Creating a

Sustainable Future
Global Corporate Social Responsibility Report
Issued: March 2022
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Table of Contents
CEO Message 3 Commitment to ESG 4 Governance 5 Innovation 15 Associates 21
Our Board 6 ADP’s Innovation Strategy 16 Diversity, Equity and Inclusion 22
Ethics and Compliance 8 Enhancing our Clients’ Talent Acquisition
Data Privacy 11 HCM Landscape 17 and Retention 28

Global Security 13 Unlocking Insights Through Data 18 Training and Development 30

Data-Driven Innovation 19

Community 34 Environment 37 Indices 44

Philanthropy 35 Energy and GHG Management 38 GRI Index 44
Supplier Diversity 35 Waste Management 40 SASB Disclosure 47
Diverse Markets 36 Green Initiatives 42 SDG Index 50
Data Centers 43

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Letter from Chief Executive Officer

As a leading human capital management solutions provider who supports over 920,000 clients in more than 140 countries, ADP’s influence is far-reaching, as is our
responsibility to uphold the highest standards of care, quality and consideration of the global community. We have a duty as global citizens to act responsibly for
the greater good, to enable truly inclusive cultures and to do our part to protect shared resources. We believe those commitments require clear objectives,
consistent effort and measurable goals.

Anticipating Change intentionally choose to cultivate a culture that embraces all stewardship to diversity, philanthropy and promoting employee
Current times remind us that the world of work is in constant forms of gender, race, ethnicity, age, sexual identity and orienta- success around the world.
motion and the resulting shifts affect all aspects of our lives. tion, veteran status and ability. We embrace this philosophy at
We pledge to achieve net zero greenhouse gas emissions by 2050
We are dedicated to staying ahead of change to help businesses all levels of our Company, from entry level to management and
and we are developing a Paris Agreement-compliant climate tran-
and their people fulfill their potential. Through our cutting-edge executive positions.
sition plan that will include short, medium and long-term global
technology and world-class expertise—we guide organizations
goals towards this target. As with our DEI goals, a portion of our
of every size across every industry to help them thrive through Advancing Technology executive compensation is linked to our efforts to reduce ADP’s
changing conditions. ADP technology enables employers to measure progress. environmental footprint.
Workforce tools, like ADP DataCloud, deliver actionable insights
At ADP, we constantly strive to embed socially responsible
Connecting People and provide employers with greater visibility into their work-
force. The Diversity, Equity and Inclusion (DEI) Dashboard, for principles and practices into everything we do. Above all, we
Recent global events have underscored the depth of our connec-
example, allows employers to compare metrics, identify gaps remain optimistic about the future and committed to making
tion to each other. Emerging realities of the global economy have
and make recommendations on where to make investments to positive contributions that will benefit the world today and
magnified existing issues and in some cases, created new oppor-
strengthen their teams. for generations to come.
tunities. As an employer supporting other employers—we are
committed to attracting and retaining the world’s greatest talent Sincerely,
and being the kind of workplace where work aligns with purpose. Delivering Globally
ADP also embraces our role in giving back to and generating a
The global landscape also reinforces the importance of equity
lasting, positive impact on the communities in which we work
to all workers and to the businesses who benefit from their
and live. Corporate Social Responsibility (CSR) encompasses Carlos Rodriguez
contributions. We firmly believe diverse workforces drive inno-
everything from corporate governance, ethics and environmental Chief Executive Officer
vation and lead to better corporate performance. We value and

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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 We also conducted external benchmarking of peers with whom internal subject matter experts, who reviewed the results and
we both cooperate and compete for employees and business. We helped make the final determination as to what content priorities
As part of the development of our sustainability report, we evaluated our initiatives and disclosures relative to business- are currently most relevant for the success of our business. The
performed a benchmarking analysis in order to determine and relevant indicators identified by leading sustainability standards report contains disclosures on those indicators deemed to be
prioritize our disclosures with regard to the environmental, social and reporting organizations, including GRI, SASB and third-party priorities for our business and stakeholders. Our reporting will
and governance activities and initiatives within our organization. ESG research providers. continue to evolve in line with best practices and input from
This analysis was performed along multiple dimensions. our stakeholders. In some areas, we rely on U.S. statistics where
global numbers are not available.
We prioritized alignment with our business strategy and assessed
Data collection and analysis
materiality based on our business priorities, including:
To assess the relevance of our objectives, data elements from
• Driving growth
various publicly available data sources were evaluated for
• Meeting client and market needs
relevance and inclusion. We applied both a qualitative and
• Attracting, retaining and developing talent
quantitative lens to the data in order to classify the data points
• Operational efficiency
as having either high, medium or low relevance for our business
• Innovation that drives differentiation
and for our sustainability disclosures at this time. The results
• Risk management
of this benchmarking exercise were shared with the relevant

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Governance
ADP delivers on its brand promise through a culture that values ethics,
compliance and strong governance. Our commitment to operating responsibly
is intrinsic to our business strategy and is the principal philosophy behind the
products we design for our clients. This commitment begins with our Board of
Directors and cascades through our organization, ensuring that every associate
plays a role in reaching our own high expectations.

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Our Board

Our Board of Directors is dedicated to sound corporate governance practices that provide our
Board of Director Highlights
shareholders with meaningful rights and foster strong independent leadership in our board room.
Championing diversity means leading with diverse
We understand that creating sustainable long-term value for shareholders is only possible by com-
perspectives. We are proud of our progress in developing
mitting to strong governance practices and open dialogue through continuous direct engagement.
thorough representation at all levels of our business.
Below is the composition of our Board of Directors as of
Risk and strategy oversight March 2022:

Our Board of Directors oversees the Company’s enterprise risk assessment and integrated risk management activities.
These are designed to identify, prioritize, assess, monitor and mitigate various risks facing the Company, including risks 92% are independent
related to the execution of the Company’s operational and financial strategy. Our directors also take an active role in the 11 of our 12 directors are independent
oversight of the Company’s strategy at both the Board and Committee level, while management teams are responsible for
executing our business strategy.
33% are women
4 of our 12 directors are women
ESG governance
Our Board of Directors is directly focused on the long-term sustainability of our business. To support this goal, the
25% are racially diverse
Nominating/Corporate Governance Committee oversees the Company’s environmental, social and governance (ESG)
3 of our 12 directors are racially diverse
policies and programs. The Committee receives routine updates from ADP’s Chief Diversity and Talent Officer (CDTO),
and reports back on these matters to the Board. This arrangement allows our Board to engage with the Company more • 2 Hispanic/Latino directors
freely and across a broad range of ESG focus areas. Our Board has complete and open access to our CDTO, who spearheads • 1 Black director
our ESG Steering Committee to lead ADP’s ESG efforts. This Steering Committee is comprised of senior leaders at ADP
and their meetings occur on a quarterly basis to more effectively communicate and manage sustainability-related issues
affecting the Company, now and into the future. Average age of 61.6 years
The average age of our 12 directors is 61.6 years
For more information on the Board’s committees, governance policies and practices, including standards for director
independence, qualifications for board membership and the process for evaluating board performance, please refer to the
Corporate Governance Section of our website.

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Open dialogue through continuous direct engagement ESG Steering Committee

Below are the current members of ADP’s ESG Steering Committee
We firmly believe that creating sustainable, long-term value hinges on strong governance practices and
transparent dialogue with stockholders through continuous direct engagement. We value stakeholder feed-
back as we strive to deliver strong financial performance and sustained value creation for our investors, Bob Lockett Dave Martin
associates, partners and community members. What we learn from these conversations is regularly shared Chief Diversity and Talent Officer Corporate Vice President,
Global Security
with our Board of Directors and incorporated into our disclosures, plans and practices wherever appropriate. Sreeni Kutam
Chief Human Resources Officer Dorothy Wisniowski
Read Bio Vice President, Corporate Secretary

Michael Bonarti Danyal Hussain

Chief Administrative Officer Vice President, Investor Relations
Read Bio
Margaret Ferrero
Stuart Sackman Vice President, Assistant
Corporate Vice President, Global General Counsel, HCM Compliance
Shared Services
Dawn Verrinder
Read Bio
Sr. Director, Diversity and Inclusion
David Kwon
Chief Legal Officer
Read Bio

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Ethics and Compliance

Oversight and Structure

We are proud of our culture and the values upon which it is centered—they form the
foundation of our ongoing success. One of our foremost core values, “Integrity is Audit Committee
Everything,” guides the actions of our leaders and associates for our Company and is
Oversight of the compliance and ethics programs
one of our competitive differentiators. Essential policies that guide ADP include:

• Code of Business Conduct & Ethics

• Code of Ethics for Principal Executive Officer and Senior Financial Officers
CAO
• Anti-Bribery Policy Executive Committee
• Insider Trading Policy (Chief Compliance Officer)

• Modern Slavery Statement Serves as the corporate

• Vendor Code of Conduct Overall responsibility for the Compliance Committee and
compliance and ethics programs provides oversight, support and
guidance to the program

Global Ethics
ADP’s Global Ethics team offers our associates advice, training, counsel and support on all aspects of the Code of
Business Conduct & Ethics and the Anti-Bribery Policy. In addition, Global Ethics conducts investigations into Global Ethics Global Compliance
ethical matters and issues reported through a variety of ways, including ADP’s Ethics Helpline, and supports the
Day-to-day operational Day-to-day operational
Chief Administrative Officer (CAO) in reporting to the Board of Directors and Audit Committee. responsibility for the responsibility for the
ethics program compliance program

Global Compliance
Compliance Committees
The Global Compliance team identifies and prioritizes compliance risks and determines if they are effectively
managed. Global Compliance activities not only reduce the likelihood of non-compliance with ADP policies and Day-to-day management
implementation and reporting
applicable laws, but also contribute to ADP’s profitability and growth by supporting compliance as a centerpiece at business unit/function level
of our products and services.

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Integrated assurance and risk management

All assurance functions, including both Global Compliance and Global Ethics, take an integrated, systemic approach
to risk management. They are based on a coordinated model of coverage between business line management, which
has responsibility for the day-to-day control environment and the assurance functions. Our Board of Directors, acting
directly and through its committees, is responsible for the oversight of ADP’s risk management activities. With Board
oversight, ADP has implemented programs and practices that are designed to inspire ethical behavior, manage and govern
risk to protect the Company’s brand and reputation and grow shareholder value.

In 2021, we took the next step in bolstering our risk management processes by adding a new leadership position of Chief
Data Officer (CDO) and have continued to improve our Enterprise Risk Management (ERM) program. Our CDO will use our
existing ERM structures to identify areas of opportunity. Through this process, the CDO will help our team reevaluate
how we capture and address data risks, the findings of which will integrate with and further enhance our overall ERM
process.

As we continue building upon and improving our risk and assurance procedures, we are planning to perform an assess-
ment against an independent framework to further assess opportunity. We are committed to continuously improving and
investing in our risk management program for both our own security and our clients’ peace of mind.

