Commitment to ESG

At ADP, we take meaningful and focused action in environmental, social and governance (“ESG”) areas to create a sustainable, ethical, and resilient company. We believe sustainability is about creating and delivering value for all of our stakeholders: our people, our clients, our partners, our investors and our community at large. In fact, we are committed as a global citizen to act responsibly for the greater good, to enable truly inclusive cultures and to do our part to protect shared resources so that we can have a lasting positive impact on our global community.

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 seek the input of 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 organizations that have engaged with us over time on these topics.

We prioritize alignment with our business strategy and assess materiality based on our business priorities, including:

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

We also evaluate our initiatives and disclosures relative to business-relevant indicators identified by leading sustainability standards and reporting organizations, including GRI, SASB, TCFD and third-party ESG research providers. Additionally, we monitor emerging global ESG regulations such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) to stay up-to-date on reporting requirements from regulating agencies.

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.