AZPN
Innovating for a Changing World
2024 Sustainability Report
Our Business
Governance
Environment
Social Impact
Appendix
AspenTech 2024 Sustainability Report | 01
About This Report
The title of this report, Innovating for a Changing World, reflects our path to advancing sustainability through both our business practices and our innovative, industry-leading solutions.
The report highlights accomplishments we achieved in driving progress in our governance, environmental and social performance. As we continue to mature our processes and reporting of sustainability measures, this report underscores Aspen Technology's (AspenTech) commitment to bringing rigor to our sustainability measures and disclosures and helps us respond to growing stakeholder interest in our company's sustainability practices.
We have structured the report according to governance, environmental and social impact disclosure, and the information presented covers our fiscal year 2024 (FY24)1.
During FY24, we initiated work on a double materiality assessment to help us identify the sustainability issues that are most important for our business and to our stakeholders over the short, medium and long term. Through this assessment, we have identified 10 material
topics that can impact our business and that are of greatest importance to both our internal and external stakeholders. The outcomes from the materiality assessment will help inform our sustainability strategy, goal setting and reporting.
We are working toward alignment with the Task Force on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI). Throughout this report, we identify our progress on 10 United Nations Sustainable Development Goals (SDGs) that are aligned with our strategy and where we believe we have meaningful impact through our business and community activities.
We are evolving our ESG reporting program to allow for third-party assurance in the future to support the reliability and consistency of our sustainability disclosures.
1 AspenTech's fiscal years run from July 1 through June 30, unless otherwise noted.
Our Business
Governance
Environment
Social Impact
Appendix
AspenTech 2024 Sustainability Report | 02
03
09
Our Business
Governance
03
Message from Our CEO
10
Our Approach
04
About AspenTech
11
Board Sustainability
06 Our Values
and Risk Oversight
12
Business Ethics
07 Materiality
13
Risk Management
08 How AspenTech
Supports the United
Nations Sustainable
Development Goals
14
Environment
15 Our Approach
15 Advancing Our Internal Sustainability Practices
18 Accelerating Change Through Innovation
23 Advancing Sustainability Together
24
Social Impact
29 Helping Asset-Intensive Industries Build and Retain Organizational Competency
37
Appendix
Our Business
Governance
Environment
Social Impact
Appendix
AspenTech 2024 Sustainability Report | 03
Message from Our CEO
During the past year, we continued to invest in and advance our sustainability strategy. We made meaningful progress on our internal sustainability programs and announced AspenTech's commitment to achieving net-zero by 2045.
We furthered diversity, equity and inclusion (DEI) within our workplace and continued to provide innovative, industry-leading software solutions designed to help our customers meet the Dual Challenge - i.e., meeting the increasing demand for resources from a rapidly growing population with rising standards of living, while also operating in a more sustainable manner. In this report, I am pleased to share greater detail on the progress made on our sustainability journey and future milestones.
With the Dual Challenge at the center of our sustainability efforts, our customers look to Aspen Technology to partner with them to help them achieve their transition to a new global energy system. This is driving a convergence of capabilities across industries and new layers of complexity as engineering domains merge to manage and optimize new energy supply chains where molecules and electrons are transformed to facilitate the generation and storage of energy. With a clear focus on collaboration to drive this cross-industry convergence, we pride ourselves on the strong partnerships we have forged over more than four decades. These
relationships enable us to collaborate and
co-innovate with our customers, industry peers and other stakeholders, who trust us to deliver end-to-end solutions and work collectively to accelerate innovation for increasingly complex business challenges.
There are numerous challenges still ahead as businesses adapt to evolving energy and operational models. But there are many opportunities as well. Sustainability and innovation have always been integral to who we are as a company, and we remain steadfast in our commitment to drive progress, both within our organization and through our growing portfolio of solutions. A key pillar to AspenTech's innovation is our approach to artificial intelligence (AI). We combine our expertise in engineering fundamentals, asset knowledge and industry experience with data management and insights to deliver Industrial AI. This unique capability, embedded across our product suites, is built for the complexity of new energy systems and equipped with specific guardrails designed to ensure it behaves in safe and predictable ways. This technology enables
our customers to accelerate agility, improve decision making through guidance, and drive efficiencies through increased accuracy and predictability in automation. With our commitment to innovation and sustainability for our customers, I am confident that we will be at the forefront of groundbreaking technology advancements for years to come.
I would like to express my sincere appreciation and thanks to all AspenTech employees, customers and partners for joining us on
our sustainability journey. Their hard work, dedication and commitment are helping us accelerate innovation, achieve our goals and advance toward a more sustainable world. I invite you to learn about our accomplishments and performance over the past year and look forward to sharing our progress in future reports.
Antonio Pietri
President and Chief Executive Officer
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Appendix
About AspenTech
We are a global leader in industrial software focused on helping customers in asset-intensive industries address the Dual Challenge.