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Facilitating our clients’ compliance Public policy and government relations

ADP designs products and solutions to help our clients meet their particular As the largest single source of U.S. tax payments and employment tax reports,
compliance obligations. This includes delivering updates and best practices on ADP has considerable expertise in tax administration and other employment-
the latest legislative and regulatory developments through the ADP SPARK related administrative matters. We contribute to sound government policy by
blog. To see examples of how ADP designs compliance into our products educating and collaborating with policymakers. For example, ADP worked with
and services, visit our ADP COVID-19 Employer Preparedness Toolkit, ADP the U.S. Treasury Department to implement the 2020 CARES Act Paycheck
SmartCompliance® and HR Compliance pages. Protection Program. We also worked with the Internal Revenue Service to
develop employer reporting for paid leave mandates under the Families First
Coronavirus Response Act (FFCRA) and Employee Retention Credits under the
Ethics and compliance training CARES Act and 2021 American Rescue Plan Act. Similarly, ADP worked with
several states to design employer reporting for new paid sick leave and family
Every year, each associate completes our Code of Business Conduct & Ethics
leave programs. ADP’s expertise is also valued by government policymakers who
training, with 100 percent participation and completion achieved again in FY’21.
are focused on DE&I standards. ADP met with state officials from California and
We also conduct specialized compliance trainings specific to our associates’
Illinois to offer technical advice for their new pay equity reporting requirements.
roles. This training is supplemented by awareness programs and initiatives such
as internal articles, blogs, videos and other global compliance communications.

Campaign contributions
ADP has a strict policy of “no financial support” for any political candidate, party
or government office worldwide. ADP does not contribute funds to political cam-
paigns of any sort and does not sponsor or maintain a political action committee
(PAC). Read more on our Political Contributions Policy.

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Data Privacy

Technology allows people to work in new and productive ways, though in tandem has introduced new challenges to safeguarding everyone’s privacy. Processing personal data while staying on top
of the evolving compliance challenges of privacy and data protection is core to our business. As a service provider, we make individuals’ privacy and data security a priority in everything we do.
This is the reason why thousands of multinational enterprises and millions of employees, workers and consumers entrust ADP with their personal data. As a company that complies with privacy
legislation covering the personal data we hold for our own employees and business contacts, we have embedded privacy principles within our processes.

Data privacy throughout the organization

ADP has a governance structure designed for our privacy program that ingrains Our Global Privacy Program is essential to our approach to protecting our • Documented Data Processing Activities
data privacy across every level of our organization and in every product we clients’ data and revolves around the following privacy principles: We perform data flow mapping and privacy assessments on our data
offer. This includes: processing activities, enabling us to maintain an inventory of our
• Ethics in Artificial Intelligence
processing activities.
•G
 lobal Data Privacy team As outlined in our Ethics in AI position statement, we adopted a set of
Spearheads privacy efforts across our organization principles and processes to govern our ethical use of newer technologies • Standardized Record Information Management
such as artificial intelligence and machine learning. Our record retention schedules govern the proper retention for every category
•P
 rivacy Leadership Council
of record that ADP maintains and when those records should be destroyed.
Comprised of cross-disciplinary professionals including representatives • Privacy by Design
from our business units Privacy principles are hardcoded within the ADP business model. We prioritize • Incident Management Process
privacy and data protection at every stage as we design and develop new Our incident response process is designed to ensure that any information
•Privacy Stewards
products and services. security incidents are addressed promptly and effectively, in accordance with
Designated business leaders who manage the controlled processing of
ADP security policies, procedures and legal requirements.
personal data within each ADP business unit and function •T
 ransparency and Notice
ADP publishes Privacy Statements to inform our associates, business • Supervision of Third-Party Providers
contacts, client employees and job applicants as to how their personal data ADP vendors must contractually comply with our data security and privacy
is collected and for which purposes it will be processed. standards. Our vendor assurance process enables ADP to assess its vendors
before entering into a contract.
•D
 ata Minimization and Access Control
We collect and use only essential personal data necessary to achieve the busi-
ness purpose for which data was collected. While ADP processes personal data,
internal access to data is granted strictly based on role and job function.

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Binding Corporate Rules (BCRs) Emerging privacy advancements and goals

As of March 2018, ADP ranks among an elite number of companies worldwide Changes in privacy law continue to take place in the U.S. We are actively
to have gained regulators’ approval to implement BCRs as both a data processor monitoring these changes and have operationalized a U.S. privacy program
(covering the processing of clients’ data) and data controller (covering the data based upon a variety of state-level privacy laws.
of our employees and other business associates).

• BCRs are policies developed internally among a group of companies that Privacy and data protection trainings
share a common parent
As global privacy legislation evolves, we make sure to provide our associates
•T
 hey provide a consistent set of rules for transferring the personal data of with the tools and training needed to comply with all relevant laws. ADP
clients, employees and other individuals internationally regardless of where associates and contingent workers are trained on the appropriate use and
such data is processed handling of personal data. We employ various tools, techniques and programs
•B
 CRs become legally binding once the EU Data Protection Authorities (DPA) to embed security safeguards into our associates’ and contingent workers’ day-
approve them (the DPAs are the regulators based in each of the EU’s Member to-day professional and personal lives.
States)

•T
 he EU General Data Protection Regulation (GDPR) expressly recognizes
BCRs as a means to safeguard the transfer of personal data out of the EU

•A
 uthorities regard BCRs as the best option for protecting individuals’ privacy
rights in accordance with the GDPR requirements

•A
 DP is in the process of obtaining approval from the UK Information
Commissioner for our UK BCRs to address the impact of Brexit

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Global Security

With an ever-changing digital landscape bringing limitless possibilities, new and complex security risks and threats are introduced. At ADP, security is integral to our products, our business
processes and infrastructure. We use advanced services and technology to deliver data security, data privacy, fraud prevention and crisis management.

Global converged security program Multiple layers of protection

ADP’s converged security organization has 350+ security specialists in ADP provides the advantages of a global industry-leading advanced platform
13 countries who work 24/7/365 to monitor and respond to cyber security defense; intelligent detection; automated data protection; fraud defense;
and fraud threats and business resilience incidents to proactively assist identity and access management and so much more. We embed multiple layers
in addressing issues before they escalate. Our Board of Directors and our of protection into our products, business processes and infrastructure as secu-
Audit Committee are actively engaged in the oversight of our global secu- rity remains a priority for our business. By collaborating with key government ISO Certifications
rity program. Among other things, the program is subject to an annual and industry partnerships, memberships and alliances, ADP uses threat-led
third-party assessment overseen by our Board and this assessment reviews intelligence to stay ahead of the risks. ADP has the following certifications
all aspects of our cyber program. The findings are reported to the Board and from the International Organization for
in response, ADP develops initiatives to improve our maturity across each
Standardization, valid through July 2024:
of the five pillars of the National Institute of Standards and Technology Independence of information
Cybersecurity Framework. The status of these initiatives is then reviewed security function • ISO 9001:2015 - SRI Cert #021782
with our Audit Committee during its quarterly meetings. This governance
ADP’s Chief Security Officer oversees ADP’s Global Security Organization • ISO/IEC 27001:2013 - SRI Cert #021783
process ensures an environment of continuous improvement.
(GSO) and reports to the CAO, which gives GSO the necessary independence
from IT. The GSO is a cross-divisional, converged security team that has a
Business Resiliency Program Council multi-disciplinary approach to cyber, information security, compliance,
operational risk management, client security management, workforce
A Business Resiliency Program Council as chaired by the Chief Security Officer, protection and business resilience. GSO senior management, under ADP’s
provides overall guidance and strategic direction for the ADP Global Business Chief Security Officer, is responsible for managing security policies,
Resiliency Program. The Council meets on a quarterly basis to enforce adher- procedures and guidelines.
ence to resiliency policies and standards and supports business resiliency
throughout the organization. Areas covered by the Council include real-world
responses to crises and emergencies, risk assessment, testing and validation
and plan development.

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Security training and awareness program

At ADP, our Security Training and Awareness Program is a continuous, dynamic
and robust initiative, designed to develop and maintain a security-focused
culture. The program empowers our associates and contingent workers to make
Gamifying security training
responsible, secure decisions and to protect our most valuable assets. We
employ a variety of tools, techniques and programs to embed security
We implemented a security ambassador
safeguards into our day-to-day professional and personal lives. program that is available to both associates
and contingent workers to join at their will
All associates take an annual, interactive security training program that includes
an overview of key security topics, policies and responsibilities. To complete
which gives additional, alternative security
the requirement, they must demonstrate an understanding of the material. All training and support. This gamified program
contingent workers are required to complete this same training within one week provides opportunities for our associates
of the start of their contract. Additionally, ADP’s security policies are available and contingent workers to get additional
to both associates and contingent workers on our Information Security intranet.
security training and be involved in other
This intranet site provides additional information, such as a security newsfeed
with tips and best practices, external security resources, emergency response
security initiatives.
information, security alerts, awareness information, security procedures and
contact information to enable associates and contractors to ask security-
related questions or raise concerns via email or telephone.

To reach and engage as many associates and contingent workers as possible,

ADP’s Security Training and Awareness Program employs various methods of
delivery. Examples include classroom-based training, webinars, infographics,
posters and other visual aids, online training, videos, blogs and intranet
articles, newsletters, internal social media feeds, intranet sites and more.
ADP Data Security and
Business Resiliency

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Innovation
At their core, our products are designed to serve people. To that aim, we
harness a variety of inputs through client collaboration, market trends
and our partnerships to better understand the evolving HCM needs of
organizations around the world. Our products are data-driven by design.

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ADP’s innovation strategy

As the creator of the payroll outsourcing industry, innovation is central to ADP’s identity. For
over 70 years, we’ve led the way in defining the future of business solutions. Our strategy is
simple: We innovate by anticipating the future of work and taking action in a way that empow-
ers us to shape its trajectory and address critical workforce needs through our solutions.

ADP provides clients with insights about their workforce, helping them better manage their human capital. We also
deliver innovation by creating tailored HCM ecosystems to suit each client’s individual need, resulting in a unique solution
that isn’t offered elsewhere. We’re using data to transform how great work gets done.

In harnessing the power of big data through machine learning (ML), ADP recognizes the importance of accountability,
transparency, privacy, explainability and governance, and in furtherance of those goals has established an active AI & Data
Ethics Committee, comprised of both industry leaders and ADP experts, which advises on emerging industry trends and
concerns and provides guidance with respect to compliance with the principles that ADP should follow while developing
products, systems and applications that involve artificial intelligence, ML and big data. Our AI & Data Ethics Committee
has published an Ethics in AI position statement, outlining a set of principles and processes that we have adopted to gov-
ern our ethical use of newer technologies such as artificial intelligence and machine learning.

