ESG Strategy

We are committed to advancing sustainability, equity and trust by embedding ESG into everything we do at VMware. Every product we engineer, every customer we support and every employee we empower is an opportunity to help build a more sustainable, equitable and secure future.

Our ESG strategy is formalized into what we call our 2030 Agenda, made up of 30 cross company goals. Collectively, they are a call to action to decarbonize digital infrastructures, to increase equitable access to opportunities through distributed workforce technology, and to earn trust with enhanced security and transparency.

2022 ESG REPORT

2030 Agenda

VMware’s 2030 Agenda is a decade long ESG commitment to build a more sustainable, equitable and secure world. To ensure accountability, we embed our 30 cross-functional ESG goals within our business units and leadership team, who have the expertise to generate real and lasting value.

We recognize that we cannot do this alone, which is why we’ll need to co-innovate with our entire stakeholder ecosystem including employees, customers, partners and our broader communities. This requires tapping into our culture of ingenuity and our EPIC2 values—execution, passion, integrity, customers and community—to operationalize ESG across VMware. 

Sustainability

Sustainable digital infrastructure, supporting the transition to net zero emissions and decarbonization for our customers, supply chain and operations.

Equity

Equitable, unbiased and inclusive access to opportunities for all by enabling people to work where and how they want to work.

Trust

Trust earned from our commitment to resilience, ethics, data privacy, security and transparency. 

ESG Highlights

CARBON EMISSIONS AVOIDED BY VMWARE SOLUTIONS

1.2B METRIC TONS

CERTIFIED CARBON NEUTRAL COMPANY SINCE

2018

POWER OF DIFFERENCE (POD) COMMUNITIES

24

EXPANDED
VMWARE

RESPONSIBLE SOURCING PROGRAM

Corporate Governance

The overarching approach to VMware governance is rooted in our EPIC2 values. With integrity at the heart of our values, we build and protect trusted relationships with our customers, partners, shareholders and our people. Our corporate governance practices provide a framework for operating VMware in our stakeholders' best interests and the requirements of law. We manage our affairs according to the highest principles of business ethics.
GOVERNANCE POLICIES

Governance Practices

Governance Practices

ESG Materiality Assessment

An ESG materiality assessment offers a holistic view of how issues, goals and outcomes can impact a business. By aligning all our priorities—both business and ESG—we made an important shift in how we plan and operate, which is driving meaningful change internally and externally. We performed our most recent ESG materiality assessment in 2019 with a comprehensive review of our stakeholder ecosystem. We conducted a thorough analysis of industry trends and peer benchmarking, reviewed investor inquiries and customer insights, and received input from external IT sector experts and internal contributors. We prioritized topics based on their potential impact to our core business—whether financial, reputational or market-based—and how those topics impact our key stakeholders’ decision-making.  We also considered the potential outcomes we could accelerate with these topics, which ultimately helped inform our ESG strategy and the development of the 2030 Agenda.

ESG Governance Structure

VMware’s ESG governance structure includes annual oversight of ESG performance by the full Board of Directors, and the Governance Committee provides formal, primary oversight of our ESG progress. The Audit Committee oversees cybersecurity and data privacy matters, while the Compensation Committee oversees annual executive officer management-by-objectives (MBOs). Our ESG Executive Sponsors meet quarterly to provide ESG strategy direction and the ESG Leadership Council sets annual objectives and key results (OKRs) to monitor implementation progress. Operationally, our ESG Office drives cross-company alignment and strategic focus and measures and tracks our ESG goals.

Data Privacy and Security

New and emerging privacy and security legislation place specific regulatory obligations on organizations, while cyberattacks are rapidly growing in sophistication and scope. At VMware we are passionate about privacy and data security and have developed comprehensive procedures and controls to help protect our customers and their infrastructures and our own.

Ethics

A culture of ethical conduct and compliance is key to maintaining a sustainable and responsible business. This culture is core to VMware’s commitment to integrity which underpins our Business Conduct Guidelines. These guidelines specify standards of behavior that go beyond just complying with the law. They require all employees, directors and executive officers of VMware and its subsidiaries to uphold our shared corporate values: to build and protect trusted relationships with customers, partners, shareholders and the communities within which we operate.

