2022
ESG ReportTable of Contents
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G OV E R N A N C E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

E N V I R O N M E N TA L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SOCIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A P P E N D IX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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About this Report
This ESG report covers Zscaler’s global operations for
Fiscal Year 2022 (from August 1, 2021 to July 31, 2022),
unless otherwise specified. In line with our commitment
to transparency, we intend to publish an ESG report annually,
providing data and context about trends in our business,the industry, operational impacts, and our progress.
This inaugural report builds on our company’s legacy ofstrong business ethics and values, which have guided ourapproach since its founding. We are excited to continue
our ESG journey by communicating more actively with our
stakeholders through this report and other channels.
For more information, please visit our website.

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A Letter from
our CEOAt Zscaler, we are passionate about delivering meaningfulchange for our customers, our business, and the planet.
Our vision of creating a world in which the exchange of
information is always secure and seamless has never been
more important. The rise of hybrid work and the need for
secure digital transformation are causing companies torethink, rebuild, and revolutionize their operations.
In the 15 years since we started Zscaler, we’ve secured
thousands of organizations through our modern Zero
Trust approach, helping them accelerate their business
transformation, navigate complex challenges, and thrive
in today’s fast-paced world.
As a critical partner to over 6,700 global organizations,Zscaler is in a privileged position to help make companies
safer and the world a better place. How we run our businessmatters. As builders of the world’s largest security cloud,
we’re always striving to exceed the expectations of ourcustomers, investors, and employees.
As Zscaler continues to grow at a rapid pace, we’re doing
so with integrity and taking into account key ESG priorities.
Earning and maintaining trust is the foundation of everything
we do, and we have built our company to give customers
the security and confidence to turn today’s brightest ideas
into tomorrow’s boldest innovations.
We aim to do what’s right for people and the planet. Ourjourney started by embedding resource efficiency into thedesign of our solution. By adopting Zscaler, our customers

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benefit from a resilient and efficient platform that not onlyoffers better security but also drastically reduces the amountof hardware and power required compared with legacy
security approaches. We are also accelerating the reductionof our own climate impacts. Since achieving 100% renewableenergy in 2021, we are proud to be carbon neutral as of 2022,
and we are working toward further reductions with a newgoal of reaching net zero carbon emissions by 2025.
Our success is a direct result of the hard work and ingenuityof our employees. It’s a testament to this team that Zscaler issignificantly growing our customer base while maintaining a
Net Promoter Score of over 70. I am proud of the culture—
one of open communication, teamwork, and humility—that
inspires people to be and do their best, support each other,serve our customers, and innovate.
I am humbled by the work we do, the customers we serve,
and the people I work alongside who share the Zscaler vision
and whose collective contributions will have an indelible
impact on our company, the technology industry, and,ultimately, the world.
It is my great pleasure to share Zscaler’s inaugural ESG report.
I look forward to your feedback and partnership.
Together, we can secure a world of possibility.

Jay Chaudhry
CEO, Chairman and Founder3

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Zscaler Highlights

O U R I M PAC T

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SOCIAL

GOVERNANCE

6,700+

100%

87%

ESG

customers and over 34 million

renewable energy for globalof employees areoversight byusers protected

data center and offices

highly engaged

Board Committee

150 million+

Carbon Neutral>50%

Security & Privacy

threats

statusgrowth in number ofoversight byblocked daily

in 2022

employees in FY2022

Board Committee

40%

Net Zero

55%

Certifiedof the Fortune 500 rely

carbon emissionsof employees based outside

to international security

on our platformby 2025 goalof the United Statesand privacy standards

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About Zscaler
Company Vision
Zscaler envisions a world in which the exchange
of information is always secure and seamless.

We founded our company in 2007 with the idea that theinternet would be the new corporate network and that security
would empower people to work and live in a hyperconnected,
mobile, and cloud-enabled world.
It is our vision to create a world in which the exchange of
information is always secure and seamless. Secure digitaltransformation has never been more important, and webelieve that the internet should be safe for businesses andthat the user experience should be enjoyable for everyone.
It’s our mission to anticipate, secure, and simplify theexperience of doing business for our customers, transforming
today and tomorrow.

Early days of Zscaler

We built a revolutionary platform from the ground up to
securely connect individual users, devices, and applications.
Today, the Zscaler Zero Trust ExchangeTM—the world’s
largest security cloud—provides organizations with theflexibility and agility to do their best work, whether it’s ahospital caring for patients, a school district protecting
students, or a company inventing tomorrow’s technology.
We are excited to continue leading this transformation, guided
by our strong ESG vision to secure a world of possibility.

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Zenith Live 2022

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Zscaler Zero Trust Exchange: A Transformative Experience
Digital transformation, where applications are moving to the cloud and users are increasingly
mobile, is ushering in immense change that impacts how organizations function, compete, anddeliver. We built the Zscaler Zero Trust Exchange to help companies accelerate their application,
network, and security transformations. Our platform makes doing business and navigatingchange a simpler, more productive experience.
We believe that security is more than a solution that stops threats. When executed effectively,
security is an enabling experience for organizations and the people that they serve. Whenenterprises adopt the right tools to defend against cyberthreats, they become more agile,
are empowered to push forward, and realize their potential faster. Through Zscaler, ourcustomers can experience their world, secured.

To power a modern workplace, it’s necessary
to put people first. This requires flexibility,
allowing users to contribute no matter where
they work or which devices they use. The
Zscaler Zero Trust Exchange prioritizes speed,
reliability, and user experience.

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How the Zero Trust Exchange serves customer needs
Defends against cyberthreats and protects data: As companies shift their criticalassets to the cloud, zero trust security is the way forward in today’s digital world.
Our cloud-based architecture securely connects users, devices, and applications
over any network and replaces the obsolete “castle and moat” legacy systems.
Our approach is a fundamental shift that brings security to our customers, enablingthem to run their businesses wherever they are with speed, agility, and mobility.
Enables secure digital transformation: We partner with customers to transform theirtechnology, replacing inefficient and costly legacy infrastructure with an approach thatis more flexible and environmentally sustainable. We work with our customers every
step of the way so that they can realize the potential of digital transformation.
Enables the modern workplace: Modernizing the workplace is a business strategy
that focuses on people: employees, partners, and customers. This inclusive approachis based on creating the right technological, physical, and psychological conditions
to help people thrive. Zscaler helps companies meet the needs of a distributed,
global, remote workforce.

