ESG Strategy
We are committed to advancing sustainability, equity and trust by embedding ESG into everything we do at VMware. Every product we engineer, every customer we support and every employee we empower is an opportunity to help build a more sustainable, equitable and secure future.
Our ESG strategy is formalized into what we call our 2030 Agenda, made up of 30 cross company goals. Collectively, they are a call to action to decarbonize digital infrastructures, to increase equitable access to opportunities through distributed workforce technology, and to earn trust with enhanced security and transparency.
2030 Agenda
VMware’s 2030 Agenda is a decade long ESG commitment to build a more sustainable, equitable and secure world. To ensure accountability, we embed our 30 cross-functional ESG goals within our business units and leadership team, who have the expertise to generate real and lasting value.
We recognize that we cannot do this alone, which is why we’ll need to co-innovate with our entire stakeholder ecosystem including employees, customers, partners and our broader communities. This requires tapping into our culture of ingenuity and our EPIC2 values—execution, passion, integrity, customers and community—to operationalize ESG across VMware.
Sustainability
Sustainable digital infrastructure, supporting the transition to net zero emissions and decarbonization for our customers, supply chain and operations.
Equity
Equitable, unbiased and inclusive access to opportunities for all by enabling people to work where and how they want to work.
Trust
Trust earned from our commitment to resilience, ethics, data privacy, security and transparency.
ESG Highlights
CARBON EMISSIONS AVOIDED BY VMWARE SOLUTIONS
1.2B METRIC TONS
CERTIFIED CARBON NEUTRAL COMPANY SINCE
2018
POWER OF DIFFERENCE (POD) COMMUNITIES
24
EXPANDED
VMWARE
RESPONSIBLE SOURCING PROGRAM
Corporate Governance
The overarching approach to VMware governance is rooted in our EPIC2 values. With integrity at the heart of our values, we build and protect trusted relationships with our customers, partners, shareholders and our people. Our corporate governance practices provide a framework for operating VMware in our stakeholders' best interests and the requirements of law. We manage our affairs according to the highest principles of business ethics.
Governance Practices
Governance Practices
ESG Materiality Assessment
An ESG materiality assessment offers a holistic view of how issues, goals and outcomes can impact a business. By aligning all our priorities—both business and ESG—we made an important shift in how we plan and operate, which is driving meaningful change internally and externally. We performed our most recent ESG materiality assessment in 2019 with a comprehensive review of our stakeholder ecosystem. We conducted a thorough analysis of industry trends and peer benchmarking, reviewed investor inquiries and customer insights, and received input from external IT sector experts and internal contributors. We prioritized topics based on their potential impact to our core business—whether financial, reputational or market-based—and how those topics impact our key stakeholders’ decision-making. We also considered the potential outcomes we could accelerate with these topics, which ultimately helped inform our ESG strategy and the development of the 2030 Agenda.
ESG Governance Structure
VMware’s ESG governance structure includes annual oversight of ESG performance by the full Board of Directors, and the Governance Committee provides formal, primary oversight of our ESG progress. The Audit Committee oversees cybersecurity and data privacy matters, while the Compensation Committee oversees annual executive officer management-by-objectives (MBOs). Our ESG Executive Sponsors meet quarterly to provide ESG strategy direction and the ESG Leadership Council sets annual objectives and key results (OKRs) to monitor implementation progress. Operationally, our ESG Office drives cross-company alignment and strategic focus and measures and tracks our ESG goals.
Data Privacy and Security
New and emerging privacy and security legislation place specific regulatory obligations on organizations, while cyberattacks are rapidly growing in sophistication and scope. At VMware we are passionate about privacy and data security and have developed comprehensive procedures and controls to help protect our customers and their infrastructures and our own.
Ethics
A culture of ethical conduct and compliance is key to maintaining a sustainable and responsible business. This culture is core to VMware’s commitment to integrity which underpins our Business Conduct Guidelines. These guidelines specify standards of behavior that go beyond just complying with the law. They require all employees, directors and executive officers of VMware and its subsidiaries to uphold our shared corporate values: to build and protect trusted relationships with customers, partners, shareholders and the communities within which we operate.
Anti-Corruption
We all share a role in the global fight against bribery and corruption. To help protect against these threats, we’ve established an anti-corruption program that outlines policies, programs, training, and risk and control evaluation centered around embedding anti-bribery management into every facet of our business. We leverage risk assessments to drive process and control refinement, identify targeted training opportunities, and implement program enhancements, where necessary. In 2019 we launched a compliance campaign titled "We All Own It," focused on driving accountability for ethics and compliance issues at a personal level.
Public Policy
Our Government Relations and Policy team partners with governments and public officials to champion our technologies, products and services, customers, employees, and our global communities. We work with all levels of government on public policies relevant to our core business and core values, and we partner with trade associations and industry organizations that share our vision and policy objectives.
VMware also works with United By Interest (UBI), the first bipartisan, majority-minority owned government relations team in Washington, D.C. UBI helps enhance VMware’s outreach to key members the Congressional Black Caucus and Congressional Hispanic Caucus on issues around social and racial justice.
Sustainability
Sustainability is core to VMware’s values, which is evident based on our legacy of decarbonizing digital infrastructure for our customers, value chain and our own operations. VMware has been certified as a CarbonNeutral® company since 2018, in accordance with The CarbonNeutral Protocol, and we aim to achieve net zero emissions by 2030. We set science-based targets to guide our emissions reduction goals and our operations have been powered 100% by renewable energy since 2019.
2030 Sustainability Goals
2030 Sustainability Goals
Workload Carbon Efficiency
Accelerate productivity and carbon efficiency of customers’ digital operations.
Goal Progress
We practice VMware on VMware principles (acting as customer zero for our products) to achieve workload carbon efficiency gains. Through these efforts, we are also defining qualification criteria for carbon efficient customers.
Related Resources:
- IDC White Paper - Enabling More Agile & Sustainable Business through Carbon-Efficient Digital Transformations.
Zero Carbon Clouds
Catalyze the transition to zero carbon clouds.
Goal Progress
Through June 2022, thirty partners have joined VMware's Zero Carbon Committed™ program.
