Pega 2023 Global Impact Report Highlights Continued Commitment to Environmental, Social, and Governance Initiatives

Pegasystems Inc. (NASDAQ: PEGA), the leading enterprise AI decisioning and workflow automation platform provider, today published its annual Impact Report. The report provides a view into Pega's 2023 progress, developments, and contributions in its ESG (Environmental, Social, and Governance) programs.

2023 was a year of change with the emergence of generative AI and continued shifts in the way people work. Pega's latest Impact Report demonstrates our ability to adapt quickly to the needs of our people, clients, and partners ? from the ethical use of technology, to providing a supportive and inclusive space for employees, to positively impacting the communities in which we operate.

This year's report takes a closer look at the company's progress and efforts across the following:

Social: Pega supports its people and communities through efforts aligned with its values ? innovative, inclusive, passionate, engaging, genuine, and adaptable. Accomplishments include:

• Being recognized for the second consecutive year as a Best Place to Work for Disability Inclusion in the Disability Equality Index®, one of the most comprehensive benchmarking tools to measure workplace inclusion, and achieving a high score in the Human Rights Campaign Foundation's Corporate Equality Index, one of the premier benchmarks for measuring policies and practices related to LGBTQIA+ workplace equality.
• Launching two new return-to-work programs. In North America, the Return-to-Work program supports professionals who paused their careers for family, military service, education, or a career shift. Pega India's Women Return to Workforce Program helps women restart their careers after a professional break.
• Receiving the Boston Business Journal's 2023 Corporate Citizenship Award for the fourth consecutive year for being a Top Charitable Contributor in Massachusetts.
• Donating to more than 350 organizations in 17 countries and participating in more than 100 volunteer events and projects globally.
• Developing and launching a comprehensive suite of DEI&B Learning Modules to help employees better understand, support, and celebrate different identities and cultures.

Environmental: Pega continued to monitor and measure its environmental impact and introduced technology enhancements and partnerships to help clients achieve carbon-neutral goals. Highlights include:

• Expanding Pega's tracking, management, and measurement of all global offices and managed spaces, which helped Pega achieve its 2025 energy consumption reduction and water usage reduction goals ahead of schedule.
• Providing and helping clients with energy efficient, innovative solutions to achieve emissions-reduction goals, including Pega Cloud®, which helps reduce energy consumption and carbon footprints through auto-scaling, auto-hibernation, and other energy efficient technologies. Pega also leveraged Pega Cloud internally to help identify efficiency opportunities and reduce energy consumption.
• Submitting climate change-related disclosures to CDP, a global disclosure system for environmental efforts, to benchmark and map areas of improvement across all 14 globally leased office spaces and 21 managed spaces.
• Maximizing office space usage with Pega's hybrid work model while reducing emissions and energy consumed to keep them operational.
• Continuing to decrease waste by reducing printed materials and accelerating vendors' migration to e-invoicing, while managing technology lifecycles and identifying opportunities to recycle or replace.

Governance: Pega's corporate governance practices reflect high standards of excellence and compliance for the company and its employees, clients, partners, and other stakeholders. Highlights include:

• Continuing diligent oversight at the committee, leadership, and Board level to set the tone for the business and ensure Pega holds itself accountable to the highest ethical standards.
• Updating and maintaining policies including guidelines for employees, suppliers, and corporate governance, such as how Pega assesses risk and engages with external stakeholders.
• Publishing the AI Manifesto, Pega's guiding principles and best practices for the responsible and trustworthy application of AI with impact, to help clients strategically build AI into their business.
• Continuing a commitment to responsible AI practices, including Pega's Ethical Bias Check capability, which helps clients proactively detect AI bias, and Pega T-Switchtm, which enables organizations to set appropriate thresholds for AI transparency.

More information can be found in the full 2023 Pega Impact Report.

Quotes & Commentary

"2023 proved that in times of great technological change, Pega can quickly innovate its solutions and adapt its ESG efforts to successfully support its clients, employees, and partners," said Ken Stillwell, COO and CFO, Pega. "We are proud of our ability to bring technology to the market while continuing to foster a culture of innovation and belonging, as well as finding new ways to support the communities we work and live in. We look forward to furthering these accomplishments in 2024."

About Pegasystems

Pega provides a powerful platform that empowers the world's leading organizations to unlock business-transforming outcomes with real-time optimization. Clients use our enterprise AI decisioning and workflow automation to solve their most pressing business challenges ? from personalizing engagement to automating service to streamlining operations. Since 1983, we've built our scalable and flexible architecture to help enterprises meet today's customer demands while continuously transforming for tomorrow. For more information on how Pega empowers its clients to Build for Change®, visit www.pega.com.

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