Primary: Real estate consolidation strategy to reduce leased real estate Scope 3 emissions by 30% by 2030 TransUnion has set a target to reduce Scope 3 GHG emissions from leased real estate by 30% by 2030 using 2019 as baseline. The real estate consolidation strategy is one of three stated mechanisms to achieve climate targets. The November 2023 transformation plan also explicitly includes reducing the company's facility footprint as part of the operating model optimization program.
▾ expand
12-year renewable energy partnership with Constellation Energy announced May 2023 In May 2023, TransUnion announced a 12-year contract with Constellation Energy Corporation to support new renewable energy production in the US, anticipated to reduce carbon emissions from energy use by more than 8,000 metric tons per year.
▾ expand
Board-approved transformation plan: operating model optimization and OneTru technology program On November 12, 2023, the Board approved a transformation plan comprising: (1) operating model optimization reducing global workforce and transitioning roles to GCCs ($205-215M one-time costs); and (2) final accelerated technology investment phase building OneTru platform ($150-160M). Total one-time costs $355-375M through end of 2025; expected annual savings of $120-140M and capex reduction from 8% to 6% of revenue.
▾ expand
Renewable energy purchases and Constellation Energy 12-year PPA to achieve Scope 1&2 net zero by 2025 TransUnion plans to achieve its target of operational net zero Scope 1 and Scope 2 GHG emissions by 2025 primarily through renewable energy purchases and renewable energy credits. In May 2023, the company announced a 12-year contract with Constellation Energy Corporation to support production of new renewable energy in the United States, anticipated to reduce carbon emissions from energy use by more than 8,000 metric tons annually. In 2023, TransUnion completed its second annual offset and renewable energy credit purchase for the year's emissions impact.
▾ expand
Board-approved transformation plan to optimize operating model and advance technology On November 12, 2023, TransUnion's Board approved a transformation plan expecting $355–$375 million in one-time pre-tax expenses from Q4 2023 through 2025, targeting $120–$140 million in annual savings and capex reduction from 8% to 6% of revenue. 2024 annualized savings reached ~$85 million.
▾ expand
Material weaknesses identified in internal controls over financial reporting as of Dec 31, 2023 Management determined internal controls over financial reporting were not effective as of December 31, 2023 due to two material weaknesses: (1) controls over interim goodwill impairment test, and (2) classification of costs between cost of services and SG&A. Resulted in restatement of Q3 2023 interim statements and revision of 2022 and 2021 annual figures.
▾ expand
Regulatory settlements with CFPB and FTC totaling $23M in October 2023 In October 2023, TransUnion settled two matters with federal regulators for $23M total: (1) CFPB/FTC consent order related to tenant/employment screening for $15M; (2) CFPB consent order on security freeze violations for $8M. Both settled in full by December 31, 2023.
▾ expand
Primary: Annual carbon offset purchases to mitigate residual unavoidable emissions For emissions TransUnion is unable to reasonably avoid, the company expects to mitigate its impact through annual offset purchases. In 2023, TransUnion completed its second offset and renewable energy credit purchase covering its emissions impact for the year. The company describes this as a residual mitigation tool used alongside renewable energy procurement and cloud migration.
▾ expand
Partnership with Constellation Energy for renewable energy in the U.S. In May 2023, TransUnion announced a 12-year contract with Constellation Energy Corporation to support production of new renewable energy in the United States, anticipated to reduce carbon emissions associated with energy use by more than 8,000 metric tons per year.
▾ expand
Primary: Cloud migration (Project Rise) to reduce energy intensity of technology infrastructure Since 2020, TransUnion has been executing Project Rise, a multi-phase global cloud migration expected to complete in 2024 at ~$240M total cost. The environmentally friendly cloud migration is one of the three stated mechanisms for achieving its 2025 net zero Scope 1 and Scope 2 targets. In November 2023, TransUnion announced OneTru, a follow-on initiative to consolidate all product platforms onto a single cloud-based operating system, which will further optimize data center posture and drive operational efficiencies.
▾ expand