Our climate commitment
Environmental matters and greenhouse gas emissions
Our ambition to reach net zero for Scope 1 and 2 by 2030 continues to drive our programme forward.
SoftwareOne’s Scope 3 obligations encompass addressing the indirect greenhouse gas emissions that occur across our value chain. These emissions arise from activities outside our direct control, such as the production of hardware components, employee commuting, business travel, data centre energy and water use, and waste generated in operations. We trust our partners and suppliers to be responsible for their own impact. However, to meet our obligations, SoftwareOne actively engages with our partners to encourage sustainable practices and provide tools for employees to reduce their commuting emissions. SoftwareOne, together with its partners, is responsible for creating a more sustainable market with solutions that will require minimal raw materials. Although it is not within our direct responsibility, we acknowledge that data centres in our industry generate a high amount of carbon emissions. Accurate emission measurement, transparent reporting and targeted reduction initiatives are vital to fulfilling these responsibilities while enhancing sustainability credibility.
Climate-related risk management
Climate-related risks are included in SoftwareOne’s ESG risk and opportunity management framework, and their management is supported by our double materiality assessment. In 2024, SoftwareOne enhanced our methodologies and tools to better identify, assess, and address climate-related risks and opportunities. An enterprise risk register was used to evaluate the potential impacts of both transitional and physical risk factors on our business. This assessment was spearheaded by an internal working group comprising representatives from various business functions, ensuring a comprehensive and informed approach.
Scenario analysis
Scenario analysis is a key tool that helps SoftwareOne evaluate how climate-related risks and opportunities could impact our business under different plausible future states. To do so, we have identified three potential scenarios:
- Low-carbon transition (1.5°C scenario): Under this scenario, it is assumed that governments and businesses accelerate decarbonisation efforts to limit global warming to 1.5°C. This would mean that cloud providers, such as key partners of SoftwareOne, prioritise data centres powered by renewable energy and that demand for carbon accounting and sustainability management software is high. Transitional risks1) for SoftwareOne include scrutiny over our carbon footprint and increased need for investment in sustainable operations.
- Moderate transition (2°C scenario): Assumptions include a gradual global adoption of climate policies and moderate transition to renewable energy sources. Data centres’ energy costs rise due to carbon taxes, affecting software pricing. Transitional risks for SoftwareOne include marginal increases in operational costs, for example energy-intensive data centres used for our customer solutions.
- High emissions (4°C scenario): Under this scenario, it is assumed that limited global action on climate change leads to severe physical impacts. There is an increased frequency of extreme weather events and rising energy demand escalates operating costs for energy-intensive software infrastructure such as data centres. Physical risks2) affecting SoftwareOne in this scenario include data centre disruptions and increased cooling costs due to higher global temperatures.
1) SoftwareOne defines risks associated with the transition to a low-carbon economy.
They arise from changes in policy, technology, market preferences, and stakeholder expectations related to addressing climate change.
2) These risks are present today and arise from the physical impacts of climate change, including acute events like storms and floods,
and chronic changes such as rising temperatures and sea levels.
