CarGurus : 2023 ESG Report

2023

Corporate Social

Responsibility

Report

Table of contents

03 Introduction

1. A Message From Our CEO
2. CarGurus Overview

1. About This Report

1. Our Approach

09 Framework

1. Environment

1. Social
   13 Diversity, Equity, Inclusion, and Belonging
   15 Employee Resource Groups (ERGs)
   17 Corporate and Global Citizenship
   17 Charitable Giving
   18 CarGurus Week of Service
   20 Workforce Development and Investment
   22 Employee Engagement
   23 Company Awards

1. Governance
   25 Corporate Governance
   26 Corporate Governance Highlights
   27 Data Privacy and Security

28 Concluding Remarks

30 Appendix

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Introduction	Environment	Social	Governance	Concluding Remarks	Appendix

A message from our CEO

At CarGurus, our mission is to become the #1 digital destination for consumers and dealers to confidently and conveniently buy and sell any vehicle, anywhere, with the best selection and price. Our pioneering mindset, collaborative spirit, data-driven approach, and commitment to speed and transparency fuel our success. We believe in keeping integrity at the heart of everything we do by acting responsibly and considering the impact of our actions on each other, our customers, and the world around us. With those values in mind, I am honored to share our 2023 Corporate Social Responsibility Report.

In 2023 we accelerated growth in our core marketplace business while activating our transaction-enabled capabilities to best meet the evolving needs of both consumers and dealers. I'm proud of our ability to stay flexible, adapt quickly where necessary, and remain focused on the journey ahead, including our continued commitment to the social and environmental initiatives that have contributed to progress both at CarGurus and within the communities in which we operate.

This report covers the ways in which we are focused on making a positive and meaningful impact across our environmental, social, and corporate governance initiatives. We review how investing in our employees and the communities in which we operate shaped our diversity, equity, inclusion, and belonging strategy, employee engagement, and charitable giving efforts over the past year. To that end, we also introduce how in 2023 we began developing a more focused ESG strategy called Drive Change, which we expect to develop throughout the year.

While we believe that there is still more that we can do and learn as a company as we advance our ESG initiatives, I want to acknowledge the outstanding work our team has done thus far. Our ESG-related work would not be possible without employee leadership and their commitment to our values, our customers, each other, and our communities.

I look forward to continuing the momentum and sharing our progress along the way.

Jason Trevisan

Chief Executive Officer & Director

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CarGurus overview

CarGurus is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. We use proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. In addition to the U.S., we operate online marketplaces under

the CarGurus brand in Canada and the U.K. In the U.S. and the U.K. we also operate the Autolist and PistonHeads online marketplaces, respectively, as independent brands.

At CarGurus, we are aware of the impact we have on the environment and the community around us. We are committed to fostering responsible growth by embedding sustainable practices throughout our business operations. By continuously striving for improvement, we uphold our commitment to environmental, social, and governance (ESG) initiatives.

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Our core values

We are

pioneering.

From the beginning, we set out to radically change how people buy and sell cars. We tackle difficult problems head on. We are curious. We are risk takers. We embrace change even if it's uncomfortable.

We are

transparent.

We believe transparency is the foundation of trust and enables better decision making. We communicate clearly and honestly. We deliver unbiased guidance. Our products, services, and company culture are built on these principles.

We are

data-driven.

We rely on data, not hunches, to make decisions. We listen to our instincts but we validate through rapid testing, learning, and optimizing. We translate complex data into actionable insights for our users, our customers, and our people.

We are

collaborative.

We celebrate our individual strengths and perspectives but know that our success requires teamwork. We partner, we listen, and we leverage feedback from each other, our users, and our customers.

We move

quickly.

We believe there's power in speed. We iterate quickly and often, continuously improving as we go. We are not afraid to break things. If we fail, we do it fast, learn from it, and move on.

We have

integrity.

We act responsibly and consider the impact of our actions on each other, our partners, and the world around us. We believe empathy, respect, and fairness are essential. We set high ethical standards and expect principled leadership from our people.

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About this report

This Corporate Social Responsibility (CSR) Report covers CarGurus' ESG initiatives during our 2023 fiscal year, unless otherwise specified. We believe that this CSR Report is an important element of our ESG disclosure program. In preparing this CSR Report and selecting the topics and metrics to include, we have referenced the reporting frameworks developed by the Sustainability Accounting Standards Board (SASB). Please see the Appendix to this CSR Report for our SASB disclosures for our

2023 fiscal year. As used in this CSR Report and in the Appendix, the terms "CarGurus," "the Company," "we," "us," and "our" mean CarGurus, Inc. unless the context indicates otherwise.

For questions or for more information, please visit the Investor Relations section of our website, https://investors.cargurus.com, or email [e-mail].

