Climate Change Data

CoStar Group

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:96,725 MT CO2e/year
Scope 1 Emissions:3,033 tCO2e/year
Scope 2 Emissions:5,773 tCO2e/year
Scope 3 Emissions:87,919 tCO2e/year
Renewable Energy Share:50%+ (data centers)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:6 tons/two years (computer equipment)
Carbon Intensity:17.4 MT CO2e per employee; 49.75 MTCO2e per $1 million in 2021 revenue

ESG Focus Areas

  • Climate Change
  • Energy Efficiency
  • Renewable Energy
  • Waste Reduction
  • Diversity & Inclusion
  • Employee Engagement
  • Data Privacy
  • Cybersecurity
  • Ethical Conduct

Environmental Achievements

  • Calculated baseline GHG emissions (96,725 MT CO2e), with Scopes 1 & 2 accounting for 9% and Scope 3 (categories 1-7) accounting for 91%.
  • Reduced data center locations by more than 75% since 2014 (from 18 to 6).
  • Lowered data center cabinet counts by over 40% (from 70 to 40).
  • Transitioned to cloud-based service providers, resulting in 3.6 times more efficient processing capacity than colocation.
  • 50%+ of electricity consumed at colocated data centers came from renewable energy sources.
  • Electrified a fleet of over 200 research vehicles and installed EV charging stations.
  • Partnered with certified e-waste disposal companies.
  • Expanded drone usage for aerial photography, reducing carbon emissions associated with travel.
  • Incorporated green building classification criteria into CoStar platform.
  • More than 30 million unique virtual tours in 2022 avoided carbon emissions from in-person visits.

Social Achievements

  • More than 1,100 employees moved into new roles in 2022, nearly 800 promotions.
  • Enhanced transparency in job opportunities for internal and external candidates.
  • Partnered with more than 300 organizations targeting underrepresented populations.
  • Required external search partners to ensure at least 50% of candidates are from underrepresented groups.
  • Six Employee Resource Groups (ERGs) sponsored programs on financial wellness, personal branding, and transgender awareness.
  • Rolled out new interviewer training for over 400 managers.
  • Conducted unconscious bias training for over 300 managers and recruiters.
  • Hired over 150 college seniors and over 100 summer interns in 2022.
  • Overall employee engagement score of 83% (7-point increase from three-year average).
  • DEI Dimension Score of 85% (up 6 points from 2021).
  • Manager Index Score of 84%.

Governance Achievements

  • Amended bylaws to incorporate stockholder-friendly provisions (simple majority voting, special meeting rights, proxy access).
  • Adopted a Human Rights Policy.
  • Amended Principles of Corporate Governance to promote board diversity.
  • Established resources for ethics and transparency concerns (third-party whistleblower hotline).
  • Developed best practices around data privacy.
  • Implemented measures to ensure greater information security.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions (implied long-term goal).
Medium-term Goals:
  • Achieve 100% renewable energy in data centers (cloud provider target by 2025).
Short-term Goals:
  • Complete CDP Climate Change Questionnaire in 2023.

Environmental Challenges

  • Reducing Scope 3 emissions (primarily purchased goods and services).
  • Maintaining data center energy efficiency despite company growth.
  • Attracting and retaining diverse talent.
  • Managing cybersecurity risks in a constantly evolving threat landscape.
Mitigation Strategies
  • Investing in energy-efficient data center technologies and cloud services.
  • Implementing green building criteria in CoStar platform.
  • Partnering with diverse suppliers and organizations.
  • Providing employee training and development programs.
  • Investing in cybersecurity infrastructure and threat management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier diversity program; increased direct spend with diverse suppliers by 325% in 2022.

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding (mentioned in product offerings section)
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI: Core Option

Certifications: LEED, Energy Star

Third-party Assurance: Independent third-party limited assurance on Scope 1, 2, and parts of Scope 3 emissions.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • CoStar platform with green building certifications and flood risk information.

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:127,601 MT CO2e
Scope 1 Emissions:3,139 MTCO2e
Scope 2 Emissions:8,103 MTCO2e
Scope 3 Emissions:117,078 MTCO2e
Renewable Energy Share:3.7%
Total Energy Consumption:40,779 MWh
Waste Generated:557 MTCO2e
Carbon Intensity:20.8 MTCO2e per employee (Scopes 1, 2 & 3)

ESG Focus Areas

  • Climate Change
  • Greenhouse Gas Emissions
  • Energy Efficiency
  • Renewable Energy
  • Data Center Sustainability
  • Employee Engagement
  • Diversity, Equity & Inclusion
  • Health & Safety
  • Philanthropic Programs
  • Data Privacy
  • Cybersecurity
  • Board Diversity
  • Supplier Diversity

Environmental Achievements

  • Reduced number of physical data center locations by more than 75% over the past 10 years.
  • Lowered data center cabinet counts by over 40%.
  • Transitioned on-premises data centers to more energy-efficient colocation facilities.
  • Plan to replace 100% of blade servers with Energy Star compliant models.
  • Movement to cloud service implementation is 3.6 times more efficient than a colocation footprint.
  • Richmond campus expansion designed to achieve LEED Net Zero and WELL Platinum certifications.
  • Homes.com includes environmental information in listings.
  • Research fleet of eco-friendly hybrid and electric vehicles.

Social Achievements

  • Monthly retention rate of 99.1%.
  • 15% of employees received internal promotions in 2023.
  • Employee average training hours increased 23% compared to the previous year.
  • Approximately one in five employees was a member of at least one Employee Resource Group (ERG) by the end of 2023 (70% increase from 2022).
  • Increased total direct spend with small businesses and diverse suppliers by 261% in 2023 (579% increase since the end of 2021).
  • Overall employee engagement score of 83%.

Governance Achievements

  • 2024 Board of Directors nominees are 50% women or ethnically diverse.
  • Board formalized oversight over ESG matters, including climate-related issues.
  • Conducted a legal and compliance risk assessment.
  • Fortified data privacy policies and practices.
  • Hardened defenses against cybersecurity threats.

Climate Goals & Targets

Long-term Goals:
  • Net Zero future (commitment made, targets to be set in 2024)

Environmental Challenges

  • Reducing total annual data center energy consumption despite significant company growth.
  • Managing environmental risks, including those related to climate change, for customers while minimizing CoStar's own environmental footprint.
Mitigation Strategies
  • Transitioning to cloud-based service providers.
  • Implementing measures to reduce emissions and increase efficiency within office locations and operations.
  • Setting targets in accordance with the Science Based Targets initiative (SBTi).

Supply Chain Management

Responsible Procurement
  • Supplier diversity program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Third-party Assurance: Cameron-Cole (limited assurance on Scope 1, 2, and parts of Scope 3)

Sustainable Products & Innovation

  • CoStar Real Estate Manager ESG solution

Awards & Recognition

  • Washington Business Journal award for advancing LGBTQ+ leadership and equality