Etsy’s Climate Impact Plan
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.
We believe reducing greenhouse gas (GHG) emissions is critical to lessening the impacts of climate change and is an important part of being a responsible business. GHG emissions — like carbon — trap heat, while some — like nitrous oxide (N2O) and methane — are pollutants. The build up of these emissions worsens natural disasters and contributes to poor air quality.
That’s why we invest in climate solutions to reduce our own emissions, and promote cleaner air beyond our business – including carbon offset projects to address the emissions we can’t yet avoid.
Etsy invests in climate solutions like electric trucks and carbon offsets for every delivery.
Each year, we measure the shipping and packaging emissions for every delivery on Etsy, as well as from other business activities like our offices and business travel. We then set aside money based on those emissions — at no cost to buyers or sellers — to invest in climate solutions. At the end of each year, we spotlight a selection of supported projects on this page.
Our climate goals
Public goals matter. They help focus our work to reduce our climate impact and hold us accountable. We’ve set two climate-related goals: achieve Net Zero through targets aligned with the science of climate change and maintain best-in-class sustainable operations. This includes sourcing 100% renewable electricity for our offices and for employees working from home.1 You can find more details and track our annual progress in our Annual Report.
How it works:
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Measure:
We track emissions annually, from office energy use to shipping and packaging.
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Reduce:
We target a 5–7% annual emissions cut through operational changes like supplier engagement and energy efficiency initiatives.
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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.
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Support:
With the remaining funds, we support initiatives outside our business that reduce emissions, improve air quality, and strengthen community climate resilience.
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Report:
We publish transparent annual updates, including challenges and lessons learned.
About the Etsy Emissions Budget
Our Emissions Budget is one way we take responsibility for our climate impact. We apply an internal price on the emissions we generate across our marketplace and then we invest those funds in projects that reduce emissions — both within our business and beyond it.
In 2025, we committed approximately $3.5m2 to climate solutions. Below are a few of the solutions we supported.
Climate solutions that reduce our emissions
Electric Trucks
Road freight is Etsy’s largest source of emissions, so we’re investing in cleaner shipping. Etsy joined the Green Market Activation Trucking Coalition and, in 2025, signed a four-year agreement to support the largest known deployment of zero-emission Class 8 trucks in Texas, where millions of Etsy packages ship each year. Over the next few years, 40 electric trucks are expected to run between Houston and Dallas, cutting emissions while reducing air pollution in local communities.
Renewable Electricity
In 2025, we matched 100% of the electricity used in our offices and by employees working from home with renewable energy. We did this by generating solar power at our Brooklyn HQ, supporting a long-term solar project in Virginia, and purchasing renewable energy credits (RECs) to cover electricity used outside the U.S.
Carbon offset projects that reduce emissions and pollution outside our business
Midstate Industrial Process Emissions
Because most Etsy orders travel by road, we support projects that make road construction cleaner. This project reuses old pavement instead of mining new asphalt and stone, creating fewer emissions and reducing pollution across the transportation systems we depend on.
Carboneers SRC India Biochar
Textiles and apparel are a big part of Etsy, but making these products can have a heavy environmental footprint. That’s why we support the Carboneers project. It turns leftover cotton farming waste into biochar instead of burning it, designed to keep carbon stored in the soil and support farming communities in India, a key part of the global textile supply chain.
CarbonCure Concrete
Concrete is a significant source of emissions in the data centers and infrastructure used by cloud computing and AI services powering our marketplace. We help address this by supporting CarbonCure, which permanently embeds captured CO₂ into concrete, lowering its carbon intensity.
Calion Ouachita River Wilderness
This project safeguards native hardwood forests in Arkansas, keeping carbon stored in trees while supporting healthy ecosystems. It also strengthens flood resilience along riverbanks and enables sustainable timber production. These materials can be used for paper-based packaging and wooden goods; both widely used by sellers across the Etsy marketplace.
1 Note that our claims about our sustainability goals reflect our current plans and assumptions and are aspirational in nature rather than guarantees. Despite our best efforts, we may not achieve these goals due to various risks and uncertainties, which we discuss in more detail in our Climate Index.
2 We established this budget using two internal carbon prices. For emissions under our more direct operational control (Scope 1 and 2 as well as Scope 3 business travel), we applied a price of $100 per metric ton. For indirect emissions across our value chain (Scope 3, excluding shipping and packaging), we applied a price of $15 per metric ton. For shipping and packaging emissions, we applied the $15 price to 24.2% of our measured emissions, which reflects Etsy’s share of the transaction (our take rate).
