Mindful Manufacturing™

Stratasys 2020-2021 ESG & Sustainability Report

3D Printing a Better TomorrowTM

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Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section I

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportLeadership Statements

3Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportChapter 1

Opening Statements
Statement from Yoav Zeif, CEO
Statement from Dov Ofer, Chairman of the Board of Directors
Statement from Ziva Patir, Senior Decision Makers: Sustainability Strategy, Board of Directors
Statement from Rosa Coblens, Vice President of Sustainability
About Us

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Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportMindful ManufacturingTM
Sustainability: 3D Printing Key Impacts, 		Risks and Opportunities

YOAV ZEIF
CEO, Stratasys“Sustainability is about
people. It’s about our role inhelping and supporting them,so that tomorrow is a better
version of today.”We understand the game-changing impact
additive manufacturing has on driving
improvements that introduce moresustainable manufacturing. The new world
economy, post-COVID-19, will rely on thistechnology and its power to innovate andimprove global supply chains.
The challenge now is to take this value toscale as part of our everyday operations, forour entire ecosystem, across industries.
Supply chains will continue to be disrupted.
Local production and manufacturing, whichpose less risk and create less waste, arebecoming a new focus. That’s where
Stratasys comes in. With true hunger to makean impact, we will support big companies,
local designers and engineers to make thisshift. Let’s preserve some of the benefits thata reduced footprint during the pandemicpresented. We call it ‘Mindful ManufacturingTM’
where we grow our businesses in a way thatmakes a positive impact on people and on theplanet, for generations to come.
I stepped into my role as Stratasys CEO in
February 2020, on the eve of a global

pandemic that has impacted business in
unprecedented ways. At the time, I knew thepower that 3D printing technologies
presented, and understood the amazing
untapped opportunities for polymer-based
additive manufacturing.
Only a few short weeks later, I witnessed theimpact of additive manufacturing in action, at
scale and on the global stage, providing
solutions for communities and economies that
had been hit by the COVID-19 outbreak.

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COVID-19 made our Stratasys business value
clear in a way that years of marketing efforts
could not. 3D printing is here to stay; and thereal revolution is still to come as adoption
grows. 3D printing isn’t a new technology; it
was thrust into the forefront and its potential
and importance became vital during the
pandemic. For me, the magic began from thestart: I was energized meeting our people. The
Stratasys teams are industry pioneers andexperts, with over 30 years of experience ininnovation. With their guidance and mybackground as an executive consultant andseasoned global business leader, we devised
a new company strategy in just months –working as a global team, remotely, underhome quarantines and local lockdowns. The
passion and persistence were tangible. Manyof us had never met in person, but we focusedon building a winning business model – andwe succeeded.
I’m honored to have led our talented teams
through the pandemic. We are still dealing with
COVID-19 implications in big ways in many
locations. Care for our people’s safety andhealth has been our first concern – always! We
worked in capsules at manufacturing sites andfor R&D teams, and proved that productivity isbased on a mindset, not a location. I start withthis since sustainability is about people. It’s
about our role in helping and supporting them,so that tomorrow is a better version of today.

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportOur Stratasys DNA is one of innovation andadvancement. We wake up every day,invigorated by the opportunity to democratize
production, to localize manufacturing, and to
make our technology accessible to all. We drive
software improvements that eliminate or reduce
unnecessary physical production; we introduce
new products and expand our polymer offering
to secure broad solutions designed for endlessapplications. Our focus on accelerated
innovation and taking Additive Manufacturing toscale led us to make three acquisitions at theheight of the COVID-19 pandemic.
During the business turndown in 2020, wemanaged a period of 80% work weeks toprotect our teams and their jobs over the longterm. But we didn’t let this impact personal,
annual variable compensation (bonus
allocations were not prorated or adjusted to thisreduction). We put ‘people first’ in every
decision we make – pandemic or not.
COVID-19 put this to the test. We weretransparent in communicating to all
stakeholders, and accountable to our board of
directors every step of the way.
Our teams turned their passion for printing into
partnerships and open-source files for solving
issues that the pandemic posed to the global
community: the need for parts in medicalorganizations around the world. We worked
with application engineers, universities, major
hospitals, inventors, and the general public tocreate solutions that turned into products aroundthe world – the very next day.
Join us on our ‘Mindful ManufacturingTM’ journey,
where traditional processes, parts and supply
chains are redesigned, all with great thought anda clear intention to secure manufacturing thatmakes the world a better place.

Stratasys is proud to have supported AP-HP
Assistance Publique – Hôpitaux de Paris with 60
Industrial-grade FDM printers, advancing the frontline production of vital protective medical equipment
for brave hospital workers

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LeadershipStatements

Section II‘Mindful Manufacturing’
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About This
ReportStratasys is a global leader in polymer
additive manufacturing, having introduced
innovation across industries for over 30 years.
We are proud to declare our commitment
to sustainability, a cornerstone in our ESG
strategy as the first-choice polymer 3D
printing provider for designers, engineers
and manufacturers.

DOV OFER
Chairman of theBoard of Directors,
Stratasys

As a public company, we understand our
corporate responsibility to ‘do well, by doing
good.’ Stratasys is focused on growth. We
believe that this growth is driven by our
promise to empower businesses throughinnovation in manufacturing and production
across domains (healthcare, consumer
products, aerospace, automotive, and more).
We aspire to deliver on this promise in waysthat positively impact our environment, create
meaningful social impact, and exhibit ethicaland responsible behavior.

"Additive manufacturing, by
nature, offers an alternative to
traditional manufacturing thatprovides important opportunities
for our people and our planet."
The global pandemic demonstrated this value:with the disruption of traditional supply chainsand limited access to global products andinventory, those with 3D printers showedresilience. No massive inventories needed; noshipment of parts required. With the simple
transfer of a digital file, Stratasys machines
were repurposed overnight. Personal
protective equipment was printed, on-site andon-demand, near hospitals in need of swabs,
masks, and ventilation machine replacement
parts. There is nothing more powerful thandirectly impacting and saving people’s lives
through the benefits of our technology.
That being said, our work is never done.
Innovation is who we are. Manufacturing at
scale, powered by digital product iterations, isthe future. Design a file anywhere, print it on
demand locally, and advance your businesswith faster time to market. At the end of theday, this process also produces less waste
than traditional production methods. That’s
why we at Stratasys intend to lead the shift
to ‘Mindful ManufacturingTM,’ where thoughtful
mass production provides important
manufacturing solutions that also addressenvironmental concerns.
Join us in harnessing innovation in 3D printing
to print a better tomorrow.

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Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportAs the board of director’s Sustainability
Champion, I am proud to guide the company
on its ESG journey.
What we know: Climate change is a reality.
Responsible energy consumption is a must.
Less water contamination saves criticalresources. Supply chains are being disrupted
globally. Producing less waste is paramount.
Operating in an inclusive and diverse
ecosystem fosters innovation.

ZIVA PATIR
Senior Decision Maker:
Sustainability Strategy,
Board of Directors,
Stratasys

Reducing, Recycling, Reusing, Repurposing
and Repairing. These are the solutions. The
Stratasys Innovation Roadmap is dedicating
resources to designing a circular economy
for 3D printing where responsible practices andproducts are key elements of our offering. We
care about our customers, users, partners,
employees, suppliers, and investors – aswell as the world that we are creating forthe next generation.

carbon footprints across theentire product lifecycle. Our
customers are invited to join us
in creating a new world, a moresustainable one."
I would like to reiterate the Stratasys
commitment to ‘design for additive
manufacturing,’ where we leverage the benefitsof 3D printing to provide solutions that address
responsible production more broadly. I also
support ‘design for environment’ efforts whereclimate action is addressed by delivering a
Stratasys offering that directly impacts
consumption, on site, at customer locations.
We believe that Stratasys, and the AM industry
at large, is uniquely positioned to impact theenvironment. As we shift to manufacturing at
scale, our impact on customers, suppliers andusers will grow exponentially.

"With our extended 5 technology "It is my personal goal to drive
our sustainability strategy in a
portfolio and always expanding
measurable and quantitative
materials offering, the world of
product possibilities is unlimited. manner, paving the way for theentire industry to follow."
Designs powered by Stratasys
additive manufacturing solutions
remove constraints, and allow
for production that minimizes

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Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
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Beyond Compliance

Section III

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SocialImpactSection V

Governance

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About This
ReportSustainability is a journey. I am honored tohave been appointed to lead the strategic shift
to ‘Mindful ManufacturingTM’ that Stratasys isspearheading for the 3D printing industry. I
deeply believe in the ESG principles andpractices. The model rests on three important,interdependent ideologies – environment,social and governance. One cannot exist
without the other.

ROSA COBLENS
Vice President of
Sustainability, Stratasys

At Stratasys, we are translating our leadership
position, which rests on a foundation of 30+
years of excellence in 3D printing technology
and innovation, into action. We are moving
forward with the intention to create a future inwhich generations to come can thrive.

"Our commitment is beingbrought to life through ourchosen UN Sustainable
Development Goals. It isdemonstrated in productimprovements that impact
climate change: in our ‘people
first’ philosophy that champions
inclusion, fairness, transparency
and celebrates differences;and in our commitment toethical, compliant andregulated operations andbusiness practices."
Stratasys, and the entire additive
manufacturing industry, is uniquely positioned
to provide the solutions required in order tocombat waste and exploitation that harmmankind, and to build a better world.

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ABOUT US - STRATASYSStratasys, a global leader in additive technology
solutions, is leading the global shift to additive
manufacturing with innovative 3D printing solutions forindustries such as aerospace, automotive, consumer
products and healthcare.
Through smart and connected 3D printers, polymer
materials, a software ecosystem, and parts on demand,
Stratasys solutions deliver competitive advantages at
every stage in the product value chain. The world’s
leading organizations turn to Stratasys to transformproduct design, bring agility to manufacturing andsupply chains, and improve patient care.
The Stratasys 3D printing ecosystem of solutions andexpertise — advanced materials; software with voxel
level control; precise, repeatable and reliable FDM,
PolyJet, SAF, P3, and Stereolithography 3D printers;
application-based expert services; on-demand parts
and industry-defining partnerships — works to ensure
seamless integration into each customer’s evolving
workflow.
Fulfilling the real-world potential of additive, Stratasysdelivers breakthrough industry-specific applications that
accelerate business processes, optimize value chainsand drive business performance improvements forthousands of future-ready leaders.

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SocialImpactSection V

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About This
Report10

Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportSection II‘Mindful Manufacturing ’TM

Sustainability That Goes Beyond Compliance
Mindful ManufacturingTM calls for us to approach new world, post-COVID manufacturing
challenges with a new outlook – not because of regulations, but because it’s good forpeople and the planet.

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Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Section IV

Environment

SocialImpactSection V

Governance

Section VI
About This
ReportChapter 2

Chapter 4

Chapter 6

Stratasys – 3D Printing a
Better Tomorrow

Additive Manufacturing
at the Forefront ofLocalized Manufacturing
on a Global Scale

Memberships andOrganizational Structure

Chapter 2.1: Stratasys Spearheading the AM
Shift to Sustainable, Mindful ManufacturingTM– 3D Printing a Better Tomorrow»

Chapter 2.1.1: Company Overview»

Chapter 2.1.2: Comprehensive
Offering Across Industries

Chapter 2.2: Mindful ManufacturingTM:
Making 3D Printing Meaningful – Our
Strategic Industry View and Commitment

Chapter 3

Our Purpose, Mission andValues
Chapter 3.1: Our Values
Chapter 3.2: Development and Integration

Chapter 4.1: COVID-19: Global Outreach
Chapter 4.2: COVID-People First
Chapter 4.3: Internal Governance During
COVID-19

Chapter 5

Sustainability SDGs,
Materiality andEngagement
Chapter 5.1: UN Sustainable Development
Goals – Stratasys Takes Action
Chapter 5.2: Identified Stakeholders
Chapter 5.3: Stakeholder Engagement»

Chapter 5.3.1: Communicating With
our Stakeholders

Chapter 5.4: Materiality

Chapter 6.1: Organizational Structure
Chapter 6.2: Association Memberships

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CHAPTER 2:
STRATASYS – 3D
PRINTING A BETTERTOMORROW
2.1 Spearheading the Shiftto Sustainable Mindful
ManufacturingTM
Stratasys is leading a global transformation acrossindustries by leveraging additive manufacturing (AM) tosecure a future where generations to come can thrive.
We are committed to advancing our 3D printing
technologies in order to do good and to ensure
valuable, profitable business impact. We are
disrupting existing supply chains, enabling local
production, and introducing manufacturing at
scale to benefit the future.

Section IV
SocialImpactSection V

Governance

Section VI
About This
Report3D Printing a Better Tomorrow™

Committing to leadinga purpose-driven
company, andpartnering to change
the world

Focusing on securing
a future wheregenerations to comecan thrive

BeyondCompliance

Sustainability

Meaningful Growth

Looking to achieve businesssuccess while taking into
account ethical,
environmental, and social
factors in business operations

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Stratasys has been leading the additive
manufacturing industry since ourestablishment in 1988. When our founders
invented the first 3D printing technology over
30 years ago, it was a radical idea. Since
then, our constant innovation has
empowered designers and manufacturers,

Section IV
SocialImpactSection V

Governance

Section VI
About This
Reportacross industries and around the world, toimprove their products, operations, and time
to market. And we’re just getting started.
Now we’re leading the global shift to
manufacturing with a range of innovative 3D
printing solutions that deliver competitive

advantages at every stage in the productvalue chain. The world’s leadingorganizations turn to Stratasys to transformproduct design, bring agility to manufacturing
and supply chains, and improve quality of life.

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About This
Report2.1.1 Company Overview
Stratasys’ leadership position is based on decades of expertise. We have the broadest installed base, and one of the largest market shares in thepolymer AM industry. We also maintain a broad five-technology portfolio, along with a leading Fortune 500 partner and customer network.

Facts & figures

Best-in-class full portfolio

30+ Years of innovation leadership

Solutions across entire value chain

Largest marquee customer base

From prototyping to mass production

Open and enterprise-ready additive
manufacturing software platform

2000+

Globalemployees

1700+

Patents(granted &pending)

$607m
2021
Revenue$0

Materials Partner ecosystem

Zero debt
Service and support ecosystem
resellers – Global
200+ Global
GTM infrastructure

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About This
ReportSTRATASYS MAIN LOCATIONS
Eden Prairie,
Minnesota

AZ
TX
CA

NY MA
MI

UK

Global Operations

Rehovot,
IsraelGermany
Switzerland

MN

Headquarters

IsraelChina

Estonia

Hong Japan
Kong

BrazilKorea
MexicoIndia

Australia

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About This
Report2.1.2 Comprehensive Offering AcrossIndustries

Primary Technologies, Products,
and Services

Our solutions are deployed acrossmultiple industries, including:

Stratasys offers a range of technologies,
products and services – smart andconnected 3D printers, polymer materials, asoftware ecosystem, and parts on demand– for the aerospace, automotive, consumer
product, and healthcare industries.

