emeia financial services sustainability report 2014 · emeia financial services sustainability...
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EMEIA Financial Services Sustainability Report 2014Executive Summary
Contents
1 Welcome message
2 EY at a glance
4 Performance snapshot
6 Our clients
Banking Insurance Wealth and asset
management
10 Our people
Professional development Well-being Diversity and
inclusiveness
14 Our communities
Entrepreneurs Developing leaders Women Environment
Sustainability relies on the fine balance between economic, social and environmental factors.
From globalization to climate change and from the internet to increasing competition for resources, the scale and scope of sustainability is vast, complex and interrelated.
The challenge for today’s businesses is to address sustainability in a way that meets the current and future needs of their customers, employees, communities and the environment.
The FS industry has a critical role to play in making this happen across both public and private sectors.
Key considerations are:
TrustFollowing the financial crisis and reported scandals, trust remains low across the industry. In an era of increased transparency, FS organizations must do more than ever to protect and grow their reputation, by demonstrating socioeconomic value.
FinancingThe industry has a key role to play in helping to ensure that the transition to a low carbon economy is understood, financed and risk managed.
Many companies are growing their financial interests and investments in sustainable solutions, such as renewable energy, energy efficiency and clean technology.
Risk Increased risk management processes are needed in the post-financial crisis world. This is critical to identifying material, social and environmental risks, which are unpriced and unmanaged within investment portfolios, insurance coverage and financing decisions.
The FS sector is a fundamental component for a sustainable economy. By managing and facilitating capital and financial assets, the industry has the ability to shift economies onto a more sustainable footing.
We believe that, when providing services to customers, organizations need to increase transparency, simplify products and engage with all of their stakeholders.
And when investing and advising on capital expenditure, they must review portfolios and supply chains to ensure that environmental and social risks are managed properly. The overall pace of change is slow, however. Regulation and industry standards are key to accelerating it.
At EY, we’re committed to building a better working world and sustainability is key to this commitment.
We know that building a better working world means being part of the industry-wide conversation. More importantly, it means working out how to turn this conversation into positive actions. So, as well as reporting on our progress and ambitions, our 2014 Financial Services (FS) Sustainability Report aims to provide a platform for structured discussion on sustainability within the FS sector.
Looking at the three core sections of the report, I am deeply encouraged by EY’s work with our clients, our people and our communities. I am confident that we are supporting these groups to lay the foundations for increasingly sustainable growth across our industry.
Andy Baldwin, EMEIA FS Regional Managing Partner
Welcome. At EY, we’re very clear that pursuing and delivering sustainable development for our clients, the people who work for us and the communities we work in is of paramount importance as we move towards delivering our Vision 2020 strategy.
Sustainability in the financial services industry
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In today’s business environment, a concern for sustainability is no longer optional. The world faces increasing poverty and competition for resources, an expanding population and accelerating climate change. Our interest in delivering long-term success extends beyond our clients, to our people and our communities.
Sustainability is at the core of who we are, what we do and who we choose to interact with. Driving sustainable growth in the dynamic FS market demands the vision to see and act on issues from every angle. The FS sector is a fundamental component for a sustainable economy.
By managing and facilitating capital and financial assets, the industry has a critical role in ensuring that global markets meet present needs – without compromising the ability of future generations to meet theirs.
EY at a glance. EY’s purpose is building a better working world and it is behind everything we do. At the highest ambition, this means building confidence in the capital markets and driving sustainable growth in economies worldwide. We live this purpose daily. Engagement-by-engagement, client-by-client, on a relentless quest for “better working”.
