May 17, 2022

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 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 2021 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 and Occupational Health & Safety policies on the Social Impact portion of our Investor Relations website.

-66% female employees as of April 25, 2022
-60% racially and/or ethnically diverse employees as of April 25, 2022
-67% female board members as of Dec 31 2021
-22% racially and/or ethnically diverse board members as of Dec 31 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.

-We are about to embark on our third all employee survey. Over the last two years, we have used the all employee engagement survey to drive department-level actions plans led by our senior leaders to focus on engagement and incorporating greater insights from our employees. All of our employees were offered an opportunity to participate.
-More detailed information on our practices and programming 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 second employee engagement survey. All of our employees were offered an opportunity to participate, of which over 75% submitted a response. The survey consisted of 50 questions on which employees were asked to indicate their level of agreement by using a five-point scale from Strongly Agree to Strongly Disagree, as well as five free-text questions to which employees were asked to write a response. The responses returned an overall favorable engagement score of 64%, 24% neutral and 12% 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 programming 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 while maximizing the use of recycled and FSC-certified content
-Reduce our water consumption in all facilities
-Reduce the waste we generate and recycle our waste, including our IT waste
-Increase the use of recycled material in our operations and achieve zero waste at our largest distribution center.
-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
-We collaborate across the industry as part of the Sustainable Apparel Coalition and we were an original member of the Ellen MacArthur Foundation's CE100 USA.
-Launched in 2018, our first-of-its-kind TRR Sustainability Calculator measures the greenhouse gases and water usage saved by resale, using methodology developed with Shift Advantage, Inc. and validated by the World Resources Institute and the Ellen MacArthur Foundation. In 2022, the tool was expanded beyond clothing to calculate the environmental savings of consigned handbags, fine jewelry, and watches. The measurements are published across our platform. To learn more, visit therealreal.com/sustainability.
-The RealReal was the first resale company to join the UN’s Fashion Industry Charter for Climate Action.
-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 Sustainable Development 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 - 66% of employees are female, 67% 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 50% 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 programming 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.

-2.8 Billion liters of water saved by selling on TRR since inception through Mar. 31, 2022
-52,767 metric tons of carbon saved by selling on TRR since inception through Mar. 31, 2022
~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 our 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 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 as of April 18, 2022
-Total out of work days: 1,397*
-Average out of work days: 70*
-Modified duty work days: 300 (estimate)*
-Average modified work days: 20 (estimate)*
-Work-related fatalities: 0
-Occupational diseases: 0
* denotes information collected from 2021
-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.