»

FDM

»

Aerospace»

PolyJet»Architecture»

Stereolithography (NEO)»

Automotive

»

SAF

»

Consumer products»

P3™ (Origin)»

Defense»SDM (service bureau)»

Dental»Electronics»

Educational institutions»

Heavy equipment»

Fashion»

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Report

2.2 Mindful ManufacturingTM: Making
3D Printing Meaningful – Our Strategic
Industry View and Commitment
Business, Market& Thought
Leadership

Circular
EconomyInnovation

Stratasys is proud to publish a first of its kind sustainability
impact report as the polymer leader in the Additive
Manufacturing industry. We understand that the new global
economy requires flexibility and resiliency to adapt to changes as
they arise. 3D printing is uniquely positioned to address global
challenges in manufacturing and production. With the impact of a
global pandemic still prevalent, humanity is facing yet anothersignificant issue – climate change. Stratasys is well-positioned witha broad portfolio of polymer AM technologies that, by nature, isdesigned to provide robust and resilient solutions for addressingthese challenges on a global scale.

Aerospace

Automotive

DentalConsumer

Education

Medical

We have just begun our sustainability journey! This report is ourproud demonstration of the Stratasys commitment to ESG bestpractices and sustainable products, processes and people
programs. Join us as we spearhead an industrywide shift to
Mindful Manufacturing™.

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Section I

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SocialImpactCHAPTER 3:
OUR PURPOSE, MISSION
AND VALUES

Section V

Governance

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About This
ReportAll of these steps allowed us to explore and to be exposed to the best in us,
our unique advantages and our impact and contribution to the world.
This resulted in the Stratasys Purpose:

Our Purpose
At Stratasys, we believe that our culture and DNA are central to
our business and social impact. We further believe that wecannot fully realize our strategy and growth potential andwithout a clear purpose, mission and values.
In 2021 we set out on a journey, to unveil what it is that makes
Stratasys the first-choice polymer 3D printing solutions provider
for its stakeholders. To do that, we engaged with customers,
partners and employees to conduct a deep review of our value
proposition and unique DNA:
1. Performed market research and benchmark.
2. Conducted managerial workshops - over 100 participants.
3. Conducted an internal employee survey.
4. Interviewed our founders to appreciate Stratasys’ rich 30+
years of history.
5. Created a company-wide storytelling campaign, asking
employees to share the highlights of their journey, theirproudest achievements - the peak moments from their timeat Stratasys.
6. Facilitated senior management discussion, presenting key
insights that emerged regarding our special Stratasys DNA.

To empower people
to create without limits for an
economical, personalized,
and sustainable world.

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About This
Report

3.1 Our Values
This journey of discovery also led us to thereveal of our core values. These values are
the cornerstone of our activity, and help us
navigate our responses to the dilemmas
faced when bringing innovation to market.
They are a marker of what we strive for, how
we behave when we are at our best, and thetype of people that make up our Stratasys‘best-in-the-industry’ talent.

Our Values
Innovate
Be customer firstOwn itAim higher
Make it together

Our values guide us in our mission – the way
in which we will achieve our purpose.
We extended our strategy, to differentiate us
from our competitors, based on our strengths:

Our Mission
Be the first-choice polymer 3D
printing provider at every stageof the product life cycle, withmultiple technologies andcomplete solutions for superior
application fit, across design,
manufacturing and healthcare.

3.2 Engagement andIntegration
We completed and launched our purpose,
mission and values to the entire company
globally at a virtual launch event at the end of
Q4 2021. In 2022 we are implementing theseelements throughout the company,
embedding them in the everyday operations
around the world.

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About This
ReportOwn itOur Values

We hold ourselves
accountable for making ourideas a reality instead of
waiting for someone else.

Aim higher

Innovate

We aspire for greatness. We
celebrate success and build
upon it for future excellence;
we dare to make mistakes
and learn from them.

We re-invent the way things are
made, with great passion to
impact the world through 3D
printing, for a better, moresustainable tomorrow.

Be customer first

Make it together

We join our customers on
their journey to create
without limits, and we go
the extra mile to deliver
unique solutions to meettheir needs.

We are one Stratasys! We value
different views and believe thatour vision for the future issomething we co-create with
our people, partners,
customers, and communities.

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SocialImpactCHAPTER 4:
ADDITIVE MANUFACTURING
AT THE FOREFRONT OF
LOCALIZED MANUFACTURING
ON A GLOBAL SCALE
COVID-19 Use Case
As Stratasys returns to growth, we understand the need forinnovation to address the future of manufacturing. Now is thetime to re-envision how things are created, introducing more agileand sustainable solutions. For example, planes need to be stronger,
but lighter. Automakers, meanwhile, are drastically reducing thenumber of required parts and examining the use of advanced polymers
as they shift to electric vehicles.
To make this happen, products need to reach consumers much faster– with shorter supply chains and lighter carbon footprints. Localized
manufacturing, powered by 3D printing, enables on-site production
based on global, digital networks and virtual supply chains. The new
digital supply chain accompanied by additive manufacturing can
support growth for new business models with sustainability objectives
and targets.
We know this is possible based on our recent experiences. During
COVID-19, we witnessed less travel and a disruption of the supply
of goods, creating a lack of available inventory. In turn, theadvantages of additive manufacturing took center stage.

Section V

Governance

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About This
ReportOur technology enables a readily and locally available supply chain,with real-time production of products across applications and fields.
And our solutions are not dependent on mobility, delivery or travel,
thanks to the digitalization of the upfront design process and its unique
technology. Several health sector use cases emphasized theimportance of Stratasys for the global community. Despite thedifficulties caused by the pandemic, Stratasys delivered andimplemented solutions across the global healthcare value chain.
Furthermore, under the direction of our CEO, Dr. Yoav Zeif, who had
only recently stepped into his position, we adapted ourselves
throughout the pandemic to innovate and introduce a new strategic
direction. For Stratasys, the pandemic enabled us to continue toinnovate. By working with more restrictive supply chains, we
proved that additive manufacturing is becoming more essential
for our changing world.

4.1 COVID-19: Global OutreachAs the COVID-19 pandemic and crisis spread, Stratasys supported
hospitals, doctors, healthcare professionals, governments, and patientsworldwide. We leveraged our industry-leading channels andinnovative spirit to harness our technology and expertise,providing solutions that protect and save lives.

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About This
ReportHOW STRATASYS TECHNOLOGY TOUCHED AND SAVEDLIVES DURING THE COVID-19 PANDEMIC
FranceWe supported the AP-HP
Assistance Publique – Hôpitauxde Paris with 60 industrial-grade
FDM printers advancing the frontline production of vital protective
medical equipment for brave
hospital workers

IsraelAt our Israel headquarters,
our innovators quickly
responded to local needs forface shields and respiratory
machines. we also supported
POC for a fast COVID-19 test

United States
We leveraged our network, creating
the largest global coalition for
3D Printing parts and solutions
to fight COVID-19 around theworld. Hundreds of companies
received supplies from Stratasys,and offered their printing andmanufacturing capacity to cometogether and support the global
healthcare community. With over
330,000 shields needed monthly
just in the US, Stratasys’ impact
was massive

Spain
Our Spanish reseller
PIXEL SISTEMAS andour customer TKNIKA
printed disposable faceshields on our F450mc
for medical personnel
use in hospitals

Hong Kong
In Hong Kong we
worked with the
Polytechnic University
to use our autoclavable
ULTEMTM material toprint face shields toprotect hospital workers

Japan
We modified our designed
face shields to the Japanesestandard. We then not only
printed the face shields, butalso collaborated with a local
customer and created moldswith our PolyJet technology, toenable mass production

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SocialImpactPowered by our groundbreaking technology, Stratasys served as a first
responder, developing and printing protective equipment for global
healthcare teams. We also created an internal fund that supported ourvarious initiatives worldwide. These included advancing healthcare
solutions and personal protective equipment (PPE), testing swabs, anddeveloping parts for life-saving medical machinery.
Through the challenges of this unprecedented global health crisis,
Stratasys had the opportunity to show the world what the future ofmanufacturing looks like. A true global revolution – one in which weand others are designing and delivering solutions that address customer
needs at scale and move the world forward in real time – had begun.

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Report4.2 COVID-19: People FirstThe pandemic also underscored our intra-organizational commitments.
Stratasys is guided by a People First approach, which was more
apparent than ever during COVID-19. From the outset of the pandemic
until today, management’s first priority has been the health and safety of
our employees. We balanced this with business continuity efforts and acontinued customer commitment, while setting a clear strategic
direction. This is not trivial. It worked in part due to our transparency andquick responses to ever-changing situations. We are a dynamic
company, flexible and adaptable in both our business and people
practices.
Management led our global work approach during the pandemic (home,hybrid, and capsules, as needed). We appointed internal teams andleaders, by region, to oversee COVID-19’s impact on groups in eacharea, and to align our activity with evolving situations and regulations in
all countries in which we operate. This required all of our corporate
functions and business units to fully cooperate in order to ensure
employee well-being and minimize uncertainty, while keeping businessdeliverables on track.

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Report4.3 Internal Governance During COVID-19
Shortly after our new CEO started in February 2020, Stratasys introduced a new strategy aimed at securing a strong future while
preserving our workforce and market leadership.
Always keeping in mind our main goal of employee health and safety, Stratasys ensured that managers and executives maintained constantcontact with employees, giving them a sense of security and keeping them informed. We also created an intranet site, and regularly updated
employees with the latest on COVID-19.
Stratasys conducted an internal engagement survey among employees that measured the effectiveness of our response to the crisis.
The results were high, even as we shifted all employees to 80% employment to avoid COVID-related layoffs.
In addition to connecting our people to our company, as in the pre-pandemic period, we made great efforts to assist employees working remotelyfrom home. We also carried out local initiatives to relieve the isolation and stress during the pandemic. For example, during several lockdowns andhome quarantines in Israel, Stratasys sent sports kits to employees’ homes, and held a virtual sports week to support their and their families’
well-being. We also held virtual lectures on healthy lifestyles and held a related competition with prizes.

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SocialImpactCHAPTER 5:
SUSTAINABILITY, SDGS,
MATERIALITY, AND
ENGAGEMENT
5.1 UN Sustainable Development
Goals – Stratasys Takes Action
In recognition of our role as a global company committed tosustainability, Stratasys is proud to introduce the UN Sustainable
Development Goals (SDGs) as the cornerstone of our purposedriven efforts. These global goals are designed to achieve a
better and more sustainable future for all. The 17 UN SDGs cover
the world’s most pressing social, environmental, health, andeconomic issues, with specific targets for each. Businesses canplay a critical role in achieving these global goals. We recognize
the opportunity they present to develop innovative solutions witha positive impact on society, while improving stakeholder
engagement, managing risk, and developing a shared language
for social and environmental sustainability activities.
Leveraging Stratasys’ position as a market-leading 3D printing
polymer solutions provider, we identified four SDGs that are
directly connected to our ability to make a significant impact. The
identification process was employee-driven, and our Employee
SDG Survey had a very high response rate from computer-based
employees, indicating high engagement on the topic. It was also
validated in our annual customer survey, underscored by
overwhelming alignment with the four SDGs.

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ReportAs a result of this process, we are prioritizing our sustainability initiatives around thefour SDGs, with measurable goals being designed as part of our 2022 work plan.

THE FOUR UN SUSTAINABLE
DEVELOPMENT GOALS (SDGS)
Quality Education»»

What it means for Stratasys: As acompany powered by the possibilities
of innovation, Stratasys is committed toensuring inclusive and equitable quality
education and learning opportunities foreveryone. Education is the key to creating
better society, technology and life.
Equitable and accessible education must
be prioritized to foster diverse
perspectives and engender innovation
across all sectors. This means ensuringthat everyone has the literacy and relevant
technical skills for rewarding careers.
What we are doing: Stratasys bothmarkets solutions to educators andadvocates for them. We are partnering
and working with local municipalities tointegrate additive manufacturing into theeveryday lives of children’s education.

Industry, Innovation andInfrastructure»

What it means for Stratasys:
Industrialization is a net positive for
economies around the world, creatingjobs and wealth. The same is true
when it comes to information andcommunications technology, researchinnovation, and support forentrepreneurship.

»

What we are doing: Stratasys aims
to have additive manufacturing benefit
people worldwide. We will do it byenabling designers, engineers andmanufacturers with local, on-demandcapabilities that empower companies
and organizations of all sizes toimprove quality of life everywhere.

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SocialImpactResponsible Consumption
and Production»

What it means for Stratasys: The
world continues to use natural resources
unsustainably. Ensuring sustainableconsumption and production patterns
includes the environmentally soundmanagement of chemical waste, thedisposal of waste, and the efficient useof production materials.

»

What we are doing: Additive
manufacturing, accompanied by greater
utilization of recycled and renewablematerials, can be a more efficient
production method. Stratasys iscommitted to innovation in reduced
waste, reused materials, and recycled
packaging.

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ReportClimate Action»

What it means for Stratasys:
Climate change continues to
exacerbate the frequency andseverity of natural disasters, even as
global warming grows and too little isbeing done to move toward net-zerocarbon emissions. These targets will
be easier to achieve by reducing the
movement of product parts aroundthe world, and by using more
efficient, digital manufacturingmethods, among other steps.

»

What we are doing: Stratasys iscommitted not only to reducing ourown carbon footprint, but also to
making it easier for our customers to
do so as well.

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5.2 Identified Stakeholders
We have identified a number of key
stakeholders:»Academic institutions and AM experts»

Board of directors»

Customers»

Employees»

Investors, shareholders, and capital
market players»

Media personnel and analysts»

General public»

Non-governmental organizations (NGOs)
and/or CSR partners»

Partners»

Regulators, public policymakers, andgovernmental organizations»

Suppliers and service providers

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Report5.3 Stakeholder
Engagement
5.3.1 Communicating with our
Stakeholders
Stratasys prides itself on conducting an
ongoing dialogue with our stakeholders –customers, suppliers, partners, end users,
employees, and shareholders – around AM
innovation in order to drive an improved
circular economy.
We engage with our stakeholders through avariety of methods and channels, including
marketing materials, in-person/virtual
meetings, and ongoing contact related to our
supply chain and value chain.
Our engagement covers a wide range of
topics, and we encourage feedback and open
dialogue among stakeholders.

5.4 Materiality
Stratasys understands the significant impact
AM can have on ESG practices and climate
action. Given the importance of our ESG
journey, we have worked with external
consultants and experts to formulate an
extensive process that includes identifying,
selecting, and prioritizing the topics most
relevant to 3D printing.
In identifying the topics, we included an
external benchmark of the 3D printing ecosystem and a review of relevant global
standards as well as government andbusiness initiatives. We also conductedinternal research, including conversations andsurveys with stakeholders such as our seniorleadership, employees, and board of directors.
The matrix resulting from our materiality
assessment identifies and visualizes material
issues. Topics above the diagonal line areconsidered to be most important to bothinternal and external stakeholders, while thosebelow the line are less important yet still
significant to Stratasys.1
The material topics we identified are
represented in the following matrix.

