterans20reflectingintersectionality,areprovidedonpages29-32ofour2023DEIReport.Percentageofgenderandracial/ethnicgrouprepresentationformanagement,technicalstaff,AtVMware,womenearn99%oftheirmalecounterparts’salaryglobally.GRI405-2andallotheremployeesGRI405-2RatioofbasicsalaryandremunerationVMwareiscommittedtolookingatourdataacrosskeydemographicgroupsandclosingthegapsbetweenofwomentomenmajorityandunderrepresentedgroups.WehavesetspecificandmeasurableannualgoalstoincreasethediversityofourworkforceandimprovetherepresentationofunderrepresentedgroupsintheU.S.WealsoProcessfordeterminingremunerationinnovatetocreatenewexperiencestoidentify,expandandsupportthepoolofunderrepresentedtalentacrossthetechnologyindustry.Moreinformationaboutourrelevantpoliciesandprogramstofosterequitableemployeerepresentationcanbefoundinour2023DEIReport.ESGIMPACTREPORT202360ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTION18,281GRI404-2Principle6SOCIAL(CONTINUED)Principle6TALENTDEVELOPMENT14,278GRI404-2TotalnumberofemployeeswhoattendedGRI404-3aProfessionalDevelopmentprogramVMwarebelievesthatbyinnovatingnewperformancenorms,wenotonlybuildstrongerhumanrelationshipsTotalnumberofemployeeswhoattendedandimprovecommunicationbetweenemployeesandmanagers,butwealsoensurewestayagileandTC-SI-330a.2aResearchandDevelopmenttrainingresponsivetothechangesthatnaturallyoccurinthebusinessenvironment.Tothisend,weencouragecareerdevelopmentgoalsettingandconversationsthroughouttheyear.Employeesreceivingregularperformanceandcareerdevelopmentreviews58%Employeeengagement2125EmployeeNetPromoterScore(NPS)$17,956,000COMMUNITYENGAGEMENT$7,511,000TotalVMwareFoundationgrants110,500VMwarematchinggifts33,137EmployeeservicelearninghoursNumberofemployeeswhoparticipated85%incharitableactivities15,166Percentageofemployeeswhoparticipated$10,868,250incharitableactivitiesNumberofglobalnonprofitssupportedTotalVMwareUniversityResearchFund(VMURF)grantsESGIMPACTREPORT202361ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTIONBusinessConductGuidelinesGRI412-1PrincipleSOCIAL(CONTINUED)VMwareResponsibleSourcingGRI414-11,4,5,6HUMANRIGHTS$67,800,000Principle6CommitmenttoethicalconductVMwareSupplierCodeofConductGRI414-1CommitmenttosupplierdiversityVMwarePartnerCodeofConductGRI414-1PrincipleDiversesupplierspend(U.S.)221,3,4,5,6SuppliercodeofconductPrinciplePartnercodeofconduct1,3,4,5,6ESGIMPACTREPORT202362ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCPrinciple8DESCRIPTION397,008MTCO2eGRI305ENVIRONMENTAL3,650MTCO2eGRI305-10MTCO2eGHGEMISSIONS60,380MTCO2eGRI305-2TotalGHGemissions23844MTCO2e392,515MTCO2eGRI305-2•Scope1:Directemissionsfrom44,210MTCO2eowned/controlledoperations2425,815MTCO2eGRI305-2190,576MTCO2e•Scope2:Indirectemissionsfrom62,933MTCO2eGRI305-3theuseofpurchasedelectricity(market-based)2568,981MTCO2eGRI305-3GRI305-3•Scope2:Indirectemissionsfromtheuse0.06MTCO2e/millionUSDrevenueGRI305-3ofpurchasedelectricity(location-based)261.58MTCO2e/employeeGRI305-30.63MTCO2e/1,000sqft•Scope2:IndirectemissionsfromtheGRI305-4useofpurchasedcooling(market-based)82percentreductionachievedGRI305-444percentreductionachievedGRI305-4•TotalScope3emissions50percentreductionachievedGRI305-5•Scope3:Businesstravel27•Scope3:Employeecommuting2863•Scope3:Purchasedgoodsandservices•Scope3:Capitalgoods•Scope3:Other29GHGemissionsintensityrevenuemetric30GHGemissionsintensityemployeemetric31GHGemissionsintensitysquarefootagemetric32Progressagainstourscience-basedemissionreductiontargets.By2030,VMwareiscommitted:33•Toreduceourscope1and2emissionsby50%fromafiscalyear2019(FY19)baseline•Toreduceabsolutescope