Executive Summary
Okta drives its Workplace Sustainability Program by embedding climate targets early in the real estate cycle using a site selection scorecard, developing Green Lease language to engage landlords, and leveraging existing sustainability initiatives to scale impact across its global portfolio. In this 3-part blog series, we will cover our strategy for decarbonizing our real estate footprint using green procurement and Green Lease standards, prioritizing healthy workspace design via LEED and WELL Certifications, and establishing global consistency in operational waste management.
In this blog, we will discuss:
- Workplace Sustainability Program as the roadmap for healthy, low-impact global office spaces.
- Site Selection Scorecard to integrate sustainability criteria early in the real estate process.
- Green Lease Language as a contractual commitment for landlords to share data and reduce emissions.
- Landlord Green Lease Case Study demonstrating collaboration and successful climate action.
Okta’s dedicated Workplace Sustainability program is centered around creating healthy, low-climate impact physical spaces where Okta employees can do their best work.
Workplace Sustainability Program Overview
Okta's climate strategy focuses on four key areas: reducing energy use, electrification, purchasing renewable energy, and engaging vendors. We maintain 100% renewable electricity across offices, remote workforce, and third party cloud services, validated by the Science Based-Targets Initiative, and publicly commit to ensuring all new direct-leased offices are at least LEED and WELL silver certified. Given that our offices are leased spaces in central business districts, we must collaborate with landlords to achieve our sustainability goals, concentrating on three key areas:
- Reporting and Climate Alignment: Collecting utility data to understand and report our footprint in annual climate disclosures (GHG emissions inventory, CDP) and aligning with the Science Based Targets initiative (SBTi).
- Energy Efficiency: Making space adjustments to meet LEED certification, which helps reduce energy consumption.
- Healthy Workplaces: Pursuing WELL certification to ensure our workplaces are healthy environments for employees.
Site Selection Scorecard
When considering a new geographic location or office relocation to support Okta’s continued growth, we use a site selection scorecard to help drive alignment with Okta’s climate goals and our customers’ expectations. This tool measures lease terms, building operations, infrastructure, location, safety & security, employee experience–and of course, sustainability to track progress towards Okta’s climate goals and customer expectations. Some of the things we look for specifically are:
- Green Building Certifications: Reduce risk and operating costs while strengthening credibility through verified building performance and vendors.
- Onsite Renewable Energy (or procurement options): Lower emissions and energy cost volatility while supporting Okta’s climate targets.
- Green Roofs, End of Trip Facilities, and Bike Storage: Enhance employee experience and support low-carbon commuting.
- Sub-Metered Utilities: Enable accurate tracking, cost allocation, and identification of efficiency opportunities.
The site selection process begins with an in-depth onsite scorecard that produces a non-negotiable shortlist aligned with our sustainability criteria. Any buildings not meeting these standards are removed ahead of leadership review, even if they satisfy other requirements. Once leadership approves a site, we move into lease negotiations where Okta’s Green Lease Language is incorporated into the lease agreement.
Embedding Green Lease Language
By actively integrating Okta’s Green Lease Language into negotiations, we use a contractual exhibit to elevate compliance from a "nice-to-have" to a "must-have." This collective pressure drives long-term impact in the built environment, aligning landlords with Okta’s Science-Based Targets (SBTs) to limit global warming to 1.5°C by focusing on four key areas:
- Reporting: Conducting a complete annual GHG inventory with reliable, timely utility data for our Environmental Reporting needs (EcoVadis, CDP, CSRD, etc.).
- Strategy: Creating strategic decisions based on utility data to lower energy consumption and decrease utility costs.
- Accountability: Holding Landlords accountable for providing building data and converting existing equipment to fully electric systems.
- Customer Expectations: Meeting Okta’s customer expectations by including contract language around climate targets.
Recognizing that landlords have their own priorities, we have ranked our Green Lease Language asks into three priority areas based on Okta’s sustainability targets and scale of impact:
Phase 1 (High Priority):
- Utility Data Sharing and SBT Alignment
- Maintaining Existing Sustainability Certification (LEED, WELL, BREEAM, etc)
- 100% Renewable Electricity Opt In with their utility
Phase 2 (Medium Priority):
- Adjust Utility Settings for Cost Saving Measures
- Utility Sub-meter Installation
- Fresh Air Ventilation to ASHRAE 62.2 standards
- HVAC Electrification + low GHG Refrigerants
Phase 3 (Low Priority):
- Low Flow Plumbing
- Green Cleaning Products
- Recycling and Compost Stream + Waste Data Collection
Case Example: Green Lease Negotiation
A recent Green Lease negotiation with one of our partnering landlords serves as a strong example of collaboration. The landlord was open to operational adjustments while balancing a broader set of existing sustainability priorities and commitments. Key takeaways include:
- Utility & Environmental Data Sharing: While the landlord did not formalize broad data-sharing obligations in the lease, they agreed to provide energy, water, waste, and other environmental data upon request through the Green Lease negotiation. They have already demonstrated this by sharing refrigerant data for our GHG inventory, and our space is sub-metered for electricity.
- Renewable Opt In: Crucially, the landlord agreed to opt into renewable energy with their local utility.
- SBTi Alignment: The landlord has ambitious sustainability commitments and is currently prioritizing the advancement of existing initiatives over expanding to SBTi targets.
- Utility Settings: The landlord agreed to implement cost saving measures based on Okta’s direction.
- Electrification: The building operates on 100% electric systems.
Okta aims to negotiate in good faith, striving for outcomes that support the landlord, the business, and environmental goals. Where Green Lease provisions are not accepted, we continue to iterate on our contractual approach for future negotiation cycles focusing on collaboration, education, and long-term partnership to advance more sustainable building practices over time.
Conclusion/Takeaways
Okta's sustainability program is dedicated to securing long-term value through responsible growth across three core pillars: company, customer, and ecosystem. Okta’s Workplace Sustainability Program supports Okta’s climate strategy by translating our commitment to sustainable and responsible growth into tangible action across our global office portfolio. By putting clear guiding principles in place, your organization can meaningfully scale its sustainability impact across its real estate portfolio by aligning with these key trends:
- Program Creation: Create a dedicated workplace sustainability program to drive impact and uniformity across your portfolio, from utility data to waste management and certification.
- Early Integration: Embed sustainability elements in a site selection scorecard to drive sustainable decisions early in the real estate cycle.
- Leverage Initiatives: Partner with stakeholders and leverage existing initiatives to elevate your organization's sustainability targets.
- Landlord Engagement: Develop Green Lease language to build essential engagement with landlords.
We are deeply invested in our employees and the planet, aiming to build spaces that actively demonstrate our values. We hope you’ll join us in this effort!
