Facebook’s Civil Rights Audit In June 2020, Facebook set a new goal: to spend at least $1 billion with diverse suppliers starting in 2021 and continuing each year thereafter. As part of that goal, the company committed to spending at least $100 million per year with Black-owned suppliers. Because vendor decisions are diffuse rather than centralized in a single team, changing the way Facebook makes vendor decisions required building a tool that would promote more diverse choices at scale. Facebook has now developed an internal vendor portal to facilitate selection of diverse-owned companies when Facebook teams are looking for vendors for everything from office supplies to coffee to cables for data centers. With its rapid expansion (and the large-scale construction projects accompanying such expansion), Facebook is now turning its attention to diversifying its construction contracting for both primary contracts and subcontracts. Working in partnership with its Global Real Estate and Facilities team, Facebook states that it has established aggressive internal goals for increasing opportunities and awarding competitive contracts to diverse suppliers starting with general contractors and directly sourced professional services (e.g., architects, interior design, fixtures, furnishing and equipment). In addition, Facebook indicates it will launch its Tier 2 (subcontractor) reporting program in 2020, which will require eligible Facebook contractors to report their direct subcontracting with diverse suppliers on a quarterly basis. This will include key categories of spend like construction, facilities operations, marketing and events, where the prime supplier relies heavily on subcontracted suppliers to deliver the scope of work for which Facebook engaged them. Facebook states that it will also strengthen its contract language and program to more affirmatively encourage and support prime suppliers in identifying and contracting with qualified diverse subcontractors. Facebook has also made commitments to increase diversity and inclusion within consumer marketing. The consumer marketing team works with hundreds of creative supply chain vendors a year to create marketing and advertising campaigns for Facebook and its family of apps. The consumer marketing team has committed to increasing diversity and inclusion in the following areas within their supply chain: supplier diversity (owner/ operator), on camera talent, key production crew roles including photographer, director, first assistant director editor, director of photography, visual effects artist, audio mixer and colorist. To implement this commitment Facebook has taken steps such as: • Prioritizing diversity in selecting vendors to work on projects. • Partnering with the non-profit Free the Work, pledging to always consider/bid at least one female director every time there is a commercial production over $500K. • Creating an economic pipeline program for production assistants. • Tracking the production commitments across our external agencies and internal teams on a quarterly basis to ensure accountability. Facebook has also taken steps to require diversity when engaging other service providers, such as outside legal counsel. When Facebook hires outside law firms, it now requires that those firms staff its Facebook projects with 70

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