NETSCOUT SYSTEMS, INC.
Climate Impact & Sustainability Data (2021, 2022-04 to 2023-03, 2023-04-01 to 2024-03-31)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Product leadership through sustainability by design
- Reducing electricity use in engineering labs and facilities
- Diversity, equity, and inclusion
- Supporting community digital inclusion programs
Environmental Achievements
- Achieved a 12.1% reduction in electricity use at the largest site through hardware rationalization, cooling system updates, and infrastructure monitoring.
- Eliminated almost three tons of corrugated box waste and one and a half tons of foam inserts by transitioning to reusable containers from major suppliers.
- Implemented enhanced recycling and composting at the Allen, Texas office, resulting in composting 7,900 pounds of food waste, recycling 4,600 pounds of single-stream materials, and recycling 72,781 pounds of cardboard in 13 months.
Social Achievements
- Launched NETSCOUT Without Borders, an employee engagement program including town halls and focus groups.
- Bolstered employee development and engagement efforts with inclusive engagement, skills assessments, career path development, and management/leadership development programs.
- Partnered with Tech Goes Home to bridge the digital divide, resulting in the creation of 29 new tutorials and translation of 60 existing tutorials into six languages.
Governance Achievements
- Revised Diversity, Equity, and Inclusion Policy.
- Designated a DEI program team reporting to the Chief Human Resources Officer.
- Achieved ISO 27001 certification for Information Security Management.
Climate Goals & Targets
Short-term Goals:
- Further reduce electricity use in engineering labs and facilities.
Environmental Challenges
- Reducing energy consumption across all global sites.
- Maintaining responsible sourcing practices throughout the supply chain.
- Addressing the digital divide and promoting digital inclusion.
Mitigation Strategies
- Expanded the pilot program for electricity reduction to seven other major engineering sites.
- Implemented a Vendor Code of Conduct to promote sustainable and fair working conditions.
- Partnered with nonprofit organizations to support programs that bridge the digital divide and provide digital skills training.
Supply Chain Management
Responsible Procurement
- Vendor Code of Conduct
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Cyber Adaptor (combining cybersecurity and service assurance for efficiency)
- vSTREAM (cloud-deployable software for efficient power consumption)
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:15100 mtCO2e (Location Based) / 14400 mtCO2e (Market Based)
Scope 1 Emissions:410 mtCO2e
Scope 2 Emissions:14700 mtCO2e (Location Based) / 14000 mtCO2e (Market Based)
Scope 3 Emissions:4580 mtCO2e
Renewable Energy Share:Less than 1%
Total Energy Consumption:Approximately 121,000 GJ
Water Consumption:Approximately 14.44 thousand cubic meters
Waste Generated:Not disclosed
Carbon Intensity:16.5 mtCO2e per million USD of revenue (Location Based) / 14.4 mtCO2e per million USD of revenue (Market Based)
ESG Focus Areas
- Human Capital Management
- Diversity, Equity, and Inclusion
- Community Impact
- Climate Change
- Sustainable Operations
- Sustainable Products
- Data Security
- Corporate Governance
- Risk Management
- Business Ethics
- Supply Chain Responsibility
Environmental Achievements
- Reduced aggregate Scope 1 and 2 emissions by 4.0% from FY2022 to FY2023
- Reduced emissions for the Ann Arbor Engineering lab by 23% through modernization, saving approximately 1000mtCO2e in emissions and expecting future savings of about 500mtCO2e per year.
- Installation of LED lighting at Westford, Massachusetts location resulted in an annual projected reduction of 359 metric tons of carbon dioxide equivalent (mtCO2e) emissions.
- Redesigned packaging for a product line resulting in the use of fewer packaging materials.
Social Achievements
- Launched Guardians of the Future program for recent college graduates and early-stage professionals.
- Continued support for key nonprofit partners with grants to Tech Goes Home, NPower’s Command Shift Coalition, and the CARDBoard Project and Dallas Innovation Alliance.
- Increased grant awards to $15,000 for community grant programs in Allen, Texas, and Westford, Massachusetts.
- Enhanced EAP offering across the globe.