AspenTech 2024 Sustainability Report | 04
AspenTech has been recognized by Fortune as one of its 2023 Future 50- an index of companies that are built to deliver robust growth along with outsize returns for shareholders in the long term.
Our solutions address complex environments where it is critical to optimize across the full asset lifecycle - asset design, operation and maintenance - enabling customers to run their assets safer, greener, longer and faster. Thousands of companies, ranging from multinational corporations to start-ups, rely on our software to help them run their assets more profitably, resiliently and sustainably to meet their operational excellence and sustainability goals.
At AspenTech, we help customers solve some of their most critical challenges via our purpose-built software that combines engineering first principles, deep industry
AspenTech by the Numbers1
3,937
3,000+
employees
customers in
117 countries
domain knowledge and advanced technologies such as Industrial AI, which is the combination of data insights from AI and domain expertise grounded in engineering fundamentals, asset knowledge and industry experience. We drive significant value creation through our decades of experience in modeling, simulation and optimization technologies. The operational challenges we help our customers solve include maintaining maximum efficiency in process operations, managing electrical grids amid the growth in renewable energy sources, helping ensure supply chain resiliency, reducing carbon emissions, and more.
160
36
sustainability
locations worldwide
models
1 As of June 30, 2024
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AspenTech 2024 Sustainability Report | 05
Our Changing World
AspenTech solutions help our customers meet the Dual Challenge - meeting the increasing demand for resources, while also operating in a more sustainable manner.
We have also committed to net-zero GHG emissions by 2045.
POWER SYSTEMS
Our solutions help electric utilities integrate renewable power resources into existing power systems.
EDUCATION
AspenTech is empowering the next generation of engineers and planners to more rapidly develop the solutions we need for future energy systems.
TRANSPORT
Our technology enables more efficient production of jet fuel and is also helping to accelerate the transition to Sustainable Aviation Fuel (SAF).
ELECTRIFICATION
We help deliver fuel to the existing fleet but are also supporting the transition to electric vehicles (EVs).
WASTE MANAGEMENT
We are helping companies and communities develop more efficient waste collection, and developing new solutions for plastics recycling.
NEW MATERIALS
Our solutions help researchers develop more environmentally friendly materials that can reduce the carbon footprint of what we consume.
COMMUNITY SUPPORT
Our AspenTech Gives Back program funds charitable causes focused on education, empowerment and environment.
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Appendix
AspenTech 2024 Sustainability Report | 06
OUR VALUES
Our corporate values are the foundation of AspenTech's culture. They guide us in our day-to-day decision making and help us achieve our overall mission.
Integrity
Follow through on commitments, be responsible for your actions and words, act with honesty and respect, and always do the right thing.
Customer First Mindset
Our customers are central to our success, and supporting their goals informs decision making at all levels of
our organization.
Diversity, Equity
and Inclusion
Promote an inclusive culture, be an advocate of equal opportunities for all and support your peers through actions, not just words.
Innovation
Use your intellectual curiosity to explore new ideas, reimagine tomorrow and create future value for
our customers.
Collaboration
Encourage fresh ideas to make better decisions, seek alignment and work together for better results.
Competitive Spirit
Always be learning and improving, refuse to lose, work to accomplish your goals and deliver results.
Entrepreneurial Thought and Action
Assess and take risks, identify and seize opportunities, expand your horizons and grow from the experience.
Execution
Pay attention to the details, empower others to do their best work, and act with speed and purpose to achieve success.
The Medina office hosts an employee fair showcasing opportunities to collaborate with and support peers across our company.
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Appendix
AspenTech 2024 Sustainability Report | 07
MATERIALITY
At the end of FY24, we completed a double materiality assessment to identify the environmental, social and governance topics that have the greatest impact on AspenTech's unique business and its relevant internal and external stakeholders. Working with a third-party consultant, we surveyed a cross section of stakeholders through surveys and interviews and conducted an analysis of relevant public documentation to identify 10 material topics, as depicted in the diagram below.
Legend: Environmental Social Governance
Human Rights
Climate Change
Mitigation Management
High
MATERIALITYIMPACT
Data Privacy
Climate Metrics
IT Performance
Medium
Behavior Issues
Supply Chain Management
and Cybersecurity
Discrimination
and Targets (numeric)
Corruption, Gifts and Bribery
Management of
Health and Safety
Key Corporate
Low
Low
Medium
High
We assigned weights to each stakeholder group and to individual stakeholders within each group, as indicated below.
Internal Stakeholders
15%
Team Leaders
30%
Executives
25%
Board of
Directors
30%
Employees
External Stakeholders
10%
Suppliers20%
Customers
15%
Media
15%
20%
Investors
Partners and
Alliances
20%
The results from our materiality assessment will be used to inform our strategy and reporting going forward. Additionally, the assessment meets U.S. Securities and Exchange Commission (SEC) and European Union regulatory requirements, including the EU Corporate Sustainability Reporting Directive (CSRD).
