The News: Dell recently published its Fiscal Year 2023 ESG report where the company reviewed progress toward its commitment to advancing environmental, social, and governance issues. Read Dell’s ESG Report for more information.

Dell Fiscal Year 2023 ESG Report: Making Good on ESG Promises

Analyst Take: The Dell Fiscal Year 2023 ESG Report is another strong example of how organizations continue to set aggressive ESG goals and then provide excellent transparency on how they are achieving them. The following areas are the goals Dell Technologies has set, coupled with how the company plans on achieving them.

Advancing Sustainability and Promoting a Circular Economy

On advancing sustainability, by 2050, the company is projecting it will achieve net zero greenhouse gas (GHG) emissions across scopes 1, 2, and 3. To help accomplish that goal, the company expects that by 2030, it will reduce carbon scopes 1 and 2 GHG emissions by 50%.

Also, by 2030, the company expects to source 75% of its electricity from renewable sources across all Dell Technologies facilities and 100% by 2040. Also, by 2030, the company will reduce absolute scope 3 GHG emissions from purchased goods and services by 45% along with reducing absolute scope 3 GHG emissions associated with the use of sold products by 30%.

To promote a more circular economy, by 2030, the company expects for every metric ton of its products a customer will buy, one metric ton will be reused or recycled. In addition, by 2030, it expects 100% of its packaging to be from recycled materials or will utilize reused packaging, and more than half of its product content will be made from recycled or renewable materials.

Goal Progress for Sustainability and Promoting a Circular Economy

Reducing scopes 1 and 2 GHG emissions by 50% by 2030: The company decreased its emissions in FY 2023 YoY through a combination of increased renewable energy purchases, energy efficiency, and size adjustments in its real estate portfolio. This represented a 31.5% decrease from its FY 2020 baseline.
Sourcing 75% of electricity from renewable sources by 2030: In FY 2023, Dell Technologies increased its renewable energy use from 55% to 59% through additional on-site solar generation and increased purchases of renewable energy certificates (RECs) for its U.S. locations.
Reduction of absolute scope 3 GHG from use of sold products by 30% by 2030: In FY 2023, Dell Technologies’ scope 3 emissions from the use of sold products increased by 6% from the previous year, driven primarily by data improvements in its calculation. Additionally, this represents a 2.3% decrease from its FY 2020 baseline.
For every product a customer buys, it will recycle an equivalent product by 2030: In FY 2023, the company recovered 16.5% of products sold to its customers, which represented a 4.4% improvement from the prior year.
100% of its product packaging will be made from recycled or renewable materials by 2030. In FY23, the company mentioned that 94.5% of its packaging was made from recycled or renewable materials, representing a 4.3% improvement from the prior year.
More than half of its Product Content will be made from recycled or renewable materials by 2030. Dell Technologies mentioned that in FY23, 10.8% of the material used in its products was made from recycled or renewable material content, which represents a 4.9% improvement from the prior year.

Advancing Diversity, Equity, and Inclusion

On advancing a more inclusive and dynamic workforce, by 2030, Dell Technologies expects 50% of its global workforce and 40% of its global people leaders will be those who identify as women. By 2030, Dell Technologies expects 25% of its U.S. workforce and 15% of its U.S. people will be leaders will be those who identify as Black/African American or Hispanic/Latino.

Goal Progress for Advancing Diversity, Equity, and Inclusion

50% of Dell’s global workforce and 40% of global people leaders will be those who identify as women by 2030: The company reported that in FY 2023, 34.8% of its global workforce identified as women, which represents a 1% increase from the prior year. Also, in FY 2023, the company said that 29.2% of its people leaders identified as women, which also represents a 1% versus the prior year.
25% of Dell’s workforce and 15% of its U.S. people leaders identify as Black/African American or Hispanic/Latino: The company reported in FY 2023, 16.1% of its U.S. workforce identified as Black/African American or Hispanic/Latino, which represents an increase of approximately 1% versus the prior year. Also, in FY 2023, 12.3% of its U.S. people leaders identified as Black/African American or Hispanic/Latino, versus 12.2% in the prior year.

Corporate Philanthropy and Trust

For many years, Dell Technologies has been involved in many philanthropic activities in its pursuit of changing lives in positive ways. To continue its journey, the company also has set ambitious goals. In fact, by 2030, the company is setting the goal of improving 1 billion lives through digital inclusion. Within that timeframe, in each year, 50% of that outreach will be directed at those who identify as girls or women, or underrepresented groups. Also, during that timeframe, Dell Technologies expects to deliver future-ready skills development for workers in its supply chain.

From a philanthropic perspective, another goal by 2030 is that Dell Technologies expects 75% of its team members will be participating in giving or volunteering in their local communities, along with supporting the digital transformation of 1,000 nonprofit partners.

From a trusted provider perspective, by 2030, Dell Technologies also expects its customers and partners alike will rate the company as their most trusted technology partner. To accomplish this goal, the company has numerous sub-goals to achieve the overarching goal. By 2024, Dell Technologies expects to make available the first validated Zero Trust solution, accredited by the U.S. government and commercially available to targeted global public and private sector organizations.

By 2025, the company expects 100% of actively sold Dell-designed and branded products and offerings will publish a software bill of materials (SBOM), providing transparency on third-party and open-source components. From a security perspective, Dell Technologies expects that by 2030, all new products and offerings that use authentication will offer password-less authentication along with making it easier for its customers to exercise control over their personal data.

Goal Progress for Corporate Philanthropy and Trust

Improving 1 billion lives through digital inclusion by 2030: Dell Technologies noted that in FY 2023, it reached 128 million additional people through health and educational initiatives (cumulatively, it has reached approximately 288 million people). During the same period, the company reached 49% of people who identify as girls and women or underrepresented groups via its health and education initiatives. The company mentioned that this metric fell below the 50% waterline from the prior year but plans to accelerate this growth via programs such as Digital LifeCare and other initiatives. Dell Technologies also mentioned that in FY 2023, Dell-badged team members completed 13,296 hours of future-ready skills training at its in-house factories.
75% of Dell’s team members will participate in philanthropic activities in their communities by 2030. Dell Technologies mentioned that in FY 2023, 52% of its global team members participated in giving or volunteering, which represents a 2% increase from the prior year. During the same period, the company mentioned that 123 incremental non-profits received support through Dell (cumulatively, this addition marks 345 unique non-profits supported towards its goal).
Customers and partners will rate Dell Technologies as their most trusted technology partner. In FY 2023, Dell Technologies launched its first location for its newly designed privacy center experience in the United States, which enhanced its customers’ ability to be informed of and control Dell’s collection and use of their personal information.

Dell’s Fiscal Year 2023 ESG report demonstrates that the company continues to set the bar high for its ESG objectives and is laser-focused on meeting them. The company made excellent advancements in the areas of sustainability and promoting a circular economy, advancing diversity, equity, and inclusion, followed by corporate philanthropy and trust. Our expectation is that the company will continue to press hard on these initiatives since ESG issues are very important from a customer, investor, employee, and vendor perspective.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.