CALIFORNIA AB 1305 DISCLOSURE

Sidley Austin LLP is committed to continuously improving our business operations to lessen our impact on boththe local and global environment. We are also dedicated to doing our part to ensure a sustainable future,
conducting business in a responsible and mindful way that creates long-term value for our people, clients, andcommunities. We aim to minimize our impact on the environment by setting ambitious climate commitments to
reduce our carbon emissions, as well as by creating a more sustainable workplace and culture across ourglobal firm.
While it takes many factors to successfully achieve these commitments, Sidley recognizes transparency is an
essential element. The California Health and Safety Code (AB 1305) requires businesses marketing or sellingvoluntary carbon offsets (VCOs) or making certain claims within the state to disclose key information to support its
investments in achieving its climate goals.
Sidley purchases and uses VCOs to assist in achieving its commitment to climate goals, including making ameaningful reduction to our greenhouse gas emissions.

VintageYear

Jan. 18–
Dec. 2023

2020

RetiredYear

EntitySelling
Offset2023

Wildlife Works
Carbon LLC

2022

Asociaciónpara laInvestigación yDesarrollo
IntegraOffsetRegistry/
Program

Verra

Verra

ID

Name

Country

Project Type

Additional
Certification

934

The Mai
Ndombe REDD+
Project

The
Democratic
Republic of
Congo

REDD+ Project;
Agriculture
Forestry and Other
Land Use

CCB-Biodiversity
Gold; CCB-Climate
Gold

Peru

REDD+ Project;
Climate, Social
Development, andBiodiversity
Conservation

AIDER; CCB

1067

Tambopata
Project

CLIMATE GOALS
Sidley has made several commitments to climate goals to improve and create a sustainable future. In alignment
with science-based targets, our ambition is to reach net-zero greenhouse gas (GHG) emissions across ouroperations and services by 2050, with a short-term goal to reduce Scope 1, 2, and 3 GHG emissions by 55% ormore by 2030. In 2022, we achieved carbon neutrality in our direct operations by using 100% renewableelectricity to power our data centers and, increasingly, our offices; leveraging renewable energy credits for energy
usage in our other leased spaces; and by purchasing high-quality, REDD+ carbon credits equivalent to our Scope
1 emissions. As a result of these commitments, California requires us to disclose certain information that
substantiate these claims.
(I)

CARBON NEUTRALITY

In 2019, Sidley committed to achieving carbon neutrality in our direct business operations. In 2022, we
successfully achieved our target–meeting the first of our climate commitments based in part on reliance on VCOs.
SIDLEY AUSTIN LLP

1

These ambitions were achieved through the changes to business sources and energy practices as described infurther detail in this report.
To achieve carbon neutrality, Sidley purchased and incorporated high-quality, jurisdictional REDD+ carbon offsets
equivalent to our Scope 1 emissions for the 2022 reporting cycle. Sidley invested in renewable energy credits andhas supported the development of many renewable energy projects. Our renewable energy credits include wind,biomass, and hydro-electric projects and are located in China, Germany, Malaysia, the United Kingdom, and theUnited States. These steps make Sidley’s direct operations carbon neutral. Sidley does not know if the vendors of
the REDD+ carbon offsets use third-party verification/validation of project attributes.
(II)

REDUCTION TO ITS GREENHOUSE GAS EMISSIONS

Sidley has undertaken several measures to achieve our goal of reducing GHG emissions by 55% against a 2019baseline year. Between 2019 and 2022, Sidley has made significant progress toward this goal by reducing over
12,747 tCO2e as described in further detail in this report. Our progress, resulting in a 25.4% reduction in our
carbon footprint, has been achieved by transitioning to 100% renewable electricity for our buildings, improving
office energy efficiencies, and reducing air travel and commuting. Sidley’s strategy on a reduction of GHG
emissions is broken down as follows: (i) a plan to reduce Scope 1 and 2 emissions (e.g., reducing energy
demand, implementing energy efficiency measures or investments), and (ii) a plan to reduce Scope 3 emissions(e.g., engaging supply chain partners to increase energy efficiency and reduce business travel).
100% Renewable Electricity
Sidley has committed to transitioning to 100% renewable energy across our real estate portfolio, including ouroffices and data center. Currently, Sidley’s global data center and London office are 100% powered by renewableenergy. Our global data center has purchased, redeemed, and/or is using 100% renewable electricity through oneof the following methods:•

