From droughts and wildfires to hurricanes and flooding, extreme weather events are becoming more frequent and severe, and the climate crisis has emerged as one of the defining challenges of our time.
But over the past year, we have also been reminded how big challenges can inspire tremendous human ingenuity and creative solutions. Organizations committed to climate action are taking significant steps to bring their commitments to life, even in the face of economic headwinds and an energy crisis.
Deloitte is helping to lead the way toward a lower-carbon future by advising clients on their sustainability journeys, as well as through our own meaningful, measurable actions. We are also extending our impact by empowering our 457,000 people around the world, influencing our suppliers and engaging across the broader ecosystem.
Helping clients take action
Recognizing that business has a critical role to play—and that, according to Deloitte Global's 2023 CxO Sustainability Report, more than 60% of CxOs say climate change will have a high impact on their organization’s strategy and operations over the next three years—we have deepened Deloitte’s collaborations with clients and other organizations to help advance climate action.
Over the past year, the Deloitte Sustainability & Climate practice globally has worked with clients from across industries and around the world to meaningfully embed sustainability into their decision-making and operations. By bringing together leading sustainability technology with proven business capabilities, Deloitte is helping to drive rapid and significant progress on organizations’ climate-led transformations.
Two innovative offerings, launched earlier this year, help make that progress possible. Deloitte’s GreenLight Solution, a modular system of end-to-end decarbonization software, helps enable companies of virtually any size, maturity, or geography to assess their carbon footprint and emissions baseline, then develop a clear, actionable roadmap to net-zero. GreenSpace Tech helps accelerate decarbonization and value creation by providing businesses with access to a robust ecosystem of climate technologies and innovators to quickly track, develop, and deploy climate tech solutions.
In addition, the Deloitte Center for Sustainable Progress has published forward-looking research on topics that are top of mind for business leaders. Hydrogen: Making it happen outlines the practical solutions needed to kick-start the large-scale deployment of clean hydrogen, while Work toward net zero: The rise of the Green Collar workforce in a just transition explores the shifts in workforce skills needed to move rapidly to a lower-carbon economy.
Advancing our own sustainability journey
We work across our global network to advance WorldClimate, Deloitte’s environmental sustainability ambition. WorldClimate consists of a two-pronged approach: actions we take and actions we inspire. Recognizing that collective action is required to effectively tackle the climate crisis, Deloitte is committed to taking measurable, decisive action on climate change, empowering Deloitte people and engaging the broader ecosystem to create solutions that facilitate the transition to a low-carbon economy. Deloitte’s near-term (2030) greenhouse gas (GHG) reduction goals have been validated by the Science Based Targets initiative (SBTi) as 1.5° C-aligned, science-based targets. Deloitte has also committed to set long-term emissions reduction targets using the SBTi’s Net Zero Standard.
We are embedding sustainability into processes and practices throughout the organization, including procurement, and measuring performance against our goals. For instance, Deloitte continues to advance our commitments to the three core initiatives of the Climate Group supporting the advancement of renewable electricity (RE100), electric vehicle (EV) adoption (EV100), and energy efficiency/productivity (EP100). In FY2023, 94% of the energy Deloitte purchased was renewable energy. Looking across our global network, Deloitte North and South Europe (Deloitte NSE) has continued to electrify its fleet, 42% of which now consists of EVs and plug-in hybrids, while The Ridge, Deloitte Africa’s Cape Town office, received the Gold Award in the “Best Sustainable Designed Commercial Building Globally” category at the World Architecture News Awards.
As we strive to approach environmental matters holistically, it’s important to also consider our impact on nature and biodiversity. This is a critical topic for many companies, who turn to us for guidance on developing their nature and biodiversity strategies. While our organization’s direct impacts in this area are limited, we are developing a global nature and biodiversity strategy to help address and mitigate impacts throughout our value chain and support nature-positive solutions.
Deloitte also continues to build on our work with Indigenous peoples, including in Australia and Canada, to advance nature-based climate solutions. We recognize the importance of honoring the knowledge of these communities and supporting Indigenous-led climate solutions that embed traditional ecological knowledge. For example, Deloitte Australia owns and manages The Deloitte Carbon Forests, properties that are designed and managed to deliver benefits for biodiversity and local communities, allow for agricultural production, and strengthen Traditional Custodian relationships. Deloitte Australia collaborated with environmental organizations and with Indigenous leaders to help deliver these benefits. In addition, Deloitte and the World Economic Forum (WEF) jointly published Embedding Indigenous Knowledge in the Conservation and Restoration of Landscapes, which explores how organizations can co-invest with Indigenous leaders to help bring value to both corporate action on nature and the long-term health of nature.
Measuring and reporting on our progress
Clients and other stakeholders are increasingly calling on organizations to report transparently on their ESG performance. Deloitte is a committed leader in this area, reporting our performance against the WEF stakeholder capitalism metrics (SCM) and aligning with the Global Reporting Initiative. We earned an A- rating from CDP for our FY2022 response to its climate change questionnaire. In addition, Deloitte has continued its disclosure following the recommendations of the Task Force on Climate-related Financial Disclosures.
