Social and Environmental Responsibility - Supporting Our Communities

Social and Environmental Responsibility at Okta / Energy and Climate

Okta’s sustainability strategy is focused on increasing transparency and action on climate change to protect people and the planet while driving long-term value for Okta’s business and stakeholders. Here's a summary of our public climate commitments:

Okta has committed to validated science-based targets (SBTs) for absolute emissions reductions, which are aligned with the UN Paris Agreement goal to limit global warming to 1.5°C global. Our targets are:

• Reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions 67% by FY2030 against a FY2020 base year

• Reduce absolute scope 3 GHG emissions from business travel and employee commuting transportation 42% by FY2030 against a FY2020 base year

• Ensure that 65% of Okta’s suppliers by spend, covering purchased goods and services, and capital goods have science-based targets by FY2027

Okta is committed to supporting our global offices, remote workforce and third-party cloud service providers with 100% renewable electricity.

Okta commits to publicly reporting our annual greenhouse gas inventory inclusive of all relevant categories of scope 1, scope 2 and scope 3.

Climate Strategy

Okta’s science-based targets will inform the further evolution of our climate action plans, and will help us support our customers in achieving their own climate goals. Our climate strategy consists of four pillars, which aim to take direct action towards emissions reductions:

• Reduce consumption
• Electrify
• Purchase renewable electricity
• Engage our vendors

As we pursue each pillar of our climate strategy, we strive to operate through a lens of equity, collaboration, and business integration.

• Right-size our global workplace footprint
• Select office sites that are easily accessible by public transit to reduce the environmental impact of employee commuting
• Build out all new direct lease offices to both the LEED Silver and WELL Silver standards as a minimum
• Share resources with employees to reduce energy consumption and GHG emissions, such as the Dynamic Work Sustainability Guide
• Develop resources for employees to travel more sustainably, including by facilitating virtual meetings instead of in-person meetings, bundling trips to reduce the frequency of travel, and traveling bycar or train instead of by plane when possible

Ask existing property managers of our leased offices to electrify equipment at end of life, report on refrigerant usage, and opt their building into 100% renewable electricity with their utility
Add sustainability criteria, including all-electric buildings where available, to Okta’s new site selection criteria
Provide employees with information about opting their residences into 100% renewable utility program

Purchase renewable electricity certificates (RECs) annually to match 100% of our electricity consumption from our offices, our remote workforce, and cloud services with renewable electricity. Okta purchases RECs that have a social benefit, such as supporting public schools and community-based solar for low and moderate income communities.
Okta is a member of the Sustainable Aviation Buyers Alliance (SABA), whose mission is to accelerate the path to carbon-neutral air transport by driving investment in SAF, catalyzing new and additional SAF production and technological innovation, and supporting member engagement in policy making.

Collaborate with other members of the Business Council on Climate Change (BC3), with whom we’ve developed two guides encouraging vendor action on climate to (1) conduct a GHG emissions inventory and to set targets, and (2) achieve emissions reductions targets
Engage directly with our vendors to offer resources/support in partnership with Rye Strategy and Watershed. Provide webinar programming and 1:1 meetings with vendors to ensure clear communication of Okta’s vendor engagement priorities.

Customer communication

Okta also engages with customers: for example, by sharing thought leadership on ESG and climate at Okta events like our annual customer conference, Oktane.

We also partner with customers on resources for vendors via Business Council on Climate Change (BC3), exploring how we can support one another to achieve climate goals, and we provide Greenhouse Gas (GHG) emissions data.

GHG emissions inventory results

Okta’s greenhouse gas (GHG) inventory is foundational to our environmental strategy. Having this data helps us increase our understanding of Okta’s current emissions, track our progress year-over-year, and identify opportunities to reduce our carbon footprint. Here are the results of our GHG emissions inventory for our FY23 (February 1, 2022 - January 31, 2023).

Governance, Risk Management, and Scenario Analysis 

Okta’s ESG and climate efforts, led by the company’s ESG and Sustainability team in partnership with the ESG Committee, are overseen by our executive leadership and reviewed by the Nominating and Corporate Governance Committee of our Board of Directors, as per the Nominating and Corporate Governance Committee Charter. The Nominating and Corporate Governance Committee reviews Okta’s ESG programs and public disclosures, annually and more frequently as needed.

Since FY22, Okta’s ESG and Sustainability team have worked with the Okta risk management team to incorporate climate into the annual risk assessment process which is a part of our overall Enterprise Risk Management process. In terms of climate scenario analysis, Okta also considers potential “physical risks” and impacts as part of our continuity planning. Okta forecasts long-term emissions growth and models the potential impact of “transition risks” like a carbon fee or decarbonization requirements.

Primary climate disclosure through the CDP

The CDP (formerly Carbon Disclosure Project) is a global nonprofit that provides a disclosure system for companies, cities, states, and regions to measure and manage their environmental impact. It collects data on an organization's risks and opportunities, business strategy, emissions data, and more. Over 13,000 companies, including Okta, participate in the CDP’s climate questionnaire every year. We believe the CDP will help improve our climate change disclosures by enabling us to track progress, and continually improve on our strategies and results.

To follow our year-over-year progress with the CDP, you can review our previous submissions here:

LEED & WELL certification

Okta is committed to achieving both WELL Silver and LEED Silver certification for all new direct lease offices. Our facilities in Sydney and Paris have achieved both certifications. Our New York City office has achieved a LEED Silver rating. Learn more about Sustainability and Dynamic Work at Okta’s Sydney office here.

• The WELL rating, from the WELL Building Institute (IWBI), is based on how a building impacts the health of its occupants, with features like abundant natural light, access to healthy food and water and distraction-free environments.

• The LEED standard, from the U.S. Green Building Council, signifies that a building’s features reduce energy and water consumption as well as waste.

Timeline

May 2020: Okta announced the ESG & Sustainability program.
August 2020: Okta completed our first annual GHG emissions inventory, conducted by a third-party consultant and in accordance with industry best practices. Measuring and setting an emissions baseline was an instrumental first step in helping us define sustainability goals and strategies going forward, which include increasing our renewable electricity usage while reducing our overall carbon footprint.
April 2021: Okta committed to 100% renewable electricity for our global offices.
July 2021: Okta submitted our first CDP climate change questionnaire.
September 2021: We achieved 100% renewable electricity for not only our global offices, but also our remote workforce. We also provided a resource, Dynamic Work Sustainability Guide, to our employees to support them to reduce their environmental impact, whether working remotely or in the office.
June 2022: We expanded our renewable electricity program to include our third party cloud services electricity consumption.
July 2022: Our science-based targets (SBT) for absolute emissions reductions were validated.
January 2023: Okta launched the Sustainable Travel Guidebook to help educate our employees about sustainable travel options.
February 2023: Okta joined the Sustainable Aviation Buyers Alliance (SABA). SABA is an industry collaboration that is working to drive investment in, and adoption of, sustainable aviation fuel.
May 2023: Okta asked our top vendors to set climate targets, and provided these top vendors with resources and tools to support their efforts to reduce their carbon footprints.
October 2023: Okta submitted our first EcoVadis Sustainability Questionnaire.