Equinix is committed to addressing the urgency of global climate change within its operations, its value chain and the broader industry. In 2015, we signed the American Business Act on Climate Pledge voicing our commitment to the aims of the Paris Agreement to limit global warming to 1.5 degrees °C. In the past year, we have demonstrated our commitment to action through a range of initiatives including target setting, leveraging green finance and continuing to prioritize transparency around the impacts of our business.
Aligned with 1.5°C global warming scenario
|Global Climate-Neutral Target|
In January 2021, Equinix drove the development of and was a founding signatory of the newly formalized Climate Neutral Data Centre Operator Pact and Self-Regulatory Initiative alongside 31 other data center operators and 20 trade associations. The Pact marked the industry’s intention to play a leading role in transitioning Europe to a climate neutral economy, in support of the European Data Strategy and the European Green Deal, which aims to make Europe the world’s first climate neutral continent by 2050. As part of the Self-Regulatory Initiative, Equinix and other operator signatories commit to measurable and ambitious targets set for 2025 and 2030 in the following areas:
Expanding Equinix’s Commitment to Sustainability
Green bonds provide Equinix with access to favorable financing rates to invest in and prioritize projects across multiple areas of innovation including green buildings, renewable energy, energy efficiency, water efficiency, waste reduction, and clean transportation. Since the launch of our inaugural green bonds of approximately $3.7 billion from 2020 to 2021, Equinix has allocated these funds to $2.9 billion of Eligible Green Projects.
Eligible Green Projects are described in our Green Finance Framework, based on the Green Bond Principles 2018 and the Green Loan Principles 2020. The framework is a voluntary set of guidelines promoting transparency, integrity, and advancement of the standardization of disclosures in the development of green debt. A Second-Party Opinion on the environmental benefits of Equinix’s Green Finance Framework and alignment with the Green Bond Principles has been issued by Sustainalytics, a leading global provider of ESG research, ratings, and data.
More information on our progress can be found in our 2021 Green Bond Allocation and Impact Report. We are committed to publishing these reports on an annual basis to provide transparency on our progress.
“Issuing our inaugural green bonds demonstrates Equinix’s continued long-term commitment to green our data center footprint, delivering wide-reaching environmental benefits for not only ourselves and our communities but also our global customers.”
– Keith Taylor, Chief Financial Officer, Equinix
Equinix’s green bonds are as follows:
Green Bond Results
Equinix’s first Allocation and Impact Report was published in September 2021, allocating $2.9B of $3.7B green bonds.
|Investments in green data centers resulted in 526,000 MWh of energy savings through improved PUEs.|
|937,000 MWh of renewable energy is procured through VPPAs annually, resulting in a 401,000 mtCO2e avoidance in Scope 2 emissions.|
|Investments in energy efficiency projects resulted in 31,000 MWh of energy savings.|
The annual total emissions avoided from the eligible projects included in the allocation are equivalent to:
Equinix discloses its carbon emissions and progress against our science-based targets annually. A significant element of our carbon reduction strategy is our renewable energy procurement efforts. These efforts have contributed to an overall 61% reduction in Scope 1 and 2 GHG emissions since 2015, even as our business and energy consumption has grown on average of 10% per year. The table below shows some of the highlights of our progress towards decarbonizing our business.
|Scope 1||Scope 2||Scope 3|
|What Emissions are Significant||Direct emissions from data center onsite diesel emissions, refrigerants and natural gas for heating||Indirect emissions from data center electricity usage including fuel cells under PPAs and chilled water from leased assets||Indirect emissions from our data center value chain including construction activities|
|What Is Our Commitment*?||Science-based target of 50% reduction by 2030 without offsets and climate-neutral across Scope 1 and 2 by 2030||66% of suppliers by emissions** engaged to set science-based targets|
|Where Are We Towards our Goals?||180 sites with 100% renewable energy|
5,840 GWh renewable out of ~6,430 GWh electricity used
|305,500 metric tons CO2e|
(-12% since 2019 baseline)
|What Did We Do in 2021?||Aligned to install HVO capable generators to enable 90% reduction in onsite diesel emissions|
Announced Prime Power hydrogen fuel cell project and joined Clean Hydrogen Partnership in Milan, Italy (December 2021)
|Achieved 1.48 annual average PUE or 5.5% reduction YOY||Developed supplier engagement strategy and selected key suppliers|
|What Are the Next Steps?||Piloting HVO at multiple sites and qualifying the supply chain to evaluate transition away from diesel|
Operations trialing low GWP refrigerants and reviewing leakage protocols
|Energy efficiency and renewable energy improvements set within 2022 Executive Compensation|
Evaluating operational best practices and additional PPAs in new markets
|Leveraging ‘best practice’ CDP Climate Change survey to collect supplier data|
Enhancing competitive business award process with climate and diversity criteria
*All targets are against a 2019 baseline.
**Suppliers in the Categories of “Purchased Goods and Services” and “Capital Goods”, Equinix also has a 50% reduction in FERA target to be covered by renewables.
Includes all relevant Scope 3 emission categories for Equinix’s business.