Anti-Corruption

We all share a role in the global fight against bribery and corruption. To help protect against these threats, we’ve established an anti-corruption program that outlines policies, programs, training, and risk and control evaluation centered around embedding anti-bribery management into every facet of our business. We leverage risk assessments to drive process and control refinement, identify targeted training opportunities, and implement program enhancements, where necessary. In 2019 we launched a compliance campaign titled "We All Own It," focused on driving accountability for ethics and compliance issues at a personal level.

Public Policy

Our Government Relations and Policy team partners with governments and public officials to champion our technologies, products and services, customers, employees, and our global communities. We work with all levels of government on public policies relevant to our core business and core values, and we partner with trade associations and industry organizations that share our vision and policy objectives. 

 

VMware also works with United By Interest (UBI), the first bipartisan, majority-minority owned government relations team in Washington, D.C. UBI helps enhance VMware’s outreach to key members the Congressional Black Caucus and Congressional Hispanic Caucus on issues around social and racial justice.  

Sustainability

Sustainability is core to VMware’s values, which is evident based on our legacy of decarbonizing digital infrastructure for our customers, value chain and our own operations. VMware has been certified as a CarbonNeutral® company since 2018, in accordance with The CarbonNeutral Protocol, and we aim to achieve net zero emissions by 2030. We set science-based targets to guide our emissions reduction goals and our operations have been powered 100% by renewable energy since 2019.

2030 Sustainability Goals

2030 Sustainability Goals

Workload Carbon Efficiency

Accelerate productivity and carbon efficiency of customers’ digital operations. 

Goal Progress

We practice VMware on VMware principles (acting as customer zero for our products) to achieve workload carbon efficiency gains. Through these efforts, we are also defining qualification criteria for carbon efficient customers.

Related Resources:

  • IDC White Paper - Enabling More Agile & Sustainable Business through Carbon-Efficient Digital Transformations.

Zero Carbon Clouds

Catalyze the transition to zero carbon clouds. 

Goal Progress

Through June 2022, thirty partners have joined VMware's Zero Carbon Committed™ program.

Related Resources:

Business Resilience

Ensure resilience from our physical infrastructure to our distributed workforce. 

Goal Progress

We are developing a Resiliency Assessment tool to enhance Manager preparedness during natural disasters, which includes a feature in our Emergency Notification (EN) system to filter by employee home location.

Related Resources:

  • Disaster Recovery Solutions - Protect any workload, balancing the speed and cost of recovery with the criticality of your data, with comprehensive disaster recovery solutions from VMware.
  • Build a Future Ready Organization - Empower your employees to work securely from anywhere. Adapt to changing business conditions. And build greater resilience into your organization.

Distributed Energy

Accelerate the adoption of distributed energy for our distributed workplace. 

Goal Progress

VMware has developed a community microgrid on its Palo Alto, CA campus that will help provide the company with clean, reliable energy and serve as a back-up energy source to the community in the case of an outage.

Related Resources:

Net Zero Emissions

Achieve net zero carbon emissions for our operations and supply chain.

Goal Progress

In FY22, we reduced Scope 1 and 2 emissions by 84% from our 2019 baseline and reduced employee commute emissions by 44% from baseline. Fifty-five percent of our suppliers by spend have at least committed to setting science-based targets. 2021 marked our third consecutive year of procuring 100% of our power from renewable sources.

Related Resources:

  • Journey to Net Zero - VMware is committed to achieving net zero carbon emissions for our operations and supply chain by 2030.
  • VMware Home Office Emissions White Paper - In 2020, we assessed - for the first time—the carbon impact of VMware employees working from home. 
  • Responsible Sourcing - We’re committed to supporting our suppliers along their ESG journeys and working toward shared goals.

E-Waste Responsibility

Drive e-waste responsibility throughout our operations.

Goal Progress

We published comprehensive guidance on e-waste procurement and sustainability for our distributed workforce. Our 'Follow the Sun' support mode provides employees with a superior and more efficient e-waste management process no matter where they live in the world.

Carbon Transparency

Enable transparency to the carbon reduction impact of VMware solutions.

Goal Progress

We have released vROps sustainability dashboards and customer decarbonization assessment tools. We are improving data accuracy and adding new features while identifying further products to enhance with carbon transparency tools.

Impact Investments

Invest in innovations at the intersection of social, environmental and financial impact.

Goal Progress

VMware has made two impact investments in the following areas: 1) geospatial data capture, processing, and analytics that enables enterprise customers to detect, prioritize, and monitor for environmental and social impacts, and 2) software focused on accelerating clean energy transition by enabling secure AI and data analytics across energy companies.

Water Resilience

Support water resilience among our global communities.