Related Resources:
- Zero Carbon Committed Cloud Partner Initiative - Connect with VMware Zero Carbon Committed providers to help you reach your sustainability and supply chain decarbonization goals.
Business Resilience
Ensure resilience from our physical infrastructure to our distributed workforce.
Goal Progress
We are developing a Resiliency Assessment tool to enhance Manager preparedness during natural disasters, which includes a feature in our Emergency Notification (EN) system to filter by employee home location.
Related Resources:
- Disaster Recovery Solutions - Protect any workload, balancing the speed and cost of recovery with the criticality of your data, with comprehensive disaster recovery solutions from VMware.
- Build a Future Ready Organization - Empower your employees to work securely from anywhere. Adapt to changing business conditions. And build greater resilience into your organization.
Distributed Energy
Accelerate the adoption of distributed energy for our distributed workplace.
Goal Progress
VMware has developed a community microgrid on its Palo Alto, CA campus that will help provide the company with clean, reliable energy and serve as a back-up energy source to the community in the case of an outage.
Related Resources:
Net Zero Emissions
Achieve net zero carbon emissions for our operations and supply chain.
Goal Progress
In FY22, we reduced Scope 1 and 2 emissions by 84% from our 2019 baseline and reduced employee commute emissions by 44% from baseline. Fifty-five percent of our suppliers by spend have at least committed to setting science-based targets. 2021 marked our third consecutive year of procuring 100% of our power from renewable sources.
Related Resources:
- Journey to Net Zero - VMware is committed to achieving net zero carbon emissions for our operations and supply chain by 2030.
- VMware Home Office Emissions White Paper - In 2020, we assessed - for the first time—the carbon impact of VMware employees working from home.
- Responsible Sourcing - We’re committed to supporting our suppliers along their ESG journeys and working toward shared goals.
E-Waste Responsibility
Drive e-waste responsibility throughout our operations.
Goal Progress
We published comprehensive guidance on e-waste procurement and sustainability for our distributed workforce. Our 'Follow the Sun' support mode provides employees with a superior and more efficient e-waste management process no matter where they live in the world.
Carbon Transparency
Enable transparency to the carbon reduction impact of VMware solutions.
Goal Progress
We have released vROps sustainability dashboards and customer decarbonization assessment tools. We are improving data accuracy and adding new features while identifying further products to enhance with carbon transparency tools.
Impact Investments
Invest in innovations at the intersection of social, environmental and financial impact.
Goal Progress
VMware has made two impact investments in the following areas: 1) geospatial data capture, processing, and analytics that enables enterprise customers to detect, prioritize, and monitor for environmental and social impacts, and 2) software focused on accelerating clean energy transition by enabling secure AI and data analytics across energy companies.
Water Resilience
Support water resilience among our global communities.
Goal Progress
We have installed water-meters throughout our real estate portfolio in India, integrating with building management systems. To continue driving water conservation projects in India, more than 90% of our office campus premises practice rainwater harvesting.
Sustainable Cloud Advocacy
Support public policy that drives secure, resilient and sustainable multi-cloud infrastructure.
Goal Progress
VMware advocated in favor of legislation including the: 1) Infrastructure Investment and Jobs Act, which includes billions of dollars for climate resilience; 2) National Defense Authorization Act, which requires the Department of Defense to identify its 50 least efficient data centers; and 3) Federal 2021 Appropriations Act, which includes energy efficient data center provisions.
Sustainability Highlights
CARBON EMISSIONS AVOIDED BY VMWARE SOLUTIONS
1.2B METRIC TONS
TOTAL RENEWABLE ENERGY PURCHASED IN FY22
190,901 MWh
RENEWABLE ENERGY GLOBALLY
100%
LEED
CERTIFICATIONS
20
Sustainability Impact Stories
Sustainability in Action: WVV
VMware helps customers like WVV build the IT infrastructure for tomorrow’s smart cities.
Climate Change Can’t Knock Our Lights Out
Climate change impacts local infrastructure and creates a challenge for cities to access reliable power, especially during increasing natural disasters. This led VMware and the City of Palo Alto to develop an innovative community microgrid that can disconnect from a traditional grid and operate autonomously.
Advancing Sustainability Innovation
With the rapid adoption of compute-intensive technologies, datacenter electricity use could increase ten-fold over the next decade causing a significant carbon footprint. At VMware, we believe sustainability innovation can satisfy growing demand while limiting carbon impact.
Earth Day Demands Accountability
Earth Day has helped raise awareness about the health of our planet and our impact on it for decades. At VMware, we are making it even more meaningful with a collective accountability mindset and by empowering employees to make sustainable climate choices.
VMware Awarded Top Environmental Ranking
VMware was named one of America’s Most JUST Companies—the fifth consecutive year the company has been awarded. VMware ranked number one overall in the environment category, leading all companies in the JUST 100 in sustainable products and pollution reduction, and achieved high scores in climate change and resource efficiency.
Equity
At VMware, we look at equity broadly as a business imperative that encompasses multiple dimensions of access, opportunity and advancement for all our stakeholders. Our approach to equity starts with creating a diverse and inclusive work environment that allows everyone in our organization to feel a sense of belonging and community. We empower our people through DEI initiatives, professional development training and philanthropic giving programs. In addition, our products and solutions enable our customers to provide increased flexibility and access to opportunities for their own employees.
2030 Equity Goals
2030 Equity Goals
Anywhere Workspace
Enable our customers’ distributed workforces to be productive and engaged wherever they are working.
Goal Progress
Within VMware’s Anywhere Workspace solutions, mobile platforms were enhanced with Mobile Threat Defense and authentication options to provide customers added security for their distributed workforce.
Related Resources:
- Future of Work – We’re building a dynamic, global workforce where our people may work from any location, in line with business requirements, that accelerates their productivity to deliver innovative solutions for our customers.
- Anywhere Workspace Solutions
- Remote Work Solutions
Diversity and Inclusion
Drive equity through doubling down on diverse hiring and inclusive leadership.
Goal Progress
In FY22, Women represented 29% of global employees, up from 27% in FY21. 34% of our global hires self-identified as a woman, and 16% of U.S. hires self-identified as an underrepresented minority. Senior Director-level and above now have corporate DEI goals tied to bonus compensation.