3GHGemissionsfromfuel-and-energy-relatedactivities50%fromaFY19baseline•Toreduceabsolutescope3GHGemissionsfrom•employeecommuting50%fromaFY19baselineESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTIONDiscussionoflow-carbonproductsinVMware'sCDPClimateChangeQuestionnaire2022GRI102-15,201-2Principle8,9ENVIRONMENTAL(CONTINUED)(Module4-TargetsandPerformance)Principle7STRATEGYANDMANAGEMENTVMwareCDPClimateChangeQuestionnaire2022TC-SI-130a.3EnvironmentalimpactofVMwareproducts(Module1-Governance,Module2-RisksandOpportunities&Module3-BusinessStrategy)Climatestrategy,management,risksandSustainabilitycriteriacoveringcleanenergy,waterande-wasteareincludedintheevaluationmatrixofouropportunitiescolocationdatacenterlocationstrategy.Inaddition,ourRE100commitmentincludesourcolocationfootprint.Discussionoftheintegrationofenvironmentalconsiderationsintostrategicplanningfor179,537MWhGRI302-1TC-SI-130a.1Principle8datacenterneeds179,537MWhGRI302-1TC-SI-130a.1ELECTRICITYPrinciple8Electricitypurchased3493,271MTCO2eGRI302-1Principle8Totalrenewableenergypurchased86,266MTCO2eGRI302-1Principle8•TotalEnergyAttributeCredits(EACs)purchased100.00%GRI302-1•Renewableenergypurchased(excludingEACs)29kWh/sqftGRI302-3TC-SI-130a.1Principle8VMware2022CDPClimateChangeresponse;SectionC4.3GRI302-4Principle8Percentageofrenewableenergyglobally29.06%GRI302-1ElectricityintensitysquarefootagemetricReductionofenergyconsumptionPercentageofgridelectricity35ESGIMPACTREPORT202364ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCPrinciple8DESCRIPTION498GRI306-2ENVIRONMENTAL(CONTINUED)377GRI306-2WASTE31GRI306-2Wastegeneration(tons)89GRI306-2Recycling(tons)82%Compost(tons)44%GRI306-2Principle8Landfill(tons)GRI306-2Landfilldiversionrate45MTWasteprogramscoverage(percentageofglobal100%GRI303-5TC-SI-130a.2squarefootage)E-WASTE32%TC-SI-130a.2Totale-wastegeneratedglobally(MT)46%65Totale-wasteprocessedatR2certifiedfacilities22%(percentageoftotale-wastegenerated)E-wastedisposalbyregion(%)138,876,047gallonsAMER66%APJincludingIndiaVMwaredoesnothavesignificantwithdrawalsfromfreshwatersources.EMEAWATERWaterconsumedWaterconsumptioncoverage(percentageofglobalsquarefootage)Totalwaterwithdrawninm³ESGIMPACTREPORT2023ESGStrategySustainabilityEquityTrustEESSGPerformanceESGData(Continued)FY23GRISASBUNGCDESCRIPTION20Principle8ENVIRONMENTAL(CONTINUED)45%BUILTENVIRONMENT1.29GRI302-3TC-SI-130a.1LEEDcertifications6,144(inthousands)Percentageofsquarefootageingreenbuildingcertifiedspace36VMwareengagesallsupplierswithaddressablespendofmorethan$1millionaspartofoursupplierGRI102-9,308-1Principle8Wenatcheedatacenterengagementprogram,asthisnumbertypicallymakesupbetween85percentand90percentofourspendGRI102-9,308-1Principle8powerusageeffectiveness(PUE)37coverage.Wehaveagoaltoreach75percentofsuppliers(byspend)withscience-basedtargetsbyendofPortfolioSquareFootagefiscalyear2025,andwetargetalargersuppliergroupknowingthatwewillnotachieve100percentSUPPLYCHAINcompliance.Engagementwithsupplychainonclimateissues52%Science-BasedTarget:75percentofVMware’ssuppliers(byspend)willsetorcommittosetscience-basedtargetsbytheendofFY25ESGIMPACTREPORT202366ESGStrategySustainabilityEquityTrustEESSGPerformanceEndnotes14OurmostrecentESGmaterialityassessmentwascompletedinfiscalyear26TheseScope2emissionsincludeelectricityconsumedinglobaloperations2020,consistentwithcurrentdouble-materialityassessmentpractices.Wesourcedfromlocalgridspriortotheredemptionofpurchasedcontractual1AV-Comparatives.