CoStar : 2024 ESG Report

ENVIRONMENTAL, SOCIAL

& GOVERNANCE REPORT 2024

TABLE OF CONTENTS

OVERVIEW	ENVIRONMENTAL	SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

TABLE OF

CONTENTS

3	OVERVIEW	29	GOVERNANCE
	Letter from our Founder & CEO		Compliance
	Our Mission & Values		Data Privacy
	Materiality Assessment		Cybersecurity
8	ENVIRONMENTAL	35	PERFORMANCE TABLES
	GHG Emissions & Climate Change
	Data Centers	47	BUILDING SUSTAINABILITY CERTIFICATIONS
	Facilities & People
	Research Fleet	49	FRAMEWORK REFERENCE CHARTS
	E-Waste
	Product Offerings
	Richmond Campus

17 SOCIAL Talent

Employee Engagement Continuous Learning Diversity, Equity & Inclusion Health & Safety Philanthropic Programs

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TABLE OF CONTENTS

OVERVIEW

ENVIRONMENTAL	SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

LETTER FROM OUR FOUNDER & CEO

I am pleased to share with you our third annual Corporate Social Responsibility report. CoStar Group continues to make tremendous strides in key Environmental, Social and Governance (ESG) programs and initiatives, an accomplishment attributable to our underlying values of fairness and community. We continue to set ambitious goals for these important criteria and focus on the work still to come even as we celebrate all we have achieved thus far. Our ESG efforts make us a more diverse, efficient, and transparent organization.

In 2023, we improved our scores with industry standard rating agencies MSCI, Sustainalytics, ISS and JUST Capital. We continue to focus on improving our scores and are internally measuring and managing our own greenhouse gas emissions and energy footprint as a baseline for future emissions reduction and efficiency goals. We signed on to the Science Based Targets initiative (SBTi) in 2023 and plan to set our targets and submit to SBTi for approval in 2024. We are using these and other metrics to hold ourselves accountable to our sustainability obligations and track our accomplishments in this space going

3

forward. 2023 was a year of great environmental successes at CoStar Group. We have taken steps to ensure that our upcoming 750,000 square-foot Richmond campus expansion will attain LEED Net Zero and WELL Platinum certifications, two of the highest designations in real estate sustainability. For the first time, Homes.com includes environmental information in listings, a practice we expect to become industry standard over time. Additionally, our research fleet of eco-friendly hybrid and electric vehicles use our electric charging infrastructure to capture the property information and photography

SUSTAINABILITY REPORT 2024

TABLE OF CONTENTS

OVERVIEW

ENVIRONMENTAL	SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

that fuel our databases and marketplaces. This information and photography diminishes the need for wasteful trips by consumers to personally view properties. We continue to offer generous benefits to employees utilizing mass transit, and more than half of our workforce does so.

I am also enthused by our continuing strides in our professional development initiatives. We know our employees are our strongest advantage, as shown by our monthly retention rate of 99.1% and we had 15% of our employees receive internal promotions in 2023. Our team participates in best-in-class training programs and our employee average hours of training increased 23% compared to the year prior. Also driving that strength is our team's diversity of backgrounds and experiences. By the end of 2023, approximately one in five CoStar Group employees was a member of at least one Employee Resource Group (ERG), such as the Black Excellence Network, Pride Network and Women in Tech Network, a

70% increase compared to 2022. Similarly, we have prioritized diversity within our supplier network, increasing our total direct spend with small businesses and diverse suppliers by 261% in 2023. Combined with the progress made in 2022, this represents a 579% increase since the end of 2021.

We have a governance structure that prioritizes ethics and transparency in CoStar Group's management. Our 2024 Board of Directors nominees are 50% women or ethnically diverse. Also last year, the Board formalized its longstanding commitment to ESG issues by adopting oversight over ESG matters, including climate-related issues, and committed to reviewing ESG-related matters

at least annually. Elsewhere in the Company, we conducted a legal and compliance risk assessment, fortified our data privacy policies and practices to protect CoStar users, and hardened our defenses against cybersecurity threats.

