Zscaler, Inc.
Climate Impact & Sustainability Data (2022-08 to 2023-07, 2023-08 to 2024-07)
Reporting Period: 2022-08 to 2023-07
Environmental Metrics
Total Carbon Emissions:30,022 tCO2e (CY2022)
Scope 1 Emissions:362 tCO2e (CY2022)
Scope 2 Emissions:22,877 tCO2e (CY2022)
Scope 3 Emissions:7,439 tCO2e (CY2022)
Renewable Energy Share:100% (through REC purchases)
Total Energy Consumption:221,769 GJ (CY2022)
Waste Generated:21,000 pounds of retired server hardware repurposed or recycled in 2022
ESG Focus Areas
- Energy and Climate
- Reducing Waste
- Business Ethics
- Information Security and Privacy
- Risk Management
- Leadership and Talent Development
- Diversity and Inclusion
- Community Engagement
Environmental Achievements
- Achieved carbon neutrality in 2022 through carbon offsets.
- Global data center and offices powered by 100% renewable energy since 2021.
- Committed to the Science Based Targets initiative in 2023.
Social Achievements
- 92% of employees say Zscaler is a Great Place To Work.
- 88% of employees are highly engaged.
- Launched a new performance management framework and refined leadership principles.
Governance Achievements
- ESG oversight by board committee.
- Security & Privacy oversight by board committee.
- Certified to international security and privacy standards.
Climate Goals & Targets
Short-term Goals:
- Net zero carbon emissions by 2025.
Environmental Challenges
- Increasing diversity in the tech industry.
- Managing climate-related risks (though no substantive financial or strategic impacts were identified).
Mitigation Strategies
- Implementing a strategy focused on attracting and supporting a diverse workforce.
- Investing in training on how to reduce unconscious bias in hiring.
- Setting a goal to reach net zero emissions by 2025.
- Making technological investments to reduce energy consumption and GHG emissions.
- Maintaining redundant architecture and global footprint to limit risk from weather events.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Security risk assessments of suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events impacting data centers, suppliers, and workforce.
- Sea level rise, wildfires, and heat waves impacting operations.
Transition Risks
- Increased emissions reporting requirements.
- New products’ energy demands.
- Increased energy-related costs.
- Reputational risks.
Opportunities
- Increased demand for cloud services due to climate change.
Reporting Standards
Frameworks Used: TCFD, SASB
Awards & Recognition
- Certified as a Great Place To Work in seven countries
- Fortune Best Workplaces in the Bay Area 2023
- UK’s Best Workplaces for Women 2023
- Fortune Best Workplaces for Millennials 2023
Reporting Period: 2023-08 to 2024-07
Environmental Metrics
Total Carbon Emissions:69,083 tCO2e (location-based)
Scope 1 Emissions:340 tCO2e
Scope 2 Emissions:22,439 tCO2e
Scope 3 Emissions:46,304 tCO2e
Renewable Energy Share:100% (through RECs)
Total Energy Consumption:224,863 GJ
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:12.0 MTCO2e/revenue ($m)
ESG Focus Areas
- Governance
- Environment
- People
- Business Ethics
- Risk Management and Resilience
- Information Security and Privacy
- Energy and Climate
- Enabling Green IT
- Reducing Waste
- Leadership and Talent Development
- Diversity and Inclusion
- Community Engagement
Environmental Achievements
- Powered global data centers and offices with 100% renewable energy since 2021
- Achieved carbon neutrality in operations
- Reduced energy usage by up to 93% and emissions by 15 times compared to on-premises solutions (based on 2022 LCA)
- Repurposed or recycled nearly 2,000 pounds of retired server hardware
- Diverted over 2,700 pounds of e-waste from landfills
Social Achievements
- 85% of employees say Zscaler is a Great Place To Work
- 84% of employees are highly engaged
- 23% growth in the number of employees
- Launched community leader program supporting employee-organized volunteer events
- Launched volunteer grants program
- Supported various CSR initiatives in India, including establishing two cybersecurity resource centers and planting over 12,000 trees
Governance Achievements
- Board committee oversight of environmental, social, and governance policies
- Mandatory Code of Conduct training for all employees and contractors
- Confidential whistleblower hotline available
- Rigorous security risk assessments for vendors
- Data privacy and information security training for contractors
- Periodic security assessments of supplier controls
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Net zero for Scope 1 and 2 emissions by 2025
Environmental Challenges
- Scope 3 emissions from procurement of computer hardware
- Increasing frequency of extreme weather events
- Challenges in increasing representation across the tech industry
Mitigation Strategies
- Optimizing hardware use and deploying efficient infrastructure
- Developing a science-based target aligned with limiting global warming to well below 1.5°C
- Investing in training on how to reduce unconscious bias in hiring
- Accessing broader candidate pools
Supply Chain Management
Supplier Audits: Periodic security assessments
Responsible Procurement
- Supplier Code of Conduct
- AI due diligence process for vendors
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Not disclosed
Opportunities
- Increased demand for cloud services due to climate change
Reporting Standards
Frameworks Used: TCFD, SASB
Certifications: Great Place To Work (11 countries)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Zscaler Zero Trust Exchange platform
Awards & Recognition
- Comparably’s Best Companies to Work For in the Bay Area 2023
- UK’s Best Workplaces 2024