Climate Change Data

Coupa Software Incorporated

Climate Impact & Sustainability Data (2020, 2022-02-01 to 2023-01-31)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Supply chain sustainability
  • Supplier diversity
  • Supplier inclusion
  • Anti-corruption/AML
  • Human rights
  • Diversity & Inclusion
  • Sustainable SCF
  • Carbon footprint
  • Environmental impact
  • Waste management

Environmental Achievements

  • Optimizes transport networks based on carbon footprint, savings, performance; supports digital twins to optimize supply chain emissions and energy consumption.
  • Calculates impact of digitization of spend transactions to calculate ESG impact (trees, water, fuel and CO2 saved) based on the avoidance input materials, energy and transport impact; efficiently designing and planning supply chains to reduce the burden on natural resources
  • Supply chain network optimization to reduce burden on natural resources (inclusive of circular economy aspects to reduce waste); supports forward auctions for asset reuse

Social Achievements

  • Designing supply chains to make healthcare accessible to underserved communities.
  • Coupa diversity database includes more than 500,000 unique diverse supplier records (not including SMBs) and more than 1 million supplier certification records, across 28 classifications, and global support
  • Partners with financial institutions to create awareness of SMB-designed financial programs. Coupa Pay allows suppliers to receive multiple types of payments, such as bank transfers, digital checks and virtual cards; lets suppliers set up card acceptance via Stripe.

Governance Achievements

  • Coupa’s distinctive ESG capabilities center around its ability to detect potential indicators of internal fraud (internally instigated corruption) and its ability to surface ESG violations, risks and benchmarks (e.g., percent of diverse/non-diverse PO spend internally compared with community average) through community intelligence.
  • Supports pre-built connectors with Refinitv World-Check One, and Dow Jones Risk & Compliance. Screening includes OFAC, Sanctions, PEPs, State Ownership, and Watchlists.

Climate Goals & Targets

Environmental Challenges

  • S2P suites are rarely the collector of primary data on ESG areas. Instead, they integrate with third-parties that reactively monitor relevant risks. The challenge is that the suites themselves do not control the data.
  • The scope of S2P suites encompasses internal stakeholders and tier 1 suppliers. Suites rarely, if ever, enable multi-tier visibility, and even the scenarios that do include tier 2 or tier 3 suppliers only occur by invitation from tier 1 suppliers.
Mitigation Strategies
  • Coupa incorporates various sustainability data sources such as US Environmental Protection Agency and UK Department for Environment, Food & Rural Affairs emission factors for supply chain modeling and design.
  • Coupa has native social responsibility data sources covering suppliers in global regions like the US, UK, South Africa, Australia and more.
  • Coupa also offers prebuilt connectors to numerous third-party data providers that specialize in niche ESG areas, including Refinitiv, Dow Jones Risk & Compliance, EcoVadis, CSRhub and others.
  • Access to additional data providers is supported by the CoupaLink partner program, which has an open API for other solutions to integrate to Coupa; examples for ESG features include SupplyShift, IntegrityNext, FRDM and more.

Supply Chain Management

Responsible Procurement
  • Uses third-party data from providers such as FRDM, EcoVadis, SupplyShift, and IntegrityNext to calculate labor and human rights scores in supplier records.

Climate-Related Risks & Opportunities

Reporting Period: 2022-02-01 to 2023-01-31

Environmental Metrics

Total Carbon Emissions:35536 tCO2e/year (Scope 3)
Scope 1 Emissions:291 tCO2e/year
Scope 2 Emissions:1403 tCO2e/year (location-based), 2 tCO2e/year (market-based)
Scope 3 Emissions:33698 tCO2e/year
Renewable Energy Share:100% of electricity used at global facilities
Total Energy Consumption:3680 MWh/year
Waste Generated:6,000 LBS of e-waste collected from US and UK offices

ESG Focus Areas

  • Planet
  • People & Community
  • Platform Innovation
  • Principles & Ethics

Environmental Achievements

  • Achieved carbon neutrality in direct operations (Scopes 1 and 2) through renewable energy and carbon offsets.
  • Launched the Equal Air Project to improve air quality in underserved communities.
  • Engaged with top suppliers on ESG issues and partnered with EcoVadis for sustainability assessments.

Social Achievements

  • Introduced a new DEI strategy with three pillars: Talent, Workplace, and Marketplace & Communities.
  • Launched the first-ever Global Impact Week with volunteer and giving opportunities.
  • Expanded Employee Resource Groups (ERGs) to include Coupa Exceed for Asian and Pacific Islander employees.

Governance Achievements

  • Enhanced Enterprise Risk Management (ERM) operations by forming subcommittees.
  • Integrated ESG into the overall risk management structure.
  • Updated Code of Conduct and Supplier Code of Conduct to strengthen human rights and anti-corruption policies.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2040.
Medium-term Goals:
  • Reduce Scope 3 emissions from business travel and employee commuting by 25% per FTE by 2030.
  • Reduce Scope 1 & 2 emissions by 85% by 2030.
  • 67% of suppliers by emissions commit to establish science-based targets (SBTs) by 2028.
Short-term Goals:
  • Increase supplier completion rate of sustainability assessments to 75% in 2023.
  • Achieve 8% of total spend with diverse suppliers and 4% of suppliers certified as diverse in 2023.

Environmental Challenges

  • Climate change and its disproportionate impact on underserved communities.
  • Reducing Scope 3 emissions from business travel and employee commuting.
  • Managing ESG risks in the supply chain (95% of emissions come from the value chain).
Mitigation Strategies
  • Developed a climate strategy with a commitment to net-zero emissions by 2040.
  • Partnered with SBTi to validate near-term and long-term targets.
  • Implemented energy efficiency projects and renewable energy strategies.
  • Launched a supplier engagement pilot to help suppliers establish their own climate targets.
  • Leveraging Sustainable BSM capabilities to analyze carbon emissions and select more sustainable options.

Supply Chain Management

Supplier Audits: 31 audits across 13 product offerings in 2022

Responsible Procurement
  • Supplier Code of Conduct outlining expectations for human rights, health & safety, environmental responsibility, and supplier diversity.
  • Sustainability questionnaires in sourcing events.
  • Sustainability a core factor in evaluation of new suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Weather events
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, UNGC

Certifications: ISO 27001, ISO 27701, SOC 1, SOC 2, HIPAA, ITAR, PCI, TISAX, APEC PRP, FedRAMP

UN Sustainable Development Goals

  • Goal 13 (Climate Action)

Coupa's initiatives contribute to Goal 13 through its climate strategy, renewable energy use, and emissions reduction targets.

Sustainable Products & Innovation

  • Sustainable BSM capabilities in Coupa platform

Awards & Recognition

  • Great Place to Work Certified in the US, UK, Ireland, Germany, and India.