Sustainability and ESG: Understanding the Difference and Why It Matters

Environmental, social, and governance (ESG) is a significant framework that can shape a company's reputation and impact its long-term success. ESG evaluates a company's environmental impact, social responsibility, and corporate governance. This approach ensures that companies are actively considering environmental sustainability, contributing positively to society, and being managed with high levels of accountability.

The ESG criteria encompass many factors and considerations within its three categories, providing a comprehensive view of a company's sustainability and responsibility. Its scope includes:

• Environmental: How a business manages its impact on nature, such as efforts to reduce carbon emissions or minimize toxic waste

• Social: How a business manages relationships with employees, suppliers, customers, and communities (this includes practices related to diversity, talent acquisition and retention, and community engagement)
  

• Governance: How a business remains accountable and transparent in the business community (this includes practices such as audits, shareholder rights, leadership structure, and internal controls)

Each pillar of the ESG framework is highly adaptable and applies differently depending on a company’s unique factors, such as location and business model. This adaptability is a key strength, making the framework valuable for understanding whether companies are driving real change or just checking a box.

At Akamai, we take ESG very seriously. We have incorporated these basic principles into five fundamentals.

1. Sustainability

2. People

3. Communities

4. Governance

5. Data privacy and security

By structuring our ESG approach according to our fundamental categories, we can strategically position ourselves to take advantage of potential growth and business opportunities. Taking a coordinated approach also enables us to carefully pinpoint and evaluate promising investment prospects, draw and maintain high-caliber talent within our organization, foster an environment conducive to innovation, aid in generating cost efficiencies, and guarantee adherence to regulatory standards.

In the world of ESG, continuous improvement is paramount. Thanks to the collaborative efforts of teams across Akamai, we have made significant improvements in these areas. However, we recognize that additional tasks lie ahead, and we are committed to building upon these achievements to make an even greater impact in the future.

Sustainability, however, is specifically focused on environmental impact. It is a broad concept that encompasses practices and initiatives that address ecological concerns, reduce carbon footprint, conserve natural resources, and promote biodiversity.

Sustainability refers to strategies and actions that aim to meet the needs of the present without compromising the ability of future generations to meet their own needs.

On an individual level, modern living requires significant amounts of energy to power our homes, run our computers, and travel away from home (whether by car, bus, train, or plane).

As a society, we have a responsibility to reduce or mitigate environmental impact by engaging in sustainable practices, while ensuring that people everywhere can maintain a healthy standard of living.

On a corporate level, there is an environmental cost to running a business like Akamai. The more power we use, the more significant the potential impact is on the environment. We recognize that achieving our sustainability goals requires a clear and measurable plan of action. For many companies, sustainability often includes:

• Performing carbon footprint analysis: Calculating the total greenhouse gas emissions from all company activities, such as energy use, transportation, manufacturing, business travel, and remote work (carbon footprint visibility helps companies make decisions that reduce emissions and while maintaining customer expectations)
  

• Employing sustainable practices: Reducing carbon emissions by investing in energy efficiencies, waste reduction, sustainable sourcing, and water conservation and recycling
  

At Akamai, we pursue these same activities with five specific goals in mind — and we are committed to achieving these goals by 2030:

1. Net-zero emissions: Taking an “emissions first” approach to decarbonizing our infrastructure

2. 100% renewable energy: Powering our entire platform and operations with renewable energy

3. Build efficiencies: Continuously working to improve our services while reducing our impact on the planet through process improvement, software performance, and hardware optimizations 

4. Supplier engagement: Collaborating with our suppliers to understand their approach to reducing their carbon footprint, promoting renewable energy, and enhancing overall facility efficiency 

5. Circularity: Building a holistic approach to support our goals through lifecycle management, best-in-class e-waste practices, customer and employee engagement, community events, and public advocacy

Akamai approaches ESG priorities not as isolated initiatives, but as fundamental components of a holistic strategy to be the most innovative and high-performing company we can be — on all fronts. That means operating our business in ways that we believe best serve the interests of all our stakeholders, including our customers, shareholders, employees, partners, communities, and our planet.