Okta today announced that its science-based targets (SBTs), which are aimed at pushing the company to take responsibility for its role in climate change, have been approved by the Science Based Targets initiative (SBTi).

The software company plans to reduce its scope 1 and scope 2 greenhouse gas (GHG) emissions 67% by 2030 compared to 2020, and reduce its scope 3 emissions from business travel and employee commuting 42% by 2030 compared to 2020.

To address broader scope 3 emissions from its value chain, including emissions resulting from customer use of its products and services, Okta says it will ensure 65% of its purchased goods and services and capital goods suppliers have set approved science-based targets by 2027.

Okta's sustainability targets, which were initially set in late 2021, follow the 2015 Paris Agreement to limit global temperature rise to below 2°C, though preferably 1.5°C. These targets, according to Okta's Chief People and Places Officer Kristina Johnson, are "guidelines for organizations to understand how much and how fast they need to reduce their greenhouse gas emissions to curb the worst consequences of climate change," she explained in a blog, adding that the "window of opportunity" to reverse the impacts of climate change is growing ever slimmer.

Okta's Climate Pillars

Alison Colwell, Okta's director of environmental, social, and governance (ESG), and sustainability, explained that the company's sustainability strategy is centered around four major goals or pillars: reduce consumption, electrify, purchase renewable electricity, and engage vendors.

To that point, Colwell highlighted the company's renewable electricity program that matches power consumption from office, remote workers, and cloud services with clean energy. "Now, our SBTs will also help us reduce emissions from our office natural gas and refrigerants, business travel and employee commute transportation, as well as vendors that provide Okta with goods and services," she added.

Colwell said Okta is already making progress on some of these targets, citing the company's membership in the Sustainable Aviation Buyers Alliance, which aims to drive investment in and adoption of sustainable aviation fuel. In terms of encouraging its vendors to set environmental targets of their own, Okta is a collaborative member of the Business Council on Climate Change that creates corporate guides for measuring emissions, setting emissions reductions targets, and achieving those goals.

Colwell acknowledged Okta's status as a high-growth company and the challenge that creates for meeting sustainability targets in terms of absolute emissions. In other words, it won't be easy to continue to scale the business while actually reducing the amount of emissions for which it's responsible.

But "transparency is one of Okta’s core business values," Colwell urged, adding that the company publishes annual environmental disclosures and submits an application to the Carbon Disclosure Project (CDP), an independent organization that evaluates corporate sustainability programs and ESG initiatives.

Sustainable Equity

As the term ESG implies, social and environmental issues are inextricably linked together, Colwell said. "The consequences of climate change disproportionately impact historically excluded communities, including those of color. These same communities often contribute least to climate change, yet they are not always included in advancing climate solutions," she explained.

Okta's purchase of renewable energy credits (RECs), according to Colwell, is a major way the company addresses both environmental and social inequities. "We intentionally purchase RECs with a social benefit and support Solar Stewards, an organization that provides affordable clean energy and reduced utility bills for low-income residents," which improves equity in renewable energy markets, she explained.

Okta also touts other climate equity partnerships with GRID Alternatives, an organization that builds community-centered solutions to improve economic and environmental justice, and with CLIMA Fund, a group that supports grassroots climate efforts.

Colwell added that the official approval of Okta's environmental targets signals "a critical milestone in our journey in helping to curb the worst consequences of climate change while maximizing benefits to society and the environment."