CASE STUDY
Okta Partners with RyeStrategy to Accelerate Scope 3 Climate Action with Supply Chain Decarbonization Program
Okta Supplier, Launch, Embraces Sustainability Initiative
Okta®, the World’s Identity Company™, is the leading independent partner for identity management. Okta currently employs approximately 6,000 people and is deeply committed to building a safely connected world where everyone can belong and thrive. Through philanthropic programs like Okta’s Tech for Good and a holistic approach to Social and Environmental Responsibility, Okta maximizes benefits to society, the environment, and all stakeholders.
“We have the opportunity to engage our vendors and drive greater environmental impact by asking them to join us in reporting and reducing emissions.”
Sophia Gluck
Senior Manager, ESG & Sustainability Lead, Okta
Okta’s Climate Targets
One of the key areas where Okta has committed to positive environmental impact is through its ambitious decarbonization commitments. In pursuit of an environmentally sustainable future, Okta has committed to two primary climate goals:
100% renewable electricity to match electricity consumption from global offices, the remote workforce, and third-party cloud service providers.
Set science-based targets (SBTs) to:
Reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 67% by FY30 compared to the FY20 baseline.
Reduce absolute Scope 3 GHG emissions from business travel and employee commuting by 42% by FY30 compared to the FY20 baseline.
Ensure that 65% of Okta’s suppliers (by spend) have science-based targets by FY27.
In addition to focusing on carbon emissions derived from its direct operations, Okta is committed to reducing Scope 3 emissions through robust supplier engagement initiatives. "99% of Okta’s greenhouse gas emissions come from the vendors in our value chain," explains Sophia Gluck, ESG & Sustainability Lead at Okta. "We have the opportunity to engage our vendors and drive greater environmental impact by asking them to join us in reporting and reducing emissions."
Okta Invites Suppliers to Calculate Carbon Footprint and Set SBTs
As part of this supply chain decarbonization initiative, Okta launched a Supplier Sustainability Request in 2022, encouraging its suppliers to calculate their carbon footprint and set science-based targets through the Science-Based Targets initiative (SBTi). This proactive approach fosters transparency in the supply chain, empowering suppliers to adopt best practices in emissions reduction. By providing foundational sustainability education carbon accounting guidance, Okta aims to create a collaborative ecosystem that drives measurable change, ensuring its climate commitment resonates throughout its entire network. Through these efforts, Okta is supporting its suppliers on their own sustainability journeys.
Less than one year into launching phase one of the supplier engagement program, Okta reported in the FY2023 ESG Fact Sheet that as of FY2023, 13% of Okta suppliers had set validated SBTs toward the FY2027 target of 65%.
OKTA SUPPLIER
“When we first received the request from Okta, we didn’t think we had the staff to do it. We also didn’t understand it. We heard the term 'science-based target initiative’, and we said, ‘what does that mean?’”
Ruth Voorhies, CFO, Launch
Gathering Feedback From Suppliers
One of the early trends the Okta team observed was that larger vendors with established carbon accounting procedures in place fulfilled Okta’s request at a higher rate due to readily available carbon emissions data. However, a higher volume of vendors without established carbon accounting processes, especially small to medium-sized companies, were non-responsive to the request. "We spoke with a number of suppliers to understand what support Okta could provide to support them with setting science-based targets. The most common response we heard from suppliers was that the request seemed difficult and time-consuming because they would be starting from scratch. They simply didn’t have an internal project owner with the relevant experience to fulfill Okta’s request," explained Sophia.
Through these conversations and an analysis of supplier participation, Okta’s sustainability team determined that a large group of their suppliers would need specialized, hands-on support in order to complete the request to set science based targets. Sophia’s team decided to enter a partnership with RyeStrategy, a boutique firm specializing in helping small and medium-sized businesses navigate carbon footprint and climate disclosure requests. This partnership offered the flexibility to scale up or down based on performance velocity, budget, and key learnings. Given RyeStrategy’s proven success with similar technology company clients, including Salesforce and Atlassian, Okta felt confident that RyeStrategy would deliver the results they were seeking.
Partnering with RyeStrategy to Accelerate Supplier Engagement
In 2023, Okta partnered with RyeStrategy to launch a supply chain decarbonization program focused on educating, engaging, and supporting suppliers through Okta’s Supplier Sustainability Request. While the program was inclusive of all Okta suppliers, its primary beneficiaries were small to medium-sized companies navigating their first carbon footprint or those without in-house sustainability expertise. Okta suppliers were offered various support services delivered by RyeStrategy’s sustainability managers, including professional advisory, educational webinars, one-on-one meetings, and discounts on carbon management services and software.
The RyeStrategy team began working with Okta suppliers through group training events, one-on-one advisory, and full-service carbon management services. With hands-on support from RyeStrategy and Okta, many suppliers made progress toward calculating their carbon emissions and setting science-based targets, including long-time Okta vendor, Launch.
Read on for a supplier’s point of view.
OKTA SUPPLIER STORY
Launch Sets Science-Based Targets and Embraces Decarbonization
Based in San Francisco, Launch provides full-service, strategic event management and production services for tech, biotech, and fintech companies. With a hybrid workforce of 40+ employees managing 35 in-person multi-day events across eight countries annually, Okta’s Sustainability Request initially seemed nearly impossible for the lean team at Launch.
