Dynatrace: Dynatrace : 2024 Sustainability Report

2024 Sustainability Report HOME | OVERVIEW | SUSTAINING OUR ENVIRONMENT | PEOPLE, CULTURE, AND COMMUNITY | GOVERNANCE AND ETHICS | DISCLOSURES What's inside OVERVIEW 3 SUSTAINING OUR PEOPLE, CULTURE, GOVERNANCE AND ETHICS 29 APPENDIX 40 A message from our CEO 3 ENVIRONMENT 10 AND COMMUNITY 16 Board and corporate governance 30 SASB and GRI disclosures 40 About Dynatrace 4 Carbon footprint 11 Progress since our last report 17 Data protection, privacy Additional Information 49 Our platform 5 Workplace sustainable practices 13 Recognition 18 and cybersecurity 33 About our Sustainability Report 6 Sustainability and the Dynatrace Brand and culture 19 Responsible AI 35 platform 15 Our sustainability strategy 7 Inspiring employee engagement 20 Ethics and compliance 37 Materiality 8 Driving career growth and learning development 21 Stakeholder engagement 9 Attracting and retaining the right talent 22 Creating a diverse and inclusive environment 23 Employee diversity data 25 Community 27 Increasing representation in our industry 28 2024 Sustainability Report | 2 HOME | OVERVIEW | SUSTAINING OUR ENVIRONMENT | PEOPLE, CULTURE, AND COMMUNITY | GOVERNANCE AND ETHICS | DISCLOSURES A message from our CEO At Dynatrace, we're driven by our purpose to enable flawless and secure digital interactions. In everything we do, we strive to innovate with passion, engage with purpose, and win with integrity. We embrace our corporate responsibility, and we believe the steps we're taking today to invest in sustainable practices will create a lasting positive impact for our customers, stockholders, employees, and global communities. Dynatrace is proud to serve more than 4,000 customers, representing many of the world's largest organizations in over 100 countries. As we continue to scale, we're committed to doing so in a sustainable, equitable, and ethical way. This 2024 Sustainability Report builds on last year's inaugural report, which assessed our current state and outlined our sustainability priorities and focal areas. Since last year's report, we've continued to invest time, resources, and tools to advance our progress in three key pillars: Sustaining our environment; People, culture, and community; and Governance and ethics. We've made improvements in all three areas, including the following: We obtained third party verification for our greenhouse gas (GHG) emissions and increased the number of our workplaces powered by 100% renewable energy or located in LEED-certified buildings. We continued to transform our People & Culture function, which included hiring our first Diversity, Equity, Inclusion and Belonging (DEIB) leader and completing our first global employee engagement survey to help us determine how we can improve as a company. We posted responsible AI principles on our website and established an AI Governance Council to expand our focus on practices and organizational accountability in this rapidly changing area. In this report, we celebrate these wins and continue to focus on the work we still need to do. Together, we remain committed to making measurable strides towards a more sustainable future. Rick McConnell Chief Executive Officer 2024 Sustainability Report | 3 HOME | OVERVIEW | SUSTAINING OUR ENVIRONMENT | PEOPLE, CULTURE, AND COMMUNITY | GOVERNANCE AND ETHICS | DISCLOSURES About Dynatrace Dynatrace exists to make the world's software work perfectly. Our end-to-end platform combines broad and deep observability and continuous runtime application security with Davis® hypermodal AI to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That is why the world's largest organizations trust Dynatrace® to accelerate digital transformation. MISSION, PURPOSE, VISION, AND VALUES Our mission is to deliver answers and intelligent automation from data Our purpose is to enable flawless and secure digital interactions Our vision is a world where software works perfectly Our values are Innovate with Passion, Engage with Purpose, and Win with Integrity BY THE NUMBERS 19 years Founded in 2005 2019 Public company listed on the New York Stock Exchange (symbol: DT) 4,000+ customers in more than 100 countries ~4,700 employees in more than 30 countries $1.5B Total annual recurring revenue (ARR); total revenue of $1.4 billion Employee data is as of March 31, 2024, which was the end of our fiscal year 2024 (FY24). Total ARR and total revenue are for our FY24. INDUSTRY RECOGNITION Positioned furthest for Completeness of Vision and highest in Ability to Execute in the 2024 Gartner® Magic Quadrant for Observability Platforms . This is the 14th consecutive time that Gartner has named Dynatrace a Leader in this report. 1 Ranked #1 across 3 of 5 use cases in the 2024 Gartner Critical Capabilities for Observability Platforms Report . 2 Named a Leader in the Inaugural 2024 Gartner Magic Quadrant for Digital Experience Monitoring for Completeness of Vision and Ability to Execute. 