Climate-related risk assessment
|
Risk |
Current/Anticipated |
Magnitude |
Time horizon |
Score |
Financial impact (CHF) |
|
Transition Risks |
|||||
|
Policy and Legal |
|
|
|
|
|
|
Increased pricing of GHG emissions |
Anticipated |
2 |
Mid-term |
2 |
Medium (1,000–5,000) |
|
Enhanced emissions-reporting obligations |
Current |
4 |
Short-term |
4 |
Very severe (10,000–20,000) |
|
Mandates on and regulation of existing products and services |
Anticipated |
2 |
Mid-term |
0.8 |
Medium (1,000–5,000) |
|
Exposure to litigation |
Anticipated |
4 |
Long-term |
2.4 |
Medium (1,000–5,000) |
|
Technology |
|
|
|
|
|
|
Substitution of existing products and services with lower emissions options |
Anticipated |
3 |
Mid-term |
0.6 |
Low (<1,000) |
|
Unsuccessful investment in new technologies |
Anticipated |
3 |
Long-term |
0.6 |
Low (<1,000) |
|
Costs to transition to lower emissions technology |
Current |
3 |
Short-term |
1.2 |
Medium (1,000–5,000) |
|
Market |
|
|
|
|
|
|
Changing customer behavior |
Current |
3 |
Mid-term |
3 |
Severe (5,000–10,000) |
|
Uncertainty in market signals |
Current |
3 |
Mid-term |
3 |
Severe (5,000–10,000) |
|
Increased cost of raw materials |
Current |
1 |
Mid-term |
1 |
Low (<1,000) |
|
Reputation |
|
|
|
|
|
|
Shifts in consumer preferences |
Anticipated |
4 |
Mid-term |
2.4 |
Severe (5,000–10,000) |
|
Stigmatisation of sector |
Anticipated |
1 |
Long-term |
0.4 |
Low (<1,000) |
|
Increased stakeholder concern or negative stakeholder feedback |
Current |
4 |
Short-term |
4 |
Very severe (10,000–20,000) |
|
|
|
|
|
|
|
|
Physical Risks |
|||||
|
Acute |
|
|
|
|
|
|
Increased severity of extreme weather events such as cyclones and floods |
Anticipated |
3 |
Short-term |
1.2 |
Low (<1,000) |
|
Chronic |
|
|
|
|
|
|
Changes in precipitation patterns and extreme variability in weather paterns |
Anticipated |
3 |
Short-term |
1.2 |
Low (<1,000) |
|
Rising mean temperatures |
Current |
2 |
Mid-term |
2 |
Medium (1,000–5,000) |
|
Rising sea levels |
Current |
2 |
Mid-term |
2 |
Medium (1,000–5,000) |
Magnitude:
1 – Negligible: minimal financial impact and hardly affecting day-to-day operations
2 – Low: small financial impact and noticeable but not altering business-as-usual
3 – Medium: significant financial impact and influence on operational decisions.
4 – High: major financial impact and likely to affect strategic planning.
5 – Extreme: critical financial impact and could alter market position.
Score: Magnitude x likelihood
Carbon footprint
SoftwareOne remains committed to measuring and reducing our carbon footprint in 2024. We aim to improve our carbon emission data accuracy and granularity each year to report a complete carbon footprint.
With the help of Greenly, we have improved our emissions data accuracy and calculated a more comprehensive carbon footprint. Greenly allows us to simplify the process of calculating Scope 1, 2, and 3 emissions and provides actionable insights to identify reduction opportunities and gaps in our Scope 3 emission analysis. Due to our transition to a new carbon footprint calculator (Greenly), proxies and approaches to emission calculations differ from 2023 to 2024 data.
This may cause discrepancies when comparing year-on-year data. We intend to continue our relationship with Greenly until 2030 to ensure data consistency and allow for better annual emission comparisons.
3) Excluding use of sold products (189,632,880 tCO2e)
In 2024, SoftwareOne saw a decrease in Scope 1 and 2 carbon emissions from 8,559 tCO2e to 7,508 tCO2e. This year, for the first time, we covered the complete GHG inventory and more activity data was collected than in previous years. This reduction is due to office closures and downsizing. Our Green Office Initiative had a positive impact on facility emissions as offices relocated to energy-efficient buildings and locations with lower environmental impacts.
SoftwareOne continues to work towards setting our science-based targets and developing customised strategies to achieve net-zero goals, making our carbon reduction strategy both measurable and actionable. Our 2023 emission footprint will act as the baseline footprint for setting science-based targets with SBTi.
Carbon data collection
Our Environmental Data Experts at each of our subsidiaries gathered information on that subsidiary’s activity and spend-based data from their country. This data is collated and verified by Greenly.
Our global carbon footprint data collection programme would not be possible without the hard work of our volunteers, our Environmental Data Experts from each country.
Value chain mapping
Value chain mapping helps us to identify potential vulnerabilities in the supply chain or operational processes, allowing us to develop strategies to mitigate risks and enhance resilience. Our supply chain involves establishing partnerships with software developers and vendors to source software licenses.
Due to the nature of our business, we do not transport and distribute finished goods and we do not manufacture goods from raw materials or produce hazardous waste.
Our Scope 1 and 2 emissions come from activities related to our office spaces, energy consumption and company-owned cars. However, much like many other software companies, our Scope 3 emissions are much larger than our Scope 1 and 2 emissions and occur in the indirect upstream and downstream value chain emissions.
