Building our business case for sustainability

Atlassian initiated its sustainability programme by conducting a materiality assessment, identifying all the issues that stakeholders expected the company to advocate for. Employees were pushing the company’s leadership to act on climate change, and sales and marketing educated the company on the increasing expectations from enterprise customers and regulators to report on energy use data. Atlassian concluded that a net-zero emissions programme was essential for the long-term viability of the business.

Designing Atlassian’s net-zero future

The first step of developing a net-zero emissions programme is setting baseline goals and targets. Atlassian leaned on tools offered by the existing utility provider and found easy wins early on to create momentum and build confidence. It then looked beyond net-zero and included scope 1, 2, and 3 emissions, moving to support suppliers with science-based targets and vetting offset projects through Carbon Direct.

The company reduced its absolute scope 1 and scope 2 greenhouse gas emissions by 63.9% between fiscal years 2019 and 2020, surpassing its own targets. Atlassian has also committed to having 65% of its suppliers by emission covering purchased goods and services and capital goods having science-based targets by fiscal year 2025. The company examined how it handles its investments in its effort to reduce emissions. It partnered with investment managers to design investment vehicles and financial services with sustainability values.

Pushing our ambitions beyond net-zero

The net-zero emissions programme works in tandem with Atlassian’s climate-related financial risk framework and the company’s enterprise-risk management approach, using its own product, Jira. It invested in building a climate-related risk framework in alignment with the Task Force on Climate-related Financial Disclosures (TCFD) and identified the risks related to climate change and integrated them to manage long-term footprint planning decisions. The company also examined how it handles its investments in efforts to reduce emissions.

Holding ourselves accountable

Atlassian is committed to walking the talk and not just talking the talk. The company issued an annual sustainability report on its progress and setbacks. It took an open approach that celebrated meaningful results, along with sharing what was not happening as well, what the company planned to do next, and the emerging issues that the company was monitoring. Atlassian integrated its sustainability team and initiatives into the business, starting from the top, to encourage robust participation from everyone in the team. Finally, Atlassian committed to updating its net-zero progress regularly and increased transparency through reporting frameworks like the TCFD.

Recommendations

The guide recommends businesses to conduct materiality assessments to identify sustainability challenges important to the company and its stakeholders. It also suggests focusing on the opportunity of climate action, inspiring leaders on climate action, and taking an ambitious and proactive approach to sustainability. Atlassian encourages businesses to partner with external organisations, customers, and suppliers, and play a collective role in promoting business sustainability. Finally, Atlassian recommends businesses to report honestly on progress towards ESG goals, prioritising long-term thinking in decision making.