NEXTDC, an ASX 100-listed technology company and Asia’s most innovative Data Centre-as-a-Service provider, has outlined its environmental, social, and governance (ESG) commitments amid growing regulatory scrutiny and customer pressure. The company is focused on reducing greenhouse gas emissions and improving water efficiency to meet evolving stakeholder expectations.
Material actions and disclosures
NEXTDC has committed to achieving net zero Scope 1 and Scope 2 greenhouse gas emissions by 2050. The company is also working to reduce water intensity and maintain water efficiency levels that align with customer requirements. These actions are part of NEXTDC’s broader sustainability strategy, which includes the use of renewable energy sources and delivering world-class operational efficiency.
The company’s operations are subject to various environmental laws, including those relating to air pollution control, water pollution control, waste disposal, noise pollution control, and the use of electrical back-up infrastructure. NEXTDC has stated that its operating portfolio and Forward Order Book of 565MW are unaffected by proposed reforms.
Forward commitments
NEXTDC aims to secure adequate renewable energy supply and acquire sufficient large-scale generation certificates or carbon credits to offset emissions from electricity consumption. The company also plans to maintain optimal facility design, engineering, and operational controls to reduce operating costs and meet efficiency targets.
Additionally, NEXTDC is committed to maintaining a strong safety culture across operations and construction activities to prevent workplace accidents and incidents. The company is also evaluating growth-driven initiatives, including potential acquisitions of new data centre sites, businesses, or investments, both domestically and internationally.
These commitments reflect NEXTDC’s ongoing efforts to address the physical and transition risks associated with climate change, as well as the evolving nature-related disclosure and stakeholder expectations.
Attributed to NEXTDC’s announcement, the company’s ESG commitments are designed to enhance its reputation and maintain its competitive position in the data centre industry.