Climate Change Data

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