Goal Progress

We have installed water-meters throughout our real estate portfolio in India, integrating with building management systems. To continue driving water conservation projects in India, more than 90% of our office campus premises practice rainwater harvesting.

Sustainable Cloud Advocacy

Support public policy that drives secure, resilient and sustainable multi-cloud infrastructure. 

Goal Progress

VMware advocated in favor of legislation including the: 1) Infrastructure Investment and Jobs Act, which includes billions of dollars for climate resilience; 2) National Defense Authorization Act, which requires the Department of Defense to identify its 50 least efficient data centers; and 3) Federal 2021 Appropriations Act, which includes energy efficient data center provisions.

Sustainability Highlights

CARBON EMISSIONS AVOIDED BY VMWARE SOLUTIONS

1.2B METRIC TONS

TOTAL RENEWABLE ENERGY PURCHASED IN FY22

190,901 MWh

RENEWABLE ENERGY GLOBALLY

100%

LEED
CERTIFICATIONS

20

Sustainability Impact Stories

Equity

At VMware, we look at equity broadly as a business imperative that encompasses multiple dimensions of access, opportunity and advancement for all our stakeholders. Our approach to equity starts with creating a diverse and inclusive work environment that allows everyone in our organization to feel a sense of belonging and community. We empower our people through DEI initiatives, professional development training and philanthropic giving programs. In addition, our products and solutions enable our customers to provide increased flexibility and access to opportunities for their own employees. 

2030 Equity Goals

2030 Equity Goals

Anywhere Workspace

Enable our customers’ distributed workforces to be productive and engaged wherever they are working. 

Goal Progress

Within VMware’s Anywhere Workspace solutions, mobile platforms were enhanced with Mobile Threat Defense and authentication options to provide customers added security for their distributed workforce. 

Related Resources:

Diversity and Inclusion

Drive equity through doubling down on diverse hiring and inclusive leadership.

Goal Progress

In FY22, Women represented 29% of global employees, up from 27% in FY21. 34% of our global hires self-identified as a woman, and 16% of U.S. hires self-identified as an underrepresented minority. Senior Director-level and above now have corporate DEI goals tied to bonus compensation.

Related Resources:

  • Diversity, Equity & Inclusion - We believe that technology plays a critical role in building a digital future that is accessible, unbiased and inclusive for all.

Culture of Service

Foster a culture of service among our global communities.

Goal Progress

In FY22, 81% of VMware people participated in at least one VMware Foundation program. 19% participated in two or more VMware Foundation programs. More than 30,000 VMware people (81%) supported over 14,000 nonprofits in 102 countries.

Related Resources:

  • VMware Foundation – Our Foundation exists to amplify our people’s personal passions for the individual causes they care about.

Digital Skills

Advance technical and digital skills acquisition around the world.

Goal Progress

In FY22, VMware IT Academy upskilled more than 62,000 learners on VMware solutions. VMware IT Academy is also expanding its educational portfolio to include Modern Applications offerings for learners around the world.

Related Resources:

 
  • VMinclusion Taara - Our unique program designed to support women in returning to work by offering free technical education.
  • IT Academy - Working closely with the community, IT Academy provides educational resources to help students gain the digital skills necessary to make digital transformation accessible for all.

Nonprofit Digital Transformation

Accelerate nonprofits’ digital journeys.

Goal Progress

We served 1,005 nonprofits in FY22 through programs like VMware’s Take 3, Good Gigs Projects and Nonprofit Pricing, as well as through our support of TechSoup’s Digital Assessment Tool for nonprofits.  

Related Resources:

 

Supplier Diversity

Increase commitment to diverse-owned and underrepresented suppliers.

Goal Progress

In FY22, VMware's Responsible Sourcing program was launched to drive sustainability, diversity and accessibility in our supply chain. The supplier diversity program expanded to India, Ireland, Canada and the United Kingdom.

Related Resources:

 
  • Responsible Sourcing - We’re committed to supporting our suppliers along their ESG journeys and working toward shared goals.

Equitable Pay

Advance equitable pay for all VMware People. 

Goal Progress

Twice a year, a third party analyzes our compensation globally. Our most recent data shows that VMware women earn 99% of their male counterparts' salary globally and racial and ethnic minority employees earn 100% of their white counterparts’ salary in the U.S.

Technology Accessibility

Ensure the technology we develop is accessible for all.