Related Resources:
- Diversity, Equity & Inclusion - We believe that technology plays a critical role in building a digital future that is accessible, unbiased and inclusive for all.
Culture of Service
Foster a culture of service among our global communities.
Goal Progress
In FY22, 81% of VMware people participated in at least one VMware Foundation program. 19% participated in two or more VMware Foundation programs. More than 30,000 VMware people (81%) supported over 14,000 nonprofits in 102 countries.
Related Resources:
- VMware Foundation – Our Foundation exists to amplify our people’s personal passions for the individual causes they care about.
Digital Skills
Advance technical and digital skills acquisition around the world.
Goal Progress
In FY22, VMware IT Academy upskilled more than 62,000 learners on VMware solutions. VMware IT Academy is also expanding its educational portfolio to include Modern Applications offerings for learners around the world.
Related Resources:
- VMinclusion Taara - Our unique program designed to support women in returning to work by offering free technical education.
- IT Academy - Working closely with the community, IT Academy provides educational resources to help students gain the digital skills necessary to make digital transformation accessible for all.
Nonprofit Digital Transformation
Accelerate nonprofits’ digital journeys.
Goal Progress
We served 1,005 nonprofits in FY22 through programs like VMware’s Take 3, Good Gigs Projects and Nonprofit Pricing, as well as through our support of TechSoup’s Digital Assessment Tool for nonprofits.
Related Resources:
- VMware Tanzu Act – We’re working with nonprofit customers to design and build impactful technology.
- Transforming Technology Pro Bono Framework
Supplier Diversity
Increase commitment to diverse-owned and underrepresented suppliers.
Goal Progress
In FY22, VMware's Responsible Sourcing program was launched to drive sustainability, diversity and accessibility in our supply chain. The supplier diversity program expanded to India, Ireland, Canada and the United Kingdom.
Related Resources:
- Responsible Sourcing - We’re committed to supporting our suppliers along their ESG journeys and working toward shared goals.
Equitable Pay
Advance equitable pay for all VMware People.
Goal Progress
Twice a year, a third party analyzes our compensation globally. Our most recent data shows that VMware women earn 99% of their male counterparts' salary globally and racial and ethnic minority employees earn 100% of their white counterparts’ salary in the U.S.
Technology Accessibility
Ensure the technology we develop is accessible for all.
Goal Progress
VMware conducts and scores all products on their accessibility yearly and provides shift-left accessibility consulting, education and support by way of our support-ticketing system and by way of the Embedded Accessibility Strategist (EAS) program. In addition, we work to ensure that user guides and marketing materials for VMware’s products are accessible.
Related Resources:
- Accessibility at VMware – We’re committed to good user experiences for all users.
Distributed Workforce
Build a diverse, innovative workforce by meeting talent where they are and how they want to work.
Goal Progress
Ninety-three percent of respondents to our latest employee survey agreed that VMware is delivering on its commitment to give employees choice and flexibility in where they work.
Related Resources:
Wellbeing
Engage and empower our people through a culture of health and wellness that is accessible, inclusive and innovative.
Goal Progress
VMware has continued to improve our benefits program, including by adding an employee wellbeing allowance, and offering a comprehensive portfolio of benefits designed to assist employees in taking care of themselves and achieving wellbeing.
Related Resources:
Equity Highlights
HUMAN RIGHTS CAMPAIGN EQUALITY SCORE
100%
EMPLOYEES ENGAGED IN CHARITABLE ACTIVITIES (FY22)
30,070
# OF GLOBAL NONPROFITS SUPPORTED (FY22)
13,907
# OF COUNTRIES WITH NONPROFITS SUPPORTED
102
Equity Impact Stories
Equity in Action: A21
A21 partnered with VMware Tanzu Labs to research, validate, and pilot an online learning experience that widens the reach of their curriculum on how to recognize the signs of human trafficking.
VMware joins the Valuable 500
VMware has committed to building disability inclusion into VMware’s leadership agenda as we join the Valuable 500.
Creating Meaningful Change Together
Over the past year, VMware’s diversity, equity and inclusion (DEI) journey has been marked by renewed purpose and real progress. Our 2022 DEI Report details these strategies and demonstrates that at VMware, we affect progress in the world by creating it together.
Equity Requires Doing a Little Bit of Good, Wherever You Are
VMware strives to embed equity into every part of our business, from the products we make to the outcomes we create for all our stakeholders.
Trust
At VMware, trust means that customers can be confident that their data is kept private, secure and used responsibly, our employees can be confident their company operates transparently and ethically, and all stakeholders can be effectively safeguarded from cyberattacks. Our approach involves rooting our efforts in:
1) Transparency—by owning where we are today and our progress toward where we want to be;
2) Accountability—accepting responsibility for the outcomes of our actions, not our intentions; and
3) Innovation—channeling the same creativity we use to create value for our customers into reaching our ESG goals.
2030 Trust Goals
2030 Trust Goals
Security
Enable a cyber resilient world through VMware solutions.
Goal Progress
VMware collaborates closely with the security research community to track security issues and makes regular disclosure of exploitable identified vulnerabilities under VMware Security Advisories (VMSA) at www.vmware.com/security/advisories.html
Related Resources:
- VMware Security Solutions - Protect your apps and data.
Privacy by Design
Embed privacy by design across our products, services and operations.
Goal Progress
To help proactively identify and mitigate privacy-related issues, the Global Privacy Team has implemented a Privacy Review process that is completed when teams are implementing or updating business processes, applications or services that will process personal data.
Related Resources:
- VMware Cloud Trust Center - Transparency on how we collect, use, disclose, transfer and store personal information.
- Workspace ONE Privacy Guard
VMware on VMware
Leverage VMware software in our internal infrastructure with a focus on trust, security, experience and sustainability.
Goal Progress
We partner with field sales and technical account organizations to share VMware technology best practices with customers via Zoom webinars, 1:1 customer meetings, and small-group roundtable discussions.
Workforce Development
Enable our people to advance from every chair.
Goal Progress
In FY22, we launched a new learning experience platform called the VMware Learning Hub, simplifying and unifying access to career tools and resources.
Related Resources:
- Career Development - We offer diverse learning platforms and experiences designed to amplify careers.
