Climate Change Data

The Sage Group plc.

Climate Impact & Sustainability Data (2020-10 to 2021-09, 2021-10 to 2022-09, 2022-10 to 2023-09, 2023-10 to 2024-09)

Reporting Period: 2020-10 to 2021-09

Environmental Metrics

Total Carbon Emissions:125,902 tCO2e/year
Scope 1 Emissions:1,060 tCO2e/year
Scope 2 Emissions:4,181 tCO2e/year
Scope 3 Emissions:120,661 tCO2e/year
Renewable Energy Share:35% of total energy use
Total Energy Consumption:64,905 GJ/year
Water Consumption:19,344 m3/year
Waste Generated:298 tons/year
Carbon Intensity:2.8 tonnes CO2e/£1,000,000 revenue (Scope 1 & 2), 68.2 tonnes CO2e/£1,000,000 revenue (Scope 1, 2 & 3)

ESG Focus Areas

  • Digital inequality
  • Economic inequality
  • Climate change

Environmental Achievements

  • Reduced Scope 1 and 2 emissions year-on-year against 2019 baseline
  • Reduced business travel emissions due to the pandemic

Social Achievements

  • Launched Connectr partnership to provide training and mentorship to disadvantaged young people
  • Partnered with BOSS Network and ACE to support Black female entrepreneurs and minority-owned businesses in the US
  • Partnered with Kiva to provide loans and grants to improve financial inclusion
  • Offered 1,000 free training seats to non-profits
  • Provided 22,055 volunteer days

Governance Achievements

  • Improved gender balance in leadership teams
  • Reduced UK gender pay gap
  • Published first UK ethnicity pay gap data
  • Developed an award-winning compliance training program with 90% completion rate and 21-point NPS improvement

Climate Goals & Targets

Long-term Goals:
  • Achieve Scope 1, 2 and 3 net zero emissions by 2040
Medium-term Goals:
  • Achieve full compliance with TCFD recommendations by 2022
  • Ensure all Sage offices have access to credible, certified renewable energy by 2030
Short-term Goals:
  • Reduce Scope 1, 2 and 3 emissions by 50% by 2030 against 2019 baseline
  • Make all cloud products accessible to people with disabilities by 2025

Environmental Challenges

  • Measuring Scope 3 emissions across the value chain
  • Supporting SMBs in achieving ESG goals
  • Addressing economic inequality and digital inequality
  • Managing climate-related risks and opportunities
Mitigation Strategies
  • Developed a three-year climate program including enhanced measurement, carbon abatement, low-carbon energy supply, and development of a Sustainability Hub
  • Partnered with organizations to provide training, mentorship, and financial support to under-represented groups
  • Developed a Privacy and Security Hub to build customer confidence in data security
  • Implemented a four-stage approach to TCFD implementation: readiness, risk and opportunity screening, gap analysis, and stakeholder engagement

Supply Chain Management

Supplier Audits: Piloted a supplier evaluation program in 2021

Responsible Procurement
  • Sustainability questionnaire for new suppliers
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Damage to facilities from extreme weather
  • Service disruptions from weather events affecting hosting services
Transition Risks
  • Reputational damage if climate targets are not met
  • Changing customer behaviors affecting demand for energy-consuming products
  • Increased carbon pricing
Opportunities
  • Development of low-carbon products
  • Enhanced reputation as a sustainability leader

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

The three pillars of the Sustainability and Society strategy align with several UN SDGs

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Glassdoor’s 2021 Best Places to Work (four countries)
  • Comparably awards for Best Company Global Culture, Best Company Leadership, Best Company for Career Growth, Best Company for Compensation, and Best Company for Work-Life Balance

Reporting Period: 2021-10 to 2022-09

Environmental Metrics

Total Carbon Emissions:215,680 tCO2e/year
Scope 1 Emissions:798 tCO2e/year
Scope 2 Emissions:3,505 tCO2e/year
Scope 3 Emissions:211,377 tCO2e/year
Renewable Energy Share:45%
Water Consumption:21 megalitres/year
Waste Generated:446 tons/year
Carbon Intensity:111 tonnes/revenue

ESG Focus Areas

  • Climate change
  • Data protection and security
  • Proper use of customer data
  • Attracting and retaining talent
  • Energy efficiency and low-carbon operations
  • Innovation to support customers
  • Business ethics
  • Diversity, equity and inclusion of the workforce
  • Tax transparency

Environmental Achievements

  • Reduced 2022 emissions by 3% compared with 2021, driven by a reduction in property and home-working related emissions.
  • Increased renewable energy provision by 100% since 2019 (45% of total electricity consumption from renewable sources in FY22).
  • Acquired Spherics (rebranded Sage Earth), a carbon accounting software solution for SMBs.

