Climate Change Data

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