Fair and Ethical Practices
Advance fair and ethical business practices.
Goal Progress
VMware released a new format for our Business Conduct Guidelines refresher course with real-work examples that are easier to relate to. We achieved 100% completion on this mandatory annual training in FY22.
Related Resources:
Impact Advocacy
Support public policy that drives social and environmental impact in IT.
Goal Progress
In the 2021-2022 election year, VMware’s Political Actional Committee (“VMware PAC”) committed to supporting select Members of Congress solely based on their leadership and activism on ESG and DEI.
Digital Ethics
Advance our approach to digital ethics and stewardship.
Goal Progress
VMware’s Machine Learning Program Office is developing an AI Code of Ethics to identify and propose a path for adoption of industry and academic best practices that promote the ethical use of AI across our product development and business operations.
Integrated Reporting
Transition to integrated reporting, meeting or exceeding ESG disclosure standards.
Goal Progress
VMware expanded ESG and DEI disclosures in our FY22 Annual Form 10-K and Proxy Statement. VMware also conducted a TCFD climate risk assessment and climate modeling against future scenarios, while continuing to deepen alignment to the SASB reporting framework.
Related Resources
Transparency
Embed governance and accountability for the benefit of all stakeholders.
Goal Progress
In FY22, VMware amended the charter of the Governance Committee to provide formal, primary oversight of our ESG progress. Our Audit Committee oversees cybersecurity and data privacy matters and our Compensation Committee reviews ESG progress as a factor impacting executive bonus payouts.
Related Resources:
Sustainable Finance
Integrate sustainable metrics into our financial decision-making process.
Goal Progress
VMware has aligned to the Impact Multiple of Money Model which is run alongside our financial decision-making to reflect the opportunities and risks posed by ESG issues material to VMware’s business strategy.
Trust Highlights
BUSINESS CONDUCT GUIDELINES TRAINING
100% OF EMPLOYEES
BOARD GENDER
DIVERSITY
30%
DEVELOPED
MEASURABLE
EXECUTIVE ESG MILESTONES
INCLUDED ESG
UPDATES FOR
INTEGRATED FINANCIAL REPORTING
Trust Impact Stories
Trust in Action: Zoom
VMware solutions enable Zoom to build trust with users by offering a secure, scalable solution in a pandemic environment with employees all over the world.
Delivering on ESG Commitments
Reflections on the progress of VMware’s ESG strategy from Nicola Acutt, Vice President, Environmental, Social and Governance at VMware.
America’s Most Trusted Companies
VMware has been recognized by Newsweek and Statista in their first annual ranking of America’s Most Trusted Companies. VMware was ranked fourth in the software and telecommunications category.
Trust, Digital Ethics and ESG
We hold ourselves accountable to the highest transparency and reporting standards not only because it’s the right thing to do, but because we want to raise the bar for our entire industry. VMware is embedding ideas like Zero Trust security and privacy by design into our products not just because we want them to be competitive features, but because we know it’s what we owe society as a whole.
Responsibly Sourcing Promotional Items
We recognize the importance of promotional items to our brand engagement, for multiple groups including customers, partners and employees. We also recognize that there is potential for significant waste from these purchases. We need to be stewards of the brand while minimizing impact to the planet. We are excited to announce that moving forward, we will only purchase sustainable and responsibly sourced promotional merchandise.
Reports
ESG Report
We expect our shareholders and other stakeholders to hold us accountable for our ESG progress, which is why VMware voluntarily provides transparent ESG updates annually in our ESG Report. Disclosing ESG data is a crucial component in earning trust from our stakeholders, which is why we align to leading ESG reporting frameworks and standards.
We also regularly respond to investor and customer requests for information and industry leading ESG assessments. These include the CDP questionnaire (Carbon Disclosure Project) to measure our environmental sustainability performance, the EcoVadis assessment to evaluate our sustainable procurement practices and more.
ESG Performance Data
VMware has a long history of leveraging data to improve our decision making and capacity for innovation. We have transparently shared our ESG performance since VMware’s inaugural Global Impact Report in 2015.
We measure our impact in line with leading ESG frameworks including the following:
- Greenhouse Gas Protocol (GHG Protocol)
- Sustainable Accounting Standards Board (SASB)
- Global Reporting Initiative (GRI)
- Task Force on Climate-related Financial Disclosures (TCFD)
- United Nations Sustainable Development Goals (UN SDGs)
- Principles of the United Nations Global Compact (UNGC)
Year
Framework
Company Overview
Description |
FY2021 |
FY2022 |
Framework |
| Organization name | VMware, Inc. | VMware, Inc. | GRI 102-1 |
| Total revenue (in millions) | $11,767 | $12,851 | |
| Primary brands, products, and services | VMware Form 10-K FY21 | VMware Form 10-K FY22 | GRI 102-2 |
| Worldwide patents and applications | 8,384 | 9,443 | |
| Location of headquarters | 3401 Hillview Avenue, Palo Alto, California 94304 USA | 3401 Hillview Avenue, Palo Alto, California 94304 USA | GRI 102-3 |
| Location of operations | VMware Office Locations | VMware Office Locations | GRI 102-4 |
| Ownership and legal form | VMware Form 10-K FY21 | VMware Form 10-K FY22 | GRI 102-5 |
| Markets served | VMware Form 10-K FY21 | VMware Form 10-K FY22 | GRI 102-6 |
| Scale of the organization | VMware Form 10-K FY22 | VMware Form 10-K FY22 | GRI 102-7 |
| Reporting period | February 2, 2020 - January 31, 2021 | January 30, 2021 - January 28, 2022 | GRI 102-50 |
| Report cycle | Annual | Annual | GRI 102-52 |
| Report contact | ESG@vmware.com | ESG@vmware.com | GRI 102-53 |
| Direct economic value generated and distributed | VMware Form 10-K FY21 | VMware Form 10-K FY22 | GRI 201-1 |
| Membership of associations | VMware's 2021 CDP Climate Change response | VMware's 2021 CDP Climate Change response | GRI 102-13 |
| List of stakeholder groups | Shareholders, customers, partners, employees, communities, the environment | Shareholders, customers, partners, employees, communities, the environment | GRI 102-40 |