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How Our Platform Works
The Zscaler Zero Trust Exchange is built using an innovative, cloud-based architecture with inline traffic inspection and advanced threat protection to improve the privacy and security postureof companies. The streamlined, multitenant platform eliminates the need for costly investments
in security hardware, supporting business resilience and environmental sustainability.
Every day, our platform secures hundreds of billions of transactions, allowing organizations
to compete at the speed of today’s business. Through our platform, users can expect seamless
functionality that provides cyber and data protection, zero trust connectivity, and a better
user experience.
Our approach upends the traditional model, in which security is an element of control based on acentralized data center and network perimeter. Our zero trust architecture operates like a modern
switchboard by intelligently connecting thousands of businesses and millions of users to theirapplications based on credentials and policy with data privacy in mind.
To support a work-from-anywhere world, the Zscaler Zero Trust Exchange, spanning over 150
data centers, provides the highest levels of security for our users, regardless of their location.
For more information about zero trust, please visit our website.

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Our Approach to ESG“Our products secure businesses, protect privacy,

enable modern workplaces, and reduce environmental
impact—all of which are important ESG topics forour customers. Through the ESG lens, we are able to

Our ambition is to build an iconic technology company.
We know that a deliberate, well-thought-out ESG approachthat combines clear priorities, effective governance, andbroad implementation delivers benefits to our customers,
employees, investors, and the communities we reach.

strengthen our own business practices, which supports
our growth and creates value for our stakeholders.
-B ill Choi, Senior Vice President,
Strategic Finance and Investor Relations”

At Zscaler, ESG begins with security—the core of ourbusiness—and extends through our values, people-oriented
culture, ethical business practices, and environmentally
sustainable technology platform. We are intentional about
our ESG journey, focusing on programs that will create lastingvalue for our business and customers, with a commitment
to reporting on our ESG progress. In 2021, we continued toformalize our ESG strategy, team, and programs to further
drive Zscaler’s innovation and growth.
We’re committed to delivering an unparalleled platform that
secures what our customers do today and the possibilities they
dream of doing tomorrow. As we continue our ESG journey,
we are excited about pushing forward, together, toward aworld of possibility.

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Zscaler ESG Focus Areas
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Securing Trust

Embedding Environmental Efficiency

Enabling Possibility for People

We have built effective governance structures,
management, and ethical business practices to create
the foundation for trust and foster a culture of integrity,
excellence, and innovation. Our customers rely on us toprotect their business, and our employees, investors,
and partners need to know that we have the processes,
certifications, frameworks, and accountability structuresin place to deliver consistent performance. It is importantthat we uphold these practices throughout our organizationand particularly in the areas of information security anddata privacy. Good governance is also central to our efforts
to ensure social and environmental performance.

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Efficiency has been at the heart of our business from thestart, when we created the cloud-native Zscaler Zero
Trust Exchange. It eliminates the need for expensive andinefficient legacy architecture. Instead, our global platform,
powered with 100% renewable energy, is inherently moreresource efficient and uses significantly fewer resources percomparable unit of functionality when compared to onpremises solutions. In 2022, we achieved carbon neutrality
for relevant greenhouse gas emissions categories, and wehave set our ambitions to further reduce our impacts on
the environment through a goal to reach net zero carbon
emissions by 2025.

We are passionate about protecting the internet because
digital security is the foundation for a more inclusive,
connected, and empowered world. Too often, cyber risks
and outdated security approaches limit business, restricting
where and how employees work. Our platform is a businessenabler, giving people the freedom to live and work on theirown terms.
Our greatest asset is our people. We have grown our global
team while maintaining a culture that has contributed toour success. We give our employees the opportunity togrow with us, advance their careers, learn and build newthings, and achieve their professional dreams at a company
that is building a legacy of excellence. Our giving-backprogram supports community engagement efforts that aremeaningful to our employees.

9Governance

Securing Trust
We secure trust through effective governancestructures, management, and ethical businesspractices that foster a culture of integrity,
excellence, and innovation.
• Corporate and ESG Governance• Risk Management• Information Security and Privacy

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Securing Trust
As a provider of critical security services, we must

Corporate and ESG Governanceearn the trust of our customers every day. We buildthat trust through the quality of our solutions andby operating our business with the highest levels
of integrity.

Our corporate governance framework provides the controls
and structure necessary to guide our rapidly growing business.
Operationally, internal teams manage risk and provide
updates to management and our Board of Directors toensure corporate responsibility.

Our leaders recognize the importance of upholding
our values and ethics as our operating environment
evolves. We demonstrate this through our governancestructures, ethical business practices and policies, risk
management, and relentless focus on our core businessof ensuring data privacy and information security.

Our corporate policies define our principles and expectations
for all employees. The cornerstone of our ethics program,
Zscaler’s Code of Conduct, describes what we stand for.
Code of Conduct training, which emphasizes respecting
others, acting with integrity, and accountability, is mandatory
for all employees. Other policies and programs that help
support our ethical business practices include our privacy,
anti-corruption, insider trading, and whistleblower policies.

Our Board’s Audit Committee oversees risk, including
those related to privacy and cybersecurity, among other
responsibilities. Our Internal Audit Team continuously
reviews company practices and policies to provide reasonableassurance that they are in line with best practices and thatthey are followed throughout our organization. The Internal
Audit Team provides regular updates to the Audit Committee.
The Board’s Nominating and Corporate GovernanceCommittee oversees and evaluates our ESG policies,
programs, and progress to support the sustainable growthof our business. Our dedicated ESG Team works with teams
across our organization to set strategies and goals, buildand embed programs into operations, and track progress.

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Risk Management
Trust is the foundation of everything we do, and we earnthat trust through a robust approach to identifying, managing,and mitigating risk to our business and operations. Our
risk-management processes are based on adhering torigorous security, availability, and privacy standards so that
our customers can adopt our services with confidence.
We manage risks in critical areas of our enterprise throughrobust procedures and controls and through internal audits
and assessments, including escalation to management andthe Board level as appropriate.
We consider and regularly review a wide range of potential
threats that could affect normal business processes. Our
Facilities Team has developed emergency response plans forour global offices and employees. As described in our BusinessContinuity and Disaster Recovery Plan, our Cloud Operations
Team ensures that our Zero Trust Exchange is resilient in theface of natural or human-caused disasters or other unplanned

emergencies. We regularly conduct drills and leverage actual
incidents to test our systems and improve the way we manage
our platform. We build in fault tolerance and redundancy in
key areas of our infrastructure. We operate in more than 150
data centers globally to provide both intra-data center andinter-data center redundancy for our production cloud. These
measures allow us to commit to 99.999% availability in ourservice-level agreements, with additional commitments onlatency and security.

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Our compliance team works to ensure that Zscaler
products are aligned with and certified against the rigorous
requirements of internationally recognized governmentand commercial standards.

Global Commercial Certifications
Our approach to managing risk in our business includes certifying
our solutions to internationally recognized commercial andgovernment standards. These standards help guide our approachto reducing various types of risk in our operations, including
our ability to deliver services to our customers.
For more information on our climate risk approach, see the
Climate Risk and Opportunity section (page 21).