FINANCIAL MATERIALITY
Peers
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Appendix
AspenTech 2024 Sustainability Report | 08
HOW ASPENTECH SUPPORTS
THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
The United Nations SDGs are a blueprint for achieving a more sustainable future through addressing global environmental and social challenges, including poverty, inequality, climate change and environmental degradation. We have identified opportunities for ways in which our business activities, products and community engagement can contribute to the advancement of these goals.
Following are examples of our actions and the SDGs to which they relate. Descriptions of our activities and additional examples can be found throughout this report.
SDG Alignment
AspenTech's Contributions
Quality Education
·
AspenTech was founded over 40 years ago, built upon the research developed by the Massachusetts Institute of Technology ASPEN Project.
Targets: 4.4, 4.7
·
Our Academic Program provides software and training to over 1,300 universities in more than 80 countries, and more than 140,000 active student users.
· AspenTech University trains 17,000 professionals each year through more than 1,800 classes.
Gender Equality
·
We have DEI programs overseen by the Human Capital Committee of the Board of Directors.
Targets: 5.5, 5.c
·
Our employee resource groups (ERGs) are dedicated to fostering a positive work environment by promoting diversity, openness, understanding and inclusiveness.
· Our Women in Leadership Program is designed to build a more inclusive future by empowering women to lead at all levels of the organization.
· We require annual non-discrimination, anti-harassment and anti-retaliation training for all employees.
Affordable and
·
Our software improves efficiency of existing processes and enables production of clean fuels, including processing of biofeedstocks and efficient production of hydrogen.
Clean Energy
·
Our Digital Grid Management software provides critical capabilities for modernization and resiliency of electricity transmission and distribution systems.
Target: 7.a
·
Our software addresses the complexity of managing renewable and distributed energy resources, along with meeting expanding demands for electricity in homes,
businesses and industries.
Decent Work and
·
AspenTech is an equal opportunity/affirmative action employer.
Economic Growth
·
Our unconscious bias prevention training promotes inclusivity and healthy working relationships and enables high-functioning workplaces.
Targets: 8.5, 8.8
·
We provide employee learning and development and career advancement opportunities.
· Our solutions address complex environments where it is critical to optimize across the full asset lifecycle.
Industry, Innovation
·
AspenTech is a global asset management software leader providing innovative software that enables safe and sustainable production of critical products.
and Infrastructure
·
Our Digital Grid Management software supports resilient operation of electricity infrastructure.
Targets: 9.4, 9.5
·
Our software helps customers to accelerate product and process innovations.
Responsible
·
Our software enables development and production of more sustainable products, including fuels and chemicals made with biofeedstocks and green hydrogen.
Consumption
·
Our advanced chemical engineering solutions help tackle the challenge of plastic recycling and the complexity of waste management systems.
and Production
·
Our manufacturing and supply chain software enables integration of pyrolysis oil and biofeedstocks in refining and chemical operations.
Targets: 12.2, 12.4
Climate Action
·
We have committed to set 2030 near-term company-wide emissions reduction targets in line with the Science Based Targets initiative.
Target: 13.2
·
We are driven to address the Dual Challenge - meeting increasing demand for resources while achieving sustainability goals.
·
Our software enables asset-intensive industries to improve energy efficiency and simulate, monitor, optimize and report emissions.
·
We are advancing solutions to address climate change, including carbon capture, utilization and storage (CCUS) technologies.
Life Below Water
·
Our software helps avoid incidents that can lead to marine pollution.
Target: 14.1
·
Through our membership with the Alliance to End Plastic Waste, we bring our expertise and technology to create and scale innovative solutions that eliminate plastic
waste in the environment.
· Our employees participate in World Cleanup Day, which targets the global waste problem.
Life on Land
·
Our software helps protect natural habitats by avoiding environmental incidents and reducing emissions.
Target: 15.1
·
We help the metals and mining industry to optimize processing operations, resulting in higher recovery yields, lower emissions and reduced energy consumption.
Peace, Justice and
·
We have a robust compliance and ethics program, which includes:
Strong Institutions
−Code of Business Conduct and Ethics
Targets: 16.6, 16.7
−Whistleblower Reporting, Investigation and Protection Policy
Partnerships
· We collaborate and co-innovate with customers to accelerate the development and implementation of sustainability solutions.
for the Goals
·
We partner with thought-leaders and contribute our expertise to advance knowledge-sharing and innovation.
Target: 17.17
·
Through the Energy Transitions Commission, we engage with leaders from across the energy landscape to accelerate the transition to a new energy system.
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Environment
Social Impact
Appendix
Governance
Good corporate governance and ethical business practices help us successfully manage our business and achieve our goals with integrity, honesty, transparency and accountability.
SDGs:
AspenTech 2024 Sustainability Report | 09
Disclaimer
Aspen Technology Inc. published this content on December 18, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 19, 2024 at 17:51:22.569.