1 Our material issues list includes definitions, corresponding GRI standard topics, and each topic’s boundaries.

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About This
ReportSTRATASYS MATERIALITY MATRIXStratasys - Materiality Matrix
Community
15

2

People21

4

Environment
Governance and Economy

71

Environment

3.00

12

28
6

3

26 22

27

19
2.00

14

16

13

29

30

18

23

31

24

20

17

Community

258

People5

1.00-

Governance and Economy

Importance to External Stakeholders

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1.00

Importance to Stratasys

2.00

3.00

1

Energy Optimization2

Sustainable Products

3

Water

4

GHG Emissions and Climate Change

5

Waste Management

6

Supply Chain

7

Circular Economy; Pollution &Biodegradability

8

Sourcing of Materials/Resources

9

Product Energy Efficiency

10

Conflict Minerals

11

Hazardous Materials and Chemicals

12

Diversity, Inclusion and Equal Opportunity

13

Human Rights

14

Respectful, Fair and Competitive Work
Environment

15

Employee Health and Safety

16

Product and Customer Safety17

Supplier and Supply Chain Labor Practices

18

Employee Training and Development

19

Customer Engagement and Satisfaction

20

Employee Engagement

21

Community Investment and Involvement22

Responsible Use of Technology

23

Community Development24

Responsible Marketing25

Privacy and Data Security

26

Ethics and Anti-Corruption

27

Governance

28

Transparency and Reporting

29

Stakeholder Engagement

30

Public Policy

31

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CHAPTER 6:
MEMBERSHIPSANDCOMPANYSTRUCTURE

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Report6.1 Organizational Structure

Yoav ZeifCEOStratasys is proud of its marketleading position, talent andexecutive team, which is marked
by industry experts and strategic
membership positions in notableorganizations.

Eitan
Zamir

Nava
Kazaz

Chief Financial
Officer

Chief People
Officer

Omer
Krieger
EVP Product &Solutions

Yossi
AzarzarRich
Garrity

Guy
Yair

Chief Operations
OfficerPresident
Americas

Guy
Menchik

Shamir
ShohamDick
Anderson

Nadav
GoshenChief Technology
Officer

VP Design

Sr. VP
Manufacturing

EVP Engineering& Software

President ROW

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6.2 Association Memberships

AMGTA –
Founding
MemberNational
Association of
Manufacturers (US)US-Israel
Chamber ofCommerce

America Makes

Minnesota
Chamber ofCommerce

Women in 3D Printing“Stratasys’ Founding Member status is criticalto our organization’s mission to advancesustainability in additive manufacturing as we
secure a selective group of market and industry
experts to represent and advance our work toreport on the environmental benefits of additive
manufacturing,” said Sherry Handel, Executive
Director of the AMGTA. “Our goal is to introduce
new lifecycle analysis research projects inadditive manufacturing that clearly measure
impact and increase the world’s understanding of
3D printing as critical to the global manufacturingindustry’s move towards greater sustainability.”
Sherry Handel, Executive Director, Additive Manufacturer
Green Trade Association

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ReportChapter 7

Chapter 8

Chapter 9

Products, Processes andSolutions Designed toLeverage Additive for
Improved Circularity andCarbon Footprint

Stratasys Scope 1 and 2 –Initial Baseline

Circular Economy &Meaningful Manufacturing

Chapter 8.1: Carbon Footprint

Chapter 9.1: Addressing the R’s at Stratasys

Chapter 8.2: Energy Consumption – Initial
Assessment

Chapter 9.2: Supply Chains

Chapter 7.1: Introduction – Mindful
ManufacturingTM

Chapter 8.3: Water and Effluent
Management»

Chapter 8.3.1: Managing Program
Effectiveness

Chapter 8.4: Water Related Impacts

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ReportCHAPTER 7:
PRODUCTS, PROCESSESAND SOLUTIONS DESIGNEDTO LEVERAGE ADDITIVE FOR
IMPROVED CIRCULARITY AND
CARBON FOOTPRINT
7.1 Introduction – Mindful ManufacturingTM
Given the shift of AM technologies to industrial applications, Stratasys’ broadpolymer 3D Printing portfolio introduces important personalized, economicaland sustainable value, especially when compared to traditional manufacturingmethods.
We are committed to developing an industry-leading offering that addresses
much needed climate action and other 21st-century sustainability challenges.
By introducing innovation to the 3D printing circular economy, we enableproduction and manufacturing featuring:»

Improved and optimized supply chains»

Less waste»

Less energy consumption»More recycling"We understand the game-changing
impact additive manufacturing can haveon driving improvements that introduce
more sustainable manufacturing. The newworld economy, post-COVID, will rely on
this technology and its power to innovate
and improve global supply chains."
Yoav Zeif
CEO, Stratasys

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At Stratasys, we call the rethinking of how wecreate and produce parts and products “Mindful
ManufacturingTM.” It’s where traditional processes,
parts and supply chains are redesigned. It’s
where thoughtful mass production leads to moreenvironmentally friendly solutions. And it’s how
we make the world a better place.
We understand the far-reaching impact of ouractivity and our potential to affect entire industries
worldwide. That’s why we’re committed tomeasuring and improving the environmental
impacts of our operations and technologies, bothinternally and across our value and supply chains,while continuing to expand our business.
Our growth strategy dictates increased
production over time. We believe this growth canbe achieved without extending our carbon
footprint, due to our deep commitment tosustainability and the planet. In addition, we knowthat our business activity, along with our reachand impact, will expand. We are also committed
to positively improving the environment throughour global network of partners and leading
installed base.
There is great value in the changes made within
and throughout our operations, and the potential
for impact is unlimited. Each incremental shift in
our offering can significantly impact a myriad ofindustries from aerospace and healthcare toautomotive and consumer products.

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ReportRethink!

ReduceReuse

RecycleRepair

Repurpose

Redesign

It is our mission to translate our leadership in 3D printing into mindful business applications
for our customers – where less waste is produced and more value is derived from the digitalprocesses at the core of our manufacturing solutions. Sustainability is a comparative practice.
While AM is considered more environmentally friendly than traditional manufacturing
processes, this is not frequently measured. It is our commitment to co-create theresearch and case studies needed to bring the data and proof points to theforefront to demonstrate the sustainability of 3D printing.
Products created with additive manufacturing technologies can reduce material use – both in
throughput and output – while maintaining essential characteristics such as strength, quality
and reliability. Thanks to Stratasys, a single part made up of multiple components can be
designed and manufactured as one holistic part – further reducing a heavy dependency onnatural resources like energy and materials.
By definition, AM is a more effective and efficient manufacturing process that helps reduce
environmental footprints. Most traditional manufacturing techniques are based on subtractive
techniques (i.e. chipping away at raw materials so a product emerges), which creates wastethat accumulates in our landfills. In contrast, the additive process’ environmental strength lies
in its ability to produce products and parts layer by layer, on-demand, with no molds or
carved away waste.

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ReportDigital global manufacturing that leverages 3D printing capabilities
brings additional inherent benefits. It enables a digital supply chain
rather than a physical one – one that moves nearly at the speed oflight, with virtually no transportation logistics or carbon footprint. And it
helps us make products lighter, stronger and individually tailored toeach application to deliver environmental and economic savings,
reducing oversupply, making inventories obsolete, and removing theneed for unnecessary physical product iterations.

CHAPTER 8:
STRATASYS SCOPE 1 AND 2 –INITIAL BASELINE
Our ESG strategy is backed by our commitment to climate action andresponsible consumption. We believe that industry innovation andeducation advance our ‘Mindful ManufacturingTM’ mission. We know thattrue impact can only be achieved through deep data collection, yearover-year measurements, and ongoing improvement.
The biggest challenge in addressing 3D printing consumption of natural
resources is the lack of industry-wide data and research. As a disclaimer,
this initial Stratasys report provides transparent yet lean data on our
Scope 1&2 internal operations. We understand that our ESG efforts andcommitment require more detailed information regarding our global
activity, including the eventual inclusion of Scope 3 data collection. Suchinformation will better reflect the impact and improvement that 3D
printing and Stratasys have across industries and geographies

worldwide. The baseline presented in this report serves as thefoundation of our future ESG activity, and demonstrates our data-based
approached to doing better all the time. This will guide our decisionmaking and global activity as we go forward.
The first step in our Stratasys sustainability journey towards improved
climate impact and responsible consumption is assessing our footprint.
The next step is to implement our goals and make adjustments
regarding the consumption of resources such as energy, water, waste,and carbon.

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To that end, we intend to establish a Stratasys“scorecard” to help us quantify our business’
footprint based on various measurements (e.g.
per employee, per part). Our goal is to continuously improve in our measurement capacity.

Stratasys Scorecard
Practice
1. Bill data: Normalized data from electric,
natural gas, water, and waste bills fordetermining cost drivers such as weather,
unit price, usage, and fees.
2. Equipment and service inventory: Highconsumption assets such as heating,ventilation and air conditioning (HVAC),

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Reportlighting, water, and waste equipment.
Waste inventory is based on service-level
details such as pick-up frequency,
container size, and fees.
3. Energy mix: Current supply contracts
and market-specific opportunities forassessing an energy procurement mix ofbrown power (fossil fuel-based) versus
green power (renewable energy-based) as
well as the short-/long-term benefits ofgreen and alternative energy options.
4. Site audits: Site walks (Gemba’s) coupledwith waste audits to identify simple cost
reduction fixes in energy, water, and waste– often requiring minimal additional
expense.

8.1 Carbon Footprint

5. Greenhouse gas emissions: US EPA(GHG), EU regulations, imminent carbon
taxes, and investor demands – some ofthe drivers for businesses to begin
calculating and disclosing greenhouse gas
emissions.
6. Regulations: Regulations along withinternal standards that govern how
Stratasys locations consume energy andwater, decide what is thrown away or
recycled, and even package products.
7. Peer benchmarking: Key factor
comparison of energy intensity, diversion
rates, withdrawal, effluents, and goalsvis-à-vis others in our industry.

The Stratasys environmental strategy focuses on bringing value
to our customers, through Scope 3 impact. This includes
improved circularity that deliver economic value, too with
reduced footprints through Design for Additive Manufacturing(DfAM) and Design for Environment.

considered indirect as they are a consequence of our activities, but
actually occur at sources owned or controlled by another organization.
These emissions are calculated from consumed electricity at our
manufacturing sites, offices and warehouses. In the future, we intend to
expand data collection and disclosure of these scopes and of scope 3
emission, which encompasses all other indirect emissions throughout
our value chain.

Below is Stratasys’ first Carbon Footprint Assessment. Scope 1 reflects
direct emissions, from company-owned and controlled resources, as adirect result of a set of company activities which primarily comprises
gasoline used for company vehicles as well as emitted natural gases.
Scope 2 reflects indirect emissions generated from acquired andconsumed electricity, steam, heat, or cooling. These emissions are

Stratasys’ operating activities from owned facilities and purchased
electricity (Scopes 1 and 2) are based on 78 emissions. Their sources
include manufacturing facilities and machinery, offices, operation plants,
corporate automobile fleets, and electricity consumption at ourfacilities. All told, our measured emissions generated 13,640 tons
CO2e (equivalent) in 2020.

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ReportScope 2 emissions for 2020 totaled 12,278 tons. Theseemissions are made up of electricity usage at our
manufacturing sites. Some 77% of the Scope 2 emissions
came from North America and the remainder from Israel.
There has been a steady decline in Scope 2 emissions from2018 to 2020. The decrease in energy consumption from2018 to 2019 was due to company-wide projects that
increase energy efficiency, including upgrading lighting to
LED technology and upgrading machinery to more efficientmodels. A large part of the reductions between 2019-2020
resulted from COVID-19 restrictions and an increase inworking from home, as well as the continuation of efficiency
projects in 2018.

Scope 1 emissions in 2020 totaled 1,362 tons. Nearly the entirety of our
Scope 1 emissions monitored came from the use of gasoline for company
vehicles in Israel. The remaining emissions came from natural gas anddiesel. The decline in Scope 1 emissions from 2018 to 2020 is due to adecrease in the number of leased cars and the demand for cars during theperiod. The reduction from 2019 to 2020 was more dramatic due to reduced
travel amid COVID-19 restrictions.
*Data is based primarily on 2020 figures to set a baseline for future comparative improvement measures.

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ReportIn 2021 we installed 589 solar panels in our
Israel manufacturing facilities, to support ourcommitment to renewable energy and improve
our consumption. The panels are expected to
become operational in 2022. We are currently
examining the expansion of our use of solar
panels to additional Stratasys facilities.

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ReportGHG emission intensity indicates the amount of
GHG emissions per unit of activity, output, or any
other organization-specific metric. Our GHG
emissions intensity calculation – that is, the relative
intensity of our Scope 1 and Scope 2 emissions
divided by our revenues – uses 2018 as the baseyear for comparing future calculations. GHG emission
intensity helps to contextualize our efficiency andallows us to understand where we are relative toother companies. It serves as a point of comparison
for tracking the intensity of our emissions overtime, helping us in accurately accounting the extent
of our environmental impacts.
There was a decrease in both relative CO2 torevenue and absolute GHG emissions from 2018 to2019. Revenues remained relatively consistent, while
operational energy efficiency projects and a decreasein company vehicle leasing led to a reduction inabsolute CO2e. From 2019 and 2020, despite areduction in absolute GHG emissions, relative CO2 torevenue rose by 10% due to a 2020 revenue
reduction as a result of the COVID-19 pandemic andchanges in production and inventory management.

KgCO2e / REV US $Absolute CO2e (KgCO2e/year)
REV (US $ in thousands)
Relative KgCO2e

2018

2019

2020

17,979,218

15,093,472

13,639,138

636,080

520,817

23.7

26.2

663,237
27.1*Data is based primarily on 2020 figures
to set a baseline for future comparative
improvement measures.

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Report8.2 Energy Consumption – Initial Assessment
To mitigate and create quantifiable goals, Stratasys is developing a baseline database of annual utility consumption per sq. ft expense to enable
more informed decision-making regarding efficiency improvements.
As part of this process, Stratasys’ facilities have begun to document electricity consumption.

Purchased Energy

Non-renewable fuelconsumed

Electricity

Type

Energy consumption in theorganization (GJ) – 2018

Energy consumption in theorganization (GJ) - 2019

Energy consumption in theorganization (GJ) – 2020

Diesel666

Petrol

11,591

10,296

7,348

Natural gas

13

13

13

Electricity

162,520

134,563

123,153

Total

174,130

144,878

130,520

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8.3 Water and Effluent
Management

waste discharge guidelines regarding
flammable, explosive, corrosive, andpetroleum products, as well as grease waste.