Goal Progress

VMware conducts and scores all products on their accessibility yearly and provides shift-left accessibility consulting, education and support by way of our support-ticketing system and by way of the Embedded Accessibility Strategist (EAS) program. In addition, we work to ensure that user guides and marketing materials for VMware’s products are accessible.

Related Resources:

 

Distributed Workforce

Build a diverse, innovative workforce by meeting talent where they are and how they want to work.

Goal Progress

Ninety-three percent of respondents to our latest employee survey agreed that VMware is delivering on its commitment to give employees choice and flexibility in where they work.

Related Resources:

 

Wellbeing

Engage and empower our people through a culture of health and wellness that is accessible, inclusive and innovative.

Goal Progress

VMware has continued to improve our benefits program, including by adding an employee wellbeing allowance, and offering a comprehensive portfolio of benefits designed to assist employees in taking care of themselves and achieving wellbeing.

Related Resources:

 

Equity Highlights

HUMAN RIGHTS CAMPAIGN EQUALITY SCORE

100%

EMPLOYEES ENGAGED IN CHARITABLE ACTIVITIES (FY22)

30,070

# OF GLOBAL NONPROFITS SUPPORTED (FY22)

13,907

# OF COUNTRIES WITH NONPROFITS SUPPORTED

102

Equity Impact Stories

Trust

At VMware, trust means that customers can be confident that their data is kept private, secure and used responsibly, our employees can be confident their company operates transparently and ethically, and all stakeholders can be effectively safeguarded from cyberattacks. Our approach involves rooting our efforts in:

1) Transparency—by owning where we are today and our progress toward where we want to be;

2) Accountability—accepting responsibility for the outcomes of our actions, not our intentions; and

3) Innovation—channeling the same creativity we use to create value for our customers into reaching our ESG goals.

2030 Trust Goals

2030 Trust Goals

Security

Enable a cyber resilient world through VMware solutions. 

Goal Progress

VMware collaborates closely with the security research community to track security issues and makes regular disclosure of exploitable identified vulnerabilities under VMware Security Advisories (VMSA) at www.vmware.com/security/advisories.html

Related Resources:

Privacy by Design

Embed privacy by design across our products, services and operations.

Goal Progress

To help proactively identify and mitigate privacy-related issues, the Global Privacy Team has implemented a Privacy Review process that is completed when teams are implementing or updating business processes, applications or services that will process personal data.

Related Resources:

VMware on VMware

Leverage VMware software in our internal infrastructure with a focus on trust, security, experience and sustainability. 

Goal Progress

We partner with field sales and technical account organizations to share VMware technology best practices with customers via Zoom webinars, 1:1 customer meetings, and small-group roundtable discussions.

Workforce Development

Enable our people to advance from every chair.

Goal Progress

In FY22, we launched a new learning experience platform called the VMware Learning Hub, simplifying and unifying access to career tools and resources.

Related Resources:

  • Career Development - We offer diverse learning platforms and experiences designed to amplify careers.

Fair and Ethical Practices

Advance fair and ethical business practices.

Goal Progress

VMware released a new format for our Business Conduct Guidelines refresher course with real-work examples that are easier to relate to. We achieved 100% completion on this mandatory annual training in FY22.

Related Resources:

Impact Advocacy

Support public policy that drives social and environmental impact in IT.

Goal Progress

In the 2021-2022 election year, VMware’s Political Actional Committee (“VMware PAC”) committed to supporting select Members of Congress solely based on their leadership and activism on ESG and DEI. 

Digital Ethics

Advance our approach to digital ethics and stewardship.

Goal Progress

VMware’s Machine Learning Program Office is developing an AI Code of Ethics to identify and propose a path for adoption of industry and academic best practices that promote the ethical use of AI across our product development and business operations.

Integrated Reporting

Transition to integrated reporting, meeting or exceeding ESG disclosure standards.

Goal Progress

VMware expanded ESG and DEI disclosures in our FY22 Annual Form 10-K and Proxy Statement. VMware also conducted a TCFD climate risk assessment and climate modeling against future scenarios, while continuing to deepen alignment to the SASB reporting framework.

Related Resources

Transparency

Embed governance and accountability for the benefit of all stakeholders. 

Goal Progress

In FY22, VMware amended the charter of the Governance Committee to provide formal, primary oversight of our ESG progress. Our Audit Committee oversees cybersecurity and data privacy matters and our Compensation Committee reviews ESG progress as a factor impacting executive bonus payouts.

