Environment

At ADP, environmental sustainability is integral to both our corporate social responsibility program and our business strategy. We understand which environmental issues are relevant to our business and offer opportunities for us to make a meaningful impact. We also believe that creating sustainable products and streamlining our operations drives efficiency, innovation and, ultimately, long-term value-creation.

Energy and greenhouse gas reductions

We are committed to improving energy efficiency in our facilities and reducing our greenhouse gas emissions associated with energy usage, vehicle fleets and air travel. ADP’s main sources of greenhouse gas emissions are our office and data center facilities, and our current goal is to reduce emissions by 10 percent by the year 2020 in the United States through investments in efficiency and conservation.

Climate change and ADP

Climate change could have several potential impacts on our business. These include weather-related events interrupting business operations, supply chain disruptions, disruptions to our clients’ businesses and possibly regulatory changes. Our ability to anticipate these impacts and take mitigation steps has clear implications for our business.

In aggregate, our conservation efforts are estimated to have reduced our 2018 electricity consumption by about 3 million kilowatt hours, and will continue to reduce our annual consumption by 5 million kilowatt hours.

Energy conservation

Throughout 2018, ADP invested in energy reduction initiatives that improved efficiency, reduced energy demand and decreased our Company’s contribution to climate change. Some examples include the installation of LED lighting; implementing new Building Management Systems (BMS) to automate control of ventilation, lighting and heating/cooling systems efficiency; and repairing heating water valves. In aggregate, our conservation efforts are estimated to have reduced our 2018 electricity consumption by about 3 million kilowatt hours, and will continue to reduce our annual consumption by 5 million kilowatt hours. ADP annually reports to the Carbon Disclosure Project (CDP) regarding its emissions-reduction initiatives. For more information on these efficiency projects and our 2018 emissions, visit CDP’s website here.

Emissions reduction

In 2018, ADP improved its data collection and management, and for the first time we are able to release both our 2018 and 2017 greenhouse gas scope 1, 2 and 3 emissions. ADP’s direct emissions slightly increased from 2017 and 2018 while indirect emissions (scope 2 and 3) decreased.

Global Location-Based Emissions

2017

2018

Global Market-Based Emissions

2017

2018

Fleet

As part of our commitment to reducing our greenhouse gas emissions, ADP is replacing its vehicle fleet with fuel-efficient vehicles. As a result of the improvement in ADP’s data quality, we are now able to provide an emissions figure for our vehicle fleet: In 2018, our fleet emitted 11,000 metric tons of carbon, which represents approximately 5 percent of our total greenhouse gas emissions. This figure is accounted for in our scope 1 emissions in the figures.

Miles Per Gallon vs Emission Vehicle

Electric vehicle charging stations

In addition to ensuring access to public transportation and bike racks, ADP is increasing the availability of electric vehicle charging stations at our facilities. Part of all new lease negotiations include discussions between our Real Estate team and landlords regarding the possibility of installing electric vehicle (EV) charging units. From 2017 to 2018, the number of charging stations and ports increased, from 22 to 37 and 44 to 73, respectively.

Electric Vehicle Stations and Ports

2017

2018

In 2019, ADP is investing in upgrading all EV charging units in our portfolio. The new units will provide information on GHG emissions avoided and other information about EV usage at ADP. To accommodate the 150+ registered ADP electric vehicle drivers in the U.S., ADP plans to install four additional EV charging units.

Renewable and alternative energy

To further reduce ADP’s emissions footprint, we’ve invested in fuel cell technology that generates energy without water or greenhouse gas emissions. In 2018, the fuel cell in La Palma, California slightly decreased electric output; however, it is still operating at 90 percent capacity. ADP will continue to look for opportunities to use alternative fuel technologies, like fuel cells and solar energy, in the future.

Building with LEED certification

ADP endorses and pursues certification according to the Leadership in Energy and Environmental Design (LEED) green building certification program in our construction projects whenever feasible. Projects built in accordance with LEED’s guidance are more efficient and environmentally sustainable, thereby reducing costs and minimizing environmental impacts.

Data centers

To reduce ADP’s overall greenhouse gas emissions, we continue to assess and improve the energy efficiency of our data centers. We look for ways to conserve energy by implementing passive design features, reconfiguring office design and investing in efficient hardware and cooling systems.

We will continue to rationalize our data center network as we offload some ADP-hosted workloads. ADP has decommissioned 20 data center facilities since 2015, contributing to a reduction in carbon footprint.