Permanent carbon removals planned to neutralize residual emissions at net-zero endpoint (2050) Oracle intends to neutralize residual emissions with permanent carbon removals at the end of its 2050 net-zero target. Oracle does not plan to purchase and cancel carbon credits for neutralization or beyond value chain mitigation in the near term. Planned milestones and near-term investments for neutralization are marked confidential. Oracle is exploring Carbon Capture, Utilization and Storage (CCUS) as part of its micro-grid solution evaluation for data centers. No specific DAC or BECCS contracts have been disclosed.
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Dependent: Hardware product energy efficiency via Design for Environment and Energy Star certification Oracle's Design for the Environment (DfE) program guides engineers to prioritize recyclability, reuse, and energy efficiency in hardware product design. Oracle's products comply with global regulatory standards for power efficiency. Oracle continues to obtain ENERGY STAR certification for server products used in Engineered Systems and Oracle Cloud Data Centers. Scope 3 Cat 11 (use of sold products) emissions totaled 96,771 tCO2e in FY25, calculated from hardware power consumption, utilization rates, and regional grid emission factors. Oracle's hardware take-back programs and remanufactured parts reduce end-of-life impacts.
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Shift from CY to FY reporting period + new Scope 3 categories added Oracle shifted from calendar year (CY) to fiscal year (FY) reporting period. Scope 3 Categories 7 (employee commuting), 8 (upstream leased assets), and 11 (use of sold products) were included for the first time, having previously been excluded due to immateriality or lack of data, or miscategorized. Emission factors for Categories 1 and 2 were also updated to be more temporally and geographically relevant.
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Primary: Data center energy efficiency and power usage effectiveness improvement Oracle deploys next-generation architecture based on Open Compute Project standards to design scalable, energy-efficient data center infrastructure. Specific measures include phase-shedding voltage regulator designs, power supplies meeting global regulatory efficiency standards, UPS optimization, chiller replacement, HVAC setpoint optimization, and LED lighting upgrades. Oracle targets ENERGY STAR, LEED, and BOMA 360 certifications. In FY25, HVAC optimization alone saved ~1,997 tCO2e and $354K. VEPO (Virtual Emergency Power Off) and Infrawatch automated monitoring manage cooling resilience.
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Scope 3 Cat 2 Capital Goods increased significantly due to methodology update Scope 3 Category 2 Capital Goods jumped from 1,292,716 tCO2e in FY2024 to 6,961,412 tCO2e in FY2025, a 5.4x increase, primarily due to expanded data center capital expenditure (OCI growth) and updated supplier-specific emission factors using Refinitiv database data.
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Primary: Business travel reduction (25% air travel emissions reduction target) Oracle's Environmental Policy includes a commitment to a 25% reduction in employee air travel emissions. Business travel is reported as Scope 3 Cat 6 and was 58,338 tCO2e in FY25, down from 82,056 tCO2e in FY24. Oracle tracks air travel using a dedicated reporting tool, characterizing trips as short-, medium-, or long-haul. Employee commuter benefits include ride-sharing programs, EV charging stations, and alternative transport options across North America.
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CY2020 base year recalculated to include Cerner and methodology changes Base year CY2020 emissions were recalculated for Scope 1, Scope 2 (location-based and market-based), and Scope 3 to account for the acquisition of Cerner Corporation and for methodology changes including shifting to FY reporting and adding new Scope 3 categories. Past years were not recalculated.
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Dependent: Supply chain engagement: requiring supplier emissions reduction targets and environmental programs Oracle engages key hardware suppliers (Tier 1 and Tier 2) representing ~96% of direct supplier spend via annual sustainability surveys aligned with the RBA framework. Oracle set a target for 100% of key suppliers to have environmental programs by 2025 (achieved: 100%) and 80% of key suppliers to have emissions reduction targets by 2025 (achieved: 84% for direct, 81% for indirect). Oracle uses EcoVadis for indirect supplier engagement and the RBA Emissions Management Tool (EMT) for direct hardware suppliers. CDP disclosures are also collected from key suppliers to complement supply chain risk assessments.
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100% renewable electricity by 2025 via RECs, GOs, green tariffs and VPPAs OCI purchases renewable energy through RECs, Guarantees of Origin (GOs), and green tariffs where applicable. Oracle is identifying virtual power purchase agreement (VPPA) deals to create additional local renewable energy for Oracle data centers. In FY25, 91% of total electricity consumption was renewable and 90% of OCI electricity was renewable. Oracle participates in RE100 and Clean Energy Buyers Alliance (CEBA). As Oracle expands its portfolio, it is evaluating micro-grid solutions including on and off-site renewable generation, battery energy storage systems (BESS), and Carbon Capture, Utilization and Storage (CCUS) opportunities. The estimated spend in FY25 on renewable energy and RECs was approximately $6.4 million.
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Primary: Renewable electricity procurement for OCI cloud data centers Electricity from OCI data centers represents approximately 88% of Oracle's total electricity consumption, making renewable energy procurement the single largest lever for Scope 2 reduction. Oracle covers colocation and OCI load through unbundled RECs (US-RECs and Indian RECs), green tariffs, and supplier-procured renewable energy. In FY25, 90% of OCI electricity consumption was renewable. Oracle tracks coverage by site and MWh volume and aims to match 100% of electricity consumed with environmental attribute certificates (EACs).
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