Environmental, Social, and Governance Report 2022

Our Commitment to Sustainability

In 2022, we strengthened our commitment to sustainability and to minimizing our impact on climate change. It’s always been a part of what we do, even before we began measuring it – and our leadership and employees take the topic seriously. During the past year, we evolved our systems and controls for collecting and reporting emissions, and obtained third party verification for these measurements.

Technology for the Greater Good

Our technology helps us and our customers reduce environmental impact. We use our own hyperconverged infrastructure (HCI), which eliminates the need for separate systems for compute, storage, and networking which can reduce the physical footprint, power and cooling, and has the potential to consume less energy than other hardware-dependent, on-premises solutions. This can reduce human capital needs and improve energy savings.

Using Nutanix Cloud Infrastructure (NCI) and Nutanix Cloud Manager (NCM) helps eliminate waste from sprawl and overprovisioning of IT resources across public, managed, and on-prem clouds. NCI enables incremental scaling while NCM optimizes resource planning and deployment of only what’s needed in the near-term. Nutanix software can run anywhere, enabling IT teams to choose where workloads run to optimize cost, control or carbon emissions. This includes the ability to easily burst workloads to public clouds without refactoring and hibernate them when they aren’t needed.

The IT department has greatly contributed to reducing power consumption with new, more efficient, virtualizable machines and with the centralization of services in the public cloud in order to use only the resources that are needed, which translates into efficiency and reduced carbon emissions.

Francisco Javier Mollá
I&O Global Manager of Service Delivery for EMEA at Holcim Group

Sustainable Infrastructure

Data Centers

Nutanix data centers are essential to our business and account for about 78% of Nutanix's total power consumption. Using our own software to achieve 100% virtualization helps make our data centers highly efficient. Our hyperconverged infrastructure software enabled us to build a hyperdense data center that consolidates IT resources, giving us 68% more space and requiring 46% less power.

Since 2018, we’ve selected data center providers that prioritize energy and resource efficiency. We work with providers that offer highly optimized data centers and renewable energy options, and reduce water consumption. In 2022, we continued to migrate IT workloads to these more efficient data centers that use up to 85% less water and 80% less power. This helps limit the overall environmental impact of our IT operations.

In 2022, we were able to migrate more of our workloads to these sustainable partners – so that more than 73% of our data center IT load was provided through renewable energy.

Harmail Singh Chatha
Senior Director, Hybrid Cloud Operations and ESG - at Nutanix

It is my personal view that as global corporate citizens, we all have the responsibility and obligation to shape the future of IT sustainability.

Rajiv Ramaswami
President and CEO of Nutanix

Office Buildings and Facilities

In 2022, our efficiency efforts extended into employee workplaces. The hybrid work model we established after the pandemic allowed us to make significant changes. We began minimizing the physical footprint at our five-building campus at Nutanix headquarters in San Jose. Reducing office space to align with our hybrid work model can help us reduce costs and energy usage. In the process, we repurposed equipment and furniture in a more consolidated office space. This project will continue through 2024, shrinking our San Jose footprint from five buildings and 13 floors (almost 440,000 square feet) to a single building with six floors (just under 216,000 square feet).

Currently, we have two facilities with LEED Gold certification and six facilities with LEED Silver certification. Going forward, we continue to strive for a minimum of LEED Silver in future buildouts wherever possible.

In addition to making our buildings efficient, we continued to promote and support sustainable practices across the organization, including:

Recycling at all locations
Centralized trash receptacles within office space
Locally sourced food where available
Employee commute programs, including rail options
Zero waste to landfill programs
Sustainable, non-PFAS food packaging and the reduction of single-use plastics in break rooms
Charging stations for electric vehicles available at some office locations

Our legacy environment filled four racks, and we’re now down to less than half a rack of equipment with Nutanix. By moving to Nutanix, we were able to cut our co-lo costs by 75% for power, cooling, and space.

Dane Sandersen
Global Security and Infrastructure Director - at Trek

Greenhouse Gas Emissions

We began reporting our greenhouse gas emissions in our inaugural ESG report in 2020. That report focused mainly on Scope 1 and 2 emissions. Each year, we improve our understanding of the reporting process and strive for accuracy and transparency. We aim to minimize carbon emissions that impact our planet and communities so we contribute to a viable, sustainable future.

In 2022, we obtained third-party limited assurance from LRQA to verify the emissions data we reported. We also expanded our Scope 3 categories to include Fuel and Energy Related Emissions, which are not included in Scopes 1 or 2.

We monitored our baseline metrics closely as business returned to post-pandemic conditions and these metrics will help us more accurately and consistently manage our emissions going forward. We continue to learn how operational components that we track are connected to our overall environmental impact.

2022 Metric Tons of Carbon Dioxide Equivalent (MTCO2e)

Stationary Combustion

0.7%

Upstream Leased Assets

0.7%

Fuel and Energy-Related Emissions Not Included in Scopes 1 or 2

1.1%

Business Travel

6.7%

Market-Based Electricity

9.2%

Capital Goods

14.8%

Purchased Goods & Services

66.7%

MTCO2e

63,120*

*Total reported emissions (using Market-Based Electricity)

Notes

Methodology

Additional Environmental Metrics

45,363 MWh

Total 2022 Scope 1 & 2 Energy Usage

3.94E-06*

MTCO2e Per Million in Revenue (USD), Scope 1 & 2 Carbon Intensity Metric
* This reflects the gross global combined Scope 1 and 2 emissions (Market-Based) for the reporting year in MTCO2e per unit currency total revenue in Millions of US Dollars in Revenue

57%**

Scope 2 Energy sourced from renewable sources
* *Sourced from Renewable Energy Certificates

Our previous three-tier system consisted of about ten racks of compute equipment, and we have been able to reduce that to a quarter rack. Our power expenses have come down about 70%, which is working out to tens of thousands of dollars - and 24,000 kg of CO2 emissions - saved per year.

Simon Sowerby
Technical Services Coordinator - at City of Unley

Environment