Salesforce.com

RATING

SECTOR

IT Software & Services

WEBSITE

CONTACT

salesforce.com Inc.
Salesforce Tower
415 Mission Street, 3rd Floor
San Francisco, CA 94105

Tel: 1-800-NO-SOFTWARE
Fax: 415-901-7040

STOCK EXCHANGE

LISTING

  • CDP: Salesforce.com, Inc. Climate Change 2020 – A
  • CDP: Salesforce.com, Inc. Climate Change 2019 – A
  • Ethispehere’s 2020 World’s Most Ethical Companies’ Honoree List
  • Fortune World’s Most Admired Companies 2013 – 2020
  • Member of Dow Jones Sustainability Indices
  • One of the Fortune “100 Best Companies To Work For” 2020
  • Great Place to Work – One of the World’s Best Workplaces
  • #2 on the FORTUNE “100 Best Companies to Work For®” 2019 List
  • Human Rights Campaign Best Places to Work – Corporate Equality Index
  • LinkedIn Top Companies – Where the U.S. Wants To Work Now
  • Glassdoor Best Places To Work – Employees’ Choice
  • Indeed’s Top-Rated Workplaces: The 50 Best
  • #1 Best Place To Work in Europe – Great Place to Work
  • #1 People’s 50 Companies that Care
  • Best Large Workplaces for Women – Fortune

EMPLOYEES

49,000

CHIEF SUSTAINABILITY OFFICER

Patrick Flynn

AWARDS

  • 2020 Innovation Award – Smart Energy Decisions
  • 2020 Green Lease Leaders Silver Award – Institute of Market Transformation and Department of Energy
  • 2019 Green Power Market Development Award – Center for Resource Solutions

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Salesforce.com

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Salesforce.com, Inc. engages in the design and development of cloud-based enterprise software for customer relationship management. Its solutions include sales force automation, customer service and support, marketing automation, digital commerce, community management, collaboration, industry-specific solutions, and salesforce platform. 

The firm also provides guidance, support, training, and advisory services. The company was founded by Marc Russell Benioff, Parker Harris, David Moellenhoff, and Frank Dominguez in February 1999 and is headquartered in San Francisco, CA.

Company Sustainability Activity

At Salesforce, they consider the environment to be a key stakeholder and they are committed to harnessing their culture of innovation to improve the state of the world. Salesforce leverages the power of its people and their products to reduce the impact that Salesforce and are their customers have on the planet. Salesforce has net-zero emissions for its operations globally and delivers customers a carbon-neutral cloud.

Driving positive social and environmental impact is core to whom Salesforce is as a company. Salesforce brings its values to life with all its stakeholders – stockholders, customers, employees, the communities where Salesforce lives, its environment, and society – because Salesforce knows the company can’t change what the future looks like alone. Salesforce strives to create a better world through the following:

  • They are committed to creating a sustainable, low-carbon future by delivering a carbon-neutral cloud, operating as a net-zero greenhouse gas emissions company, and working to achieve its goal of 100% renewable energy for its global operations by fiscal 2022.
  • Salesforce has spearheaded initiatives to drive equality in four key areas: equal rights, equal pay, equal education, and equal opportunity.
  • Salesforce pioneered and has inspired other companies to adopt its 1-1-1 integrated philanthropy model, which leverages 1% of a company’s equity, employee time, and product to help improve communities around the world.
  • Created an Office of Ethical and Humane Use of Technology because Salesforce recognizes the transformative power of the technologies.
 

Highlights

  • Global leadership and commitment to the planet. Salesforce, along with a coalition of business, civil society, and UN leaders, committed to set 1.5°C science-based emissions reduction targets, the ambitious goal needed to prevent the damaging effects of climate change. The Science Based Targets initiative approved the company’s targets, advancing its commitment to creating a sustainable, low-carbon future and economy
  • In the fall of 2019, they announced Salesforce Sustainability Cloud, a solution built on Salesforce, that empowers businesses to quickly track, analyze and report reliable environmental data to help them reduce their carbon emissions
  • In January 2020, the World Economic Forum and partners, including Salesforce launched 1t.org to connect, empower and mobilize a global reforestation community of millions. Salesforce committed to conserving and restoring 100 million trees.
  • Philanthropy: Support of the Sustainable Development Goals. At Dreamforce last fall, Salesforce donated $17 million in grants and committed 1 million employee hours to advance the United Nations’ Sustainable Development Goals, which range from upholding equality for all people to fighting climate change. Salesforce also joined the United Nations Global Compact, a voluntary global leadership platform with 10 principles for companies to align on the development, implementation, and communication of responsible business practices.
  • Education: Efforts to upskill the workforce. With Trailhead, its free online learning platform for everyone, Salesforce is upskilling everyone for the digital economy. More than 1.8 million learners are changing their lives on Trailhead, and have an opportunity to participate in the Salesforce ecosystem.

