From net zero to global impact: Salesforce's commitment to sustainability

Sustainability and the pursuit of net-zero emissions have emerged as vital imperatives in today's global landscape, and businesses have become extremely mindful of this of late.  Salesforce's says that its unwavering commitment to sustainability extends far beyond achieving net-zero emissions within its own operations. In an interview with Dataquest, Arun Rangaraju, Head - Advisory Services and Net Zero Cloud at Salesforce India, said that the company's journey towards sustainability mirrors a profound belief in the importance of addressing climate change and fostering a more sustainable future. Read on to know more.

DQ: What are the key steps businesses can take to integrate sustainability into their entire value chain?

Arun Rangaraju: Firstly, it's essential for businesses to recognize that sustainability is no longer just a passing trend. While addressing climate change and saving the planet is undoubtedly a crucial aspect, sustainability has also become a fundamental corporate value. This awareness should originate at the highest levels of the organization, starting with the CEO and the board of directors. They must acknowledge that sustainability is an integral part of our business approach.

Increasingly, sustainable companies are able to attract a diverse range of consumers. If we consider the preferences of most Gen Z consumers, those in their twenties, they actively seek out companies that prioritize sustainability in their practices. Consequently, it makes sound business sense to align with sustainability initiatives. Additionally, many banks and financial institutions offer more favorable terms to companies with strong ESG (Environmental, Social, and Governance) scores.

In summary, the initial step is recognizing that sustainability benefits both the planet and our business. This realization should serve as the catalyst for change, with a top-down approach emanating from the CEO and the board of directors. To initiate this process effectively, it's crucial to first measure your emissions accurately because only by measuring can we take meaningful action.

DQ: How can technology be leveraged to monitor and reduce carbon emissions across various industries?

Arun Rangaraju: The initial advantage that technology provides is the ability to accurately assess your emissions. Scopes 1 and 2 emissions are relatively straightforward to measure. However, the complexity arises with Scope 3 emissions. This involves tracing emissions up and down your supply chain, identifying contributions from key suppliers, examining the post-use phase of your products, and managing disposal. This intricate aspect is where technology, including solutions like ours, can be instrumental. Such solutions enable companies to calculate their comprehensive carbon footprint, encompassing Scope 3 emissions. Initially, the accuracy might not be pinpoint, but it sets you on the path to progress. As more data becomes available, the involvement of your suppliers in the process enhances accuracy.

Measurement represents just one facet. Technology also assists in establishing science-based emissions reduction targets. It enables what-if analysis and forecasting, helping you determine which levers to adjust to meet your objectives. For instance, it could involve reducing business travel in favor of virtual meetings or, for manufacturing companies, transitioning to more sustainable raw materials as opposed to conventional ones. Thus, technology aids in a sequential process: measurement, target setting, and action plan development.

DQ: Can you explain the concept of Salesforce’s Net Zero and how it supports other businesses in achieving their net-zero goals?

Arun Rangaraju: We have grown into a substantial company with a market value of around $31 to $32 billion. In September 2021, we proudly declared ourselves as achieving net-zero status for residual emissions. All our data centers now exclusively operate on 100% renewable energy. This achievement was made possible because of the strong commitment of our founder, Marc Benioff, who passionately believes in sustainability. We have been diligently working toward this goal, and the concept of the Net Zero Cloud was born from our own endeavor to become a Net Zero company.

The technology we harnessed for our journey to Net Zero has been consolidated into the Net Zero Cloud offering. It's a relatively recent addition, having been globally rolled out less than three years ago. In India, we officially launched it just six months ago, at the beginning of this financial year. The Net Zero Cloud encapsulates all the insights and tools required, ranging from setting science-based targets to comprehensive carbon accounting, including measuring Scope 3 emissions.

We have further evolved this technology to encompass not only emissions but also other vital aspects. While ESG (Environmental, Social, and Governance) often places the majority of focus on the "E," we are now equipped with dashboards that allow measurement of the "S" and "G" dimensions—social and governance. Intriguingly, it is built upon the Salesforce low-code platform, sharing the same technology foundation as our other cloud offerings. However, it's worth noting that despite this commonality, the Net Zero Cloud is distinct from CRM (Customer Relationship Management). It is a unique initiative, rooted in our deep passion for sustainability, and it has become our fifth core value as a company.

DQ: How does Salesforce's Net Zero initiative align with the broader global efforts to combat climate change and achieve sustainability?

Arun Rangaraju: The Net Zero Cloud is a product we offer to assist all our customers on their sustainability journey. At Salesforce, we take our responsibilities seriously and actively engage in various initiatives, such as those led by the World Economic Forum, to develop climate action plans. Allow me to share a few examples of our efforts that go beyond achieving our own net-zero status.

One noteworthy initiative is 1T.org, an organization dedicated to planting one trillion trees globally by 2030. Salesforce proudly stands as a founding member of 1T.org. We firmly believe that it's not only crucial to reduce carbon emissions but also imperative to sequester carbon. Trees play a pivotal role in this, as they absorb carbon effectively. Hence, we are committed to this cause.

In collaboration with the World Economic Forum, we have established a portal called Uplink, designed for eco-entrepreneurs. Essentially, it functions as a crowdfunding platform where entrepreneurs in the sustainability space can secure funding for their projects. This platform provides a space for them to showcase their initiatives and engage with potential backers.

Furthermore, Salesforce Ventures operates the Salesforce Impact Ventures Fund, directly investing in enterprises engaged in significant climate change mitigation work. These are some of the initiatives we are actively pursuing beyond addressing our own emissions. In addition to these, we actively collaborate with policymakers to provide insights and input on evolving regulations and policies in the sustainability domain. Another noteworthy effort is our participation in the blue carbon initiative, where we aim to purchase one million tons of blue carbon credits, equivalent to approximately ten million dollars. This demonstrates our commitment to contributing to sustainability initiatives beyond the confines of our organization.