Ruth Voorhies, CFO at Launch, recalled, "When we first received the request from Okta, we didn’t think we had the staff to do it. We also didn’t understand it. We heard the term 'science-based target initiative,' and we said, ‘what does that mean?’" While Okta’s request to set science-based targets felt overwhelming, Ruth and the leadership team at Launch were aligned on doing their part to support Okta’s sustainability goals. Although the company considered itself environmentally aware, quantifying their efforts and setting tangible goals became much more feasible through Okta’s request.
“With our new awareness and education around climate action…We’re building a culture around sustainability at Launch, and we’re grateful to Okta and RyeStrategy for providing the resources that made it simple to take climate action.”
Robin Laybourn
People Operations Director, Launch
Choosing RyeStrategy as a Trusted Partner
In July 2023, Okta introduced RyeStrategy to suppliers as its trusted supplier decarbonization partner, inviting suppliers to take advantage of free and discounted resources to help them navigate the request. Initially uncertain about their ability to fulfill the request, Launch scheduled a meeting with RyeStrategy. "We took the initial call with RyeStrategy to understand whether measuring our 2022 carbon emissions was even possible based on the data we had available," explained Robin Laybourn, People Operations Director at Launch.
"Cooper at RyeStrategy communicated Okta’s supplier request in a way we understood and reassured us they could work with our data as it was. After talking with Cooper, we decided we were ready to move forward. We also suspected that our other large tech clients might make similar requests. The timing felt right, and Okta’s trust in RyeStrategy gave us confidence they would be a great partner."
Weeks later, RyeStrategy met with data owners and key stakeholders at Launch for a formal kickoff. Phase one focused on completing a comprehensive greenhouse gas inventory and carbon footprint calculation. Robin described the experience: "Our Sustainability Manager, Hannah, was fantastic. She converted our spend and operations data into the necessary format to complete our greenhouse gas inventory. The team’s flexibility and patience made the process painless."
“Cooper at RyeStrategy communicated Okta’s supplier request in a way we understood... We decided we were ready to move forward. The timing felt right, and Okta’s trust in RyeStrategy gave us confidence they would be a great partner.”
Robin Laybourn, People Operations Director, Launch
Launch Sets SBTs, Fulfilling Okta’s Request
Over the next six weeks, RyeStrategy worked with Launch to collect and import all required data into the RyeStrategy platform, including utilities, commuting data, air travel, and all spend data for the reporting year, including capital assets. Ruth recalls the relief she felt once the project was underway: "I was worried because I didn’t know how to collect and calculate our emissions data, but the good news is that I didn’t have to. RyeStrategy took care of everything. I expected that their questions would be complicated, but they weren’t. They were simple."
Equipped with a full Scope 1, 2, and 3 emissions report, RyeStrategy established accurate science-based targets for Launch using 2022 as the base year, officially fulfilling Okta’s supplier request. Approved by SBTi and published on the Target Dashboard, “Launch commits to reduce scope 1 and scope 2 GHG emissions 42% by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions.”
“I was worried because I didn’t know how to collect and calculate our emissions data, but the good news is that I didn’t have to. RyeStrategy took care of everything.”
Ruth Voorhies, CFO, Launch
With RyeStrategy’s support, Launch was able to fulfill Okta’s Supplier Sustainability Request accurately and on time, cementing its position as a committed and responsive vendor. Over the course of the project, Launch began seeing science-based targets as more than just a one-off project. "The more we discussed our carbon emissions internally, the more we realized that committing to reducing our emissions would help Launch across the board. Our sustainability initiative became part of a long-term strategy to strengthen our position with other clients and our overall brand." Beyond strengthening their relationship with Okta, they took a proactive approach, encouraging employees to integrate sustainability into their work.
Engaging Employees on Decarbonization
With Launch’s carbon footprint calculated and reduction targets established, the next step was to implement RyeStrategy’s recommended mitigation strategies to drive decarbonization results.
In December, the leadership team announced the carbon footprint data to all employees, inviting them to get involved in Launch’s carbon reduction commitment.
Robin reflected on the positive response: "Our employees were excited to hear that Launch had set goals to reduce carbon emissions. They seemed proud to work for a company committed to helping the planet, and they immediately started brainstorming about how they could contribute."
“Our employees were excited to hear that Launch had set goals to reduce carbon emissions. They seemed proud to work for a company committed to helping the planet, and they immediately started brainstorming about how they could contribute.”
Robin Laybourn, People Operations Director, Launch
A few weeks later, RyeStrategy hosted a virtual lunch-and-learn session for Launch employees to raise awareness and provide foundational education on GHG and carbon accounting. The session encouraged employees to take action and share their ideas. Robin noted, "With our new awareness and education around climate action, employees from all departments now feel empowered to get involved, and they’re driving real progress. We’re building a culture around sustainability at Launch, and we’re grateful to Okta and RyeStrategy for providing the resources that made it simple to take climate action."
RyeStrategy continues to support Launch as a strategic sustainability partner, calculating annual carbon emissions, fulfilling reporting requests, and guiding them through mitigation strategies to reduce emissions throughout the company. Launch hopes to achieve Level 1 of RyeStrategy’s Emissions Reduction Program in 2025, earning a badge that they can proudly display to represent their commitment to climate action.
Read more about Okta’s sustainability efforts at Okta Responsibility.
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