Downstream entities include end-users who purchase and use the software licences. SoftwareOne engages with customers to provide support services, manage licence renewals and facilitate upgrades. Activities downstream involve cutting downstream emissions by supporting our partners in achieving their public environmental commitments. These emissions are calculated from spend-based data; they are difficult to measure and cannot be directly influenced by SoftwareOne.
Business travel and our employees’ commuting habits contribute to our upstream Scope 3 emissions and are addressed in our carbon reduction strategy. We aim to continue improving our data collection processes until activity-based data can be used and our carbon footprint is as accurate as possible.
Carbon reduction strategy
Our 2030 climate ambition is focused on implementing effective carbon reduction and emission avoidance practices. This includes our objectives to continue measuring our impact and reducing the carbon footprint of our business activities while using our unique expertise to help our clients manage their own environmental impact. Progress towards our climate ambition is measured by our annual carbon emission calculation and carbon footprint reporting. We aim to reduce Scope 1 and 2 emissions by 12.5% year on year, increase activity-based metrics, and measure progress through annual emissions calculations and reporting.
Our carbon reduction strategy takes a localised approach, allowing each country to focus on carbon reduction initiatives that directly align with the activities their emission data demonstrates to be the highest. Country leaders are supported by the centralised committee and budget to ensure they have the necessary resources and expertise to reduce their carbon footprint in their country.
Global Environmental Policy
Our global environmental policy covers a wide range of commitments that SoftwareOne and our employees adhere to every day. These commitments are integral to the way we operate. They include being environmentally responsible, identifying and complying with existing legal environmental regulations, and measuring our carbon footprint. In our offices, we implement our Green Office Initiative and for our people, we commit to training employees in responsible environmental practices and actively encourage their involvement in environmental action.
Education and awareness
Our online learning course is designed to empower employees and leaders with the knowledge and practical tools needed to make a positive impact within SoftwareOne and beyond. The course is available to all employees and covers topics such as the science behind climate change, its global implications for businesses and, most importantly, actionable steps each employee can take to reduce their carbon footprint. These steps are categorised according to employees’ level in the hierarchy to ensure leaders take greater responsibility for implementing reduction initiatives while supporting their teams to do the same and ultimately working towards achieving KPIs.
SoftwareOne celebrated Earth Week in April and Zero Emissions Day in September 2024, which formed part of our climate awareness initiative. Earth Week included a variety of events and employee initiatives. We hosted an ESG Talk with special guest Jo Ruxton from Ocean Generation. Jo shared some interesting insights into the state of our oceans, the incredible creatures that inhabit them, plastic pollution and what we can do to help protect our planet. Employees participated in our Nature Photography competition, where they captured images showcasing the beauty and importance of our natural world. We used our SoftwareOne Gives Back programme to donate to Ocean Generation to help achieve their vision of a world where the ocean is freed from human threats.
At SoftwareOne we celebrate Zero Emissions Day to recognise and accelerate our collective efforts towards achieving a sustainable and resilient future for our planet. SoftwareOne encourages employees to reduce their carbon footprint by playing Zero Emissions Day Bingo which includes eating vegan throughout the day, planting trees, shopping at the local market and turning off the power for one hour.
Our roadmap to net zero
Our roadmap to net zero focuses on four key areas: green offices, energy, fleet and commuting, and business travel.
Green offices and transitioning to renewable energy
The emissions associated with energy used for heating, cooling and electricity in our offices account for 70% of our Scope 1 and 2 emissions. Within our office buildings, we strive to create sustainable and energy-efficient workplaces and, where possible, make use of renewable energy suppliers and obtain green energy certificates. In some instances, such as in the buildings we rent, we have less control over energy suppliers, but we encourage our subsidiaries to rent energy-efficient offices, and we promote energy reduction initiatives such as LED and PIR1 lighting. When offices relocate, we encourage facility managers to consider ESG impacts. At the same time, subsidiaries are encouraged to reduce their energy usage year on year.
Waste management and recycling in our offices form an important part of our Green Office initiative. Our office managers are encouraged to put measures in place to reduce the volume of waste generated through effective waste management and recycling practices. Our waste management commitments are set out in our Global Environmental Policy, which all employees must adhere to. These commitments include minimising our waste through careful and efficient use of materials while reusing and recycling materials and ensuring all offices have recycling bins/facilities available for employees and use recycled printer paper.
