Latest Podcast : Mastercard's master plan for sustainable consumption, Ep #87

Inside Atlassian’s Sustainability Playbook, Ep #80

Explore the intricacies of setting up a corporate sustainability program with insights from Atlassian, a technology company deeply committed to addressing climate change. Atlassian's Chief Sustainability Officer, Jess Hyman, shares a step-by-step walkthrough of their sustainability journey, covering key aspects like initiating the program, gaining internal support, collaborating with partners, and implementing reporting protocols for emissions reduction across all scopes. Whether you're a corporate sustainability leader or just interested in climate change initiatives, this episode provides valuable insights into the practical steps companies take to combat environmental challenges.

Date: 01/30/2024
Guest:

Jess Hyman

About episode

We all know that companies around the world are working to reduce their emissions and, hopefully, achieve net zero. But what does it take to set up a sustainability program? What are the steps in the process? What are the considerations along the way? And who are the partners one might work with? 

Most of this work happens behind closed doors, but sharing insights from corporate sustainability journeys can accelerate progress.  

That’s why Atlassian, a technology company with a real commitment to addressing climate change, decided to open up their own process and share what they learned in a really clear and straightforward playbook.

To learn more, I sat down with Atlassian Chief Sustainability Officer, Jess Hyman. Full disclosure: Jess is a member of NationSwell, the executive membership network and advisory, where I get to support impact and sustainability leaders like Jess. In today’s conversation, we walk step-by-step through Atlassian’s sustainability journey – from getting started, building internal buy-in, finding the right vendors, partners, and reporting protocols for reducing Scope 1, 2, and 3 emissions, to reporting on progress as well as setbacks, and much more. 

Whether or not you’re a corporate sustainability leader, this episode will help you understand what companies around the world are actually doing to address climate change. Enjoy.

In today’s episode, we cover:

  • [3:03] Jess’ background & path to sustainability work
  • [4:21] Jess’ work at Business for Social Responsibility (BSR) & what she learned
  • [6:09] What is Atlassian & their core products
  • [6:44] Why Atlassian decided to share their sustainability journey
  • [8:34] The process of going to leadership to develop the report
  • [9:57] What is a materiality assessment & learnings
  • [11:57] Atlassian’s sustainability goals, what it took to develop & share them
  • [13:55] Sustaining internal collaboration
  • [16:15] Atlassian’s goal to reach net zero by 2040
  • [18:15] Scope 1, 2, and 3 emissions & how they show up for Atlassian
  • [19:30] The Science Based Targets initiative (SBTi) approval process
  • [22:00] Learnings around decarbonizing buildings
  • [23:40] What are Virtual Power Purchase Agreements (VPPAs) 
  • [25:51] Engaging suppliers to reduce emissions
  • [28:37] Transparency, accountability & reporting
  • [30:21] Addressing Work-From-Home (WFH) electricity
  • [31:49] What is the Sustainable Aviation Buyers Alliance (SABA)
  • [34:24] What are residual emissions & how is Atlassian dealing with them
  • [36:00] The quality of offsets
  • [37:06] Reporting protocols & learnings
  • [38:56] Building executive buy-in for uncomfortable levels of ambition

Jess’ background & path to sustainability work

Jess’ introduction to the sustainability space began with her landing her first internship at the UN University in Bonn, Germany, right after college. Being at the UN provided her with a dream scenario where she was exposed to various environmental issues. Notably, she worked on the conference on environmental change and migration organized by Former Secretary-General Ban Ki-Moon, an experience that deepened her understanding of the connection between people and the planet, particularly in the context of climate change’s impact on society and geopolitics.

Her career took another positive turn when she joined BSR early on, where she enjoyed a long tenure. Initially working on a grant project focusing on supply chain risk in Central America, Jess was exposed to diverse projects like the human rights working group and a women’s empowerment strategy. This exposure allowed her to witness the varied ways sustainability manifested across different industries and regions.

Why Atlassian decided to share their sustainability journey

Jess emphasizes that Atlassian believes in the responsibility of companies to take action in addressing climate change for the well-being of people and the planet. The motivation behind sharing Atlassian’s sustainability journey is rooted in the company’s mission to unleash the potential of every team. Instead of solely focusing on Atlassian’s efforts, there is a broader interest in understanding the influence the company can have and encouraging collaboration among a group of companies to collectively decarbonize.