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Enhancing our client’s HCM landscape

By focusing on emerging trends, we can create solutions for the challenges facing the world today. By leveraging
anonymized and aggregated data, we have a unique opportunity to integrate data-driven insights into our products
and dashboards. Our products help organizations quantify and enhance their HR performance and identify solutions
to potential future problems. The better our clients understand their unique HCM landscape, the better the solutions
we can create. Some features are particularly noteworthy:

Return to Workplace Mobile Solution Diversity, Equity and Inclusion

Following nearly two years of remote working and altered business Dashboard
models amid the COVID-19 pandemic, many employers are in the process Another area of increasing focus in the HR world is diversity, equity and
of transitioning their people back to the workplace. Whether at an office, inclusion. From diverse representation to inclusive cultures and equitable
factory or otherwise, there are challenges for bringing a workforce back practices, more and more companies are recognizing the critical importance
together in-person as the pandemic continues to shift. To safely return and of monitoring and fostering diversity, equity and inclusion (DE&I) in their
navigate the changing regulatory environment, managers need timely insight workforce. With our new DE&I Dashboard, our clients can quantify and track
into their workforce. In response to this emerging need, ADP developed their own diversity data and compare it to that of similar companies and local
the Return to Workplace Mobile Solution, which includes sentiment and populations through ADP’s industry-leading workforce benchmarks. ADP’s suite
availability surveys, vaccine status surveys, COVID-19 test result tracking, of DE&I capabilities is integrated within our award-winning people analytics
health attestation and contact tracing capabilities. The app’s key features solution, ADP DataCloud. The robust toolset addresses key DE&I challenges for
help HR leaders and practitioners make informed decisions about workforce HR leaders including surfacing DE&I insights, enabling local action, creating an
safety rooted in frequently updated data about their people. This is offered as inclusive culture and making change stick. Based on the results of the collected
part of our application suite and is fully integrated into our other offerings. data and peer comparison, we offer strategies for improvement right in the
dashboard, reducing the need for external consultation. Recently named one
of Fast Company’s 2021 Next Big Things in Tech, ADP’s DE&I Dashboard is
helping companies meet the social and business imperative to affect meaningful
change through impactful DE&I programs. Like our Return to Workplace Mobile
Solution, the DE&I Dashboard is fully integrated into our product suite.

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Unlocking insights through the ADP Research Institute

As part of our focus on harnessing data, in 2021 we renewed and intensified our efforts at the ADP Research Institute (ADPRI).
ADPRI conducts research on evolving HCM trends and generates insights from collected data. ADPRI’s mission is to generate
data-driven discoveries about the world of work, to derive reliable economic indicators from these insights and openly share
them with the world.

As the world continues to navigate the impact of COVID-19, we wanted to bet- at ADPRI indicates that, while the WFH model grew in popularity during the
ter understand how the global workforce has transformed. Below is some of the pandemic, there are some benefits exclusive to on-site employees. As employers
research conducted by ADPRI. navigate forward, they may be compelled to offer a hybrid approach. To learn more
about this research, please see the article here.

Changing attitudes and working conditions

Creating inclusive hybrid workplaces
The massive changes brought by COVID-19 were felt universally, as everyone
faced uncertainty and were met with new challenges that didn’t always have As hybrid working arrangements become increasingly common for their many
immediate solutions. As the pandemic progressed, its impacts were felt more by benefits, it is important to understand and mitigate the negative impacts they
some than others. We wanted to understand these differences and their varied may bring. For example, people who work from home may not be promoted as
effects on the global workforce. Through the data collected from our partners frequently as their in-person counterparts. In addition, women with children
and clients, we were able to identify that employees, on average, are working tend to prefer hybrid or remote working arrangements over in-person ones, and
more overtime and are expected to perform more, and that this phenomenon when compounded with existing bias against women in the workplace, there is
was disproportionally affecting women and parents. To learn more about this a real challenge in ensuring equitable advancement.
research, please see the article here.
We are committed to understanding why women were disproportionately
impacted by the global pandemic, and collaborating with other organizations to

Employee sentiment on the office help identify new strategies for supporting women’s advancement. This was the
exact topic at our Women@Work virtual summit in May 2021 where experts and
While the pandemic largely shifted many employees to work from home (WFH), leaders addressed the tough issues women face and shared advice for organiza-
employers are now exploring the benefits of keeping the WFH model, returning tions aiming to promote gender equity. To learn more, please see the article here.
to the office, or creating a hybrid approach using both methods. Our research

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Data-driven innovation

Our extensive experience navigating the constantly evolving workplace allows us to build adaptable tools that help our
clients work better. Informed by client feedback and data-driven research, the following are key trends and how ADP is
addressing them.

Evolution of pay Evolution of HR

Workforce flexibility will stretch beyond perceived limits as worker As employers explore on-site, fully remote and hybrid workplace models, they
expectations evolve and challenge employers and HCM providers to offer will look for new opportunities to increase employee visibility and better
flexible choices. Over the last year, there has been an accelerated emphasis understand the needs of a dispersed workforce. By leveraging globally scal-
on mobile-enabled environments that allow employees to access their payroll able HCM products, clients can improve the agility of employee interactions
information on the go and on demand. Through our new agile solutions we can through insightful analytics. ADP’s team-based solution is key in helping our
offer our clients access to their payroll almost instantly and from virtually any clients manage and improve how work is happening.
device. This increased data mobility allows workers to get the information they
• Our enhanced and scalable ADP Workforce Now aims to help organizations
need when they need it and reduces the time and resources companies use to
manage their employees with ease in an all-in-one, fully cloud-based HCM suite
manage and relay this information to each individual employee.
that equips businesses to manage payroll, time, HR, talent, benefits and peo-
• Roll by ADP is our rapidly delivered mobile payroll solution that executes ple analytics all in a single database. New learning, scheduling and recruiting
payroll duties and issues payments, with tax compliance and other deductibles capabilities further streamline employee-centric tasks and workflows. Instead
included, all in under a minute and straight from users’ phones. Roll is also of relying on time-consuming processes that span multiple systems, HR prac-
powered by Artificial Intelligence (AI), providing alerts so users can stay titioners can enter data once and leverage across the platform, streamlining
ahead of tasks and deadlines. workflows, reducing time spent on manual tasks and improving accuracy.

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Evolution of business Evolution of tech

While the workforce continues to globalize and more employees remain remote Our research shows that modern global companies use more than 30 applica-
or hybrid, organizations are faced with growing operational and compliance tions or vendors to meet their HCM needs. At the same time, we are witnessing
considerations, adding to an already complex regulatory environment. Trying the rise of AI across enterprises, which can help deliver a unified HCM expe-
to navigate the culmination of all regulatory updates across multiple countries rience. As business models evolve amid global shifts, businesses will turn to
can be daunting to employers, especially in a dynamic environment when solu- technology to drive efficiency and expand capabilities by eliminating task work
tions are needed quickly. Quality data will be key in providing businesses with and refocusing efforts on strategic growth initiatives.
the confidence they need to act.
•A
 DP Marketplace is a digital HR storefront offering a collection of highly
•A
 DP DataCloud is a powerful people analytics solution that enables companies rated solutions, offered by ADP and external partners, ready to simply and
to leverage the industry’s largest workforce dataset: anonymized data from securely share data with your ADP platform.
over 30 million workers in more than 920,000 organizations. For instance, com-
• As we continue exploring opportunities to automate aspects of HCM, it is
panies can benchmark data to find the most qualified candidates and develop
important these systems maintain our high standards of transparency and
a competitive compensation package in line with industry standards. In 2021,
accountability. This means making sure that the ways we use data are useful
ADP DataCloud was named the “Data Analytics Innovation of the Year” in the
and fair, free from bias and respectful of people’s privacy. We’re helping clients
Data Breakthrough Awards. Additionally, the ADP DataCloud DEI Dashboard
understand how our AI products work by communicating the factors that go
was distinguished as the “2021 Top HR Product” by Human Resource Executive
into our analysis and calculations. To learn more, please see the article here.
and deemed one of the 2021 Next Big Things in Tech by Fast Company.

• In December 2020, we introduced new AI features to our ADP DataCloud

offerings to address some of the biggest challenges that businesses face
today, including shifting economic policy, employee retention and the pay
equity gap. ADP DataCloud is designed to help organizations make more
informed, actionable decisions by giving them visibility into their people data
in one platform and eliminating the need for manual analysis.

• Our COVID-19 Employer Preparedness Toolkit was designed to help clients

navigate the evolving challenges they and their workforce are facing as a
result of the COVID-19 pandemic.

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Associates
We are on a transformative journey to advance human potential in powerful ways for
our clients and ourselves. We’re changing the world of work, where staying a step
ahead requires a collaborative and agile environment within a company focused on
stability, ethics and integrity. Our down-to-earth culture celebrates diverse perspec-
tives and creates a place where our people, and in turn our clients, can flourish. At
the core of ADP’s values lies the philosophy that “Each Person Counts”—that each
distinct voice fuels our innovation. With every step we take, we respect and embrace
diversity, and ensure we are inclusive of our associates, clients and business partners.

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Diversity, Equity and Inclusion

At ADP, we know an inclusive environment that values diverse perspectives cultivates the best ideas. We continually strive to
create a space where everyone is appreciated and valued for their unique individuality. That’s why we make diversity, equity
and inclusion (DE&I) the pillar of our one-of-a-kind culture and a business imperative. Our workforce is reflective of the commu-
nities where we live and work and the clients we serve. We believe in embedding these principles throughout ADP’s business,
from our policies to our products.

In December 2020, ADP joined OneTen, a coalition of leaders who are working We embrace race, ethnicity, nationality, age, sexual orientation, gender identity
together to cultivate economic opportunities for Black talent in America. and expression, veteran and disability status. Associates from entry level
Over the next 10 years, ADP and 50+ companies will upskill, hire and promote through executive leadership have a deep sense of belonging. To learn more,
We Bring Our Whole
one million Black individuals who do not have a four-year degree into family- please visit our website. Selves to Work at ADP
sustaining careers. It is our imperative to elevate under-represented groups and
serve as an industry DE&I champion and leader.

One of our guiding beliefs at ADP is that each and every associate has the potential and power to
positively impact our business and shape the innovative solutions and exceptional service we offer,”
said Bob Lockett, Chief Diversity and Talent Officer for ADP. “Within ADP and within the world of work,
we are committed to creating workplaces where people can thrive as their authentic selves and raise
the bar on their possibilities.”

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Women@Work Summit 2021

The economic toll of the pandemic is still revealing itself and initial investigations show women are at the center of this impact. With representation in
the workforce diminishing and wage disparity widening—the path to progress faces more challenges. New economic research shared during ADP’s recent
Women@Work Summit session, Beyond the Glass Ceiling: Economic Insights of Women at Work, gets to the heart of the issues and sheds light on how
different industries and workers have fared.

Inclusion Summit 2021

Achieving DE&I in the workplace requires more than satisfying quotas and filling seats; it takes an understanding of the value of diversity and nurturing a
culture of inclusion where people of all backgrounds can thrive. To help companies advance their DE&I programs to affect change, on October 20, 2021, ADP
held a virtual Inclusion Summit 2021 where we discussed challenges and opportunities tied to culture and inclusion at work for ADP prospects, clients, ADP’s Commitment to
partners and associates. During the Inclusion Summit, ADP hosted a day of seminars, guest speakers and meaningful conversations. Uniting on Diversity,
Equity and Equality
The keynote address from the summit, “Addressing Labor Market Inequities and Inclusion at Work”, discusses how leaders can help their employees feel seen,
heard and valued.

U.S. Federal Work Opportunity Tax Credit

ADP supports our clients incentivized by the U.S. federal Work Opportunity Tax Credit (WOTC) to hire individuals from certain target groups who may face more
difficulties finding employment, including veterans, the formerly incarcerated, and recipients of certain state or federal assistance programs. ADP’s WOTC offer-
ing helps our clients screen tens of millions of applicants annually through a web-based WOTC screening system that automates how our clients can conduct the
WOTC screening in a compliant manner, simplifying data collection and increasing WOTC compliance rates.

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 42% 42%
40%
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20%

10%

Workforce
Management Demographics
Workforce
0%
Management Workforce

Our tens of thousands of ADP associates reflect the cultural diversity of the communities
Jun 2020 Junwhere
2021 we live and work. In June 2021, women represented 53 percent of
ADP’s global workforce and 42 percent of our global managers.

