Our responsibility,our impact.
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We have a bold vision: To create a world where each day is safer and more secure than the one before… and… we want to be the very best company to work for.
To achieve both, we know we need an equally bold approach to what we do and how we do it. That's why we work hard every day to integrate our Corporate Responsibility into our culture and operations.
We are proud to be:
- Disrupting how we operate – through FLEXWORK
- Setting 1.5°C aligned Science-Based Targets and 100% Renewable Energy goals
- Including employee networks in charitable investment recommendations
- Building partnerships that will ensure we have a diverse future workforce
- Ensuring each and every employee has a voice
The impact we're having*:
- Employee engagement scores in the top quartile
- Achieved 2022 CDP Climate’s A-List
- Nearly $6M invested to help colleagues and communities impacted by COVID
- Academic cybersecurity curriculum in more than 2,200 high schools, colleges, universities and other nonprofits in over 86 countries
- Over 4,500 causes supported through donations and volunteers
* as of July 2022
Our three priorities
Our passion comes from wanting to create the most employee-centric and responsible company in the world. We recognize that we can't have a safer world if we don't respect our planet. We believe that all people should prosper and thrive, because everything we do is through a lens of inclusion.
Passion
We advance our industry.
Making the world safer and more secure is a big job, and as an industry leader, we take that responsibility seriously. We strive to be a model corporate citizen and continuously elevate our business practices, from our employee-facing initiatives and code of conduct to our suppliers and partner ecosystem. We set a high bar for ourselves and our value chain, striving to advance our shared interest in corporate responsibility standards across our industry.
Planet
We respect our planet.
There is only one planet earth, and we recognize the role we must take in order to protect it. From our 100% renewable energy goal, our emissions reduction targets based on science and our engagement across our value chain, we are taking meaningful action to make our business sustainable for the long term.
People
We uplift our communities.
We care about the communities we live and work in, so we mobilize our global workforce to have a positive social impact. We believe protecting our digital way of life is a privilege, and we strive to educate our communities on all aspects of cybersecurity. We invest in causes that align employee interests with community needs, and through our outreach programs, we support and uplift communities around the world.
Passion
We advance our industry.
We know that responsible
practices start with us.
Our first duty is to ensure our global workforce knows what it means to be part
of
the leading cybersecurity company in the world. This means each and every
employee
understands our Code
of Business Conduct and Ethics and their actions represent
that
standard.
Just as our employees accept the responsibilities of that code, as an employer,
we
accept our responsibility to co-create an employee-centric culture where we
integrate our values of disruption, execution, collaboration, integrity and
inclusion into every aspect of our People Strategy.
We are committed to fair and equitable pay practices
We are committed to executing a pay-for-performance compensation philosophy that
is fair and equitable across our global employee base. We conduct an annual analysis through external
independent compensation consultants and review total compensation, which includes salary, bonus and
equity.
Our fairness and equity analysis includes gender for all global employees and race and ethnicity for
employees in the U.S. As a result of these measures and corrections, our employees are paid fairly and
equitably regardless of race/ethnicity (U.S.) or gender (global).
In compliance with country-specific disclosure requirements regarding pay equity, we are proud that the
average wage differentials between male and female employees in Israel demonstrate no significant gender
pay differences in our workforce.
We conduct business in an ethically responsible way and hold our suppliers to the same high standards.
Ethical business practices are at the heart of Palo Alto Networks, and we expect all our suppliers, and their suppliers too, to comply with our Global Supplier Code of Conduct.
We are proud members of the
Responsible Business
Alliance.
The Responsible Business Alliance (RBA) is the largest industry coalition dedicated to corporate responsibility in supply chains. Members, suppliers and stakeholders collaborate to improve working and environmental conditions as well as business performance through leading standards and practices. We view membership as a foundational component of our approach to corporate responsibility.
We know that our strength comes from our inclusive and diverse community. Our commitment to diversity extends to our global supply chain too.
Our suppliers should be a reflection of the communities where we do business and the customers who find value in our products. To that end, our goal is to grow and expand our partnerships with companies throughout the value chain—particularly minority- and women-owned enterprises.
We have conducted an internal review of existing suppliers to establish a
baseline
for growth and established a working group to benchmark our supplier diversity
programs. We know that our journey to diversify our supply chain will evolve
over
time, and we are committed to making progress and increasing our outreach.
Planet
We respect our planet.