Water is a natural resource employed in the
3D printing process. We aim to implement thisfinite resource in a more circular fashion
across our facilities and products.

Other waste management: The following
waste types are likely to obstruct the flow inpublic sewers:»

Solid waste (including plastic)

From a product perspective, the polymer 3D
printing process sometimes involves anadditional element called “support,” which
physically supports complex structures during
the build stage. This element is eventually
washed off of the final part or product, leading
to water that is not always filtered or reused.

»

Ash

»

Sand

»

Lime

From a Scope 1 utility perspective, we canreport that Stratasys Americas primarily
purchases its water from city municipalities tomeet the standard needs of its office buildings
and sites. The majority of this water is used toclean parts that we produce, and its waste is
typically managed in one of three ways:

Each Stratasys site has a site manager who is
responsible for ongoing employee training andmonitoring regarding wastewater
management and proper discharge
processes. All training is recorded, and the
EHS manager is notified in advance of any
upcoming changes in processes that may
impact the discharge permit. The sitemanager creates working tools to monitor andlimit the intentional discharge of untreatedcleaning tanks/detergents when necessary.
All of the following processes and procedures
come under an annual audit and review
process.

Industrial discharge: Most sites have anindustrial discharge permit that relates to:»

Discharge limitations/prohibiteddischarges for which there are monitoring
and reporting requirements»

General permit conditions»

Specific permit conditions

Waste discharge: All sites follow prohibited

8.3.1 Managing Program Effectiveness»Equipment»

Written procedures»

Additional training needs»

Communication»

Testing

8.4 Water Related Impacts
Stratasys Americas’ facility teams review andreport water consumption in some states. We
are focusing our initial efforts on operations ofscale and aim to extend future efforts toadditional locations and stakeholders
alongside a commitment to addressing water
usage in a more circular fashion.
Stratasys is continuously looking for new ways
to reduce water consumption and reuse
elements of the effluents both in our products
and across our processes.
Water Quality Criteria
Stratasys has adopted water quality criteria
for various locations in one of three ways:»

Adopting EPA recommended criteria»

Adopting unique criteria to reflect sitespecific conditions, or using otherscientifically defensible methods todevelop such criteria»

Designating uses that are consistent with
the Clean Water Act

Currently, a regulatory municipal agency
manages all of our monitored sites.

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ReportCHAPTER 9:
CIRCULAR ECONOMY& MEANINGFULMANUFACTURING
3D printing is becoming a driver of the transformationin manufacturing. And Stratasys is committed tosupporting this effort at all touchpoints across theindustrial value chain and to the benefit of people andthe planet.
Employing 3D printing in production processes at key
points across the supply chain – reducing, recycling,
reusing, repairing, redesigning – and in the creation ofa more circular economy are where sustainability
takes center stage.
When we design products and parts from cradle tocradle, we take existing efforts and give them new life,
such as refurbishing and reusing canister materials
collected from our users. Cradle-to-grave efforts likerecycling are just as important.
Moreover, the 3D printing digital design process often
makes unnecessary physical products and part
iterations obsolete, thereby significantly reducing
waste, materials, and non-renewable energy.
We don’t have all the solutions, but together with ourcustomers and partners we aim to improve the life
cycle of our products and parts.

9.1 Addressing the R’s at Stratasys
We aim to support your businesses net zero goals andcarbon footprint reduction. Customers are invited toparticipate in our Recycling + Returns program. We accept
customers’ used cartridges, canisters, spools, print
engines, and containers for reuse or recycling.
With easy-to-follow return instructions and printable labels,
the comprehensive program makes it simple for customers
to identify those products that can be recycled, while
simplifying and reducing logistical activity, reducing waste,
and saving on space.

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Sustainability That Goes
Beyond Compliance

Section III

Environment

How it Works
In our Americas’ operations, customers start by
packaging canisters and cartridges and printing out
UPS labels for free shipping from the Stratasys
website. UPS picks up the packages and ships them
directly back to Stratasys headquarters in Minnesota
for recycling. Our on-campus recycling facility isstaffed by a team from Lifeworks, which places andmentors people with disabilities in jobs that serve thelocal community.
The Stratasys Recycling program is also offered in
Asia and Europe. And as part of our commitment toan improved circular economy, we are extending andexpanding eligible returnables, all the time.

Section IV

Section V

SocialImpactGovernance

Section VI
About This
Report9.2 Supply Chains3D printing enables on-demand manufacturing, which has the potential totransform complete supply chains and their related environmental impact.
Factory of the Future: 3D printing empowers makers to manufacture in real time
based on local needs, supported by a global digital network. This virtual factory
enables the design process to take place anywhere worldwide, while allowing fordelivery and production anywhere there is a 3D printer. With physical inventory
moving toward digital files, product precision, quality and reliability are notcompromised. This gives any designer and manufacturer access to goods with noheavy transportation and shipping requirements. Essentially, the files can be sent
electronically with no footprint, and then printed and consumed locally – according
to specific demand with no oversupply.

Traditional Supply Chains
What can I return?

Supplier
Network

Centralized
Manufacturing Site

Distribution
Network

The Factory of the Future
CAD

CAD

CAD

Global Digital
Network

On-Demand
Product
Design Files

3D Printers
and Additive
Technologies

Local Distribution(If Any Needed)

Customers

Customers

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Environment

Section IV
SocialImpactDuring the COVID-19 pandemic, Stratasys demonstrated how thisfactory of the future operates, creating a coalition of cloudconnected partners to print Personal Protective Equipment (PPE)at hundreds of locations across the globe for healthcare workers
at hospitals and local medical institutions. Entire networks of 3D
printers repurposed their production input and output virtuallyovernight to save lives.
In the near future, companies will upload part designs digitally andprint them on-demand in a global network close to the point ofconsumption in order to reduce reliance on carbon-heavytransportation methods. As additive manufacturing facilities
are replicated worldwide, it’s possible to envision a world
where the integration of digital and physical logistics
defines the future supply chain. This is, by definition,
sustainability at its best.
Today, industries spend billions of dollars moving partsaround the world – on ships, trains and planes – to places
where they are assembled and often re-shipped toconsumers. Existing AM adopters understand the value of thefactory of the future. Rail companies in Europe, such as Deutsche
Bahn in Germany and Angel Trains in the UK, are printing many of
their spare parts in close proximity to where they are needed. The
French Navy is testing it out on their ships, far from land. And as
we grow the scale of these applications, we increase our impact
on the global environment.
Additive manufacturing enables processes that generate lesswaste and use less energy, while creating high-performing parts
with a far shorter time to market. The 3D printing industry journey
we are spearheading involves harnessing sustainable AM
technologies in a mindful way and integrating them with a global
effort to innovate for a better tomorrow.

Section V

Governance

Section VI
About This
ReportI live in a remote location
in a remote country (New
Zealand) and like many
people during the pandemic
I have been required to workfrom home. Cloud based
CAD tools coupled with theStratasys J850 3D printerhave allowed me to keep
working and have reduced
the energy required forcommuting and liaising withteams of people plus theneed for operating a home,office and workshop. In this
100% digital workflow all
the mess happens inside the computer removing traditional
waste from analogue processes like casting, finishing andfabrication. Knowing the physical print will look exactly like therender with full control over colour, transparency and evenflexibility has been a creative revelation and allowed me tolive where I want and still access world leading, efficient andimportantly resilient technology.
Ross Stevens, Senior Lecturer,
Victoria University of Wellington

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Environment

Section IV

Section IV
SocialImpactSection V

GovernanceSocial Impact

Section VI
About This
Report47

Section I

LeadershipStatements

Section II

Section III‘Mindful Manufacturing’

Environment

Sustainability That Goes
Beyond Compliance

Section IV.1:
Employees
Chapter 10

Caring for
Employees During
COVID-19

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportChapter 12

Chapter 13

Employee Value
Proposition

Health and Wellbeing

Chapter 12.1: Engagement

Chapter 13.1: Worker Health
Promotion

Chapter 12.2: Employee
Attraction, Mobility andRetention»

Chapter 13.1.1: Health
Coverage

Chapter 10.1: Working From
Home

Chapter 12.3: Career
Development»

Chapter 13.1.2: Wellbeing

Chapter 10.2: Ensuring
Business Continuity

Chapter 12.4: Compensation &Benefits»

Chapter 13.1.2.1: Israel»

Chapter 13.1.2.2: US

Chapter 12.4.1: Minimum
Notice Periods Regarding
Operational Changes»

Chapter 13.1.2.3:
Worldwide»

Chapter 10.3: Keeping
Employees Informed and Up to
Date
Chapter 10.4: Preserving Our
Workforce
Chapter 10.5: Stratasys
Summer Camp in Israel
Chapter 10.6: COVID Superhero

Chapter 11

Diversity, Equity &Inclusion»»»

Section IV.2:
Community
Chapter 15

Corporate Social
Responsibility &Community Social
ImpactChapter 15.1: Innovation in
Education – Programs andPartnerships»

Chapter 13.1.3: Work-life
Balance

Chapter 15.1.1: Learning
by Making – Revadim
Project, Jerusalem»

Chapter 13.1.4: Holidays
and Vacation Days

Chapter 15.1.2: Makers
for Heroes»

Chapter 13.1.5: Parental
Leave

Chapter 15.1.3: HighTech Kids and FIRST»

Chapter 15.1.4: TIPE

Chapter 13.2: Occupational
Health and Safety

Chapter 15.2: Supply Chain(Direct Sourcing)

Chapter 14

Chapter 15.3: Innovation: A
Core Value – Our Stratasys
Inventors

Learning andDevelopment»

Chapter 14.1:
Professional Development– Expand Your View

Chapter 15.4: Human Rights»

Chapter 15.4.1: Conflict
Minerals

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Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportIV.1 EMPLOYEESCHAPTER 10:
CARING FOR EMPLOYEESDURING COVID-19
We exemplified our People First approach during COVID-19 by, first andforemost, ensuring the health and safety of our employees while
continuing to run an efficient and growing business. The pandemicpresented the industry with countless challenges, including choicesaround transparency, communication, and decision-making processes.

10.1 Working From HomeAs a forward-looking, dynamic, and adaptable company, Stratasys was
well-equipped to embrace flexibility throughout the pandemic. Most
importantly, we pivoted whenever possible to a work-from-homeframework for the sake of our employees and our communities. For
those employees who could not work from home due to the nature of
their responsibilities, we created ‘work in capsules’ and practiced social
distancing.
We recognized that managing teams that are working from home is a
new challenge for all of us, so we trained and supported our managers
to help them best manage their teams remotely. The training not only
centered around management issues, but also aimed to connect
employees and their families to the company as much as possible inorder to minimize feelings of isolation and loneliness.

We identified the many advantages of working from home, and adopted
a hybrid working model that will continue after the pandemic. By
reducing the need to commute to work, we reduced our carbon
footprint. We also better support our diverse workforce this way andfurther engage and retain our talented workforce.

10.2 Ensuring Business Continuity
In parallel, we deployed a Business Continuity Plan (BCP) to closely
monitor, map, track, take action, and communicate developments in acentrally aligned manner. We carried out all relevant communication anddecision-making according to regional and global factors, and at all
managerial levels, to ensure efficient, real-time processes. This showed
our ‘People First’ approach in action. It also allowed employees to best
demonstrate our “Be customer first” value, as we minimized internal
uncertainties so people could focus on customer needs and deliver onbusiness commitments.

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10.3 Keeping Employees
Informed and Up to Date
We also created an intranet webpage andregularly updated it with COVID-19
information and company policies to keep
our entire workforce well-informed on
evolving policy changes.

Section IV
SocialImpactSection V

Governance

Section VI
About This
Report10.4 Preserving Our Workforce
Stratasys worked hard to preserve our workforce throughout the early months of the pandemic bylowering work to 80% capacity until the end of 2020. This strategy enabled us to avoid COVIDrelated layoffs while still ensuring business continuity. We also prioritized employee well-being. For
example, in the Americas region we provided mental health seminars on topics such as
depression, loneliness and social connections, during the height of the pandemic.

10.5 Stratasys Summer Camp in Israel
Stratasys Israel hosts a week-long subsidized summer camp during the last week of August forthe children of Israeli employees. We continued this tradition in 2020 by offering a virtual summer
camp, and resumed the in-person camp in 2021. The program gives working parents a safe andfun option for their children in the summer, while providing them with peace of mind during the
workday, and we didn’t compromise on this cornerstone of our DNA during COVID summers, too– when the program provided relief and fun for our teams and their families.

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SocialImpactSection V

Governance

Section VI
About This
ReportCreating the Right Employee
Environment
Stratasys’ 30+ years of leadership in 3D
Printing is based on the talent andexpertise of our global teams. Innovation
is a cornerstone of our DNA and our
promise to our customers.
We invest in our people and together wemake Stratasys a great place to work. We
strive for a work environment where our
employees can grow and develop, andwhere their dreams and ideas can impact
the future.

10.6 COVID Superhero
At the height of the pandemic, we initiateda global competition. Our employees’ kids
were invited to draw their COVID
superhero. The winners of the competition
had their drawing converted to a CAD fileand 3D Printed. The engagement andinnovation triggered televisionappearances and local prizes - building
pride within our teams and positivity andempowerment for kids all around theworld. See the clip and get inspired.

Photo Credit: Nadav Goren

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CHAPTER 11:
DIVERSITY, EQUITY, &INCLUSION
Stratasys is committed to providing equal employment
opportunities to all qualified candidates. We do nottolerate discrimination against anyone on the basis of race,color, religion, age, gender, sexual orientation, marital
status, disability, ethnic origin, or nationality. We are also
committed to providing a work environment free of all
forms of harassment.
Our company prioritizes diverse employment wheneverpossible. Currently, 26% of our global workforce are
women. The percentage of women on our board of
directors, 25% (two of eight members).

26%

74%

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportStratasys encourages the acceptance and accessibility of diverse populations andworks with civic associations to promote the employment of diverse populations.
We produce a personalized plan for each employee with special needs, and ourcompany facilities are aligned to meet accessibility regulations. In addition,
Stratasys conducts mandatory, annual anti-harassment and sexual harassment
training for all employees, reinforcing our commitment to providing a safe andinclusive workplace.
Under the leadership of our Chief People Officer, we established a diversity, equity
and inclusion (DEI) committee in 2021. The committee has planned manager
training, an increased emphasis on providing diverse candidate slates, andregional activities relevant to DEI in local countries. The objective is to promote awork environment in which employees can be authentic and to create a culture ofcelebrating the differences that promote our growth and innovation.
Stratasys set a baseline for measuring and managing a more diverse workplace.
Our journey begins with the mapping of those identified as women and men, withthe goal of monitoring and improving equity in terms of salary and representation.
We mapped ratios by level and by compensation to create transparency andvisibility of year-over-year trends, to secure diversity and drive improved inclusion.