Our ESG activities are fundamental to our mission of digitizing the world's real estate. Our commitment to the environment, our diverse and equitable workforce and our responsible and thoughtful governance drives our success. These values have elevated CoStar Group to new heights in 2023. I am so proud of what we accomplished last year and even more excited to look ahead at what we have planned for the years to come.

Sincerely,

Andrew C. Florance,

Founder & CEO

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OVERVIEW

ENVIRONMENTAL	SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

OUR MISSION

We are digitizing the world's real estate, empowering all people to discover properties, insights and connections that improve their businesses and lives.

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OVERVIEW

ENVIRONMENTAL	SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

OUR VALUES

INTEGRITY

We uphold the highest ethical standards at all times. We earn our colleagues, customers, and stakeholders' trust by saying and doing the right thing.

RESPECT FOR THE INDIVIDUAL

Value diversity and cherish uniqueness. We are inclusive always. CoStar is for all people, without exception. We recognize that the thoughts and feelings of others are as important and valuable as our own.

WORK-LIFE BALANCE

We work hard and take pride in our professional accomplishments. We are committed to creating value for our customers, while still recognizing the need to have a sacrosanct place for our personal lives and families.

BUILD AWESOME THINGS

We work passionately to design and build awe-inspiring, beautiful products that delight and improve the lives of billions of people. We know that design matters.

KEEP THE CUSTOMER AT THE CENTER OF ALL WE DO

We succeed only when our customers succeed. We treat each of our customers the way we would prefer to be treated when buying a product or service. We invest in and enjoy the strong bonds and long- lasting, authentic friendships built with our customers.

EMBRACE AND DRIVE CHANGE

At our core we are about change. We challenge the status quo and constantly seek a better way.

COHESIVE INNOVATION

We create products of vital utility, delivering information and tools that are critical to the success of our customers and industry. Our solutions mobilize individuals to enable them to make confident, intelligent decisions.

BE COLLABORATIVE

We are all part of the bigger team, and we are at our best when we communicate, empathize, and collaborate.

THE BEST TEAMS ANYWHERE

We hire the best. We work and learn alongside exceptionally talented peers who are passionate about building the best possible workplace and taking our business to great heights. We have a zero- tolerance policy for jerks.

CONTINUOUS LEARNING

We are curious. We want to learn, grow, and better ourselves. We view mistakes as a necessary part of learning. Through the expertise we develop, we are better partners to our clients, shareholders, communities, and colleagues.

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OVERVIEW

ENVIRONMENTAL	SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

MATERIALITY ASSESSMENT

In 2021, we conducted a materiality assessment to determine and understand the Environmental, Social and Governance related issues that are most relevant and impactful to our business. A materiality assessment is considered best practice as the first step in an ESG planning roadmap. We used a third-party to conduct the assessment and gauge which ESG priorities are most relevant to CoStar

Major

		Employee
	Cybersecurity	Recruitment
	Business	& Attraction
Data Privacy	Continuity	Employee

Regulatory & Legal Compliance	Retention
	Employee Health & Well-Being
	Business Integrity & Transparency
Employee Satisfaction

Employee Training and Development

Employee Engagement

Anti-Competitive Behavior

Workplace Flexibility

Group and our stakeholders. Stakeholders included internal leaders from 12 contributing departments as well as seven selected investors who provided feedback on 27 categories across the three topics. Responses were gathered from internal representatives who work closely with our associates, clients,

Importance to Stakeholders

Productization of Environmental Data

Board Diversity

Diversity & Inclusion

Whistleblower and Grievance Mechanisms

Workplace Green Certi•cations

Renewable Energy/Fuel

investors, external partners and suppliers as well as select external investors. The results demonstrated several top priorities of interest to our stakeholders, while also highlighting

Energy E•ciency

Climate Change Resiliency

Waste Reduction

and Diversion

programs and initiatives already underway

Philanthropic Eorts

Greenhouse Gas Emissions

at CoStar Group. We are proud to say we have made several improvements this year based on these priorities and have enhanced transparency in our disclosures as seen throughout this report.

