Commercial, GHG Emissions - April 30, 2021
Salesforce Adds Emissions Reduction Requirement to Supplier Contracts
By adding a Sustainability Exhibit to supplier contracts, Salesforce now requires its suppliers to set science-based emissions targets by 2024. As it works with suppliers to plan emissions reduction, the company will decrease its supply chain’s carbon footprint.
This initiative builds on Salesforce’s success in achieving its own net-zero operations target, including 100% carbon-neutral products. The company will also switch to 100% renewable energy by the end of 2021.
Salesforce’s Sustainability Exhibit specifies that suppliers will submit their goals to the Science Based Targets Initiative (SBTi), will commit to providing an Emissions Report, and will pay a Climate Remediation Fee to purchase offsets or fund tree planting for any unresolved climate breach determined by SFDC (Salesforce's corporate entity).
“With the Sustainability Exhibit, we are asking suppliers to join us on this journey to protect our planet and prioritize sustainability by committing to the principles laid out in our Sustainability Exhibit in our next agreement, including setting science-based targets to reduce greenhouse gas emissions,” said Craig Cuffie, Salesforce EVP & Chief Procurement Officer, and Patrick Flynn, Vice President of Sustainability, in a letter to their suppliers.
Marriott International, as one of Salesforces’ key suppliers, supports this new standard.
“At Marriott International, we understand the value of data in decision making – and that’s why we’ve been working with Salesforce to share sustainability data, including individual hotel carbon footprint,” said Denise Naguib, Vice President of Sustainability & Supplier Diversity at Marriott International. “Climate action will take partnerships across the supply chain, and we all accomplish more on our climate efforts when our customers and suppliers strive to do better.”
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