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Ratio of Womenand Menby Managerial
Level and Age
Trends YoY by Age andRepresentation of Women in
General Population

Section IV
SocialImpactSection V

Governance

VP andabove

MiddleManagement

Category

2020

Under Age 30

0%

0%

0%

0%

Ages 30-50

27%

73%

25%

75%

Over Age 50

11%

89%

19%

81%

Total

20%

80%

23%

77%

Under Age 30

18%

82%

0%

100%

Ages 30-50

29%

71%

29%

71%

Over Age 50

18%

82%

17%

83%

Total

26%

74%

26%

74%

Under Age 30

29%

71%

31%

69%

Ages 30-50

28%

72%

27%

73%

Over Age 50

22%

78%

22%

78%

Total

26%

74%

26%

74%

26%

74%

26%

74%

Total

*Data is based primarily on 2020 figures to
set a baseline for future comparative
improvement measures.

About This
Report2019

Nonmanagers

Year-over-Year
Change, 2019-2020

Section VI% Women% Over 50% 30-50% Under 30

VP and
above

2%

-1%

1%

0%

MiddleManagement

0%

-1%

3%

-2%

Nonmanagers

0%

1%

1%

-2%

Overall YoY

0%

1%

2%

-2%

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Section IV
SocialImpactStratasys is active in community programs that help encourage andpromote the employment and career development of women. We
work together with the Breaking the Glass Ceiling initiative to mentor
the next-generation female workforce. We also work with STEM
programs to promote science education for girls to make the worldof 3D printing more accessible to them, and to promote technology
careers for women.
Stratasys created a partnership with Jerusalem Municipality toadvance Quality Education and close social and other gaps throughshared ‘learning by making’ programs. The “Revadim” program in
Jerusalem is a ‘3D Printing in School’ initiative that promotes newand equal learning opportunities through technology, acrosssectors, religions and socio-economic layers. Stratasys deployed
200+ printers, in this diverse city to schools in all four of Jerusalem’s
education tracks: state-secular, state-religious, independent-religious
and Arab. Teachers at these schools are trained by the Jerusalem
Education Administration and Stratasys staff to implement Stratasys
technologies in the classroom through Project Based Learning(PBL), including STEM learning and the arts. The pilot was a
success from a pedagogical perspective; empowerment andupskilling were only part of the outstanding results.

Section V

Governance

Section VI
About This
Report54

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Environment

Section IV
SocialImpactCHAPTER 12:
EMPLOYEE VALUEPROPOSITION
12.1 Engagement
As a leader in global polymer 3D printing, we are committed to andinvested in making Stratasys a great place to work. Employees areproud to work at Stratasys, the industry-leading, global polymer 3DPrinting Company. We offer the opportunity for employees to develop
their careers in an environment where groundbreaking solutions
and technologies are changing the face of design, manufacturing,and healthcare.
At Stratasys we conduct global employee engagement surveys toensure our company, business units, and teams collect on-going
feedback. The survey’s goal is to listen to our employees, support
ongoing improvement, and maintain our strong employee value
proposition, over time.
We are especially proud to report that during the COVID-19 pandemic,
we attained an 86% response rate to our annual survey andmaintained, even slightly improved, our 60% engagement score. This
past survey identified the company’s biggest strengths as follows:
1. Management of COVID-19.
2. Collaboration between units.
3. Organizational change management.
4. Senior leadership movement and work done by direct managers.

Section V

Governance

Section VI
About This
ReportAccording to the survey, our then new CEO, leadership team andstrategy were well-received, and managers addressed employee
concerns satisfactorily when navigating the crisis during very uncertain
times, including a deep business transformation.
It is important to also note the lowest scores were for talentmanagement and career opportunities, which are now the focus of ourworkplan going forward.

Engagement improved despite COVID-19
Overall Engagement Score is 60%

60%
Our new Stratasys strategy was designed in collaboration with
employees (95 people involved, 6 workshops); they identified thecompany’s growth engines and future business directions. Our nimble
organizational structure allows employees to more directly impact thoseareas under their responsibility. For example, with innovation as a corevalue, it is important to note that each employee is encouraged to
introduce new solutions and patent them under the company’s name.

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Section IV
SocialImpactSection V

Governance

Section VI
About This
Report12.2 Employee Attraction, Mobility 			and Retentionof interest through special projects and online/on-demand 		courses. In fact, many Stratasys learnings emerge from ouremployees themselves.

Stratasys has a structured practice and policy for identifying talent for
key positions and offers a wide range of incentives to encourage
employees to grow with the company. We offer a competitive totalcompensation and rewards package that includes recognition andrewards, targeted bonuses, long-term equity packages, and careerdevelopment tracks. We also offer mentorship programs in which
senior managers guide the next generation as they advance theircareers at Stratasys.

We also maintain an extensive recognition program to encourage
excellence and to help engage employees. The program is divided into
five categories and is highlighted by an annual award ceremony. We
grant an annual CEO award, quarterly awards in which fellow
employees choose the winners, and additional ongoing awards
and recognitions.

We pride ourselves on our broad learning and development offerings,
which enable employees to advance themselves professionally in areas

Every year, Stratasys recognizes employee seniority by marking those
who have been at the company for 5, 10, 15, and 20 years. The
average seniority of our employees is 6.1 years.

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Section IV
SocialImpactSection V

Governance

Section VI
About This
Report12.3 Career Development
We invest in our employees, so they know that Stratasys is a place to grow,develop and create new opportunities. We offer an extensive careerdevelopment system that includes personal development planning, promotions,and internal mobility, and an annual talent program for executives andoutstanding employees.
Stratasys offers a customized training program for employees in coreprofessions such as marketing, product management, and applicationengineering. Stratasys also offers training for new hires and managers, as wellas to support core processes such as the development and performance
process, interpreting engagement scores, and compliance topics.
We also hold professional development workshops and lectures with leading
experts in their field.

I started my journey at Stratasys over six years
ago and already have had the honor of serving inthree professional positions on different teams.
I am thrilled to work at a company that not
only encourages its employees to learn, grow,experiment, and take chances, but also rewards
them for so.
Through my years at Stratasys, I took part in,and even led, several major projects. I always feelincluded, equal and valued.
Einav Halotzi, Product Manager, Dental

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Section IV
SocialImpactSection V

Governance

Section VI
About This
Report12.4 Compensation & Benefits
Compensation & Benefits​We recruit, motivate, and retain talented employees.

As a company committed to People First, we work to ensure that ouremployees are fairly and competitively rewarded and compensated fortheir contributions.
We seek to attract and retain top talent. Benefit and retirement plans aredefined and delivered by each country. For example, we offer medical
insurance and a 401(k) savings plan for employees in the United States. In
Israel, Asia, and Europe, part-time and temporary employees receive thesame benefits as full-time employees. In the US, part-time employees
working less than 30 hours per week as well as temporary employees
receive different benefits compared to full-time employees.

»

We believe in “pay for performance” where contribution directly
impacts rewards.

»

We hold our senior management accountable to success bymeasuring and paying for results»

We ensure our package is fair and competitive.

»

Our employees are key to driving business success:»

Stratasys drives company, personal and professional growthby recognizing and rewarding excellence.

»

Stratasys offers its top talent opportunities: advancement,
development and long-term incentives to drive mutualcommitment to business success.
Stratasys compensation practices aim to securestrong performanceby motivating teams and individuals throughout theyear and over time.

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PROGRAM (ON- GOING)» CEO Excellence, peer-2-peer,
mgr-2-EE, TeamPURPOSE» Rewards for specific projects
and achievements
ELIGIBILITY» All employees

PROGRAM (SELECTIVE)» Restricted Stock Units» Performance RSUs
PURPOSE» Tied to shareholder value» Long term retention
ELIGIBILITY» Talent & key employees, senior leaders

Section IV
SocialImpactRecognition

EquityStratasys maintains a clear and managed equity policy in which we
allocate shares with partial annual maturity over four years to
employees who annually participate in share programs. Our
employee compensation policy also features bonuses based on set
goals and organized KPIs. While Stratasys did not meet our initial2020 median targets due to COVID-19 disruptions, we adjusted ourH2 2020 targets to the new reality and successfully met them. As aresult, we were able to distribute partial bonuses in 2020 – not asmall achievement in unprecedented times of global businessturndown. In 2021, Stratasys demonstrated a return to growth
distributing a full bonus according to plan to all eligible employees.
Results came in above target for the majority of business units andas such variable pay budget was increased (above 100%) andallocated according to our ‘Pay for Performance’ practice.

Section V

GovernanceBase Salary

Variable
Pay

Section VI
About This
ReportPROGRAM (Driven by Market)» Merit and Promotions
PURPOSE» Market Alignment
ELIGIBILITY» All employees

PROGRAM (ROLE BASED)» Bonus» Sales Incentive
PURPOSE» Pay for Performance» MBO - KPI Driven to Promote Business FirstELIGIBILITY» All employees by role, aligned to financial
performance

12.4.1 Minimum Notice Periods Regarding Operational
Changes
We adhere to local laws and regulations providing employees andtheir representatives minimum notice prior to implementing
significant operational changes that could substantially affect them.
For example, when we close or divest from a location or terminate
20% or more of its employees in the US, we provide 60 days’ notice(WARN Act). Elsewhere, we typically give one month’s notice incases of termination, with exceptions of 2–3 months in somecountries and designated positions.

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Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportCHAPTER 13

13.1 Worker Health Promotion

Health and Well-being

13.1.1 Health Coverage

Stratasys recognizes that the health and wellbeing of our people andteams is fundamental to our business success. That’s why we invest inadvancing an offering that provides a variety of health and wellness
programs, services and support.
We implement our vision based on a “glocal” (global/local) approach inorder to deliver more personal and culturally aligned programs.
During the COVID-19 pandemic, in particular, we implemented
additional special employee safety, health and well-being programs. For
example, we adopted flexible work schedules and locations and offeredwebinars promoting a healthy lifestyle. We also launched an intranet sitewith local and global COVID-19 updates to create an accessible andreliable information source. This provided more clarity, certainty andcapabilities, enabling quick adherence to local regulations andpractices.

Each Stratasys location offers medical insurance coverage based onwhat is customary in the country in which it operates. In countries withnational insurance requirements, Stratasys may offer a supplementary
private medical insurance program (e.g. at major locations in the US,
the UK, and Israel). In addition, employees in the US can participate in adental and vision insurance program. US employees can also choose
from among various types of coverage and add dependents. In most
locations, we cover disability insurance and workers’ compensation for
all employees. In addition, we maintain a wellness program in the US
that addresses physical, mental and financial well-being that will be
expanded to other locations in the future.
We maintain the confidentiality of workers’ personal health information.
In the US, protected health information (PHI) is confidential and stored ina separate filing system used for health-related documents that isaccessible only to certain HR personnel. Outside the US, where aseparate system is not required, all health-related documents are
confidential and kept within the employee’s HR file.
We provide preventive care services to our employees around theworld. Employees in the US are eligible for preventive care benefits
based on the Affordable Care Act (ACA).
We also invest in preventive medicine in Israel. All employees over theage of 40 are eligible for a health survey – a series of medical tests
aimed at discovering disease or risk factors before the appearance ofsymptoms to promote early detection and treatment.

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13.1.2 Well-being
13.1.2.1 Israel
Stratasys promotes a healthy lifestyle for
employees, hosting health days throughout
the year. Our Israeli sites include gyms andregular exercise classes (e.g. Pilates). We also
subsidize sporting activities and memberships
to external gyms.
In addition, we support team sports throughinitiatives such as sports days, runninggroups, and competitive races. We continued
this commitment during COVID-19, including
moving exercise classes to web platforms at
no cost, and organizing remote sports days
for company employees and their families.
Management set a personal example byactively participating in these activities.
During the second quarantine in Israel, we
held the Stratasys Great Sports Challenge toencourage employees to maintain a healthy
lifestyle and spend quality time with theirfamilies. Employees received at-home sports
kits, including a smart pedometer (that syncs
to a mobile phone), weights and equipment.
The devices were adjusted to reflect the
maximum legal distance the population could
travel to from their home, enabling employees
to compete while complying withgovernmental restrictions. The competition
featured a number of running, walking andSection IV
SocialImpactSection V

Governance

Section VI
About This
Reportcycling activities, across varied distances, forboth individuals and families.
13.1.2.2 US
Stratasys’ well-being strategy in the UnitedStates focuses on:»

Financial Health»

Mental Health»

Physical Health»

Relationships/Community Health Within
this context, we offer employees a rangeof activities, and publish a newsletter
promoting a healthy lifestyle.

13.1.2.3 Worldwide
The company’s intranet site is personalizedaccording to our employees’ locations andoffers access to information supporting ahealthy lifestyle.

13.1.3 Work-life Balance
Stratasys’ organizational culture supports abalance between work and personal life. Thisis reflected in country-specific initiatives thatvary across countries, such as the allocationof paid working hours for volunteering, sports
and other activities. The company provides
paid sick days starting from the first day andadditional leave days beyond that required bylaw, including for marriage and parental leave.
We also provide additional sick leave flexibility

to cover COVID-related absences. In addition,
we hold work-life balance and parenting
workshops in Israel.

13.1.4 Holidays and Vacation Days
Stratasys offers employees more vacation
days than are required by law in each countryof operation. During COVID-19, the company
allowed employees to accrue additional
vacation days to which they were entitled tomaximize flexibility.

13.1.5 Parental Leave
Our employee base is made up of diverse andglobally dispersed people and teams withunique and personal needs. We recognize
and respect family and life cycle events, andhelp our employees celebrate these special
occasions.
We grant parental leave in all countries inwhich we operate according to local law andpractices. In addition, we provide 3 extra
parental leave days to men at the company’s
expense, while giving them the option to takepaternity leave in accordance with local laws.
Just this year, to promote inclusion, equity
and diversity, we rolled out equal parental
leave in Israel, announcing 3 additional weeksof time off, at the company’s expense, foreither parent to61Section I

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Section IV
SocialImpact13.2 Occupational Health and Safety
Occupational health and safety for our employees is at the topof our People First agenda.
We maintain a safety management system in accordance with ISO
45001 requirements. Our safety officer directly reports to the facilities
and operations leader and is responsible for safeguarding the healthand safety of the entire organization, including employees, contracted
workers, and external contractors. We also have a safety committee
responsible for Reviewing safety and health policies and procedures,
reviewing incidents involving work-related fatalities, injuries, illnesses ornear misses related to occupational health and clinical safety, reviewing
employee complaints regarding safety and health hazards related tooccupational health and clinical safety and preparing data for ourannual management survey. The group meets at least eight times a
year, and once a year it prepares a safety management plan, including
a budget, that is approved by a member of management.
Stratasys' commitment to safeguarding the organization is outlined in
our Safety, Health, and Environmental Protection Policy published inJuly 2021. As outlined in the policy, our objectives are to go beyond theletter of the law to meet all relevant safety requirements and regulations,and to proactively reduce the risk of work-related injuries and illnesses.
Every new employee is required to participate in local safety training.
We also offer training to employees who are exposed to specific workrelated hazards, hazardous activities, or hazardous situations. Any risks
at the workplace are reported and handled by relevant authorities, while
no proceedings are taken against the employees.

