Xero
Xero Limited, commonly known as Xero, is a leading cloud-based accounting software provider headquartered in New Zealand. Founded in 2006, Xero has rapidly expanded its operations across major regions, including Australia, the United Kingdom, and North America, establishing itself as a key player in the financial technology industry. Xero offers a suite of innovative products designed to simplify accounting for small to medium-sized businesses. Its unique features, such as real-time collaboration and automated bank feeds, set it apart from traditional accounting solutions. With a strong market position, Xero has garnered numerous accolades, including recognition as one of the fastest-growing software companies globally. The platform's commitment to user-friendly design and robust functionality continues to drive its success in the competitive accounting software landscape.
DitchCarbon Score
How does Xero's carbon action stack up? DitchCarbon scores companies based on their carbon action and commitment to reducing emissions. Read about our methodology to learn more.
Industry Average
Mean score of companies in the Computer Services industry. Comparing a company's score to the industry average can give you a sense of how well the company is doing compared to its peers.
Industry Benchmark
Xero's score of 56 is higher than 76% of the industry. This can give you a sense of how well the company is doing compared to its peers.
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Xero's reported carbon emissions
In 2025, Xero reported total carbon emissions of approximately 55,996,000 kg CO2e, with Scope 1 emissions at about 18,000 kg CO2e, Scope 2 emissions at approximately 153,000 kg CO2e (market-based), and a significant Scope 3 total of about 54,825,000 kg CO2e. The Scope 3 emissions breakdown includes business travel (about 13,299,000 kg CO2e) and purchased goods and services (approximately 37,416,000 kg CO2e). Xero has set ambitious climate commitments, aiming for net-zero emissions across all scopes by no later than FY50. They have established near-term targets to reduce Scope 1 and 2 emissions by 42% from FY20 levels by FY30, and a 17% reduction in Scope 3 emissions over the same period. Additionally, they have committed to a 60% reduction in Scope 1 and 2 emissions by FY34 from a FY24 baseline. The company is also aligned with the Science Based Targets initiative (SBTi), committing to a 58.8% reduction in absolute Scope 1 and 2 emissions and a 35% reduction in Scope 3 emissions from purchased goods and services and business travel by FY34. These targets reflect Xero's commitment to maintaining emissions reductions consistent with limiting global warming to 1.5°C. Xero's headquarters is located in New Zealand, and their sustainability efforts are part of a broader industry trend towards greater accountability and action on climate change.
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| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Scope 1 | - | - | - | - | 000,000 | 00,000 |
| Scope 2 | - | - | - | - | 00,000,000 | 000,000 |
| Scope 3 | 11,721,000 | 0,000,000 | 0,000,000 | 00,000,000 | 00,000,000 | 00,000,000 |
Industry emissions intensity
Location emissions intensity
Reduction initiatives & disclosure networks
Companies disclose and commit to reducing emissions to show they are serious about reducing emissions impact over time. They can also help a company track its progress over time.
Xero is participating in some of the initiatives that we track. This may change over time as the company engages with new initiatives or updates its commitments. DitchCarbon will update this information as it becomes available.
