Environment

Our Commitment to Sustainability

As a global leader in cloud platform software, we realize technology has the potential to make significant impacts for sustainability efforts while accelerating transformation. It’s ingrained in what we do from our platform to our office spaces, to our work model. We remain committed to making a positive impact on our planet and in communities so that we can help create a viable, sustainable future.

Technology for the Greater Good

Our technology helps us and our customers better manage and reduce environmental impact. The core hyperconverged infrastructure (HCI) technology in our Nutanix Cloud Infrastructure (NCI) product offers an efficient, software-defined architecture that can lead to a significant reduction in IT hardware requirements, energy use, and waste, supporting a more sustainable approach to IT infrastructure.

On average, customers that shared their experiences using the Nutanix Cloud Infrastructure solution reported over a 70% decrease in physical footprint and a 50% reduction in energy consumption versus their legacy systems.  A reduction in energy consumption can lead to a decrease in carbon emissions, helping to minimize the environmental burden of an organization's IT systems.*

What’s more, our Nutanix Cloud Platform (NCP) technology stack as a whole provides visibility, simplifies management, and facilitates freedom of platform choice for customers’ applications and data. Products like NCI, the Nutanix Cloud Clusters (NC2) platform, and the Nutanix Cloud Manager (NCM) console can help eliminate sprawl and overprovisioning of IT resources across public, managed, and on-prem clouds and have the ability to run applications and data anywhere. This means IT teams can run workloads based on focused priorities including cost, control, and carbon reduction goals.

Nutanix also works with its hardware partners to better measure and reduce the environmental impact of the hardware on which our software runs. Our platforms comply with the EU Directive on the Restriction of Hazardous Substances and EU registration, evaluation, authorisation and restriction of chemicals (REACH) regulation. Nutanix has established a product recycling process supporting all EU customer locations as part of Nutanix’s EU Waste Electrical and Electronic Equipment Directive (WEEE) obligations. For the North America recycling program, Nutanix has partnered with our NX platform manufacturer and a recycler to provide recycling services. More product recycling information can be found here. 

In 2023, we launched a tool to help practitioners understand how different factors can influence their environmental footprint by estimating annual power and emissions for various Nutanix solutions using Nutanix Validated Designs.

* These space or energy savings claims are average results based on case studies of over 50 representative Nutanix customers as of the date of first publication of this report. Such case studies are publicly available on the Nutanix website. Because potential customer outcomes depend on a variety of factors including their use case, individual requirements, and operating environments, these accounts should not be construed to be a promise or obligation to deliver specific outcomes. We invite you to contact Nutanix here to discuss how we may be able to provide an optimal solution for your specific circumstances.

Nowadays, it’s more than just saving money, it’s also about protecting the planet,” says Panganiban. “With Nutanix, we can do both.”

Clarence Panganiban Senior System Administrator@<a href="https://www.nutanix.com/company/customers/ussc">Universal Storefront Services Corporation (USSC)</a>

Sustainable IT Strategy

Nutanix can help our customers more effectively:

Consolidate Footprint

Reduce physical footprint, silos, and over-provisioning, which helps save on power and cooling costs and lower carbon emissions. Utilize public cloud for burst capacity and hibernate clusters there when they are not in use.

Optimize Workload Placement

Minimize digital carbon footprint and run workloads where needed to maximize emissions or power savings across edge, on-prem, and managed, hosted and public clouds.

Leverage Automation, Visibility, & Insights

Automated intelligence helps optimize resources, enhance visibility and control, and empower smarter infrastructure decisions to achieve 53% more efficient IT management.*

* Business Value of Nutanix Cloud Platform, infographic

By migrating all of our legacy servers and applications to the Nutanix Cloud Platform we were able to reduce the overall rack footprint by 75% and realize tangible benefits in terms of operational costs and environmental impact.

Jon Cosson Head of IT and CISO@<a href="https://www.nutanix.com/company/customers/jm-finn">JM Finn, Tokyo</a>

Datacenters

Nutanix’s internal datacenters are essential to our business and account for about 79% of Nutanix's total energy consumption. Using our own cloud platform to virtualize workloads helps make our datacenters highly efficient. Our software-enabled design helped us  build a hyperdense datacenter that resulted in 68% greater datacenter density, leading to less cooling and energy consumption.