Global headquarters
London
Countries we operate in
150
People worldwide
190,000
Offices
728
Global revenues
US$27.4b
Countries we operate in
13
People
8,528
Offices
69
EY Global EY EMEIA Financial Services (FS)
Scope of this report
* Countries Belgium, Channel Islands, France, Germany, Gibraltar, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Switzerland, United Kingdom
*
2
WorkforceFY14 FY13
Recruitment:Experienced hires 1,218 775*Graduates 1,201 901*
Internal transfers:Inbound 245 231Outbound 222 191Assignments within EMEIA FSO 69 76Attrition:Leavers 1,704 1,444*Turnover 21% 18%Alumni network:UK FS alumni network >3,500 3,300Employee engagement index: 63% 62%
Professional developmentFY14 FY13
Learning and development:
Average hours of training per employee
39 46*
Participants 8,886 8,059*Training hours 348,629 372,966*Leadership development:Number of employees promoted to partner
21 23
External hire partners 24 21Employees participated in international experiences
10% 12%
Community investmentFY14 FY13
Total community investment US$5.3m US$5m*Volunteering:Volunteers (1,325 15%) (993 13%)Total hours committed 6,240 5,602Hours donated per volunteer**
5 6
Partner commitment:Partners serving as directors/officers/trustees
9% 10%*
*Restatement due to refinement of measurement.
**In FY14, our volunteering and pro-bono services strategy focused on quality and relevant opportunities for our people. Therefore, the reduction in hours donated per volunteer is counterbalanced by the rise in the number of volunteers and the impact of each placement.
Operations FY14 FY13Number of employees: 8,528 7,727Countries 12 12
Locations 69 64*Full time 95% 95%Part time 5% 5%
Diversity (FY14)Female Male
Recruitment:Experienced hires 471 (39%) 747 (61%)Graduates 465 (39%) 736 (61%)Employee numbers:Partner/director 116 (16%) 631 (84%)
Senior manager 366 (30%) 848 (70%)
Manager 543 (37%) 917 (63%)Senior 1,059 (43%) 1,399 (57%)
Associate 1,218 (46%) 1,431 (54%)Learning and development:Average hours of training per employee
39 39
Participants 3,346 5,540Training hours 130,432 218,197Leadership development:Number of employees promoted to partner
4 (19%) 17 (81%)
External hire partners 3 (13%) 21 (87%)
Environmental performanceFY14
tCO2eFY13
tCO2e
Carbon emissions:Scope 1: Direct fuel usage 2,465 2,774*Scope 2: Office energy consumption
9,392 8,902*
Scope 3: Business travel 22,074 22,457*Total carbon emissions 33,931 34,133*Air travel:Total carbon emissions 18,292 19,269*
Total carbon emissions per FTE 2.23 2.50*FY14
GJFY13
GJEnergy usage by source:Electricity 89,500 89,868*Natural gas 29,623 29,740*Diesel 48 364*Total energy usage 119,171 119,972
Key statistics
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Our clients
Commitment
We advise our clients on how to meet their current needs without compromising the ability of future generations to meet theirs.
Performance
• Clients awarded us a score of 8.2/10 when asked how likely they were to recommend us to a colleague or friend
• EY was awarded the IPO 27001 (information security management system framework) compliance status
• We strive for 100% completion of mandatory ethics and compliance training for all our people
• 82% of our procurement contracts include a supplier code of conduct
External recognition
• Leading brand for sustainability services – Verdantix, since 2012
• Management Consultancies Association (MCA) – Social and Environmental Value Award
• Euromoney Islamic Finance Awards – Best Islamic assurance and advisory services
• Alternative Investment Audit and Advisory Firm of the Year – Luxembourg
Commitment
Whenever people join us – and however they progress their career with us – we ensure their EY experience lasts a lifetime.
Our people
Performance snapshot. We believe that everything we do should make the working world better than it was before. This is why we strive for continual improvement in every aspect of how we do business, our services and our interaction with others.
of our partners working in FS are female, a 1% increase on 2013. Our target for 2020 is 22%.
12%8.2/10
Clients awarded us a score of 8.2/10 when asked how likely they
were to recommend us to a colleague or friend
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Commitment
We are committed to fostering sustainable growth in areas where we can have the greatest impact.