Related Resources:

Sustainable Finance

Integrate sustainable metrics into our financial decision-making process.

Goal Progress

VMware has aligned to the Impact Multiple of Money Model which is run alongside our financial decision-making to reflect the opportunities and risks posed by ESG  issues material to VMware’s business strategy.

Trust Highlights

BUSINESS CONDUCT GUIDELINES TRAINING

100% OF EMPLOYEES

BOARD GENDER
DIVERSITY

30%

DEVELOPED
MEASURABLE

EXECUTIVE ESG MILESTONES

INCLUDED ESG
UPDATES FOR

INTEGRATED FINANCIAL REPORTING

Trust Impact Stories

Reports

ESG Reports & Data

ESG Report

We expect our shareholders and other stakeholders to hold us accountable for our ESG progress, which is why VMware voluntarily provides transparent ESG updates annually in our ESG Report. Disclosing ESG data is a crucial component in earning trust from our stakeholders, which is why we align to leading ESG reporting frameworks and standards.

We also regularly respond to investor and customer requests for information and industry leading ESG assessments. These include the CDP questionnaire (Carbon Disclosure Project) to measure our environmental sustainability performance, the EcoVadis assessment to evaluate our sustainable procurement practices and more.

DOWNLOAD 2022 ESG REPORT
2022 GHG VERIFICATION STATEMENT 2022 CDP QUESTIONNAIRE 2022 DEI REPORT 2021 ESG REPORT 2021 GHG VERIFICATION STATEMENT 2021 CDP QUESTIONNAIRE 2021 AURORA ENERGY RESEARCH REPORT 2021 DEI REPORT 2021 HOME OFFICE EMISSIONS WHITE PAPER 2020 IDC WHITE PAPER 2020 GLOBAL IMPACT REPORT 2019 GLOBAL IMPACT REPORT 2018 GLOBAL IMPACT REPORT 2017 GLOBAL IMPACT REPORT 2016 GLOBAL IMPACT REPORT

ESG Performance Data

VMware has a long history of leveraging data to improve our decision making and capacity for innovation. We have transparently shared our ESG performance since VMware’s inaugural Global Impact Report in 2015.

We measure our impact in line with leading ESG frameworks including the following:

  • Greenhouse Gas Protocol (GHG Protocol)
  • Sustainable Accounting Standards Board (SASB)
  • Global Reporting Initiative (GRI)
  • Task Force on Climate-related Financial Disclosures (TCFD)
  • United Nations Sustainable Development Goals (UN SDGs)
  • Principles of the United Nations Global Compact (UNGC)
DOWNLOAD 2022 ESG DATA
Year
Framework

 

Company Overview

Description

FY2021

FY2022

Framework
Organization name VMware, Inc. VMware, Inc. GRI 102-1
Total revenue (in millions) $11,767 $12,851  
Primary brands, products, and services VMware Form 10-K FY21 VMware Form 10-K FY22 GRI 102-2
Worldwide patents and applications 8,384 9,443  
Location of headquarters 3401 Hillview Avenue, Palo Alto, California 94304 USA 3401 Hillview Avenue, Palo Alto, California 94304 USA GRI 102-3
Location of operations VMware Office Locations VMware Office Locations GRI 102-4
Ownership and legal form VMware Form 10-K FY21 VMware Form 10-K FY22 GRI 102-5
Markets served VMware Form 10-K FY21 VMware Form 10-K FY22 GRI 102-6
Scale of the organization VMware Form 10-K FY22 VMware Form 10-K FY22 GRI 102-7
Reporting period February 2, 2020 - January 31, 2021 January 30, 2021 - January 28, 2022 GRI 102-50
Report cycle Annual Annual GRI 102-52
Report contact ESG@vmware.com ESG@vmware.com GRI 102-53
Direct economic value generated and distributed VMware Form 10-K FY21 VMware Form 10-K FY22 GRI 201-1
Membership of associations VMware's 2021 CDP Climate Change response VMware's 2021 CDP Climate Change response GRI 102-13
List of stakeholder groups Shareholders, customers, partners, employees, communities, the environment Shareholders, customers, partners, employees, communities, the environment GRI 102-40
Statement from senior decision-maker VMware ESG Report FY21, Letters from the CEO and CPO VMware ESG Report FY22, Executive Reflections GRI 102-14
Information on employees and other workers VMware DEI Report FY21 VMware DEI Report FY22 GRI 102-8
External initiatives We are involved in several external initiatives, including: RE100, REBA, UNGC and World Economic Forum. The low carbon sustainable development projects that we support address numerous Sustainable Development Goals (SDGs), including: SDG 3, SDG 4, SDG 5, SDG 6, SDG 7, SDG 8, SDG 9, SDG 12, SDG 13, SDG 15, SDG 16 and SDG 17. Details of these projects can be found in VMware's 2021 CDP Climate Change response. All of these initiatives are voluntary. We are involved in several external initiatives, including: RE100, CEBA, UNGC, Valuable 500, 1t.org, The Climate Pledge, World Economic Forum. The low carbon sustainable development projects that we support address numerous Sustainable Development Goals (SDGs), including: SDG 3, SDG 4, SDG 5, SDG 6, SDG 7, SDG 8, SDG 9, SDG 12, SDG 13, SDG 15, SDG 16 and SDG 17. Details of these projects can be found in VMware's 2022 CDP Climate Change response. All of these initiatives are voluntary. GRI 102-12
Year
Framework

