Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cybersecurity risks to society
• Information security and privacy
• Product environmental impacts
• Environmental management and climate change impacts
• Diversity, equity and inclusion
• Cybersecurity skills gap
• Business ethics
• Responsible product use

Environmental Achievements

• Achieved 100% renewable electricity across all owned facilities.
• New LEED-Gold certified headquarters building implemented energy efficiency measures, saving 76,800 gallons of water annually.
• Reduced waste by 21% in 2021 at its largest North American warehouse.
• FortiGate products show a 61% average reduction in energy consumption compared to peer products.

Social Achievements

• Increased percentage of women in the workforce by 26%.
• Increased female new hires by 71.6% compared to 2020.
• Trained 164,982 people in cybersecurity.
• Issued 226,258 certifications.

Governance Achievements

• Established a Social Responsibility Committee of the Board of Directors to oversee sustainability programs.
• Created an internal CSR Committee to define CSR priorities and strategies.
• 100% of employees completed mandatory annual ethics and compliance training.
• 100% of direct suppliers screened using human rights criteria, FCPA, sanction lists, and embargoed countries.

Climate Goals & Targets

Environmental Challenges

• Significant worldwide shortage of skilled cybersecurity professionals.
• Addressing the environmental footprint of products and operations.
• Maintaining high ethical standards across the value chain.

Mitigation Strategies

• Pledged to train one million people in cybersecurity by 2026.
• Publicly committed to carbon neutrality by 2030.
• Implemented various policies and training programs to promote ethical business practices and human rights.

Supply Chain Management

Supplier Audits: 100% of new direct suppliers screened.

Responsible Procurement

• Vendor/Supplier Code of Conduct
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, UN SDGs

Certifications: LEED Gold (Headquarters), ISO 27001 (limited scope), SOC2 (for data centers and primary cloud services)

Third-party Assurance: Ruby Canyon Environmental, Inc. (Limited assurance on GHG emissions)

UN Sustainable Development Goals

• 5, 7, 8, 10, 13

Not disclosed

Sustainable Products & Innovation

• Energy-efficient security appliances and cloud-based solutions.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Cybersecurity risks to society
• Information security and privacy
• Product environmental impacts
• Environmental management and climate change impacts
• Diversity, equity and inclusion
• Cybersecurity skills gap
• Business ethics
• Responsible product use

Environmental Achievements

• 66% average reduction in product energy consumption (compared to equivalent models from previous generation)
• 100% biodegradable packaging for FortiGate-40/60/70F series
• 33% reduction on FortiGate 4200/4400F series size vs E series
• Obtained LEED-Gold certification for our new HQ
• Completed implementation of our Environmental Management System
• Committed to the Science-based Target Initiative (SBTi)

Social Achievements

• 219,465 people trained in cybersecurity (part of a goal to reach 1 million by 2026)
• +39% year-on-year increase in women hired
• Best Workplace recognition from Great Place to Work and Glassdoor
• Free cyber training in K-12 schools districts adopted by 100+ U.S. school districts
• 200+ female employees joined the new US WEMS ERG

Governance Achievements

• 100% of employees communicated Fortinet's Code of Business Conduct and Ethics
• 100% of eligible employees completed quarterly Sales Compliance Training
• 100% of Fortinet’s new direct suppliers screened using human rights criteria, FCPA, sanction lists
• 91% of distributors globally completed Fortinet's Compliance and Business Ethics training
• 100% of key contract manufacturers completed Fortinet's Compliance and Business Ethics training

Climate Goals & Targets

Environmental Challenges

• Worldwide energy crisis
• Looming fears of a recession
• Massive layoffs across segments of the technology sector
• Supply chain disruptions
• Ukraine war
• Cybersecurity skills gap

Mitigation Strategies

• Responsiveness to market needs
• Implementing sustainability strategy across material areas
• Signing on to the Science-Based Target Initiative (SBTi)
• Expanding free training offerings, focusing on schools (goal of training one million people in cybersecurity by 2026)
• Developing a comprehensive decarbonization plan (to be implemented by 2024)

Supply Chain Management

Supplier Audits: Five top contract manufacturers (representing approximately 80% of spend) participated in EcoVadis’s supply chain assessment.

