Environment

Our Commitment to Sustainability

As a global leader in cloud software, Nutanix continues to witness how technology can make impressive impacts for sustainability efforts while accelerating transformation. We champion sustainability through the offer of efficient technology, promotion of a circular economy, and investment in renewable energy. In FY24, we worked with a global climate consulting organization to explore ways to minimize our environmental impact through reduction of greenhouse gas emissions. We remain steadfast in our objective of making a positive impact on our planet and communities so that we can help create a viable, sustainable future.

Nutanix delivers a unified platform that minimizes complexity and maximizes efficiency, allowing businesses to run apps and data anywhere. Our platform offers organizations the freedom to choose their clouds, apps, and technology stack without sacrificing performance or cost. 

On average, customers that shared their experiences using the Nutanix Cloud Infrastructure (NCI) solution in Nutanix Cloud Platform (NCP) reported over a

70%

decrease in physical footprint*
50%

reduction in energy consumption versus legacy systems*

*These space or energy savings claims are average results based on case studies of over 50 representative Nutanix customers. 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.

Read more here.

Renewable Energy

Nutanix focuses on renewable energy in our datacenters, where the majority of our energy is consumed*. In FY24, our renewable energy consumption increased from around 50% last fiscal year to around 60%. 

Circular Economy: Reuse of Hardware and Recycling Programs

Nutanix delivers software-defined infrastructure that runs on industry-standard servers. By eliminating traditional proprietary storage hardware, Nutanix introduces new options for customers looking to modernize their infrastructure without throwing away existing server investments, provided the hardware is of sufficient quality and has been certified on the hardware compatibility list (HCL).

Customers running virtualized servers with legacy storage, for example, can modernize to Nutanix hyperconverged infrastructure and repurpose existing servers for use as either hyperconverged or compute nodes. Furthermore, customers who have traditionally been forced into “forklift upgrades” where an entire system must be replaced, now have the opportunity to incrementally introduce new storage and compute performance and capacity by adding small server increments to an existing Nutanix hyperconverged cluster. This incremental upgrade process preserves customer investment in older technologies, extending the lifespan of usable hardware while helping minimize waste.

Repurposing hardware not only preserves financial investments made on existing IT infrastructure, it also has the potential to:

  • Reduce e-waste 
  • Conserve resources
  • Extend hardware lifespan to help mitigate embodied emissions

This approach aligns well with sustainability goals and circular economy principles in IT infrastructure management (read more here). Nutanix supports compliance with global E-Waste and packaging regulatory requirements and facilitates recycling of Nutanix hardware. For more, please visit Nutanix’s recycling page. 

Energy Efficiency Partnership

Nutanix worked with our manufacturing partner to develop carbon lifecycle footprint data for NX servers. Nutanix servers comply with the Restriction of Hazardous Substances Directive and REACH regulation, and are also EPEAT certified, which means they meet specific environmental performance criteria, making it easier for buyers to identify and manage sustainability aspects of these products.

Education on Energy Efficiency and Emissions

To keep our customers aware and on top of their organization’s sustainability goals, we’ve developed 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. The tool offers a report that provides resources which are intended to inspire considerations for more sustainable IT infrastructure. 

Sustainable IT Solutions

The Nutanix Cloud Platform solution helps both Nutanix and our customers consolidate resources to a unified platform with automation, insights, and flexibility - providing a strong base to help IT teams move towards mitigating environmental impact. For more, go here. 

Save Space and Energy

On average, customers that shared their experiences using the Nutanix Cloud Infrastructure (NCI) solution reported over a 70% space savings and a 50% energy savings versus their legacy systems.1

Reduce Emissions

Move workloads between environments quickly - and without refactoring. In some cases, shifting a workload to a different location can make more than a 3X reduction in emissions.2

Optimize IT Management

Achieve 53% more efficient IT management3 through automation and streamlined operations. Accelerate the adoption of sustainable practices with enhanced visibility and control to eliminate waste.

1. These space or energy savings claims are average results based on case studies of over 50 representative Nutanix customers that are publicly available on the Nutanix website as of October 10, 2024. 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.
2. How Companies Can Reduce Emissions by Moving Workloads
3. IDC: Business Value of Nutanix Cloud Platform, October 2022

We have halved the datacenter footprint and reduced power consumption. It’s an important responsibility for everyone and Nutanix is helping us on the path to go clean and green."

Glenn Penfold Associate Director of Architecture and Applications, *#* University of Waikato

Customer Impact

In FY24, we continued to focus on energy efficiency data in our products by developing power monitor capability in our X-Ray and Prism products. This enables our customers to better monitor and manage their energy use in the datacenter. 

Datacenters

Nutanix’s internal datacenters are essential to our business and account for about 84% of Nutanix’s total energy consumption. Using our own cloud platform to virtualize workloads has helped to make our datacenters highly efficient. Our software-enabled design allowed us to achieve greater datacenter density, which translates into lower capital and operational expenses. Further, we were able to achieve increased energy savings and a simplified hybrid multicloud environment – improvements that speak directly to our commitment to performance, scalability, and reliability.

Since 2018, we’ve selected datacenter providers that prioritize energy and resource efficiency and power usage effectiveness (PUE). These providers offer renewable energy options and closely control water consumption. For example, in FY24, we moved IT workloads from a less optimized datacenter as its lease ended to one of these datacenter providers offering better sustainability performance.

Our datacenters consume a significant amount of Nutanix’s energy so focusing on renewables where it can make the biggest impact makes sense. In FY24 we saw an increase in renewable energy in our datacenters to 73%, up from 68% in FY23."

