Like different enterprise software program corporations, Atlassian is spending billions of {dollars} to beef up the usage of synthetic intelligence in its core merchandise. And as is the case for its friends and rivals, that technique is placing stress on its net-zero agenda.
Atlassian, which counts 80 p.c of the Fortune 500 — together with Ford and Pfizer — as clients, sells software program that facilitates office collaboration.
Its greenhouse gasoline emissions has elevated 85 p.c since its 2019 baseline yr, reaching 164,346 metric tons of carbon dioxide equal within the fiscal yr ended June 30, 2024.
Throughout the identical time, Atlassian’s income greater than tripled, to $4.4 billion, which halved the depth of its carbon footprint on a per-revenue foundation. Depth is a measure that some fast-growing corporations, together with Salesforce, are utilizing for validated emissions discount targets associated to their provide chain, which falls into the Scope 3 class.
Atlassian hasn’t adjusted its targets but, however it’s reviewing them on the way in which to setting new five-year commitments, Atlassian Chief Sustainability Officer Jessica Hyman advised me final week throughout our fireplace chat at Trellis Influence 25.
“Now we have to know that progress just isn’t linear,” she stated, in addressing her firm’s sluggish progress. “We have to take this not as a defeat, however relatively to say, ‘Now I do know the place we have to double down.’ ”
The suitable relationships
Atlassian fell wanting a FY2025 aim to get 69 p.c of suppliers to set science-based emissions discount targets; that quantity was 12.3 p.c as of the FY2024 replace. Its path ahead will lean on nearer partnerships with key suppliers, particularly the hyperscalers it makes use of to host its software program, Hyman stated.
Atlassian has a longstanding relationship with Amazon Net Providers, and it disclosed a multi-year contract with Google’s cloud providers division in August. The corporate’s local weather targets are built-in into procurement negotiations as a typical enterprise observe.
“While you transfer method up the chain of your prime suppliers, the oldsters in your organization that handle these relationships are going to be sitting near the manager group,” she stated. “We’ve spent years constructing these relationships and figuring out who the influencers are.”
Hyman studies to Atlassian’s authorized group, which ladders as much as the chief monetary officer. The corporate has six local weather working teams that embrace representatives from sustainability, finance, procurement, danger and compliance, public coverage, journey, cloud monetary operations, office expertise and actual property. So it’s important for enterprise leaders to “communicate the language” of each different group. “I’ve to have the ability to take our net-zero technique and translate it for a chief income officer simply in addition to I can for our basic counsel simply in addition to I can for the folks group chief,” she stated.
Hyman advises sustainability professionals to spend extra time understanding how their firm’s digital footprint can be affected by company AI initiatives. Atlassian skilled an 83 p.c improve over the previous yr in clients asking about its emissions targets, largely due to its AI methods.
“I feel we now have to personal that that is new territory for all of us,” she stated. “There’s lots of humility you could deliver to the desk by saying, ‘Hey, I need to perceive how AI and this transformation goes to suit into my net-zero aim.’ Get to your engineering groups, get to your heads of AI and get to your hyperscalers, and simply ask the questions and begin studying.”