Our approach: Sustainable Operations, Value-Chain and Ecosystem
We are future-focused and, to protect our digital way of life, we must also commit to bold climate action. Actions we take must be immediate, grounded in data, with science as the guardrails to sound strategies. We believe that now is the time to set ambitious science-based targets, advocate for climate policy, and collaborate with customers, partners and suppliers to create data-driven solutions. We:
Inform, engage and inspire our employees to have a positive environmental impact
Deploy best-in-class environmental initiatives across our corporate footprint
Design and distribute our products and services with minimal environmental disruption
Collaborate with our stakeholders to encourage adoption of similar environmental practices
Making a lasting impact with a science-based climate strategy
We’ve raised the ambition of the Climate Commitments we declared in early 2021 by setting Science-Based Targets (“SBTs”) aligned to a climate scenario of 1.5° Celsius. The proposed targets have been submitted to and are under review by SBTi.
Near-term Science-based targets (2027):
- SCOPE 1 AND 2: SUSTAINABLE OPERATIONS We commit to reduce absolute Scope 1 and 2 GHG emissions by 35% by 2027, compared to fiscal 2021 baseline.
- SCOPE 3: SUSTAINABLE VALUE CHAIN — SUPPLIERS We commit that 65% of our suppliers, by total spend, will set Science Based Targets by the end of fiscal 2027.
- SCOPE 3: SUSTAINABLE VALUE CHAIN — CUSTOMERS We commit to reduce Scope 3 emissions from our customers’ use of our sold products by 40% by 2027, compared to a fiscal 2021 baseline.
Long-term strategy of Net Zero emissions:
- We intend to achieve Net Zero across our Scope 1 and 2 emissions by fiscal 2030, by reducing emissions by 90% from a fiscal 2021 base year, and mitigating any remaining emissions through carbon removal investments.
- We intend to achieve Net Zero across all Scope 1, 2 and 3 emissions by fiscal 2040 through our participation in The Climate Pledge, by reducing emissions by 90% from a fiscal 2021 base year, and mitigating any remaining emissions through carbon removal investments.
We disclose our environmental impacts, risks, and opportunities to CDP as part of our commitment to transparency.
Our participation in CDP’s climate change program provides shareholders, customers and employees with updates on our sustainability goals. In our 2022 submission, we accurately measured and transparently disclosed our global impact for fiscal year 2021. In fiscal 2021, we elevated our Climate Commitments to include operational and value-chain Science-Based Targets (SBTs) aligned with 1.5°C scenario guidance and a 100% renewable energy goal which we intend on reaching by 2030.
We give our voice to climate coalitions and policy advocacy.
Just as we partner with others to address global cybersecurity challenges, we recognize the value of joining forces to address the climate crisis. Palo Alto Networks is actively involved in the following coalitions and advocates for environmental stewardship:
Alliance of CEO Climate Leaders: The Alliance is a global community of business leaders who use their position and influence to drive bold, corporate climate action. Members set ambitious targets, actively seek to reduce emissions within their own businesses, and in doing so, inspire other companies to do the same.
We Mean Business: This global nonprofit coalition works with the world's most influential businesses to take action on climate change.
The Climate Pledge: We've made a pledge to reach net zero carbon emissions by 2040. Companies and organizations that sign the pledge agree to regular reporting on greenhouse gas emissions, carbon elimination through business change and innovations, and credible offsets to neutralize any remaining emissions to achieve net zero annual carbon emissions by 2040.
Science Based Targets initiative (SBTi): The SBTi, a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), drives ambitious climate action in the private sector by enabling companies to set science-based emissions reduction targets. The SBTi call to action is one of the We Mean Business Coalition commitments.
Our workforce serves as climate ambassadors
With a global workforce more than 12,500 strong, employees have a multiplier effect on climate impact. Through green teams active in all regions, we're able to increase awareness of eco-friendly behaviors that align with our climate commitment. From park and waterway cleanups to environmental information sessions or activities that focus on the intersection between the environment, recreation and wellbeing, green teams have a hands-on and meaningful impact around the globe.
They set out aiming for the distance from headquarters to our London office and ended up with the distance of a lap around the world! All because of our generous, caring, and determined employees.