Targets

  • 100% renewable energy for global operations by 2022
  • Last year (FY 2020) at Dreamforce, committed 1 million employee hours to advance the United Nations’ Sustainable Development Goals
  • At World Economic Forum, committed to conserving and restoring 100 million trees
  • Salesforce’s long-term target is a 24/7 clean energy grid in the locations and communities in which Salesforce operates
  • By 2024, 60% of Salesforce suppliers (by emissions) to set emissions reduction targets
  • All major new Salesforce office interiors will align with LEED® Platinum v4 standards by 2020 and pursue International Living Future Institute’s Zero Carbon certification by 2030.
  • By 2020, expand internal price on carbon, offsetting 100% of business travel and employee commuting emissions
  • By 2022, $10M to invest in climate entrepreneurs and startups 
  • Commit to We Mean BusinessImprove Water Security initiative
  • Lead geographies where Salesforce operates toward a just transition to a low carbon economy
  • Aspire to have 50% of their U.S. workforce made up of Underrepresented Groups (Women, Black, Latinx, Indigenous, Multiracial, LGBTQ+, People with Disabilities, and Veterans) by FY24.

Progress

Employee Engagement

  • Since its launch, nearly 2 mission Trailblazers have earned over 20 million badges on Trailhead, their free online learning platform
  • In FY20, Salesforce provided more than 46,000 nonprofit and higher education organizations with the use of their service offerings for free or at a discount.
  • Earthforce is made up of more than 9,000 employee volunteers dedicated to promoting and celebrating environmental responsibility at Salesforce. In FY20, there were 40+ teams, 100+ Earth Month Celebrations, +20,000 hours of volunteer time, and +11,000 badges earned on Trailhead completing internal sustainability training. 

Philanthropy

  • In FY20, they invested more than $70 million in grants and 1 million employee volunteer hours 
  • In FY20, they granted $500,000 to uAspire, advancing its mission to ensure that all young people have an equitable opportunity to graduate from college and reach their full potential. They also invested $500,000 each in Braven and Mozaik, two organizations that help empower disadvantaged people to transition into meaningful careers and gain the skills they need.

Renewable Energy

  • As of its fiscal year 2018, Salesforce is 50% of the way toward matching its annual electricity use globally with renewable energy
  • Salesforce is a cloud pioneer. The cloud runs on electricity, which today comes predominantly from burning fossil fuels – a major source of global greenhouse gas emissions. Since making their first public commitment to 100% Renewable Energy in 2013, Salesforce has been working toward a clean energy future. Reaching 100% Renewable Energy means purchasing renewable energy equivalent to what Salesforce uses to power its global operations on an annual basis. Achieving this in an impactful way means thinking about deliberate, lasting, long-term grid transformation. That’s why Salesforce focuses on purchasing renewable energy in ways that add new renewable energy to the grid, avoid and reduce the greatest possible emissions, and blaze a trail for others to follow. They currently have 6 major wind and solar projects across the country.

Equality

  • The company established an Office of Ethical and Humane Use as part of their Office of Equality to help ensure their products are developed and used in ways that are ethical and uphold fundamental rights. Core to this effort is the establishment of the first-ever Office of Ethical and Humane Use of Technology, sitting within the Office of Equality. The office works across products, laws, policies, and ethics to develop and implement a strategic framework for the ethical and humane use of technology across Salesforce.
  • Supplier DiversityIn FY20, they invested in a new diverse supplier registration process, allowing them to recruit, advise and engage at a deeper level with suppliers, industry leaders, and nonprofits. The new process has enabled them to widen their diverse supplier database to show suppliers in specific geographical areas, revenue brands, and with diverse demographics. This commitment gives them a greater level of engagement with the suppliers and the supplier diversity-certifying organizations. 

Global Leadership and Collaboration

Salesforce Sustainability Cloud

  • A prebuilt solution that empowers businesses to quickly track, analyze and report reliable environmental data to help them reduce their carbon emissions Salesforce uses the platform to manage their own environmental footprint and deliver high-quality data to their own stakeholders. 