| Statement from senior decision-maker | VMware ESG Report FY21, Letters from the CEO and CPO | VMware ESG Report FY22, Executive Reflections | GRI 102-14 |
| Information on employees and other workers | VMware DEI Report FY21 | VMware DEI Report FY22 | GRI 102-8 |
| External initiatives | We are involved in several external initiatives, including: RE100, REBA, UNGC and World Economic Forum. The low carbon sustainable development projects that we support address numerous Sustainable Development Goals (SDGs), including: SDG 3, SDG 4, SDG 5, SDG 6, SDG 7, SDG 8, SDG 9, SDG 12, SDG 13, SDG 15, SDG 16 and SDG 17. Details of these projects can be found in VMware's 2021 CDP Climate Change response. All of these initiatives are voluntary. | We are involved in several external initiatives, including: RE100, CEBA, UNGC, Valuable 500, 1t.org, The Climate Pledge, World Economic Forum. The low carbon sustainable development projects that we support address numerous Sustainable Development Goals (SDGs), including: SDG 3, SDG 4, SDG 5, SDG 6, SDG 7, SDG 8, SDG 9, SDG 12, SDG 13, SDG 15, SDG 16 and SDG 17. Details of these projects can be found in VMware's 2022 CDP Climate Change response. All of these initiatives are voluntary. | GRI 102-12 |
Year
Framework
Governance
Description |
FY2021 |
FY2022 |
Framework |
| Governance structure | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-18 |
| Executive-level responsibility for economic, environmental, and social topics | VMware's Environmental, Social and Governance strategy is led by the Vice President of Environmental, Social, Governance, and reports to the following ESG Executive Sponsors: Chief Financial Officer, Chief Technology Officer, Chief People Officer and General Counsel. | VMware's Environmental, Social and Governance strategy is led by the Vice President of Environmental, Social, Governance and is overseen by the following ESG Executive Sponsors: Chief Executive Officer, Chief Financial Officer, Chief People Officer, General Counsel, President and Chief Technology Officer. | GRI 102-20 |
| Total Executive and Non-Executive Board Members | 10 | 10 | GRI 102-22 |
| Board Gender Diversity | 20% | 30% | GRI 102-22, 405-1 |
| Composition of the highest governance body and its committees | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-22 |
| Chair of the highest governance body | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-23 |
| Nominating and selecting the highest governance body | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-24 |
| Conflicts of interest | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-25 |
| Role of highest governance body in setting purpose, values, and strategy | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-26 |
| Evaluating the highest governance body's performance | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-28 |
| Communicating critical concerns | Corporate Governance Guidelines | Corporate Governance Guidelines | GRI 102-33 |
| List of material topics | Data Privacy and Security, Digital Ethics, Product Stewardship and Design, Climate Resilience and Adaptation, Energy and GHG Emissions, Civic Engagement and Public Policy, Community Engagement, Digital Skills and Training, Human Capital, Inclusion and Equal Opportunity, Supply Chain Responsibility, Business Oversight and Transparency. | Data Privacy and Security, Digital Ethics, Product Stewardship and Design, Climate Resilience and Adaptation, Energy and GHG Emissions, Civic Engagement and Public Policy, Community Engagement, Digital Skills and Training, Human Capital, Inclusion and Equal Opportunity, Supply Chain Responsibility, Business Oversight and Transparency. | GRI 102-47 |
| External assurance | VMware is responsible for the preparation and integrity of the information in this report. VMware engaged Apex as an independent third party to review our FY21 Greenhouse Gas (GHG) inventory and energy consumption, and received limited assurance of its accuracy and completeness. The scope of this review, included in this report, includes our global Scope 1 and Scope 2 GHG emissions, Scope 1 and 2 energy consumption and Scope 3 GHG emissions related to business travel. The rest of this report has not been externally assured by an independent third party. | VMware engaged Apex Companies LLC (Apex) as an independent third party to review our fiscal year 2022 Greenhouse Gas (GHG) inventory and energy consumption and received limited assurance of its accuracy and completeness. The scope of this review, included in this report, includes global Scope 1 and Scope 2 GHG emissions, Scope 1 and 2 energy consumption, and Scope 3 GHG emissions related to business travel and employee commuting. The rest of this report has not been externally assured by an independent third party. Please see our third-party assurance letter by Apex for more information. | GRI 102-56 |
| Code of conduct | Business Conduct Guidelines | Business Conduct Guidelines | GRI 102-16 Principle 10 |
| Percentage of employees who completed Business Conduct Guidelines training | 100% | 100% | GRI 102-16 Principle 10 |
| Mechanisms for advice and concerns about ethics | VMware Ethics Helpline | VMware Ethics Helpline | GRI 102-17 |
| Data Privacy and Security | |||
| System performance and security | VMware Cloud Trust Center | VMware Cloud Trust Center | GRI 418-1 TC-SI-220a.1 Principle 1 |
| Description of policies and practices relating to behavioral advertising and user privacy | VMware ESG Report FY21, Chapter 6: Accountability | VMware believes that protecting personal data is critical to building trusted relationships with both customers and employees, as well as for promoting innovation. VMware’s dedicated Global Privacy Team works across the organization to deliver pragmatic, creative, and scalable privacy solutions to protect our customers and their infrastructures as well as our own. To help proactively identify and mitigate privacy-related issues, the Global Privacy Team has implemented a Privacy Review process that is completed when teams are implementing or updating business processes, applications or services that will process personal data. In addition, we regularly review our privacy strategy against emerging legal requirements and regulatory guidance to define and embed privacy controls that meet both our customers’ and internal stakeholders’ expectations, and to implement best in class cross border data transfer mechanisms. We have achieved Binding Corporate Rules for Processors (BCR-Ps) acknowledging that we continue to meet the standards of the EU General Data Protection Regulation for international transfers of personal data from the EEA, processed by VMware as a processor. We are also awaiting approval for our UK BCR-P application. You can access our Privacy Notice at: https://www.vmware.com/help/privacy.html and to read more about VMware’s privacy program, please visit https://cloud.vmware.com/trust-center/privacy |