Happy Friday! Here's a weekend activity for a good cause. 🌎 🌍 🌏 Share your pictures and tag us. We are doing all of this for one reason and one reason only. There is #NoPlanetB #EarthDay2021 #TakingAction #GreenEducation
🌱 Our first ANZ Corporate Responsibility event happened on 10th November where employees around Australia and New Zealand took to their local streets, parks, and beaches to clean up their communities. Amazing participation rate, lots of laughs…
People
We uplift our communities.
We are inspiring, teaching and empowering the next generation of cybersecurity experts and advocates.
As a cybersecurity leader, we see firsthand that the number of threats are increasing and the security landscape is getting more and more complex. We know, particularly through the COVID-19 pandemic, that youth are exposed to these threats and lack the awareness and habits to help them stay safe online. We also recognize the growing gap between the demand for cybersecurity jobs and the supply of available, diverse talent in the workforce.
We are deeply committed to addressing these needs by providing free educational resources and tools to increase digital literacy, inspire youth and prepare young professionals to consider and pursue future careers in cybersecurity, while at the same time upskilling and diversifying the workforce of today. Learn more about our programs described below.
Our Global Cybersecurity Education Fund is set up to fund cybersecurity education programs and inspire students to pursue careers in technology.
Our education programs align to our Inclusion & Diversity initiatives and aim to break through traditional boundaries of background and gender to empower the next generation of cybersecurity experts.
Cyber A.C.E.S
Cyber A.C.E.S. is our free, cybersecurity education program for kids ages 5 to 15. Cyber A.C.E.S. provides the cybersecurity basics students need to have safer online experiences and become good digital citizens. Lessons can be facilitated by anyone, regardless of their knowledge level, with each module tailored to a specific age group. Palo Alto Networks employees also volunteer to deploy lessons to nonprofits and schools.
Cybersecurity Academy
The Cybersecurity Academy prepares academic students for careers in cybersecurity and technology. It offers courseware at no cost to qualified universities, colleges and high schools, including hands-on labs, faculty training and virtual firewalls.
Girl Scouts of the USA
Our Girl Scouts of the USA partnership is designed to inspire the next generation of female cybersecurity experts! Our national cybersecurity badge program helps girls to break through traditional STEM barriers and shows them the path to exciting, challenging and well-paying jobs in tech and cybersecurity in the future.
Cyber STARS
Our Cyber STARS program addresses racial disparity in technology. It seeks to create opportunities for Black youth ages 5–25 through education, training, mentorship and economic empowerment, with a focus on organizations serving large numbers of Black and brown students.
Our culture encourages volunteerism and charitable giving.
We support community involvement and encourage employees to invest their time and monetary resources in causes that matter to them.
Employees donate to eligible nonprofits and schools, and we double their donations! From time to time, we also run special matching programs – when additional funding helps to provide relief from natural disasters and catastrophic events.
For those who give generously with their time, our “Dollars for Doers” program allows employees to have an even greater impact: each hour of volunteer time can direct US$25 to the organization!
Departments and business units enjoy volunteering as team-building, so our volunteer grant program provides a funding allowance to cover expenses for teams of eight or more who wish to make a meaningful difference.
Our corporate philanthropy aligns impact with inclusion.
At Palo Alto Networks, our philanthropic focus aims to align our giving with our core competency of cybersecurity as well as our commitment to improve the equity and inclusion of communities most under-represented and underserved. Our investments focus on organizations that provide basic needs, educational enrichment, health services and address social justice for populations aligned with our inclusion and diversity initiatives.
We work hand in hand with our employee network groups (ENGs) to invest in causes that serve to uplift Black, Latinx, Women, Veterans, LGBTQIA+ and individuals with disabilities. Our investments in educational programs are generally focused on advancing STEM skills for youth and young adults.
Palo Alto Networks is not currently accepting unsolicited requests for funding. For information about our corporate philanthropy guidelines, contact cr@paloaltonetworks.com.
We respond to unprecedented circumstances with unprecedented action.
The COVID-19 pandemic has had devastating impacts around the globe and will leave waves for years, if not decades, to come.
