Addressing the Climate Challenge
Water is integral to the health of communities everywhere. Our products and solutions help address various effects of climate change on the water cycle, such as shifts in precipitation patterns due to a warming atmosphere.
While the ADS business model directly addresses water-related climate risks, we are also focused on making our internal operations, procedures and policies more responsive to this global challenge. We are committed to monitoring and managing climate-related risks and opportunities related to our business strategy, product solutions and operations.
Our Climate Ambition
We have committed to setting and achieving Science Based Targets for reducing greenhouse gas emissions, along with broader efforts to improve efficiency and reduce environmental impact across our company. We back this up with robust data collection.
ADS absolute scope 1 & 2 GHG emissions decreased 9.0% over Fiscal 2022 baseline (Market Based). This decrease is primarily attributable to energy reductions across the manufacturing network and greening of the grid.
We are committed to the SBTi for greenhouse gas emissions in line with limiting global temperature rise to 1.5°C. In Fiscal 2025, validated ADS' science-based targets for GHG emissions.
In Fiscal 2025, ADS continued to track energy and emissions data from our U.S. and Canada operations on a facility level.
Approximately 99% of our energy is consumed in the manufacturing processes. ADS continues to evaluate opportunities to reduce our energy consumption through adopting more efficient technologies throughout our manufacturing footprint and reducing scrap and improving equipment effectiveness.
In Fiscal 2025, ADS energy usage decreased 9% over Fiscal 2022 baseline. Energy intensity (GJ/revenue) was nearly flat year over year.
ADS continues to evaluate opportunities to reduce our energy consumption through adopting more efficient technologies throughout our manufacturing footprint, including through the reduction of scrap and improvements to equipment efficiency.
As a participant in the Smartway program established by the United States EPA, ADS is making our freight transportation more fuel-efficient by continuously optimizing vehicle use, fleet routes and shipping methods to meet our efficiency goals.
Fuel economy was flat in Fiscal 2025 compared to the prior year as we believe we are near peak MPG with our current fleet assets. Through our fleet modernization effort, ADS put 249 new trucks into service since 2024 which will allow us to retire older less efficient models. The new trucks have automatic manual transmissions that employ predictive shifting to deliver peak performance and fuel economy.
We believe there is further opportunity to improve fleet efficiency through adoption of additional technology solutions such as active tire monitoring and self-inflation capabilities, managed maintenance programs and training to reduce idle time, improve MPG and maximize engine efficiency.
Climate-Related Risks and Opportunities
Managing Climate-Related Risks
The transition to a low-carbon economy can raise several risks for our industry. As such, preparing for these potential impacts is important to our overall business.
From a regulatory standpoint, the potential introduction of CO2 prices, limits on emissions and stricter environmental standards may introduce additional costs to our manufacturing processes and to our fleet. Further, potential shifts in the demand and supply of our key raw materials, including recycled and virgin plastic, could impact the cost of doing business.
In the short term, the physical risks associated with climate change, such as extreme weather events and changes to weather patterns may lead to disruptions in our supply chain, the transportation of our products and potential slowdowns in revenue. Over the long term, however, our products and services can protect communities against weather risks.
Seizing Climate-Related Opportunities
We believe our water management solutions can help mitigate some of the most damaging effects of climate change. Our stormwater management solutions are paramount to reducing water runoff, improving water quality and preserving water in communities facing extreme weather events. We can help governments, contractors and engineers reduce their carbon footprints with more energy efficient solutions.
Our manufactured products are more energy efficient than traditional materials, requiring less heavy machinery during installation and fewer deliveries per jobsite. Most importantly, ADS' plastic pipes have a lower manufacturing carbon footprint than traditional reinforced concrete and corrugated steel pipes.
Finally, the transition to a low-carbon economy also presents meaningful operational opportunities for ADS. We can improve efficiency through reducing downtime and minimizing scrap. Our logistics and transportation initiatives are increasing payload efficiency and reducing fleet miles per gallon. We can not only reduce our carbon footprint, but also cut future operating costs.
Task Force on Climate-related
Financial Disclosure (TCFD) Report
Building upon our broader position on climate change, in this section we outline ADS’ approach and performance in relation to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), specifically, aligned with its four key pillars: strategy, metrics and targets, governance and risk management.
View the TFCD ReportStormwater Events
As the climate warms, the amount of water available to be stored in the atmosphere increases, causing more intense precipitation and more frequent severe storms. As shown in the following chart, the frequency of billion-dollar stormwater management related disasters, particularly severe storms, is increasing. In 2024, there were 25 stormwater-related natural disasters in the United States that cost an estimated $176 billion. If we look back twenty-two years, there were just six events in 2003.
ADS’ stormwater products help communities keep their residents safe from flooding and other problems associated with increased rainfall. We believe that by taking proactive steps, we can increase our positive impact through enhancing stormwater management in communities nationwide.
America’s Climate Leaders, USA Today
USA Today included ADS on its annual list of America’s Climate Leaders for our efforts to reduce greenhouse gas emissions. Recycling more than a half-billion pounds of plastic every year helps ADS reduce emissions by more than 630 million pounds — equivalent to taking 61,000 cars off the road.