Social Achievements

  • Improved Employer Brand Index score to 8.08 out of 10 in FY22.
  • Recruited 45 colleagues via Pathways programme in FY22 (87.5% increase from 2021).
  • Sage Foundation raised $1,044,665 for global non-profits in FY22.
  • Launched a UK and Ireland Menopause Policy.
  • Launched a new US Parental Leave Policy offering 18 weeks of paid leave.

Governance Achievements

  • Submitted Science Based Target to SBTi in June 2022.
  • Updated Supplier Code of Conduct to include sustainability as a core principle.
  • Integrated ESG as a Principal Risk and part of the Long Term Incentive Plan targets.
  • Appointed an EVP for Sustainability and Foundation and established a team of ESG subject matter experts.
  • Strengthened reporting against regulatory and voluntary frameworks (GRI 2016 Standards Core option and SASB, TCFD reporting, UN SDGs).

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2040.
Medium-term Goals:
  • Halve Sage's carbon emissions by 2030.
  • Launch SBCA KPI Benchmarking Tool in second half of FY23.
Short-term Goals:
  • Achieve full WCAG 2.1 grade AA by 2025 for all cloud products.

Environmental Challenges

  • SMBs face significant barriers to decarbonising (lack of time, costs, complex reporting, uncertainty about quantifying emissions).
  • Data gaps in Scope 3 reporting.
  • Maintaining data security in an ever-changing threat landscape.
Mitigation Strategies
  • Developed Sustainable Supply Chain Strategy.
  • Joined CDP Supply Chain Programme.
  • Launched Trust and Security Hub for SMBs.
  • Acquired Sage Earth to help SMBs measure and cut their carbon footprint.
  • Investing in data compliance and governance, data ethics.

Supply Chain Management

Responsible Procurement
  • Updated Supplier Code of Conduct.
  • ESG evaluation process for new suppliers.
  • Supplier engagement programme for existing suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Sustainability Accounting Standard for the Software and IT Services Industry

UN Sustainable Development Goals

  • Goal 5
  • Goal 8
  • Goal 10
  • Goal 13
  • Goal 17

Initiatives aligned with SDGs through mapping exercise.

Sustainable Products & Innovation

  • Sage Earth

Reporting Period: 2022-10 to 2023-09

Environmental Metrics

Total Carbon Emissions:195,799 tCO2e
Scope 1 Emissions:1,225.6 tCO2e
Scope 2 Emissions:3,255.5 tCO2e
Scope 3 Emissions:191,317.8 tCO2e
Renewable Energy Share:68%
Total Energy Consumption:47,430 GJ
Water Consumption:57 megalitres
Waste Generated:354 metric tons
Carbon Intensity:89.7 tonnes/£1,000,000 revenue

ESG Focus Areas

  • Climate change
  • Cyber security and data privacy
  • Diversity, equity, and inclusion
  • Innovation to empower customers and SMBs
  • Colleague development and retention
  • Digital equality
  • Data and AI ethics
  • Local communities
  • Business conduct
  • Governance effectiveness
  • Human rights
  • Pollution
  • Resource use and circular economy
  • Tax and regulatory compliance
  • Water and marine resources
  • Wellbeing and colleague health and safety

Environmental Achievements

  • Reduced total location-based emissions by 5.1%
  • Increased renewable energy share to 68%
  • Reduced energy intensity by 6.0 MWh/Revenue

Social Achievements

  • Launched Data and AI Ethics Principles and policy
  • Increased colleague success network membership to 18%
  • Improved Glassdoor DEI score to 4.3

Governance Achievements

  • Implemented Sustainable Supply Chain Strategy
  • No confirmed incidents of corruption
  • No legal actions for anti-competitive behavior

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2040
Medium-term Goals:
  • 50% emissions reduction by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Data gaps in Scope 3 reporting
  • Increasing accuracy of supplier-specific data
  • Addressing data privacy and competitive advantage concerns in diversity reporting
Mitigation Strategies
  • Used suppliers’ primary emissions data directly collected through the CDP Supply Chain questionnaire for 12 suppliers
  • Continued to use the CDP Database to calculate supplier-specific emissions for a further 38 suppliers
  • Improved data collection processes to reduce undisclosed gender in reporting

