Data-Driven Goals and Science-Based Strategy

Everyday, on every continent, in every body of water, and in the air, there is an impact being felt because of our climate crisis. Climate change, poverty and health inequities disproportionately impact the most vulnerable populations and accelerate climate injustice. This is a challenge that no single organization can address on its own.

As a global leader in cybersecurity, Palo Alto Networks is committed to protecting everyone’s digital way of life. We are proud to be added to the EPA's Green Power Partnership and to announce that our 1.5C-aligned Science-Based Targets have been validated by the Science-Based Targets Initiative (SBTi). Central to that mission is a positive attitude about climate, the life on earth that it supports, and the overall sustainability that seeks to be out in front of every threat.

When we set out to build a sustainability strategy, we agreed that we must lead, not follow. We need climate science and specific Palo Alto Networks data to serve as guardrails. Then we can set goals and subsequent strategies to reach them.

We engaged with leading external consultancies, conducted a comprehensive analysis of our global environmental footprint, and obtained third-party assurance of our analysis and related emissions data across all three Scopes:

• Our environmental footprint is complete, transparent and third-party verified.
• Our goal setting is strategic, science-based and driven by data.
• Our sustainability strategy is focused on genuine impact.

Palo Alto Networks joined the Science Based Targets Initiative in 2021, setting and acting on emissions targets that are aligned to The United Nations Framework Convention on Climate Change (UNFCCC) guidance to limit global temperature rise to 1.5°C above pre-industrial levels. We are committed to doing our part to eliminate negative environmental impacts and injustices:

• Acting on our validated 1.5C-aligned Science-Based Targets.
• Achieving our 100% renewable energy goals (RE100, sunsetting our previous “carbon neutral” objective).
• Raising all sustainability ambitions by engaging in the most reputable coalitions, collaborating across our value chain, and advocating for meaningful climate policy.

Our Progress

In late 2022, we joined Silicon Valley Power’s Large Company Renewable Energy Program. Being in the first tranche of companies to participate will accelerate progress on our RE100 goal and SBTs. Notably, our Palo Alto Networks Santa Clara, California headquarters is over 60% of our global footprint, and this engagement puts all of it on renewable electricity.

In May 2023 we joined the EPA’s Green Power Partnership. By using green power, we are reducing our carbon footprint and supporting the transition to a clean energy future.

“EPA applauds Palo Alto Networks for its leadership position in the green power marketplace. Palo Alto Networks is an excellent example for other organizations in reducing greenhouse gas emissions through green power investment and use," said James Critchfield, Program Manager of EPA's Green Power Partnership.

According to the U.S. EPA, Palo Alto Networks green power use is equivalent to the electricity use of nearly 2,000 average American homes annually. Palo Alto Networks believes that the only way forward is with collaboration. We believe the only way to create a 100% renewable electricity grid is to partner with local utilities and peers, as well as duplicate this best practice everywhere we work and live.

Critical to this strategy, Palo Alto Networks will not purchase or use unbundled RECs or offsets to make any claims of progress toward our RE100 goal, SBTs or any other objective that requires impact. Engagement with local utilities aligns with this ethos. Best of all, when every large business commits to reaching RE100 goals this way, it opens renewable electricity up for everyone on the grids we are on.

Among the most important elements of our Sustainable Ecosystem is climate, clean energy and cybersecurity policy advocacy. In the past year we have supported a number of important policy pieces, including Ceres’ sign-on for SEC disclosure support, the WEF Alliance of CEO Climate Leaders Message for COP27, ITI’s disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk, among others. We believe policy support is the most important thing we can do to proliferate renewable energy, solve environmental injustice, and keep everyone safe online.

In our third year of disclosing our environmental impact to CDP, Palo Alto Networks was added to the CDP Climate A List for 2022 for the first time. This honor is awarded only to the top 2% of over 18,700 companies scored by CDP, as well as CDP’s Supply Chain Leaderboard. Palo Alto Networks is incredibly proud to be one of only 330 companies named as leaders in corporate transparency and climate action.

Our employees represent our most powerful tool in our sustainability work. This April and May, over 10% of our employees participated in Earth Month initiatives that focused on local, “Do One Thing” activities. Sustainability education was the most popular theme, and we had over 800 employees participate in our FLEXLearn Sustainability 101 module.

Our journey has just begun and we have a lot of work to do. To that point, our Climate Strategy focuses on three core pillars:

Goals for the Globe

To achieve any of these goals, we need a global team. As we look to be meaningful contributors to a zero-carbon economy, we invite all members of our coalition of suppliers, customers, peers, investors, employees and responsible members of the communities to join us. The positive impact of one organization is a good step. The impact of a large team of climate warriors can solve the challenges of climate change.

Palo Alto Networks calls on all our suppliers, customers, investors and stakeholders:

• Measure your carbon footprint.
• Set science-based targets and RE100 goals.
• Collaborate with us to make progress on each others' SBTs and RE100 goals.

We invite our employees to do their part:

• Take our FLEXLearn Sustainability 101 course.
• Invest in decarbonization and renewable energy for yourselves at home.
• Educate others how to do this in the communities where we work and live.

To read more about our broader environmental, social and governance practices, visit our Corporate Responsibility page.