How Deel built a report-ready emissions foundation across 150 countries

Background

Deel is a well-known global payroll and HR technology company. The company has more than 7,000 team members across 120 countries. It serves 40,000 customers in 150 countries, and is one of the fastest growing technology companies in the world.

As the company scaled, customers increasingly wanted to understand its environmental impact and how Deel’s sustainability profile aligned with their own goals. That customer demand prompted the business to begin measuring and preparing to publish its emissions. California’s SB 253 reporting requirements then provided a clear deadline and a practical framework for completing the work.

Deel began working with Sweep across two connected areas: climate risk reporting under California’s SB 261 framework and greenhouse gas emissions reporting under SB 253. 

Challenge

Preparing for SB 253 meant collecting and interpreting data from a wide range of sources, including business travel, cloud computing, energy, warehouses, data centers, leased assets, devices, merchandise, and information inherited through acquisitions.

The first reporting year was particularly complex. Deel needed to understand what SB 253 required, locate the relevant financial and operational records, map those records to emissions categories, and bring the data together across multiple teams. With several acquisitions in recent years, consolidating information across the wider organization added another layer of difficulty.

For its first year of reporting, Deel’s immediate priority was Scope 1 and Scope 2. But the business knew that the majority of its emissions would ultimately sit in Scope 3, particularly across cloud computing, leased assets and device procurement. However, creating a reliable Scope 1 and Scope 2 calculation was the essential first step toward meeting the SB 253 deadline and improving Scope 3 data over time.

Solution

Deel evaluated several providers before choosing Sweep. Sweep stood out for three reasons: its subject-matter expertise, the trust Deel had in its team, and strong value for the investment. Deel was confident Sweep could guide it through an unfamiliar regulatory process. During the evaluation, Sweep also showed that its platform could meet Deel’s data and reporting requirements at a competitive cost.

The first three to four months of the engagement focused on preparing Deel’s SB 261 climate risk framework. The following seven to eight months were dedicated primarily to its first carbon emissions calculation and preparation for SB 253 reporting.

The work brought together Policy, Risk, Compliance, Legal, Operations, Finance, and Accounting. While Nick Catino, Global Head of Policy coordinated the broader effort, Cathlene Belknap and Oana Olteanu from the Risk team handled much of the detailed work required to gather, interpret, and bring data into the platform.

Sweep helped Deel move from raw financial and operational records to a calculated, reportable emissions footprint. By the end of the process, Deel had completed its first Scope 1 and Scope 2 calculation and moved into final review ahead of California SB 253’s first reporting deadline.

Results

Through its work with Sweep, Deel established the foundation for its first SB 253 submission and moved from having no company-wide carbon baseline to a completed Scope 1 and Scope 2 calculation.

• First SB 253 reporting process established. Deel completed its first company-wide carbon emissions calculation and moved into final review ahead of California’s November 10 deadline.
• Scope 1 and Scope 2 data prepared for submission. Sweep supported Deel in collecting, calculating, and reviewing the data required for its first-year reporting.
• Scope 3 sources identified for future reporting. The initial assessment covered leased assets and offices, cloud computing, business travel, device procurement, merchandise, and data inherited through several acquisitions.
• Climate risk and emissions reporting connected. Deel completed its SB 261 climate risk framework while building the emissions data foundation required for SB 253.
• A repeatable annual process created. Having completed the most difficult first reporting cycle, Deel’s teams now have a clearer understanding of the data required and can work toward faster, more granular reporting in future years.