Performance
• 13% reduction in air travel carbon emissions per full-time equivalent employee (compared to 2010 base year), exceeding our 12% reduction target for 2015
• US$5.3 million charitable donations were made across our markets
• 15% of our people undertook volunteering activities, exceeding our annual target of 12%
• 9% of our partners working in FS assume trustee and non-executive director roles with not-for-profit organizations
External recognition
• Connexing Certificate – Luxembourg was recognized for its contribution to sustainable development
• Certified with Carbon Trust Waste Standard – UK
• Keep Guernsey Green Award and States of Jersey Eco-Active Business awards – Channel Islands
• Global Sustainability Film Awards – our Vantage Program video was nominated in the Community Investment category
Performance
• 12% of our partners working in FS are female, a 1% increase on 2013. Our target for 2020 is 22%
• Two of our leadership development programs – from senior executive to manager (Aspire) and senior manager to partner (Global Next Gen) – saw increased participation by 10% and 43% respectively
• 25% of our people adopt flexible working practices. Our year-on-year target is to increase this by 5%
• 10% of our people undertook cross-border mobility assignments
External recognition
• Universum’s Most Attractive Employer - 1st in UK, 2nd globally
• Top Arbeitgeber Deutschland – ranked 1st in Germany by Top Employers Institute
• Stonewall Top 100 Employers – 5th in the Workplace Equality category
• Top Employers for Working Families – Top 10 in UK
• Forum for Expatriate Management Awards – our EMEIA Mobility Pipeline won the Best Global Mobility Program
• Trendence Graduate Barometer – 6th in Switzerland, 12th Germany
Our communitiesOur people
reduction in air travel-related carbon emissions per full-time equivalent employee compared to 2010 base year.
13%
5
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The FS industry increasingly approaches sustainability as a source of material risk as well as new business opportunities. We provide services to help our clients progress sustainability, within their own operations and with their customers.
We understand how governments, corporate entities, multilateral and not-for-profit organizations are working together to solve critical issues in the developing world. We add value to their efforts by providing a range of customized services in addition to our core services. These include social due diligence, impact assessment and grant management planning.
Our clients. We advise our clients on how to meet their current needs without compromising the ability of future generations to meet theirs. To help FS organizations achieve their sustainability objectives in this way, we utilize three key strategies.
One
Two Three
Advisory• Strategy development
and implementation• Robust and resilient
supply chains• Mapping business value to
sustainability performance• Sustainability risk
management and mitigation• Environmental finance and
impact investing advice• Valuation of Environmental,
Social and Governance (ESG) risk in asset portfolios
Assurance• Sustainability report
assurance• Development of integrated
reporting approach and control framework
• Sustainability improvement targets and key performance indicators
• Compliance with sustainability standards and regulation
• Audit and review of responsible investment funds
TAS• Transaction and
microfinance lending models• Sell-side and buy-side
due diligence• Operational transaction
services and post-acquisition integration
• Renewable energy strategy, procurement and evaluation
Tax• Corporate tax affairs
transparency and disclosure advice
• Customer tax transparency demand
• Cleantech and ‘green product’ tax benefits
Embedding sustainability in our core services
Collaboration is the key to creating positive change. We recognize the importance of engaging with FS institutions across all sectors, countries and markets, helping to shape policy, discuss trends and provide a platform to connect with other players in the field. We contribute through a number of initiatives, including the Global FS Institute (GFSI), the Guardian Sustainable Finance Hub and the EU study on Financial Transaction Tax.
Contributing to public discourse
Supporting international development
Sustainability services within our service lines
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Building a better working world: BankingThe most successful banks of the future will be those that transform their business models. The result will be banks defined by narrower scopes and simpler structures, yet greater reach. A sustainable banking and finance system must provide support for responsible lending, inclusive finance and alternative finance.
Responsible lending
Responsible lending is at the core of sustainable banking and has a significant impact on individuals and businesses, project finance and valuing natural capital.
• Individuals and businesses: Our Global Consumer and Global Commercial Banking Surveys analyzed a pool of banking customers to best understand their respective attributes, circumstances and wants. The results of these surveys have the potential to help banks better tailor services to their customers.
• Project finance: Responsibility for the planet’s natural resources is playing an increasingly significant role in reputational, operational and credit risks for lenders, investors and insurers. One example of our role in this is the support we gave an international bank in applying the Equator Principles guidelines for project financing decisions.
• Valuing natural capital: In collaboration with the Chartered Institute of Management Accountants (CIMA), we authored: Accounting for Natural Capital: The Elephant in the Boardroom.
Inclusive finance
Financial inclusion is about making finance accessible to individuals and groups for whom traditional structures and products are not best suited or readily available.
