Sustainability

Building a sustainable future

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 operations.

Our strategy

Vanguard’s corporate sustainability strategy seeks to reduce our firm’s own climate impact, invest in sustainable solutions, and engage our crew.

Vanguard's corporate sustainability goals and targets

In early 2020, we established a pair of goals to curb emissions and reduce the global carbon footprint of our operations.

Chart showing the climate-related goals Vanguard established in January 2020 for our global operations. The first goal was to use 100% renewable energy in our global operations by 2021. Status: Vanguard achieved 100% renewable energy usage in 2021 and 2022; the goal now is to maintain 100% renewable energy usage moving forward. The second goal was to reach carbon neutrality throughout our global operations by 2025. Status: Vanguard was 71% carbon neutral by year-end 2022.

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)

Chart showing 2025 climate-related targets for Vanguard as a company compared to a 2019 baseline: a 20% reduction in emissions. The chart also shows actual results through 2022.

Reduce electricity usage by 5%

Measured in kilowatt-hours per square foot of space under operational control

Chart showing 2025 climate-related targets for Vanguard as a company compared to a 2019 baseline: 5% reduction in electricity usage. The chart also shows actual results through 2022.

Reduce water usage by 20%

Measured in gallons per square foot of space under operational control

Chart showing 2025 climate-related targets for Vanguard as a company compared to a 2019 baseline: a 20% reduction in water usage. The chart also shows actual results through 2022.

Divert 80% of waste from landfills

Chart showing 2025 climate-related targets for Vanguard as a company compared to a 2019 baseline: the diversion of 80% of company waste from landfills. The chart also shows actual results through 2022.

Our approach

We take a thorough, pragmatic approach to managing our corporate resources.

Operational efficiences

We're reducing emissions by improving operational efficiencies, investing in new sustainable technology and high-efficiency equipment, and improving building energy standards.

In 2022, we continued to upgrade exterior lighting, adding 749 more LED lamps that are expected to save 725 megawatt-hours (MWh) of electricity annually on top of the 726 MWh of savings from upgrades the prior year (2021). 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.

Sustainable design

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 are integral to our corporate building design standards. As of December 31, 2022, 18 buildings—or nearly 30% of the buildings across our global locations—were either LEED- or BREEAM-certified.¹ Of the 18 buildings, eight were new certifications for Vanguard in 2022.

Renewable energy and carbon offsets

Where possible, our buildings are powered by on-site renewable energy and direct renewable energy from the utility supplier. Where direct renewable energy from the utility supplier is unavailable, our approach includes purchasing renewable energy certificates.

After operational reduction and real estate investments, we offset our remaining footprint with high-impact carbon offset projects that increase economic development.

In 2022, Vanguard purchased over 110,000 MWh of renewable energy, which resulted in a reduction of more than 34,000 tCO₂e. Additionally, we supported three carbon-offset projects in 2022 that offset 24,500 tCO₂e.

Engaging our crew

We offer programs to encourage the use of low-carbon transportation, including about 70 free electric vehicle charging ports adjacent to our buildings, shuttles between campuses and to and from public transit, and pretax deductions for public transit costs.

Our electric vehicle chargers are powered by 100% renewable energy, resulting in reduced commuting emissions of 227 tCO₂e and saving over 37,000 gallons of gasoline. Additionally, we have begun to add electric vehicles to our maintenance fleet.

Vanguard's 2022 global carbon footprint

Disclosure of Scopes 1, 2, and 3 greenhouse gas emissions

Chart showing Vanguard’s operational carbon emissions broken down by Scopes 1, 2, and 3 as defined by the Greenhouse Gas Protocol from 2020 through 2022. Measured in metric tons of carbon dioxide equivalent, or tCO2e, Scope 1 emissions increased from 3,240 tCO2e, to 4,375 tCO2e; Scope 2 location-based electricity emissions decreased from 39,707 tCO2e to 34,361 tCO2e, not including our purchase of renewable energy certificates; Scope 2 market-based electricity emissions decreased from 20,431 tCO2e to 0 tCO2e after our purchase of renewable energy certificates; and Scope 3 emissions increased to 44,699 tCO2e from 21,894 tCO2e. The total location-based carbon emissions for Scopes 1, 2, and 3 increased from 64,841 tCO2e to 83,435 tCO2e before any purchased renewable energy certificates or carbon offsets. The total reported emissions, including Scope 1, Scope 2 market-based, and Scope 3 and excluding our purchased carbon offsets, decreased from 45,565 tCO2e to 24,573 tCO2e.

Emissions went up in 2022 as many of our crew returned to offices but remained below 2019 baseline levels.

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,²including purchased goods and services,³fuel- and energy-related activities, waste generated in operations, business travel, employee commuting, and upstream leased assets.⁴

1 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.

2 Scopes 1, 2, and 3 are as defined by the Greenhouse Gas Protocol. 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.

3 Includes only shuttle, security, and other service vehicles.

4 Scope 3 data do not include Vanguard fund investments.