UKG Inc.
Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Environmental Sustainability
- Employee Engagement
- Community Philanthropy
- Diversity, Equity, and Inclusion
Environmental Achievements
- Reduced office-based carbon footprint through office space consolidation, updated procurement and travel policies favoring virtual events, hybrid work model, smart printers, and increased use of virtual servers.
- Increased energy efficiency in new workspaces through energy-efficient appliances, programmable HVAC units, and sensor-lighting programs.
Social Achievements
- Established an Employee Relief Fund (later PeopleInspired Giving Foundation) raising over $500,000 to provide COVID-19-related relief to employees and their families.
- Launched the Equity at Work Council to promote diversity, equity, inclusion, and belonging (DEI&B).
- Created several Diversity Networks (Black Upcoming Individuals in Leadership and Development, PRIDE, Female Inclusion, Resilience, and Excellence, UKG VETS, Cancer Awareness Resources Education & Support, Accessibility and Disability Allies Partner Together) to foster inclusivity.
- Maintained a 95% employee retention rate during the merger and pandemic.
- Incurred no job losses due to COVID-19.
Governance Achievements
- Developed and implemented ethics and compliance training programs with 100% employee completion rate, covering areas such as anti-money laundering, business continuity, code of conduct, data privacy, and workplace harassment prevention.
Climate Goals & Targets
Environmental Challenges
- Navigating a corporate merger amidst a global pandemic and near-100% remote work status.
- Ensuring business continuity and employee safety during COVID-19.
- Maintaining financial stability while supporting employees and customers.
Mitigation Strategies
- Developed a plan to maintain business operations without job losses.
- Implemented a swift transition to remote work for non-essential employees.
- Established COVID-19 operating and advisory committees to manage the pandemic response.
- Provided financial concessions and support to customers.
- Enhanced product offerings to help customers navigate the pandemic's disruptions.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Emphasis on CSR principles and modern slavery in vendor RFP documents
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: CDP, EcoVadis, SEDEX
Sustainable Products & Innovation
- Cloud-based solutions reducing paper usage and energy consumption for customers.
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
- E-Waste
- Waste
- Diversity, Equity, Inclusion, and Belonging
- Talent and Culture
- Customer Satisfaction and Success
- Philanthropy and Volunteering
- Governance and Business Ethics
- Privacy and Data Protection
- Cybersecurity
Environmental Achievements
- Created programs to support sustainable and renewable business practices, such as waste and energy management.
- Completed a comprehensive audit of 29 of our largest global offices, representing approximately 88% of global office-based U Krewers.
- Implemented a centralized waste-collection pilot program in Weston and Montreal office locations.
- Recycled approximately 420 pounds of toxic metal waste and donated over $45,000 through a partnership with Urban Mining.
Social Achievements
- Established the Chief Belonging, Diversity, and Equity Officer as a new executive-level role.
- Launched a multimillion-dollar pay equity initiative (UKG Close the Gap Initiative).
- Created the UKG Elevate program to build a diverse talent pipeline.
- Expanded companywide employee resource groups (ERGs).
Governance Achievements
- Formed an ESG Steering Committee.
- Established an ESG Leadership Team.
- Established an ESG Cross-Functional Working Group.
- Introduced a new Code of Conduct and corporate policies.
- Published a Human Rights Policy.
Climate Goals & Targets
Short-term Goals:
- Complete first global GHG inventory in 2022.
- Expand waste assessment to include more UKG locations in 2022.
- Increase on-site vendor reviews in 2022.
Environmental Challenges
- COVID-19 pandemic impacting millions of people across the world and restricting on-site access.
- Need to expand GHG emissions inventory to include a larger number of facilities and other business operations.
- Need to expand waste assessment to include more UKG locations.
- Need to increase on-site vendor audits.
Mitigation Strategies
- Phased return to office plan.
- Initial GHG inventory data collection and management process begun in 2021, with plans to complete a global inventory in 2022.
- Plans to expand waste assessment in 2022.
- Plans to increase on-site vendor reviews in 2022.
- Investing in carbon-output measurement capabilities to track and reduce carbon footprint.
Supply Chain Management
Responsible Procurement
- Third-Party Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Increased customer demand for ESG information
Opportunities
- Cloud-based solutions reducing operating costs and eliminating paper for customers.
- Attracting and retaining top talent.
- Developing energy-efficient products and services.
Reporting Standards
Frameworks Used: SASB, TCFD, UN SDGs
Certifications: ISO 27001, ISO 27017, ISO 27018
UN Sustainable Development Goals
- SDG 3
- SDG 4
- SDG 5
- SDG 8
- SDG 10
- SDG 12
- SDG 13
- SDG 16
UKG's initiatives contribute to these goals through various programs and policies related to health and well-being, education, gender equality, economic growth, reduced inequalities, responsible consumption and production, climate action, and peace, justice, and strong institutions.