Two examples are microfinance and financial technology (Fintech).
• Microfinance is the provision of traditional FS, such as loans, savings and payment products, to the world’s underserved and unbanked populations. We supported a global bank by developing surveys on women-owned small to medium-sized enterprises (SMEs). The information gathered helped the bank better understand these clients, thereby enhancing financial access for women and reducing gender barriers in business.
• Fintech is the application of technology in FS to create disruptive business models and inclusive products. To better understand the UK Fintech market, the UK Government commissioned us to conduct a survey and produce a summary report: Landscaping UK Fintech.
Alternative finance
Alternative finance is a term encompassing a variety of non-traditional finance channels and structures.
Often brought to customers through Fintech platforms (including crowd funding, peer-to-peer lending and invoice trading), alternative finance offers individuals and organizations fresh opportunities to access funding.
We sponsored the University of Cambridge in their analysis of the scale and potential for growth of the European alternative finance industry. The results can be found in the report: Moving Mainstream – The European Alternative Finance Benchmarking Report.
“ We have seen progress in the way banks are helping to rebuild trust in the industry by tapping into opportunities that support financial inclusion and sustainable growth.” Marie-Laure Delarue, EMEIA Banking & Capital Markets Leader
Climate change
In an example of both adaptation to and mitigation of climate change, a global insurer engaged with us to reduce paper use by 95% following the negative impacts on their business from a local hurricane. We implemented a process to standardize document management and operational business. This built the foundation for improved business continuity and customer satisfaction, enabling future strategic initiatives and digital technology platforms. It also drove targeted cost savings of US$50 million over five years.
Micro insurance
Micro insurance offers protection against risk to groups often marginalized by traditional institutions. Relevant and affordable insurance products can provide a route out of the poverty cycle and a firm base for building sustainable livelihoods. Our work with Express Life (now Prudential Life Ghana) and Leapfrog Investments saw us review new product offerings and distribution channels aimed at low-income groups. We were active in developing internal structures and process design for this high growth low-income customer segment.
Human rights
The Chief Risk Officer (CRO) Forum’s report on Human Rights and Corporate Insurance has raised awareness of unintended risks for insurers. It uses examples of how insurers may directly or indirectly contribute towards human rights violations. These include the provision of:
• Global property insurance cover of a food and beverage company implicated by the use of child labor in its supply chain
• Project construction insurance cover to a construction company implicated in forced resettlements of local communities and human trafficking
• Directors’ and officers’ liability insurance cover to a mining company with operations implicated in inappropriate use of force to protect its facilities
InsuranceIn supporting society, insurers have a significant role to play through understanding and mitigating the impacts of risk. Insurers are also important as institutional investors, with long-term capital available to support a sustainable economy. Key sustainability considerations for the insurance industry are climate change, micro insurance and human rights.
“ There are growing signs that the regulatory focus is shifting towards companies’ customer conduct and interactions with clients.” Andreas Freiling, EY EMEIA Insurance Leader
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Wealth and asset management The wealth and asset management (WAM) industry is in the midst of a permanent global shift in its underlying activities. Firms that fail to adjust will face severe challenges to continued profitability and growth. Consequently, the WAM industry must consider a number of critical sustainability factors. These include the integration of environmental, social and governance (ESG) factors into investment portfolios, responsible investment practices and sustainable indices and stock exchanges.
“ As asset managers widen their search for attractive yields and seek to invest in a more socially responsible way, a continuing trend is diversification into alternative, real-world assets - such as farmland, infrastructure and shipping assets.” Roy Stockell, EY EMEIA Wealth & Asset Management Leader
Integrating ESG factors into investment portfolios
The pervasive sustainability topic in WAM is the incorporation of ESG factors into investment portfolios, including pension funds and other institutional investors.
We collaborated with the Dutch Association of Investors for Sustainable Development (VBDO) to analyze how sustainability can play a greater role in investment decisions. We examined the associated risks, opportunities and developments by sector. The resulting study provided insights into the state of responsible investment amongst the largest Dutch pension funds.
Responsible investment practices
According to the UN Principles of Responsible Investment (PRI), “responsible investment recognizes that the generation of long-term sustainable returns is dependent on stable, well-functioning and well governed social, environmental and economic systems.”
