Description

FY20

GRI

SASB

UNGC

Governance structure

Corporate Governance Guidelines

GRI 102-18

Executive-level responsibility for economic, environmental, and social topics

VMware’s Sustainability Strategy is led by the Vice President of Sustainability Strategy.

GRI 102-20

Total Executive and Non- Executive Board Members

9

GRI 102-22

Board Gender Diversity

22%

GRI 102-22, 405-1

Composition of the highest governance body and its committees

Corporate Governance Guidelines

GRI 102-22

Chair of the highest governance body

Corporate Governance Guidelines

GRI 102-23

Nominating and selecting the highest governance body

Corporate Governance Guidelines

GRI 102-24

Conflicts of interest

Corporate Governance Guidelines

GRI 102-25

Role of highest governance body in setting purpose, values, and strategy

Corporate Governance Guidelines

GRI 102-26

Evaluating the highest governance body’s performance

Corporate Governance Guidelines

GRI 102-28

Communicating critical concerns

Corporate Governance Guidelines

GRI 102-33

List of material topics

Data Privacy & Security, Digital Ethics, Product Stewardship & Design, Climate Resilience & Adaptation, Energy & GHG Emissions, Civic Engagement & Public Policy, Community Engagement, Digital Skills & Training, Human Capital, Inclusion & Equal Opportunity, Supply Chain Responsibility, Business Oversight & Transparency

GRI 102-47

External assurance

VMware is responsible for the preparation and integrity of the information in this report. VMware engaged Apex as an independent third party to review our FY20 Greenhouse Gas (GHG) inventory and energy consumption, and received limited assurance of its accuracy and completeness. The scope of this review, included in this report, includes our global Scope 1 and Scope 2 GHG emissions, Scope 1 and 2 energy consumption and Scope 3 GHG emissions related to business travel. The rest of this report has not been externally assured by an independent third party.

GRI 102-56

Code of conduct

Business Conduct Guidelines

GRI 102-16

Principle 10

Percentage of employees who completed Business Conduct Guidelines training

100%

GRI 102-16

Principle 10

Mechanisms for advice and concerns about ethics

VMware Ethics Helpline

GRI 102-17

Data Privacy & Security

System performance and

VMware Cloud Trust Center

GRI 418-1

TC-SI220a.1

Principle 1

Description of policies and practices relating to behavioral advertising and user privacy

VMware Global Impact Report FY20, Section: Data Privacy & Security

GRI 418-1

TC-SI- 220a.1

Description of approach to identifying and addressing data security risks, including use of third-party cybersecurity standards

VMware Global Impact Report FY20, Section: Data Privacy & Security

TC-SI230a.2

Description of business continuity risks related to disruption of operations

VMware Global Impact Report FY20, Section: Business Continuity & Enterprise Resilience

TC-SI550a.2

Public Policy

Company political contributions

0

GRI 415-1

VMware PAC contributions1

$77,500

Description

FY20

GRI

SASB

UNGC

Workforce Indicators

Number of employees

31,000

GRI 102-7

Benefits provided to full- time employees that are not provided to temporary or part-time employees

https://careers.vmware.com/benefits

GRI 401-2

Commitment to Diversity & Inclusion

https://www.vmware.com/company/diversity.html

Principle 1,6

Regional employees (AMER %)

52%

GRI 102-7

Regional employees (APJ

%)

31%

GRI 102-7

Regional employees (EMEA %)

17%

GRI 102-7

Global gender diversity

26%

GRI 102-8

TC-SI- 330a.3

Regional gender diversity, AMER

27%

GRI 102-8

TC-SI- 330a.3

Regional gender diversity, APJ

25%

GRI 102-8

TC-SI- 330a.3

Regional gender diversity, EMEA

25%

GRI 102-8

TC-SI- 330a.3

Regular employees under 30 years old

18%

GRI 405-1

Regular employees 30-50 years old

70%

GRI 405-1

Regular employees over 50 years old

13%

GRI 405-1

Total New Hires - under 30 years old

31%

GRI 401-1

Total New Hires - 30-50 years old

58%

GRI 401-1

Total New Hires - over 50 years old

11%

GRI 401-1

U.S. - African-American/ Black

3.2%

GRI 405-1

TC-SI- 330a.3

U.S. - Asian

31.1%

GRI 405-1

TC-SI- 330a.3

U.S. - Caucasian/White

57.6%

GRI 405-1

TC-SI- 330a.3

U.S. - Hispanic/LatinX

5.8%

GRI 405-1

TC-SI- 330a.3

U.S. - Multiracial

< 1%

GRI 405-1

TC-SI- 330a.3

U.S. - Other

< 1%

GRI 405-1

TC-SI- 330a.3

People with disabilities (U.S.)

3.0%

LGBTQ (Global)

3.0%

Veterans (U.S.)

4.6%

Ratio of basic salary and remuneration of women to men

At VMware, women earn 99% of their male counterparts’ salary globally, and racial and ethnic minority employees earn 100% of their white counterparts in the U.S.

GRI 405-2

Process for determining remuneration

We continually analyze compensation globally, accounting for multiple factors that influence pay such as tenure, geographic location and performance. Our most recent data analysis, done by a third party,

shows that at VMware, women earn 99% of their male counterparts’ salary globally and racial and ethnic minority employees earn 100% of their white counterparts in the U.S. We are proud of these results and are strongly committed to pay equity and equal opportunity across gender

and racial lines.