GRI 418-1 TC-SI-220a.1 |
| Description of approach to identifying and addressing data security risks, including use of third-party cybersecurity standards | VMware ESG Report FY21, Chapter 6: Accountability | VMware promptly and regularly discloses publicly known vulnerabilities that are exploitable in one or more supported products and are critical and important in severity. We have a rigorous program in place that actively identities and addresses security threats. Once a vulnerability is identified in any of the products of our product portfolio, our teams will see to its remediation. In addition to our internal security operations, VMware collaborates closely with the security research community to track security issues. VMware makes regular disclosure of exploitable identified vulnerabilities under VMware Security Advisories (VMSA) at https://www.vmware.com/security/advisories.html VMware is active in the broader software industry security community, becoming an early member of BSIMM in 2009 and a member of SAFECode in 2014, an organization driving security and integrity in software products and solutions. VMware is deeply invested in Open Source Software Security. Not only do we contribute to some of the world’s most important OSS projects, but we also make contributions in many ways, including our participation in organizations such as the Open Source Security Foundation (OpenSSF) and Cloud Native Computing Foundation (CNCF) from the Linux Foundation. |
TC-SI-230a.2 |
| Description of business continuity risks related to disruption of operations | VMware ESG Report FY21, Chapter 4: Action | Any of our primary locations may be vulnerable to the adverse effects of climate change and the impacts of extreme weather events, which have caused regional short-term systemic failures in the U.S. and elsewhere. For example, our California headquarters are projected to be vulnerable to future water scarcity due to climate change, and unanticipated extreme cold weather has resulted in electrical grid outages in Texas where many of our U.S. employees are located. While this danger currently has a low-assessed risk of disrupting normal business operations in the near term, it has the potential to impact employees’ abilities to commute to work or to work from home and stay connected effectively. Climate-related events and their potential to increase political instability in regions where we, our customers, partners and our vendors do business, have the potential to disrupt our business, our third-party suppliers, or the business of our customers and partners, and may cause us to experience higher attrition and additional costs to maintain or resume operations. |
TC-SI-550a.2 |
| Public Policy | |||
| Company political contributions | 0 | 0 | GRI 415-1 |
| VMware PAC contributions | $99,000 | $31,000 | GRI 415-1 |
Year
Framework
Social
Description |
FY2021 |
FY2022 |
Framework |
| Workforce Indicators | |||
| Number of employees | 34,242 | 37,500 | GRI 102-7 |
| Benefits provided to full-time employees that are not provided to temporary or part-time employees | VMware Benefits | VMware Benefits | GRI 401-2 |
| Commitment to Diversity and Inclusion | VMware Diversity Equity and Inclusion | VMware Diversity Equity and Inclusion | Principle 1,6 |
| Regional employees (AMER %) | 49.5% | 47.3% | GRI 102-7 |
| Regional employees (APJ %) | 31.9% | 33.7% | GRI 102-7 |
| Regional employees (EMEA %) | 18.6% | 18.9% | GRI 102-7 |
| Global gender diversity | 27.1% | 29.2% | GRI 102-8 TC-SI-330a.3 |
| Regional gender diversity, AMER | 27.7% | 29.5% | GRI 102-8 TC-SI-330a.3 |
| Regional gender diversity, APJ | 26.8% | 29.2% | GRI 102-8 TC-SI-330a.3 |
| Regional gender diversity, EMEA | 26.0% | 28.3% | GRI 102-8 TC-SI-330a.3 |
| Regular employees under 31 years old | 21.4% | 21.9% | GRI 405-1 |
| Regular employees 31-50 years old | 65.7% | 64.6% | GRI 405-1 |
| Regular employees over 50 years old | 13% | 13.4% | GRI 405-1 |
| Total New Hires - under 31 years old | 36.4% | 36.9% | GRI 401-1 |
| Total New Hires - 31-50 years old | 55.5% | 55.1% | GRI 401-1 |
| Total New Hires - over 50 years old | 8.2% | 8.0% | GRI 401-1 |
| US - African-American/Black | 3.7% | 4.4% | GRI 405-1 TC-SI-330a.3 |
| US - Asian | 32.2% | 32.0% | GRI 405-1 TC-SI-330a.3 |
| US - Caucasian/White | 55.4% | 53.9% | GRI 405-1 TC-SI-330a.3 |
| US - Hispanic/LatinX | 6.2% | 7.1% | GRI 405-1 TC-SI-330a.3 |
| US - Multiracial | 2.0% | 2.1% | GRI 405-1 TC-SI-330a.3 |
| US - Other | 0.5% | 0.6% | GRI 405-1 TC-SI-330a.3 |
| Differently Abled (US) | 3.2% | 3.2% | |
| LGBTQ (Global) | 2.6% | 9.4% | |
| Veterans (US) | 5.4% | 5.7% | |
| Percentage of gender and racial/ethnic group representation for (1) management, (2) technical staff, and (3) all other employees | The percentages of gender and racial/ethnic group representation by employee type, including metrics reflecting intersectionality, are provided in our 2021 Diversity, Equity and Inclusion Report. VMware is committed to looking at our data across key demographic groups and closing the gaps between majority and underrepresented groups. We have set specific and measurable annual goals to increase the diversity of our workforce and improve the representation of underrepresented groups in the U.S. We also innovate to create new experiences to identify, expand and support the pool of underrepresented talent across the Technology Industry. More information about our relevant policies and programs to foster equitable employee representation can be found in our 2021 Diversity, Equity and Inclusion Report. | The percentages of gender and racial/ethnic group representation by employee type, including metrics reflecting intersectionality, are provided on pages 26-31 of our 2022 Diversity, Equity and Inclusion Report. VMware is committed to looking at our data across key demographic groups and closing the gaps between majority and underrepresented groups. We have set specific and measurable annual goals to increase the diversity of our workforce and improve the representation of underrepresented groups in the U.S. We also innovate to create new experiences to identify, expand and support the pool of underrepresented talent across the Technology Industry. More information about our relevant policies and programs to foster equitable employee representation can be found in our 2022 Diversity, Equity and Inclusion Report. Our most recent EEO-1 disclosure provides additional details. |