Two principal practices of responsible investment are engagement and screening:
• Engagement This includes shareholder activism and provides opportunities to engage with investee companies to improve corporate behavior.
• Screening This is the process of selecting investment opportunities based on their social and/or environmental performance. It requires identifying, measuring and analyzing ESG factors within portfolios or investee companies. Depending on the investor, screening can range from a simple “yes/no” process based on ESG factors, to a complex and comprehensive analysis.
Sustainable Indices and stock exchanges
Among the best-known sustainable indices are FTSE4Good and the Dow Jones Sustainability Index. These both offer a publicly available measure of listed company performance against set ESG criteria. Increasingly, traditional indices in markets, such as South Africa and Brazil, have incorporated ESG criteria into their listing requirements.
Negative screening:
Positive screening:
Saying “no” to investments in selected industries. When large institutional investors negatively screen together, it can create a voice that causes companies to review their ESG performance.
Looking for organizations with ESG factors that benefit society and/or the environment.
To find out more about sustainability for our clients, please visit www.ey.com/sustainabilityreportEMEIAFS
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Our people agenda is fundamental in supporting our Vision 2020 strategy. The greatest asset we have is our people and we bring them together to create the highest-performing teams. We know that there is a direct correlation between employee engagement and team performance. Therefore, within EMEIA FS, we have set ourselves a target of ‘Engagement +5’: to increase our overall employee engagement by 5% in 2015 from our 2014 baseline of 63%. Two strategic priorities have been identified to support this:
Building engaging leadersWe are implementing a transformational leadership program focused on behavioral changes. Our EMEIA FS leadership has mandated that all partners consistently demonstrate behaviors that motivate and support our people to perform at their best. Partners are held to account for these behaviors in their performance scorecards. This is a long-term change program, and it is envisaged that such behaviors will cascade through our FS practice – ensuring that the required behaviors are “turned up” and/or “turned down” to best effect.
The learning forum It’s our job, as client advisors, to understand at a deep level what clients want now and anticipate what they will need in the future. Our FS learning forum brings together more than 4,000 employees. It enhances our cross-border teams and provides richer perspectives that yield better outcomes for our clients.
Strategic priorities for our people agenda
Our greatest asset is our people Levels of employee engagement with our values
60%
2012
Our people. Whenever people join us – and however they progress their career with us – we ensure their EY experience lasts a lifetime. This is achieved through a careful balance of setting formal strategic priorities and creating a range of professional development programs. We provide informal learning opportunities and foster a diverse and inclusive workforce.
Our people are critical to the insights and quality services we provide to our clients. We develop outstanding leaders who work together to deliver on our commitments. It’s part of our commitment as an employer to provide our people with exceptional career experiences – before they join us, when they are with us and after they leave.
Our EY values call for people to demonstrate integrity, respect and teaming. With energy, enthusiasm and the courage to lead, we are building relationships based on doing the right thing. We monitor this through our employee engagement index, which has steadily increased among our FS people to 63% in 2014.
2014
62% 63%
2013
68%
2015 Target
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Our industry leading learning programs provide our people with professional skills, along with technical and industry knowledge. Our learning and development framework, EY and You (EYU), provides our people with the exceptional experiences and coaching they need to accelerate their careers. We have specific development programs and milestone events in place for all ranks.
We’ve invested in the My Development site, an interactive global system which helps our people manage their individual development. Our counselling family structure supports a range of employees, from interns to partners. Counselors provide support throughout the year, ensuring our people seek out the learning and on-the-job experiences that enable them to realize their potential. It’s not just about twice yearly personal reviews and a performance rating.
We are working hard to embed sustainability within EYU beyond the environmental impact of our training delivery and milestone events. Examples include:
Non-executive directors (NEDs)We encourage our leaders to assume NED positions through trustee roles at non-listed entities such as not-for-profit organizations. Our NED roadmap for the FS industry differentiates us from our competitors and offers a variety of training opportunities for prospective NEDs.