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Information Security and Privacy
We do not compromise on the security and privacy of ourcustomers. We believe that privacy is a fundamental humanright and that it is critical to how we build and maintaincustomer trust. We operate the world’s largest security
cloud and understand the importance of security by design
and privacy by default.
Every day, our platform protects millions of people atthousands of enterprises and government organizations
against cyberattacks and data breaches. We invest in thepeople, processes, and technologies that support the
security, privacy, and resilience our customers rely on us for.

Cybersecurity Approach
We built the Zscaler platform leveraging guidance fromleading industry frameworks to effectively manage andreduce cybersecurity risk. Rigorous risk management
processes ensure the highest levels of confidentiality, integrity,
and availability for our customers. We constantly evaluate
our performance and strengthen the security of our products
to anticipate the evolving threat landscape. We engage
with customers, external experts, and industry groups
with diverse perspectives so that we can continue to deliver
innovative solutions.

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Security, Privacy, and Trust
Security: Our Zero Trust Exchange is based on the principle of leastprivilege, where every entity is assumed hostile. Trust is establishedthrough context, such as a user’s location, their device’s security posture,
the content being exchanged, and the application being requested.
Customer transaction content is not cached or written to disk; inspections
take place in memory. Once inspection is complete, data flow continues
unimpeded, with no record of the source data preserved beyond
tokenized audit logs of the transaction.
Privacy: By default, Zscaler products set privacy settings to maximum
confidentiality. As a data processor, we only process personal data on
behalf of our customers, the data controller, and on written authorizationfrom the data controller. We contractually uphold this responsibility
through our Data Processing Agreement. When possible, customers canchoose to have logs stored exclusively in the U.S. or the EU/Switzerland,
regardless of where their users are located.
Trust: Customers can trust that their data is safe with us. Our platform
is certified to stringent standards. Our Board’s Audit Committee oversees
privacy risks and cybersecurity threats, embedding accountability at
the highest levels of our organization. Our Trust Portal gives customers
visibility into the real-time statuses of our operations.

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Zscaler’s Cyber Risk Management Group identifies andprioritizes protective measures across our products andenterprise while continuously driving improvements to our
security approach as the threats evolve. The group comprises
key functional leaders across the company who share criticalinformation and use data-driven strategies to manage cyberrisks. The group meets regularly, provides updates to the Audit
Committee quarterly, and apprises the full Board as needed.
Our in-house global threat research team, Zscaler ThreatLabz,
has a mission to protect our customers from advanced
cyberthreats. Armed with insights from over 300 trillion daily
signals from the Zscaler Zero Trust Exchange, this team of
more than 100 security experts collectively operates 24/7 toidentify and prevent emerging threats using malware reverse
engineering, behavior analytics, and data science. In addition
to improving Zscaler’s products, the team shares its researchwith the wider industry to promote a safer internet. We
implement security checks and reviews throughout ourdevelopment lifecycle, and our internal security teams andexternal auditors continuously evaluate our products. In addition,
we perform regular vulnerability scans, risk assessments, andpenetration tests to maintain the highest standards of security.
Our cloud platform is monitored in real time, and we provide
publicly available insights into the performance and healthof our services. Our Trust Portal displays real-time statuses
and advisories, thereby providing transparency to maintainthe trust of our customers.

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Privacy Policy and Approach
Our detailed policies—covering employees, customers, andthird parties—govern our data management and use practices.
Keeping our customers’ data secure and private whileproviding seamless and continuous service is fundamental
to our business. In line with our commitment to helping
our customers comply with local privacy laws, we implement
technical and organizational measures for customer datathat pass through our Zero Trust Exchange.
Our privacy policy respects our users’ right to access, correct,
and delete personal data. We require our vendors to abideby these same practices. We conduct due diligence to ensurethat our vendors’ security and privacy practices are appropriate
to their level of data access and the scope of the services
they provide.

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Our full-time certified privacy professionals and our global
security compliance team are responsible for day-to-day
management, ensuring that we meet our obligations andrequirements under various privacy and security certifications.
In line with industry best practices, we require all Zscaler
employees and contractors to complete our extensive annual
data privacy and information security training to protect both
Zscaler’s and our customers’ assets.
For more information about our data privacy practices, please
visit our Data Privacy and Protection webpage.
For information about our security architecture, visit our
Security and Compliance webpage.

When possible, customers can choose to have logs stored
exclusively in the U.S. or the EU/Switzerland, regardless of
where their users are located. Additionally, we provide ourcustomers with the ability to configure which of our global
data center locations processes their data according totheir compliance needs.
With respect to our corporate website, we collect personal
data only for specific, explicit, and legitimate business purposes,
and we store that data only for the period necessary toachieve the purpose of the storage, or as permitted by law.

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Environmental
Embedding Environmental Efficiency
Our efficient cloud platform is powered byrenewable energy, enabling our customers tosecurely accelerate digital transformation
while reaching their environmental objectives.
We have achieved carbon neutrality and areworking toward achieving net zero carbon
emissions by 2025.
• Delivering Environmental Benefits
to our Customers• Lowering our Carbon Footprint• Climate Risk and Opportunity

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Embedding Environmental Efficiency
We are committed to minimizing our impact on the planet and supporting ourcustomers to reach their environmental goals by providing a security cloud thatis significantly less emissions-intensive than on-premises solutions.
As a software company, our most significant carbon impact comes from theelectricity used to power our cloud-based services. We have taken steps
to address this impact throughout our offering—from the architecture andoptimized processing to the data centers we use and renewable energythat powers our cloud.
Our platform and global offices have been powered with 100% renewable energy
since 2021. We decided to reduce our immediate emission impacts in additional
areas through high-quality offsets for 2022. We believe that further reductions

Delivering Environmental Benefits to our Customers
When customers entrust their cybersecurity to our cloud, they can securely accelerate theirdigital transformation while reaching key environmental objectives:
Minimize IT waste: Our solution eliminates
stacks of security appliances and other onpremises hardware as well as the resources
required for their transportation, installation,and maintenance.

Reduce carbon footprint: We help customers
lower their greenhouse gas (GHG) emissions
associated with their security program
through our zero trust platform, which is
powered by 100% renewable energy.

Lower energy consumption: We deliver better
security using less energy per comparable
unit of functionality with a purpose-built
multitenant cloud security solution.

Enable a hybrid workplace: By supporting asecure work-from-anywhere experience, wehelp customers reduce everyday emissions
from employee commutes and business travel.

are necessary, and we have set a goal to reach net zero carbon emissions by 2025.
The Zero Trust Exchange platform
requires fewer hardware resources and
IoT

Zero Trust
Exchange

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uses dramatically less power per user
than legacy solutions.

