Global Impact Report

Transcription

Globalimpactreport2019

Table of contents3Message from our CEO4About this report6Social impact13Environmental impact18Employee inclusion and culture23Responsible business practices27Appendix/additional resources

SECTION ONEMessagefrom our CEOZendesk has always been about removing barriersbetween people. Our products remove frictionbetween businesses and customers, and we tryto make it as easy as possible for people to dobusiness with us.And this idea of service and removing barriers goesbeyond our core business of customer experiencesoftware. We try to be as active as we can in thecommunities where we’re located and in the worldgenerally. Not only is it the right thing to do, but italso makes our company and our products better.We’re living at a time where being involved is moreimportant than ever. As people and organizationsrecover from the social and economic impact ofCOVID-19, companies like ours have an even biggerresponsibility to help rebuild our communities.leadership. We want people from differentbackgrounds and perspectives to thrive and makeus a stronger company.There is even more that we want to do as acompany. For example, we are making newenvironmental commitments to power our globaloffice with all renewable energy by 2021 and reacha carbon footprint of net zero in our hostingoperations by 2022.Our first Global Impact Report gives you a glimpseinto how we’re trying to be helpful in our localcommunities and impact the world around us. I hopeyou will join us in the journey.We’re committed to doing that in the localcommunities across our offices in 10 countries. Itstarts with being out in our communities. Throughvolunteering, our more than 3,500 employees buildmore empathy for people living different experiencesthan our own. It gives us a broader perspective as acompany and improves our work.We also directly support organizations with grantsthrough our Neighbor Foundation, and offer othersdirect access to Zendesk products and expertisethrough our Tech for Good program. Both help ourlocal nonprofit partners make a bigger impact.Our social responsibility initiatives also attract greatpeople to Zendesk. We focus on diversity, equity, andinclusion in our hiring, workplace experience and2019 Zendesk Global Impact ReportMikkel SvaneCEO, Zendesk3

S E CT I O N T WOAboutthis reportAbout ZendeskThe best customer experiences are built withZendesk. Our customer service and engagementproducts are powerful and flexible, and scale to meetthe needs of any business. Zendesk servesbusinesses across a multitude of industries, withmore than 160,000 paid customer accounts offeringservice and support in over 30 languages. Learnmore at www.zendesk.com.Social impact is core to Zendesk’s culture and brand.We believe we have a responsibility to use ourplatform for good, approach complex social issueswith empathy, and put human relationships at theforefront of engagement. We do this so we canmaintain perspective, focus on issues bigger thanourselves, and create a work culture that prioritizespurpose over perks.This 2019 Global Impact Report is Zendesk’s firstcomprehensive Environmental, Social, andGovernance (ESG) report. The data shared here willform the baseline data for comparing our progress infuture reports. The data shared in this report is limitedto the Company’s operations for our fiscal year 2019(January 1, 2019 through December 31st, 2019, unless2019 Zendesk Global Impact Reportotherwise noted). Zendesk acquired SmoochTechnologies Holdings ULC in May 2019 and thereport includes these employees as part of ourreporting. The data in this report may contain figuresthat are approximated or rounded based on the bestmeasurements we have available to us.All Environmental data around our greenhouse gas(GHG) emissions was prepared by Anthesis Groupand reviewed by internal Zendesk stakeholders. AsZendesk continues to improve our data collectionand analysis processes, we will adjust our GHGaccounting to ensure the information provided is asaccurate as possible.This report has not been assured by a third party.4