Ideas Bank: Sustainable ThoughtsThrough a managed internal discussion board, called the Ideas Bank: Sustainable Thoughts, we encourage our people to submit their ideas for increasing our sustainability performance. An annual competition is conducted to select and implement the most impactful ideas. Prizes include a place on the EarthWatch Ambassadors program and attendance at the One Young World summit.
Our teams differentiate us from our competitors. Focusing relentlessly on exceptional client service, they use their diverse perspectives and strengths to tackle the challenges facing our working world. We want to continually improve this by creating a work environment that enables our people to perform at their best within the teams in which they work. This is achieved through a combination of professional development, international opportunities, employee well-being and a diverse and inclusive workforce.
Creating the highest-performing teams
Empowering our people through professional development TRANSITION PROGRAM
Senior executive
Manager
Senior manager
Senior manager
Manager
Senior manager
Partner
Other career paths
Aspire
Core program being developed in 2015 Navigator for women Vantage
Global Next Gen
Senior manager career framework
Having the highest-performing teams depends on their ability to work without borders and have leaders with a truly global mindset. The FS industry operates globally and across sectors, so we need to seamlessly meet their needs. We have many mobility programs open to our people, including our Global Exchange Program and our New Horizons scheme.
We want to establish a clear link between career mobility (be it geographic, service line or sector-based) and accelerated career development, ensuring that those who share their knowledge and experience beyond their immediate teams are recognized. Last year, 398 of our EMEIA FS people were on mobility assignments.
Our people work hard to drive business results and we want them to have balanced, well-rounded lives. We provide the tools and technology they need to work flexibly and meet the commitments we make to our clients and our families.
Across our offices, we are investing in leading-edge solutions and innovative workspaces to make collaboration as simple as possible. Our Workplace of the Future program is delivering these infrastructure changes, while our New Ways of Working initiative is changing behaviors among our people.
Working flexibly is championed across our business. We look to apply this in our maternity, paternity and adoption leave policies – giving all new parents the option to take leave beyond standard government benefits.
We know that the health and vitality of our people is paramount to them performing at their best. We fund initiatives in each of our countries to promote well-being through:
Employee Assistance ProgramIn Germany, Ireland and Switzerland we provide our people and their families with a free, confidential health service.
Fit4TheJobIn the Netherlands, this 12-month program helps our people with personal health, recovery from stressful periods and customized training.
MyHealthCountsIn the UK, this online tool aids understanding of how positive lifestyle choices can reduce the risk of developing health conditions.
Developing a global mindset
Incorporating well-being into our ways of working
“ International opportunities are important for people who want to develop new skills, broaden their horizons and expand their networks. They are an excellent way to develop future leaders since they enhance intercultural competencies, essential skills for a global organization such as EY.” Rouven Staab, EY Germany, AuditPLUS trainee program for university graduates
“ I was on paternity leave for almost two months... If you are flexible enough and use the technology at your disposal, you can find the right balance.” Alonso Cienfuegos, EY Spain, HR Associate Director
of our EMEIA FS people were on mobility assignments in 2014398
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Differences are important to us. We recognize our people as individuals and respect and embrace diversity in all its forms. Beyond the diversity in our workforce, we provide training and recognition schemes that encourage our people to act inclusively.
Our Global Diversity and Inclusiveness (D&I) Roadmap provides a “culture change continuum” for how we are embedding changes in all of our processes, to make D&I part of everything we do.
Within EMEIA FS for example, we are taking action to:
• Establish targets in partner scorecards for increased representation of women across our markets, service lines and levels
• Provide sponsors for under-represented populations in our workforce and enable them to develop their career opportunities
• Embed D&I considerations into our account planning, recruiting, performance management, coaching, rewards and recognition
As individuals, all our people are given equal opportunity to develop their teams and leadership skills inclusively. However, we will only be successful in creating a culture of inclusiveness if we each demonstrate such behaviors. We continue to take this approach and challenge ourselves every day to improve.