Data Center

WorkforceZSCALEROT

Customers

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Life Cycle Assessment of Environmental Impact:
Zscaler vs. On-Premises Cybersecurity Solutions
As part of our effort to understand and address Zscaler’s holistic
environmental impacts and benefits, we worked with a thirdparty environmental expert to conduct a life cycle assessment(LCA) following ISO principles. The LCA study compared theresources required for one year of use of Zscaler Internet
Access (ZIA) and Zscaler Private Access (ZPA) products withthose required for comparable on-premises solutions providing
similar cybersecurity functionality for a specified numberof users.
With a cradle-to-grave focus on carbon intensity, the analysis
examined phases of the value chain, including raw materials,
upstream production processes, hardware manufacturing,
distribution, customer use, and hardware end-of-life.

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Product Life Cycle - Cybersecurity Solutions

Raw Materials

Manufacturing

Distribution

Hardware

Customer Use

End-of-Life

Use Phase

Raw Materials + Manufacturing+ Distribution
The carbon footprint of security
hardware includes impacts from theextraction and processing of raw
materials, product manufacturing,assembly, and distribution tosite locations.

Customer Use
Energy is required to power
hardware for processing andscanning user traffic related tosecurity services. It is also used
to provide cooling for serverrooms and data centers.

End-of-Life
IT hardware is retired anddisposed of at its end-of-life
as newer hardware andtechnologies are introduced.

Zscaler Approach
Our purpose-built
multitenant security cloud
relies on networking andserver hardware customized
from high-performance,
off-the-shelf components.

Zscaler Approach
Our cloud, which is run in
150 data centers aroundthe world, has been poweredby 100% renewable energy
since 2021.

Zscaler Approach
To the extent possible, wereuse or recycle our retired IT
equipment after the destructionof sensitive components,
thereby reducing the amountof hardware going to landfills.
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Life Cycle Assessment Results
The result of the analysis shows that the Zscaler cloud platform can deliver significant
hardware reduction and energy efficiency over legacy on-premises solutions:

Energy usage is the largest
source of emissions

Up to 93% Less
Energy Usage

Emissions by productlifecycle stage (MTCO2e)
On-premises
Solution

Zscaler(ZIA + ZPA Product)
140,000

4.3

6.8

.1

.2

.001

.03

.001

15X Lower
EmissionsZscaler solution is significantly
less emission-intensive thanon-premises solutions *Energy consumption
for 1 year of cybersecurity (kWh)Greenhouse gas emissions for 1 yearof cybersecurity (MTCO2e)

Case for Organization of 3,000 Users

Total GHG Emissions
80

129,957

69.6

120,000
60

100,000

Kilowatt Hours

62.6

Security cloud running at
scale results in improved
energy efficiency-80%

80,000-93%

60,00040,000

MTCO2eEmissions
Sources

40

20

26,38520,0008,962
Customeruse

Raw materials +manufacturing

Distribution

End-of-life

0

4.4
0

On-premises
Approach

Zscaler
Heavy Usage
Customer**

Zscaler
Average
CustomerOn-premises
Solution

Zscaler
ZIA + ZPA
Product*Comparison between equivalent and appropriately sized on-premises hardware (next-generation firewall, secure web gateway, load balancer, and VPN appliances) and actual Zscaler
usage for ZIA and ZPA products to support an organization with 3,000 users. Additional details on the LCA study can be found in the Appendix (Page 35)**Heavy Zscaler usage represented by the top quartile of Zscaler customers by bytes of traffic.
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Lowering Our Carbon Footprint
Greenhouse Gas Commitments and Targets
We are committed to addressing our own climate impacts
with urgency and creating meaningful change for ourcustomers and the planet.
We are building on our milestone of achieving 100%
renewable energy for our global offices and data centersand have broadened our attention to reducing emissions inadditional business areas, including our Scope 1 and Scope

Zscaler achieved carbon
neutrality in 2022, and we
set a goal to achieve net
zero by 2025.

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3 emissions. We have taken immediate steps to eliminate
our projected emissions for Calendar Year 2022 through theuse of high-quality, Verra-certified carbon offsets that are
additional and permanent to achieve carbon neutrality for ouroffices, data centers, business travel, and procurement alongwith customer and public cloud usage.
We recognize that carbon neutrality is not the end goal andthat deeper reductions and optimizations are necessary. That
is why we are working toward a new goal to reach net zerocarbon emissions by 2025, joining many of our customers ina collective effort to transition to a lower-carbon economy.
We are developing a path to net zero GHG emissions byimplementing policies and practices, such as increased
supplier engagement, lowering power needs, and using
data to identify additional areas for improvements. This will
reduce our operational impact as our business grows. We
will continue to share our progress so that our customers havethe confidence that they are working with a partner alignedwith their carbon-reduction goals.

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Efficient Platform Architecture by Design
Zscaler’s Zero Trust Exchange is built on a cloud-nativearchitecture that is designed to be more efficient thanlegacy on-premises customer-hosted solutions andvirtualized solutions on public clouds.
Through our differentiated architecture, we are able toefficiently process more than 250 billion transactions perday. The following architecture features assist in lowering
energy consumption and associated carbon emissions:• By building a true multitenant solution from the ground up
using specialized hardware, we are able to better use
resources based on our customers’ locations and optimize
our capacity globally. This reduces idling hardware andwasted resources.
• Efficiency is necessary when designing a solution toprocess billions of transactions. This required us to rethink
and reinvent traditional ways of doing things in orderto accelerate efficiency and deliver this type of in-line
solution with a better user experience.
• Innovations such as our Single-Scan Multiple Action(SSMA) drastically reduce the number of compute cycles
compared to the service chaining approach of legacy
platforms, which require workloads to be passed along
multiple appliances for the same level of protection.

ZSCALERE SG R E P O RT 2 02 2

• Optimizations to our platform have resulted in 12x
increased throughput since 2013, leading to better
traffic density per unit of hardware and improving
performance while reducing hardware and energy needs.
• Deploying our own service edge allows for lesscomputational overhead and faster processing
compared to a virtual security appliance approach.

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As an edge service provider, our footprint is not concentrated
in any one location but spread across many global locations.
Through the efforts of our data center providers, by November
2021, more than 75% of the energy used in the data centerscame from renewable sources. To make up for the nonrenewable difference, we purchase high-quality renewableenergy credits (RECs) from country-specific wind and solar
projects. This allows us to reach 100% renewable energy
for our data centers and global offices.

Reducing the Carbon Impact of Cloud Operations
Since the energy used to power our cloud platform is ourlargest source of GHG emissions, we focus on reducing
our environmental footprint through a strategic approachto renewable energy.
We built the Zero Trust Exchange by choosing data centersthat are exceptionally connected with the highest level of
security, are close to users, and are operationally reliable.
In 2021, we updated our data center procurement processes
to integrate sustainability considerations into facility selection
and renewal criteria. Where possible, we prioritize data
center providers that use renewable energy, have their own
climate goals, and achieve efficiency through implementing
other practices, such as motion-activated LED lights,
automated controls, and recycled water for cooling. We
push improvements and monitor progress during regularbusiness reviews with our data center providers, and we
hold our partners accountable during renewal periods.

