Identifying our ESG priorities by aligning with best practices

ADP has a multi-faceted approach to identifying the environmental, social and governance (ESG) priorities that have the most potential to impact the financial value of our business. First, we draw from our talented pool of associates who have an astounding breadth of knowledge as it pertains to human capital management and identifying the correlation between successful companies and engaged employees. Our associates also have deep expertise in the areas of risk management and sustainable operations, which gives us a well-rounded body of knowledge to draw from. In addition to our associates, we also benefit from interactions with other stakeholders such as our clients, investors, suppliers, communities, policymakers and both governmental and non-governmental organizations that have engaged with us over time on these topics.

Report development prioritization

As part of the development of our sustainability report, we performed a benchmarking analysis in order to determine and prioritize our disclosures with regard to the environmental, social and governance activities and initiatives within our organization. This analysis was performed along multiple dimensions.

We prioritized alignment with our business strategy and assessed materiality based on our business priorities, including:

  • Driving growth
  • Meeting client and market needs
  • Attracting, retaining and developing talent
  • Operational efficiency
  • Innovation that drives differentiation
  • Risk management

We also conducted external benchmarking of peers with whom we both cooperate and compete for employees and business. We evaluated our initiatives and disclosures relative to business-relevant indicators identified by leading sustainability standards and reporting organizations, including GRI, SASB and third-party ESG research providers.

Data collection and analysis

To assess the relevance of our objectives, data elements from various publicly available data sources were evaluated for relevance and inclusion. We applied both a qualitative and quantitative lens to the data in order to classify the data points as having either high, medium or low relevance for our business and for our sustainability disclosures at this time. The results of this benchmarking exercise were shared with the relevant internal subject matter experts, who reviewed the results and helped make the final determination as to what content priorities are currently most relevant for the success of our business. The report contains disclosures on those indicators deemed to be priorities for our business and stakeholders. Our reporting will continue to evolve in line with best practices and input from our stakeholders. In some areas, we rely on U.S. statistics where global numbers are not available.