We, together with the coalition of companies supporting the WEF SCM initiative, have continued to advocate for a comprehensive global baseline for sustainability reporting based on the International Sustainability Standards Board’s (ISSB’s) standards (ISSB Standards). As part of this initiative, in June 2023, ISSB and WEF concluded a Memorandum of Understanding, which creates a mechanism for the WEF business community to share leading practices and practicalities of adopting the ISSB Standards and to offer insights and corporate perspectives into the standard-setting process.
The ISSB issued its first International Sustainability Disclosure Standards, IFRS® S1 and S2, in June 2023. Deloitte issued a statement welcoming the ISSB Standards’ publication and supporting their adoption around the world. To help ensure the inclusive development and widespread implementation of the standards, the IFRS Foundation launched the Partnership Framework for Capacity Building at COP27, the 2023 UN conference on climate change. Deloitte is a founding signatory and will continue to support companies, investors, and other capital market stakeholders as they prepare to use the ISSB Standards.
Assurance helps to enhance trust in sustainability information and is a critical component of an effective governance structure. We continue to evolve our methodologies, upskill our practitioners, adhere to strict ethics and professional standards, and engage technology to deliver high-quality assurance services. Importantly, starting with FY2023, selected environmental data in this report has been subject to independent limited assurance.
The power of our people
Deloitte continues to empower our people to take climate action and make environmentally responsible choices. During the past year, we launched a new Sustainability & Climate learning program to help give Deloitte people the critical insights needed to expand their skill sets, grow their careers, and serve as trusted advisers to clients as they transform their organizations.
While business travel has resumed in most parts of the world following the COVID-19 pandemic, Deloitte is pursuing a variety of initiatives to help reduce the impact of our travel, an important part of our WorldClimate ambition. For example, Deloitte US recently launched its TravelSight dashboard, which combines data related to modes of travel, office visits, and expenses to support environmentally minded decision-making related to travel. Similarly, Deloitte Asia Pacific and Deloitte Global’s “Moments that Matter” travel guidelines were developed to support vital in-person touchpoints while keeping climate priorities in balance. By traveling smarter, we can help reduce the scope 3 carbon cost to clients, while also supporting the work-life balance of Deloitte people.
Our Green Teams, led by Deloitte people, foster internal grass roots efforts to promote more sustainable choices in Deloitte offices around the world and encourage community volunteering with environmental non-profit organizations. Deloitte also hosts internal virtual spaces for sharing inspiring ideas and prompting discussions that drive action—such as organizing a six-week vegan challenge or an office recycling or clothing drive. During Earth Month, we explored the individual actions each of us can take in our daily lives, in addition to the work Deloitte does for clients, to help build “Better Futures. Together.,” with a special focus on the circular economy, nature and biodiversity, and decarbonization.
Environmental impact across our ecosystems
Over the past year, we also continued to engage with like-minded organizations across our ecosystems to help inspire action, increase demand for sustainable products and services, and develop solutions.
As part of Deloitte’s commitment to WEF’s First Movers Coalition, we are participating in aviation sector working groups to help enable further design and implementation of several sustainable aviation fuel (SAF) initiatives. It’s a priority for Deloitte, as an organization that utilizes air travel, to collaborate and help expand the market for low-emission transportation solutions. Reporting and accounting of SAF purchases is a developing area that can benefit from connecting efforts by numerous stakeholders across the SAF value chain. Deloitte is participating in the development of a chain of custody framework for transport decarbonization through membership in the governing board of the Book and Claim Community, formed by the Smart Freight Centre and the Rocky Mountain Institute. We also purchased SAF from various participants in the market, both to signal demand for SAF and to deepen our own market knowledge. In addition, Deloitte helps accelerate SAF usage as a founding member of the Sustainable Aviation Buyers Alliance and through our involvement in WEF’s Clean Skies for Tomorrow Coalition. We also help advance climate action more broadly through WEF’s Alliance of CEO Climate Leaders.
Recognizing the power of young people to embrace and drive the principle of sustainable living, Deloitte is collaborating with Junk Kouture, a recycled fashion competition with an education platform, to inspire and empower the circular engineers of tomorrow. We have created opportunities for their voices to be heard at events such as COP27 and the WEF Annual Meeting in Davos and developed a masterclass curriculum focused on sustainability and climate and diversity, equity, and inclusion.
Last November, Deloitte helped launch the International Olympic Committee Climate Action Awards, which will honor athletes and sports organizations within the Olympic Movement who are tackling climate change. As a Worldwide Olympic and Paralympic Management Consulting Partner (TOP), Deloitte is supporting the IOC Climate Action Award x Innovation, which recognizes innovation and education efforts focused on reducing emissions to help create a more sustainable future.
Deloitte is also a contributor to the Sustainable Markets Initiative (SMI) and collaborates with SMI on its mission to build a coordinated global effort within the private sector to help accelerate the achievement of global climate, biodiversity, and Sustainable Development Goal targets.