The growing impact of climate change, coupled with the critical shift toward a low-carbon economy, presents one of the most demanding challenges of our time. Addressing this transformation requires immediate action and collective effort to build a sustainable future for generations to come. Over the past year, we have worked relentlessly to guide clients on their sustainable journeys while also taking proactive steps within our own business and operations.
We continue to work across our global network to advance WorldClimate, Deloitte’s environmental sustainability ambition, to promote more sustainable choices.
In 2020, Deloitte pledged to achieve net-zero emissions as part of our WorldClimate ambition. This commitment was based on achieving our 2030 near-term science-based net-zero goals (these targets were validated by the Science Based Targets initiatives (SBTi) in 2020 in line with their guidance at that time). Under SBTi’s Net-Zero Standard published a year later, companies are required to set both near- and long-term targets. Deloitte subsequently revised its headline ambition to “net-zero with 2030 goals.”
In 2024, Deloitte set long-term targets to reach net-zero greenhouse gas emissions by 2040 in accordance with the new Net-Zero Standard. Deloitte has committed to reducing absolute scope 1, 2, and 3 greenhouse gas (GHG) emissions by 90% by 2040 from a 2019 base year and reaching net-zero GHG emissions across our value chain by 2040. Deloitte’s net-zero by 2040 goals have been validated by the SBTi in September 2024. Our near-term 2030 goals remain to reduce absolute scope 1 and scope 2 GHG emissions by 70% and reduce scope 3 GHG emissions from business travel by 55% per full-time equivalent employee (FTE) from a 2019 base year.
In FY24, Deloitte Middle East’s Gross total emissions [1] [2] totaled 27,540 tCO2e emissions (10,154 tCO2e from business travel, 4,526 tCO2e from electricity (location-based) – reported as zero emissions under the market-based method due to the purchase of Renewable Energy Certificates (RECs) [3] [4], 140 tCO2e from district heating and cooling, 6,565 tCO2e from employee commuting and homeworking emissions[6], and 10,681 tCO2e from purchased goods and services[5]).
While Deloitte is globally taking action across our network to reduce our direct carbon emissions, our largest source of carbon emissions occurs indirectly through our supply chain. We are working with suppliers at a global level to make progress toward a goal of having 67% of them, by emissions, set Science Based Target initiative (SBTi) by 2025. From FY21 to FY24, the number of Deloitte Global’s suppliers with SBTi’s increased from 8% to 30%. Based on this progress, we know we will not meet our 2025 target, but we have taken meaningful steps to begin decarbonizing our supply chain. Through targeted supplier engagement efforts, we continue to influence suppliers to set SBTs, we collaborate with them on emissions reduction, and we work together to advance product-level emissions reporting. We continue to work actively with our suppliers to advance progress toward our long-term goals and include expectations of our suppliers in our Supplier Code of Conduct.
We are committed to investing in solutions that can deliver a more sustainable future[7]. Deloitte provides funding and skills-based support to a range of projects that deliver environmental and social impact across the key areas of the energy transition, circularity, sustainable food systems, and nature restoration.
Footnotes:
[1] Limited assurance was provided by BDO LLP at a consolidated Deloitte NSE level over all reported carbon metrics. This included consideration of the underlying country data in Belgium, Denmark, Finland, Greece, Iceland, Ireland, Italy, Malta, Middle East, Netherlands, Norway, Sweden, Switzerland and the UK plus Jersey, Guernsey, Isle of Man and Gibraltar.
[2] The FY2024 GHG Emissions Basis of Reporting - Deloitte North & South Europe is available here.
[3] Where possible, Deloitte firms procure and claim renewable energy in accordance with the Climate Group’s RE100 Technical Criteria and Global Reporting Initiative (GRI) topic standard GRI 302: Energy 2016. In certain markets where procuring renewable electricity is challenging or is not possible, Deloitte firms may procure renewable electricity from a neighbouring country. This allows Deloitte to demonstrate commitment to our renewable electricity target and signal market demand. As this approach meets only one out of three market boundary conditions included in the RE100 Technical Criteria, there may be variances between renewable electricity amounts reported here and within Deloitte's RE100 reports. Deloitte anticipates increasing the alignment with RE100 Technical Criteria over time as market availability of renewable energy increases.
[4] In accordance with the Global Reporting Initiative (GRI) disclosure 305-2, Deloitte publishes purchased electricity emissions using both a location- and market-based methodology. The location-based method involves using an average national, regional or subnational emission factor that relates to the local grid from which electricity is drawn, whereas the market-based method involves deriving emissions factors from contractual instruments, allowing for a zero-emission factor to be applied to portions of electricity consumption that is matched to a renewable energy source, resulting in lower emissions compared to the location-based method. Deloitte's near-term science-based targets use a market-based methodology for purchased electricity, hence this figure is the one used in the emissions inventory, whereas the location-based figure is shown below for comparative purposes. Within NSE, all electricity has either been purchased on REGO-backed green tariffs, or covered by the purchase of Energy Attribute Certificates (EACs). Under the market-based method this means our electricity consumption is reported as zero-emissions.
[5] The PG&S methodology is based largely on procurement spend data for 6 geographies within NSE, accounting for 74% of PG&S emissions. 6% of PG&S emissions are based on actual supplier data (Scopes 1 & 2) submitted to CDP. The remainder of PG&S emissions are extrapolated. We apply a number of assumptions to the spend data, including how we allocate spend into procurement categories, how we treat our suppliers’ reported Scope 3 emissions, the CDP sector emission factors we apply to each spend category, and the extrapolation factors. In FY24, Deloitte revised the methodology for calculating contingent labour emissions that were previously included in purchased goods and services (PG&S) emissions to increase the precision of these calculations. Additionally, Deloitte enhanced spend-based PG&S calculations methodology to more precisely identify and exclude supplier spend items that are deemed non-emission generating (e.g., taxes, intercompany transactions, etc.). Additional details on the methodology used to calculate PG&S emissions and further details on this restatement are provided in the Deloitte NSE FY24 Basis of Reporting. Deloitte will continue to review its approach to Scope 3 reporting in the future, aiming to continually improve the accuracy of its disclosures. When these enhancements lead to a material change in a reported figure, Deloitte will explain the nature of the change, the reasoning for its appropriateness, and the variance compared to the previous methodology.
[6] Actual activity data on commuting was sourced from survey for 6 geographies within NSE in FY24, however, a proportion of the commuting and working from home calculation still rests on assumptions and extrapolation. We will refine these assumptions and improve the methodology moving forwards as guidelines develop.
[7] In line with SBTi guidance, in FY24 we are purchasing CERs ('carbon offsets) equivalent to 50% of our total gross emissions; we are additionally providing direct investment and skills-based support to projects that will drive the net zero transition outside of our value chain. We are therefore no longer reporting 'net emissions' that solely factor in carbon credit purchases.