“BusinessSecurityTest2022(March–June).”July10,2022.assessedtopicsbasedontheirimpactontheenvironment,societyandtoinstruments.2Thispercentagetakesintoaccountrenewableenergyinstrumentspurchasedenterprisevalue,withconsiderationforESGreportingframeworksandESGbyVMware.topicsidentifiedbyourindustrypeers.Theassessmentinvolvedseveralofour27A60percentupliftaviationimpactfactorisconsideredthisyeartoaccount3RE100isaglobalinitiativebringingtogethertheworld’smostinfluentialkeyinternalandexternalstakeholders,includingexecutives,employeesandforradiativeforcing-ameasureoftheadditionalenvironmentalimpactofairbusinessescommittedto100percentrenewableelectricity.customers.travel,includingthingslikeemissionsofnitrousoxidesandwatervaporwhen4MinistryofTransportandCommunicationsofFinland.“Thetwofacesoftheemittedathighaltitude.Emissionsfromrail,carrental,corporatejet,personalICTsector:consumingenergyandmaterialswhilealsopavingthewaytoa15VMwarePACcontributiondataisforcalendaryear2022anddoesnotmileage,hotel,andtaxi/cabwereconsideredinadditiontoairtravel.carbon-neutralsociety.”June15,2020.includebankfeesormiscellaneousrefunds.5“OnGlobalElectricityUsageofCommunicationTechnology:Trendsto28Employeecommutecalculationincludesemissionsfromremoteworking,but2030.”AndersS.G.AndraeandTomasEdler.2015.16AsofFebruary3,2023,weemployedapproximately38,300employeesexcludescommutingandremoteworkingemissionsforcontingentworkers.6Bloomberg."ArtificialIntelligenceIsBooming—SoIsItsCarbonFootprint.”locatedin59countries,approximately15,000ofwhomworkintheU.S.JoshSaulandDinaBass.March9,2023.29OthercategoriesincludeFuel-andEnergy-RelatedActivities,Upstream7UnderrepresentedgroupsincludeLGBTQIA+,gendernonbinary,peoplewith17"U.S.—Other"includesAmericanIndian,AlaskaNative,NativeHawaiian,TransportationandDistribution,WasteGeneratedinOperations,Upstreamdisabilities,andveteran/militaryveteranstatus.andPacificIslander.LeasedAssetsandUseofSoldProduct(addedinFY23).8UnderrepresentedminoritiesincludeU.S.AfricanAmericans/Blacks,U.S.AmericanIndians/AlaskaNatives,U.S.Hispanics/Latinos,andU.S.Native182021and2022differentlyableddatawasU.S.onlydatacollectedinour30Revenueintensity=Scope2(market-based)/revenue(inmillions).Hawaiians/PacificIslanders.HCMS.2023dataincludesallcountrieswiththeabilitytoidentifytheirdisability92021dataisglobaldatacollectedthroughanannualemployeeengagementstatus(U.S.,Canada,Brazil,Japan,China,Korea,Taiwan,India,HongKong,31Employeeintensity=Scope2(location-based)/employeecount.surveythatwasdiscontinuedafter2021.2022dataisU.S.-onlydataandAustralia,Singapore,IrelandandU.K.).collectedinourhumancapitalmanagementsystem(HCMS)sincelateFY21.32Floorspaceintensity=Scopes1&2(market-based)/squarefootage(in2023dataincludesallcountrieswiththeabilitytoidentifytheirLGBTQIA+192021"LGBTQ+"datawasgloballycollectedthroughanannualEmployeethousands).status(U.S.,Australia,India,Japan,Singapore,IrelandandU.K.).EngagementSurveythatwasdiscontinuedafter2021.2022datawasU.S.only102021and2022disabilitydataisU.S.-onlydatacollectedinourHCMS.2023andcollectedinourHCMSsincelateFY21.2023dataincludesallcountries33ReportingofourSBTprogressreflectstheabsolutepercentagereductiontodataincludesallcountrieswiththeabilitytoidentifytheirmilitarystatusinourwiththeabilitytoidentifytheirLGBTQ+status(U.S.,Australia,India,Japan,datefromourfiscalyear2019baseline.HCMS(U.S.,Australia,India,Japan,Singapore,IrelandandU.K.).Singapore,IrelandandU.K.).112021and2022dataisU.S.onlydatacollectedinourHCMS.2023data34IncludesVMwarefacilitiesandcolocationdatacenters.includesallcountrieswiththeabilitytoidentifytheirdisabilitystatus(U.S.,202021dataisglobaldatacollectedthroughanannualemployeeengagementCanada,Brazil,Japan,China,Korea,Taiwan,India,HongKong,Australia,surveythatwasdiscontinuedafter2021.2022dataisU.S.