Climate Change Data

Simulations Plus, Inc.

Climate Impact & Sustainability Data (2020, FY2023)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:100% at Lancaster, CA location

ESG Focus Areas

  • Governance
  • Environment
  • Social
  • Human Capital

Environmental Achievements

  • Switched Lancaster headquarters to 100% renewable energy through Lancaster Choice Energy’s Smart Choice program.
  • Reduced the number of physical servers in the Buffalo, NY data center from 140 to 60 units through virtualization, improving energy efficiency.
  • Implemented company-wide recycling efforts.

Social Achievements

  • Supported academic research through partnerships, software donations, and sponsorships.
  • Funded awards and postdoctoral research.
  • Participated in the GivingTuesday movement, donating food, clothing, and financial support to organizations serving those in need.

Governance Achievements

  • Implemented a new unified Corporate Code of Business Conduct and Ethics.
  • Created a Corporate Data Protection Officer to standardize and advance the company-wide Data Protection & Customer Privacy framework.
  • Established a cross-functional ESG Steering Committee (in the process of being formed).

Climate Goals & Targets

Short-term Goals:
  • Full implementation of company-wide Quality Management System (QMS).

Environmental Challenges

  • Need for greater board diversity.
  • Need for a fully implemented company-wide Quality Management System (QMS).
Mitigation Strategies
  • Nominating Committee committed to considering qualified directors of diverse backgrounds.
  • Leveraging Cognigen's existing QMS to implement a company-wide system.

Supply Chain Management

Responsible Procurement
  • Vendor Qualification Process assessing cybersecurity, BC/DR planning, and employee compliance programs.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 9

Alignment with SDGs based on core business and citizenship initiatives.

Reporting Period: FY2023

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced footprint of US-based facilities by 35% from 19,300 sf to 12,400 sf.
  • Established a process to gather GHG emissions data points and set targets for expected SEC disclosure requirements.
  • Implemented LearnUpon LMS and Adobe e-signature to reduce in-person training travel and printed materials with virtual on-demand programs using digital materials.

Social Achievements

  • Expanded University+ program to 307 free software licenses across 51 countries to further education in our industry and support the next generation of scientists.
  • Established a paid parental leave program to support working parents.
  • Implemented employee engagement & recognition software to further promote and foster a culture of appreciation and inclusion.
  • Conducted employee engagement survey to ensure culture alignment and success of internal programs and benefits.

Governance Achievements

  • Updated company privacy policy and processes in the PDP Program to reflect changes to global personal data protection laws.
  • Developed and published Human Rights Policy to support our commitment to human rights.
  • Engaged a third-party consulting firm to carry out a board evaluation process and joined NACD to support ongoing director education.
  • Implemented pay vs. performance analysis for SEC disclosure of company financial performance measure used to determine executive compensation.
  • Updated Code of Conduct policy to reflect that we and our business partners meet the standards of business governance, environmental sustainability, and human rights.

Climate Goals & Targets

Environmental Challenges

  • Software renewal timing changes
  • Small biotech churn
  • General market dynamics: inflation, recession & forex
Mitigation Strategies
  • Software renewal timing changes completed
  • ASR program has been completed
  • Immunetrics acquisition completed in Q4’23
  • Appointed new CRO to lead sales effort
  • Reorganized operations to put clients first
  • Focus on supporting accelerated growth in distributor network

Supply Chain Management

Climate-Related Risks & Opportunities