Etsy’s Climate Impact Plan

October 2025

At Etsy, we’re on a mission to Keep Commerce Human. That means making a positive impact on the lives of our buyers, sellers, and their communities—including taking steps to protect the planet we all call home.

An Etsy employee works on a laptop outside on a terrace surrounded by plants, with the city skyline in the background.
Scientists agree we should reduce greenhouse gas (GHG) emissions to lessen the impacts of climate change. GHG emissions—like carbon—trap heat, while some—like nitrous oxide (N20) and methane—are pollutants. The build up of these emissions exacerbates natural disasters and contributes to poor air quality.

That’s why we’re supporting climate solutions that reduce our emissions footprint and projects that promote cleaner air and cut emissions beyond our business.

Etsy invests in climate solutions like electric trucks and carbon offsets for every delivery.

Every year, we measure the shipping and packaging GHG emissions for every delivery on Etsy as well as from other business activities like our offices and business travel. We then charge ourselves a fee for these emissions—at no cost to buyers or sellers—and create an Emissions Budget to invest the funds in climate solutions. At the end of each year, we report our progress on this page.

Our climate goals

We provide yearly updates on our progress on the following:
Net Zero Emissions by 2040
  • 97% reduction in Scope 3 emissions (e.g. shipping, packaging & procurement) per dollar/ gross profit
  • 90% reduction in absolute Scope 1 & 2 emissions (e.g. offices)
Energy
  • Annually source 100% renewable energy for electricity consumed by our offices and employees working from home
  • 25% reduction in office energy consumption by year end 2025 from a 2016 baseline

A split image of a person unboxing an Etsy candle and two employees working in a sunlit office with plants and views of the Brooklyn Bridge.

How it works:
  1. Measure: We track emissions annually, from office energy use to shipping and packaging.
  2. Reduce: We target a 5–7% annual emissions cut through operational changes like supplier engagement and energy efficiency initiatives.
  3. Invest: We spend at least 25% of our Emissions Budget (see more below) on activities that reduce our emissions like renewable energy for our offices or helping our delivery partners purchase electric trucks.
  4. Support: With the remaining funds, we support initiatives outside our business that improve air quality, strengthen community resilience, and advance global net zero efforts.
  5. Report: We publish transparent annual updates, including challenges and lessons learned.

About the Etsy Emissions Budget

The Emissions Budget is how we take responsibility for our impact. We charge ourselves a fee for the emissions we produce, which is paid from our revenue. A portion of these funds goes to initiatives that directly reduce our emissions-helping us reach our Net Zero goals-while the remainder is invested in carbon offset projects that help cut emissions outside our business.
In 2025, we've committed to allocate:
  • Higher control: $100/ tonne for emissions we have higher control over, including our Scope 1 & 2 emissions, and business travel.1
  • Lower control: $15/ tonne for emissions we have lower control over.2 This is applied on a pro-rata basis for marketplace emissions.3


1Higher control corporate emissions: office natural gas & electricity, business travel


2 Lower control corporate emissions: corporate spend, office waste, employee commuting, remote worker energy, end-user energy usage


3Pro-rata basis for marketplace emissions: Etsy measures 100% of emissions associated with shipping and packaging activity. We apply a $15 fee to Etsy’s take rate (e.g., Etsy revenue/ Etsy GMS) per Climate Label Standard.

We’re committed to being credible and clear

Emissions goals credibility

We’ve aligned with the Science Based Targets Initiative (SBTi) Net Zero standard. SBTi has reviewed and approved our goal.

Emissions measurement credibility

We have a third-party review our data and provide limited assurance.

Emissions budget and investments credibility

We’ve aligned with the Climate Change Project’s Climate Label Certified Standard, which defines a credible price companies should pay for their emissions and the types of activities they should support.

Strategy and claims transparency

We provide updates to our climate work in both our Integrated Report and, going forward, on this page.