 

Governance

Description

FY2021

FY2022

Framework
Governance structure Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-18
Executive-level responsibility for economic, environmental, and social topics VMware's Environmental, Social and Governance strategy is led by the Vice President of Environmental, Social, Governance, and reports to the following ESG Executive Sponsors: Chief Financial Officer, Chief Technology Officer, Chief People Officer and General Counsel. VMware's Environmental, Social and Governance strategy is led by the Vice President of Environmental, Social, Governance and is overseen by the following ESG Executive Sponsors: Chief Executive Officer, Chief Financial Officer, Chief People Officer, General Counsel, President and Chief Technology Officer. GRI 102-20
Total Executive and Non-Executive Board Members 10 10 GRI 102-22
Board Gender Diversity 20% 30% GRI 102-22, 405-1
Composition of the highest governance body and its committees Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-22
Chair of the highest governance body  Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-23
Nominating and selecting the highest governance body Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-24
Conflicts of interest Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-25
Role of highest governance body in setting purpose, values, and strategy Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-26
Evaluating the highest governance body's performance Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-28
Communicating critical concerns Corporate Governance Guidelines Corporate Governance Guidelines GRI 102-33
List of material topics Data Privacy and Security, Digital Ethics, Product Stewardship and Design, Climate Resilience and Adaptation, Energy and GHG Emissions, Civic Engagement and Public Policy, Community Engagement, Digital Skills and Training, Human Capital, Inclusion and Equal Opportunity, Supply Chain Responsibility, Business Oversight and Transparency. Data Privacy and Security, Digital Ethics, Product Stewardship and Design, Climate Resilience and Adaptation, Energy and GHG Emissions, Civic Engagement and Public Policy, Community Engagement, Digital Skills and Training, Human Capital, Inclusion and Equal Opportunity, Supply Chain Responsibility, Business Oversight and Transparency. GRI 102-47
External assurance VMware is responsible for the preparation and integrity of the information in this report. VMware engaged Apex as an independent third party to review our FY21 Greenhouse Gas (GHG) inventory and energy consumption, and received limited assurance of its accuracy and completeness. The scope of this review, included in this report, includes our global Scope 1 and Scope 2 GHG emissions, Scope 1 and 2 energy consumption and Scope 3 GHG emissions related to business travel. The rest of this report has not been externally assured by an independent third party. VMware engaged Apex Companies LLC (Apex) as an independent third party to review our fiscal year 2022 Greenhouse Gas (GHG) inventory and energy consumption and received limited assurance of its accuracy and completeness. The scope of this review, included in this report, includes global Scope 1 and Scope 2 GHG emissions, Scope 1 and 2 energy consumption, and Scope 3 GHG emissions related to business travel and employee commuting. The rest of this report has not been externally assured by an independent third party. Please see our third-party assurance letter by Apex for more information. GRI 102-56
Code of conduct Business Conduct Guidelines Business Conduct Guidelines GRI 102-16
Principle 10
Percentage of employees who completed Business Conduct Guidelines training 100% 100% GRI 102-16
Principle 10
Mechanisms for advice and concerns about ethics VMware Ethics Helpline VMware Ethics Helpline GRI 102-17
Data Privacy and Security      
System performance and security VMware Cloud Trust Center VMware Cloud Trust Center GRI 418-1
TC-SI-220a.1
Principle 1
Description of policies and practices relating to behavioral advertising and user privacy VMware ESG Report FY21, Chapter 6: Accountability VMware believes that protecting personal data is critical to building trusted relationships with both customers and employees, as well as for promoting innovation. VMware’s dedicated Global Privacy Team works across the organization to deliver pragmatic, creative, and scalable privacy solutions to protect our customers and their infrastructures as well as our own. To help proactively identify and mitigate privacy-related issues, the Global Privacy Team has implemented a Privacy Review process that is completed when teams are implementing or updating business processes, applications or services that will process personal data.

