Sustainability-Report-Fy12.Pdf
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Sustainable Company | Sustainable World Salesforce.com Sustainability Report FY2012 1 Overview Introduction Overview from Marc Benioff Highlights 1 2 3 Our Journey Toward Fostering Environmental Employee A Spirit Operating Sustainable Company Sustainability Success of Service with Integrity 4 5 12 18 21 The Salesforce.com Working Cloud: Slashing Building Responsibly: Our Customers’ Stronger Trust and Sustainable World Carbon Emissions Communities Governance 23 24 26 31 About Salesforce.com Our Products Awards and About This and This Document Company and Services Recognition Document 33 34 35 36 37 2 Overview | Introduction from Marc Benioff Dear Friends, I am delighted to share with you information and match our employees I’m proud of what we’ve accomplished, our first ever sustainability report. with community service opportunities but we have much more to do. As Although this type of reporting is near their local offices. Our sales always, we believe in the power of new for us, sustainability — a focus cloud helps hundreds of thousands sharing the model. It is my hope that on addressing environmental, of customers reduce their greenhouse this report goes beyond detailing social and economic issues — was gas emissions through the efficiency what we are doing at salesforce.com, incorporated into salesforce.com of our platform. We encourage and inspires others to work toward a sustainable world. We know since the company’s founding. employees to serve our communities that by working collectively we can through volunteering, and we find We’ve been named World’s Most magnify the difference we can ways to help employees get the most Innovative Company by Forbes in make. Thank you for joining us. out of their work at salesforce.com. 2011 and 2012. Innovation doesn’t Aloha, start or end with our products, but Most recently, we have transformed is integrated into everything we do, what the “office” looks like — from including sustainability. Salesforce.com Marc Benioff eliminating assigned cubes to reducing is committed to being a sustainable Salesforce.com travel to developing creative space Chairman & CEO company by harnessing our culture for collaboration. In September, we of innovation to foster a better world. opened our newest office building, Company-wide, we find ways to 50 Fremont, in San Francisco. The space, reduce our greenhouse gas emissions, which was built to LEED Gold certification waste and energy usage. And, we’re specifications, reflects a next-generation implementing our own tools to lead office: a more social, open, mobile the revolution. Chatter has connected and sustainable workplace. We’ve employees on product innovation — included internal stairs so employees and unearthed ideas to make our can walk between floors rather than workplaces more environmentally rely on elevators and we increased friendly. Force.com has allowed desk hoteling spaces to foster greater developers to build powerful apps collaboration, introduce more that connect customers to real-time flexibility, and increase efficiency. 3 Overview | Highlights Sustainable Company At salesforce.com, we incorporate sustainability into all aspects of our business. At its core, we view sustainability as fundamental to addressing environmental, social and economic issues; all three areas are intertwined and impact one another. Carbon Usage & People Growth Data Center Efficiencies & Transactions Building a Greener Company Our employee % Transactions grew by New office locations and renovations population 47 achieve LEED Gold rating or above grew 47% from in between FY2011 and FY2012. FY2011-FY2012, 63% % but our carbon per full-time While carbon 15.8 employee only per transaction increased 5.7%. decreased by % -20% 7.5 % As our total office square footage increased 15.8%, 5.7 Our data center efficiency (PUE) improved by 4% between FY2011 and FY2012. our carbon per square foot only increased 7.5%. Sustainable World We strive to create a more sustainable world by using our company assets — technology, services, people and resources — to help others achieve their social and environmental objectives. Cutting Carbon Emissions with Our Cloud Product Donations & Grants Helping the Community In FY2012, Salesforce.com Foundation made Our employees have contributed 95% 64% grants totaling nearly $6 million. As of + less carbon more energy January 31, 2012, the salesforce.com 300,000 hours than on-premises Multitenancy + of community service to Architecture efficient Foundation has distributed $30 million. servers than private clouds 2,300+ organizations vs vs We estimate our cloud has helped avoid 796,900 tonnes of CO2e As of January 31, 2012, more than 14,000 emissions (1999–2011), as compared to on-premises and private clouds. nonprofit organizations are using our products. 