Supply Chain Management

Supplier Audits: 1,235 suppliers assessed

Responsible Procurement
  • Supplier Code of Conduct
  • D&B ESG assessment for new suppliers with spend over £25k

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD

Certifications: Null

Third-party Assurance: Bureau Veritas UK Limited, EcoAct

UN Sustainable Development Goals

  • SDG 5: Gender equality
  • SDG 8: Decent work and economic growth
  • SDG 10: Reduced inequalities
  • SDG 13: Climate action
  • SDG 16: Peace, justice and strong institutions

Sage's initiatives contribute to these goals through various programs and strategies detailed in the report.

Sustainable Products & Innovation

  • Sage Earth

Awards & Recognition

  • BITC/Times Top 50 Employers Gender Equality List

Reporting Period: 2023-10 to 2024-09

Environmental Metrics

Total Carbon Emissions:193,430 tCO2e (market-based)
Scope 1 Emissions:1,399 tCO2e
Scope 2 Emissions:3,236 tCO2e
Scope 3 Emissions:190,152 tCO2e
Renewable Energy Share:54%
Total Energy Consumption:52,061 GJ
Water Consumption:47,937 m³
Waste Generated:270 metric tons
Carbon Intensity:83.5 tonnes/revenue £1,000,000

ESG Focus Areas

  • Climate change
  • Cyber security and data privacy
  • Diversity, equity, and inclusion
  • Innovation to empower customers and SMBs
  • Colleague development and retention
  • Digital equality
  • Data and AI ethics
  • Local community investment and support
  • Biodiversity and ecosystems
  • Business conduct
  • Governance effectiveness
  • Human rights
  • Pollution
  • Resource use and circular economy
  • Tax and regulatory compliance
  • Water and marine resources
  • Wellbeing and colleague health and safety

Environmental Achievements

  • Reduced market-based emissions by 0.3% in FY24 and 16.6% since 2019 baseline
  • Launched a low-emission commuting and lift-sharing pilot
  • Launched a personal carbon tracker app for colleagues
  • Used the planetary boundaries approach to assess nature-related risks
  • Launched Sage Earth Benchmarking Services
  • Increased renewable energy share to 54%

Social Achievements

  • Launched the Sage Career Returners programme
  • Sage Foundation exceeded its target of 34,000 underserved entrepreneurs by supporting 38,029
  • Sage Foundation exceeded its target of 33,000 people by equipping 37,353 individuals with skills
  • 41% of teams meeting gender diversity target (34% in FY23)
  • Improved inclusion score to 77.67

Governance Achievements

  • Established a Global Risk Committee to oversee ESG Principal Risk
  • Developed a Human Rights Charter
  • All colleagues received mandatory training on Code of Conduct

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions
Medium-term Goals:
  • Achieve representation of no more than 60% of men, women, or non-binary people in any leadership team by end of FY26
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Higher electricity "grid" emissions across France, Canada, and South Africa related to use of sold products
  • Increased supply chain capital expenditure
  • Increase in business travel
  • Data gaps in Scope 3 reporting
Mitigation Strategies
  • Continuously reviewing data collection processes
  • Using suppliers’ primary emissions data (CDP Supply Chain questionnaire)
  • Developing methodology for data improvement
  • Engaging with material suppliers to obtain more data

Supply Chain Management

Supplier Audits: 1,020 suppliers assessed (30% of total spend)

Responsible Procurement
  • Supplier sustainability requirements
  • Dun & Bradstreet (D&B), EcoVadis, SBTi, or CDP platforms screening

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB Sustainability Accounting Standard for the Software and IT Services Industry, TCFD, UN SDGs

Certifications: ISO 27001

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

  • Goal 5: Gender equality
  • Goal 8: Decent work and economic growth
  • Goal 10: Reduced inequalities
  • Goal 13: Climate action
  • Goal 16: Peace, justice and strong institutions

Initiatives contributing to these goals are detailed in the UN SDGs index section of the report.

Sustainable Products & Innovation

  • Sage Earth Benchmarking Services

Awards & Recognition

  • Forbes Top Employer for Women
  • FT Diversity Leaders 2024