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Climate Risk and Opportunity
We are using a comprehensive approach to assessing climate
risk across the key areas of our business to understand where
our operations may need to adapt.
We examine several areas of our business—including
products, data centers, customers, employees, office locations,and more—against different types of climate risk, per the
Task Force on Climate Related Financial Disclosures (TCFD)
framework. This helps us understand our risk levels andexposure and informs our risk-management approach, whichis overseen by our Board’s Audit and Nominatingand Governance committees.
The results of our climate risk assessment conducted in 2022
revealed that our cloud is resilient against climate risk througha highly redundant system of data centers deployed worldwide.
If any region or data center experiences an outage, we havethe capacity to process user traffic in other parts of the cloud,thereby minimizing business disruption. Additionally, our largest
sites are located in areas with relatively low physical climate risk.
More information can be found in our CDP response.
As climate change continues to create chronic events, such as
prolonged heat waves, storms, and fires, this may increase theneed for more businesses to move to the cloud and adopt hybrid
work environments. We are hopeful these organizations willturn to Zscaler to accelerate their digital transformation, so thattogether we might build a climate-resilient world.

ZSCALERE SG R E P O RT 2 02 2

CY2021 GREENHOUSE GAS (GHG) INVENTORY
Verified emissions for Calendar Year 2021 (from January 1 to December 31, 2021)
by scope are as follows:
SCOPE

Scope 1 (direct)

EMISSIONS (MTCO2e)362

INCLUSIONS

Natural gas used to heat offices

Scope 2(indirect, location-based)

25,096

Indirect emissions associated with purchased electricity
in offices and co-located data centers

Scope 2(indirect, market-based)

0

Market-based includes purchased environmental attributecertificates (EACs) and renewable energy credits (RECs)
Purchased goods and services

Scope 3 (indirect)

4,564

Business travel
Use of productPublic cloud usage

Total 1 + 2 + 3(location-based)

30,022

Note: We have purchased renewable energy certificates to match the projected CY2022 energy use from non-renewable sources toaddress Scope 2 emissions and have offset our projected CY2022 Scope 1 and Scope 3 emissions to reach carbon neutral.

For more details, please see our greenhouse gas verification statement.

21SocialEnabling Possibility for People
Our cloud-based digital security platform fosters
a more inclusive, connected, and empowered
world. We invest in our global team of employees
and provide them with opportunities to growwith us, advance their careers, and achieve theirprofessional dreams.
• Talent Attraction and Retention• Talent Development• Employee Wellbeing• Diversity, Equity, and Inclusion• Community

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Enabling Possibility for People
The Zscaler difference comes from a global team thatis technically skilled, forward-thinking, and aligned
to our mission. We deliver this technology throughthe dedication and ingenuity of our people, who are

Stockholm
LondonBurnabypassionate about creating a safer future.

Burlington
BostonSan Jose

We strive to create a positive and inspiring workplace

Plano

TysonsRaleighAlpharettaFrankfurt
MunichAmsterdam
Paris
ZurichMadridValencia

Wroclaw
ViennaTokyo

Mohalibuilt on a culture of excellence, innovation, and strong
values. We are focused on enabling the employees who

Seoul

Ramat Gan

Mumbai

Pune
Bangalore

San José

power our business and invest in training as well as onproviding opportunities for our employees to grow withus at every level.
SydneyCape Town

We are also passionate about connecting with our

Melbourne

communities and supporting our team in contributing tocauses that are meaningful to them. Through Zscaler’s
giving-back efforts and other community engagement
programs, we help others secure their own futures.

ZSCALERE SG R E P O RT 2 02 230+

5,000+

55%

office locations

employees

based outside of the U.S.

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Talent Attraction and Retention

Zscaler Culture

Zscaler is a destination for top cybersecurity talent looking
to innovate at a mission-driven company revolutionizing
the world’s approach to security. As we continue to grow,
we have created a talent-attraction strategy based on thefollowing principles:

The Zscaler values form the pillars of our culture and drive our
success, supporting our high-performing, can-do culture,and high rates of employee satisfaction.

• Building and recruiting from diverse
talent pipelines• Cultivating a positive, inclusive culture thatcreates opportunities for our people tosucceed alongside Zscaler• Providing a competitive compensation
and benefits package

We have been named a"Best Place to Work" by Glassdoor
for two years in a row.

ZSCALERE SG R E P O RT 2 02 2

In the past two years, Zscaler has doubled in size. We
had close to 5,000 employees as of the end of our 2022
fiscal year. As we continue our growth, we recognize thatmaintaining our values and culture, sustaining and improving
the employee experience, and never compromising excellent
performance will be critical to our ongoing success. In 2022,
our new Chief People Officer joined Zscaler and will continue tostrengthen the practices and programs that support our people.

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Zscaler Values• Teamwork• Open Communication• Passion• Innovation• Customer Obsession

We use our annual employee engagement survey and periodic
pulse surveys to gauge employee sentiment. These surveys
give us a broad view of the employee experience, keep ourleaders informed of areas for improvement, and help us
understand the nuances across different demographics andgeographies. We are proud to have an engaged and motivatedworkforce that exceeds the survey benchmark for companies
in our industry, and we are determined to remain humble andopen to constructive feedback and new ideas.

94%

87%

of employeesof responding

are aligned with our

employees are

strategic mission

highly engaged
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Recruiting Quality TalentCompensation and Benefits

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“Creating a workplace that supports the needs of

employees—so they, in turn, can provide the best

We operate in a competitive hiring environment, whereindustry experts estimate there are approximately 3 million
cybersecurity job openings. Our recruiting strategy is focusedon hiring the best talent and building the next generationof cybersecurity and go-to-market leaders.

Our efforts to build a high-quality talent pipeline include
the following:• Employee referral programs that provide a monetary
bonus for employees who recommend people we hire.

We value not just what our team accomplishes professionally
but also what they need personally for their families andtheir future.

service to our customers—is critical. Zscaler is

In addition to base pay, employees may be eligible for annual
bonuses that are tied to our financial results and long-term
equity incentives that vest subject to continued service andperformance metrics. Our employee stock purchase plan
allows employees to contribute a percentage of their wages
to purchase Zscaler stock at a discount.

support our growing workforce while strengthening

investing in the People & Culture team to ensure that
we can scale our programs, policies and benefits toour ‘Humble with Hustle’ culture.

”–B rendan Castle, Chief People Officer

Our competitive benefits packages include:• University recruiting and internship programs thatprovide students and recent graduates direct work
experience through projects that have a tangible
impact on our business.