Environmental Social Governance

Moderate

Water Conservation

Environmental Data

Reporting/Disclosures

Productization of Tenant Engagement Data

Volunteer Program

Moderate		Major
				Impact on Business
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OVERVIEW

ENVIRONMENTAL

SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

ENVIRONMENTAL

			8			SUSTAINABILITY REPORT 2024

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OVERVIEW

ENVIRONMENTAL

SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

CoStar Group is committed to environmental sustainability both inside and outside the company. Internally, we prioritize buildings and offices that are environmentally focused to include those that are LEED, WELL and/or Energy Star certified for most of our 80+ office footprint. We work to drive efficiency with our overall office occupancy to reduce the amount of square footage needed for our workforce. We are working to reduce our total annual data center energy consumption despite significant company growth and are transitioning to cloud-based service providers. Through a combination of energy efficient facilities, a fleet of electric and hybrid vehicles and responsible use of our research aircraft, we are committed to maintaining a sustainable work environment. We provide our customers with up to date, reliable environmental information on real estate properties and offer virtual property tours which reduce the need for in person visits. We aim to effectively manage environmental risks, including those related to climate change, for our customers while also minimizing our own environmental footprint.

In 2022, we calculated our GHG (greenhouse gases) emissions for the first time and received third party assurance. In 2023 we completed the CDP (Carbon Disclosure Project) questionnaire for the first time and achieved a score of C, which is average among our peers and for North America. Also in 2023, we signed on to the Science Based Targets initiative, committing to do our part

to achieve a Net Zero future. We are currently working on setting our targets and look forward to tracking and reporting our progress towards

these goals over time. Through monitoring and managing our own GHG emissions and energy footprint, we plan to implement measures to reduce emissions and increase efficiency within our office locations and operations.

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TABLE OF CONTENTS

OVERVIEW

ENVIRONMENTAL

SOCIAL	GOVERNANCE	PERFORMANCE TABLES	BUILDING SUSTAINABILITY	FRAMEWORK
CERTIFICATIONS	REFERENCE CHARTS

GREENHOUSE GAS EMISSIONS

EMISSIONS (MARKET-BASED)

BY CATEGORY

In 2023, we calculated our baseline GHG inventory in line with the Greenhouse Gas Protocol, covering Scope 1, Scope 2 (location and market based) and relevant Scope 3 emissions using an operational control

Scope 3 - Cat 7:

Employee Commuting

Scope 3 - Cat 6: 6.8%

Scope 3 - Cat 11:

Use of Sold Products

0.2%

approach. Scope 1 accounts for emissions that CoStar Group is directly responsible for, including natural gas, steam, fuel and refrigerant leakages. Scope 2 accounts for indirect emissions mainly consisting

of electricity, including our electric vehicles. CoStar Group's 2023 total carbon footprint was 127,601 MT CO2e (metric tons of carbon dioxide equivalent), with Scopes 1 & 2 accounting for about 9% of the overall GHG inventory. Scope 3 are corporate supply chain emissions and are made up of 15 Categories. Through a careful analysis of our business, we determined that Categories one through eleven are most material to our business. These make up 91% of our total GHG emissions. Calculating our GHG allows us to better understand where our emissions are coming from and identify opportunities where we can implement reductions and efficiencies across our footprint. We look forward to tracking and reporting our energy consumption and efficiencies over time. See tables in the appendix for further details.

GREENHOUSE GAS EMISSIONS BY METRIC TON

Scope 1	3,139
Scope 2 (Market Based)	8,103
Scope 3 (Cat 1-7)	117,078
Total	128,320

Business Travel

7.2%

Scope 3 - Cat 5:

Waste 0.4%

Scope 3 - Cat4:

Upstream Transport

0.3%

Scope 3 - Cat 3:

Fuel & Energy

Related

2.3%

Scope 3 - Cat 2:

Capital Goods

27.0%

Scope 1: 2.4%

Scope 2: 6.3%

Scope 3 Cat 1:

Purchased Goods

& Services

47.1%

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