Section V

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Section VI
About This
ReportRelevant departments carry out and validate their risk assessment
annually. We also conduct risk assessments for new materials,
processes or equipment, as needed. Our project leaders, safety officer,
and safety trustees carry out all processes to ensure the highest
possible quality.
Employees can access our online maintenance system to reporthazards that may lead to injury. Our safety officer is available andaccessible to all employees, and there are safety trustees at our sites
who represent workers on each floor.
We maintain a work accident procedure that requires the reporting ofan accident within 72 hours. To report an accident, an employee must
fill out a form and send it to the safety officer, who distributes it to all
relevant parties (e.g. HR, management, insurance company) for followup. The incident is investigated, and if the results indicate the need torefine, address or refresh matters, then the safety officer formulates
recommendations to the appropriate individuals (e.g. people at thefacilities, person responsible for a particular company policy).

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SocialImpactSection V

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About This
Report2020 | Israel Employees Incident Tracking

Common types of incidents

Electrical problem
Explosion
FireTransportation and vehicle
related accidents directly related
to the performance of work
Commuting, where the means oftransportation was organized by
the company
Slips, trips, and falls
Caught in or struck by moving
machinery or objects
Leakage, breakage, bursting, oroverflow
Confined spaces
Workplace violence
Shock or fright
Noise
Harassment

Recordable Injuries Recordable Injuries
not causing
causing permanent
permanent damage, damage, or where
where employee
employee lived but
recovered fully in 6 did not recover fully
months or lessin six months or lessTotal Recordable
injuries not resulting
in death

Recordable injuries
resulting in death"Close calls" withhigh potential tocause recordable
injury or death

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

2

0

2

0

0

6
0

0
0

6
0

0
0

0
0

0

0

0

0

0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

1
2
11

0

0

Other (complete below)
Car Accident
Exposure to a chemical
Totals12
110*Data is based primarily on 2020 figures to set a baseline for future comparative improvement measures.

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SocialImpactCHAPTER 14
Learning and Development
Make learning a part of our Stratasys DNA to promote
excellence on an individual and organizational level.
We are committed to making advanced and structured learning
solutions accessible in order to accelerate company
performance. We believe that in order to maintain our position as aninnovative company and market leader in AM, our employees should
always be learning and staying up to date with new developments,
knowledge and skills.
Our company and our employees are market leaders. We seek
knowledge and expertise to support our value of “Aim higher” – always
learning and improving. Often, the information
used in creating new learning platforms and employee development
programs stems from knowledge acquired from within Stratasys,
offered by our in-house experts. Our overall goal is to add value to ouremployees, and by extension, to our company. We are proud that ouremployees maintain extensive knowledge and expertise and that wehave a culture of knowledge sharing, within our company and acrossthe industry. Keeping this in mind and recognizing our overall goal, we
first turn to our employees when determining available internal learning
opportunities. This allows us to be fast, dynamic and flexible, as well as
to engage with our employees. These opportunities help foster acreative mindset among our employees that is conducive to ourinnovative, forward-looking nature.

Section V

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ReportVarious Learning Frameworks
We offer a wide range of learning frameworks for employees.
»

Onboarding: Global program covering all onboarding processes
such as orientation day and an e-learning tutorial.

»

Compliance: Annual and globally managed campaigns coveringanti-harassment, safety, security, and code of conduct and ethics.

»

Application Engineers (AE): 22 learning programs for global
AEs, with focus on materials (polymers, metal) and CAD (including
live training webinars on Solidworks, Keyshot and Rhino).

»

Design: Identification of gaps and improvement opportunities,
along with learning offerings, to expand the knowledge of designunit employees through tailored programs

We also offer targeted programs to specific populations:»

R&D & Design Engineering»

Application Engineers»

Product Managers

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SocialImpactSection V

Governance

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About This
ReportStratasys has implemented an Operations Training, Qualification and Certification Procedure policy aimed at establishing and defining an internal
training program, as well as ensuring the competency of operations personnel. Training employees in the procedures and methods that they may
perform is a key factor for operational success. Applicable to on-the-job training, in-house training, and new-hire training, the policy enables andoutlines the introduction of new procedures and methods, employee retraining, and employee performance verification.

New employee process
On board
training

Assigned toa trainer

Overview of the
training plan

Provide training
materials

Quality check-in(only for production
employees)

Training

Quality check-out(only for production
employees)

Updating
certification
meretrix

Veteran Employee Process (Cross training, Role Change, etc.)
Assigned toa trainer

Overview of the
training plan

Provide training
materials

Quality check-in(only for production
employees)

Training

Due to the diverse nature of our operations, each training area and accompanying
coursework is managed by the relevant business unit and manager (i.e., Application
Engineers, Environment, Health and Safety, or management). This ensures that all training
and learning are customized to meet the needs and requirements of each business unit,
leading to more accomplished and successful employees.
We engage our employees through robust learning and development programs that help
them gain new skills, learn new areas, and develop their capacities. We utilize three different
learning strategies: the Success Factors Learning Management System (LMS), LinkedIn
Learning, and live webinars. By combining these platforms, which involve a mix of online andin-person learning, we can reach each and every employee. Stratasys employees are also
encouraged to develop their specific fields of interest, dream of new projects, and promote
initiatives. Giving the space to be creative, we encourage employees to harness
their own curiosity and develop concrete leadership skills.

Quality check-out(only for production
employees)

Updating
certification
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SocialImpactSection V

Governance

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About This
ReportWe address employee development through a variety of programs, such as the Reach for the Stars program forhigh potential employees and successors for senior roles, and mid-level manager training through the Stratasys
Leadership Academy. Also, all employees can experience enhanced development through our development andperformance management program,3DP. Throughout the year (now 4 times a year), employees are asked to
discuss their individual performance goals with their manager. Employees also are encouraged to discuss
successes and challenges from the previous quarter, as well as priorities for the current quarter. The purpose isto create better goal management, communication and relationships between an employee and his/hermanager.

Total Training on Human
Rights Policy
Total number of hours in the reporting
period devoted to training on human rights
policies or procedures concerning
aspects relevant to our operations

Percentage of employees trained during
the reporting period in human rights
policies or procedures concerning
aspects relevant to our operations

a year for

1 hour employees

anti-harassment tutorial

Over 95%
completion ratea year for

2 hours managers

anti-harassment tutorial

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SocialImpactAdditional Projects Under Development
1. Expert Team – Professionals within the company will be provided
with tools and training to share their knowledge and expertise withcolleagues.
1. Project Based Learning (PBL) – a dedicated learning path for
those running strategic projects, or intending to extend theirexpertise in this area.
1. We launched in 2021 our Annual Compliance Campaign, which
will continue through August and include training in:a. Stratasys Code of Business Conduct and Ethics (theCode) – The foundation for legal and ethical standards thatguides us in our daily actions and activities. In addition, we
provide clear policies that extend beyond the Code andencompass several other important topics, including our insider
trading policy, global anti-corruption policy, gifts andentertainment policy, and whistleblower policy.
b. Anti-Harassment – Includes training that provides important
information on the prohibition of harassment in the workplace. It
addresses how to create a respectful and professional work
environment for everyone.
c. Physical Security Training – Designed to set rules andguidelines for protecting our knowledge, assets, facilities, andother properties from various threats.
d. Israel Safety – A tutorial in Hebrew that covers rules andregulations for safe conduct in our offices and labs. While it may
be a refresher for some employees, it is mandatory by law for all
workers to complete it annually.

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Section VI
About This
Report14.1 Professional Development – ExpandYour View
Employees are periodically invited to company-wide lectures withcustomers to learn how they utilize our technology to create innovativeand cutting-edge applications, including sustainable projects andtechnologies. Employees from every department and unit get to see ourtechnology in action, learn how it is being used to improve the work of
manufacturers, designers, engineers and other professionals. They also
get to ask questions and have meaningful interactions with makers.

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SocialImpactSection V

Governance

Section VI
About This
ReportIV.2 COMMUNITY

15.1 Innovation in Education – Programs andPartnerships

CHAPTER 15

We know education to be a key to creating a better society,better technology, and a better life. So, we support
equitable and accessible education opportunities that
foster diverse perspectives and engender innovation acrossall sectors. As a first major step, we aligned our activities
and community impact outlook with sustainable
development goal (SDG) #4, Quality Education for Inclusive
and Equitable Education, via our greatest value propositions – our people andour knowledge.

Corporate Social Responsibility &Community Social Impact
Stratasys is an integral part of the communities in which we
operate. We are committed to leveraging the value of 3D
printing so we build meaningful partnerships and allow for
personal employee contributions via our global volunteer
network, that impact people and the planet, across thelocations we work in.
Our strategy is to create smart, long-term collabortations
with host communities. In this way, we not only highlight ourexpertise, but also create shared value to generate awin-win situation for our communities and our employees.

Experts predict a shortage of skilled workers could lead to millions of unfilledjobs, which could potentially halt economic advancement and increase social
gaps and inequalities. Companies worldwide are counting on career andtechnical schools to develop programs that attract talented students and preparethem to work in advanced technology sectors using knowledge far beyond what
was required a generation ago.
Bringing together high-tech industry and higher education is one way to close thegap among younger generations. It gives students a path to gain criticalacademic and STEM skills through hands-on learning. Stratasys can galvanize anentire campus, generate excitement, inspire collaboration, and foster student
entrepreneurship with hands-on experiences in professional 3D printing.
Here are examples of education programs in which we are involved.

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About This
ReportPhoto credit: Lesya Andreiko

15.1.1 Learning by Making – Revadim Project, Jerusalem
This 2-year program supports efforts in Jerusalem, one of the largest and mostdiverse cities in Israel, where our headquarters are located. The partnershipprogram with the Jerusalem Municipality creates a large database of pedagogicalcontent and research to guide teachers and give them practical tools to embed
digital fabrication (3D Printing) tools as part of classroom learning.
The three main elements of the program are:
1. Pedagogical – mentoring and developing new learning tools.
2. Hands-on – learning by making.
3. Bridging the Gap – leveraging traditional learning. Through the education
system we aid in providing advanced learning opportunities that deepen theunderstanding of students while closing socio-economic gaps.

"Through its education initiatives, Stratasys
impacts the lives of children around the world.
As employees, we get to volunteer in ourcommunities, introducing children of all ages to
STEM professions and 3D printing technologies.
I love helping shape the next generation ofengineers."
Jane Davydov, Engineering ProjectManager at Stratasys

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Governance

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About This
ReportStratasys Volunteers for Makers for Heroes 2021

15.1.2 Makers for Heroes

Stratasys Volunteers for Makers for Heroes 2020

We have been partnering with Restartfor over five years. Through its“Makers for Heroes” initiative, thenon-profit organization develops
creative solutions for wounded Israeli
and foreign veterans to help themovercome their daily challenges. In
working with Stratasys, theorganization approaches us with aparticular challenge, and a team of
employee volunteers comes up with asolution via our cutting-edge 3D
printing technologies.

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SocialImpactSection V

Governance15.1.3 High Tech Kids and FIRST
Stratasys is a proud sponsor of “of "High Tech Kids", a Minnesota non-profit and "FIRST"(For the Inspiration and Recognition of Science and Technology) a global non-profit. We
support High Tech Kids activity yearly and provide in-kind donations to FIRST teams.
Both organizations provide kids with hands-on science, engineering and technology
programs that are both educational and fun. “High Tech Kids” organizes robotics
competitions across Minnesota as an affiliate partner of FIRST. These programs boost
interest in STEM and 3D Printing at an early age, and familiarize kids with Stratasys’technology. We already donated 54 FDM printers in 2022, and have provided hundreds ofprinted parts and over 1000 hours of volunteer engineer expertise every year to robotics
teams participating in both the Minnesota state championship and the FIRST Robotics
World Championship. In 2022 there are over 800 teams in Minnesota and 126 teams in
Israel, many of which incorporated 3D printing as part of their robots. We also provide
eight students from the local community with scholarships and mentorship to help build
our local community’s interest in STEM initiatives and to help create a more diverse,
equitable and inclusive engineering workforce.

Section VI
About This
Report71

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Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpact15.1.4 TIPE
Stratasys was a Platinum Sponsor of the 2021 Women in 3D Printing
Conference by TIPE 3D Printing (Technology. Industry. People.
Economics), promoting its commitment to promoting women in 3D
Printing. Six Stratasys women participated in three different panels,
discussing the impact of 3D Printing and the career paths that led
them to Additive Manufacturing.

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About This
Report72

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Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpact15.2 Supply Chain (Direct Sourcing)
We implemented a suppliers' code of conduct that aligns our practices
and beliefs across our value chain. To that end, we work directly with awide range of partners and suppliers across the globe to secure thehighest quality materials for both our principal raw materials and our
corporate operations such as business equipment, materials, andsoftware.
The aim of our direct sourcing is to contribute to our competitivenessand help realize the following goals:»

Maximize cost reduction across all purchasing activities»

Support supply continuity to our production plants and mitigate all
major risks challenging our supply chain’s stability»

Support new product institutions and current machine projects andprovide the best quality of service to internal customers to maximize
satisfaction»

Create a sustainable ecosystem for today and the future

Our sourcing group operates processes that are essential to thecompany, including strategic planning and implementation of cost
reduction, BOM validation, supplier selection, ongoing management,change management, risk assessment, and contract management.
We have published a Suppliers Code of Conduct that will beincorporated in all of our engagements with vendors. It expresses
our core values to suppliers, helping us deliver our products andservices in a responsible, safe and ethical manner. We ask our
suppliers to commit to best practices, going beyond therequirements of the Suppliers Code to create a sustainable work
environment for years to come.

Section V

Governance

Section VI
About This
Report15.3 Innovation: A Core Value – Our
Stratasys Inventors
A core value at Stratasys is innovation. For over 30 years we haveintroduced new technologies, capabilities and applications – and wehave accelerated our growth extensively over the past two years. Ourinventors are key to our leadership, and we celebrate their contribution
to our portfolio. We are proud of our outstanding and growing patentportfolio.

Patents at Stratasys in 2021
Pending applications (total)

495

Issued patents (total)

1370

Total patent portfolio

1865

Total Filed in 2021*

272

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Section IV
SocialImpact15.4 Human Rights
15.4.1 Conflict Minerals
The Stratasys Board of Directors is committed to andaccountable for securing an ethically-operated and ecologicallysound value chain. This is backed by our official conflictminerals policy that outlines our practices and principles forsourcing raw materials necessary for our operations. We invite
you to read the full disclosure on the topic. It is anotherdemonstration of our deep commitment and governancearound topic that impact our planet and people – so weensure we rally our entire eco-system around our sustainability
purpose: to 3D Print a Better Tomorrow.

