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 opponents, that technique is placing strain 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 12 months, reaching 164,346 metric tons of carbon dioxide equal within the fiscal 12 months 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 objectives but, however it’s reviewing them on the best way to setting new five-year commitments, Atlassian Chief Sustainability Officer Jessica Hyman advised me final week throughout our fireplace chat at Trellis Impression 25.
“We’ve to grasp that progress will not be linear,” she mentioned, in addressing her firm’s gradual 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 proper relationships
Atlassian fell wanting a FY2025 objective to get 69 p.c of suppliers to set science-based emissions discount objectives; 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 mentioned.
Atlassian has a longstanding relationship with Amazon Net Companies, and it disclosed a multi-year contract with Google’s cloud providers division in August. The corporate’s local weather objectives are built-in into procurement negotiations as a regular enterprise apply.
“While you transfer method up the chain of your prime suppliers, the parents in your organization that handle these relationships are going to be sitting near the chief group,” she mentioned. “We’ve spent years constructing these relationships and understanding who the influencers are.”
Hyman stories 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, threat 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 common counsel simply in addition to I can for the individuals group chief,” she mentioned.
Hyman advises sustainability professionals to spend extra time understanding how their firm’s digital footprint shall be affected by company AI initiatives. Atlassian skilled an 83 p.c enhance over the previous 12 months in clients asking about its emissions targets, largely due to its AI methods.
“I feel now we have to personal that that is new territory for all of us,” she mentioned. “There’s lots of humility that you could carry to the desk by saying, ‘Hey, I wish to perceive how AI and this transformation goes to suit into my net-zero objective.’ Get to your engineering groups, get to your heads of AI and get to your hyperscalers, and simply ask the questions and begin studying.”