You have set ambitious sustainability targets, such as achieving net zero emissions by 2040 and using 100% renewable electricity. How do you plan to achieve these objectives?
Our journey toward these goals began with a sense of responsibility for how Atlassian’s operations impact the world. We recognized early on that it wasn't enough to have values; we needed to translate them into actionable goals. Back in 2016, we decided we couldn't be reactive to sustainability challenges and needed to clearly define what we stand for. In 2019, we set our sights on a science-based net zero target, which is aligned with global climate science to support a 1.5-degree future.
The Science-Based Targets Initiative (SBTI) guided us in setting both long-term and near-term goals. While our ultimate target is net zero by 2040, we are holding ourselves accountable with interim milestones. Our first major checkpoint is the fiscal year 2025, where we are committed to demonstrating significant emissions reductions compared to our FY19 baseline. As we’re now in the final year of this initial milestone, we’re actively measuring and refining our strategies to ensure we're on track.
What are the main challenges you face in reducing emissions, particularly considering the nature of your company?
The most challenging aspect lies in addressing scope 3 emissions, which account for the majority of our environmental impact. These emissions encompass our supply chain and business travel, areas where we have less direct control. Tackling scope 1 and 2 emissions was relatively straightforward, as they primarily involve energy use from our buildings. We managed to achieve 100% renewable energy for scope 1 and 2 by purchasing energy attribute certificates, but scope 3 presents more complex hurdles.
For scope 3, we focus on engaging our suppliers, who account for a significant portion of our emissions. We aim to have 69% of our suppliers set their own science-based targets, but this requires building relationships and influencing them to align with our goals.
Business travel is another challenging area, where we are working toward a 25% reduction in emissions. Both of these areas demand ongoing collaboration and strategic engagement to drive meaningful change.
How are you actively engaging with your supply chain to reduce emissions?
We began our supply chain engagement by setting clear expectations with our top suppliers. We started by communicating our sustainability targets through our supplier portal, emphasizing that we expect them to set their own emission reduction goals. Recognizing that some suppliers needed more support, we partnered with our procurement team to provide personalized guidance. For our top suppliers, we offer consulting services through RISE Strategy, covering the cost to remove any financial barriers they might face in setting and achieving their climate goals.
Additionally, we have initiated direct engagement with our top three suppliers, involving our leadership team in discussions to underscore the importance of these sustainability goals. This engagement has led to the signing of our first climate addendums with key suppliers, ensuring that they commit to sustainability goals as part of their supplier agreements.
How does Atlassian use its platform to influence environmental policy and advocate for sustainability?
We recognize that our influence extends beyond our internal operations, and we actively advocate for climate policy at the government level. For example, we've used our voice to support legislative efforts such as California's SB 253 and SB 261, which push for increased transparency around emissions reporting and climate-related financial risks. By advocating for policies that align with our sustainability goals, we’re pushing governments to create the right conditions that make it easier for companies to achieve their targets.
Moreover, we've joined organizations like Ceres and We Mean Business Coalition, which amplify the voices of companies advocating for climate action, engaging with G20 leaders to promote environmental responsibility. Additionally, we share our sustainability journey and learnings with our broader ecosystem, including customers and partners, through initiatives like our "Don't Stop the Planet" guide, which provides practical insights on climate action.
How has your "Don't Stop the Planet" guide been received by your customers, and how does it support their sustainability efforts?
The response has been overwhelmingly positive. After launching the guide, we received numerous inquiries from enterprise customers who were inspired by the content and eager to learn more. Many requested Q&A sessions with our team, allowing us to provide deeper insights into our sustainability journey. This collaboration has evolved into a broader community effort, where companies share their experiences and best practices. We’ve seen firsthand how this knowledge-sharing helps accelerate progress across industries.
Our approach has been to position ourselves not as experts with all the answers but as a company willing to share both successes and challenges. This honesty resonates with others and encourages a collaborative environment where we all learn and progress together.
Why should customers and partners listen to Atlassian's voice on sustainability issues?
We believe that our approach, which combines humility with transparency, sets us apart. Instead of presenting ourselves as having all the answers, we share our experiences, including the setbacks and challenges we face. This authenticity builds credibility and allows others to relate to our journey, encouraging them to adopt similar sustainability practices. By sharing what we've learned, we hope to help others avoid the same pitfalls and accelerate their progress toward their sustainability goals.
How do you ensure team-wide participation in sustainability goals, given the size of your organization?
One of the most effective examples is our approach to business travel, a significant contributor to our scope 3 emissions. We recognized the need to engage our finance team from the start, as their buy-in was crucial for making meaningful changes. Together, we analyzed our travel data, identified areas where policies weren't aligned with our emission reduction goals, and adjusted our approach to prioritize direct flights, even if it meant higher costs.
We also collaborated with business leaders who had the most travel requirements, ensuring that they understood the trade-offs between emissions reductions and their business objectives. This strategic partnership allowed us to balance sustainability with operational needs, fostering a sense of ownership and shared responsibility across the organization.
What is the biggest internal challenge you face in driving sustainability efforts?
The biggest challenge is that the sustainability team alone can't drive change; we rely heavily on building strategic partnerships across the organization. For example, our procurement team took the initiative to set their own supplier engagement goals, and our real estate team established ambitious climate targets for their projects. These successes are a result of cultivating strong relationships and empowering other teams to take ownership of sustainability goals.
This collaborative approach enables us to achieve scale and ensures that sustainability becomes embedded in every aspect of our operations, even with a relatively small sustainability team.
How do you educate and engage your customers and the wider public about your sustainability efforts, given that Atlassian might not be initially known for sustainability?
We’ve seen a significant increase in inbound requests from customers wanting to know more about our climate goals and sustainability practices. This demand is partly driven by emerging regulations, like the CSRB in Europe and bills in California, which are prompting companies to seek more transparency in their supply chains. We've responded by hosting investor roundtables and Q&A sessions, offering detailed insights into our sustainability initiatives.
By being open and transparent about our journey, we aim to educate not just our customers but also the broader community, helping them understand our commitment to long-term sustainability and the steps we’re taking to achieve it.