Since 2018, we’ve selected datacenter providers that prioritize energy and resource efficiency and optimized power usage effectiveness. We work with providers that offer highly optimized datacenters and renewable energy options, and reduce water consumption. In 2023, we continued to migrate more IT workloads to a highly efficient datacenter that uses less water and energy  compared to traditional datacenters. This helps limit the overall environmental impact of our IT operations.

Nutanix embraces a hybrid multicloud model because it's the most adaptable and sustainable solution for our complex business needs. This approach has enabled us to achieve 64% renewable energy usage in our datacenters, demonstrating that sustainability and business success can go hand-in-hand.

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

Office Buildings and Facilities

Our efficiency efforts extend into our Nutanix employee workplaces. The hybrid work model we established after the pandemic reduced the amount of office space we require. In 2022, we began consolidating the physical footprint at our five-building campus at Nutanix headquarters in San Jose. As of spring of 2024, we have reduced our footprint at this location from 440,000 square feet to just under 216,000 square feet, resulting in a 51% footprint reduction in our largest U.S. location. In 2024, we will reduce the footprint at our Nutanix Tokyo office by 20% due to improved space utilization.

Reducing office space to align with our hybrid work model helps us reduce costs and energy usage. Our employees appreciate it, as evidenced by an employee survey  showing that at least 90% of people at Nutanix felt a hybrid workplace met their needs.  Additionally, we repurposed equipment and furniture within the newly consolidated office space and donated surplus items to organizations such as Greener Source, RAFT (Resource Area for Teaching), a local Boys & Girls Club, a local high school, as well as corporate e-waste partners. 

Currently, we have one facility with LEED (Leadership in Energy and Environmental Design) Gold certification and five facilities with LEED Silver certification. Going forward, we continue to strive for a minimum of LEED Silver in future office build-outs.

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
  • Sustainable, non-PFAS food packaging and reduction of single-use plastics in break rooms
  • Charging stations for electric vehicles available at some office locations
  • Using energy-efficient lighting, HVAC solutions, and controls

Greenhouse Gas Emissions

We began reporting our greenhouse gas emissions in our inaugural ESG report in 2020, where we disclosed Scope 1 & 2 emissions. Since then, we have iteratively expanded our reporting to include seven Scope 3 categories. We strive for continuous improvement in accuracy and transparency. We aim to minimize carbon emissions that impact our planet and communities to contribute to a viable, sustainable future.

We continue to learn how operational components that we track are connected to our overall environmental impact. We’ve engaged with a third-party climate consulting firm to more closely study ways we can minimize and reduce our emissions. 

2023 was the second year in a row that we obtained third-party limited assurance from LRQA to verify the Scope 1, 2, and 3 emissions data we reported, as well as our total energy consumption and percentage of renewable energy.

2023 Metric Tons of Carbon Dioxide Equivalent (MTCO2e)

Upstream Transportation and Distribution
0.14%
Stationary Combustion
0.66%
Upstream Leased Assets
0.88%
Fuel and Energy-Related Emissions Not Included in Scopes 1 or 2
1.42%
Market-Based Electricity
12.52%
Business Travel
16.56%
Capital Goods
17.39%
Purchased Goods & Services
50.42%

MTCO2e

60,416*

*Total 2023 reported emissions (using Market-Based Electricity)

Scope Category 2021 GHG Emissions
(MTCO2e)		 2022 GHG Emissions
(MTCO2e)		 2023 GHG Emissions
(MTCO2e)
1 Stationary 330 431 398
2 Location-Based Electricity 14,799 14,798 16,871
Market-Based Electricity 4,666 5,798 7,566
3 Purchased Goods & Services 35,727 30,746 30,460
Capital Goods 14,225 9,321 10,507
Fuel- and Energy-Related Emissions Not Included in Scopes 1 or 2 666 860
Upstream Transportation and Distribution 72 165 86
Business Travel 6,023 4,210 10,007
Upstream Leased Assets 1 427 532
Downstream Transportation and Distribution 720 8 0
GHG Emissions using Market-Based Electrictiy 61,764 51,772 60,416