2021 Underrepresented Groups Jun 2020 Jun 2021

0 Minority Demographics*
2021 Women(U.S. Only)
Demographics (Global) Demographic* (U.S. Only)
60% 40% 38% 38% (U.S. Only) Management Workforce Management Workforce
53% 53%
50% American Indian/Alaska
29% 29% 0.2% 0.2% 0.1% 0.2%
42% 42% 30% Native
40%

30% 20% Asian 8% 8% 8% 8.3%

20%
10%
Black or African American 7% 11% 6.6% 10.8%
10%

0% 0%
Management Management
Workforce Workforce Management Workforce Hispanic or Latino 11% 15% 12% 15.7%

Jun 2020 Jun 2021 Jun 2020 June 2021

Native Hawaiian/Other
0.2% 0.4% 0.3% 0.4%
Pacific Islander
*Under-represented groups include the following EEOC categories (U.S.
2021 Underrepresented Groups Only): Black/African American, Hispanic/Latino, Asian, American Indian/
Alaska Native, Native Hawaiian/Other Pacific Islander, Two or More Races
Two or More Races 3% 3% 2.5% 2.8%
Demographic* (U.S. Only)
eration Demographics
40% (Global) 38% 38% Generational Demographics (Global)
60% 58% White 67% 56% 66.9% 56.4%
56%
While
30% we do not29%
use the Federal Employer Information Report EEO-1 to measure progress, our annual EEO-1 Report is available
29%
50%based on categories prescribed by the federal govern-
here. The EEO-1 Report is a snapshot in time of our U.S. demographics and
Not specified 3% 5% 3.6% 5.4%
ment. These categories do not reflect how our industry or workforce is40%
organized.
20%
30% 29%
30% Overall Under-represented
29% 38% 29% 38%
10% Groups
20%

0% 10% 7% 7% 7%
5%
Management Workforce
0%
Baby Boomer Gen X Millennial Gen Z Baby Boomer Gen X Millennial Gen Z
Jun 2020 June 2021
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Women and under-represented groups in Workforce initiatives

executive roles
Targeted development
The business case for workplace diversity is simple: By establishing a culture
Business resource groups
of inclusion, businesses gain intrinsic rewards and improved results from better
Our business resource groups (BRGs) are voluntary, associate-led groups that
decision making, increased engagement and more innovation.
serve as a driving force of diversity, culture and inclusion at ADP. As this ACTIVE BRGs IN 2021 INCLUDED:
To accomplish this, we set directional targets to support our business objectives ecosystem of inclusivity continues to expand its membership, it also continues
and allow us to measure progress. In 2018, after the successful conclusion Thrive (Disabilities)
to further evolve as a strong business resource for ADP—helping to expand
of our last target cycle, we issued new three-year targets through 2022 for career growth, recruit diverse talent, make inroads into diverse markets and Adelante (Hispanic)
women and under-represented groups in executive positions. diversify our suppliers and vendors. Elevate (Asian)

As we enter 2022, we are pleased to announce that we have reached and ADP’s business resource groups, several of which have been around for 10 years Cultivate (Black/African-American)
exceeded our goals. As of June 2021, 33 percent of our executives are women, or more, are evolving with our core business. While the BRG community will PRIDE (LGBTQ)
which meets the goal we had set to achieve by 2022. And, 23 percent of our maintain its mission of fostering diversity, culture and inclusion, ADP’s business
Military Strong (Military)
executive roles are held by associates who self-identify as individuals from resource groups are adopting an increased focus on and alignment to business
under-represented groups, which is 3 percent above our target for 2022. Inspire (Innovation)
outcomes and will help ADP identify diverse sales leads, supplier referrals and
candidate referrals. Generations (Multigenerational)
iWIN (International Women’s Inclusion Network)
Inclusive language initiative BRG Connect
BRG Connect is a technology-enabled mentoring program that was launched • WiSL (Women in Sales Leadership)
Words matter. How we speak to each other matters. ADP strives to create a space by ADP’s business resource groups in 2019. The program has enabled over • Empower (Women in Technology)
that supports the diversity of our associates by carefully selecting the words we 1,384 mentoring connections and 11,000 mentor hours. We will continue to
Women in Leadership (Executive Women)
use. As we navigate an evolving world with changing social landscapes, we believe leverage the platform to enhance the associate experience at ADP.
it is important to continually evaluate our communication policies to identify and
remove outdated or insensitive language. With this aim, we introduced our inclusive BRG inclusion initiatives
language initiative: To establish inclusive language guidance and standards at ADP ADP’s business resource groups are part of our associates’ everyday experience. In
and ensure associates are equipped to understand and embrace this shift. addition to offering ongoing support, our BRGs sponsor cultural, educational, and
networking events, drive initiatives that help promote inclusion and serve their
We strive to be a leader that other organizations look to for best practices on communities through partnerships and volunteering.
identifying and adopting inclusive language. This requires us to be vigilant of
current sentiments within our communities and how individuals are affected by
major global events. As part of our journey, we listen to and embrace existing calls
for change and pioneer new calls for change where we can make a positive impact.

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Creating an inclusive workplace

Unconscious bias awareness Multiple Pathways Initiative Pay equity

Elevating under-represented groups requires a collective effort and
Our leaders play a critical role in disrupting bias and building an inclusive re-envisioning of how things are done. The Multiple Pathways Initiative, aligned At ADP, we are deeply committed to upholding fair and equitable pay. Pay
culture. In 2021, we trained over 2,000 leaders in mitigating unconscious bias with OneTen, identifies best practices to promote skills-based hiring and makes equity is critical to creating an inclusive and engaging culture that enables all
and using best practices to ensure inclusive hiring. recommendations for participating organizations, like ADP, to promote these associates to reach their full potential. We make pay decisions based on skills,
practices and other talent acquisition processes that increase diversity. job-related experience, the market value of the job and performance. We have
incorporated pay equity reviews into our year-end compensation decisions.
Fair and equal hiring practices Hiring for success And, we no longer ask candidates to provide their salary history in the U.S.
Our goal is to extend ADP’s employer brand reach to under-represented We want our entire global team to share similar core values while bringing their or in Canada. We continue to explore ways we can introduce this and other
talent and position ourselves as an employer of choice by cultivating external own unique viewpoint and skillsets to their roles. To help accomplish this goal, initiatives across the globe to promote pay fairness.
partnerships, reimagining our college and university relationships and building our Hiring for Success program teaches managers how to use objective hiring
an infrastructure to support these efforts. criteria, diverse interview panels and consistent interview questions to help
remove unconscious bias and improve our hiring processes.
Fostering under-represented talent
ADP’s partnerships with Historically Black Colleges and Universities (HBCU), Diverse slates and panels
Hispanic Serving Institutions and other diverse campuses engage students As we strive for greater gender diversity globally and greater ethnic
at all stages of the student lifecycle. Our program does not stop at traditional representation within the U.S., ADP is committed to leveraging best-in-class
career fairs and visits to the career office. Instead, ADP strives to maintain a strategies such as diverse slates to achieve our goals of minimizing bias and
consistent presence on campuses to support career preparedness, create brand systemic barriers for women, people of color and other under-represented
awareness and develop a diverse pipeline of talent. ADP identifies opportunities groups including people with disabilities, LGBTQ+ and veterans. ADP has been
to sponsor and co-sponsor existing programs and events and offers career leveraging diverse slates, both gender and under-represented groups, to improve
preparation lectures. DE&I for years at the leadership level.

We are focused on growing reciprocal relationships: ADP helps cultivate our In 2020, we expanded our commitment to diverse slates to all job levels at
partnerships’ talent pool through education, programming and resources. In turn, ADP, to ensure groups that have been historically under-represented have
we benefit from access to their talent database, chapter leadership, events and opportunity and access. We also employ diverse interview panels, to help
brand exposure. protect against “in-group” or similarity bias in the hiring process. In addition,
in 2021 we removed the college degree requirement to work at ADP, where
permissible, to broaden the talent pool from which we can pull.

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Supporting under-represented groups

Diversity & Inclusion Talent Task Force military bases and non-profit organizations who assist transitioning service Advancing Women in Leadership (AWL)
Last year, ADP launched the Diversity & Inclusion (D&I) Talent Task Force to members in finding new careers. We designed several initiatives to attract To aid in the career advancement of female leaders, ADP launched a program
advance under-represented talent in leadership. This program was developed to veterans to ADP, ease them into their new positions and help them succeed. for high-performing women in management who wanted to take their careers
ensure equitable representation at all leadership levels for under-represented to the next level. ADP’s global Advancing Women in Leadership (AWL) program
We also work to support our student veterans. Rather than moving directly into
talent. By enhancing our hiring process, we are more effectively sourcing, is designed to fill our pipeline of future executives in a way that is equitable
corporate America upon completion of their service, many veterans will use
interviewing and hiring Black/African American, Hispanic and other under- and reflective of the workforce population. It gives high-performing women,
their educational benefits to attend college and gain new skills before entering
represented talent. starting at the manager level, the opportunity to define and bolster their career
the workforce. ADP partners closely with a non-profit called FourBlock to
aspirations through facilitators, speakers and exposure to senior leadership.
Further, we’ve aligned our career development programs, promotion practices assist veterans who are still in school and exploring future career options. ADP
and retention strategies to assist in closing any representation gaps. ADP’s top hosts FourBlock instructors and students at many ADP locations (in person and
150 leaders in the U.S. have diversity goals tied to compensation as an incentive virtually) across the country and our associates (both from our Military Strong &
to diversify our leadership ranks, ensuring they represent the communities in Allies BRG and outside) participate and give back by helping veterans on topics
which we live and work and the clients we serve. such as the use of LinkedIn, career triangulation, resume review, interviewing
skills and personal branding and marketing. Our veteran and military spouse
In addition, the D&I Talent Task Force championed initiatives including the
associates enjoy participating in these events in order to give back to the
Latinx Academy, McKinsey Management Accelerator and Black Executive
military community.
Leadership Program to support under-represented leaders in meeting their
potential and overcoming challenges they may face. LGBTQ+ inclusion
All-inclusive benefits:
We proudly hire veterans
With the passage of the marriage equality act, companies started offering
We greatly value the unique perspectives, dedication, adaptability and
certain benefits to married LGBTQ+ couples. At ADP, we go further. Our
leadership qualities veterans bring to the table. We strive to give them and
benefits are all-inclusive and awarded to any domestic partner. See how ADP
their spouses careers of which they can be proud. We have a dedicated veterans
has created a culture of inclusion.
careers page, which was enhanced with a Military Occupational Specialty (MOS)
translator in 2019. Now, candidates can enter their MOS and the system will Human Rights Campaign
suggest positions best suited to their profile. We also actively look for veteran In 2022, for the thirteenth consecutive year, ADP received a 100 percent
candidates as part of our campus recruiting program. Given the close proximity rating in the Human Rights Campaign (HRC) Corporate Equality Index (CEI),
of many of ADP’s U.S. locations to military installations (El Paso—Ft. Bliss, which annually rates large U.S. employers based on their policies and practices
Norfolk—Norfolk Naval Station, Augusta—Ft. Gordon, Tempe—Luke Air Force pertaining to LGBTQ+ employees.
Base and Louisville—Ft. Knox), we have a very close relationship with our local

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Talent Acquisition and Retention

Great companies are built by great people. Our strengths-based culture, purpose driven leadership and inspiration of our
associates who live and breathe our ADP values allow us to provide an agile, creative and collaborative workplace. Our
talent strategy aims at attracting and retaining ambitious, passionate and overall top talent to continue to grow our
diverse and unique culture.