Section V

Governance

Section VI
About This
Report74

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Sustainability That Goes
Beyond Compliance

Section V

Section III

Environment

Section IV
SocialImpactSection V

Governance

Governance

Section VI
About This
Report75

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Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportChapter 16

Chapter 17

Ensuring Sound Governance

Economic Performance

Chapter 16.1: Governance of COVID-19

Chapter 17.1: Tax

Chapter 16.2: Stratasys’ Governance Structure

Chapter 17.2: Procurement and Supply Chain»

Chapter 16.2.1: Governance Structure»

Chapter 16.2.2: Board of Directors’ Committees»

Chapter 16.2.3: Chief Executive Officer and Other Officers»

Chapter 16.2.4: Risk Identification and Management»

Chapter 16.2.5: Governance of Sustainability Topics

Chapter 16.3: Ethical Work Environment»

Chapter 16.3.1: Code of Business Ethics»

Chapter 16.3.2: Whistleblower and Non-Retaliation Policy»

Chapter 16.3.3: Cybersecurity and Data Privacy

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Environment

Section IV
SocialImpactCHAPTER 16:
ENSURING SOUND
GOVERNANCE
Sound corporate governance is a top priority for Stratasys, a key to ouractivity and operations worldwide. As a publicly traded company, weare committed to all of our stakeholders – suppliers, partners,
customers, employees, and shareholders – to uphold and ensure good
governance practices. Governance is the foundation upon which
Stratasys is built, a reflection of our culture and adherence to ethicalbehavior, fairness, and respect for all. Successful governance isinherent to sustainable values and ensures that we demonstrate thesecore commitments in everything we do. It is embedded in our principles
and practices which are applied throughout the Company as an integral
part of our business culture and how we conduct our business globally.
At Stratasys, we strongly believe it is vital to ingrainsustainability principles at all levels and in every aspect of theorganization, and, accordingly, we have embedded proper

Section V

Governance

Section VI
About This
Reportgovernance in our systems and processes. Governance is not a single
activity. Successful implementation of a strong governance strategy
requires a structured approach incorporating strategic planning,
compliance and regulatory adherence, risk management, andperformance management. Governance is at the core of our leadership
position in 3D printing and based on 30-plus years of trust and loyalty
with whom we do business.
Structured governance is key to promoting high performance andbusiness success throughout the organization and is driven by thehighest levels of executive leadership, which provides support andguidance. Structured governance also upholds and strengthens
stakeholder confidence and creates an environment that is well
positioned to quickly respond to ever-changing external circumstances.
Our ability to adapt, a by-product of our strong, transparent
governance, not only contributes to our financial success, butalso ensures that Stratasys remains resilient and strong in theface of challenges while creating space for new opportunities.

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SocialImpactSection V

Governance

Section VI
About This
Report16.1 Governance of COVID-19
At the time, with a newly appointed CEO at the helm
and unprecedented uncertainty, Stratasys and ourmanagement team worked together to combat
COVID-19 and counter-act its adverse impact on our
results. Recognizing the gravity of the global situation
at an early stage of the pandemic, we quickly createda Business Continuity Plan (BCP). This enabledmanagement to introduce a mechanism for aligned
global management during the period. We also
rapidly put together a management forum charged
with leading the business in all facets, including
employees, performance and customers, whileconsidering local elements in the locations where theCompany operates.
As a result of these actions, we were able to strikethe right balance between employee health andsafety and business continuity during the pandemic.
This strategy was necessary not only to survive thestill ongoing crisis, but also to thrive and maintain along-term strategic approach that would carry us forthe years to come. Based on innovation anddevelopment that took place during the
pandemic, we believe our multiple productlaunches during a turbulent 2020-2021 to be a
testament to the success of our strategy.

Created centrally managed and fully aligned local and BU messages

CEO Corporate
Communications

Local, Regional &Business Unit
Communications

Customer/Partner/
Vendor Communication

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SocialImpactSection V

Governance

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About This
ReportWhat We Did
Closely monitored our employee status to secure the well-being of our teams at work and at home

Business Unit
Location
Global Operations
Israel - Kiryat Gat
Global Operations
Israel - Kiryat Gat
Direct Manufacturing
US - Valencia
R&D SW
UK - Cambridge
Global HR
Israel - Rehovot
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
EMEA
Italy - Home Office
R&D PJ
Israel - Rehovot
Global Operations
Israel - Kiryat Gat
Stratasys HQIsrael - Rehovot
Global Customer Support Israel - Rehovot
R&D PJ
Israel - Rehovot
EMEA
Germany - Baden Baden
EMEA
Germany - Baden Baden
EMEA
Germany - Baden Baden
EMEA
Germany - Baden Baden
EMEA
Germany - Baden Baden
EMEA
Germany - Baden Baden
MIS
Israel - Rehovot
Global Marketing

Americas

US - NASH

US - NASH

Start Date
02/27/2020
02/20/2020
3/3/2020
3/8/2020
3/13/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/9/2020
3/4/2020
3/9/2010
3/10/2020
3/13/2020
3/7/2020
3/11/2020
3/11/2020
3/11/2020
3/11/2020
3/11/2020
3/12/2020
3/9/2020

End Date
10/3/2020
5/3/2020
3/16/2020
3/22/2020
3/27/2020

3/15/2020
3/22/2020
3/24/2020
3/27/2020
3/21/2020
3/20/2020

3/23/2020

3/18/2020

3/1/2020

3/4/2020

In isolation
Infected# Day
Comments
Start Date End Date # Day Comments
14
Italy
0
14
Thailand
013
Korea, vietnam, Malasia
0
14
Private Vacation - Italy014Private vacation
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0-43899Italy, Isolation time is unknown
0
11
Private vacation- France0
14
Private vacation - London
0
14
Business trip to US
0
14
Business trip to US
0
14
Private trip - Lapland090-43901
Living in Alsace - Risk Area0-43901
Living in Alsace - Risk Area0-43901
Living in Alsace - Risk Area0-43901
Living in Alsace - Risk Area0-43902
Living in Alsace - Risk Area
0
Private vacation- Turkey
returning home14
from school in France
did not go into isolation;completed travel prior to
escalation of Germany as Level 3

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Environment

16.2 Stratasys'
Governance Structure
16.2.1 Governance Structure
Board of Directors
Our shareholders, Board of Directors, andexecutive leadership are authorized tomake decisions on various company
matters. The Board is responsible for
guiding, monitoring and approving strategic
activity, policies and decisions
recommended and taken by theCompany’s management. It is also
responsible for overseeing Stratasys’
strategic direction and businessperformance, including periodic review of
relevant economic, environmental andsocial impacts.
The Board also appoints an Audit
Committee and Compensation Committee,
each responsible for deciding specificmatters assigned to them by law and stock
exchange listing requirements. The Boardand management are responsible forStratasys’ corporate governance andcompliance programs. All company
directors are independent as defined under
the rules of Nasdaq.

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportHere is a list of board members and their committee membership:
Director
MemberPosition on
Stratasys' Boardof Directors

Dov Ofer
S. Scott Crump

Committee
Membership

Nationality

GenderDate
JoinedChairman of theBoard of Directors

Israeli

Male

July 2017

Independent
Director

AmericanMale

November
2021

Male

December
2012

FemaleJune 2013

Member ofCompensation
Committee
AmericanAnd Audit
Committee
Member ofCompensation Israeli
Committee

John J.
McEleney

Independent
Director

Ziva Patir

Independent
Director

David Reis

Independent
Director

IsraeliMale

June 2016

MichaelSchoellhorn

Independent
Director

GermanMale

November
2020

Yair Seroussi

Independent
Director

Chair of Audit
Committee

Israeli

Male

July 2017

Adina Shorr

Independent
Director

Member of
Audit
Committee

AmericanFemaleJuly 2018

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Environment

16.2.2 Board of Directors' Committees
Audit Committee: The Audit Committee’s
authority, responsibility and specific duties aredefined and described in the Committee’s
charter1. Its purpose is to assist the Board inselecting, retaining, compensating, andoverseeing the company’s independent
auditor. The committee also oversees theintegrity of Stratasys’ financial statements andother published financial information, monitors
performance of its financial reporting process,and monitors its compliance with legal andregulatory requirements as well as corporate
policies and controls. The committee
furthermore also determines whether there
are delinquencies in Stratasys’ business
management practices, including consultation
with our internal auditor or external
independent auditor, and recommends to theBoard of Directors to improve such practices.
In addition, the committee determines
whether to approve certain related party
transactions or transactions in which a board
member or executive officer has a personal
interest, and whether any such transaction
is material.

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportCommittee membership is comprised of threeor more independent directors, as defined
under the Nasdaq listing rules. All committee
members are required to be financially literate,
and at least one has to be an “audit
committee financial expert.” The committee’schairperson is designated by the committee,
and the committee meets at least once every
fiscal quarter or more frequently as
circumstances require.
Compensation Committee: Upon its
formation, the Compensation Committee
immediately developed, implemented, andcurrently remains guided by a compensation
policy that serves as the basis for decisions
concerning financial terms of employment or
engagement of our officeholders. This
includes exculpation, insurance,
indemnification, or any monetary payment or
obligation of payment in respect of
employment or engagement. The policy also
relates to certain factors, including
advancement of our objectives, business andlong-term strategy, and the creation of
appropriate incentives for executives.

The committee is responsible forrecommending the policy to the Board of
Directors for approval (and subsequent
approval by our shareholders). It is also
charged with duties related to the policy andcompensation of officeholders, as well asfunctions related to approval of their terms ofengagement. The committee’s composition is
dictated by the Nasdaq listing rule. According
to the rule, if a company is required to appoint
external directors, the committee must
consist of at least two members, each ofwhom must be independent.

1 The ‘ STRATASYS LTD. AUDIT COMMITTEE CHARTER’ can be found on Stratasys’ website. At: https://d1io3yog0oux5.cloudfront.net/_006e537eafce59b652f1e2856b3129ee/stratasys/
db/790/6758/file/SSYS_Audit_Committee_Charter-_final.pdf

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Section VI
About This
Report

16.2.3 Chief Executive Officer andOther Officers

16.2.5 Governance of 		
Sustainability Topics

Our chief executive officer is appointed by,
and serves at the discretion of, our Board of
Directors, subject to the employment
agreement entered with the CEO. All otherexecutives are appointed by our CEO, subject
to the terms of any applicable employment
agreements that we may enter with them. The
compensation terms of our Core Leadership
Team members are determined based on thecompensation principles set in the Stratasys
Executive Compensation Policy (approved by
the Compensation Committee, Board and ourshareholders), and approved by the Board’sCompensation Committee and the Board.

An internal ESG Steering Committee ofcompany leaders and a board champion forsustainability and corporate responsibility
activity are responsible for decision-making
on economic, environmental and social
topics. Following the establishment of theStratasys Sustainability Group in 2021, theBoard of Directors General Forum decided to
conduct an annual sustainability session at
the Q2 meeting to govern and review ESG
activity. The process for delegating authority
for economic, environmental and social topics
begins with the Board and/or CEO, whoprovides full approval, allocates a budget, andoffers governance guidance to the VP
Sustainability, who owns and runs thecorporate/global function.

16.2.4 Risk Identification 			and Management
Our Board of Directors serves as the primary
corporate body responsible for the company’srisk management, including cybersecurity
risks. It periodically consults withmanagement to obtain relevant updates,
and internally discusses the company’s
most material risks and how they are 		
being mitigated.

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16.3 Ethical Work
Environment
Stratasys is committed to conducting
business in a legal, ethical andprofessional manner, and to promoting aculture of honesty, integrity and respect
for the law. As such, Stratasys relies on its
directors, executive officers and employees tohelp ensure it is complying with relevant laws,
regulations and policies. Consequently, every
employee is required to comply withapplicable laws, regulations, the Code ofBusiness Conduct and Ethics, and Stratasys'
other policies.

16.3.1 Code of Business Conduct
and Ethics
Stratasys is committed to soundcorporate governance. We work toensure that all of our activities are freefrom unethical practices, and that ouremployees are well-informed of our
expectations regarding ethical behavior.
We have adopted a Code of BusinessConduct and Ethics (the “Code”). The Codeapplies to all directors, officers and employees
of our company and subsidiaries. The Codeserves as an important resource for Stratasys
team members on the ethical standards they
are expected to uphold in carrying out day-today decision making. It represents the core

Section IV
SocialImpactSection V

Governance

Section VI
About This
Reportof how we create a solid foundation of trustand success that is reflected in our
relationships with customers, suppliers,
partners, and one another.
Our employees have a responsibility to
uphold and ensure the values and spiritof the Code when carrying out theirroles. Stratasys ensures that all
employees are aware of and up to datewith the Code, and its derivativecompliance policies (related to
anticorruption and insider trading), by
providing mandatory annual training.
The Code relates to employment topics
and issues such as equal opportunity, nondiscrimination, and elimination of barriers. It
also describes what constitutes and prohibits
all types of harassment, implements workplacesafety and violence prevention, requires adrug- and alcohol-free workplace, andprovides for employee information privacy.
As part of the Code, the Stratasys Global
Anti-Corruption Policy declares that corrupt
practices are not acceptable in businessdealings in both the private and government
sectors. Stratasys’ policy is to comply with
anti-corruption laws governing global
operations. Payments, gifts or other favors
given to a government official, or an employee
are strictly prohibited, as it may appear to bea means of influence or a bribe.

The Stratasys Gifts and Entertainment Policy
sets forth rules and guidelines to promoteresponsible gift-giving/acceptance andentertainment practices. Stratasys has rules
for giving and receiving gifts and forentertainment. While gifts can build
relationships and goodwill, they can also
impede objectivity about the person providing
the gift or entertainment.
Stratasys is a publicly traded company listedon NASDAQ. US securities laws – including
the Insider Trading and Securities Fraud
Enforcement Act of 1988, Section 10(b) andRule 10b-5 under the Securities Exchange
Act of 1934, as well as laws in otherjurisdictions in which Stratasys and its
subsidiaries conduct business – prohibits
trading in the securities of a public company
while in possession of “inside information.”
In 2021 we also adopted a Suppliers Code of
Conduct, aligning our broader value chain toour values and commitment to ethical activity.

