May 18, 2021

To our stakeholders:

I am pleased to confirm that The RealReal reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, you will see that our organization remains committed to making the UN Global Compact and its principles part of the strategy, culture and day-to-day operations of our business. We have been and will continue engaging in collaborative projects that advance the broader development goals of the United Nations.

As a note, this Communication on Progress will live on the Social Impact portion of our Investor Relations website, easily accessible to all stakeholders, and will be updated annually each May.

Sincerely,

Julie Wainwright
Founder and CEO

• The RealReal (TRR) is committed to providing employees a safe, suitable, and sanitary work environment. We also aim to protect our employees from all types of harassment and discrimination and take necessary actions to ensure that employees have access to anonymous reporting hotlines should they need to report an incident.
• As a company that builds for the future, we aim to reflect the diversity of our community and the broader global luxury retail industry. We seek to maintain a balance of diversity and representation—including gender, race, national origin, and age—across all levels of The RealReal, including our board, management, and workforce.
• More detailed information on our practices and programing can be found in our Human Rights, Diversity & Inclusion, and Occupational Health & Safety policies on the Social Impact portion of our Investor Relations website.

• In response to the COVID-19 pandemic, we implemented changes that we consider to be in the best interest of our employees, as well as the communities in which we operate, and which comply with government regulations. We have implemented additional safety measures for employees continuing critical on-site work. We believe we have been able to preserve our business continuity without sacrificing our commitment to keeping our employees safe during the COVID-19 pandemic.
• We also recognize the importance of supporting our employee’s overall well-being. To that end, we invested in new company-paid benefit programs in 2020 including, parent programs to support both birth and non-birth parents.
• The RealReal Foundation has also established a scholarship program to assist children of employees who plan to continue their education by attending a college or vocational school program.
• More detailed information on our practices and programing can be found in our Human Rights, Diversity & Inclusion, and Occupational Health & Safety policies on the Social Impact portion of our Investor Relations website.

● 68% female employees
● 49% racially and/or ethnically diverse employees
● 60% female board members as of Feb. 22, 2021
● 20% racially and/or ethnically diverse board members as of Feb. 22, 2021
• Additional measurement information can be found in the ESG Environmental and Societal Factors By The Numbers and Sustainability Accounting Standards Board (SASB) Disclosure documents on the Social Impact portion of our Investor Relations website, as well as in our annual proxy and 10-K filings.

• Consistent with our high standards for social responsibility, we prohibit the use of modern slavery, human trafficking, and forced adult or child labor of any kind. We expect our global vendors and supplier base to uphold all standards of our human rights policy, and monitor supplier violations related to human rights risks.
• We are committed to ensuring the health and safety of all employees and require compliance with all applicable local laws and regulations governing working conditions, working hours, fair wages, and compensation.
• We respect our employees’ rights and support the International Labor Organization’s fundamental conventions. We uphold labor rights including the freedom of association. We also recognize the right to collective bargaining in all regions.
• More detailed information on our practices and programing can be found in our Human Rights and Occupational Health & Safety policies on the Social Impact portion of our Investor Relations website.

• This past summer we launched our first employee engagement survey. All our employees were offered an opportunity to participate, and our senior leaders have since built department-level action plans that focus on employee engagement, incorporating insights from the survey results.
• More detailed information on our practices and programing can be found in our Human Rights and Occupational Health & Safety policies on the Social Impact portion of our Investor Relations website.

• Total out of work days: 382
• Average out of work days: 32
• Modified duty work days: 185
• Average modified work days: 46
• Work-related fatalities: 0
• Occupational diseases: 1
• This past summer we launched our first employee engagement survey. All of our employees were offered an opportunity to participate, of which 75% submitted a response. The survey consisted of 50 questions on which employees were asked to indicate their level of agreement with a statement based on a five-point scale from Strongly Agree to Strongly Disagree and five free-text questions to which employees were asked to write a response. The responses returned an overall favorable engagement score of 66%, 23% neutral and 11% unfavorable.
• Additional measurement information can be found in the ESG Environmental and Societal Factors By The Numbers and Sustainability Accounting Standards Board (SASB) Disclosure documents on the Social Impact portion of our Investor Relations website, as well as in our annual proxy and 10-K filings.

• The RealReal is a thought leader in sustainable luxury, and we seek to promote the recirculation of products across the broader retail industry. We are committed to leading and innovating to create a more sustainable fashion industry in which we partner with luxury brands, consumers, employees and suppliers to raise awareness about the benefits of resale. Our mission to empower consignors and buyers to extend the life cycle of luxury goods translates into measurable environmental savings. In addition to the positive environmental impact of our business model, we aim to increase the eco-efficiency of our operations by promoting sustainable practices across all areas of our business. From pioneering partnerships with luxury brands to internal initiatives to participation in global environmental programs, we take action to reduce our own carbon footprint and advocate for industry-wide sustainability.
• More detailed information on our practices and programing can be found in our Environmental, Climate Change, and Energy, Water & Waste policies on the Social Impact portion of our Investor Relations website, as well as in our CDP response.