Governance Achievements
- Achieved ISO 27001 certification demonstrating adherence to ISP best practices.
- Maintained an Anti-Bribery and Anti-Corruption Policy.
- Established a Trade Management and Compliance Program.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Tracking certain emissions such as indirect emissions in the value chain can prove challenging.
- Addressing the underrepresentation of women of color in tech careers.
Mitigation Strategies
- Improved data collection for Scope 1 and 2 greenhouse gas (“GHG”) emissions globally; Scope 3 GHG emissions inventories are underway.
- Participation in NPower’s Command Shift Coalition, a national consortium that advocates for strategies that invest in and inspire the advancement of young women of color in tech careers.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- NETSCOUT Vendor Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Increased indirect costs driven by increases in global mean temperatures and extreme variability in weather patterns
Transition Risks
- Changing customer demands for reduced environmental impact and operating costs
Opportunities
- Reductions in indirect operating costs driven by efficiency measures; increased revenues from demand for low-emission products and services.
Reporting Standards
Frameworks Used: SASB, TCFD
Certifications: ISO 27001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Cyber Adaptor (combines cybersecurity and service assurance); software designed for the cloud; reduced CPU and power usage; reduced disk usage via Smart Data; design for longevity.
Awards & Recognition
- Comparably’s Best Work-Life Balance and Best Compensation in 2022, and Best Leadership Teams in 2023
Reporting Period: 2023-04-01 to 2024-03-31
Environmental Metrics
Total Carbon Emissions:10800 mtCO2e (Market Based Scope 1 & 2)
Scope 1 Emissions:340 mtCO2e
Scope 2 Emissions:10500 mtCO2e
Scope 3 Emissions:54000 mtCO2e
Renewable Energy Share:Approximately 7%
Total Energy Consumption:106,000 GJ
Water Consumption:20.4 thousand cubic meters
Carbon Intensity:13.3 mtCO2e per million USD of revenue (Location Based Scope 1 & 2)
ESG Focus Areas
- Sustainability
- Community
- Cybersecurity
- Diversity, Equity & Inclusion
Environmental Achievements
- Reduced Engineering lab electricity use by 20% in Modena, Italy through automated power-saving processes.
- Achieved a 55% reduction in Scope 1 GHG emissions from a FY2022 baseline.
- InfiniStream solution resulted in an average 23% reduction in electricity consumption for participating customers.
Social Achievements
- Completed 200 team volunteer projects since 2013.
- Completed 31 team volunteer projects across six countries in FY2024.
- Awarded $10,000 grant and volunteer service to Project Kompass (Westford) and Meals on Wheels Collin County (Allen).
Governance Achievements
- Published the ESG Maturity Model.
- Reviewed and strengthened policy governance program, updating Code of Conduct and key policies.
- Achieved ISO 27001 certification.
Climate Goals & Targets
Short-term Goals:
- Reduce Scope 1 GHG emissions by 57.4%, Scope 2 by 42%, and Scope 3 (use of sold products) intensity by 51.6% by FY2030 (targets submitted to SBTi).
Environmental Challenges
- Reducing GHG emissions across Scope 1, 2, and 3.
- Addressing climate-related physical risks (sea level rise, extreme weather, etc.).
- Managing the ever-growing and evolving threat of cybercrime.
Mitigation Strategies
- Set science-based GHG emissions reduction targets (submitted to SBTi for validation).
- Developed a preliminary decarbonization pathway.
- Implemented information security processes to manage cybersecurity risks (annual training, third-party assessments, incident response plan).
Supply Chain Management
Responsible Procurement
- NetScout Vendor Code of Conduct (aligned with Responsible Business Alliance principles).
Climate-Related Risks & Opportunities
Physical Risks
- Sea level rise
- Extreme heat
- Droughts
- Wildfires
- Storm and flood damage
- Extreme cold
Opportunities
- Reductions in indirect operating costs from electricity efficiency measures.
- Increased revenues from products/services helping customers meet sustainability goals.
Reporting Standards
Frameworks Used: SASB, TCFD
Certifications: ISO 27001
Sustainable Products & Innovation
- InfiniStream solution