This report contains forward -looking statements,including, among other things, statements regardingZendesk’s future financial performance, its continuedinvestment to grow its business, and progress towardits long- term financial objectives. Words such as“may,” “should,” “will,” “believe,” “expect,” “anticipate,”“target,” “project,” and similar phrases that denotefuture expectation or intent regarding Zendesk’sfinancial results, operations, and other matters areintended to identify forward -looking statements. Youshould not rely upon forward -looking statements aspredictions of future events.The outcome of the events described in theseforward -looking statements is subject to known andunknown risks, uncertainties, and other factors thatmay cause Zendesk’s actual results, performance, orachievements to differ materially, including thosemore fully described in Zendesk’s current and futurefilings with the Securities and Exchange Commission,including its Annual Report on Form 10-K for the yearended December 31, 2019 and its Quarterly Report onForm 10 -Q for the quarter ended March 31, 2020.This presentation utilizes certain trademarks andservice marks for reference purposes. All suchtrademarks and service marks are and remain theproperty of their respective owners.Sustainable Development GoalsalignmentAt Zendesk, we feel it’s important to contribute to thelarger global effort to tackle many of the world’slargest issues, by aligning our work to the UnitedNations Sustainable Development Goals initiative(SDGs).In total, our products, services, and social impactstrategies are aligned with eleven of the SustainableDevelopment Goals, at the target level.Forward- looking statements represent Zendesk’smanagement’s beliefs and assumptions only as of thedate such statements are made. Zendesk undertakesno obligation to update any forward- lookingstatements made in this presentation to reflect eventsor circumstances after the date of this presentation orto reflect new information or the occurrence ofunanticipated events, except as required by law.This report includes a number of operating metricsthat Zendesk uses to evaluate its business, measureperformance, identify trends, formulate businessplans, and make strategic decisions. Please seeZendesk’s filings with the Securities and ExchangeCommission, including its Annual Report on Form10-K for the year ended December 31, 2019 and itsQuarterly Report on Form 10 -Q for the quarter endedMarch 31, 2020 for details regarding the definitionand calculation and its operating metrics.2019 Zendesk Global Impact Report5

SECTION THREESocial impactSocial impact is a company-wide commitment toprograms and practices that promote authentic,human-to-human connection. It is how we live ourcompany values, and work toward our goal to bea good neighbor in our communities. Learn moreon our social impact page.The ZendeskNeighbor FoundationWhen we founded the ZendeskNeighbor Foundation in 2014 (the“Neighbor Foundation”), we werevery clear about one thing: wewanted to bring a hands-on andhyperlocal approach to ourgrantmaking strategy. Five yearslater, this decision remains one ofthe defining aspects of the NeighborFoundation, and a large part of whatmakes it unique among its peers.The Neighbor Foundation funding istied to our revenues, which meanswhen Zendesk does well, we can doeven more for our communitiesaround the world.2019 Zendesk Global Impact Report“Empathy helps us look at thecomplicated and nuanced issuessurrounding homelessness andpoverty and approach thoseissues humbly. It lends contextand urgency to our goals forequality and equity.Elena GomezChief Financial Officer, Zendesk6

In 2019, the Zendesk Neighbor Foundation distributed9058grants 1,322,000nonprofitstotalGrant-giving goalBoard of Directors100,000Mikkel SvaneChief Executive Officer,Improve the lives of 100,000 people annually bysupporting neighborhood nonprofits with grantsand volunteersZendeskJohn GeschkeReachChief Legal Officer andChief of Staff, ZendeskThe Neighbor Foundation supports close to:VP Public Policy andSocial Impact, Zendeskcountries worldwideWe view grantmaking as much morethan a box to check. For us, beinghelpful means we use grants to buildlong-lasting and meaningfulrelationships. Nearly every grant theNeighbor Foundation distributesglobally results in at least one eventwhere Zendesk volunteers cometogether to support the nonprofitand the population it serves withtheir time, attention, and skills.2019 grants - Zendesk Neighbor 019 Zendesk Global Impact ReportNonprofits supportednonprofits10Grants distributed58Tiffany ApczynskiEuropeAsiaGlobal7

“The Zendesk Neighbor Foundationgrant recipients are indeed ourneighbors. When giving money, wedeliberately choose organizationswho are working to strengthenneighborhoods in and aroundwhere Zendesk does business. Thisproximity to our nonprofit partnersmeans that instead of being ananonymous entity, tucked away inan office, we can play a positive rolein the larger ecosystem where ouroffices exist. We can be neighbors,friends, and authentic partners.Tiffany ApczynskiVP Public Policy and Social Impact, Zendesk2019 Zendesk Global Impact Report8