• We are committed to managing salient environmental risks in our industry through the
following actions:
● Reduce our energy consumption by focusing on energy efficiency throughout our operations including the use of Google Cloud and other third-party Cloud vendors for our technology infrastructure
● Reduce our office paper consumption and minimize the use of paper for our marketing and distribution activities whenever possible
● Reduce our water consumption in all facilities
● Reduce the waste we generate and recycle our waste, including our IT waste.
● We aim to increase the use of recycled material in our operations and achieve zero waste certification at our distribution centers.
● Reduce the emissions derived from our business travel by minimizing the number of long-distance trips of our employees, stimulating the use of alternative means of communication and video conferencing
● Seek suppliers that support us in this journey through their solutions and business practices
● Encourage strong product stewardship by promoting the recirculation of luxury goods and delaying end-of-life product management until it is absolutely necessary
• In 2020, The RealReal became a member of the United Nations Global Compact, committing to implement universal sustainability principles and take steps to support UN goals. At TRR, we are driving impact to support the following goals:
• Zero Hunger - We have supported Feeding America to help people facing hunger in the United States.
• Quality Education - We support quality education for all communities through The RealReal Foundation.
• Gender Equality - At The RealReal, 68% of employees are female, 60% of board members are female and we are led by our female founder and CEO, Julie
Wainwright.
• Decent Work And Economic Growth - We create domestic jobs and drive economic growth while also saving water and carbon through resale.
• Responsible Consumption And Production - We are bringing an ever-increasing number of people into the circular economy, allowing them to extend the life of luxury
by buying and selling.
• Climate Action - We achieved carbon neutrality in 2020 a year ahead of our goal and are committed to reducing emissions by 30% by 2030 and net zero emissions by
2050.
• Life On Land - We purchase nature-based offsets that include reforestation projects through our partnerships with One Tree Planted and Bonneville Environmental
Foundation.
• More detailed information on our practices and programing can be found in our Environmental, Climate Change, and Energy, Water & Waste policies on the Social Impact portion of our Investor Relations website, as well as in our CDP response.

● 896M liters of water saved by selling on TRR since inception through Mar. 31, 2021
● 18,732 metric tons of carbon saved by selling on TRR since inception through Mar. 31, 2021
● ~1,592 MT CO2e avoided by recycling and food composting
● 557 tons of material TRR recycled
• Additional measurement information can be found in the ESG Environmental and Societal Factors By The Numbers and Sustainability Accounting Standards Board (SASB) Disclosure documents on the Social Impact portion of our Investor Relations website, as well as in our annual CDP response and proxy and 10-K filings.

• The RealReal is committed to the highest standards of social and environmental
responsibility and ethical conduct. TRR’s suppliers are required to provide safe working
conditions, treat workers with dignity and respect, act fairly and ethically, and use
environmentally responsible practices wherever they make products or perform services for
TRR or its customers.
• More detailed information on our practices and programing can be found in our Supplier Code of Conduct and Code of Ethics and Business Conduct policies on the Social Impact portion of our Investor Relations website.

• TRR requires its suppliers to operate in accordance with the principles
and requirements, as applicable, in this TRR Supplier Code of Conduct and in full
compliance with all applicable laws and regulations. This Code goes beyond compliance with
applicable laws by drawing upon internationally recognized standards to advance social and
environmental responsibility.
• As we continue to grow our business, the authenticity and integrity we bring to all that we do,
and conduct consistent with the highest ethical standards, is fundamental to The RealReal’s place
in the market and to its success. The RealReal prohibits any activity by any employee that violates any law or regulation.
• More detailed information on our practices and programing can be found in our Supplier Code of Conduct and Code of Ethics and Business Conduct policies on the Social Impact portion of our Investor Relations website.

• A comprehensive Supplier Responsibility Program is part of The RealReal’s 2021 roadmap. The Supplier Responsibility Program will assist suppliers through a phased implementation that focuses on defining standards, monitoring performance, and correcting deficiencies.
• The RealReal had zero reportable incidents or data breaches under U.S. or EU law in 2020.
• Additional measurement information can be found in the ESG Environmental and Societal Factors By The Numbers and Sustainability Accounting Standards Board (SASB) Disclosure documents on the Social Impact portion of our Investor Relations website, as well as in our annual CDP response and proxy and 10-K filings.