Sustainability Report

Water is the world’s most precious resource. As an industry leader, Advanced Drainage Systems is committed to protecting and managing water by providing sustainable water management solutions that safeguard the environment and build resiliency in communities nationwide. 

The last several years have shown a secular trend of large-scale, water-related climate events increasing in frequency, duration and intensity. According to the National Centers for Environmental Information, there were 27 large-scale storm events in 2023, costing an estimated $88 billion. By comparison, if we look back twenty years, there were just six events in 2003. These severe storms, hurricanes, floods and droughts have devastating consequences for our communities. As storms increase in frequency and intensity, and climate patterns continue to change, ADS’ water management solutions help reduce flooding, recharge aquifers, improve food security, mitigate the risk of water scarcity and ensure quality of life in communities.

Local stormwater management remains a concern for many Americans. Earlier this fiscal year, we surveyed a representative group of American adults, and found that over half of the respondents are concerned about the stormwater management infrastructure in their communities. One out of five experienced flooding in their homes. The survey also made clear that Americans are not just worried about protecting their homes, but also ensuring stormwater management practices are environmentally sustainable and improving quality of life in their communities.

At ADS, we are creating environmentally sustainable water management solutions. As one of the largest plastic recyclers in North America, we remove over half a billion pounds of recycled plastic from the waste stream each year, incorporating it into products designed to last decades. Further, we are continually working to increase our usage of recycled material, with the goal of reaching one billion pounds purchased annually by Fiscal 2032, nearly doubling the amount of recycled plastic we purchase today. Not only is using recycled plastic an economically viable solution, but it also lowers our carbon footprint.

In Fiscal 2024, we continued to make progress on ADS’ commitment to sustainability. We became a signatory to the UN Global Compact, joining the world’s largest corporate sustainability initiative. We implemented a supplier code of conduct, providing a framework for our suppliers to maintain the highest ethical standards in conducting business. Additionally, we implemented a biodiversity policy to serve as a comprehensive outline for implementing the conservation and advancement of biodiversity into ADS’ operations.

In this report, we have added new disclosures regarding this progress, as well as new disclosures on waste, landfill diversion and materials included in our manufactured products. In addition, for the first time, we sought limited assurance on our reported scope 1 and 2 greenhouse gas emissions. We believe these updates further underpin our commitment to sustainable business practices and transparency in reporting.

I thank you for taking the time to learn more about the great work ADS is doing to integrate sustainability throughout the business, reduce our environmental impact and increase our positive contributions to society. As always, we look forward to further building on the sustainability programs we have established in the years to come.

Read remarks from our Sustainability Chairperson, Michael B. Coleman