The 6-Hour Pledge is our global company campaign toinspire everyone to volunteer at least 6 hours per year.Through strong partnerships with local nonprofits, wemake many volunteer opportunities available to Zendeskstaff. Employees are encouraged to use paid time tovolunteer and make a difference in our communities.Employee volunteering:the Zendesk wayWe believe volunteering in our communities is one ofthe best ways to promote empathy and inclusion.Zendesk supports employees taking time out of theirwork day to volunteer, with many opportunitiesavailable to them throughout the year. We’re gratefulfor the strong partnerships we’ve developed withnonprofits around the world and proud of our trackrecord of annual volunteer hours, which outpacesmost companies our size.By volunteering with organizations that supportat-risk populations, our employees integrate into thefabric of our neighborhoods, foster empathy andexperience greater job satisfaction—contributing toour reputation as a responsible corporate citizen. 560,000Zendesk employees helped out in our communitiesaround the globe for over 22,000 hours.Those 22,000 hours translate into nearly 560,000in labor value.112/3In 2019, two-thirds of employees participatedin our community engagement programs for atleast one hour.1/3In 2019, one-third of our employees completed6 hours or more. This commitment has hada direct impact on our communities and ouremployee experience.This value is based on an estimation from Independent Sector: ime-2018/2019 Zendesk Global Impact Report9

Global Volunteering Impact1501,00046,484Cycling Without AgeForces for LondonGlide MemorialCycling Without Age, a long-timeZendesk nonprofit partner,addresses a growing crisis: seniorisolation. Studies show that isolationand loneliness are as deadly assmoking. Many seniors who live inisolation struggle with mental illnessand develop hoarding tendencies,among other issues.Zendesk’s London office haspartnered with Forces for London tosupport ex-military who are lookingfor work. Volunteers started byhosting a LinkedIn workshop forveterans, created and executed bythe Recruitment team as partof a skilled volunteering program.The session walked participantsthrough some crucial first steps inthe employment process: creatinga strong LinkedIn profile andmarketing themselves online.In 2019, Zendesk volunteers gaveover 1,000 hours to GLIDE’s freemeals and harm reduction programs.Volunteers prepared and servedover 2,000 meals for needyresidents within one of SanFrancisco's poorest neighborhoods,the Tenderloin. Twice a month, ourvolunteers worked closely withGLIDE’s Harm Reduction Team tobuild harm reduction kits for peoplestruggling with opioid addiction.Through this volunteer experience,employees made a meaningfulimpact by putting together over 200kits per session, learned about SanFrancisco’s opioid epidemic, andexperienced true empathy for anextremely marginalized group withinthe community.seniors taken outon city toursmentoring sessionsmeals servedPartner profilesThrough programs in six of ourglobal offices, Zendesk volunteerstrain to become pilots so they cantake seniors to parks, along bikepaths and out and about in their city.Part of the therapy is simply gettingoutside; just as important is theexchange of stories and conversationwith caring volunteers.2019 Zendesk Global Impact Report10

Volunteering impacts Zendesk’semployee experience8 pointsZendesk employees who volunteer score 8 pointshigher than the average employee in terms ofengagement“Donating technology and expertiseIn addition to giving grants and volunteering time, weempower community nonprofits by donating Zendesksoftware and implementation expertise through ourTech for Good program.At a glance stats: 322,000Software donated in 2019Experiences and programsthat connect us to one anotherhelp everyone be betterneighbors. We grow moreas a community when weunderstand, listen, and showup for each other.Mikkel SvaneCEO, Zendesk90 Hrsof professional services donatedThese nonprofits have used Zendesk to help managedonor and fundraising questions (Madison Children’sMuseum), improve internal operations (St. KildaMums) and build technical literacy in children whomight not otherwise have access to software (InsitutoDa Oportunidade Social). Our approach to donatingour product is consistent with our hyperlocal strategyof volunteering: namely, we take the time to get toknow an organization, understand its needs, and,guided by empathy, find ways to help.Growing volunteering and employeesVolunteer 19 Zendesk Global Impact Report201911

The International Rescue Committee (IRC) responds to the world’s worst humanitariancrises and helps people whose lives and livelihoods are shattered by conflict anddisaster to survive, recover and gain control of their future. In November 2019, Zendeskand IRC launched a formal partnership as part of Zendesk’s Tech for Good programming.Zendesk software - donated to IRC free of cost - is helping IRC to assist asylum-seekingfamilies who have been released from ICE (U.S. Immigration and Customs Enforcement)detention centers after a harrowing experience. Often victims of gang violence andextortion in their home countries, these individuals and families make a brutal trip to theUS border seeking asylum. For many, their time spent at IRC’s Welcome Center inPhoenix will be the first positive experience they have had in months.“Awaiting trial for asylum in the United States, families are required to follow a multi-stepprocess. Our partnership has strengthened the systems that allow IRC to provideservices to these families throughout the milestones in their asylum process, helping toensure no man, woman or child asylum seeker falls through the cracks. Using Zendesk,IRC is better able to facilitate continued case management to families from the time theyenter the US, making the process smoother and less stressful for families.The International Rescue Committee (IRC) is tremendously grateful for thepartnership with Zendesk. Zendesk’s support – including the company’sdonation of product, professional services, and employee engagement— is having a direct, positive impact on IRC’s efforts in the United Statesto efficiently and effectively help asylum seekers fleeing conflict anddisplacement. By collaborating around respective expertise in the tech andhumanitarian sectors, we’ve been able to form a truly innovative partnership.Lauren GraySenior Director of Global Corporate Partnerships2019 Zendesk Global Impact Report12

