Xero Sustainability Profile
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 64 is higher than 78% 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 681,000 kg CO2e, and significant Scope 3 emissions totalling around 53,297,000 kg CO2e. Notably, the largest contributors to Scope 3 emissions included purchased goods and services (about 37,416,000 kg CO2e) and business travel (approximately 13,299,000 kg CO2e). Xero has set ambitious climate commitments, aiming for a 42% reduction in Scope 1 and 2 emissions by FY30 from a FY20 baseline, and a 17% reduction in Scope 3 emissions over the same period. Furthermore, the company is committed to achieving net-zero emissions across all scopes by no later than FY50. In addition, Xero has established near-term targets to reduce absolute Scope 1 and 2 emissions by 58.8% and Scope 3 emissions from purchased goods and services and business travel by 35% by FY34, using FY24 as the baseline. These targets align with Xero's long-term strategy to mitigate climate impact and demonstrate its commitment to sustainability within the software and services sector.
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| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Scope 1 | - | - | - | - | 000,000 | 00,000 |
| Scope 2 | - | - | - | - | - | 000,000 |
| Scope 3 | 11,721,000 | 0,000,000 | 0,000,000 | 00,000,000 | 00,000,000 | 00,000,000 |
How Carbon Intensive is Xero's Industry?
How Carbon Intensive is Xero's Location?
Xero's Scope 3 Categories Breakdown
Xero's Scope 3 emissions, which increased by 310% last year and increased by approximately 376% since 2020, demonstrating supply chain emissions tracking. Nearly all of their carbon footprint comes from suppliers and value chain emissions, representing nearly all emissions under the GHG Protocol, with "Purchased Goods and Services" being the largest emissions source at 67% of Scope 3 emissions.
Top Scope 3 Categories
Xero's Climate Goals (2030 & 2050)
Climate goals typically focus on 2030 interim targets and 2050 net-zero commitments, aligned with global frameworks like the Paris Agreement and Science Based Targets initiative (SBTi) to ensure alignment with global climate goals.
Xero has established climate goals through participation in recognized frameworks and target-setting initiatives. Companies often set interim 2030 targets and long-term 2050 net-zero goals to demonstrate measurable progress toward decarbonization.
Frequently Asked Questions
Common questions about Xero's sustainability data and climate commitments