Notes

Notes

  1. Data from 2021 and 2022 reflects the calendar year. Data for 2023 reflects the fiscal year, which will be our practice going forward.
  2. “Location-based” comes from the GHG Protocol and does not include renewable energy purchases.
  3. “Market-based” comes from the GHG Protocol and includes renewable energy purchases.
  4. The following are some observations based on 2023 compared to 2022
    1. Scope 2 There are 26 leased offices reporting in FY23 compared to 25 CY22.
  5. In FY23, there was increased access to data and improved methodology in reporting for Purchased Goods and Services which led to a significant decrease in emissions when compared to the methodology used in prior years. As a result, we have restated the reported values for 2021 and 2022 to reflect this methodology.
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Methodology

Methodology

Nutanix measured carbon emissions using the Greenhouse Gas Protocol framework and inventoried emissions associated with Scopes 1, 2, and selected Scope 3 categories. We collected energy consumption data from our leased offices and datacenters to calculate the associated emissions for Scope 1 and 2. To improve the accuracy of energy and emissions reporting in six of our largest datacenters and select offices, we partner with nZero for more accurate, near real-time electricity consumption based on the local grid. nZero uses an advanced grid study of spatial temporal energy consumption at the time of use, providing more precise reporting for these sites. With guidance from external consultants, we’ve identified material categories associated with Scope 3 and leveraged various methods to help us calculate emissions.
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53,956 MWh

Total Energy for FY23 from Scope 1 & 2

50%

Percentage of energy consumption matched in FY23 with renewable energy sources*

*Sourced from Renewable Energy Certificates

4.27 MTCO2e*

(per million USD in revenue)
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

©2024 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or trademarks of Nutanix, Inc. in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This report may contain links to external websites that are not part of Nutanix.com. Nutanix does not control these sites and disclaims all responsibility for the content or accuracy of any external site. Our decision to link to an external site should not be considered an endorsement of any content on such a site. Certain information contained in this report may relate to or be based on studies, publications, surveys and other data obtained from third-party sources and our own internal estimates and research. While we believe these third-party studies, publications, surveys and other data are reliable as of the date of this report, they have not been independently verified, and we make no representation as to the adequacy, fairness, accuracy, or completeness of any information obtained from third-party sources. Unless otherwise noted, all data provided in this report is for calendar year 2023.

The information and opinions contained in this report are provided as of the date they are originally made and are subject to change without notice. Nutanix does not undertake to update or revise any such statements. This report is not intended to create legal rights or obligations. Inclusion of information in this report is not an indication that the subject or information is material in the context of the securities laws or any other laws of the United States or any other jurisdiction, or as these terms are used in the context of financial statements and financial reporting. The standards of measurement and performance contained in this report are developing and based on assumptions.

This report contains express and implied forward-looking statements, which involve substantial risks and uncertainties. Other than statements of historical fact, all statements contained in this report, including statements regarding our plans, initiatives, projections, targets, goals, commitments, expectations, or prospects, are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “plan,” “intend,” “could,” “would,” “expect,” “aspire,” or words or expressions of similar substance or the negative thereof, that convey the uncertainty of future events or outcomes are intended to identify forward-looking statements. You should not rely upon these forward-looking statements as predictions of future events. These forward-looking statements speak only as of the date they are originally made and are based on our current expectations only. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including scientific or technological developments, regulatory and legislative changes, stakeholder engagement, global political, social and economic trends, evolving sustainability frameworks, and other unanticipated or subsequent developments as well as those described in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, each filed with the U.S. Securities and Exchange Commission. It is not possible for us to predict all risks, nor can we assess the impact of all factors or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statements we may make. These forward-looking statements are merely aspirational and, in light of these risks, uncertainties and assumptions, we cannot guarantee that the future results, performance, or events and circumstances reflected in these statements will be achieved or will occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise or publicly release the results of any revision to these forward-looking statements to reflect new information or the occurrence of unanticipated or subsequent events, except as required by law.

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