• Comprehensive health plans• Wellbeing support• Retirement programs• Executive recruiting outreach to passive candidates
to build our pipeline and fill our leadership roles.

• On-demand learning and development• U.S. Department of Defense (DOD) Skillbridge programthat provides U.S. service members opportunities toempower, encourage, and explore taking the next steps
as they transition into civilian careers.

• Paid time off• Global tuition assistance program• Supportive parental leave(including 18 weeks of fully paid
maternity leave and 8 weeks ofpaternity leave for eligible employees)

These programs have contributed to our recruiting successand our ability to double our workforce in the past two years.

ZSCALERE SG R E P O RT 2 02 2

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Talent Development
We’re committed to engaging and developing employees at
every stage of their careers. We make substantial investments
in talent development, and we pride ourselves on giving
employees unparalleled opportunities to build their careersand do their best work. We know that our approach is
working when great employees are retained and advancein their careers. In 2022, our promotion rate was 22% for
employees who had been in their roles for at least two years.

Training, Development, and Sponsorship
Employees who are set up for success and fulfilled in their work
do more to delight our customers and deliver positive results forour company. That’s why we provide ample opportunities andresources for employees to achieve career growth.
Our Succeeding at Z toolkit offers a suite of training anddevelopment programs that support the needs of our businessand meet people where they are in their career journey. It
helps employees clarify their professional ambitions and tap
into development experiences to meet their goals, including
job-specific training. We offer a variety of tools, including
structured sales training for internal certifications, tech talks
on cybersecurity trends and best practices, and resources
on management best practices.

ZSCALERE SG R E P O RT 2 02 2

We also offer development and education opportunities,
including curated content from Skillsoft-Percipio, ExecOnline,
and BTS Rapid Learning. This includes coursework fromacademic institutions, micro-learnings and targeted audio
books, and vignettes. Additionally, eligible employees may
receive tuition reimbursement to help them further theirskills, knowledge, and job effectiveness.
We also believe in the value of learning from each other:
Everyone has something to give and something to learn.
Mentoring at Zscaler connects more than 450 mentors
and mentees at the company to help accelerate learningand foster our culture.

Leadership Development
Leaders help set the tone for our company culture, modeling
Zscaler values and cultivating a positive employee experience.
Our Leading at Z program helps people managers unlock
the potential of their teams and themselves. Throughcomprehensive resources that focus on our “10 Leadership
Principles and Pillars,” Leading at Z defines how Zscaler
leaders are expected to live and lead. This program alsoenables measurement and feedback, and supports
individual development based on where leaders arein their leadership journey.

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Newly hired and promoted managers are required to complete
live and virtual new manager coursework, which enables
their success from day one. All managers have access to tools,
resources, and timely live programming that helps them embody
our leadership principles. Leaders identified as top talent
have expanded access to development, including one-on-one
leadership, executive coaching, and advanced education.

Based on our biannual
manager effectiveness survey,
our investment in leadershipdevelopment is having a positive
impact: 91% of employees who
responded to the survey said
that their managers are effective
at building great teams, driving
results, demonstrating ownership,and role-modeling Zscaler values.

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Employee Wellbeing

COVID-19 and our Hybrid Work Strategy

Through periodic surveys and direct feedback, we havelearned that wellbeing is important for Zscaler employees.
Our investments in employee wellbeing are helping us
build a more agile and inclusive company.

The COVID-19 pandemic disrupted businesses everywhere
and illustrated the importance of a flexible work approach thatkeeps people safe and supports employees’ unique life needs.

Wellbeing at Z is a holistic program that supports
employees across four pillars:• Physical: We offer preventative health programs and benefits
focused on physical activity, nutrition, and self-care.
• Emotional: We provide an enhanced employee assistanceprogram that encourages employees to care for theirmental health and provides resources to manage stressand anxiety.
• Social: We help employees build relationships and cultivate
a sense of belonging through our community programs,
employee resource groups, and mentoring opportunities.
• Financial: We provide the education, tools, and benefits
that help our people understand and plan for their financial
future. We offer these programs globally and tailor themto local and group-specific needs.

ZSCALERE SG R E P O RT 2 02 2

Now, more than ever, we recognize that employers who want
to attract and retain top talent must balance the needs ofthe business with the needs of a changing workforce. Buildingon the lessons learned and the changes we made during
the pandemic, we have embraced a hybrid work strategy
in line with local and regional practices. We are promoting
productivity by creating flexible ways of working that balancecollaboration, innovation, and connectivity with employees’
personal preferences and needs. This supports our employees
to do their best work and aligns with Zscaler’s productofferings, which enable people to connect seamlessly andwork securely from anywhere.

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Zscaler Combats
Cyberbullying to Support
Student Wellbeing
In response to our education customers’ concerns about
the uptick in cyberbullying, Zscaler launched a newfeature in our Zero Trust Exchange for K-12 schools.
This feature weaves together cyber threat and data loss
prevention with online student safety, giving schools
the ability to catch harmful activity early.
With AI-powered detection that includes a comprehensive
dictionary of keywords and phrases, and using our cloudnative proxy—which sits between students, the internet,
and online applications—our platform identifies harmfulinteractions or searches so that schools can prevent thecontent from being sent, loaded, and/or received. Schools
can also proactively select and manage the applications
and websites that students can access.
This innovation allows school IT administrators, teachers,
and counselors to get the information they need to act
swiftly and keep students safe.

27

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DEI Approach

At Zscaler, security means more than protection from threats.
It means creating a culture of belonging and inclusion where
everyone feels empowered to use their voice.

Our DEI approach is guided by our DEI Committee composedof leaders from across our organization and focuses on thefollowing objectives:

Our investments in diversity, equity, and inclusion (DEI)
constitute a business imperative: we strive to create a work
environment where people feel safe, included, and supported.
We also know that when we attract, engage, and develop
people from a wealth of unique backgrounds, experiences,and thinking, we can create a high-performing and customerobsessed team.

• Attract the best diverse cybersecurity talent: Expand
our employment marketing reach; ensure representative
candidate slates; and eliminate bias in the marketing,selection, and decision processes.

We are a truly international company, with employees in 26
countries. When our global teams are representative of thecustomers and communities we serve, we’re able to better
anticipate customer needs, empathize with their experiences,and create solutions to cybersecurity threats.

• Build inclusion awareness and engagement: Educate leadersand employees on inclusion and bias, support and enable
a community of employee resource groups, and celebrate
our differences.

