Xero sets climate targets to work towards a net-zero future

Wellington — 15 November, 2022 — Xero, the global small business platform, today announced emissions reduction targets to 2030, as it takes the next step on its journey towards net-zero* emissions by 2050.

Building on its existing carbon reduction program called ‘Net Zero @ Xero’, Xero has set near term targets to reduce Scope 1, 2 and 3 emissions that align with the recommendations of the Science Based Targets initiative (SBTi). These targets support the Paris Agreement goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels.

Xero has set the following targets:

• 42% reduction in Scope 1 and 2 emissions from FY20 by FY30
• 17% reduction in Scope 3 emissions from FY20 by FY30
• Net-zero* emissions no later than FY50

Xero will work towards achieving these targets by focusing on the areas of increased renewable energy uptake, being more strategic about business travel, and switching to more sustainable catering wherever possible.

Xero CEO Steve Vamos said: “The climate crisis is affecting all of us, and every business has a role to play in supporting the transition to a net-zero economy. We’re proud to be on a carbon reduction journey, and setting these targets provides a clear direction for us to reduce our greenhouse gas emissions, while building on our current initiatives.

“The targets we are committing to have been designed with Xero’s growth ambitions in mind, while still enabling us to make a concerted effort to reduce our emissions.”

These targets are part of a roadmap that Xero has developed in line with the Task Force for Climate-related Financial Disclosures (TCFD) framework, to support delivery of Xero’s climate strategy. In line with this roadmap, Xero aims to report its performance against these targets in the financial year ending 31 March 2023 (FY23).

Xero has offset 100 percent of its carbon emissions since FY19, and has been certified carbon neutral by the Australian Government’s Climate Active program since FY20, and is committed to doing so each year in the future.

For more information about Xero’s approach to sustainability, including the Net Zero @ Xero program, please visit xero.com/sustainability/environment.

ENDS

Note to editor

*Emissions reduced to a point where fewer than 10 percent of total emissions require abatement through offsets as defined by the Science Based Targets initiative Net-Zero guidance.

FY - Xero’s financial year ended 31 March

Media Contact

Janna Wilkinson | +64 (0)22 474 4441 | janna.wilkinson@xero.com

About Xero

Xero is a global small business platform with 3.5 million subscribers which includes a core accounting solution, payroll, workforce management, expenses and projects. Xero also has an extensive ecosystem of connected apps and connections to banks and other financial institutions helping small businesses access a range of solutions from within Xero’s open platform to help them run their business and manage their finances. For three consecutive years (2020-2022) Xero was included in the Bloomberg Gender-Equality Index. In 2021, Xero was included in the Dow Jones Sustainability Index (DJSI), powered by the S&P Global Corporate Sustainability Assessment. Xero is a FIFA Women’s Football partner under FIFA’s new commercial structure.