Valuing diversity and inclusiveness
D&I culture change continuumAll differences matter:• Thinking style• Leadership style• Gender• Diverse abilities/disabilities• Country of origin • Service line • Location • Ethnicity• Education and work experience• Religious background• Sexual orientation• Generation• Socioeconomic background• Other differences
Source: Framework adapted for EY from The Guide for Inclusive Leaders, by Joerg Schmitz and Nancy Curl. (Princeton Training Press, 2006)
DiversityAll differences matter.• Thinking style• Leadership style• Gender• Diverse abilities/ disabilities• Country of origin • Service line • Location • Ethnicity• Education and work experience• Religious background• Sexual orientation• Generation• Socioeconomic background• Other differences
InclusivenessLeveraging differences to achieve better business results;creating an environment where all people feel, and are, valued.
For the organization
Recognize andreward role models
Enable culture change
Identify meaningfulchanges
Establish a baselineand cascadeawareness
For the individual
Value differences
Practice and model inclusive teaming and leadership
Identify “insider” and “outsider” dynamics
Influence our culture
1
2
3
4
Highest-performing
teams
To find out more about sustainability for our people, please visit www.ey.com/sustainabilityreportEMEIAFS
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As a group, entrepreneurs represent the best hope of creating sustained economic growth – by reducing unemployment, driving innovation and transforming economies. In developed economies, where growth remains fragile, entrepreneurs play a vital role in creating jobs and sustainable livelihoods. Entrepreneurship is even more important in emerging markets, propelling future growth, reducing poverty and enhancing equality.
We are a market leader in supporting entrepreneurs through our Strategic Growth Markets team. We have recognized their achievements at our annual Entrepreneur of the Year awards for 25 years. We also serve entrepreneurs through pro bono programs we deliver with not-for-profit organizations, such as Endeavor, Power of Youth and the Network for Teaching Entrepreneurship. These provide support to entrepreneurs, ranging from start-ups funded by microfinance to high-impact SMEs.
Our EY Vantage program provides entrepreneurs in emerging markets with access to our services on a six-week pro bono basis. In 2014, 71 of our employees participated in the program as Vantage advisors, providing 5,641 consulting hours to 21 entrepreneurs across 10 emerging markets.
Our Enterprise Growth Services (EGS) initiative is a leading example of how we support entrepreneurs through reduced fee projects. Our teams help small businesses and social entrepreneurs improve their productivity, profitability and recruitment. Such projects typically last several months and make substantial changes to SME processes, governance and information management.
Our communities. We are committed to fostering sustainable growth in areas where we can have the greatest impact. Through our Vision 2020 strategy, we focus on supporting entrepreneurship, championing women in business and developing future leaders. We also challenge ourselves to work in a more environmentally sustainable manner.
Helping entrepreneurs succeed and grow sustainably
hours of pro bono services delivered by the EY Vantage Program
5,641
“ Having an International Advisor with global experience working onsite was an incredible opportunity for our organization. It had a significant impact as it allowed us to scale our business in compliance with the tax regulation. We implemented key business processes and added a risk assessment procedure which we had never done before. It has been one of our best involvements with an external institution so far.” Feedback from Indomog, an Endeavor entrepreneur who worked with one of our EY Vantage Advisors
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Harnessing women’s economic potential would equate to an additional one billion working individuals contributing to the global economy. Investing in women makes a real difference to local communities. Research from the World Bank has shown that in the developing world, women spend up to 90% of their income on their families and communities.
In 2014, our International Women’s Day (IWD) campaign for EMEIA FS celebrated women’s achievements while identifying potential barriers to success. Alongside engagement activities across our offices, we teamed up with PlaNet Finance to fund an impact assessment project for Malagasy women working as micro-entrepreneurs in Madagascar.
In striving to empower women, we’re fully aware that they can significantly enhance organizational performance, when occupying leadership positions. Fortune 500 companies with the highest representation of female board directors outperform those with the lowest.
EY supports numerous initiatives focused on empowering women; these include our Entrepreneurial Winning Women program and the Worldwide Women Public Sector Leaders Network. We are a signatory to the United Nations Womens’ Empowerment Principles, which offer guidance to businesses on how to empower women in the workplace. We have joined the International Finance Corporation (IFC) led ‘She Works’ initiative to advance women’s employment in the private sector. We collaborate with the Global Women in Business Advisory Council to help entrepreneurs access capital and benefit from mentoring. Finally, we are prolific publishers of research papers dealing with women’s workplace and business issues.