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Increasing diverse representation is a challenge in thetechnology sector, and while we have room to improve,
we remain committed to attracting and supporting a diverse
workforce. When seeking external candidates for open
positions, our recruiting teams strive to build a talent pipelinethat is diverse at the top of the hiring funnel, connectingwith candidates from under-represented groups.
As our employee base grows, we are investing in programs
and structures that foster inclusion and belonging. We havecreated a Head of Diversity, Equity, and Inclusion position
to work alongside leaders across the company to acceleratethese efforts. Looking ahead, one of our key priorities is todevelop a holistic DEI strategy that covers the talent pipeline,
recruitment and hiring practices, pay and benefits, promotion,
retention, and overall employee experience.

• Develop diverse talent: Advocate for underrepresented
populations, enable career development, and achieve parity
in rewards and remuneration.
• Support a diversity of team needs: Measure and improvethe experience of underrepresented populations and design
benefits programs that meet our teams’ needs.

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Employee Resource Groups

DEI Education, Training, and Programming

Zscaler supports six employee resource groups (ERGs).
Each ERG provides space for underrepresented groups tofeel supported and encouraged to advance in their careers.
At the time of publication, 20% of Zscaler employees
participate in at least one of our ERGs.

We offer courses for diversity awareness and training on
topics such as managing bias. In addition, we offer tailored
training for leaders that emphasizes the role of diversity inbuilding high-performing teams.

Our ERGs support our DEI approach by engaging theirmembers as well as the larger Zscaler population througheducation, events, and giving-back opportunities. In 2022,
a highlight included a Juneteenth Town Hall led by the Black
Employees at Zscaler (B@Z) ERG, in which information wasshared about a community-giving effort that supported three
STEM-focused nonprofits with company grants for eachorganization. Our ERGs also led events to celebrate Pride
Month, the Martin Luther King Jr. Day of Service, womenin tech leadership, and more.

WIZE

SOCIALA P P E N D IX

• Zscaler Women Breaking the Mold: A speaker series
in which female employees share their experiences• Onwards and Upwards: A discussion forum aboutlife hacks and career advice• Inspirational Career Stories: Speaker series@
featuring leaders across the industry

B Z

B@Z
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Our Women in Zscaler Engage (WiZE) ERG has developed
extensive programming, including the following:

In 2022, we held a 16-week pilot leadership training programthat matched high-potential women with a senior executive
sponsor and career coach. Based on overwhelmingly positive
feedback from the participants, we are extending the program
to another cohort of women leaders.

ZSCALERG OVE R N A N C E

B@Z

WIZE

B@Z

Vets @ Z

WIZE

B@Z

Sabor @ Z

Vets @ Z

WIZE

Sabor @ Z

Vets @29Z

OVE RVI E WCommunity

Recent highlights of our Zcares community engagement include:

We believe in leveraging our skills, passion, wisdom, time,and resources to support organizations and communities increating a better and safer world.

COVID-19 relief in India: India, home to nearly a third of theZscaler workforce, experienced an acute pandemic crisis in
the spring of 2021. Employee donations totaling more than$100,000 were 2-to-1 matched by Zscaler, giving a total ofover $300,000 to the American India Foundation’s COVID-19
relief efforts.

We invest in the community in two ways: bringing together
the technology community that is shaping digital transformationand giving back to the local communities where we operate.
In the technology community, we’ve built the CXORevolutionaries platform, where thought leaders dedicatedto building a safer digital future can connect and shareinsights. This platform also champions diversity throughinclusive programs, such as the Women in IT Executive Circle.

Giving Back with Zcares
Our giving-back efforts are guided by a desire to make apositive difference in the communities in which we operate.
We do this by supporting nonprofit organizations that ouremployees are passionate about.
In 2022, we formed a Zcares Giving Back Committee todevelop a formal strategy, solicit feedback from employees,
and manage the implementation of volunteer programsand donation campaigns.
 scaler has a legacy of philanthropy that reflects ourZcommitment to supporting those in need.

Z-Forestation tree-planting: In partnership with Forests
by Heartfulness, our employees planted 15,000 trees inHyderabad, Bangalore, Pune, and Mohali—where our offices
are located in India. With the volunteer support of more than
600 Zscaler employees and their families, this project aims toenhance biodiversity, water systems, and carbon sequestration
to benefit local communities.

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“Z-Forestation was a first-of-a-kind initiative for us

to plant 15,000 saplings to create mini forests in four
cities in India. The overwhelming response we sawfrom our employees, their families, and friends madethis event a true celebration of 15 years of excellence
at Zscaler while making our tiny contribution toward
a greener and sustainable future.

”–V ishal Gautam, Senior Director of Engineering & Site
Managing Director, Zscaler

Ukraine support: We supported a number of causes in
2022 related to humanitarian efforts in Ukraine, including a$100,000 employee donation matched 100% by Zscaler tothe International Committee of the Red Cross, Global Giving,and UNICEF. We also partnered with Okta and TechSoup
to support cybersecurity-related awareness and education
among nonprofits operating in the region.
Community engagement in the U.S.: Through other giving
and volunteer efforts, we supported Second Harvest Food
Bank of Silicon Valley, Habitat for Humanity, Feeding America,
David’s Harp Foundation, Together We Rise, and otherorganizations.
Z-Forestation tree-planting

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Sustainability AccountingStandards Board (SASB) Index

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The SASB Standards identify the subset of environmental, social, and governance (ESG) issues
most relevant to financial performance in 77 industries. The responsibility for managing thesestandards is with the IFRS Foundation, a not-for-profit public interest organization establishedto develop high-quality, understandable, enforceable, and globally accepted accounting andsustainability disclosure standards. Zscaler performs reporting according to the SASB standard
for the Software and Information Technology Services Industry.

ZSCALER SASB INDEX TABLE - FY2022
TOPIC

ACCOUNTING METRIC(1) Total energy consumed,(2) percentage grid electricity,(3) percentage renewable

CATEGORY

Quantitative

UNIT OF MEASURE

Gigajoules (GJ),
Percentage (%)

CODE

TC-SI-130a.1(1) Total energy consumed: 236,394 GJ(2) and (3) We work with data center providers that draw
electricity from the grid and support renewable energy throughthe purchase of RECs and VPPAs. Through these providers,
our hardware infrastructure energy usage is over 75% renewable.
Zscaler matched the remaining non-renewable energy usage
with additional REC purchases, resulting in 100% renewableenergy for our cloud.
Note: Data covers the January 1, 2021–December 31, 2021
reporting period.

Environmental
Footprint ofHardware
Infrastructure

ZSCALERDATA / REFERENCE• 2022 ESG Report - Environment (Page 15)• Environment Page
(1) Total water withdrawn,(2) total water consumed, percentage
of each in regions with High or ExtremelyHigh Baseline Water Stress

Quantitative

TC-SI-130a.2

Zscaler works with data center providers to host our cloud
solution. Water consumption data is not currently available.

