Governance and management of sustainability impacts

Deloitte Global Board of Directors

The Deloitte Global Board of Directors (Deloitte Global Board) addresses the most important governance matters within Deloitte Global, including approval of the strategic plan, annual budget, investment plans, major policies, and significant transactions. It also oversees the selection of the Deloitte Global CEO and Deloitte Global Chair. In relation to sustainability impacts specifically, the Deloitte Global Board reviews Deloitte’s impact across society, including on the economy, the environment, and people. This includes, in alignment with MF Boards, guiding key impact activities including the development of Deloitte’s global sustainability and climate strategy, the process of setting global environmental and societal goals, reviewing ongoing performance toward these goals, and approving significant investments by Deloitte Global. As a part of reviewing performance, the Deloitte Global Board annually assesses global environmental (including climate) and societal performance against agreed goals, and approves the disclosure of such performance in the annual Global Impact Report. 

Sustainability impacts are managed locally by the relevant Deloitte firms and reported to Deloitte Global, enabling strategic alignment and effective execution across the Deloitte network.  

Purpose, Sustainability, and Culture Committee 

In FY2024, the Deloitte Global Board established the Purpose, Sustainability & Culture Committee (PSCC)  to provide dedicated support  in areas central to Deloitte Global’s strategic plan and the associated Deloitte network-wide impacts, including purpose and shared values, sustainability, talent, diversity, equity, and inclusion, and the cultural aspects of ethics. The PSCC meets regularly throughout the year, with climate-related matters included on the scheduled agenda as appropriate; the PSCC Chair provides regular updates on these matters to the full Deloitte Global Board.

Specifically, as it relates to climate change, the PSCC provides oversight of Deloitte Global’s sustainability and climate change strategy and progress against climate change-related targets. In FY2024, the PSCC was instrumental in its oversight of the development of Deloitte’s science-based net-zero by 2040 target. 

Risk and Ethics Committee (REC)

The Risk and Ethics Committee (REC) of the Deloitte Global Board oversees Deloitte Global’s risk management activities, which includes two priority risks that address climate change: (1) Climate change and environmental, social and governance (ESG) disclosure, which captures defined physical and transition risks, and (2) purpose and responsible business, which captures reputational risks associated with climate change. Climate change and ESG disclosure has been identified as a standalone priority risk since fiscal year 2022. The REC reviews the priority risks in the Deloitte Global Enterprise Risk Framework (ERF) and risk management activities for the Deloitte network. This includes an annual refresh of the ERF presented by the Deloitte Global Chief Risk Officer to both the Deloitte Global Executive Committee (the Executive Committee) and the REC. The REC Chair provides updates on these risks to the Deloitte Global Board at least annually. The REC also collaborates with the Audit, Finance, and Investment Committee of the Deloitte Global Board and the PSCC in overseeing the ESG disclosures made by Deloitte Global. 

Management of Impacts

Deloitte Global CEO and Executive Committee

The Executive Committee is led by the Deloitte Global Chief Executive Officer (Deloitte Global CEO). 

The Deloitte Global CEO plays a pivotal role in developing the strategic plan for Deloitte Global and reviewing Deloitte’s impacts. This role includes driving Deloitte Global’s business strategy, and monitoring the impact on Deloitte clients, Deloitte people, and society (including environmental sustainability broadly and climate change specifically). The Executive Committee develops Deloitte Global’s sustainability strategy and major commitments.

Climate Change

The Executive Committee is responsible for developing Deloitte Global's sustainability and climate strategy, for which the Deloitte Global Chief People and Purpose Officer (CPPO), Chief Purpose Officer, and Chief Sustainability Officer (CSO) have primary responsibility. MFs align with Deloitte Global’s sustainability and climate strategy to the extent appropriate. The Deloitte Global Sustainability Leader champions the strategic plan for client-facing sustainability services, with which Deloitte firms align, to the extent appropriate, in delivering services to Deloitte clients. At least annually, the Executive Committee discusses client service growth plans and investments, and reviews progress toward Deloitte’s environmental (including climate) and societal goals.

The Deloitte Global CSO is responsible for working with Deloitte firms to support Deloitte’s WorldClimate ambitions and net-zero strategy, as well as Deloitte’s greenhouse gas inventory management, emission reduction goals, and external sustainability reporting. Advancing Deloitte’s net-zero transition plan, which requires comprehensive planning and coordination across the network, is a critical part of this effort. Deloitte’s supply chain is the largest source of global emissions for Deloitte, and therefore Deloitte Global’s Deputy Chief Procurement Officer oversees a dedicated sustainability team within procurement that directly supports Deloitte’s emission reduction efforts.

Together with the Deloitte Global CPPO, the Deloitte Global CSO reports regularly to the Executive Committee, the PSCC, and the Deloitte Global Board on sustainability- and climate-related matters, including WorldClimate and net-zero performance metrics. 

Additionally, each Deloitte MF has an executive-level leader who is accountable for managing internal sustainability matters, including monitoring greenhouse gas emissions and supporting decarbonization actions. The reporting structure for these roles varies depending on the MF’s size, but generally involves serving as a member of the MF’s executive body or reporting to a senior leader who is a member of an executive body. 

Global Purpose Executive (GPE)

Deloitte’s commitment to making an impact that matters is reflected in its purpose-driven approach across the network. Deloitte’s purpose, sustainability (including climate and nature), and societal impact commitments are championed by the Global Purpose Executive (GPE), a network-wide leadership body chaired by the Deloitte Global CPPO. 

The GPE draws its membership from MF purpose leaders and representatives from global businesses and functions. Focus areas of the GPE include coordinating and supporting programmatic initiatives, such as working toward Deloitte’s science-based net-zero by 2040 target and advancing Deloitte’s US$3 billion commitment to societal impact initiatives.