Direct-supplier utility grid data (invoice or public-based)•

Guarantee of Origin•

Renewable energy credits

Our London office energy provider generates approximately 12% of the overall energy usage through its wind andsolar installations; the remainder is certified green energy it buys from other green generators or via thewholesale market.
Energy Efficiency
Of the twenty-one Sidley office locations, 81% have undertaken initiatives to reduce energy consumption andimplement green building practices. Thirteen of the Sidley locations are in LEED and BREEAM Certified Green
Buildings (with one additional office pending approval). In 2021, we undertook a firmwide sustainability
assessment, through which we established existing practices.
One of Sidley’s major sustainability practice has been to integrate energy-saving practices, such as utilizing
ENERGY STAR and EPEAT-certified computers and kitchen appliances, upgraded LED lighting, occupancy
sensors, and zoned lighting areas throughout the building, automated building systems that regulate heating andcooling ventilation based on occupancy, as well as EV charging stations at selected locations.
Air Travel
While in-person meetings remain necessary at times, we are committed to promoting virtual options whensuitable, reducing greenhouse gas emissions linked to travel. We engage with our clients regarding theirsustainability initiatives and consider their policies and guidance on business travel. Additionally, we encourage
SIDLEY AUSTIN LLP

2

our lawyers and professional staff to evaluate each travel opportunity, taking into account video and virtual
alternatives before booking their flights or low-carbon transportation options. In response to the COVID-19
pandemic, we moved quickly to a remote environment. As a result of these external forces, we saw our air travel
reduce by 84% in 2020, and a further 26% in 2021. As lockdowns have eased and travel resumes, we continue tomonitor the firm’s emissions in this area to develop appropriate reduction targets.
Hybrid Work
The COVID-19 global pandemic in 2020 resulted in a shift away from 100% in-office work to allow more flexibility
for employees to work from home. Sidley’s calculations indicate that commuting-related emissions havedecreased 24% from 2019 to 2022, even when accounting for the incremental emissions associated with
employees’ energy use when working from home.
General
We have calculated our carbon footprint annually beginning with our 2019 data and report the results to CDP, oneof the most commonly used platforms for measuring and understanding corporate environmental impacts. Ourcarbon footprint scope and boundaries are based on the GHG Protocol’s definition of “operational control,” andSidley conducts an annual emissions identification process to ensure that all relevant emissions are captured andthat any exclusions are documented appropriately. All calculations were adjusted for AR5 Global Warming
Potentials, where relevant.
Scope 1 and 2 Emissions Data
Because Sidley leases its space, we relied on property managers and landlords to provide data on utility andrefrigerant use. Where only data for the entire building was available, Sidley estimated its allocated use based on
percentage of square foot occupancy. Where energy data was completely unavailable for a specific site, Sidley
extrapolated for that site based on square footage intensity factors for Sidley’s “average” office or data center. We
used location-based Scope 2 figures, with the following market-based exceptions: One of Sidley’s data centers
has certified renewable energy supported by a letter of attestation. In addition, our London office (through ourproperty manager) is sourcing 100% renewable electricity. Emissions for natural gas, refrigerants, steam, andU.S. electricity were calculated using the EPA GHG Hub emissions factors, and emissions for electricity
consumption at non-U.S. locations were calculated using IEA emissions factors.
Scope 3 Emissions Data
In 2022, we widened our data collection for Scope 3 emissions, which make up the majority of our carbon
footprint. We also recalculated our 2019 carbon footprint baseline to provide a more accurate comparison ofprogress over the last four years.
Category 1: Purchased Goods and Services•

All spend recorded in the organization’s internal system for the purchase of goods and services is
included in the calculation boundary for this source. The ‘spend-based’ method as described in the
GHG Protocol’s Scope 3 Guidance is used to calculate these GHG emissions, with industry-average
emission factors applied based on the economic value of the goods and services. Spend data is
broken down according to Sidley’s internal taxonomy codes and allocated to the most appropriate
industry group category available within the U.S. EPA’s Environmentally-Extended Input-Output
Models (USEEIO).

•

Instead of spend-based data, Sidley used volume to calculate the emissions associated with thepurchase of office paper, using the Environmental Paper Network Paper Calculator Version 4.0. For
more information visit www.papercalculator.org.