Discussion of the integration ofenvironmental considerations into strategicplanning for data center needs

Discussion andAnalysis

TC-SI-130a.3• 2022 ESG Report - Environment (Page 15)

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SOCIALA P P E N D IXZSCALER SASB INDEX TABLE - FY2022
TOPIC

ACCOUNTING METRICCATEGORY

Description of policies and practices relating
to behavioral advertising and user privacy

Discussion
and Analysis

Number of users whose information is used
for secondary purposes

Quantitative

UNIT OF MEASURE

NumberCODE

DATA / REFERENCE

TC-SI-220a.1• 2022 ESG Report - Privacy (Page 13)• Privacy Page

TC-SI-220a.2

None. Zscaler does not use user information for any purpose
other than those stated in our Data Processing Agreement.
Zscaler stores only a limited amount of personal data (e.g., IP
addresses, URLs, user IDs, and user groups) used to deliver ourservice• 2022 ESG Report - Privacy (Page 13)• Privacy Page

Data Privacy& Freedom ofExpression

Total amount of monetary losses as a resultof legal proceedings associated with user
privacy(1) Number of law enforcement requests
for user information,(2) number of users whose information
was requested,(3) percentage resulting in disclosure
List of countries where core products orservices are subject to government-required
monitoring, blocking, content filtering,or censoring

ZSCALERE SG R E P O RT 2 02 2

Quantitative

Reporting currency

TC-SI-220a.3

Zscaler did not incur any monetary losses as a result of legal
proceedings associated with user privacy.
Material legal proceedings are disclosed in Zscaler’s public filings.

Quantitative

Discussion andAnalysis

Number,
Percentage (%)

TC-SI-220a.4

Zscaler is a B2B service provider, and such requests for user
information are forwarded to our customers who manage theirusers’ information. Zscaler stores only a limited amount of
personal data (e.g., IP addresses, URLs, user IDs, and user groups)
and does not retain user content information.

TC-SI-220a.5

Zscaler’s customers include large multinational organizations
with operations throughout the world. Our Zero Trust Exchangesits inline between the user and the content they are trying toreach. Zscaler follows all U.S. government regulations concerning
embargoed countries.

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SOCIALA P P E N D IXZSCALER SASB INDEX TABLE - FY2022
TOPIC

Data Security

Recruiting &Managing a Global,
Diverse & Skilled
WorkforceIntellectual
Property Protection& Competitive
Behavior

Managing
Systemic Risks
from Technology
DisruptionsZSCALERACCOUNTING METRICCATEGORY

UNIT OF MEASURECODEDATA / REFERENCE(1) Number of data breaches,(2) percentage involving personallyidentifiable information (PII),(3) number of users affected

Quantitative

Number, Percentage(%)

TC-SI-230a.1

We did not experience any material data breaches in FY22.
Material breaches, if any, will be announced on our Trust Portal
and disclosed in Zscaler’s public filings.

Description of approach to identifying andaddressing data security risks, including useof third-party cybersecurity standards

Discussion andAnalysis

Percentage of employees thatare located offshore

Quantitative

Employee engagement as a percentage

TC-SI-230a.2• 2022 ESG Report - Security (Page 13)• Zscaler Certifications

Percentage (%)

TC-SI-330a.1

55.0% of our employees are located outside of the U.S.

Quantitative

Percentage (%)

TC-SI-330a.2

Based on an employee survey conducted in August 2022,
87% of our employees are highly engaged

Total amount of monetary losses as aresult of legal proceedings associated with
anticompetitive behavior regulations

Quantitative

Reporting currency

TC-SI-520a.1

Zscaler did not incur any monetary losses as a result of legal
proceedings associated with anticompetitive behavior regulations.
Material legal proceedings are disclosed in Zscaler’s public filings.

Number of(1) performance issues and(2) service disruptions;(3) total customer downtime

Quantitative

Number, Days

TC-SI-550a.1

We are able to meet the 99.999% availability target, as stated in
our Service Level Agreement. Performance issues and disruptions
to our service are announced on our Trust Portal

Description of business continuity risks
related to disruptions of operations

Discussion andAnalysis

TC-SI-550a.2• 2022 ESG Report - Risk Management (Page 12)

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Life Cycle
Assessment Details

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The Life Cycle Assessment (LCA) study applies ISO 14040, 14044, and 14067 principles, but
has not yet undergone a peer review with an additional third party per the standards. Additional
impacts, such as travel for server installation, maintenance, and client software, were not includedin this study. The study assumes full replacement of on-premises security appliances—the
actual impact may vary depending on a number of factors, including customer implementation,
number of locations, and types of hardware.

APPROACH TO LCA COMPARISON
TOPIC

ON-PREMISES SOLUTION

Functional Unit ofComparison

Resources required for providing 1 year of cybersecurity for organizations
with 3,000 and 25,000 users.

HardwareAppropriately sized next-generation
firewall, load balancer, VPN, and secure web
gateway appliances to support users acrossdata centers and business locations

Cloud hardware is calculated based on thepercentage of total bytes of traffic processed
per customer at each data center. The
impact of the actual Zscaler total hardware isallocated using these percentages.

Energy use per security appliance type isbased on typical power consumption in
product specifications, PSU wattage, orthermal rating, adjusted for time of day load.
Power Usage Effectiveness ratio (PUE) isassumed to be 1.6 average in the model.

Energy use is calculated based on thepercentage of total bytes of traffic processed
per customer at each data center. The
impact of total Zscaler energy consumption
is allocated using these percentages.

Customer Use

ZSCALERE SG R E P O RT 2 02 2

ZSCALERAPPROACH

Services include: cyber threat protection, access control, data loss protection, network access,and load balancing.

The environmental impact of hardware was calculated at the hardware component level using
emissions factors from other published LCAs and life cycle inventory databases
Impacts for all hardware were amortized over a 5-year lifetime. The study modeled therecycling of hardware at end-of-life.

For comparability, the electricity emissions factor is assumed to be the same, using the global
average from the International Energy Agency.

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E NVI RO N M E N TA L

SOCIALA P P E N D IX

LCA RESULTS DETAILSGHG Emissions by life cycle stage for 1 Year of security for on-premises versus Zscaler solutions (MTCO2e)
LIFE CYCLE STAGE

ON-PREMISES SOLUTION:
3,000 USERS ACROSS 20 FACILITIESZSCALER SOLUTION:
3,000 USERS

ON-PREMISES SOLUTION:
25,000 USERS ACROSS 200 FACILITIESZSCALER SOLUTION:
25,000 USERS

Raw Materials +Manufacturing

6.82

0.139

53.76

1.270

Distribution

0.22

0.001

1.71

0.013

Customer Use

62.56

4.273

461.8336.127End-of-Life

0.03

0.001

0.26

0.006

Total

69.63

4.41

517.5537.42

ZSCALERE SG R E P O RT 2 02 2

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For more information, please visit zscaler.com/corporate-responsibility
For questions, please contact esg@zscaler.com

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