Climate Change Data

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