Internships •F
 ertility management: Participants in this program, which include members
of ADP’s LGBTQ community and eligible single parents, receive personalized
To fill our pipeline with the best and brightest talent, we have established guidance and support to help them understand their fertility treatment
global internship programs enterprise-wide. By immersing students in ADP’s options. This includes coverage for fertility medications, in vitro fertilizations
culture, we can identify mutual fits with an end goal of full-time employment and egg freezing, among others.
after graduation. Internships are available both full-time and part-time and
provide networking events, learning opportunities and mentoring relationships. •A
 doption and surrogacy reimbursement program: Associates who are look-
In the United States, we also travel to campuses across the country to meet stu- ing to grow their families through adoption or surrogacy can receive reimburse-
dents who are sharp, creative, driven and friendly. Find out more on our website. ment towards qualifying costs of adopting a child or arranging a surrogate.

• Back-up care program: Regular associates who work 20 hours or more per week

Benefits can utilize our Back-Up Care Program when something unexpected disrupts their
childcare routine. For a small co-pay, associates have access to 10 back-up care
Our associates receive a competitive benefits package, intended to help them days each year, with high quality care provided by Bright Horizons.
enjoy physical, emotional and financial well-being and be productive members
•P
 arental Leave: All regular associates who work at least 20 hours per week
of their teams. While exact benefits vary by employee and region, they typically
may be eligible for four weeks paid parental leave to be taken within six
include health care coverage, a 401(k) plan with company matching contributions,
months of the date their child is born, adopted or placed into foster care.
free wellness services, tuition reimbursement, employee assistance programs and
more. We particularly emphasize benefits that support our associates’ individual •O
 n-demand tutoring: Formerly known as the Homework Connection, this
and family needs (parental leave, adoption/fertility benefits and programs to program affords associates up to 5 hours of free tutoring services per month
support caregivers). We constantly update our programs according to our for their dependents. This tutoring is available for both younger and older chil-
associates’ needs. For example, in the U.S. we offer the following programs: dren. We also offer support through the College Coach program for associates
with children who are in high school and preparing for college.

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Flexible work options Associates have access to the following wellness programs:
• Personal health checks
We empower our associates to create a solid work-life balance. We provide • Nutrition and fitness expert visits offering free consultation and programs
a comprehensive set of programs, practices, activities and resources to help • Employee assistance programs
associates choose productive and flexible work management solutions that are • Free therapy sessions to associates who require counseling and mental
best for them, ADP and our clients. To this end, in March 2022, ADP rolled out a health assistance
flexible work model to offer greater adaptability while preserving the ability to • Year-round CSR program that allows associates to volunteer and donate to
collaborate and leverage each other’s knowledge and experience. charitable causes close to their hearts

Safety, health and wellness

ADP has a long tradition of promoting health, wellness and safety; we embrace
it as part of our corporate identity. Our aim is to provide a holistic approach to
the needs of our associates by offering programs that are physically and men-
tally beneficial, help them pursue a healthy lifestyle and reduce absenteeism
and lost time due to injuries.

Our health and safety efforts include:

• A company-wide health and safety manual and website accessible 24/7
• Safety education and training offered on our risk management website
• Regular committee reviews of health and safety procedures
• A wellness program that allows associates to earn points and rewards for
completing various wellness activities

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Training and Development

The ability to offer insightful expertise to our clients and associates is one of our core values.
Harnessing Virtual Reality
Our associates are encouraged to challenge themselves, share their strengths, take risks and
find community. We believe in investing in team members to teach them the skills necessary The backdrop of the pandemic, social injustice and
for success and growth in their careers. economic disruptions have shown that associates need
The ADP talent journey begins with an innovative, engaging and comprehensive on-boarding process, followed by exten- emotional support, open communication and coaching
sive training and mentorship. With the rise of new hires working from home, we faced a new challenge of training asso- from their managers now more than ever. Leaders need
ciates on how to use our technology. To address this challenge, we introduced a novel training program that starts on the to be more authentic and connect with our associates on
associate’s mobile device and directly delivers a welcome message, information on our philosophies and set-up instruc- a human level to drive team and business performance.
tions using augmented reality. This early engagement in the learning cycle helps our associates become part of the ADP
Virtual Reality (VR) simulations are a personalized and
community and sets them up for long-term success.
effective approach to accelerate these skills in a realistic
Associates are also encouraged to get familiar with our culture by learning about our DE&I focus and our “Integrity is and measurable way. ADP piloted a VR training platform in
Everything” approach. To further enhance performance and career development, ADP associates have access to a wide
our Front-Line Leaders Program to over 1,000 participants
variety of professional and functional skills training well beyond on-boarding. All associates at ADP are also encouraged
to join BRGs where they can take advantage of mentoring programs, learning events and even safely experiment with in 2021. This will enable managers to better navigate
leadership skills as a local chapter leader. We also build leadership capabilities for current and future leaders with targeted essential conversations and challenging scenarios with
and inclusive leadership development programs. At ADP, we focus on continuously improving our leadership develop- team members in a simulated, immersive environment that
ment offerings to meet evolving business needs including a current focus on digital skills and our transformation into a allows participants to freely learn and make mistakes in a
strengths-based organization.
safe space.
ADP’s learning organization is a hybrid model, with three main divisions of learning:
1. Leadership Development and Performance
2. Enterprise Learning
3. Worldwide Sales Operation Learning and Leadership

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Leadership development Career and Talent Development

ADP is a strengths-based organization because we know that focusing our Growth and development are top engagement drivers for any associate. ADP’s
leaders on what makes them strong, and on what makes those who they strategy is to enable our associates to move forward towards accomplishments
lead feel alive and engaged, produces much better results and effort from all that excite and energize them while simultaneously elevating the company.
associates.
Grounded in a clear Career Growth & Development (CG&D) philosophy and As I stepped into my new Business Process
Leaders use their individual strengths to lead successfully while remaining framework, ADP’s internal CareerDriver tool enables associates to take their
grounded in ADP’s Leadership Priorities: Act Like an Owner, Make the Client career into their own hands. It is the ultimate career navigation system that
Innovation role, some of the resources from
your North Star and Always Listen to Associates. puts resources, tools and guidance at their fingertips for every stage of their our CareerDriver site really helped me. I used
career journey—new in your role, developing in your current role, exploring career
Our integrated leadership development strategy addresses the unique and the Individual Development Plan Basics
options and preparing for your next role.
shared needs of all levels of leaders, from those who are exploring leadership Worksheet to organize my plan and goals and
for the first time in their careers all the way up to experienced leaders and Blending technology and talent development, ADP launched a game-changing
executives. career-mapping technology—myCareerConnect. It provides associates increased revisit them to track my progress. As I met
Our strategy is based on three core principles of design and leadership expertise:
awareness of career possibilities through a career map, offering a visual different teams and new acquaintances the
representation of historical career movement at ADP. It helps answer career
• Creating development journeys instead of single training events to sustain questions such as, ‘Where can I go?’ and ‘How do I get there?’ The most recently PitchCraft became my close friend which
long-term behavioral change added features allow our associates to view and manage their top skills and made meeting new people so much easier.
• Offering experiential activities and simulations of real-life relevant situations open requisitions directly from the tool. The tool also provides personalized and
relevant role suggestions and allows associates to include additional professional
The Loves and Loathes worksheet helped me
to model decision-making and engaging candidates’ existing strengths
• Using learning measurement theory and technology to provide performance skills to further improve the matches. record, develop and repeat the good experi-
and behavior change insights to HR Business Partners and Business Unit
Along with new and innovative technology the CG&D team holds regular ences giving me a chance to do more of what
Leaders
instructor-led sessions for both associates and leaders centered around
I loved and less of what I loathed.”
As an example, we reimagined our Leader of Leaders program from a three- fundamental career topics like relationship building, branding, networking,
interviewing, growing where you are, leaders as career partners and building
day, in-person event to a six-week, virtual journey. This learning experience Madalina Cecan, UAT Consultant from
is designed to help leaders build self-awareness, cultivate strong internal development plans and more. ADP also has career advisors who undergo rigorous
certification programs and use our CG&D philosophy and framework to give
Bucharest, Romania
relationships, establish a leadership model that is unique to their strengths and
achieve better decision-making using systems thinking. During fiscal year 2021, associates guidance and resources to further their career. We also encourage
nearly 800 associates completed our Leadership Excellence program. our associates to look for developmental experiences in addition to formal
learning. These can include (but aren’t limited to): cross-functional exposure

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and leadership roles in Business Resource Groups. The CG&D team also provides
ample opportunities to its volunteers to participate in stretch assignments which
through an increased understanding of their talents and interests and productive
interactions with their managers, which also helps them identify learning and
Enterprise Learning
offer the use of a wide array of skills like graphic design, project management, career growth opportunities. In addition, the tool regularly provides targeted tips ADP believes empowering clients and associates through learning is integral to
translation, facilitating sessions and more. both to the associate and their manager based on individual strength profiles. its success, evidenced by strategic organizational goals tied directly to learning.
ADP’s functional learning and performance division, Enterprise Learning (EL), is
In addition to these opportunities, every April, we hold a CG&D Rally which is We also conduct an annual culture survey, myVoice, which provides another
entrenched in achieving these goals by helping clients, associates and ADP thrive
broadcast globally to all our associates as they participate in career-focused opportunity for our associates to share their opinions on important topics,
as our products, technologies and business practices transform. This is achieved
sessions and activities. What began as a 60-minute session several years ago, the including ethics, social responsibility, innovation and leadership. Particularly
through our mission to drive an effortless and dynamic learning experience that
Rally has gotten bigger and better—expanding to a 24-hour Rally in 2020 and our during the challenging events of the last two years, it was extremely important
positions our stakeholders for success.
first ever week-long Career Carnival Rally in 2021, with several thousand of our to hear our associates’ thoughts on working at ADP. The results remain
associates participating globally. overwhelmingly positive, with an overall culture score of 81 percent favorable.