4 Overview Sustainable1 Company Our Journey Fostering A Spirit Operating Toward Employee of Service with Integrity Environmental Success Sustainability ENVIRONMENT At salesforce.com, we incorporate sustainability into all aspects of our business. We believe it is essential in our approach to practicing good corporate citizenship and social responsibility. For us, our work around sustainability encompasses environmental, social SOCIETY and economic issues, both internally and for our customers. Being a sustainable company means looking inward at our own ECONOMY operations to find ways to better manage the environmental and social impacts of our business: reducing our carbon and energy footprint in our operations, motivating and developing our employees, and supporting our community through service and support. 5 Sustainable Company | Our Journey Toward Environmental Sustainability Our Journey Toward Environmental Sustainability Although salesforce.com doesn’t extract materials from the earth or manufacture products, we do have an environmental impact — and we work Metric tonnes CO2e to reduce our footprint in these areas. For us, this primarily means resource efficiency related to data Scopes 1 and 2 centers, office buildings and employee travel. Carbon Footprint FY2011 13,944 For a company growing as rapidly as salesforce.com, we are not surprised to see the absolute (Scopes 1, FY2012 2 and 3) carbon emissions of our global operations 21,615 increase from FY2011 to FY2012. But we are committed to decreasing our carbon intensity by finding more environmentally efficient ways to operate. Scope 3 Salesforce.com accounts for Scopes 1, 2 and 3 in its greenhouse gas footprint. Direct emissions, or emissions FY2011 from sources that are owned or controlled by salesforce.com, 20,442 are included in Scope 1 which includes onsite natural gas combustion, leaked refrigerants, private jet travel, etc. Indirect emissions, or emissions that are FY2012 consequences of the activities of salesforce.com but occur 36,185 at sources owned or controlled by another company, are included in Scope 2 and Scope 3. These include electricity usage, business travel and employee commuting. 6 We measure carbon intensity Even though revenues and hiring by full-time employee and unit ” revenue. While both these have increased significantly in metrics have increased between FY2011 and FY2012, the growth is FY2012, our carbon emissions much smaller compared to our increase in revenue of 37%, and have not grown the 47% growth in our employee headcount over the same period. as quickly.” To be transparent about our carbon emissions, we voluntarily respond to the Carbon Disclosure Project’s Metric % Metric Investor Information request. The 47 tonnes CO2e tonnes CO2e Carbon Disclosure Project is an per full-time per dollar independent nonprofit organization employee revenue % whose mission is to catalyze action toward a more sustainable 37 economy. We are proud to have achieved a disclosure score of 94 (out of 100) in 2012. To learn more about our public disclosure, visit the Carbon Disclosure Project. % 13.4 % 5.7 Increase in New Increase in Metric Increase in Increase in Metric Employees from Tonnes CO2e per Revenue Tonnes CO2e per FY2011 to FY2012 Full-Time Employee from FY2011 Dollar Revenue from from FY2011 to FY2012 to FY2012 FY2011 to FY2012 FY2012 Intensity Figure -6 (based on 2.77 9.54x10 Scopes 1 and 2) 7 Data Centers Our data center efficiency improved by 4% between FY2011 and FY2012, as measured by power usage The biggest opportunity for us to manage our environmental effectiveness (PUE). In FY2012, our average PUE was impact is in creating more efficient data centers. Since 1.47, far better than the industry average of 1.8.1 we don’t own the buildings that house our data centers, we have concentrated on increasing the efficiency of Since our energy consumption is driven by how intensely our hardware and the architecture of our platform. our customer base uses our services, we believe the amount Many of our data center management processes are of carbon emitted per transaction is a way to measure sustainability-oriented, including the following: data center effectiveness that more accurately reflects our industry and business model. Each time a customer updates • We procure the most energy-efficient servers and a sales opportunity or closes a support case, it requires equipment that meet our business requirements. energy to process the transaction. In FY2012, our carbon • We explicitly include environmental criteria in consideration -8 dioxide equivalent (CO2e) per transaction was 8.0x10 , of new co-location facilities through the RFP process. a 20% decrease from FY2011 even though the number of 2 • We implement