Responsible Procurement

• Two-step verification process for new direct suppliers
• Screening against human rights, FCPA, and sanctions lists
• Human rights clauses in service agreements
• Updated human rights and ethical business clauses in agreements with contract manufacturers
• Human rights language in product license agreement, product datasheet template, and partner and supplier codes of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Fire
• Floods

Transition Risks

• Legal and policy risks
• Technology risks
• Market and reputational risks

Opportunities

• Developing new, more energy-efficient products or services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: LEED Gold, SOC2, HIPAA, TISAX, ISO 14001 (in progress for largest warehouse)

Third-party Assurance: Ruby Canyon Environmental, Inc. (Limited assurance on GHG emissions)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through training programs, diversity and inclusion efforts, energy efficiency improvements, and climate action commitments.

Sustainable Products & Innovation

• Energy-efficient FortiGate 1000F (80% less power than similar solutions)

Awards & Recognition

• Inclusion in Dow Jones Sustainability Indices (DJSI) – World and North America

Environmental Metrics

ESG Focus Areas

• Talent development
• Diversity, Equity, and Inclusion (DEI)
• Industry collaboration
• Technology innovation
• Decarbonization
• Addressing cybersecurity risks to society
• Respecting the environment
• Promoting responsible business

Environmental Achievements

• ~455 tons of CO2 emissions avoided through eco-friendly packaging
• 62% average reduction in product energy consumption
• 100% renewable electricity in 80% of owned sites

Social Achievements

• 213,440 people trained in cybersecurity in 2023
• 340+ leaders trained on fostering inclusion
• 6 recognitions as one of the best places to work
• 15 cybercriminal groups arrested through the INTERPOL Gateway program
• $40M prevented in financial losses

Governance Achievements

• 100% of distributors and key contract manufacturers completed Fortinet’s training on compliance and business ethics
• Established a risk management steering committee to enhance anti-corruption program
• Renewed and expanded ISO 27001 certificate and scope of SOC2 and HIPAA examinations
• Launched the Fortinet Trusted Center

Climate Goals & Targets

Environmental Challenges

• Continued inequality and disillusionment among workers
• Climate change and transition to sustainable energy
• Cybersecurity risks to society
• Cybersecurity skills gap
• Scope 3 emissions (majority of GHG emissions)

Mitigation Strategies

• Commitment to net-zero greenhouse gas emissions by 2030 (Scope 1 & 2) and 2050 (all scopes)
• Investments in green energy sources (solar panels)
• Continuous improvement of product energy efficiency
• Collaboration with law enforcement and cybersecurity peers
• Expanded support to educational institutions
• Development of a decarbonization plan for Scope 3 emissions
• Engagement with suppliers and vendors on climate action

Supply Chain Management

Supplier Audits: 100% of top contract manufacturers completed compliance training

Responsible Procurement

• Fortinet Vendor/Supplier Compliance Training
• Supplier code of conduct
• Vendor risk assessment
• Responsible Minerals Initiative (RMI) alignment

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Fire
• Floods

Transition Risks

• Legal and policy risks
• Technology risks
• Market and reputational risks

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, CDP

Certifications: ISO 14001, ISO 27001, SOC 2, HIPAA

Third-party Assurance: TÜV SÜD America, Inc. - Ruby Canyon (Limited assurance on GHG emissions)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Energy-efficient FortiGate products
• SP5 ASIC

Awards & Recognition

• Dow Jones Sustainability Indices member
• UN Global Compact member
• Great Place to Work awards
• Glassdoor awards
• Diversity, Equity, and Inclusion Excellence Award from HR Miami