-onlydataand35ThetransferoftheWenatcheedatacenterfromVMwarecontroltoaSingapore,IrelandandU.K.).collectedinourHCMSsincelateFY21.2023dataincludesallcountrieswiththecolocatedfacilityinApril2022increasedthepercentageofFY23grid12MinistryofCorporateAffairs,GovernmentofIndia.“CompendiumonabilitytoidentifytheirLGBTQIA+status(U.S.,Australia,India,Japan,electricityfromthepreviousfiscalyear.CorporateSocialResponsibilityinIndia.”Singapore,IrelandandU.K.).13InternationalInformationSystemSecurityCertificationConsortium.“(ISC)236IncludesVMwareleasedofficespacewithinbuildingsthathavebeenCybersecurityWorkforceStudy2022”October2022.212021and2022dataisU.S.-onlydatacollectedinourHCMS.2023dataLEED/BREEAMcertifiedbyanotherparty.TotalsquarefootageofrealestateincludesallcountrieswiththeabilitytoidentifytheirmilitarystatusinourHCMSportfoliois6,144,807squarefeet.ESGIMPACTREPORT2023(U.S.,Australia,India,Japan,Singapore,IrelandandU.K.).”37TheWenatcheedatacenterisnolongerunderVMwarecontrol22AsoftheendofFY23,VMwarespentacumulativemorethan$300millionasofApril1,2022.withdiversebusinessessincefiscalyear2021.23TotalGHGemissionscalculationincludesScope1andScope2market-basedemissionsforouroperationsandScope3emissionsforourvaluechain.24Scope1emissionsincludesnaturalgas,diesel,vehicle,andcorporatejetfuelcombustionplusrefrigerantemissions.25TheseScope2emissionsfrompurchasedelectricityincludeVMwareofficesandITequipmentusedinourcolocationdatacenters;bothofwhicharecoveredunderourRE100commitment.ThiswasdoneinaccordancewiththeFutureofInternetPowerbestpractices.67ESGStrategySustainabilityEquityTrustEESSGPerformanceAdditionalInformationDefinitiveAgreementtoBethebusinesspriortoandafterthecompletionofthependingAcquiredbyBroadcomacquisitionandrealizesynergies;VMware’sabilitytoenterinto,OnlineContentmaintainandextendstrategicallyeffectivepartnerships,VMwarehasenteredintoadefinitiveagreementtobeacquiredbycollaborationsandalliances,maintainandestablishnewVMwareESGwebpage:BroadcomInc.(Broadcom).Thetransaction,whichisexpectedtorelationshipswithcustomers,partnersandsuppliers,andmaintainvmware.com/company/esgbecompletedinBroadcom'sfiscalyear2023,issubjecttotheVMware’sbusinessgenerally;difficultiesinretainingandhiringkeyreceiptofregulatoryapprovalsandothercustomaryclosingpersonnelandemployees;disruptionsresultingfromkeyVMware’sjourneytonetzero:conditions.PleaserefertotheMay26,2022announcementmanagementchanges;theimpactoftheCOVID-19pandemic,andvmware.com/company/net-zeroentitled,“BroadcomtoAcquireVMwareforApproximately$61otherpublichealthcrisis,onVMware,customers,thebusinessBillioninCashandStock,”availableonnews.vmware.com.environment,andglobalandregionaleconomies;theabilityofVMwareDEIwebpage:VMwaretotransitionitsbusinessmodelandadaptitsofferings,vmware.com/company/diversityForward-lookingStatementsbusinessoperationsandgo-to-marketactivitiestochangesinhowcustomersconsumeinformationtechnologyresources;theVMwareInvestorRelations:Thisreportcontainsforward-lookingstatements.Allstatementscontinuedriskofon-goingandnewlitigationandregulatoryir.vmware.comotherthanstatementsofhistoricalfactcouldbedeemedforward-actions;rapidtechnologicalchangesintheindustriesinwhichlookingstatementsandwordssuchas“expect,”“anticipate,”VMwarecompetes,theuncertaintyofVMware’scustomers’Contact“target,”“goal,”“project,”“intend,”“plan,”“believe,”“seek,”acceptanceofandabilitytotransitiontoemergingtechnologies“estimate,”“continue,”“potential,”“future,”“will,”“may,”andnewofferingsandcomputingstrategies,aswellasotherVMwareinvitesstakeholderstoprovidefeedbackon“should,”“could,”“depend,”“predict,”andvariationsorthecompetitivefactorsincludingnewproductandmarketinginitiativesthetopicscoveredinthisreportandonourwebsite.negativeexpressionofsuchwordsandsimilarexpressionsarebyVMware’scompetitors;VMware’sabilitytoprotectitsPleasesubmitquestionsorcommentstotheESGintendedtoidentifyforward-lookingstatements.Forward-lookingproprietarytechnology;changestoproductandservicesOfficeatESG@vmware.comstatementsmadeinthisreportreflectthecurrentviewsofVMwaredevelopmenttimelines;risksassociatedwithcyber-attacks,managementregardingitsoperationsasanindependentpublicinformationsecurityanddataprivacy;adversechangesingeneralTrademarkscompanyanddonottakeintoaccountpotentialchangesineconomicormarketconditions;risksassociatedwithinternationalVMware’sbusinessandoperationsfollowingcompletionofthesales;changesinVMware’sfinancialcondition;othereventsandVMware,VMinclusion,VMwareAria,VMwarependingacquisitionbyBroadcom.Forward-lookingstatements,trendsonanational,regionalandglobalscale,andotherimpactsWorkspaceONE,VMwareCarbonBlack,VMwareincluding,butnotlimitedto,statementsregardingtheobjectivesoftoVMware’sbusiness,includingthoserelatedtoindustry,market,AnywhereWorkspace,VMwareContexa,VMwareour2030Agenda,ourprogramstofurtherdiversity,equityandeconomic,political,regulatoryandglobalhealthconditions.TheseNSX,VMwareTanzu,VMwareCloudDirector,andinclusion,andourESG-relatedplans,goals,efforts,investmentsforward-lookingstatementsaremadeasofthedateoftheVMwarevSphereareregisteredtrademarksorandsimilar,andthebenefitsofthesametoVMwareanditspublicationofthisreport,arebasedoncurrentexpectationsandtrademarksofVMware,Inc.oritssubsidiariesinthestakeholders,inthisreportinvolverisksanduncertaintiesthatarearesubjecttouncertaintiesandchangesincondition,significance,UnitedStatesandotherjurisdictions.AllothermarksoutsideVMware’scontrolandmaycauseactualresultstodiffervalueandeffectaswellasotherfactorsandrisksdetailedinandnamesmentionedhereinmaybetrademarksofmateriallyfromthoseprojectedbyforward-lookingstatements,documentsfiledwiththeSEC,includingVMware’smostrecenttheirrespectiveorganizations.includingbutnotlimitedto:theabilitytoconsummatethependingreportsonForm10-KandForm10-QandcurrentreportsonFormacquisition,onatimelybasisoratall;businessdisruptionfollowing8-KthatVMwaremayfilefromtimetotime,whichcouldcauseESGIMPACTREPORT2023theannouncementofthependingacquisition;theabilitytoactualresultstovaryfromexpectations.VMwareassumesnoimplementplans,forecastsandotherexpectationswithrespecttoobligation,anddoesnotcurrentlyintend,toupdateanysuchforward-lookingstatementsafterthedateofthisreport’srelease.68ESGStrategySustainabilityEquityTrustESGPerformanceMakingtheImpossiblePossibleInthelate1990s,VMwarecommissionedacollectionofartbyPaulD.Gibsontorepresent“makingtheimpossiblepossible”throughvirtualizationtechnology.Thisinnovationsentimentstillholdstruetodayasamulti-cloudcompany,andwecelebratethatit’sVMwarepeoplethatmakeitpossible,includingbuildingamoresustainable,equitableandsecurefuture.vmware.com/company/esgCopyright©2023VMware,Inc.Allrightsreserved.VMware,Inc.3401HillviewAvenuePaloAltoCA94304USATel877-486-9273Fax650-427-5001VMwareandtheVMwarelogoareregisteredtrademarksortrademarksofVMware,Inc.anditssubsidiariesintheUnitedStatesandotherjurisdictions.Allothermarksandnamesmentionedhereinmaybetrademarksoftheirrespectivecompanies.VMwareproductsarecoveredbyoneormorepatentslistedatvmware.com/go/patents.ItemNo:VMware2023ESGReport7/23ESGIMPACTREPORT2023

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