GRI 405-2

Talent Development

Total number of employees who attended a Professional Development program

15,087

GRI 404-2

Principle 6

Total number of employees who attended an R&D training

13,325

GRI 404-2

Principle 6

Employees receiving regular performance and career development reviews

VMware believes that by innovating new performance norms, we not only build stronger human relationships and improve communication between employees and managers, we also ensure we stay agile and responsive to the changes that naturally occur in the business environment. To this end, we encourage career development goal setting and conversations throughout the year. In 2019, 64% of employees were appraised based on management by objectives; 50% were appraised based on a multidimensional approach (e.g., 360 degree feedback), and; 96% of our managers completed our talent planning process.

GRI 404-3

Employee engagement2

66%

Employee Net Promoter Score (NPS)3

Community Engagement

Total VMware Foundation grants

$15,861,000

VMware matching gifts (included in total above)

$5,170,000

Employee service learning hours

128,623

Number of employees who participated in charitable activities

22,113

Percentage of employees who participated in charitable activities

74%

Number of global nonprofits supported

10,065

Total VMware University Research Fund (VMURF) grants

$6,406,131

Human Rights

Commitment to ethical conduct

Business Conduct Guidelines

GRI 412-1

Principle 1,4,5,6

Commitment to supplier diversity

https://www.vmware.com/company/supplier-diversity.html

GRI 414-1

Principle 6

Diverse supplier spend (U.S.)

$139,000,000

Supplier code of conduct

Supplier Code of Conduct

GRI 414-1

Principle 1,3,4,5,6

Partner code of conduct

Partner Code of Conduct

GRI 414-1

Principle 1,3,4,5,6

Description

FY20

GRI

SASB

UNGC

Strategy & Management

Environmental impact of VMware products

IDC White Paper, sponsored by VMware, Enabling More Agile and Sustainable Business Through Carbon-Efficient Digital Transformations, August 2020

Principle 8, 9

GHG emissions avoided by VMware products

152,000,000 MT CO2e

Principle 8, 9

Climate strategy, management, risks and opportunities

2020 CDP Climate Change Disclosure

GRI 102-15,

201-2

Principle 7

GHG Emissions

GHG emissions

458,479 MT CO2e

GRI 305

Scope 1: Direct emissions from owned/controlled operations

5,501 MT CO2e

GRI 305-1

Scope 2: Indirect emissions from the use of purchased electricity (market-based⁴)

9,955 MT CO2e

GRI 305-2

Scope 3: Business air travel

71,711 MT CO2e

GRI 305-3

Scope 3: Employee commuting

39,685 MT CO2e

GRI 305-3

Scope 3: Purchased Goods & Services

255,754 MT CO2e

GRI 305-3

Scope 3: Capital Goods

59,796 MT CO2e

GRI 305-3

Scope 3: Other⁵

16,077 MT CO2e

GRI 305-3

Scope 2: Indirect emissions from the use of purchased electricity (location-based)

71,896 MT CO2e

GRI 305-2

GHG emissions intensity revenue metric⁶

0.92 MT CO2e/revenue

GRI 305-4

GHG emissions intensity employee metric⁷

2.32 MT CO2e/employee

GRI 305-4

GHG emissions intensity square footage metric⁸

2.49 MT CO2e/1,000 Sq Ft

GRI 305-4

Reduction of GHG emissions

In 2019, we achieved a 65% decrease in our emissions intensity over the adjusted prior year (2018)— alongside 12% revenue growth. This is an 80% decrease from our base year, surpassing our 10%

reduction goal.

GRI 305-5

Electricity

Electricity purchased⁹

156,144 MWh

GRI 302-1

TC-SI- 130a.1

Total renewable energy purchased

156,144 MWh

GRI 302-1

Principle 8

Total Energy Attribute Credits (EACs) purchased

51,435 MWh

GRI 302-1

Principle 8

Renewable energy purchased (excluding EACs)

104,709 MWh

GRI 302-1

Principle 8

Percentage of renewable energy globally

99.6%

GRI 302-1

Principle 8

Energy intensity square footage metric

33 kWh/Sq Ft

GRI 302-3

Reduction of energy consumption

2020 CDP Climate Change disclosure; Section C4.3

GRI 302-4

Principle 8

Water

Water consumed

134,929,077 (gallons)

GRI 303-1

TC-SI- 130a.2

Water consumption coverage (percentage of global square footage)

36%

Built Environment

LEED certifications

19

Percentage of square footage in green building certified space¹⁰

35%

Wenatchee Data Center Power Usage Effectiveness (PUE)

1.28

GRI 302-3

TC-SI- 130a.1

Portfolio Square Footage

6,211 (in thousands)

Supply Chain

Engagement with supply chain on climate related issues

VMware’s supply chain consists of approximately 8,500 total suppliers with approximately 250 of those being our top suppliers (by spend). In 2019, for the second consecutive year, VMware requested data from our top suppliers via CDP Supply Chain. Our supplier participation doubled and we continue to engage our suppliers on their sustainability journeys.

GRI 102-9,

308-1

Principle 8