Fleet and commuting
Our fleet accounts for 24% of our Scope 1 and 2 emissions, and reducing this number is an important priority for our carbon reduction strategy. In 2024, a new global company car policy was developed to action our transition away from diesel and petrol cars and our move towards electric vehicles (EVs). We developed this new company car policy to accelerate the decarbonisation of our fleet. Employees are incentivised to select EVs and low-emission vehicles, and stricter rules are now applied to determine an employee’s eligibility for a company car. Public transport and alternative solutions are promoted where practical, and high-emission vehicles options are limited in the selection process. This new policy, which has been supported and approved by our Executive Board, will be implemented on a global scale in 2025 to reduce the emissions associated with our fleet and support our reduction goals.
To reduce our employees’ commuting emissions, many countries already encourage low-emission travel such as cycling and use of public transport. In countries where employees need to travel by car, we have car sharing and EV schemes.
Employee carbon footprint survey
Our employee survey captures employees’ work-related emissions such as travel, remote working energy use and even their midday meals. Their footprint is calculated annually, and Greenly provides tailored training to help employees understand their emissions and reduce their footprint.
Business travel
SoftwareOne is a people-centric business, and client meetings are an important part of building business relationships. Business travel accounts for a fair proportion of our Scope 3 emissions and remains an important part of our carbon reduction strategy. We encourage our employees to make mindful travel decisions by being aware of the emissions associated with their mode of travel and by selecting train travel over cars where possible or choosing economy class over business class travel.
Our Global Travel Policy includes specific environmental guidance to help reduce travel emissions and encourage our employees to make climate-conscious travel decisions. Key points include:
- Employees are required to use the travel expense tool to select the most cost-effective and carbon-efficient arrangements.
- Employees must travel by train when the total journey is 400 km or less, even if alternative, less carbon-efficient modes of transport are more cost-effective.
- Lower classes of service have lower emissions and should be considered first even if an upgrade is possible.
- Employees are encouraged to choose sustainable or eco-friendly accommodation options.
- Hybrid or electric vehicles are to be preferred when renting a car.
- Shared car use is encouraged when two or more employees are traveling to a location that can only be reached by car.
By implementing parameters such as these, we expect our business travel emissions to reduce year on year. This policy, together with our new global travel expense tool, will promote less and lower emission travel and provide more accurate travel data.
SBTi
SoftwareOne has committed to setting near-term targets and is now listed on the SBTi website as well as their partners’ website.
We have been working with Greenly to develop our science-based targets in 2024. We aim to be net zero for Scope 1 and 2 by 2030, and SBTi commitments form the foundation of our carbon reduction strategy. To support our science-based targets, we will set specific KPIs in carbon reduction for each country to achieve our overall target.
Cutting downstream emissions
Cloud Sustainability
Cloud Sustainability continues to be a focal point in our Cutting downstream emissions programme, aimed at supporting our clients’ own sustainability and ESG journeys. This programme provides accurate and specific emission reduction strategies across the hyperscalers4).
Cloud Sustainability provides our clients with fundamental data for each cloud solution and application service, enabling them to reduce their Scope 3 emissions.
FinOps continues to provide organisations with a framework with which to obtain maximum value from cloud investments, and as a logical progression, Cloud Sustainability reduces the environmental impact of digital technologies and operations. While FinOps enables clients to manage their software and cloud spend, Cloud Sustainability takes a broader approach by considering the environmental impact of software development and operations. Both FinOps and Cloud Sustainability aim to optimise the use of resources to reduce waste and increase efficiency. FinOps focuses on cloud resource optimisation; Cloud Sustainability looks at resource optimisation across the entire software development and operations lifecycle.
Cloud Sustainability emphasises the use of energy-efficient technologies and practices in software development and operations. With extensive resources at our disposal, we are making a significant contribution to our market sector. Cloud Sustainability demonstrates SoftwareOne’s commitment to supporting our customers in achieving their own ESG goals.
4) Hyperscalers are large cloud service providers that can provide services such as computing and storage at enterprise scale, e.g., AWS and Microsoft