According to Jess, the belief is that addressing climate change seems daunting when approached individually, but it becomes achievable when tackled collectively. The recently released version two of the “planet guide” serves the purpose of sharing Atlassian’s sustainability journey, spanning from the initiation of the program in 2016 to the establishment of goals and the transformation of operations. The guide not only details the company’s experiences but also emphasizes an ongoing commitment to updates, acknowledging that the sustainability journey is a continuous process marked by progress over perfection.

Jess acknowledges that Atlassian doesn’t possess all the answers, and their approach may not align with every company’s strategy. However, the intention is to be transparent, sharing the journey along with real-world examples in the hope that other companies can draw inspiration or gain confidence in embarking on their sustainability initiatives.

Atlassian’s sustainability goals, what it took to develop & share them

In discussing Atlassian’s sustainability goals, Jess mentions that the 100% renewable energy (RE100) goal was relatively more straightforward to establish, which is why they chose to start with it. The decision was based on their familiarity with their emissions profile, obtained through compliance work in the UK. With a clear understanding of their electricity use and emissions, they could calculate and achieve the RE100 goal by purchasing energy attribute certificates. While acknowledging that alternative methods exist, there was a sense of clarity about the achievable path, making it a commitment they could confidently make.

Coincidentally, during UN Climate Week a couple of months after committing to the RE100 goal, the UN Secretary-General called for companies to set science-based targets. Atlassian, buoyed by the momentum from their recent commitment, actively responded to this call to action. Developing and sharing science-based targets posed additional challenges, particularly as it involved Scope 3 emissions, where companies have less control. At the time of setting the goal, the approach to achieving it was less evident. Despite uncertainties, the team navigated through the knowns and unknowns, maintaining trust in leadership buy-in and readiness to address any obstacles encountered on the path toward their sustainability objectives.

Sustaining internal collaboration

Jess emphasizes that collaboration is integral at every stage of their sustainability initiatives, from setting goals to their execution. It’s an ongoing process rather than a one-time effort. While establishing their Science-Based targets, internal collaboration was essential, but it remains crucial throughout the journey. Jess highlights that relying solely on a sustainability person or team is insufficient; leadership commitment is paramount. Leaders set the level of ambition and hold the company accountable for progress, clearing pathways for work to happen during challenging moments.

Jess notes the importance of regular engagement with leaders, citing her quarterly meetings with founders like Mike. These meetings focus on addressing challenges and removing roadblocks, allowing the sustainability work to progress. The necessity of collaboration extends beyond senior leaders to include the teams on the ground actively driving progress. Multiple teams, such as finance, legal, and travel, contribute to Atlassian’s sustainability efforts. Jess underscores the importance of clear priorities and tough conversations, acknowledging that sustainability work involves navigating through challenges, conflicting priorities, and goal misalignments. She emphasizes that the hard work lies in confronting friction and making trade-offs together to balance competing priorities and ensure progress.

Building executive buy-in for uncomfortable levels of ambition

Jess has found the most effective approach is drawing parallels between these goals and other objectives within Atlassian. Highlighting the company’s history of setting and achieving ambitious goals by leveraging strategy, prioritization, and teamwork, Jess emphasizes that Atlassian is accustomed to tackling challenges even without having all the answers initially. By demonstrating the company’s capability and adaptability, she has successfully framed sustainability goals as just another facet of Atlassian’s commitment to ambitious objectives.

Furthermore, Jess stresses the importance of providing data-driven justifications for the sustainability goals. By presenting the reasoning behind the goals and supporting them with data, she has been able to energize the team. A significant lesson learned from this process is the recognition that, in the realm of sustainability, the conversation often revolves around both mitigating risk and capitalizing on opportunities. However, Jess emphasizes that the key to gaining executive excitement lies more in emphasizing the opportunity side. Business leaders, she notes, are more inclined to get enthusiastic about the potential gains and future impact rather than the risks involved. Thus, framing the ambitious goals in terms of opportunities and showcasing their potential benefits has proven to be a successful strategy in generating enthusiasm among executives.

Resources Mentioned

Connect with Jess Hyman

  • Connect with Jess on LinkedIn

Connect with Jason Rissman

Keep up with Invested In Climate

Have feedback or ideas for future episodes, events, or partnerships?

Get in touch!