TC-SI-330a.3 |
| Ratio of basic salary and remuneration of women to men | At VMware, women earn 99% of their male counterparts' salary globally. | At VMware, women earn 99% of their male counterparts' salary globally. | GRI 405-2 |
| Process for determining remuneration | We continually analyze compensation globally, accounting for multiple factors that influence pay such as tenure, geographic location and performance. Our most recent data analysis, done by a third party, shows that at VMware, women earn 99% of their male counterparts' salary globally and racial and ethnic minority employees earn 100% of their white counterparts in the U.S. We are proud of these results and are strongly committed to pay equity and equal opportunity across gender and racial lines. | We continually analyze compensation globally, accounting for multiple factors that influence pay such as tenure, geographic location and performance. Our most recent data analysis, done by a third party, shows that at VMware, women earn 99% of their male counterparts' salary globally and racial and ethnic minority employees earn 100% of their white counterparts in the U.S. We are proud of these results and are strongly committed to pay equity and equal opportunity across gender and racial lines. | GRI 405-2 |
| Talent Development | |||
| Total number of employees who attended a Professional Development program | 18,049 | 18,998 | GRI 404-2 Principle 6 |
| Total number of employees who attended an RandD training | 14,644 | 14,323 | GRI 404-2 Principle 6 |
| Employees receiving regular performance and career development reviews | VMware believes that by innovating new performance norms, we not only build stronger human relationships and improve communication between employees and managers, we also ensure we stay agile and responsive to the changes that naturally occur in the business environment. To this end, we encourage career development goal setting and conversations throughout the year. | VMware believes that by innovating new performance norms, we not only build stronger human relationships and improve communication between employees and managers, we also ensure we stay agile and responsive to the changes that naturally occur in the business environment. To this end, we encourage career development goal setting and conversations throughout the year. | GRI 404-3 |
| Employee engagement | 44% | 50% | TC-SI-330a.2 |
| Employee Net Promoter Score (NPS) | 48 | 44 | |
| Community Engagement | |||
| Total VMware Foundation grants | $17,361,000 | $11,137,000 | |
| VMware matching gifts (included in total above) | $11,533,000 | $7,576,000 | |
| Employee service learning hours | 65,103 | 79,040 | |
| Number of employees who participated in charitable activities | 26,251 | 30,070 | |
| Percentage of employees who participated in charitable activities | 77% | 81% | |
| Number of global nonprofits supported | 14,122 | 13,907 | |
| Total VMware University Research Fund (VMURF) grants | $6,781,089 | $9,374,068 | |
| Human Rights | |||
| Commitment to ethical conduct | VMware's Business Conduct Guidelines | VMware's Business Conduct Guidelines | GRI 412-1 Principle 1,4,5,6 |
| Commitment to supplier diversity | VMware Responsible Sourcing | VMware Responsible Sourcing | GRI 414-1 Principle 6 |
| Diverse supplier spend (US) | $120,000,000 | $126,000,000 | |
| Supplier code of conduct | VMware's Supplier Code of Conduct | VMware's Supplier Code of Conduct | GRI 414-1 Principle 1,3,4,5,6 |
| Partner code of conduct | VMware's Partner Code of Conduct | VMware's Partner Code of Conduct | GRI 414-1 Principle 1,3,4,5,6 |
Year
Framework
Environmental
Description |
FY2021 |
FY2022 |
Framework |
| Strategy and Management | |||
| Environmental impact of VMware products |
IDC White Paper, sponsored by VMware, Enabling More Agile and Sustainable Business Through Carbon-Efficient Digital Transformations, August 2020 | IDC White Paper, sponsored by VMware, Enabling More Agile and Sustainable Business Through Carbon-Efficient Digital Transformations, August 2020 | Principle 8, 9 |
| GHG emissions avoided by VMware products | More than 152,000,000 MT CO2e *Note: Data is from FY20, calculation was not updated for FY21.* |
More than 152,000,000 MT CO2e *Note: Data is from FY20, calculation was not updated for FY22.* |
Principle 8, 9 |
| Climate strategy, management, risks and opportunities | VMware's CDP Climate Change Questionnaire 2021 | VMware's CDP Climate Change Questionnaire 2022 (Module 1 - Governance, Module 2 - Risks & Opportunities & Module 3 - Business Strategy) |
GRI 102-15, 201-2 Principle 7 |
| Discussion of the integration of environmental considerations into strategic planning for data center needs | Sustainability criteria covering clean energy, water and e-waste are included in the evaluation matrix of our colocation data center location strategy. In addition, our RE100 commitment includes our colocation footprint. | Sustainability criteria covering clean energy, water and e-waste are included in the evaluation matrix of our colocation data center location strategy. In addition, our RE100 commitment includes our colocation footprint. | TC-SI-130a.3 |
| GHG Emissions | |||
| GHG Emissions | 385,432 MT CO2e | 347,395 MT CO2e | GRI 305 |
| Scope 1: Direct emissions from owned/controlled operations | 2,788 MT CO2e | 2,685 MT CO2e | GRI 305-1 |
| Scope 2: Indirect emissions from the use of purchased electricity (market-based) | 7,318 MT CO2e | 0 MT CO2e | GRI 305-2 |
| Scope 2: Indirect emissions from the use of purchased electricity (location-based) | 72,198 MT CO2e | 65,859 MT CO2e | GRI 305-2 |
| Scope 2: Indirect emissions from the purchased cooling | 1,106 MT CO2e | 1,025 MT CO2e | GRI 305-2 |
| Scope 3: Business air travel | 15,878 MT CO2e | 3,131 MT CO2e | GRI 305-3 |
| Scope 3: Employee commuting | 23,571 MT CO2e | 28,831 MT CO2e | GRI 305-3 |