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Introduction	Environment	Social	Governance	Concluding Remarks	Appendix

Key Performance Indicators and Financial Metrics

Global Average Monthly	U.S. Average Monthly
Unique Visitors¹	Unique Visitors¹
36M	29M
Global Monthly Sessions²	U.S. Monthly Sessions²
93M	76M
Global Paying Dealers³	U.S. Paying Dealers³
30,935	24,318
QARSD4	U.S. QARSD4
$5,503	$6,532
Employees	Global Offices
1,343	10
FY 2023 Revenue
$914M

1. As of 12/31/2023, represents monthly average for the fourth quarter of 2023. Please refer to the Appendix for a definition of Average Monthly Unique Visitors.
2. As of 12/31/2023, represents monthly average for the fourth quarter of 2023. Please refer to the Appendix for a definition of Monthly Sessions.
3. As of 12/31/2023. Please refer to the Appendix for a definition of Paying Dealers.
4. Represents the quarterly average revenue per subscribing dealer (QARSD) for the fourth quarter of 2023. Please refer to the Appendix for a definition of QARSD.

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Our approach

In 2023 we began developing a three-pillar ESG strategy called Drive Change, and we formed a steering committee to expand and advance this strategy. We expect this program to focus on engagement with employees, dealers, and the communities in which we operate. We plan to start implementing elements of this program in 2024 as part of our broader ESG initiatives. For our employees, we will continue to support public service and charitable giving efforts that align with our Core Values, including volunteer programs and

Company-matching donation programs. Our dealer customers can apply for charitable donations, programs, and sponsorship support of non-profit organizations with which they work and support. For the communities in which we operate, we plan to create intentional partnerships focused on youth and education as well as the environment. As we continue to develop and roll out this program, we plan to update investors and stakeholders with our progress. We are very excited to be kicking off the Drive Change program in 2024!

Proposed Drive Change Program Elements

Employee Engagement

We plan to support service and charitable giving that aligns with our Core Values, business functions, and employee interests through:

• Employee-ledcharitable giving
• Volunteer programs
• Function-ledprograms
• Company-matchingdonation programs

Dealer Engagement

We recognize and support our dealers who make an impact in the communities they serve.

Dealer Difference

Dealer customers can apply for charitable donations, programs, and sponsorship support of 501(c)(3) non-profit organizations they work with and support.

In addition, we strive to focus our dealer outreach efforts with dealers to donate and support dealer communities impacted by natural disasters and adverse current events.

Community Impact

Our community impact will be focused in two main areas in order to optimize our collective good and to better measure impact.

1. Youth and Education

We support 501(c)(3) non-profit organizations, programs, and activities that help traditionally marginalized youth and education programs.

2. Environment

We support 501(c)(3) non-profit organizations, programs, and activities that help conserve our environment in the fight against climate change.

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Environment

At CarGurus, we prioritize responsible action and conscientiously evaluate our environmental footprint. Although our facilities and operations have a limited environmental impact, we actively seek opportunities to enhance our conservation, recycling, and waste reduction practices at both individual and organizational levels.

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Since 2019 we have reduced our total water usage by 45%.

As our business grows, so too does our employee count and therefore our need for more office space, which represents an opportunity to reduce our carbon footprint. In 2023 we consolidated our offices to reduce unused space and operate more efficiently ahead of our planned move to our new headquarters, which is currently under construction in Boston, Massachusetts. For commuters, the building will have EV charging stations in the garage and indoor bike racks, and the sidewalks and bike lanes in the surrounding area will be redesigned and improved to accommodate the increased commuter traffic. The broader project also will improve access to bus lines and redevelop a pedestrian tunnel to a new Green Line T station entrance, which we believe

will encourage greater use of public transit. We continue to assess in-office sustainability practices that could be implemented to further our commitment to reducing our environmental impact.

As a company, we operate under the return-to-office guidelines based on our Future of Work policy, which currently requires employees to be in the office for at least 40% of working days each month. As part of our efforts to reduce the environmental impact of commuting, we offer an annual stipend for employees who walk or bike to work, and we incentivize low-carbon transportation methods

by offering public transportation subsidies. In 2023 we continued offering a lunch stipend on days when employees are in the office, but we remain mindful

of the potential for food waste. To limit our waste, we send daily reminders to encourage employees to cancel lunch orders if they will not be in the office or communicate to others when they have ordered a lunch that they will be unable to eat and is available for an employee who may not have ordered lunch that day. In our offices, we also encourage our employees to recycle by putting recycling bins at every employee desk, in every conference room, and next to all trash receptacles in our office kitchens and cafeterias. Alongside the recycling bins, we provide signage with guidelines on what can and cannot be recycled to improve usage.

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