Empowering women economically
“ EY supports women across the globe through the services we offer to microfinance institutions, which can focus on a combination of microcredit, microsavings and microinsurance – all leading to the improvement of financial inclusion.” Zaina Ahmed-Karim, EY Netherlands Partner
Ever conscious of our commitment to developing young people, we work hard to build skills and create job opportunities all over the world. One of the toughest economic and social challenges today is youth unemployment. Lack of working opportunities has the potential to reduce lifetime earnings, impact standards of living and affect health and life expectancy.
By developing the leaders of today and tomorrow we can enable them to own and solve complex challenges.
Our support helps young people to access higher education, gain work experience and build their own businesses.
Through our pro bono work with organizations such as Youth Business International (YBI), we directly support skills development for underserved youth entrepreneurs. In 2014, we seconded six of our people to YBI and contributed 3,500 consulting hours to this effort.
Developing the leaders of today and tomorrow
“ Over the last two years, EY has been working with YBI’s central network team to develop their performance management and analytics strategy. Our work is helping YBI to unlock the insights contained in the data their members collect from around the globe and to ensure that the resources of their network are deployed where they will maximise the benefit to young entrepreneurs.” David Lindop, EY UK Partner
1 in 4 young people under 25 are unemployed, impacting
6 million families across Europe
Our highly integrated FS practice relies inevitably on air travel for employee mobility. Flights represent a third of our total carbon emissions. As our organization grows, we aim to reduce our air travel carbon emissions by 12% per FTE by 2015 from our 2010 baseline. In 2014, we exceeded this target, achieving a 13% reduction and continue to run employee engagement campaigns on this topic.
We also encourage our people to consider their environmental impact when working with clients. This includes alternative travel arrangements, such as the “3/1 arrangement”, which involves teams traveling to our clients’ sites for three weeks and working from home or at the local office on the fourth. This provides direct cost benefits to our clients, gives our people flexibility and reduces our environment impact.
Focus on business travel
We challenge ourselves to work in a more environmentally sustainable manner and to reduce the impact of our operations on the planet. Due to the nature of our business, our main environmental impacts relate to travel and energy use in our offices. Our focus is therefore on reducing air travel and improving the energy efficiency of our buildings year-on-year.
Minimizing our environmental impact
33,931 tCO2eTotal carbon emissions
(in metric tonnes)
Scope 2 Office energy consumption
• Electricity
• Heat/steam
2,465 tCO2e 9,392 tCO2e 22,074 tCO2e
Scope 1 Direct fuel usage
• Diesel
• Natural gas
Scope 3 Business travel
• Air travel
• Rail travel
• Rental cars
• Employee owned cars
reduction in air travel carbon emissions per FTE by 2015 against our 2010 baseline was exceeded by 1% in 2014
Target of
12%
1% reduction in total carbon
emissions from 2013
6% reduction in carbon
emissions per full-time equivalent
employee from 2013
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To find out more about sustainability for our communities, please visit www.ey.com/sustainabilityreportEMEIAFS
12%15%of our people
participated in volunteering
Against our target of
EY continues to identify increased energy efficiency across our real estate, IT and procurement practices. We are challenging ourselves to do better than simply meeting government standards. This can be seen in the newly designed green building, which our FS employees are relocating to, on London’s Canary Wharf.
Our FS people will occupy several floors in this building. It features a green roof terrace, estate biodiversity and ecology action plan, energy efficient lifts and solar thermal heat among its many sustainable assets.
Continuous improvement in energy efficiency
Through various volunteering options, we encourage our people to donate their time and skills to not-for-profit organizations. We set an annual target for participation in volunteering and our people provide support across a variety of activities – ranging from fund raising for our community campaigns to supporting financial education of under-served groups.
Supporting communities through volunteering
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Further informationPlease view our full 2014 Sustainability Report at: www.ey.com/sustainabilityreportEMEIAFS
Alternatively, get in touch with our Head of Corporate Sustainability for EMEIA Financial Services, Beth Knight:
Or speak to Corporate Sustainability Supervising Associate for EMEIA Financial Services, Robert Rosenberg:
EY | Assurance | Tax | Transactions | Advisory
About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
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