Okta Emissions Inventory Results – FY21

Social and Environmental Responsibility at Okta  /  Okta Emissions Inventory Results – FY21

Okta’s greenhouse gas (GHG) inventory is foundational to our environmental strategy. The data enable us to increase our understanding of Okta’s current emissions, track our progress year over year, and identify opportunities to reduce our carbon footprint. Below are the results of our GHG emissions study for our fiscal years FY21 (ended January 31, 2021) and FY20 (ended January 31, 2020). 

Scope & Methodology

We utilized a third-party consultant to conduct the analysis in accordance with applicable standards from the GHG Protocol. More information regarding the GHG Protocol and definitions for scope 1, 2 and 3 emissions can be found here. An independent third party also assured our FY21 inventory in accordance with the WRI/WBCSD Greenhouse Gas Protocol Corporate Accounting and Reporting Standard for Scope 1 & 2 emissions and the WRI/WBCSD Greenhouse Gas Protocol Corporate Value Chain Accounting and Reporting Standard for Scope 3 emissions.

Our FY21 inventory is a comprehensive GHG inventory, including our scope 1, scope 2, and all of our relevant scope 3 emissions. For employee commute, we have also captured work from home (WFH) energy consumption to align with our Dynamic Work strategy. Although WFH energy consumption is an optional category for inclusion under the Protocol, with the rise of Dynamic Work, we believe it is an essential piece of our footprint to track. To calculate our employee WFH energy consumption, we joined other leading companies in contributing to the development of a new industry methodology, which we then followed for our FY21 inventory. 

We also updated our FY20 original inventory to be a complete GHG inventory, now including all relevant scope 3 emissions to provide a comprehensive baseline and to enable us to better track our year-over-year progress. Our expanded FY20 inventory results are represented in the tables below. 

Okta Emissions Inventory Results – FY21

Summary

Okta saw a 9% emissions reduction in FY21 compared to FY20. This was due to reduced office emissions (scope 2) driven by a combination of reduced site operations due to the pandemic and our 100% renewable electricity purchases, and reduced travel emissions (scope 3) during the pandemic. The majority of our FY21 emissions are from scope 3 supply chain emissions including purchased goods and services, capital projects, employee WFH, cloud services, and business travel.

Data

Table 1: Total Emissions 

 

FY20 

FY21

 

Emissions category

tCO2e

Percent of calculated total

tCO2e

Percent of calculated total

Change

Scope 1

163

<1%

218

<1%

34%

Scope 2, Location-based1

1,000

 

856

 

-14%

Scope 2, Market-based1

676

2%

142

<1%

-79%

Scope 3

32,272

97%

29,849

99%

-7%

Total2

33,111

100%

30,209

100%

-9%

 

Scope 1: Direct GHG Emissions

The Protocol provides that Scope 1 emissions occur from sources owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, etc. For Okta, this includes our natural gas consumption which is determined by the actual natural gas data from our global offices and real estate. Our scope 1 emissions increased in FY21 due to an expansion of our total office floor space by 18%.

Table 2: Scope 1

Emissions category

FY20 

tCO2e

FY21

tCO2e

Change

Scope 1, Stationary combustion of natural gas

163

218

34%

 

 

Scope 2: Indirect GHG Emissions from purchased electricity, heating, and cooling in buildings

Scope 2 accounts for GHG emissions from the generation of purchased electricity, heating, and cooling consumed by the company. The GHG Protocol requires that companies use two methods for scope 2 reporting (1) location-based which reflects the average emissions intensity of grids on which energy consumption occurs (using grid-average emission factors for electricity) and (2) market-based which reflects emissions from electricity that companies have purposefully chosen. Okta’s location-based and market-based consumption decreased in FY21 by 14% and 79% respectively. Our decrease in location-based emissions is a result of reduced energy consumption due to COVID-19, while our decrease in market-based emissions is a result of our FY21 100% renewable electricity achievement. As a part of this commitment, we matched 100% of our electricity consumption for our global offices with energy attribute certificates (EACs). 

Table 3: Scope 2

Emissions category

FY20 

tCO2e

FY21

tCO2e

Change

Scope 2, Electricity Indirect GHG Emissions (Market-based)

486

0

-100%

Estimated Refrigerant Leakage for Cooling3

119

142

19%

Estimated Natural Gas for Heating

70

0

-100%

Total (Market-Based)

676

142

-79%

 

 

Looking at our scope 1 and scope 2 emissions together provides insight into the emissions intensity at each of our global offices. Our sites located in colder climates, such as Toronto and Bellevue, rely on natural gas for heating and have a higher emissions intensity than those in more moderate climates. Okta does not own any real estate, but across all our leased sites, in FY21 we used 1,202 MWh of natural gas and 2,891 MWh of renewable energy.  See our Carbon Disclosure Project (CDP) report here for a closer look at our office energy use.

Graphic 1: FY21 Emissions Intensity by Site

Emissions intensity by site.

 

 

Scope 3: Other Indirect GHG Emissions 

Under the Protocol Scope 3 is a reporting category that captures all other indirect emissions relevant to a company’s entire value chain. Scope 3 emissions are a consequence of Okta’s activities that occur from sources not owned or controlled by Okta. For Okta, scope 3 includes emissions from our supply chain from purchased goods and services, capital goods, business travel, employee commuting (including WFH electricity consumption), leased assets, and our third-party cloud services. We use spend data as a proxy to measure our supply chain emissions, except for our cloud services, for which we received actual emissions data. For a closer look at our scope 3 emissions, see our CDP report here.

We rely on third-party cloud infrastructure to run our operations and do not own or operate any colocation data centers. Our cloud storage provider currently sources more than 50% renewable energy and has publicly committed to increasing this to 100% by 2025. As we set our energy and emissions goals and strategies going forward, we will continue to consider our strategic use of data centers.

FY20 and FY21 Scope 3 Emissions Comparison.

1 The GHG Protocol requires that companies use two methods for scope 2 reporting. The location-based method reflects the average emissions intensity of grids on which energy consumption occurs (mostly grid-average emission factor data). The market-based method reflects emissions from the electricity that companies have purposefully chosen.

2 Total emissions include scope 1, scope 2 – market-based, and scope 3.

3 Refrigerant leakage and natural gas typically fall in scope 1; however, GHG Protocol allows for these emissions to fall within scope 2 when they are based on estimations

4 Natural gas in Toronto is estimated based on square footage and typical local office natural gas use.

5  Only 7 % of our purchased goods and services emissions are based on supplier-specific data for FY21. The rest are estimated.