governance
Cultivating a responsible, inclusive and reliable supply chain is a priority for Equinix. We hold ourselves to the highest standards and expect our suppliers to act in a way which inspires confidence and trust and demonstrates stewardship.
As industry leaders, we are in a unique position to share our expertise with our suppliers, focusing on topics such as supplier diversity, inclusion and belonging, as well as engaging suppliers to set near-term science-based targets to reduce carbon emissions. We are eager to deepen our engagement programs with critical suppliers to ensure we are mutually aligned on core environmental, social and governance goals. Through this engagement, we are confident we can continue to build trust with our suppliers as we run a world-class supply chain.
The Senior Director of Supply Chain ESG & Corporate Services reports to the Chief Procurement Officer. In 2022, we began execution of our five-year Supply Chain ESG strategy. The strategy prioritizes supplier data and relationship development. Equinix’s Procurement team collaborates with the Sustainability Program Office and with senior-level leaders across Operations to further embed strategic sustainability work across the organization while bringing together internal stakeholders.
Engaging Suppliers to Set Near-Term Science-Based Targets by 2025
We are proud of our ambitious climate targets that demonstrate Equinix’s commitment to climate action to stakeholders—our investors, our customers, regulators, our communities and our employees—and propel our business towards a low carbon future. In June 2021, Equinix set near-term science-based targets (SBT), including engaging our suppliers to set their own corporate-level emissions reductions targets.
Our Supply Chain Near-term Science-Based Target
Aligned with 1.5° C global warming scenario: Equinix will engage the top 66% of its suppliers by emissions within the categories of Purchased Goods and Services, and Capital Goods to set their own science-based targets by 2025.
In 2022, Equinix made progress towards its goal of engaging 66% of its suppliers to set a science-based target with 17% of suppliers by Qualified emissions setting their own SBT.
Our Scope 3 target comes with many challenges, including coordinating with our value chain of suppliers in industries that have not previously been engaged on sustainability. We recognize the effort required by suppliers to achieve our ambitious target, by setting their own targets. We support external initiatives, such as the Bare Metal Project, which aims to empower the relationship between digital infrastructure end users and primary materials industries to accelerate decarbonization and reduce Scope 3 emissions.
Our supply chain program uses established tools and training materials from leading NGOs, such as supplier engagement materials from CDP Supply Chain, the World Resources Institute, the United Nations, and the Science Based Targets initiative (SBTi) to help our suppliers along their journey in setting science-based targets. Suppliers that are included in Equinix’s science-based target are invited to report annually through CDP. We also enhanced our request for proposal and business award process to reflect and reward supplier ESG performance.
Our suppliers are at varying stages of maturity when it comes to tracking their own emissions and setting targets. As part of our supplier engagement program for climate, we meet suppliers where they are and offer tools that help them accelerate their progress.
Supplier Diversity, Inclusion and Belonging
Diversity, inclusion and belonging (DIB) are core values at Equinix, and this extends to our supply chain. We take a proactive approach to establishing relationships with our suppliers and have reviewed our supply chain performance to broaden our social impact by continuing to make supplier diversity, inclusion and belonging one of our Supplier ESG performance dimensions.
In 2022, Equinix maintained membership with external organizations to further our Supplier Diversity, Inclusion and Belonging progress, including:
- National LGBT Chamber of Commerce (NGLCC; nglcc.org)
- Western Regional Minority Supplier Development Council (WRMSDC; WRMSDC.org)
- Disability:IN (disabilityin.org)
These organizations help us access tools, knowledge, development programs and networking opportunities with industry peers which facilitate our program growth. Through utilization of these resources, we can identify diverse suppliers that can add value to our supply chain.
Supplier Risk Management
We run an industry-leading supplier risk program that identifies and manages supplier risk to protect Equinix and its customers. In 2022, Equinix further strengthened our Supplier Risk Management program by enhancing our supplier monitoring and incorporating real-time commercial data to monitor our supply base and alert us when circumstances change. These improvements unite internal stakeholders by systematically monitoring risks and mitigation activities. As part of the Supplier Risk Management process, we introduced a formal ESG supplier assessment to each contract that mirrors the five material issues in our supply chain strategy: Human Rights; Supplier Diversity, Inclusion and Belonging; Ethics; Supplier Resource Use; and Climate Risk. This process also includes periodic Information Security quality checks.
Leading Supply Chain Management Performance
As of March 2023, our company performed in the top quartile in the Real Estate Industry for the Supply Chain Management section in the S&P Global Corporate Sustainability Assessment
To learn more about how Equinix manages our key business risks, see Risk Management.