3.6.2 - Provide the amount and proportion of your financial metrics in the reporting year that are aligned with the substantive effects of environmental opportunities.

3.6.2 Provide the amount and proportion of your financial metrics in the reporting year that are aligned with the substantive effects of environmental opportunities.

Environmental issue

Financial metric

Amount of financial metric aligned with opportunities for this environmental issue (unit currency as selected in 1.2)

% of total financial metric aligned with opportunities for this environmental issue

Explanation of financial figures

Climate change

CAPEX
20,000,000
Less than 1%

A portion of Akamai's facility build out CAPEX has been directed towards enhancing energy efficiency within its data centers, a critical component of its Net-Zero Emissions and 100% Renewable Energy targets—investments in energy-efficient infrastructure, servers, containment, and new and emerging technologies have allowed Akamai to reduce its Scope 1 and Scope 2 emissions, improving the sustainability profile of its data centers. The proportion of these financial metrics directly linked to environmental opportunities aligns with the global shift towards low-carbon operations, enabling Akamai to stay ahead of regulatory risks while capturing new business opportunities. Continued investment in advanced technologies, such as more advanced server hardware, helps to reduce deployment footprint while mitigating climate change risk, enhancing operational resilience, especially as investors and stakeholders increasingly prioritize environmental, social, and governance (ESG) criteria.

 

Forests

No response provided
No response provided
No response provided
No response provided

Water

No response provided
No response provided
No response provided
No response provided
Climate change
OPEX
18,000,000
Less than 1%

Our operational expenses present a significant opportunity for Akamai to reduce costs and enhance sustainability in response to climate change. Specifically, our data centers, which are a major part of our OPEX, are highly energy-intensive. This figure represents implementing energy efficiency measures, such as advanced cooling systems along with our providers, server virtualization through our compute business, and efficient hardware and software across our deployments; these efforts can significantly reduce our energy consumption. While enhancing energy efficiency across our global platform, it has been projected that avoiding unneeded deployments can achieve potential annual savings of $10 million to as much as $20 million in a calendar year, considering the yearly energy expenditure across our global hardware deployments. These savings efforts represent a significant reduction in energy-related operational expenses as a proportion of our total OPEX. These implicit cost reductions through ongoing efficiency will contribute to Akamai's sustained financial performance and necessitate a dedication to environmental responsibility. Emphasizing a more streamlined operation will further bolster the company's reputation and effectively respond to the increasing needs of our clients, customers, and collaborative partners.

 

Climate change
Revenue
15,000,000
Less than 1%

Environmental opportunities contribute positively to Akamai Technologies' financial performance, but their impact is more of a supporting factor than a primary driver. The company's commitment to sustainability—such as its efforts to use 100% renewable energy and improve energy efficiency—does create value for clients who prioritize environmentally responsible partners. Still, it does not fundamentally alter the company's core revenue streams except for some products and services. The alignment between sustainability efforts and revenue generation is more indirect. While some customers, particularly those with their own sustainability goals, may find Akamai's environmental initiatives appealing, this is often just one of many factors considered in choosing to partner with the company. Akamai's primary revenue drivers remain its core technological services, such as content delivery, cloud security, and edge computing, rather than its environmental programs. While maintaining its environmental commitments, Akamai positions itself well to meet evolving market expectations, particularly in industries where corporate responsibility and environmental stewardship are gaining importance. This may help in attracting and retaining certain customers. However, the direct proportion of revenue that can be explicitly tied to environmental opportunities remains modest. The sustainability programs support the broader business strategy but are not yet a significant factor in revenue growth on their own. Environmental opportunities provide some incremental advantages and may indirectly support revenue generation by aligning Akamai with the growing sustainability expectations of specific clients; their direct impact on revenue is not a dominant factor. The company's primary financial performance is still rooted in its technical capabilities and services, with sustainability as a complementary aspect rather than a core revenue driver. The primary source of revenue for Akamai Technologies remains its core technological services, such as cloud computing, cloud security, and content delivery.

 

Climate change
Assets
10,000,000
Less than 1%

Regarding assets, Akamai's environmental opportunities have a moderate impact, particularly in infrastructure, data centers, and energy procurement. The company's commitment to sustainability helps optimize its asset management. Specific environmental initiatives can influence Akamai's core assets, global network infrastructure, and colocation locations. For instance, using energy-efficient hardware and optimized cooling systems directly contributes to maintaining and enhancing the value of these assets. These initiatives not only reduce operational costs but also extend the lifespan of the assets. Furthermore, the use of renewable energy serves as a proactive measure, mitigating potential future risks such as rising energy prices or stricter regulations, thereby protecting the company's long-term investment in its physical infrastructure. The proportion of assets directly affected by environmental efforts remains relatively small. While these initiatives improve the efficiency and sustainability of certain assets, Akamai's primary asset value still comes from its core technological infrastructure, software platforms, and intellectual property. Akamai's environmental opportunities contribute to more efficient asset use and align with its sustainability goals, but they play a secondary role in determining the overall value of the company's assets. The main focus remains on technological and infrastructure assets, with environmental efforts serving as a complement to asset management.