Rami Mazid Chief Information Officer, *#*Nutanix

Office Buildings and Facilities

Our efficiency efforts remain a top priority for our Nutanix workplaces. In FY24, we concluded our HQ consolidation project, which began in 2022. This project reduced our largest location, which was a fivebuilding campus at our headquarters, from 440,000 square feet to just under 216,000 square feet, a 51% reduction. Several of the vacated buildings used natural gas, which in prior years contributed to our Scope 1 emissions. Although some of these buildings didn’t completely close until late in 2024, we’ve already observed a 17% reduction in Scope 1 emissions compared to FY23 as a result. 

Much of the resources used in the downsized office space, such as furniture and electronic equipment, was repurposed in the remaining office space, or donated to Greener Source, Resource Area For Teaching (RAFT), a local Boys & Girls Club, a local high school, and corporate e-waste partners. We aspire to use this model globally to repurpose as many resources as possible when consolidating, building new, or moving existing workspaces.

Currently, we have two facilities 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, we focus on efficiently operating our office spaces and continue to promote and support sustainable practices across the organization, including:

  • Recycling at all locations
  • Reducing paper goods where possible, utilizing glassware
  • Selection of vendors who utilize environmentally friendly products and services where possible
  • 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 voluntarily 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 in our aim to minimize carbon emissions that impact our planet and communities. In FY24, we obtained third-party limited assurance from LRQA for the third consecutive year, to verify Scope 1, 2, and 3 emission data as well as our disclosures related to energy and renewable energy.

We also began working with 3Degrees, a leading global climate solutions provider, to study the feasibility of developing a carbon reduction roadmap. Our goal is to observe how our operations impact emissions and, ultimately, minimize those emissions and the impact of our footprint. 

FY24 Metric Tons of Carbon Dioxide Equivalent (MTCO2e)

Upstream Transportation and Distribution
0.17%
Stationary Combustion
0.47%
Fuel-and Energy-Related Emissions
Not Included in Scopes 1 or 2
1.10%
Upstream Leased Assets
3.11%
Downstream Transportation and Distribution
4.35%
Market Based Electricity
10.20%
Capital Goods
14.27%
Business Travel
25.97%
Purchased Goods and Services
40.37%

Scope 1 and 2 Greenhouse Gas Emissions in MTCO2e

(Using “Market-Based Electricity”)

Scope 2
Scope 1
5,798
431
CY 2022
7,566
398
FY 2023
7,243
331
FY 2024

57K MWh

Total Energy for FY24 from Scope 1 & 2

59%

Energy consumption in in FY24 sourced from renewable energy*

3.52 MTCO2e**

(per million USD in revenue)

*From Energy Attribute Certificates
** 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

Scope Category CY 2022 GHG Emissions
(MTCO2e)		 FY 2023 GHG Emissions
(MTCO2e)		 FY 2024 GHG Emissions
(MTCO2e)
1 Stationary and Combustion 431 398 331
2 Location-Based Electricity 14,798 16,871 18,626
Market-Based Electricity 5,798 7,566 7,243
3 Purchased Goods & Services 30,746 28,829 28,665
Capital Goods 9,321 10,507 10,135
Fuel- and Energy-Related Emissions Not Included in Scopes 1 or 2 666 860 782
Upstream Transportation and Distribution 165 86 123
Business Travel 4,210 10,007 18,441
Upstream Leased Assets 427 1,163 2,206
Downstream Transportation and Distribution 4,794 4,348 3,088
Total GHG Emissions using Market-Based Electrictiy 56,558 63,764 71,014

Notes

Notes

  • Data from 2022 reflects the calendar year. Data for 2023 onward reflects the fiscal year, which will be our practice going forward. 
  • “Location-Based” comes from the GHG Protocol and reflects the average grid emissions intensity in locations where we operate.
  • “Market-Based” comes from the GHG Protocol and reflects our renewable energy purchases and contracts. 
  • Scope 1 & 2: There are 23 leased offices reporting in FY24 compared to 26 in FY23.
  • We continue to enhance the accuracy and reliability of our emissions reporting. In 2023, we transitioned from calendar year to fiscal year reporting to align with our financial reporting cycle. Fiscal year reporting enables us to better leverage spend data from our general ledger. As part of this transition, we also restated historical emissions data to reflect improvements in methodology and data quality, enabling more consistent yearover-year comparability and progress tracking:

     

    • Scope 3 Emissions Reclassification: We have refined our allocation of emissions from short-term leased facilities, which were previously grouped under Purchased Goods and Services. In alignment with the Greenhouse Gas Protocol, we have reclassified these emissions as Upstream Leased Assets. We have reflected this reclassification for previous periods, where material and feasible.
    • Scope 3 Data Improvements: When applying our more accurate data collection process this year, we identified previously omitted data in Scope 3, Category 9: Downstream Transportation and Distribution. We have restated the FY23 value using this year’s updated methodology. We have also restated our CY22 emissions to the extent possible, given the historic discrepancy between our calendar year emissions Methodology: reporting data and fiscal year records.
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Methodology

Methodology

Nutanix annually inventories its carbon emissions using the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. from the World Resource Institute 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. With guidance from external consultants, we’ve identified relevant categories associated with Scope 3 and leveraged various methods to help us calculate estimated emissions. Certain emissions data, particularly Scope 3, are estimated using industry averages and best-available data where precise data is not available. Scope 3 is inherently uncertain due to the indirect nature of these emissions and the variety of sources used to estimate the emissions, and these estimates may be revised as improved data emerges.

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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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