Recognizing that we were about to enter a period of considerable uncertainty , early in the pandemic, Palo Alto Networks established a COVID Relief Fund. Through multiple internal fundraising campaigns and initiatives, employees contributed nearly $1.7 million to the Fund, and after special matching, our company raised more than $5.8 million for colleagues and communities. This money has been used to support local and regional organizations providing pandemic relief and to set up an employee relief fund for those employees experiencing hardship as a result of COVID and other disasters.Projects Around the Globe Supporting COVID Relief
1
Portland
2
HQ Running Club SK
3
National Partnership
4
Piano
5
Minnesota
6
National Partnership
7
Costa Rica
8
Chicago
9
Reston
10
NYC
11
Western Europe
12
Amsterdam
13
Israel
14
India
15
India
16
India
17
China
18
Singapore
19
Australia
Regional beneficiaries
Workforce fund
Environmental, Social & Governance
performance and reporting
Above, we’ve summarized our Corporate Responsibility pillars of Passion, Planet and People. We know that stakeholders want to understand how Palo Alto Networks is performing against standard environmental, social and governance (ESG) metrics.
We’re pleased to release our FY22 Environmental, Social and Governance Report summarizing our ESG strategies and achievements during fiscal 2022.
The FY22 ESG Report is a demonstration of our commitment to ongoing transparency and engagement with our stakeholders on these important topics. The Report is aligned to frameworks established by the Sustainability Accounting Standards Board (SASB) and the World Economic Forum’s Stakeholder Capitalism Metrics. We’re pleased with our progress addressing key issues such as climate action, human capital development, inclusion and diversity and corporate behavior. We welcome your input.
Proud to earn a place on CDP’s 2022 A List Climate CDP has included Palo Alto Networks among the “A List 2022 Climate”. Fewer than 2% of nearly 15,000 companies scored in 2022 were awarded a A ratings, demonstrating our leadership in environmental transparency and performance on climate change.
Recognized by Sustainalytics as “Industry Top Rated” — again! For the second year in a row, Sustainalytics, a Morningstar company, has recognized Palo Alto Networks as “Industry Top Rated” for 2023 based on our overall environmental, social and governance (ESG) practices. Palo Alto Networks’ ESG Risk Rating places it in the top 5th percentile in the Software & Services industry, and the top 4th in the sub-industry of Enterprise and Infrastructure Software, assessed by Sustainalytics.
Copyright ©2023 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.
#1 Environmental and Social QualityScore by ISS Institutional Shareholder Services (ISS), a leading provider of corporate governance and responsible investment solutions, has issued* a QualityScore of 1 for Palo Alto Networks related to its disclosures of Environmental and Social business practices. A Quality Score of 1 represents the highest rating measured by ISS and reflects the company’s commitment to transparency across more than 200 factors including management of environmental risks and opportunities, carbon and climate, human rights, health & safety and stakeholders & society.
*QualityScore issued January 2022.
Achieved Prime ESG rating by ISS Institutional Shareholder Services (ISS), a leading provider of corporate governance and responsible investment solutions, has issued* a “Prime” rating for Palo Alto Networks overall environmental, social and governance (ESG) performance. “Prime” status is granted to industry leaders who fulfill demanding absolute performance expectations and are thus well-positioned to manage critical ESG risks.
*Issued May 2022.
Achieved Triple B ESG rating by MSCI As of 2022, Palo Alto Networks received an MSCI ESG Rating of BBB. MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies on a scale of AAA (leader) to CCC (laggard), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers.
The use by Palo Alto Networks of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Palo Alto Networks by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
Ranked Among Top Companies for Families & Communities JUST Capital has recognized Palo Alto Networks, for the second year in a row, for our efforts to support families and communities. We are honored for the recognition and remain committed to supporting the health of our employees, their families, and our communities as a critical element of our comprehensive Environmental, Social and Governance strategy.
We’re proud to be among the 2022 JUST 100 At Palo Alto Networks, how we operate has always been important as it’s a direct extension of our values. Being named in the 2022 Ranking of America’s Most JUST Companies is a significant milestone that represents our progress and execution of our environmental, social and governance (ESG) strategy.
We are actively building an inclusive and diverse workforce
We work every day to create an environment where our employees feel safer and more
secure in
being their authentic selves than the day before. Our inclusion and diversity focus
areas
have direct intersectionality with our corporate responsibility pillars.
We are committed to expanding our inclusion initiatives to create a fair playing field
for
all to thrive—where our workforce better reflects the world in which we live. It is not
only
the right thing to do but also vital to the continued growth and success of our company.
Corporate responsibility in action
Being a good corporate citizen is about more than making bold, bumper sticker statements. It's about making time and taking action too. Here's a glimpse of what our leaders and employees are saying and doing every day.
