Sustainability

Sustainability

At Stem, sustainability isn't separate from what we do, it's built into solutions we've spent nearly two decades developing and operating for clean energy.

Every asset we monitor and every decision our platform powers is designed to turn complex, intermittent energy data into measurable climate impact. That's energy intelligence: not artificial, but earned through real operational experience across tens of thousands of sites worldwide.

In 2024, we took a defining step in that mission, shifting from a hardware-centric business to a software-first company. That transition dramatically reduced our own direct environmental footprint while amplifying the positive climate impact we deliver for the customers, partners, and grids we serve — proof that at Stem, sustainability and performance aren't separate goals, they're the same one.

Our 2025 Sustainability Report

We are proud to share our 2025 Sustainability Report, showcasing how energy intelligence translates into real climate impact. As we present our third annual report, we demonstrate our first GRI-aligned disclosures and deepened alignment with established frameworks including TCFD, SASB, GHG Protocol, and UN SDGs. Read the full 2025 Sustainability Report for the data behind the story.

Read Our Sustainability Report

Our Environmental Impact

Stem's environmental impact operates on two levels: how we run our own operations, and what our platform enables for the world, and it's the second where our impact is greatest.

Every gigawatt the PowerTrack platform helps optimize is a gigawatt performing more efficiently and reliably, displacing fossil generation and strengthening the grids our customers depend on. In 2025, we took an important step toward putting a number to that impact, publishing our first verified, GRI-aligned avoided emissions disclosure.

We hold our own operations to that same standard of accountability. As Stem has continued its shift to a software-first business, our operational footprint has moved with it, falling steadily even as the scale of what we manage keeps growing. We report both sides of that story, the emissions we help customers avoid and the footprint of running our own business, with the same transparency and rigor.

24.4M kg Of CO2 was avoided because of PowerTrack in 2025 from our California battery storage portfolio alone
-64% Scope 3 emissions fell 64% against our 2023 baseline

From 51,776 to 18,488 MT CO2e

-80% Market-based Scope 2 emissions dropped 80% year-over-year

195 to 39 MT CO2e

Our Social Impact

Stem's people are the intelligence behind our intelligence. They’re the engineers, energy experts, and field teams whose operational experience is what makes our platform what it is today. Across six countries, our team brings together deep expertise in software, energy management, and customer success, united by a shared mission to help clean energy assets perform at their full potential.

In 2025, we continued investing in the people who make that possible, from expanded learning and AI literacy programs to well-being initiatives and a culture of recognition that reinforces the values we operate by. A workforce that trusts Stem, and trusts each other, is what lets us be the reliable partner our customers count on.

427 Employees across six countries: the U.S., India, Germany, Canada, Japan, and Spain
73% Employee engagement
39 Mentor-mentee pairs matched in our 2025 Mentor Program

Our Governance Impact

Trust isn't something Stem asks for; it's something we build through consistent, transparent governance. Our Board of Directors, who are independent, engaged, and supported by a dedicated Nominating, Governance and Sustainability Committee, provides direct oversight of our sustainability strategy, climate-related risk, and long-term value creation.

That same discipline extends through the business: a Code of Conduct every employee is trained on, a confidential whistleblower channel that lets people raise concerns without fear, and rigorous data privacy and security practices that protect the customers and partners who depend on us. Good governance isn't a checkbox for Stem; it's the foundation that lets a reliable platform be a trustworthy one.

88% Of our Board is independent (8 of 9 directors), with a dedicated NGS Committee overseeing sustainability and climate strategy
0 Customer data breaches recorded in 2025
0 Monetary losses from ethics- or human rights-related legal proceedings in 2025
100% New hires complete mandatory ethics and compliance training within their first 30 days; all employees complete annual Code of Conduct training

Committed to Driving Global Decarbonization

Stem is a crucial participant in global decarbonization efforts, delivering AI-powered solutions and services that maximize the value of renewable energy assets worldwide. Our integrated PowerTrack™ platform and comprehensive managed services enable customers to unlock the full potential of their clean energy portfolios.

Through advanced control capabilities, including frequency management and voltage support, we enable higher renewable energy utilization rates, reduce curtailment, and provide clean energy during peak demand periods when grid emissions are typically highest.

Our platform delivers critical grid services that support stability, especially as renewable penetration increases, while reducing operating expenses and improving energy production, proving that environmental responsibility and economic performance go hand-in-hand.

We’re not just managing energy assets. We’re unlocking energy intelligence that accelerates the global transition to sustainable power.

Supporting the Circular Economy

We engage our original equipment manufacturing partners to identify opportunities to reduce the inputs needed to produce high quality, reliable products while integrating recycled materials where possible. We are also developing strategies with our supplier partners to repurpose and recycle certain components to contribute to a more sustainable supply chain.

Our industry-leading asset management software enhances the operational lifetime value of our customers’ solar, storage, and hybrid projects by using our nearly two decades of operational experience to predict hardware issues, dispatch maintenance, and repair systems to extend their useful life.

We use best practices to architect and select systems for use after their end-of-life. We train our employees, educate our customers, and engage our partners with respect to decommissioning, end-of-life considerations, and second life options that include reusing and recycling hardware.

We promote recycling and preventing waste from our business operations through active compliance with applicable federal, state, and local regulations. We work with Battery Recyclers of America to certify that applicable material – including Lithium-Ion and Polymer batteries – are appropriately recycled in compliance with local, state, and federal regulations.