3 Recognized in the 2024 Constellation Research ShortLists for Observability , AIOPs , and Digital Performance Management . 4 Attribution and disclaimers can be found on page 50 . LEARN MORE Watch our Power of Possible streaming event to learn how Dynatrace customers are transforming their businesses with the platform built for all data, all teams, and all possibilities. You can also learn more about us at: dynatrace.com/news/blog dynatrace.com/news/webinar ir.dynatrace.com 2024 Sustainability Report | 4 HOME | OVERVIEW | SUSTAINING OUR ENVIRONMENT | PEOPLE, CULTURE, AND COMMUNITY | GOVERNANCE AND ETHICS | DISCLOSURES Our platform ARTIFICIAL INTELLIGENCE (AI) Our Davis® AI engine is the observability and security industry's first hypermodal AI, converging fact-based, predictive AI and causal AI insights with generative AI capabilities. We believe Davis AI boosts productivity across business, development, security, and operations teams by delivering generative AI recommendations fueled by precise context from predictive AI and causal AI techniques that reflect the unique attributes of each organization's hybrid and multicloud ecosystem. Davis AI also simplifies and accelerates tasks, such as creating automations and dashboards, to enable people to focus on higher-value activities for faster, better, and more secure innovation. For more information regarding how Dynatrace continues to be mindful of ethical considerations and responsible use of AI, please see the "Responsible AI" section of this report. For additional information about our use of AI at Dynatrace, please visit our website and blog. 2024 Sustainability Report | 5 HOME | OVERVIEW | SUSTAINING OUR ENVIRONMENT | PEOPLE, CULTURE, AND COMMUNITY | GOVERNANCE AND ETHICS | DISCLOSURES About our Sustainability Report This is our second annual Sustainability Report. This report details the sustainability topics that most significantly impact our business and our stakeholders. Our report last year was called a Global Impact Report and we changed the name for this year's report to put more focus and emphasis on sustainability. This report covers our fiscal year 2024 (FY24), which started on April 1, 2023 and ended on March 31, 2024, as well as other developments and progress that have occurred through October 31, 2024. We prepared this report in reference to the Sustainability Accounting Standards Board (SASB) Software IT Services Sustainability Accounting Standard, Version 2023-12, and in reference to the Global Reporting Initiative (GRI) Standards. In this report, references to "Dynatrace," the "company," "we", and "our" are to our parent company Dynatrace, Inc. and its subsidiaries. References to "Dynatracers" refer to our global employees. Please see the " Additional Information " section of the Appendix to this report for additional disclosures. 2024 Sustainability Report | 6 HOME | OVERVIEW | SUSTAINING OUR ENVIRONMENT | PEOPLE, CULTURE, AND COMMUNITY | GOVERNANCE AND ETHICS | DISCLOSURES Our sustainability strategy VISION AND APPROACH We believe that focusing on sustainability is part of our responsibility as a global company. We group our material sustainability topics into the three key pillars described below. With these topics at the forefront, we have embedded our sustainability strategy in our business priorities, mission, purpose, vision, and values. SUSTAINING OUR ENVIRONMENT PEOPLE, CULTURE, AND COMMUNITY GOVERNANCE AND ETHICS We are focused on implementing environmentally As part of our human capital management strategy, We are focused on continuously strengthening sustainable practices in our operations and better we have prioritized a number of initiatives to help the governance and compliance structures of understanding and looking for ways to reduce our provide each Dynatrace employee with tools and our business, which we believe help us earn and impact on the environment. pathways to progress in their role. maintain the trust of our customers, investors, and other stakeholders. 2024 Sustainability Report | 7 HOME | OVERVIEW | SUSTAINING OUR ENVIRONMENT | PEOPLE, CULTURE, AND COMMUNITY | GOVERNANCE AND ETHICS | DISCLOSURES Materiality We previously conducted a materiality assessment that helped us identify the sustainability risks and opportunities that we believe are of highest priority to both our business and our stakeholders. As part of that process, we gathered detailed feedback from a broad range of internal and external stakeholders, which has guided our sustainability strategy. These stakeholders reflected a broad range of internal and external voices - employees, customers, suppliers, investors, and sustainability analysts. In our FY23, we received additional stakeholder feedback, which we used to update our materiality matrix. Our top sustainability topics for purposes of this report are the following (in alphabetical order