Awards & Recognition
- Top HR Product of the Year
- AnitaB.org Top Companies for Women Technologists Leader
- PEOPLE magazine’s Companies That Care list
- IDG Insider Pro and Computerworld Best Places to Work in IT
- Disability:IN Disability Equality Index (perfect score)
- Fortune Best Workplaces for Millennials
- Leader in the Nucleus Research Workforce Management Value Matrix
- Nine TrustRadius Top-Rated Awards
- Fortune’s 100 Best Companies to Work For
- Fortune’s Best Workplaces in Technology
- Human Rights Campaign Foundation Corporate Equality Index (perfect score)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:178,238 metric tons of carbon dioxide equivalent
Scope 1 Emissions:1,514 MTCO²e
Scope 2 Emissions:8,774 MTCO²e
Scope 3 Emissions:167,950 MTCO²e
Total Energy Consumption:117,266 Gigajoules (GJ)
Water Consumption:103.7 thousand cubic meters (m3)
Waste Generated:10,542 metric tons
ESG Focus Areas
- Climate Change
- E-Waste
- Waste
- Diversity, Equity, Inclusion, Belonging, and Social Impact
- Talent and Culture
- Customer Satisfaction and Success
- Governance and Business Ethics
- Privacy and Data Protection
- Cybersecurity
Environmental Achievements
- Reduced office footprint in Weston by 88,000 square feet, resulting in an estimated annual electricity savings of 1,700,000 kilowatt-hours (kWh) and a 25% reduction in GHG emissions.
- Recycled 31,141 pounds of e-waste, reducing 895.16 pounds of toxic metals in landfills and 43,394.85 pounds of carbon dioxide emissions.
- More than 90% of UKG customers were cloud-based, contributing to reduction of physical material and optimizing energy efficiency.
Social Achievements
- Launched the UKG Diversity Accelerator Program, supporting early-stage diverse-owned technology providers.
- Donated more than $4 million in direct financial support to over 170 nonprofit organizations.
- Launched the UKG Belonging and Engagement Center, resulting in a 158% increase in employee resource group (ERG) membership.
- 83% employee engagement score from the annual employee engagement survey.
- Launched Unified Foundational Learning program, with 96% of senior executives participating in active discussions about DEI&B and social impact.
Governance Achievements
- 99% completion rate for Code of Conduct training.
- More than 96% of employees completed data privacy and security training.
- Maintained uptime rate of 99.75% for UKG products.
Climate Goals & Targets
Long-term Goals:
- Net zero greenhouse gas (GHG) emissions across the value chain by 2040.
Medium-term Goals:
- Reduce absolute Scope 1, 2, and 3 emissions 90% by 2040.
- Achieve Global Gender Leadership Representation of Women of 44% by 2026.
- Achieve Global Gender Representation of Women in Technology Roles of 38% by 2026.
- Achieve 50% increase in Employee Giving and Volunteering Hours by 2026.
- Double supplier relationship management program participants by 2025.
Short-term Goals:
- Reduce absolute Scope 1 and 2 emissions 34% by 2030.
- Reduce absolute emissions from purchased goods and services and capital goods 20% by 2030.
- Improve the current CSAT rate by 5%.
- Increase number of active UKG Insiders by 10% in 2023.
- Maintain or increase active UKG Community member rate (67%)
Environmental Challenges
- Global climate change
- Talent shortage
- Maintaining high customer satisfaction scores
Mitigation Strategies
- Commitment to Science-Based Targets initiative for GHG emissions reduction.
- Investing in DEI&B initiatives to attract and retain talent.
- Investing in customer experience programs such as UKG Launch and SuccessCare.
Supply Chain Management
Responsible Procurement
- All third parties must comply with laws, regulations, and professional standards; review and sign Third-Party Code of Conduct; undergo due diligence.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Increased customer expectations regarding climate change programs.
- Competition for talent based on ESG performance.
Opportunities
- Cloud-based solutions reducing customer energy consumption.
- Opportunities to attract and retain talent through strong ESG performance.
Reporting Standards
Frameworks Used: SASB, TCFD, GRI
Certifications: ISO 27001, ISO 27017, ISO 27018, SOC 2, SOC 3
Sustainable Products & Innovation
- Cloud-based solutions
Awards & Recognition
- America’s Greatest Workplaces for Diversity (Newsweek)
- Top Companies for Women Technologists (AnitaB.org)
- Perfect score on Corporate Equality Index (Human Rights Campaign Foundation)
- Perfect score on Disability:IN Disability Equality Index
- Brands That Matter (Fast Company)
- TrustRadius Tech Cares award
- Social Impact award (Ragan)
- Foundry’s Computerworld 2023 Best Places to Work in IT
- Forbes America’s Best Large Employers list
- Forbes World’s Best Employers list
- Google Cloud DevOps Award
- 100 Best Large Companies to Work For (Built In)
- Silver medal from EcoVadis
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Diversity, Equity, Inclusion, and Belonging (DEI&B)
- Social Impact
- Governance
- Supply Chain Management
- Privacy and Data Protection
- Cybersecurity
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Third Party Code (outlining expectations regarding anti-discrimination, modern slavery prevention, fair treatment, compensation and working hours, anti-corruption, confidentiality, intellectual property rights, privacy, grievance channels, workplace safety, environmental responsibility, and responsibly sourced materials)
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UNGC, UN SDGs
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- SaaS products and services, investment in cloud computing, virtual server expansion, and energy-efficient methods for data backup and data purging
Awards & Recognition
- Not disclosed