| Scope 3: Purchased Goods and Services | 240,663 MT CO2e | 200,603 MT CO2e | GRI 305-3 |
| Scope 3: Capital Goods | 72,136 MT CO2e | 81,341 MT CO2e | GRI 305-3 |
| Scope 3: Other | 23,079 MT CO2e | 29,779 MT CO2e | GRI 305-3 |
| GHG emissions intensity revenue metric | 0.62 MT CO2e/million USD revenue | 0.08 MT CO2e/million USD revenue | GRI 305-4 |
| GHG emissions intensity employee metric | 2.08 MT CO2e/employee | 1.73 MT CO2e/employee | GRI 305-4 |
| GHG emissions intensity square footage metric | 1.62 MT CO2e/1,000 Sq.Ft. | 0.55 MT CO2e/1,000 Sq.Ft.. | GRI 305-4 |
| Progress against our science-based emission reduction targets | GRI 305-5 Principle 8 |
||
| By 2030, VMware is committed: | |||
| To reduce our scope 1 and 2 emissions by 50% from a FY2019 base-year | % of target achieved in the current year: 115% | % of target achieved relative to base year: 169% | |
| To reduce absolute scope 3 GHG emissions from fuel-and-energy-related activities 50% from a FY2019 base year | % of target achieved in the current year: 67% | % of target achieved relative to base year: 75% | |
| To reduce absolute scope 3 GHG emissions from employee commuting 50% from a FY2019 base year | % of target achieved in the current year: 108% | % of target achieved relative to base year: 88% | |
| Electricity | |||
| Electricity purchased | 159,889 MWh | 190,901 MWh | GRI 302-1 TC-SI-130a.1 |
| Total renewable energy purchased | 158,097 MWh | 190,901 MWh | GRI 302-1 Principle 8 |
| Total Energy Attribute Credits (EACs) purchased | 70,280 MWh | 79,984 MWh | GRI 302-1 Principle 8 |
| Renewable energy purchased (excluding EACs) | 87,817 MWh | 111,007 MWh | GRI 302-1 Principle 8 |
| Percentage of renewable energy globally | 99.88% | 100.00% | GRI 302-1 TC-SI-130a.1 Principle 8 |
| Energy intensity square footage metric | 31 kWh/sqft | 29 kWh/sqft | GRI 302-3 |
| Reduction of energy consumption | VMware 2021 CDP Climate Change response; Section C4.3 | VMware 2022 CDP Climate Change response; Section C4.4 | GRI 302-4 Principle 8 |
| Percentage of grid electricity | N/A | 12.42% | GRI 302-1 TC-SI-130a.1 Principle 8 |
| Waste | |||
| Waste generation (tons) | 120 | 331 | GRI 306-2 |
| Recycling (tons) | 54 | 261 | GRI 306-2 |
| Compost (tons) | 56 | 16 | GRI 306-2 |
| Landfill (tons) | 9 | 54 | GRI 306-2 |
| Landfill diversion rate | 92% | 84% | Principle 8 |
| Waste programs coverage (% of global square footage) | 50% | 56% | |
| E-Waste | |||
| Total e-waste generated globally (MT) | 91.34 MT | 119 MT | GRI 306-2 |
| Total e-waste processed at R2 certified facilities (% of total e-waste generated) | 95% | 96% | GRI 306-2 Principle 8 |
| E-waste disposal by region (%) | |||
| AMER | 75% | 66% | |
| APJ including India | 20% | 25% | |
| EMEA | 5% | 9% | |
| Water | |||
| Water consumed | 158,000,562 (gallons) | 143,451,942 (gallons) | GRI 303-5 TC-SI-130a.2 |
| Water consumption coverage (percentage of global square footage) | 62% | 64% | |
| Total water withdrawn in m³ | VMware does not have significant withdrawals from freshwater sources. | VMware does not have significant withdrawals from freshwater sources. | TC-SI-130a.2 |
| Built Environment | |||
| LEED certifications | 19 | 20 | |
| Percentage of square footage in green building certified space | 42% | 39% | Principle 8 |
| Wenatchee Data Center Power Usage Effectiveness (PUE) | 1.29 | 1.29 | GRI 302-3 TC-SI-130a.1 |
| Portfolio Square Footage | 6,242 (in thousands) | 6,665 (in thousands) | |
| Supply Chain | |||
| Engagement with supply chain on climate issues | We engage with approximately 250 suppliers each year on the CDP Supply Chain platform to understand our supplier base climate maturity. These suppliers represent roughly 75% of our procurement spend and about 61% of total scope 3 emissions in FY21. At the end of 2020, we launched our Responsible Sourcing Program to deepen our supplier engagement. | We engage with approximately 250 suppliers each year on the CDP Supply Chain platform to understand our supplier base climate maturity. These suppliers represent roughly 75% of our procurement spend and about 71% of total scope 3 emissions in FY22. | GRI 102-9, 308-1 Principle 8 |
| Science-Based Target: VMware commits that 75% of its suppliers by spend (approximately 250 suppliers) covering purchased goods and services, capital goods, upstream leased assets and upstream transportation and distribution will have science-based targets by FY2025 | 24% of our suppliers have set or committed to science-based targets as of FY21. | 37% of our suppliers have set or committed to science-based targets as of FY22. | GRI 102-9, 308-1 Principle 8 |
Partnerships
VMware collaborates and co-innovates with our expansive ecosystem of customers and partners. Together, we enable digital innovation that can change the world.
Accounting for Sustainability (A4S)
Serving as an active member, inspiring action by finance leaders to drive a fundamental shift towards resilient business models and a sustainable economy.
Clean Energy Buyers Association (CEBA)
Supporting through active board membership and proud signatory of the Energy Buyer Federal Clean Energy Policy statement.
RE100
Early signatory to global collaborative representing businesses committed to using 100% renewable electricity in partnership with the Climate Group and CDP.
World Economic Forum (WEF)
Serving as an active member with WEF, a non-partisan, nonprofit organization that engages prominent, political, business and other leaders.
US National Science Foundation (NSF)
NSF and VMware support multiple projects with a goal of fostering transformative research that changes how we work tomorrow.
1t.org
Pledging to accelerate nature-based solutions with a commitment to plant and protect one million trees by 2030.
The Climate Pledge
Pledging to address the climate crisis and solve the challenges of decarbonizing our economy.
The Valuable 500
Serving as a member to unlock the business, social and economic value of more than 1 billion people with disabilities around the world.
Awards & Recognition
VMware is proud to be recognized for our ESG performance by our peers and partners across industries.
Dow Jones Sustainability Index
America’s Most Trusted Companies
AA MSCI ESG Rating
Silver EcoVadis Rating
America’s Most Just Companies
America's Most Responsible Companies
Best Place to Work for Disability Inclusion
Forbes’ Best Employers for Diversity
2022 ESG REPORT
At VMware, we are committed to advancing Sustainability, Equity and Trust.