We consider climate change to be a material risk to many companies and their shareholders' long-term financial success. We are committed to minimizing the environmental impact of our operations.
Our approach to addressing climate change includes assessing how we operate as a company and an employer. With more than 18,000 mission-driven crew members working around the world, we are committed to reducing our global carbon footprint and managing climate-related risks to our operations.
We take a thorough, pragmatic approach to managing our resources. In early 2020, we established a pair of goals to curb emissions and reduce our global carbon footprint.
We are taking multiple approaches to reach our 100% renewable energy goal. Where possible, our buildings are powered by renewable energy provided directly from the utility supplier. Where direct renewable energy from the utility supplier is unavailable, our approach includes purchasing renewable energy certificates.
Reduce emissions by 20% per full-time employee
Reduce electricity consumption by 5% per square foot
Reduce water usage by 20% per square foot
Divert 80% of waste from landfills
*Established in September 2021 based on 2019 baseline levels.
We intend to avoid, reduce, or offset all Scope 1 and Scope 2 emissions, as well as emissions from Scope 3 categories,1 including purchased goods and services,2 fuel- and energy-related activities, waste generated in operations, business travel, employee commuting, and upstream leased assets.3
1 Categories are those as defined by the Greenhouse Gas Protocol. The Greenhouse Gas Protocol builds on a 20-year partnership between the World Resources Institute and the World Business Council for Sustainable Development to work with governments, industry associations, nongovernmental organizations, businesses, and other organizations to develop emissions reduction programs.
2 Includes only shuttle, security, and other service vehicles.
3 Scope 3 data do not include Vanguard fund investments.
Note: Total emissions before any purchased renewable energy certificates and carbon offsets. tCO2e stands for metric tons of carbon dioxide equivalents. Scope definitions are as defined by the Greenhouse Gas Protocol.
At Vanguard, our sustainability strategy balances growth and efficiency. To achieve carbon neutrality, we are committed to a combination of tactics—operational changes to reduce our carbon emissions, investment in the sustainability of our global real estate portfolio, and the purchase of renewable energy certificates and carbon offsets.
We're reducing emissions by improving operational efficiencies, investing in new sustainable technology and high-efficiency equipment, and improving building energy standards.
The exterior lighting for our Malvern, Pennsylvania, corporate headquarters campus was upgraded to LED in 2021, requiring the replacement of over 2,300 lamps and resulting in estimated savings of more than 726 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.
We incorporate sustainable design and construction principles into the U.S. buildings we own and the office space we lease worldwide.
Green building criteria and certifications have been incorporated into our corporate building design standards. As of December 31, 2021, seven buildings across our global locations were either LEED- or BREEAM-certified.4
4 LEED and BREEAM are systems that rate buildings on a range of sustainability and environmental criteria. 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.
After operational reduction and real estate investments, we offset our remaining footprint with high-impact projects that increase economic development.
In 2021, Vanguard purchased over 109,000 MWh of renewable energy, which resulted in a reduction of more than 37,000 tCO2e. Additionally, we invested in three carbon-offset projects in 2021 that offset 6,000 tCO2e.
of our operational carbon emissions were offset by purchasing renewable energy certificates and carbon offsets
buildings across our global locations are either LEED-certified or BREEAM-certified
Electric Vehicle charging stations are available for Vanguard crew to use
megawatt hours of Renewable Energy Certificates purchased