Advocating for Climate Policy

  • CEO Marc Benioff joined 70+ CEOs in signing a letter that called for the U.S. to remain in the Paris Agreement

Sustainable Real Estate

  • Healthy and Sustainable Materials Program in 2016 in order to understand, mitigate, and improve the environmental and health impacts of their building products. As of FY20, Salesforce has achieved or is pursuing green certification for 74% of their office space.
  • Salesforce collaborates with industry leaders who are shifting the standards of their built environment, including Paris Solutions Campaign, ILFI Tech 20, Embodied Carbon in Construction Calculator, mindful MATERIALS Catalyst Circle

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 4

  • Trailhead, Salesforce’s free gamified online learning platform, empowers anyone to skill up for the future. Trailhead’s mission is to reduce the barriers to learning and provide anyone, regardless of their background or education level, with the tools needed to land a job in the thriving Salesforce ecosystem. 
  • Their Circle the Schools and School Plus programs support local schools and under-resourced schools
  • Their Schools Plus Collaboration Forum convened teachers and principals from 41 schools to advance best practices in STEM education.
  • Their employees have volunteered over 65,000 hours to strengthen schools in their communities.
  • Through their partnership with uAspire, a leading non-profit focus on college affordability, they are helping young people identify financially viable panthers to and through college. 

SDG 5

  • In 2016, Salesforce made a commitment to ensure equal pay for equal work. As of April 30, 3 2020, the company has spent more than $12 million to address unexplained differences in pay among genders, as well as between race and ethnicity in the U.S.

SDG 7

  • In FY20, they procured electricity from renewable energy resources equivalent to 63% of what they used globally, predominantly through large-scale, long-term purchases that add additional renewable energy to the grid. 
  • Renewable Energy Formula: Like many other leading companies Salesforce calculates its progress toward 100% Renewable Energy by adding up all of the renewable energy credits they have obtained annually from the renewable energy projects they support, and the renewable energy delivered from the grid. Then, they divide that total by its global electricity use in the same year. Put another way, when Salesforce match every unit of electricity company use annually with a REC, they will reach its 100% Renewable Energy goal

SDG 8 

  • The company’s CEO signed the White House “Pledge to America’s Workers” committing to provide training to 100 million Americans
  • The company signed on to the 1t.org initiative, which will work to overcome the many social-economic barriers that hold reforestation back by catalyzing top-down system change – such as policy change, incentives, market creation, and access to funding and technology
  • The company established an Office of Ethical and Humane Use as part of their Office of Equality to help ensure their products are developed and used in ways that are ethical and uphold fundamental rights.

SDG 11

  • The company supports sustainable development projects through the purchase of carbon credits 

SDG 13

  • Salesforce set two interim targets to address the climate impacts of its own electricity use. Salesforce reached its first target in 2017, Net-Zero Greenhouse Gas Emissions, by procuring carbon offsets for the emissions associated with its electricity use that Salesforce couldn’t avoid, reduce, or offset with renewable energy purchases. In FY2020, Salesforce made it halfway to its second target of 100% Renewable Energy.

Secondary SDGs: 12, 15, 17

Evaluation

The company’s stakeholder report sets focused yet ambitious targets and includes detailed information on their progress. The company is proactive on numerous fronts to align with UN SDGs, and have noteworthy awards and listings, including a CDP rating of “A” for climate change.

Salesforce produces a comprehensive report with specific targets and goals for reducing their CO2 emissions, energy consumption, renewable energy, human rights, and advocacy in specific alignment with the UN Sustainable Development Goals.

Aside from the allegations against the company for third-party privacy issues, it seems to display good transparency, based on other media pieces, their website, and stakeholder report. 

Despite ties in a couple of slightly controversial areas, the company has made strides to promote sustainability, collaborating with diverse organizations and creating focused initiatives for work toward various goals. This company has been rated a C. 

Analyst Outlook: Positive

The company has made commendable efforts toward sustainability and CSR but should keep pushing themselves to achieve further progress, such as garnering more certificates, aligning with more SDGs, achieving more progress, and earning public trust by not being tied to unethical behavior.

Key Points

  • The company has noteworthy recognition from the CDP, Ethisphere, and Fortune, and DowJones Indices for being an ethical and sustainable business
  • Salesforce’s voluntary reporting is informed by the following frameworks: Global Reporting Initiative Standards (GRI), Sustainability Accounting Standards Board, U.N. Global Compact,  and Task Force on Climate-related Financial Disclosures
  • The company has been tied to allegations of third-party privacy issues and sex trafficking, though the company’s level of involvement remains to be seen.
  • The company shares detailed information about their targets and progress, and appear to approach sustainability on multiple fronts
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