Climate Change Data

Environmental Metrics

ESG Focus Areas

• Achieving Business Excellence
• Operating Responsibly
• Caring for the Planet
• Investing in Our People
• Empowering Local Economies and Communities

Environmental Achievements

• Launched Temenos Carbon Emissions Calculator on Temenos Banking Cloud, providing CO2e emissions insights.
• 32% more carbon-efficient software release compared to previous version.
• 95% carbon emission savings for banks using Temenos Banking Cloud compared to on-premise solutions.
• 18.2% of total energy use from renewable sources.
• 45% reduction in energy use in UK offices vs 2021.
• 78% of waste diverted from landfill.
• 37% of treated domestic wastewater reused in India.

Social Achievements

• 36% gender diversity in global workforce.
• 41% racial diversity in the US workforce.
• Launched Women@Temenos employee resource group.
• 34,347 students reached through Adopt-iT CSR India program.
• USD 47,900 raised and matched for Ukraine crisis appeal.
• USD 84,569 raised and matched for Adopt a Kid – India program.

Governance Achievements

• 97.3% completion rate for Security Awareness training.
• 100% of focus suppliers underwent sustainability assessments.
• Zero instances of non-compliance with environmental laws and regulations.
• No confirmed incidents of corruption.

Climate Goals & Targets

Environmental Challenges

• Lengthened sales cycles in the second half of 2022 due to macroeconomic uncertainty.
• Increased costs due to post-pandemic cost increases, wage inflation, and one-off service delivery costs.
• Transition to subscription model impacting cash flow.

Mitigation Strategies

• Transition to subscription model to accelerate growth and drive recurring revenue.
• Positive working capital impact from SaaS growth offsetting negative impact from subscription shift.
• Focus on cost efficiency and operational improvements.

Supply Chain Management

Supplier Audits: 100% of focus suppliers underwent sustainability assessments.

Responsible Procurement

• Sustainability assessments as part of supplier qualification and annual performance reviews.
• Supplier Code of Conduct integrated into contracts.
• Supplier diversity framework.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Water shortage
• Floods
• Hurricanes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in SaaS and cloud adoption

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001:2015, ISO 27001:2013, ISO 27017, ISO 27018, ISO 22301:2019, ISO 9001:2015, ISO 20121:2012, SOC 1 Type 2, SOC 2 Type 2, CSA-CCM, PCI-DSS Level 1, ISO 20000-1:2018

Third-party Assurance: Grant Thornton S.A.

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 16
• 17

Initiatives aligned with various UN Sustainable Development Goals.

Sustainable Products & Innovation

• Temenos Banking Cloud
• Temenos Carbon Emissions Calculator
• ESG Investing-as-a-Service

Awards & Recognition

• S&P Global Gold Class
• Dow Jones Sustainability Index (Top in category)
• FTSE4Good Index (Top 10%)
• CDP Leadership (A/A-)
• ISS Prime
• MSCI AAA rating
• Sustainalytics (Top-rated ESG performer)
• Bloomberg Gender Equality Index (Top performer)
• S&P Global Sustainability Award Winner (3x)

Environmental Metrics

ESG Focus Areas

• Achieving Business Excellence
• Operating Responsibly
• Caring for the Planet
• Investing in Our People
• Empowering Our Local Economies and Communities

Environmental Achievements

• 31.3% Reduction of absolute Scope 1, 2 and 3 GHG emissions vs SBT 2019 baseline year
• 86% Use of renewable electricity in Temenos internal operations
• 73% ISO 14001:2015 certification coverage

Social Achievements

• Achieved a perfect 100% disclosure score in the Bloomberg 2023 Gender Equality Index (GEI) for the second year in a row
• Launched a new global wellbeing and culture team to ensure that there is an increased focus on supporting the health and wellbeing of our employees
• 36,694 students reached through the Adopt-iT CSR India Program

Governance Achievements

• Strong corporate governance and risk and ethics framework in place
• 99% Employees completed Ethical Business Code of Conduct and mandatory compliance trainings

Climate Goals & Targets

Environmental Challenges

• Meeting the substantial contribution criteria for EU Taxonomy alignment (implementation of expected practices of the European Code of Conduct for data centers, verification by an independent third party, and not exceeding the threshold of 675 global warming potential with refrigerants)
• Meeting the “Do No Significant Harm” (DNSH) criteria for EU Taxonomy alignment (climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy)
• Reducing Scope 3 emissions (purchased goods and services, capital goods, etc.)

Mitigation Strategies

• Actively working to implement measures ensuring compliance with EU Taxonomy criteria
• Conducting a comprehensive assessment to identify necessary actions for addressing current gaps in EU Taxonomy alignment
• Implementing emission reduction initiatives for operations, engaging with critical suppliers to achieve net-zero, and enabling clients to increase energy efficiency and reduce GHG emissions through the Temenos Banking Cloud and Carbon Emissions Calculator

Supply Chain Management

Supplier Audits: 100% of focus suppliers underwent sustainability assessments

Responsible Procurement

• Sustainability considerations integrated into Procurement Policy and practices
• Supplier Code of Conduct
• Sustainability and operational risk assessments as part of supplier selection

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Water shortage
• Floods
• Hurricanes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Transition to cloud-based infrastructure

Reporting Standards

Frameworks Used: GRI Standards, SASB Software and IT Services Sustainability Accounting Standard, TCFD, UNGC

Certifications: ISO 14001:2015, ISO 27001:2022, ISO 27017:2015, ISO 27018:2019, ISO 22301:2019, ISO 9001:2015, AICPA SOC 1 Type 2, SOC 2 Type 2, SOC 3, CSA-STAR Level 2, PCI-DSS Level 1, CMMI CL 3

Third-party Assurance: Grant Thornton S.A.

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Details on how initiatives contribute to each SDG are provided in the 'Contribution to the UN Sustainable Development Goals' section.

Sustainable Products & Innovation

• Temenos Banking Cloud
• Temenos Carbon Emissions Calculator

Awards & Recognition

• Ranked #1 in the Dow Jones Sustainability Index (DJSI) in the software category globally for the second year running
• S&P Global Gold Class
• FTSE4Good
• MSCI
• ISS
• Sustainalytics
• CDP
• EcoVadis
• SXI Switzerland Sustainability Index