Xero
Xero Limited, commonly known as Xero, is a leading cloud-based accounting software provider headquartered in New Zealand. Founded in 2006, Xero has rapidly expanded its operations across major regions, including Australia, the United Kingdom, and North America, establishing itself as a key player in the financial technology industry. Xero offers a suite of innovative products designed to simplify accounting for small to medium-sized businesses. Its unique features, such as real-time collaboration and automated bank feeds, set it apart from traditional accounting solutions. With a strong market position, Xero has garnered numerous accolades, including recognition as one of the fastest-growing software companies globally. The platform's commitment to user-friendly design and robust functionality continues to drive its success in the competitive accounting software landscape.
DitchCarbon Score
How does Xero's carbon action stack up? DitchCarbon scores companies based on their carbon action and commitment to reducing emissions. Read about our methodology to learn more.
Industry Average
Mean score of companies in the Computer Services industry. Comparing a company's score to the industry average can give you a sense of how well the company is doing compared to its peers.
Industry Benchmark
Xero's score of 56 is higher than 76% of the industry. This can give you a sense of how well the company is doing compared to its peers.
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Xero's reported carbon emissions
In 2025, Xero reported total carbon emissions of approximately 55,996,000 kg CO2e, with Scope 1 emissions at about 18,000 kg CO2e, Scope 2 emissions at approximately 153,000 kg CO2e (market-based), and 68,1000 kg CO2e (location-based). The company’s Scope 3 emissions were significant, totalling around 35,416,000 kg CO2e, with major contributions from purchased goods and services (about 37,416,000 kg CO2e) and business travel (approximately 13,299,000 kg CO2e). For the previous year, 2024, Xero's total emissions were reported at about 35,180,000 kg CO2e, with Scope 1 emissions of approximately 782,000 kg CO2e and Scope 2 emissions of about 13,602,000 kg CO2e. The Scope 3 emissions for 2024 were also substantial, totalling around 35,180,000 kg CO2e. Xero has set ambitious climate commitments, aiming for a 42% reduction in Scope 1 and 2 emissions by FY30 from a FY20 baseline, and a 17% reduction in Scope 3 emissions over the same period. Furthermore, the company has committed to achieving net-zero emissions across all scopes by no later than FY50. In addition, Xero plans to reduce its Scope 1 and 2 emissions by 60% by 2034 from a FY24 baseline. These targets align with the Science Based Targets initiative (SBTi), where Xero has committed to reducing absolute Scope 1 and 2 emissions by 58.8% by FY34 and Scope 3 emissions from purchased goods and services and business travel by 35% within the same timeframe. Xero's headquarters is located in New Zealand, and the company is actively working towards its sustainability goals while addressing its carbon footprint through these comprehensive reduction strategies.
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| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Scope 1 | - | - | - | - | 000,000 | 00,000 |
| Scope 2 | - | - | - | - | 00,000,000 | 000,000 |
| Scope 3 | 11,721,000 | 0,000,000 | 0,000,000 | 00,000,000 | 00,000,000 | 00,000,000 |
Industry emissions intensity
Location emissions intensity
Reduction initiatives & disclosure networks
Companies disclose and commit to reducing emissions to show they are serious about reducing emissions impact over time. They can also help a company track its progress over time.
Xero is participating in some of the initiatives that we track. This may change over time as the company engages with new initiatives or updates its commitments. DitchCarbon will update this information as it becomes available.
