Energy and Greenhouse Gas (GHG) Management
In 2021, ADP made a commitment to achieve net zero greenhouse gas emissions across Scopes 1, 2 and 3 by 2050. In 2022, we further committed to reduce our absolute global Scope 1 and 2 GHG emissions 25.2% by 2025 and 50% by 2030, each from a 2019 base year, which we believe is consistent with the Paris Agreement goal to limit global warming to 1.5°C. We are pleased to announce that as of calendar 2022, we have reduced our Scope 1 and 2 GHG emissions by 21% against our calendar 2019 baseline.
The reduction from our baseline year of 2019 is due in large part to:
- Our ongoing real estate optimization strategy, including rightsizing our footprint and moving into more energy efficient/greener facilities.
- Technology upgrades, consolidation and optimization within our data centers.
ADP submits its global Scope 1, 2 and 3 GHG emissions data to the CDP annually. Our global Scope 1, 2 and 3 GHG emissions are independently verified on a limited assurance basis and our most recent verification can be found here. Our future global Scope 1, 2 and 3 GHG reporting can be found via CDP under Automatic Data Processing, Inc. In addition, we may post interim updates on our progress on investors.adp.com. Our 2023 score (B) is reflective of companies that have demonstrated an understanding of the climate risks and impacts of their business, implemented strategies to mitigate those risks and impacts and demonstrate good environmental management. We used the methodologies of the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard to collect and report on our Scope 1, 2 and 3 emissions. We continue to improve our GHG inventory data collection and management processes with respect to global Scope 3 GHG emissions. In our most recent submission to CDP in 2023, we expanded upon our Scope 3 emissions to include preliminary data related to the category of Purchased Goods and Services, leveraging spend based calculations and related emissions factors. We are assessing our suppliers in order of emission intensity to integrate their reported emissions into our calculations going forward. Further, our work continues to fully analyze our value chain impacts (and ultimately set a Scope 3 reduction target). We also report our GHG emissions to Ecovadis.
Global Scope 1 and 2 emissions (MTCO2E)
- 2019*
- 2022
Energy Consumption (MWH)
*2019 totals slightly adjusted from previous reported amounts of 18,499 (Scope 1), 89,395 (Scope 2 location based) and 93,949 (Scope 2 market based) following internal revalidation. The 21% reduction against our 2019 baseline (shown in the chart above) reflects Scope 1 and Scope 2 Market-based emissions.
We are dedicated to conserving resources and minimizing our impact on the environment. As an enterprise, we continue to progress on our climate road map of initiatives that are driving reduction in our GHG emissions. While we view our plan as iterative and evolving, we remain focused on investing in renewable energy, efficient infrastructure and sustainable alternatives. Given the nature of our business, our GHG emissions are modest and are driven by our usage of our facilities and data centers, which are our nearer-term focus areas.
Subject-matter experts in our Global Real Estate, Facilities and Technology Organizations continue to drive the analysis and identification of energy consumption trends in our worldwide footprint and identify and implement various initiatives to reduce our emissions.
Our real estate strategy has yielded building efficiencies and reduced our natural gas and electricity consumption. Identifying buildings that are not efficiently used and finding locations where the space is better suited for our business has afforded the opportunity to restructure locations to optimize the square footage utilization. We are also upgrading to more modern buildings which have been certified by third parties as being more energy efficient green facilities.
We continue our focus on reducing GHG emissions in our data centers by upgrading equipment to state-of-the-art energy-efficient models, optimizing cooling efficiency via more effective airflow management, and investments into newer cooling infrastructure. Our U.S.-based owned data centers are Energy Star Rated (82).
Some recent initiatives include:
- We increased the power efficiency in our owned data centers by 8% through temperature regulation efforts
- ADP reduced the number of printers and replaced with more energy efficient models, for both office and print operations
- We optimized our desk phone footprint to a cloud-based system on a global basis
Building Certifications
As part of our efforts to reduce the impact of our offices and operations, we pursue green building certifications wherever it is feasible to do so. In addition to the ADP owned offices below, we have 9 leased locations where the LEED certifications are held by the landlord. In addition to the LEED certifications listed below our leased spaces in Bristol and Staines, United Kingdom; Capelle, Netherlands; Prague, Czech Republic; and Bucharest, Romania are located in BREEAM certified buildings.
LEED Platinum:
- Milan, Italy
LEED Gold:
- Pasadena, CA
- Augusta, GA
- iLab, New York, NY
- Hyderabad, India
LEED Silver:
- Tempe, AZ
- Norfolk, VA
- El Paso, TX
- Chennai, India
The Milan LEED Platinum project achieved a significant reduction in water usage, exceeding 45%, along with a 24% improvement in energy efficiency compared to the LEED v4 baseline.
Renewable Energy
In order to accelerate decarbonization across our portfolio of locations, we are leveraging renewable energy where viable. In March 2024, we completed our second on-site solar project in New Jersey at our corporate headquarters in Roseland. The sprawling, roughly 3 MW onsite solar system will provide 100% clean energy, for which we will receive renewable energy credits that can be used to offset our grid electricity consumption.
EV Charging Program
ADP offers it associates an Electric Vehicle Charging Program, demonstrating progressive corporate leadership as well as a commitment to the continuous improvement of work-life quality, implementation of advancing technologies, and support in the reduction of the global carbon footprint. We currently have 106 charging ports across 12 locations, supporting over 750 registered users across the U.S., with offerings also in Spain, Australia, the UK, Italy and France.
Further, as part of our commitment to reduce carbon emissions, we continue to update our international vehicle fleet with fuel-efficient vehicles.
