Insights from Shopify’s remote-era climate journey

Shopify merchant updating their store's website on a tablet

“To make our 100-year vision come true, we need to not only make commerce better, but take better care of our planet.”

Tobi Lütke, Shopify Founder & CEO

It took just fifteen years for Shopify to grow from a few people in a coffee shop to a team of more than 7,000+ people powering over 1.7 million businesses worldwide. But for a company with a hundred-year vision, it’s still early days—and the threat of climate change is looming.

Shopify started work on climate early, and did many of the right first things: mapping out their carbon footprint, converting their offices and cloud usage to renewable power, and buying offsets for corporate travel. They even launched a revenue-based sustainability fund with a starting $5m annual minimum.

But they faced a challenge common to many: their first emissions footprints were limited to generic data, and mostly shared default assumptions about a world in which most employees worked in corporate offices.

Then COVID arrived, and two big insights with it.

#1: The surprising complexity of WFH

Within a couple months of the pandemic’s start, in May 2020, Shopify decided to become a remote-first company:

Tweet from @tobi: As of today, Shopify is a digital by default company. We will keep our offices closed until 2021 so that we can rework them for this new reality. And after that, most will permanently work remotely. Office centricity is over.
@tobi's tweet

This rendered their traditional carbon inventory—which focused on emissions from physical offices and commutes—nearly obsolete.

In their old way of measuring carbon emissions, the shift to remote-first was an obvious climate win. But Shopify realized these weren’t real-world numbers, and that some emissions were just shifting from buckets they counted to buckets they didn’t. While shuttering large offices was intuitively good for emissions, what about adding over 7,000 employee home offices? Would there still be net reductions after counting everything that old footprints didn’t factor in?

To make sure they were asking and answering the right climate questions, Shopify signed up for Watershed. Within a few weeks, they were using Watershed to analyze their full carbon footprint and run the numbers on different scenarios—all based on specific data about where most employees were moving and how clean the local grids were:

Screenshot of Watershed's hybrid workplaces calculator
Hybrid workplace carbon calculator

With this data in hand, Shopify was able to identify the right balance points to continue as a climate leader as they shifted to their remote-first work model: digital-by-design.

(For more on this partnership and what sustainability leads should be mindful of in designing climate programs for the remote-first era, The Guardian did their own extended profile.)

#2: The surprising size of the full picture

“As a company truly invested in reversing climate change, we have to consider every impact [along our value chain].”

Stacy Kauk, Director of Shopify’s Sustainability Fund

As was (and still is) true for most tech companies, there was something else that Shopify’s old measurement tools were leaving out—something far weightier on the carbon scale than how their employees commuted or used air-conditioning: the company’s Scope 3 emissions.

The Greenhouse Gas Protocol—the gold standard for carbon accounting—groups emissions into 3 categories, or scopes. Scope 3 accounts for indirect emissions across the value chain, which often make up to 80% of a product or service’s total carbon profile.

Diagram of the three scopes of Shopify's emissions, and beyond

In Shopify’s words, this was “the gnarliest data beast to untangle.” What emissions were coming from Shopify’s purchases from thousands of suppliers? And what was the carbon impact of Shopify merchants shipping goods to consumers? Their traditional carbon inventory, which stopped at the four walls of the corporate office, missed this part of the picture.

Shopify also wanted to approach everyday reductions decisions with more clarity, so they tasked Watershed with an additional project: converting millions of lines of unstructured data covering capital investments, payments, IT infrastructure, and logistics into an x-ray of the full Scope 3 footprint—to as precise a level as the specific makes and models of their servers.

Screenshot of the Watershed Dashboard on a green iMac

With their Watershed dashboard, Shopify can now generate instant automatic reports, run elaborate reduction scenarios, and get immediate answers based on real data. And they’re able to work with suppliers and teams to factor carbon into dozens of everyday decisions on everything from business travel strategies to the carbon impact of logistics.

“We went from generic industry averages to a live model—built on our actual data—in just a few weeks. And this modelling opened up a thousand new routes to drive down emissions across our value chain.”

Stacy Kauk, Director of Shopify’s Sustainability Fund

While COVID won’t be the last global curveball to take Shopify by surprise, with Watershed they’re able to massively reduce the time required to judge which response is most consistent with their vision of a prosperous and low-carbon future for all.

Stay up to date

Get the latest from Watershed, from policy updates to in-depth climate guides.


an image of the CSRD experts who spoke at Watershed's webinar

Tactical advice on the CSRD

Photo of UK flag on the left and TPT logo on the right

TPT: Everything you need to know about the UK Transition Plan Taskforce

Illustration of coins in a field

SEC ESG fund rules: Everything you need to know

Customer stories

coyuchi product

How Coyuchi gets product-level carbon insights from Watershed

houses next to solar panels

How Aon automated its carbon footprint measurement

kroll and watershed and cdp logos

Kroll on using Watershed to save time reporting to CDP

Climate news

Natural imagery with the CSRD logo

EU Commission adopts the finalized ESRS under the CSRD

blog header image showing five new solar plants in Michigan partially funded by Block, Braze, DoorDash, Match Group, and Unity

Fixed-price Virtual Power Purchase Agreement funds five new Michigan solar plants

Watershed HQ

Sylvie Goulard, a new member of Watershed's Policy Advisory Board

Welcoming Sylvie Goulard to our Policy Advisory Board

Climate curve with text "Series C"

$100M for climate

2023 with a world for the 0

Watershed's 2023 year in review


Illustration of coins in a field

SEC ESG fund rules: Everything you need to know

the California capitol where SB253 and SB261 were passed

California SB 253 and SB 261: a guide for companies

Welcoming Mary Schapiro to the Watershed Policy Advisory Board

Welcoming Mary Schapiro to our Policy Advisory Board


watershed and latham and watkins law firm logos next to an image of the SEC

How to prepare for mandatory climate disclosure - advice from Betty M. Huber of Latham & Watkins

ropes and grey logo with the California flag, watershed logo and text: Guide

Michael Littenberg of Ropes & Gray on California’s SB 253 and 261

EU Flag plus Covington logo

What is the EU's Green Claims Directive? Full Guide with Covington experts