In addition, we regularly review our privacy strategy against emerging legal requirements and regulatory guidance to define and embed privacy controls that meet both our customers’ and internal stakeholders’ expectations, and to implement best in class cross border data transfer mechanisms. We have achieved Binding Corporate Rules for Processors (BCR-Ps) acknowledging that we continue to meet the standards of the EU General Data Protection Regulation for international transfers of personal data from the EEA, processed by VMware as a processor. We are also awaiting approval for our UK BCR-P application. You can access our Privacy Notice at: https://www.vmware.com/help/privacy.html and to read more about VMware’s privacy program, please visit https://cloud.vmware.com/trust-center/privacy		 GRI 418-1
TC-SI-220a.1
Description of approach to identifying and addressing data security risks, including use of third-party cybersecurity standards VMware ESG Report FY21, Chapter 6: Accountability VMware promptly and regularly discloses publicly known vulnerabilities that are exploitable in one or more supported products and are critical and important in severity.

We have a rigorous program in place that actively identities and addresses security threats. Once a vulnerability is identified in any of the products of our product portfolio, our teams will see to its remediation. In addition to our internal security operations, VMware collaborates closely with the security research community to track security issues. VMware makes regular disclosure of exploitable identified vulnerabilities under VMware Security Advisories (VMSA) at https://www.vmware.com/security/advisories.html VMware is active in the broader software industry security community, becoming an early member of BSIMM in 2009 and a member of SAFECode in 2014, an organization driving security and integrity in software products and solutions. VMware is deeply invested in Open Source Software Security. Not only do we contribute to some of the world’s most important OSS projects, but we also make contributions in many ways, including our participation in organizations such as the Open Source Security Foundation (OpenSSF) and Cloud Native Computing Foundation (CNCF) from the Linux Foundation. 		TC-SI-230a.2
Description of business continuity risks related to disruption of operations VMware ESG Report FY21, Chapter 4: Action Any of our primary locations may be vulnerable to the adverse effects of climate change and the impacts of extreme weather events, which have caused regional short-term systemic failures in the U.S. and elsewhere. For example, our California headquarters are projected to be vulnerable to future water scarcity due to climate change, and unanticipated extreme cold weather has resulted in electrical grid outages in Texas where many of our U.S. employees are located. While this danger currently has a low-assessed risk of disrupting normal business operations in the near term, it has the potential to impact employees’ abilities to commute to work or to work from home and stay connected effectively.

Climate-related events and their potential to increase political instability in regions where we, our customers, partners and our vendors do business, have the potential to disrupt our business, our third-party suppliers, or the business of our customers and partners, and may cause us to experience higher attrition and additional costs to maintain or resume operations.		 TC-SI-550a.2
Public Policy      
Company political contributions 0 0 GRI 415-1
VMware PAC contributions $99,000 $31,000 GRI 415-1
Year
Framework

 