To continue ADP’s commitment to our associates’ growth and development, we Redesigning training with AI
are also starting a new hire outreach program where we will connect with our Learning Business Council We optimize personalized, modern learning experiences and outcomes throughout
new hires right as they join ADP and provide them with the tools, resources and
ADP by leveraging technology, data, design and talent to ensure our programs
guidance needed so they can focus on their career right from the start. ADP’s Learning Business Council consists of senior leadership executives from
are engaging, insightful and impactful. In part, this is achieved through our
each business unit, as well as learning leaders from across the enterprise. The
At ADP we believe that our associates have their own definition of career success investments in digitized learning solutions that help associates and clients do
council collaborates to discuss and influence key strategic projects, issues and
that is not constant but always developing and changing. To support these goals, their jobs efficiently and effectively, including (but not limited to):
future opportunities.
we are always evolving in our endeavor to provide a great career growth and
•N
 extGen knowledge management — This online knowledge base houses
development experience to our associates. For example, as a result of the pandemic, our training strategy had to pivot
information that helps associates service clients. It uses modern authoring
suddenly, enterprise-wide. Every program went virtual—often while in-progress.
techniques and advanced search technology to answer queries with relevant and
Every new-hire class stayed on schedule, every key initiative progressed without
Accelerating performance through fail and critical regulatory support was delivered. Additional training and
fast search results in the moment of need, with content that is easy to scan and
consume.
StandOut performance-support programs were rapidly implemented to guide clients and
associates though FFCRA/CARES Act payroll legislation. • I n-product learning — We embed guided walk-throughs within ADP’s products
StandOut powered by ADP is an innovative talent engagement and activation that provide instructional support to clients and associates in the flow of work,
platform. The tool is built on an initial strengths assessment of each team thus reducing effort, affording them the opportunity to learn how to get optimal
member, supported by weekly check-ins that enable alignment on priorities for use out of our products while completing their day-to-day tasks. These walk-
the week and reflection on activities associates love and loathe. This information throughs can be added or updated quickly, enabling us to deliver new instruction
allows our leaders to utilize the different strength profiles of their team members whenever there are new technologies or legislative changes.
more effectively and provide more targeted coaching. Our associates benefit

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•L
 earning Management System (LMS) — This system is our library for the Classes average between 160-240 hours for on-boarding training, with the
virtual, on-demand training courses that we design, deliver and manage for average length to first sales between 4-12 weeks, depending on the role and
associates (myLink2Learn) and clients (myLearning@ADP) alike, providing buying cycle of the targeted market.
instruction on everything from product knowledge to soft and technical skills. Brainshark
By maximizing data-driven sales, modern tools and a robust technology stack,
•A
 ugmented Reality On-boarding — With more and more associates getting we place a large emphasis on sales and leadership training. Sales Leadership
To support our Worldwide Sales Operation
on-boarded remotely, we faced a new challenge of how to start the training starts when our successful salespeople mentor their first peer. Entering a
Learning and Leadership program, we started
process without in-person guidance. In response, we introduced augmented multifaceted leadership development program, intertwined with ADP Enterprise
reality on-boarding materials that allow new associates to scan a code on their Learning’s Career Growth planning, our sales leaders value the unique leveraging a new video-based tool called
phone where they are greeted with a welcome message and instructions for characteristics of each of their team members. From the formal classwork Brainshark. This program features AI-based
getting set up and started. This seamless, augmented-reality introduction for developing leaders, new leaders and executive leaders, they engage in coaching that leads trainees through different
provided our new associates with links to HR information and videos about role supportive, timely and relevant on-demand classes, connection calls and
scenarios, role-playing interactions between
getting started in their learning journeys. leadership mentoring sessions to fine tune their leadership skills.
potential and existing clients and their
In 2021, we virtualized these training programs, allowing them to be individual role within the ADP salesforce.
Worldwide Sales Operation Learning administered digitally across our operations to ensure that consistent and
This tool also helps streamline the feedback
high-quality training is available to our associates. We also introduced two new
and Leadership training packages focusing on remote selling: “Remote Selling the ADP Way,”
process for leaders by providing transparent
and “Mastering Remote Selling.” rubrics and universal grading features.
ADP pays special attention to our client-facing sales organization in regard
to on-boarding, tenured and leadership training. We support over 7,500 sales With a strong emphasis on promoting great talent within ADP, our commitment
associates, as well as additional sales support staff. to learning and development is a keystone to ADP’s future success. By making
Our focus on modern sales contains an emphasis on ethical selling including a significant and impactful connections with our associates and partners, and
diverse and inclusive approach to our buyer personas, roles, industry and market employing effective and appropriate communication, we create a dynamic team
needs. We believe this creates a salesforce that can fit ADP’s solutions to each culture that will drive performance.
unique buyer for a positive and productive future for all.

With new salespeople added to ADP’s sales teams each year representing ADP Recognition
in over 140 countries, each sales associate experiences a blended on-boarding
To see a list of awards and recognitions we received for our efforts in 2021,
journey involving their manager, mentor, peers and sales learning consultants,
please visit our website.
engaged with digital self-paced and instructor-led coaching and classes.

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Community
Acting responsibly is at the core of what we do. Our success comes from our
associates and the communities supporting them. By focusing ADP’s efforts
to improve the communities where we live and work, we are supporting
meaningful causes and constructing a foundation that allows our business
and our people to thrive.

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Community

Through our technology expertise, volunteerism, charitable giving, and a growing commitment to diverse suppliers, ADP is committed to giving back to communities where we live, work and
conduct business.

Philanthropy Supplier Diversity ADP’s Supplier Diversity Program continues to grow with proven success. Our FY
2021 achievements include:
The ADP Foundation is the center of our corporate social responsibility (CSR) ADP is committed to extending the shared values that diverse suppliers bring to
• Overall FY 2021 total: $367.2M
initiatives. It magnifies the impact of associate giving to causes that align with our business. We understand that creating partnerships with diverse suppliers is
• Diverse spend increased 9% since FY2019
our values and CSR focus areas. not only the right thing to do; it gives us a powerful business advantage.
• 16% of overall procurement spend with diverse suppliers
Services provided by the Foundation include: The primary goal of ADPs Supplier Diversity Program is to proactively identify, • 45% or $11.3M increase in spend with Hispanic American owned businesses
build relationships with and purchase goods and services from minority, women, • $3.1M in savings attributed to using diverse suppliers
• Oversight of ADP Cares, our global associate hardship fund
veteran-owned and other qualified diverse enterprises. We strive to partner
• Donation processing and matching program
with businesses that reflect the local and global markets we serve, while obtain-
• Review/approval of grant requests from charitable organizations Supplier Diversity
ing the highest level of quality goods and services for our clients.
• Determination of eligible charitable organizations and volunteer options
400 $367.2
• Fundraising for eligible charitable organizations Our Supplier Diversity Program supports: $335.7 $340.7
350
$94.1
300 • Woman-owned business enterprises $94.9 $98.7
Employee Giving • Minority-owned business enterprises

spend in millions
250 $273.1
200choice of • Veteran-owned business enterprises $240.8 $242.0
ADP’s myGiving online tool allows associates to donate to their
• Disabled-owned business enterprises
thousands of charitable organizations. ADP associates in the 150
U.S. can also
• LGBTQ+-owned business enterprises
participate in our Matching Gift Program, in which donations to eligible non-
100
• Small disadvantaged business enterprises
profit organizations are matched up to $5,000 per associate per50calendar
• Small business enterprises
year. Executive Committee members and our Board of Directors 0are eligible
2019 2020 2021 FY 2019 FY 2020 FY 2021
to up to a $20,000 match, while executive level leaders are matched up to
$10,000 for their donations. In 2021, associate donations, including matches,
Tier 1 — direct spend with diverse suppliers
totaled $9 million, which represents a 14 percent increase over 2019.
Tier 2 — indirect spend with diverse suppliers

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Many small businesses are diverse businesses—some of which are our clients. Covid Impact­­—How ADP Helped
Supplier mentorship at ADP features one-on-one work, group discussions and
summits to help new and existing suppliers improve their business acumen, • ADP offered expedited payment methods to our diverse suppliers during
especially with large corporations. the pandemic
• Wellness checks on diverse suppliers
We are pleased with the progress we’ve made and want to keep moving the • Sharing information about ADP diverse suppliers internally and externally,
needle. Current initiatives include: sharing the success stories of diverse suppliers as it relates to a supplier
diversity win, use of diverse supplier list/dashboards to source new
• Increasing Minority, Veteran and LGBTQ+ spend by finding opportunities with
engagements
ADP business stakeholders
• Training and mentorship for new and existing suppliers
•P  artnering with local, regional and national organizations that support sup-
plier diversity
Diverse Markets
Understanding, supporting and partnering with the diverse communities and
To help ensure that our bidding opportunities reach eligible diverse business
markets we serve is fundamental to our Corporate Social Responsibility mis-
enterprises, ADP works in conjunction with the following organizations and
sion. With these efforts and partnerships we drive both ADP’s brand image
councils:
through the solutions we provide, as well as build strategic partnerships to
• National Minority Supplier Development Council (NMSDC) investigate and harness new opportunities. In addition, we are committed to
• Women’s Business Enterprise National Council (WBENC) creating a workforce that is representative of the communities we serve and
• National Gay and Lesbian Chamber of Commerce (NGLCC) that our increasingly diverse clientele can identify with.
• Disability: IN

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Environment
Environmental stewardship is essential to both our corporate social responsibility
program and our business strategy. We are committed to investigating new
environment and climate-related opportunities that will better serve our business,
clients and communities around the world. We believe that creating sustainable
products and streamlining our operations reduces our environmental impact and
drives efficiency, innovation and ultimately, long-term value-creation.

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Energy and greenhouse gas management

Increasing energy efficiency and reducing greenhouse gas emissions associated with our operations are central goals for our environmental sustainability program. Our primary sources of
greenhouse gas emissions come from our offices and data centers, and we are pleased to announce that we reached our 2014 goal of reducing emissions by 10 percent by the end of calendar
year 2020 in the United States.

ADP Pledge to achieve net zero Climate risk and opportunity management Energy and greenhouse gas reduction
greenhouse gas emissions by 2050 Climate change is an increasingly urgent topic that may have significant Throughout 2020, ADP invested in energy reduction initiatives that improved
impacts on our business, our associates and the international community. As efficiency, reduced energy consumption and decreased our emissions. Some
In 2021, we decided to make the commitment as an organization to achieve net
governments and markets consider a range of options to adapt to a changing examples include the upgrading of multiple data centers with lithium-ion bat-
zero greenhouse gas emissions across scopes 1, 2 and 3 by 2050. In our current
climate, the possibility of disruption grows. There are both risks and opportu- teries for increased operational longevity and reduced energy consumption,
fiscal year, we are developing a Paris Agreement-compliant climate transi-
nities present in these shifting landscapes, and we are committed to under- installing LED lighting, implementing new Building Management Systems
tion plan that will include short, medium and long-term global goals towards
standing and positioning ADP and our services to mitigate potential threats (BMS) to increase building efficiency and a revised travel policy. In total, we
this target, and we expect to set these goals against a pre-pandemic 2019
and capitalize on new markets as we navigate the impacts of climate change. reduced our 2020 electricity consumption by 65,000 MWh. ADP annually
baseline. We plan to invest in renewable energy, efficient infrastructure and
reports to the Carbon Disclosure Project (CDP) regarding its emissions-reduc-
sustainable alternatives, among other things, to reach this goal, and look for- Our Board is committed to sound environmental practices and our Nominating/
tion initiatives. For more information on these efficiency projects and our 2020
ward to providing updates as we strive towards reducing our emissions. We are Corporate Governance Committee of the Board of Directors has oversight of
emissions, visit CDP’s website here.
excited to have a portfolio of several projects already in motion to support the environmental sustainability, a responsibility which has been enshrined in the
goal, including the use of solar panels, replacement of legacy equipment and Committee’s charter for several years. The Committee is supported by the ESG
increased use of fuel cells at our facilities. We expect to formalize our targets Steering Committee on these matters and routinely updates our Board so that
in line with our operating plan and financial reporting cycle for fiscal year 2022 the Company can effectively address emission reduction matters as well as
and stakeholders will be able to find more information at sustainability.adp.com climate change mitigation and adaptation through key programs and policies,
when available. ensuring that our business operations are resilient to climate change impacts.

