Salesforce has often preached about responsible capitalism, and today at Dreamforce, the company’s annual customer extravaganza, it announced a notable achievement in the battle against global climate change. The company said that it has achieved effective Net Zero energy usage across its entire value chain with 100% renewable energy, while purchasing carbon offsets when that’s not possible.
At the same time, it announced updates to the Sustainability Cloud, a product that the company sells to other organizations to manage their climate initiatives, proving you can be responsible, and still be capitalists. Suzanne DiBianca, chief impact officer & EVP for corporate relations at Salesforce, speaking at yesterday’s Dreamforce press event says the company is proud to be an example of a large organization taking positive climate action.
“I’m very excited about our commitment to climate action around being a Net Zero company today. And this is not in 2030, not in 2040, not in some other future moment. We know we have to accelerate, and we have gotten to Net Zero today including our entire value chain, which is Scope 1, 2 and 3. Very few companies have gotten here,” she said.
There is a lot of sustainability jargon there, so we spoke to Ari Alexander, GM of Sustainability Cloud to break it down for us. Alexander explained that the sustainability community measures a company’s carbon footprint in three main areas known as Scope 1, Scope 2 and Scope 3. “Scope 1 and 2 are what you own, what you operate, what you control and then what energy is procured in order to power your operation,” he said.
Scope 3 is everything else your company touches, which is referred to as ‘up and down the value chain’ in industry parlance. “The vast majority of the emissions that a company is responsible for are actually not in their direct operational control, but relate to their upstream suppliers that they procure goods and services from, or in the case of other industries the downstream use of the product or the life of a product,” he said. A downstream example might be what happens to your phone after you trade it in for a new one.
So when Salesforce says that it’s Net Zero up and down the value chain, it involves everything it controls and every company it interacts with in the act of doing business. Because there are so many variables here outside of Salesforce’s control, Alexander says when the company can’t ensure that a partner or vendor is in compliance with the standard set by the company, it buys what he calls “high quality carbon offsets.”
“Also for where we can’t do that immediately, we are purchasing high quality carbon offsets to make up the difference to be able to be fully Net Zero now, while we continue on that really important journey of reducing to absolute zero across the supply chain [over time],” he said.
In addition, the company announced updates to the Sustainability Cloud, the commercial tool it has developed to sell to other companies, using the same tools and technology that Salesforce is using in-house.
“Sustainability is undergoing a transformation in that it’s going from something that’s a nice to have to something that’s actually at the heart of business transformation itself. That it’s one of the mega trends of our time and growing exponentially every year, and part of what that means is that companies are moving significant resources in order to respond to the climate crisis and moving sustainability to the core of how they do business,” Alexander said.
At the same time, the company published a blueprint based on its own plans to be a more sustainable organization called the Salesforce Climate Action Plan (link to pdf) that it is making available for free online.
The company also announced plans to accelerate its tree planting goals to grow 30 million trees this year. This involves working with other organizations to plant, grow and restore 100 million trees in a 10 year period, a goal that they have been pushing to make happen much sooner.
Company president and COO Bret Taylor speaking at the Dreamforce press event said that the climate crisis has had an impact on everyone, and he believes Salesforce can have a meaningful impact based on its behavior while acting as an example for other organizations.
“We’re showing up at Dreamforce, […] really to recognize that we think business is the greatest platform for change and to paint a picture of this vision for inspiring every organization to become a trusted enterprise and address these crises [like climate],” Taylor said.