SIDLEY AUSTIN LLP

3

Category 2: Capital Goods
All spend recorded in the organization’s internal system for the purchase and acquisition of depreciable
capital assets that were placed in service during the reporting year is included in the calculation boundary forthis source. The ‘spend-based’ method as described in the GHG Protocol’s Scope 3 Guidance is used to
calculate these GHG emissions, with industry-average emission factors applied based on the economic valueof the goods and services. Spend data is broken down according to Sidley’s internal taxonomy codes andallocated to the most appropriate industry group category available within the U.S. EPA’s USEEIO.
Category 4 & 9: Upstream/Downstream Transportation
Because it is extremely difficult to distinguish between upstream (category 4) and downstream (category 9)transportation, all transportation impacts (postage, messenger, and courier services) are reported together
here. The ‘spend-based’ method as described in the Scope 3 Guidance is used to calculate these GHG
emissions, with industry-average emission factors applied based on the economic value of the goods andservices. Spend data is broken down according to Sidley’s internal taxonomy codes and allocated to the mostappropriate industry group category available within the U.S. EPA’s USEEIO. The corresponding emission
factors are then applied to calculate an overall GHG emissions estimate for this category.
Category 5: Waste Generated in Operations
The scope of this calculation includes disposal and treatment of waste generated in the reporting company’s
operations in the reporting year (in facilities not owned or controlled by the reporting company): MSW(landfill), mixed recycling, organics/composting, e-waste, and shredded paper. This data was calculated for
Sidley offices only – co-located data centers were excluded. Data collection was dependent on
landlord/property manager cooperation, and some locations required estimations and unit conversions. Some
Sidley locations were unable to obtain data, and these offices were excluded from waste calculations becauseof the overall minimal contribution of waste to Sidley’s overall carbon footprint. Emissions were calculatedusing the EPA GHG Emissions Hub data sets.
Category 6: Business Travel
The scope of this category includes transportation of employees for business-related activities during thereporting year (in vehicles not owned or operated by the reporting company) and overnight hotel and lodging
stays. Sidley’s calculations included a mix of emissions calculations provided by a third-party travel agency(air miles, using DEFRA emissions factors), and internally calculated emissions determined by activity data:
rail miles and car rental days (using the EPA GHG Hub emissions factors) and spend on
lodging/accommodations (using the U.S. EPA’s Environmentally-Extended Input-Output Models (USEEIO).
Category 7: Employee CommutingThis category included transportation of employees between their homes and their worksites during thereporting year (in vehicles not owned or operated by the reporting company) as well as employee remote
working. Sidley made these calculations using distance-based activity metrics (home zip code to office zipcode), adjusted for estimates of in-office vs. remote workdays, and split between car-commuting andcommuting by public transportation. Commuting emissions were calculated using the EPA GHG Hubemissions factors, and incremental energy emissions from remote work were calculated using a guide
published by the Anthesis Group, Estimating Energy Consumption & GHG Emissions for Remote Workers(2021) (no survey option).
General Targets
Although we have reached a 25.4% total reduction of tCO2e since 2019, there is still progress that must be madetowards our goal of a 55% reduction by 2030. Sidley also has committed to transitioning to 100% renewable
SIDLEY AUSTIN LLP

4

energy across our real estate portfolio. To reduce our carbon footprint and reach our net-zero GHG emissions by
2050, Sidley will use 100% renewable electricity to power all of our offices and data centers.
Scientific Targets
Sidley has partnered with a sustainability consultancy to set out climate targets aligned with the methodology of
the Science Based Target Initiatives (SBTi). These include near-term targets (55% reduction of GHGs acrossScopes 1, 2, and 3 by 2030 against a 2019 baseline) and long-term targets (net-zero GHG emissions by 2050).
GeneralThirteen of our Sidley locations are in LEED (ranging from Silver to Platinum) and BREEAM Certified Green
Buildings. Sidley’s Miami location and its building is currently pending LEED certification. Additionally, the Sidley
London office took part in the CUBE competition, a UK-wide initiative. By encouraging cooperation between all
stakeholders involved in building management and occupation, CUBE seeks to drive sustainable practices andreduce carbon emissions.
Sidley has calculated its carbon footprint annually starting with our 2019 data and reports results to CDP, one of
the most commonly used platforms for measuring and understanding corporate environmental impacts.
Additionally, Sidley has partnered with a sustainability consultancy, Strategic Sustainability Consulting, to lookcomprehensively at our GHG Protocol and Science Based Target Initiative net-zero standard. We are engaging a
vendor to perform verification of our 2023 data, so a statement about that will be included in our next report.

(III)

NET-ZERO GREENHOUSE GAS EMISSIONS

GeneralTo reduce our carbon footprint and reach our net-zero GHG emissions by 2050, Sidley will use 100% renewableelectricity to power all of our offices and data centers. Sidley has committed to transitioning to 100% renewableenergy across our real estate portfolio. In alignment with our commitment to science-based targets, Sidley
recognizes that the vast majority of emissions reductions must come from changes to business practices. As
such, Sidley agrees to use carbon credits sparingly and only for hard-to-abate emissions.

SIDLEY AUSTIN LLP

5