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Environment

16.3.2 Whistleblower and Non-Retaliation
PolicyEmployees should feel safe reporting
misconduct to Stratasys. They also should be
confident that we are committed tofostering an open reporting environment
and preventing retaliation, retribution orharassment when an employee makes a goodfaith report or cooperates with an investigationof any such report. The Stratasys Whistleblower
and Non-Retaliation Policy (“Whistleblower
Policy”) applies to all Stratasys directors,
executive officers, employees, and contingent/temporary workers worldwide, including thoseof Stratasys-controlled entities and joint
ventures (collectively, “Stratasys Personnel”). It
is the responsibility of Stratasys Personnel toread, comply with and understand how thispolicy applies to their respective job functions.
Stratasys will not tolerate retaliation against any
individual who submits a report of a violation or
possible violation of law, the Code or the
Whistleblower Policy. Stratasys Personnel mustnever intimidate, harass or take any retaliatory
action against other Stratasys Personnel who,in good faith, report a potential violation of law,regulation, or the Code, or who cooperate withan investigation of any such report. Any
Stratasys Personnel who retaliate against
someone who has reported a violation may be
exposing both themselves and the company toliability, and are subject to discipline, up to andSection IV
SocialImpactSection V

Governance

Section VI
About This
Reportincluding termination of employment. Stratasys investigates each complaint of retaliation
and, if any claim is substantiated, takes appropriate disciplinary action, up to and including
termination of employment, and implements any appropriate remedial measures.
In 2021, Stratasys received no complaints of ethical breaches through ourWhistleblower Hotline.

16.3.3 Cybersecurity and Data Privacy
Stratasys considers personal and non-personal data to be assets that must be safeguarded
and handled carefully, but which can also be used to provide value-added services to all of
our stakeholders, including our employees, customers and suppliers.
Stratasys respects the privacy of all of its employees, business partners 		
and consumers.
Access to personal information is authorized only when there is a legitimate and lawful
reason and is granted only to appropriate personnel. Protecting customer and supplierinformation and using it appropriately is a top priority for our company. At Stratasys, weunderstand that it is an imperative to safeguard any confidential information that customers
or third parties share with us. Additionally, we ensure that the information provided to us isused strictly for business purposes.
To show our commitment to the protection of our information and that of our customers andsuppliers, Stratasys conducts ongoing phishing monitoring and training on a 		yearly basis.

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SocialImpactSection V

Governance

CHAPTER 17:
ECONOMIC PERFORMANCE
Stratasys staunchly believes that as a provider of additive manufacturing
technology solutions for a broad range of industries, we maintain a central
role in the economy and in ensuring the sustainable development ofcommunities through global supply chains. Additive manufacturing has beenthrust into the spotlight as an industry that enables economic growth anddevelopment, creates jobs, supports innovation in all sectors, generates
long-term value, and enables the interconnectedness of modern society.
2,000+
Globalemployees

1,700
Patents(granted &pending)$502M*
cash andequivalents

$607M
2021
revenue$0 zerodebt*As of December 31st, 2021

Our Chief Executive Officer, Chief Financial Officer and the Finance
Department managers and employees manage our economic activity andfinancial reporting. They are responsible for disclosing Stratasys’ businessperformance and any relevant financial issues to the Board of Directors andshareholders, through filings, reports and press releases and through theInvestor Relations department. Furthermore, and together with management,
they are responsible for preparing the annual, quarterly and periodic financial
reports filed, as a publicly traded company. All filings and other relevant
documents are available to the public through the company website.
Our shareholders are provided with current and precise information regarding
our economic and financial performance. For more information, please refer
to our annual report.

Section VI
About This
Report85

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Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
Report17.1 Tax

17.2 Procurement and Supply Chain

Tax is a heavily regulated area requiring strict compliance and carefulmanagement of risks and exposure, which could impact thecompany’s results and public image. We ensure full compliance withlocal laws and regulations in areas in which Stratasys operates, while
exploring developments and tax opportunities to ensure tax efficiency
and optimization. Our tax team is updated about new developments
worldwide. The management team discusses our tax strategy in lightof changes in tax law and business developments.

Purchasing and sourcing activities make up over $230M of direct
procurement spend each year within Stratasys, depending on thescope of manufacturing and the company’s inventory policy.

The CFO and tax team, who are consulted regarding proposedchanges to business operations whenever necessary and consult
with external advisors, adopt this approach.
Tax risks or exposures are analyzed, quantified and evaluated forpossible mitigation strategies. Risks are further investigated andidentified exposure is managed when necessary. Our tax filings areprepared and reviewed internally under a controlled process. Similarly,
we share and consult with professional advisors for any issue that
requires unconventional treatment.

We evaluate our suppliers to ensure that we are receiving quality
services and goods, and vet our vendors according to various
benchmarks, including how they are perceived by the public as abusiness. In addition, the performance of vendors is reviewed on an
ongoing basis to ensure that they are meeting our expectations. We
create KPIs around on-time delivery and other management criteria(yearly KPI management). This year we initiated a suppliers code of
conduct and aligned our vendors to our values and commitment toethical operations.
Procurement policies are available for review on various internal
platforms and web domains (SDM Workbench, Stratanet).

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Section VI

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportAbout This Report87

Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

ABOUT THIS REPORTThis is Stratasys' first Sustainability report and has been
prepared in using the Global Reporting Initiative Standards:
Core option, as well as the Sustainability AccountingStandards Board (SASB). Throughout the report, we havealigned our various activities and impacts to the United
Nations Sustainable Development Goals (SDGs). Stratasys isplanning to produce its Sustainability Report on an ongoingbasis and data is reported by fiscal year unless clearly marked
otherwise. Unless otherwise noted, this report includes
environmental and social data from internal systems andinformation from January 1, 2020 through December 31, 2021.
All financial or economic information presented in this report isdisclosed according to our 2020-2021 Annual Reports whichshould be referred to in case of any discrepancies.

Contact Point Regarding This Report
Stakeholders who are interested in understanding or clarifying the information presented,
or who have questions regarding the content of the report may contact the following:
Rosa Coblens, VP Sustainability, rosa.coblens@stratasys.com
Roni Ezuz, Sustainability, ESG and Public Relations, roni.ezuz@stratasys.com

Section VI
About This
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LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportINDEXGRI Indicator

Description

Chapter/page number/link

Organizational Profile
102-1

Name of the Organization‘About Us – Stratasys’

102-2
102-3
102-4
102-5
102-6
102-7
102-8
102-9
102-10Description of the organization’s activities
Location of organization’s headquarters
Location of operations
Nature of ownership and legal form
Markets Served
Scale of the reporting organization
Total number of employees
Describe the organization’s supply chain
Significant changes regarding the organization’s size, structure,
ownership, or its supply chain
List of Associations
Memberships‘About Us – Stratasys’'Chapter 2: Stratasys – 3D Printing a Better Tomorrow''Chapter 2: Stratasys – 3D Printing a Better Tomorrow'‘Chapter 2: Stratasys – 3D Printing a Better Tomorrow’‘Chapter 2: Stratasys – 3D Printing a Better Tomorrow’‘Chapter 2: Stratasys – 3D Printing a Better Tomorrow’'Company Overview''Company Overview'
20-F Report, Item 3. Key Information

102-12102-13'Association Memberships''Association Memberships'

Strategy102-14102-15

Statement from the most senior decision-maker of the organization 'Section I: Opening Statements'
Description of key impacts, risks, and opportunities'Risk Identification and Management'

Ethics and Integrity
102-16

Describe the organization´s values, principles, standards andnorms of behavior'Chapter 3: Our Behaviors and Beliefs'

Report the governance structure of the organization, including
committees of the highest governance body and committees
responsible for decision-making on economic, environmental andsocial impacts.

‘Stratasys’ Governance Structure’

Governance102-18

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102-19102-20102-22102-23102-24102-26102-27102-28102-29Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Delegating Authority
Executive-level responsibility for economic, environmental andsocial topics
Composition of the highest governance body and its committees
Chair of the highest governance body
Nominating and selecting the highest governance bodyRole of the highest governance body in setting purpose, values
and strategy
Collective knowledge of highest governance body102-30102-32102-33

Evaluating the highest governance body’s performance
Identifying and managing economic, environmental, and social
impacts
Effectiveness of risk management processes
Highest governance body’s role in sustainability reporting
Communicating critical concerns

102-34102-35102-36Nature and total number of critical concerns
Remuneration policies
Process for determining remuneration

Section VI
About This
Report‘Stratasys’ Governance Structure’'Governance of Sustainability Topics''Board of Directors' Committees''Board of Directors' Committees''Board of Directors' Committees''Chapter 3: Our Behaviors and Beliefs'
20-F Report, Item 6.A. Directors and Senior
Management
20-F Report, Item 6.C. Board Practices'Governance of Sustainability Topics''Risk Identification and Management''Governance of Sustainability Topics''Ethical Work Environment''Ethical Work Environment'
20-F Report, Item 6.B. Compensation
20-F Report, Item 6.B. Compensation

Stakeholder Engagement102-40102-42

List of stakeholder groups engaged by the organization
Basis for identification and selection of stakeholders with whom toengage‘Identified Stakeholders’‘Identified Stakeholders’

102-43

Approaches to stakeholder engagement, including frequency ofengagement by type and by stakeholder group‘Stakeholder Engagement’

102-44

Key topics and concerns that have been raised throughstakeholder engagement, and how the organization has
responded to those key topics and concerns, including through its
reporting‘Stakeholder Engagement’90Section I

LeadershipStatements

Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

Governance

Section VI
About This
ReportReporting Practices
102-47102-50102-53102-54102-55

List the material topics identified in the process for defining reportcontent
Reporting period for information provided
Contact point for questions regarding the report or its contents
Report the “in accordance” option
The GRI content index'Materiality'‘About This Report’‘About This Report’‘About This Report’‘GRI Content Index’

GRI 201: Economic Performance
201-1
201-2
201-3

Direct economic value generated and distributed
Financial implications and other risks and opportunities due toclimate change
Defined benefit plan obligations and other retirement plans'Chapter 17: Economic Performance'
20-F Report, Item 3.D. Risk Factors'Compensation & Benefits'

GRI 203: Indirect Economic Impacts
203-1

Infrastructure investments and services supported

203-2

Significant indirect economic impacts'Chapter 15: Corporate Social Responsibility &Community Social Impact''Chapter 15: Corporate Social Responsibility &Community Social Impact'

GRI 205: Anti-corruption
205-2

Communication and training about anti-corruption policies andprocedures'Ethical Work Environment'

GRI 206: Anti-competitive Behavior
206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices'Ethical Work Environment'

Approach to tax
Tax governance, control, and risk management
Stakeholder engagement and management of concerns related to
tax

'Tax'
20-F Report, Item 9.E. Taxation
20-F Report, Item 9.E. Taxation

GRI 207: Tax
207-1
207-2
207-3

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SocialImpactSection V

Governance

Section VI
About This
ReportGRI 302: Energy
302-1
302-3
302-4

Energy consumption within the organization
Energy intensity
Reduction of energy consumption'Energy Consumption – Initial Assessment''Energy Consumption – Initial Assessment''Energy Consumption – Initial Assessment'

GRI 303: Water and Effluents
303-1
303-2
303-3
303-4
303-5

Interactions with water as a shared resource
Management of water discharge-related impacts
Water withdrawal
Water discharge
Water consumption'Water and Effluent Management'‘Water and Effluent Management’‘Water and Effluent Management’‘Water and Effluent Management’‘Water and Effluent Management’

GRI 305: Emissions
305-1
305-2
305-4
305-5

Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) greenhouse gas emissions
GHG emissions intensity
Reduction of GHG emissions'Chapter 8: Stratasys Scope 1 and 2 – Initial Baseline'‘Chapter 8: Stratasys Scope 1 and 2 – Initial Baseline’‘Chapter 8: Stratasys Scope 1 and 2 – Initial Baseline’‘Chapter 8: Stratasys Scope 1 and 2 – Initial Baseline’

GRI 308: Supplier Environmental Assessment
308-2

Negative environmental impacts in the supply chain and actions
taken'Supply Chains'

GRI 401: Employment
401-1
401-2
401-3

New employee hires and employee turnover
Benefits provided to full-time employees that are not provided totemporary or part-time employees
Parental leave‘Compensation & Benefits’‘Compensation & Benefits’'Parental Leave'

GRI 402: Labor/Management Relations
402-1

Minimum notice periods regarding operational changes'Minimum Notice Periods Regarding Operational
Changes'

GRI 403: Occupational Health and Safety
403-1
403-2

Occupational health and safety management system
Hazard identification, risk assessment, and incident investigation'Occupational Health and Safety''Occupational Health and Safety'

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403-3
403-4
403-5
403-6
403-7
403-8
403-9
403-10Section II‘Mindful Manufacturing’
Sustainability That Goes
Beyond Compliance

Section III

Environment

Section IV
SocialImpactSection V

GovernanceOccupational health services
Worker participation, consultation, and communication on
occupational health and safety
Worker training on occupational health and safety
Promotion of worker healthPrevention and mitigation of occupational health and safety
impacts directly linked by business relationships
Workers covered by an occupational health and safety
management system
Work-related injuries
Work-related ill health

Section VI
About This
Report‘Occupational Health and Safety’‘Occupational Health and Safety’‘Occupational Health and Safety’'Chapter 13: Health and Well-being'‘Occupational Health and Safety’‘Occupational Health and Safety’‘Occupational Health and Safety’‘Occupational Health and Safety’

GRI 404: Training and Education
404-1
404-2
404-3

Average hours of training per year per employee
Programs for updating employee skills and transition assistanceprograms
Percentage of employees receiving regular performance andcareer development reviews'Chapter 14: Learning and Development''Chapter 14: Learning and Development''Chapter 14: Learning and Development'

GRI 405: Diversity and Equal Opportunity
405-1
405-2

Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women to men'Chapter 11: Diversity, Equity, & Inclusion''Chapter 11: Diversity, Equity, & Inclusion'

GRI 406: Non-Discrimination
406-1

Total number of incidents of discrimination and corrective actions
taken'Chapter 11: Diversity, Equity, & Inclusion'

GRI 413: Local Communities
413-1
413-2

Operations with local community engagement, impact
assessments, and development programs
Operations with significant actual and potential negative impacts
on local communities'Chapter 15: Corporate Social Responsibility &Community Social Impact''Chapter 15: Corporate Social Responsibility &Community Social Impact'

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Environment

Sustainability That Goes
Beyond Compliance

Section IV
SocialImpactSection V

Section VI

Governance

About This
ReportGRI Table Appendix
Total Number of Employees (102-8)
2019
Women

Men

Full-timePart-time
Total

580
20
600

1,654
6
1,660

Permanent
Temporary
Total

591
9
600

1,655
5
1,660

Total
Women
By employment type
2,234
500
26
28
2,260
528
By employment contract
2,246
524
14
4
2,260
528

2020
Men

Total

1,458
16
1,474

1,958
44
2,002

1,472
2
1,474

1,996
6
2,002

2019
GenderWomen

Men

By Age GroupAge Group
Under Age 30
Ages 30-50
Over Age 50
Under Age 30
Ages 30-50
Over Age 50
Under Age 30
Ages 30-50
Over Age 50

Total (all ages)

2020

Rate of New
Hires

Turnover rate

Turnover rate

% Change
Turnover YoY

4%

4%

7%

3%

10%

12%

16%

4%

0%

3%

10%

3%
13%

1%

0%
0%

3%

6%

3%

21%

16%

22%

6%

3%