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Greenhouse gas emissions

In calendar 2020, we continued to improve our greenhouse gas (GHG) inventory data collection and management processes. For example, over the past couple years,
we implemented an independent, third-party verification process that began with a review and verification of our 2019 U.S. GHG emissions (our main source of
emissions). We are proud to announce that we expanded this verification on a global basis for our calendar 2020 GHG emissions reported below. This also marks
the 4th year we will be reporting our greenhouse gas emissions in all 3 scopes. With work-from-home arrangements still widely prevalent, our offices are not
being used as much when compared to previous years, and in conjunction with our emission reduction efforts, we saw significant decrease in total emissions.

Global Global
Scope
Global 1
Scope
Scope
emissions
11 emissions
emissions Global Global
Scope
Global 2
Scope
Scope
emissions
22 emissions
emissions Global Global
Scope
Global 3
Scope
Scope
emissions
33 emissions
emissions
25,000 25,000
25,000 120,000 120,000
120,000 250,000 250,000
250,000
21,760 21,760
21,760 93,949 93,949
93,949
100,000 100,000
100,000
89,395 89,395
89,395 200,973 200,973
200,973
20,000 20,00018,449
20,000 18,449
18,449 200,000 200,000
200,000

80,000 80,000
80,000 76,092 77,141
76,092 77,141
76,092 77,141
15,000 15,000
15,000 150,000 150,000
150,000
60,000 60,000
60,000
10,000 10,000
10,000 100,000 100,000
100,000
40,000 40,000
40,000

5,000 5,000
5,000 50,000 50,000
50,000 38,540 38,540
38,540
20,000 20,000
20,000

0 00 0 00 0 00
2019* 2019*
2019*
2020* 2020*
2020* 2019* 2019*
2019* 2020 2020
2020 2019* 2019*
2019*
2020 2020
2020

MT CO2e MT
MTCO
CO22ee Location based
Location
Location
MT CObased
based
2
e MT
MTCO
CO
Market
ee
22
based
Market
Market
MT CObased
based
2
e MT
MTCO
CO22ee MT CO2e MT
MTCO
CO22ee

Location based reflects the average emissions intensity of the grid, based on the
location where energy is consumed.
Market based reflects the emissions from the electricity purchased by ADP.

Fleet
As part of our commitment to reduce carbon emissions, we are updating our vehicle fleet with fuel-efficient vehicles. We currently have 81 charging ports across
13 locations, supporting over 200 registered users across the U.S., with offerings also in Spain, Australia, the UK, Italy and France.

* 2019 data has been updated from previously reported numbers to reflect independent, third-party verification of U.S. GHG emissions. After 2019, we expanded our verification scope globally and in doing
so we obtained additional empirical data related to certain international facilities. As such, our 2020 figure includes certain emissions that are not represented in our 2019 figure.

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Waste Management

We are re-imagining how we do everything, including what we do with our waste streams. We have a long history of
minimizing the waste we produce by promoting recycling and utilizing reusable and sustainable goods. Moving forward,
we will continue to investigate new diversion methods to reduce what we send to landfills. Furniture Donations in Northern
New Jersey
Our commitment to landfill diversion In calendar 2020, we closed multiple offices
Over the last six years, ADP has diverted 31,000 tons of waste from Electronic waste in New Jersey as part of our efforts to
landfills. Below are some of the ways we’re reducing the trash we send
Waste diversion and minimizing environmental impact are cornerstones of our consolidate our office space. Furniture from
to landfills. all these offices were collected and donated
sustainability program. Managing our electronic waste (e-waste) represented
a unique opportunity to advance both of these priorities. We are proud of our to Habitat for Humanity and Eva’s Village,
Donations e-waste recycling program and recycling our electronics across all our opera- where items went directly to their facilities.
tions. To accomplish this, ADP partners with an electronic waste recycler and
When closing office space, there is often excess furniture that ADP can no Included in this donation were tables, chairs,
reseller to reuse or recycle our electronic waste components. From anywhere
longer use. Instead of sending it to the landfill, we find organizations that
in our operations, the process is the same: each piece of equipment is collected, filing cabinets and office supplies.
can use the office furniture and donate it to them. Since 2015, we’ve donated
counted, certified and responsibly disposed. Prior to the recycling process, all
almost 18,000 total items to partnering organizations, helping those in need
data is wiped from the electronics to protect privacy and confidentiality.
and reducing our waste.
In calendar 2020, ADP recycled 147 tons of electronic waste.

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Paper Plastic, aluminum and glass recycling

Since our core business revolves around payroll and HR services, paper usage All ADP buildings include designated recycling containers and we encourage all
has historically been a significant component of our environmental footprint. associates to manage their waste by using the proper receptacle responsibly. In
Waste paper recycling in
After recognizing the opportunity to reduce usage for both our clients and 2020, we introduced new, universal signage across our offices that encourage Hyderabad, India
our own business, we started to offer digitized services and launched paper everyone to recycle and managed to recycle a total of 2,250 tons of material.
reduction initiatives. Within North America, approximately 85 percent of ADP India received a certificate of
clients were paperless in 2020. appreciation for participating in the WOW
Cafeteria sustainable products “Wellbeing Out of Waste”—Paperboards
In addition, ADP introduced an environmental footprint objective into our
annual bonus plan design for executive officers. We have initially targeted Per our policy, ADP requires our cafeterias and bistros to use sustainable prod- and Specialty Paper Division CSR recycling
an enterprise-wide client paper reduction initiative for fiscal year 2022. ucts whenever possible. Disposable serviceware is made from biodegradable program. In 2020, we recycled over 4.5 tons
materials and cutlery is made from recycled plastics. Three of our cafeterias of dry waste materials.
Finally, we introduced introduced the “All Shred” program. Through this pro- have food waste pulping machines, reducing our waste volume. We continue
gram, we partner with a vendor to shred and recycle 100% of the paper placed to prohibit all Styrofoam products.
in their secure containers at our office locations and print centers. In 2020, we
shredded and recycled over 1,600 tons of paper. We also introduced a “Print on
Demand” initiative that helps reduce wasted paper from redundant or unneces-
sary printing jobs by providing associates a second opportunity to review what
they want to print directly at the print station.

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Green initiatives

Pursuing LEED certifications Eco-friendly office supplies

As part of our efforts to reduce the environmental impact of our offices and Our offices in Europe, the Middle East and Africa (EMEA) are partnering with
operations, we are pursuing LEED certification (or equivalent) at some of our Staples to replace all stationery and cleaning products with environmentally
new buildings and will continue to seek such certification wherever it is feasi- friendly and recycled products. We hope to bring this program to offices across
ble to do so. our operations in the near future.

Renewable energy Water Safety

We investigate opportunities to purchase renewable energy wherever it is As our workforce gradually returns to the office, it is important that we ensure
economically and geographically viable. Our operations in Barcelona, Spain our buildings can provide safe and accessible necessities to our associates. All
operated on 100 percent renewable energy solar supply for the second con- ADP offices have a water safety program and protocols in place, providing our
secutive year. In addition, 100 percent of electricity for ADP’s offices in the associates with access to safe water, sanitation and hygiene.
Netherlands is provided by wind energy. We will continue to investigate
where we can use renewable energy to further reduce our emissions.

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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 continue to rationalize our data center network as we offload some ADP- Efficiency upgrades
hosted workloads. We have decommissioned 24 data center facilities since
2015 and plan to rationalize another 4 through 2022, contributing to a reduc- Our data center in Elk Grove Village, IL recently received significant upgrades
tion in carbon footprint to its cooling system. Acquired in 1996, the facility was operating to capacity,
however the cooling infrastructure was struggling to meet demands. Utilizing a
ADP’s average data center Power Usage Effectiveness (PUE) increased slightly 3-cell rooftop cooling tower as part of the new system, we adopted mechanical
from 1.65 to 1.69 between 2020 and 2021. However, in 2021 we were able to cooling which provides continuous, nonstop cooling whenever necessary. This
reduce the energy consumed by our data centers by 8 percent from the same upgrade both improved the data center’s overall resiliency by mitigating risk from
time last year through various IT and hardware upgrades. potential equipment failure and greatly increased its energy efficiency. This new
cooling system often runs well below its capacity, offering increased mechanical
efficiency. This increased efficiency reduces the energy we consume and results
in cost savings.

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GRI Index
GRI Disclosure Title Source

102-1 Name of the organization Automatic Data Processing, Inc.

102-2 Activities, brands, products and services Products and services

102-3 Location of headquarters One ADP Boulevard, Roseland, New Jersey, 07068

102-4 Location of operations 2021 10-K and also our list of worldwide locations

102-5 Ownership and legal form 2021 Proxy Statement

102-6 Markets served 2021 10-K

102-7 Scale of the organization 2021 10-K

102-8 Information on employees and other workers View the Section

102-9 Supply chain View the Section

102-14 Statement from senior decision-maker View the Section

102-15 Key impacts, risks and opportunities 2021 10-K

102-16 Values, principles, standards and norms of behavior View the Section

102-17 Mechanisms for advice and concerns about ethics Ethics Helpline

102-18 Governance structure 2021 Proxy Statement

102-19 Delegating authority View the Section

102-20 Executive-level responsibility for economic, environmental and social topic View the Section

102-21 Consulting stakeholders on economic, environmental and social topics View the Section

102-22 Composition of the highest governance body and its committees 2021 Proxy Statement

102-23 Chair of the highest governance body 2021 Proxy Statement

102-24 Nominating and selecting the highest governance body 2021 Proxy Statement

102-25 Conflicts of interest 2021 Proxy Statement

102-27 Collective knowledge of highest governance body View the Section

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GRI Index
GRI Disclosure Title Source

102-28 Evaluating the highest governance body’s performance View the Section and also 2021 Proxy Statement

102-29 Identifying and managing economic, environmental and social impact View the Section

102-30 Effectiveness of risk management process View the Section

102-31 Review of economic, environmental and social topics View the Section

102-32 Highest governance body’s role in sustainability reporting View the Section

102-33 Communicating critical concerns View the Section

102-35 Remuneration policies 2021 Proxy Statement

102-38 Annual total compensation ratio 2021 Proxy Statement

102-40 List of stakeholder groups 2021 Proxy Statement

102-42 Identifying and selecting stakeholders 2021 Proxy Statement

102-43 Approach to stakeholder engagement 2021 Proxy Statement

102-44 Key topics and concerns raised 2021 Proxy Statement

102-45 Entities included in the consolidated financial statements 2021 10-K

102-46 Defining report content and topic boundaries View the Section

102-47 List of material topics View the Section

102-48 Restatements of information 2021 10-K

102-53 Contact point for questions regarding the report [email protected]

102-55 GRI content index View the Section

201-1 Direct economic value generated and distributed 2021 10-K

201-2 Financial implications and other risks and opportunities due to climate change View the Section

201-3 Defined benefit plan obligations and other retirement plans See Note 10 in 2021 10-K

203-1 Infrastructure investments and services supported View the Section

203-2 Significant indirect economic impact View the Section

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GRI Index
GRI Disclosure Title Source

204-1 Proportion of spending on local suppliers View the Section

301-1 Materials used by weight or volume View the Section

302-1 Energy consumption within the organization View the Section

302-4 Reduction of energy consumption View the Section

305-1 Direct (Scope 1) GHG emissions View the Section

305-2 Energy indirect (Scope 2) GHG emissions View the Section

305-3 Other indirect (Scope 3) GHG emissions View the Section

305-5 Reduction of GHG emissions View the Section

306-2 Waste by type and disposal method View the Section

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees View the Section

401-3 Parental leave View the Section

403-2 Hazard identification, risk assessment and incident investigation View the Section

403-3 Occupational health services View the Section

403-5 Worker training on occupational health and safety View the Section

403-6 Promotion of worker health View the Section

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships View the Section

404-1 Average hours of training per year per employee View the Section

404-2 Programs for upgrading employee skills and transition assistance programs View the Section

404-3 Percentage of employees receiving regular performance and career development reviews View the Section

405-1 Diversity of governance bodies and employees Page 6 and Page 24

406 Non-discrimination management approach Code of Business Conduct & Ethics

413-1 Operations with local community engagement, impact assessments and development programs View the Section

415-1 Political contributions View the Section

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SASB Disclosure
Our responses to the SASB disclosures were written in an attempt to include as much of the requested information as possible. This report is a continued step in our SASB journey and in
some instances, only partial information is available at this time. We look forward to reporting more comprehensively under this framework in the years ahead.