Social

Description

FY2021

FY2022

Framework
Workforce Indicators      
Number of employees 34,242 37,500 GRI 102-7
Benefits provided to full-time employees that are not provided to temporary or part-time employees VMware Benefits VMware Benefits GRI 401-2
Commitment to Diversity and Inclusion VMware Diversity Equity and Inclusion VMware Diversity Equity and Inclusion Principle 1,6
Regional employees (AMER %) 49.5% 47.3% GRI 102-7
Regional employees (APJ %) 31.9% 33.7% GRI 102-7
Regional employees (EMEA %) 18.6% 18.9% GRI 102-7
Global gender diversity 27.1% 29.2% GRI 102-8
TC-SI-330a.3
Regional gender diversity, AMER 27.7% 29.5% GRI 102-8
TC-SI-330a.3
Regional gender diversity, APJ 26.8% 29.2% GRI 102-8
TC-SI-330a.3
Regional gender diversity, EMEA 26.0% 28.3% GRI 102-8
TC-SI-330a.3
Regular employees under 31 years old 21.4% 21.9% GRI 405-1
Regular employees 31-50 years old 65.7% 64.6% GRI 405-1
Regular employees over 50 years old 13% 13.4% GRI 405-1
Total New Hires - under 31 years old 36.4% 36.9% GRI 401-1
Total New Hires - 31-50 years old 55.5% 55.1% GRI 401-1
Total New Hires - over 50 years old 8.2% 8.0% GRI 401-1
US - African-American/Black 3.7% 4.4% GRI 405-1
TC-SI-330a.3
US - Asian 32.2% 32.0% GRI 405-1
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US - Caucasian/White 55.4% 53.9% GRI 405-1
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US - Hispanic/LatinX 6.2% 7.1% GRI 405-1
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US - Multiracial 2.0% 2.1% GRI 405-1
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US - Other 0.5% 0.6% GRI 405-1
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Differently Abled (US) 3.2% 3.2%  
LGBTQ (Global) 2.6% 9.4%  
Veterans (US) 5.4% 5.7%  
Percentage of gender and racial/ethnic group representation for (1) management, (2) technical staff, and (3) all other employees The percentages of gender and racial/ethnic group representation by employee type, including metrics reflecting intersectionality, are provided in our 2021 Diversity, Equity and Inclusion Report. VMware is committed to looking at our data across key demographic groups and closing the gaps between majority and underrepresented groups. We have set specific and measurable annual goals to increase the diversity of our workforce and improve the representation of underrepresented groups in the U.S. We also innovate to create new experiences to identify, expand and support the pool of underrepresented talent across the Technology Industry. More information about our relevant policies and programs to foster equitable employee representation can be found in our 2021 Diversity, Equity and Inclusion Report. The percentages of gender and racial/ethnic group representation by employee type, including metrics reflecting intersectionality, are provided on pages 26-31 of our 2022 Diversity, Equity and Inclusion Report. VMware is committed to looking at our data across key demographic groups and closing the gaps between majority and underrepresented groups. We have set specific and measurable annual goals to increase the diversity of our workforce and improve the representation of underrepresented groups in the U.S. We also innovate to create new experiences to identify, expand and support the pool of underrepresented talent across the Technology Industry. More information about our relevant policies and programs to foster equitable employee representation can be found in our 2022 Diversity, Equity and Inclusion Report.
Our most recent EEO-1 disclosure provides additional details.		 TC-SI-330a.3
Ratio of basic salary and remuneration of women to men At VMware, women earn 99% of their male counterparts' salary globally. At VMware, women earn 99% of their male counterparts' salary globally. GRI 405-2
Process for determining remuneration We continually analyze compensation globally, accounting for multiple factors that influence pay such as tenure, geographic location and performance. Our most recent data analysis, done by a third party, shows that at VMware, women earn 99% of their male counterparts' salary globally and racial and ethnic minority employees earn 100% of their white counterparts in the U.S. We are proud of these results and are strongly committed to pay equity and equal opportunity across gender and racial lines. We continually analyze compensation globally, accounting for multiple factors that influence pay such as tenure, geographic location and performance. Our most recent data analysis, done by a third party, shows that at VMware, women earn 99% of their male counterparts' salary globally and racial and ethnic minority employees earn 100% of their white counterparts in the U.S. We are proud of these results and are strongly committed to pay equity and equal opportunity across gender and racial lines. GRI 405-2
Talent Development      
Total number of employees who attended a Professional Development program 18,049 18,998 GRI 404-2
Principle 6
Total number of employees who attended an RandD training 14,644 14,323 GRI 404-2
Principle 6
Employees receiving regular performance and career development reviews VMware believes that by innovating new performance norms, we not only build stronger human relationships and improve communication between employees and managers, we also ensure we stay agile and responsive to the changes that naturally occur in the business environment. To this end, we encourage career development goal setting and conversations throughout the year. VMware believes that by innovating new performance norms, we not only build stronger human relationships and improve communication between employees and managers, we also ensure we stay agile and responsive to the changes that naturally occur in the business environment. To this end, we encourage career development goal setting and conversations throughout the year. GRI 404-3
Employee engagement 44% 50% TC-SI-330a.2
Employee Net Promoter Score (NPS) 48 44  
Community Engagement      
Total VMware Foundation grants $17,361,000 $11,137,000  
VMware matching gifts (included in total above) $11,533,000 $7,576,000  
Employee service learning hours 65,103 79,040  
Number of employees who participated in charitable activities 26,251 30,070  
Percentage of employees who participated in charitable activities