With more than 20,000 mission-driven crew members working around the world, we are committed to reducing our global carbon footprint and managing climate-related risks to our business operations.
Vanguard’s corporate sustainability strategy seeks to reduce our firm’s own climate impact, pursue sustainable business operations, and engage our crew.
In early 2020, we established a pair of goals to curb emissions and reduce the global carbon footprint of our operations.
Climate-related goals for our global operations
Notes: Vanguard’s greenhouse gas (GHG) emissions reporting follows the Greenhouse Gas Protocol corporate standard. The company has a goal of reaching carbon neutrality throughout its global operations by 2025. We aim to achieve this goal by reducing Scopes 1, 2, and select Scope 3 GHG emissions (not including Vanguard Fund investments) at least 20% as compared to 2019 by assessing annual GHG emissions as well as offsetting remaining emissions in those categories through the use of REC and carbon offset purchases. Using this criteria, we determined that Vanguard reached 84% carbon neutrality in 2023. Vanguard’s Scopes 1, 2, and 3 GHG emissions for 2021, 2022, and 2023 have been assured by a third-party provider. This limited assurance is based on the International Standard on Assurance Engagements ISAE 3000 (revised).
In 2023, we continued to use 100% renewable electricity globally in owned and leased properties where Vanguard has operational control, an outcome we first achieved in 2021.
Where possible, our buildings are powered by on-site renewable electricity, direct renewable electricity from the utility supplier, or purchasing Green-e certified renewable energy certificates (RECs) by a third-party provider.
We offset our remaining footprint with high-impact carbon offset projects that increase economic development.
We have adopted four additional reduction targets for 2025, based on 2019 baseline levels:
Reduce carbon emissions by 20%
Measured in metric tons of carbon dioxide equivalent (tCO2e) per full-time equivalent (FTE)
Reduce electricity usage by 5%
Measured in kilowatt-hours per square foot of space under operational control
Reduce water usage by 20%
Measured in gallons per square foot of space under operational control
Divert 80% of waste from landfills
We take a thorough, pragmatic approach to managing our corporate resources.
Green building criteria and certifications are integral to our corporate building design standards. Twenty-two buildings (or 37%) of Vanguard’s total square footage across our global locations were either LEED, BREEAM, or WELL certified.1 Of the 22 buildings, four were new certifications for Vanguard in 2023. For example, our Manchester, U.K., leased office space is BREEAM ‘Excellent’ certified, with all electricity supplied from renewable sources, electric car charging ports, LG7-compliant LED lighting with automatic sensors, and photovoltaic panels that generate on-site electricity.
As part of a multi-year plan to update our lighting, we upgraded the exterior lighting for our Scottsdale, Arizona, campus to LED in 2023. This resulted in an estimated savings of more than 313 megawatt-hours (MWh) of electricity annually.
Additionally, we are a member of the U.S. Environmental Protection Agency’s Green Power Partnership, which seeks to increase voluntary use of electricity produced from renewable energy resources.
In 2023, Vanguard purchased over 94,000 MWh of renewable energy, which resulted in a reduction of more than 30,000 tCO2e. Additionally, we supported three carbon-offset projects in 2023 that offset 41,472 tCO2e. These projects represent both U.S. and global efforts with multiple benefits.
For more information on the methodology behind our carbon neutrality goals and the progress toward those goals described on this page, please view the Greenhouse Gas Emissions and Goals Methodology. The Greenhouse Gas Emissions and Goals Methodology also includes additional information regarding the carbon offset projects purchased to achieve those reductions, as well as information on Vanguard ESG funds actively managed by third-party advisors with net zero goals and information on Vanguard ESG index funds.
We offer programs for our crew to encourage their use of low-carbon transportation, including about 122 free electric vehicle charging ports adjacent to our buildings, shuttles between campuses and to and from public transit, and pre-tax deductions for public transit costs. Additionally, we have begun to add electric vehicles to our maintenance fleet.
In 2022, we introduced a program offering U.S. crew an incentive toward the lease or purchase of a hybrid or electric vehicle. As of December 31, 2023, more than 1,180 crew had taken advantage of this incentive.
As a result of the adoption of electric vehicles, Vanguard reduced approximately 463 tCO2e from commuting emissions and contributed to saving approximately 81,400 gallons of gasoline, as estimated using data provided by ChargePoint, a third-party charging provider.
Globally, crew participate in various educational events such as our speaker series, Earth Day activities, and crew-led Green Teams throughout the year.
Disclosure of Scopes 1, 2, and 3 greenhouse gas emissions
Assurance
Vanguard’s Scopes 1, 2, and 3 GHG emissions for 2021, 2022, and 2023 have been assured by a third-party provider. This limited assurance is based on the International Standard on Assurance Engagements ISAE 3000 (revised).
Scopes 1, 2, and 3 are as defined by the Greenhouse Gas Protocol standard. Scope 1 refers to all direct greenhouse gas (GHG) emissions. Scope 2 refers to indirect GHG emissions from consumption of purchased electricity, heat, or steam. Scope 3 refers to other indirect emissions not covered in Scope 2 that occur in a company’s value chain, including both upstream and downstream emissions.
By 2025, we intend to avoid, reduce, or offset all Scopes 1 and 2 emissions, as well as emissions from a number of Scope 3 categories, which include:
Scope 3 data do not include Scope 3 categories 3.1: Purchased goods and services, and 3.2: Capital goods or Vanguard fund investments.
1 LEED (Leadership in Energy and Environmental Design) is administered by the U.S. Green Building Council. BREEAM (Building Research Establishment Environmental Assessment Methodology) is administered by BRE Global, a subsidiary of the U.K.-based BRE Group. WELL is administered by the International Well Building Institute (IWBI).