Topic Accounting Metric Disclosure Code

Environmental Footprint of (1) Total energy consumed, Please see ADP’s Energy and Greenhouse Gas Reductions and Data Centers sections of this report. TC-SI-130a.1
Hardware and Infrastructure (2) percentage grid electricity,
(3) percentage renewable
Data Privacy and Freedom Description of policies and practices The collection, storage, hosting, transfer, processing, disclosure, use, security, retention and destruction of personal information required to provide our services is done in TC-SI-220a.1
of Expression relating to behavioral advertising compliance with federal, state and foreign privacy, data protection and cyber security laws.
and user privacy
We are committed to respecting our users’ choices regarding their personal data. Only in rare circumstances, as described in our BCR, will we process user data for a legitimate
secondary purpose. We do not transfer personal data to third-party providers other than to perform ADP services, after they have contractually agreed to follow our privacy
principles. Further our products do not target children.

ADP does not have a unique retention schedule based on data or data types due to their varied nature across business units. To learn more, please see our Global Records
Information Management Program.

For more information on the scope and implementation of our practices related to user privacy, please see ADP’s Privacy page.

For more information on our Binding Corporate Rules (BCR) regarding the collection, retention, protection and usage of personal data, please see ADP’s Global Privacy Policy.

Number of users whose information ADP does not currently track this information. TC-SI-220a.2
is used for secondary purposes
Total amount of monetary losses Please see ADP’s 10-K and 10-Qs for a description of any material monetary losses as a result of legal proceedings associated with user privacy. TC-SI-220a.3
as a result of legal proceedings
associated with user privacy
(1) Number of law enforcement Please see our 10-K and 10-Qs for a description of any materials requests from law enforcement. TC-SI-220a.4
requests for user information,
(2) number of users whose informa-
tion was requested,
(3) percentage resulting in disclosure

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SASB Disclosure
Topic Accounting Metric Disclosure Code

Data Security (1) Number of data breaches, While ADP maintains and continually enhances its global security program, including extensive business, system, and network security controls and processes, issues that ADP TC-SI-230a.1
(2) percentage involving personally characterizes as security incidents do occasionally occur. Such security incidents do not necessarily constitute security breaches as defined by law. ADP’s policy requires the
identifiable information (PII), prompt reporting of all such security incidents, and appropriate investigation and evaluation to ensure that all incidents are addressed timely and effectively and in accordance
(3) number of users affected with ADP policy and applicable legal requirements. All issues to date have been limited in scope and have included, for example, hard copy or electronic misdeliveries of client
information.

Given today’s threat landscape, all large organizations are targeted by cyberattacks. ADP’s security program is designed to prevent or detect such attempts via ADP’s security
intelligence platform, while leveraging partnerships with law enforcement and threat intelligence organizations to enhance our capabilities. ADP’s incident response process
is initiated during any identified attempt.

Within ADP’s global security program, comprehensive enterprisewide policies and procedures are in place for managing, tracking and reporting security incidents. ADP’s security
policies require logging of all actual security incidents reported to ADP by its associates, clients or other third parties. Once a security incident is reported, ADP’s incident response
process is designed to ensure that all incidents are addressed in a timely and effective manner and are in accordance with ADP security policies, procedures and legal requirements.

When necessary, procedures for notifying clients without undue delay, as well as employees and all other parties who may be impacted by the incident, are initiated and
appropriate remedial actions are taken.

For more information please see our disclosure on Incident Management in our Data Security page.

Description of approach to ADP policy requires our management to promptly take appropriate actions and commit sufficient resources to reduce unacceptable loss exposures to acceptable levels. To meet TC-SI-230a.2
identifying and addressing data this objective ADP has an operational risk management framework and has deployed supporting procedures and tools across the enterprise. ADP Operational Risk Management
security risks, including use of is responsible for maintaining the framework while integrating with Enterprise Risk Management for aggregation and escalation. The ADP Executive Committee provides
third-party cybersecurity standards operational risk governance through the Executive Security Council, which is chaired by the Chief Security Officer and includes the CEO, President, COO, CFO, CAO, CIO, CHRO,
General Counsel, head of our Global Shared Services and head of our Global Product and Technology Organization.

The ADP operational risk management framework is based on the following industry standards:

• Overall Risk Process: Enterprise Risk Management–Integrated Framework (COSO-ERM); ISO 31000: 2009 Risk Management—Principles and Guidelines; The Risk IT Framework
(ISACA); COBIT 5 for Risk (ISACA); National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF).

• Risk Analysis Approach: The Open Group Risk Taxonomy Standard (O-RT); The Open Group Risk Analysis Standard (O-RA).

We are focused on ensuring that we are safeguarding and protecting personal and business information and client funds, and we devote significant resources to maintain and
regularly update our systems and processes. ADP’s vendors must meet our data security and privacy standards. Our vendor assurance process enables ADP to assess our vendors
prior to entering into a contract with them. Our vendors are contractually required to comply with ADP’s privacy principles.

For more information please see our Data Security page.

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SASB Disclosure
Recruiting and Managing a Employee engagement as a percent Please see the Training and Development on page 29 of this report. TC-SI-330a.2
Global, Diverse and Skilled
Percentage of gender and racial/ Please see the Diversity, Equity & Inclusion section on page 21 of this report. TC-SI-330a.3
Workforce
ethnic group representations for
(1) management, (2) technical staff
and (3) all other employees
Managing System Risk Number of (1) performance issues ADP serves over 920,000 clients in more than 140 countries through an array of products and services that meet our clients’ unique human resource and compliance needs TC-SI-550a.1
and (2) service disruptions; (3) total across the globe. While rare, there are times when our products may experience temporary, unplanned service disruptions due to unforeseen circumstances. Typically, these
customer downtime outages are limited to one targeted region, product or country and do not impact the majority of our clients.

Description of business continuity ADP is committed to keeping our services and operations running smoothly to provide our clients with the best service possible. It’s our priority to identify and mitigate the TC-SI-550a.2
risks related to disruptions of technological, environmental, process and health risks that may interfere with the services we provide to our clients. For this reason, we have created an integrated framework
operations that lays out our mitigation, preparedness, response and recovery process.

For more information, please see our Business Resiliency Fact Sheet as well as the risks outlined in our 10-K and our proxy statement.

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United Nations Sustainable Development Goals Index

SDGs Definition How ADP Contributes

2.1: End hunger and ensure access by all people to safe, Food donations: We make sizable donations through our ADP Foundation to areas with food insecurities and ensure our associates and their communities have
nutritious, and sufficient food all year round access to quality food. Many associates use their volunteer time to support organizations whose mission is to fight hunger.

3.7: By 2030, ensure universal access to sexual and Fertility management: LGBTQ and single parent inclusive support for access to reproductive health services.
reproductive health-care services Adoption and surrogacy reimbursement program: Associates can receive reimbursement towards qualifying costs of adopting a child or arranging a surrogate.

Internships: To fill our pipeline with the best and brightest talent, we have established enterprise-wide, internship programs.

4.4: By 2030, substantially increase the number of On-demand tutoring: Formerly known as the Homework Connection, this program affords associates up to 5 hours of free tutoring services per month for
youth and adults who have relevant skills their dependents.
Scholarships: Supporting education through scholarships for children and giving to key education partners.

Community support: ADP provides philanthropic support to organizations that deliver resources to families impacted by domestic violence and socio-economic
5.1: E
 nd all forms of discrimination against all inequalities.
women and girls everywhere
Patterns of unconscious bias training: Our recruiters are trained and equipped to uncover their individual unconscious biases during the hiring process.

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United Nations Sustainable Development Goals Index

SDGs Definition How ADP Contributes

5.4: Recognize and value unpaid care and domestic

work through the provision of public services,
Back-up care program: For a small co-pay, associates who work 20 hours or more have access to 10 back-up care days each year, with high quality care provided by
infrastructure and social protection policies and
Bright Horizons.
the promotion of shared responsibility within the
household and the family

5.5: E
 nsure women’s full and effective participation and
Advancing women in leadership (AWL): This program is designed to fill our pipeline of future executives in a way that is equitable and reflective of the workforce
equal opportunities for leadership at all levels of
population.
decision-making

Diversity, equity and inclusion dashboard: With this tool, our clients can quantify and track their own diversity data and compare it to similar companies and
local populations through ADP’s industry-leading workforce benchmarks.

5.B: Enable and promote empowerment through I.T. Empower BRG: Our women in technology BRG, providing training and guidance to women seeking to advance their career in technology.
Advance women in S.T.E.M.: With women being under-represented in STEM fields, ADP launched numerous initiatives and programs that provide opportunities
and encouragement for women looking to enter the field.

Supplier diversity: The primary goal for our supplier diversity program is to proactively identify, build relationships with and purchase goods and services from
9.2: Promote inclusive and sustainable industrialization
qualified diverse enterprises.

Fostering under-represented talent: ADP’s partnerships with Historically Black Colleges and Universities, Hispanic Serving Institutions and other diverse
10.2: B
 y 2030, empower and promote the social, campuses engage students at all stages of the student lifecycle to help develop a diverse talent pipeline.
economic and political inclusion of all, irrespective
Multiple Pathways Initiative: Aligned with OneTen, this program identifies best practices to promote skills-based hiring and makes recommendations for
of age, sex, disability, race, ethnicity, origin, religion
participating organizations, like ADP to promote these practices and other talent acquisition processes that increase diversity.
or economic or other status
Diversity & Inclusion Talent Task Force: This program was developed to ensure equitable representation at all leadership levels for under-represented talent.

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United Nations Sustainable Development Goals Index

SDGs Definition How ADP Contributes

Diverse slates and panels: ADP has leveraged diverse slates, both gender and under-represented groups, to improve DE&I for years at the leadership level, and has
10.4: A
 dopt policies, especially fiscal, wage and social expanded the use of diverse slates to all job levels.
protection policies, and progressively achieve
greater equality ADP Foundation: We continually investigate new ways to use our business to meaningfully improve people’s lives, and through the this foundation we are
partnering and investing in organizations that help fight inequality around the world.

Investing in greenhouse gas reductions: ADP continues to invest in energy reduction initiatives that improve efficiency and decrease our emissions.
13.2: I ntegrate climate change measures into
LEED certifications: In addition to our existing LEED certified buildings, we are pursuing LEED certification (or equivalent) at a selection of our new buildings.
national policies, strategies and planning
Purchasing renewable energy: Wherever economically and geographically viable, we investigate opportunities to purchase renewable energy.

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