SECTION FOUREnvironmentalimpactOur strategy and focusAs a global company with offices in more than 10countries, we're dedicated to supporting countrylevel climate goals. To that end, we are committed topowering our global offices with 100% renewableenergy by 2021 and reach a carbon footprint ofnet-zero in our hosting operations by 2022. We willalso focus on reducing the waste generated in ouroffices and at our events, by educating ouremployees on recycling and composting, and makingmore sustainable choices for all large internal andexternal events.To limit global warming to1.5 C, global carbon emissionsneed to fall by a staggering45 percent by 2030 from2010 levels.Zendesk recently joinedWe Are Still In, a group ofover 3,750 leaders mobilizedin support of the ParisAgreement.Learn more at:www.wearestillin.comUnited Nations2019 Zendesk Global Impact Report13

Energy & emissionsWe partnered with Anthesis Group to analyze our 2019 global greenhouseemissions. Accurately tracking our energy and emissions from businessoperations in 2019 is our first step and this data will form our baseline forfuture years. Next, we’re working to understand where we can reduce ourScope 1, 2, and the following Scope 3 emissions.Emissions sourceMTCO2ePercent of total7362%Scope 1 emissionsLeased officesScope 2 emissionsLeased offices (location based)2,1512Leased offices (market based)8252%Purchased goods & services35,18574%Air travel13,93629%Employee commute1,1662%Carbon offsets purchased-4,3409%Total emissions47,508Scope 3 emissions3We believe that our ability to become a net-zero emitter for our Scope 1 and2 emissions will be achievable by 2021 and for our hosting operationsby 2022. We will also be analyzing strategies for bringing down our materialScope 3 emissions by 2030 despite our forecasted growth as a companyduring that time. This figure reflects general location-based emissions and does not relate to Zendesk-specific emissions.Accordingly, this figure is excluded from our calculation of "total emissions" and "percentage of total" disclosures.3Zendesk chose to publicly share these material scope 3 emissions sources after a review with internal stakeholders.22019 Zendesk Global Impact Report14

2019 highlights:Reducing waste and usage4We estimate that approximately 400 pounds of wasteis created per U.S. employee per year while workingin our offices.4Four of our leased office buildings weresuccessfully converted to 100 percentrenewable energy power in 2019. In 2020, weintend to convert seven additional offices.Reducing waste at our offices60%In an effort to divert as much waste as we can fromour leased offices, we have implemented compostingat 43% and recycling at 100% of our offices in whichwe exercise control over the waste program.Approximately 60 percent of the customeractivity/transactions that we processed wasrun from AWS carbon neutral data centers inPortland, Frankfurt, and Dublin.Reducing waste at our officesYes4,340 tonsWe partnered with Natural Capital Partners in2019 to purchase carbon offsets equivalent to4,340 tons of Co2e through two certifiedprojects: one in the Brazlian Rainforest, andone in Guatemala.NoRecyclingComposting100%43%We’re working to do the following: Educate employees annually on the impact thatrecycling and composting has on theircommunities, their health, and the environment viaour employee Green Teams Reduce the snacks we provide employees thatcome in single-use packaging Eliminate beverages that come in plastic bottlesfrom many of our offices Source third-party composting services inour offices that do not have a governmentprovided option Implement reusable containers for employeelunches via partnerships with local restaurants42019 Zendesk Global Impact Report his estimate is based on an analysis of our San Francisco offices with ourTwaste management provider and combined with EPA weight estimations.15

Reducing waste at our eventsEmployee Green TeamsWe’re working to implement new policies so

Zendesk. Our customer service and engagement products are powerful and flexible, and scale to meet the needs of any business. Zendesk serves businesses across a multitude of industries, with more than 160,000 paid customer accounts offering service and support in over 30 languages. Learn more at www.zendesk.com.