Collective action for climate impact
Through our sustainability transformation, Deloitte is taking action on climate change within our organization and beyond. committed to leading the transition to net-zero within the professional services industry. Deloitte has a Net-Zero by 2040 target and a transition plan focused on reducing the environmental impact of our operations, engaging our suppliers and clients to reduce their emissions, achieving Net-Zero, and collaborating for a low-carbon economy. Our sustainability and net-zero strategy also emphasizes empowering our people and investing in transformation.
FY25 environmental performance
In FY25, Deloitte Middle East’s ross total emissions [1] totaled 33,306 tCO2e (8,652 tCO2e from business travel, 3,314 tCO2e from electricity (location-based) – reported as zero emissions under the market-based method due to the purchase of Renewable Energy Certificates (RECs) [2][3], 839 tCO2e from district heating and cooling, 6,138 tCO2e from employee commuting and homeworking emissions [4], and 17,677 tCO2e from purchased goods and services[5][6]).
Looking at our near-term goals, Deloitte Middle East is currently at 86% reduction in Scopes 1 and 2 emissions vs the FY19 baseline, surpassing the 70% reduction target set for 2030. For business travel, FY25 recorded a 34% emission reduction per FTE [7] against the 55% reduction target set for 2030, indicating progress towards this goal.
Global procurement target
While Deloitte is taking action across our network to reduce our direct carbon emissions, our largest source of carbon emissions occurs indirectly through our supply chain. We worked with suppliers to make progress toward a goal of having 67% of them, by emissions, set science-based targets (SBTs) by 2025 [8]. From FY2021 to FY2025, the proportion of Deloitte Global’s suppliers with SBTs increased from 8% to 32%. This translates to 32% of our suppliers, by emissions, having set SBTs. We did 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 net-zero targets aligned with Deloitte’s ambition, collaborate with them on emissions reduction, and work together to advance product-level emissions reporting. Upon expiration of the supplier engagement target, we expect to revisit our near-term goals for our largest sources of emissions in line with the latest guidance and standards. Learn more about our Responsible Procurement Policy.
Beyond Value Chain Mitigation (BVCM)
Deloitte NSE is using its reach, capabilities, and investments to tackle climate change, protect and restore nature, and drive societal impact through best practice Beyond Value Chain Mitigation (BVCM) partnerships aligned with the latest science and emerging standards. In FY25, we allocated a combination of cash funding and in-kind support to a portfolio of seven transformational projects and the purchase of carbon credits. We are also helping The Earthshot Prize find innovative entrepreneurs, connecting them to our networks, and sharing our expertise to scale the solutions that can contribute to a better future.
We introduced our Beyond Value Chain Mitigation (BVCM) strategy in FY23. This strategy is aligned with Science-Based Targets initiative leading practice. Under our BVCM strategy, we purchase Certified Emissions Reductions (CERs) equivalent to 50% of our total gross emissions [9], and provide direct investment and skills-based support to projects that will drive the net-zero transition beyond our value chain. We have purchased CERs equivalent to 50% of our total gross emissions for FY25. We purchase and assure CERs collectively as Deloitte North and South Europe.
Footnotes:
[1] Limited assurance has been provided by BDO LLP at a consolidated NSE level over all reported metrics (except for those asterisked). This includes consideration of the underlying country data in Belgium, Denmark, Finland, Greece, Iceland, Ireland, Italy, Malta, Middle East, Netherlands, Norway, Sweden, Switzerland and the UK. Please refer to the accompanying assurance statement.
[2] In line with GHG Protocol guidance, we publish 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. Our net zero goals use a market-based methodology for purchased electricity; this figure is the one used in the emissions inventory with the location-based figure alongside for comparative purposes. Within Deloitte NSE, all electricity has either been purchased on REGO/REC-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.
[3] Where possible, Deloitte NSE procures and claims renewable energy in accordance with the Climate Group’s RE100 Technical Criteria. In certain markets where procuring renewable electricity is challenging or is not possible, we may procure renewable electricity from a neighboring market. This allows us 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. We anticipate increasing the alignment with RE100 Technical Criteria over time as market availability of renewable energy increases.
[4] Activity data on commuting and homeworking was sourced from surveys in 12 NSE geographies in FY25. Sample sizes of these surveys were deemed to be sufficient to extrapolate out to the full FTE population of each geography. The commuting and homeworking calculation depends on this extrapolation and on other assumptions. We will refine these assumptions and improve the methodology moving forwards as guidelines develop.
[5] PG&S emissions shown here are estimated. The methodology for calculating Purchased Goods & Services (PG&S) emissions is based largely on procurement spend data for 5 NSE geographies, accounting for 59% of NSE PG&S emissions. Where no spend data is available in a geography, including here, PG&S emissions are extrapolated from NSE spend-based emissions. We apply a number of assumptions to the spend data, including how we allocate spend into procurement categories, the CDP emission factors we apply to each procurement category, how we treat our suppliers’ reported Scope 3 emissions, and the factors used for extrapolation. Since FY19 we have made periodic changes to our methodology with the objective of improving data quality & completeness and reducing our use of estimates. Not all changes can be applied retrospectively and this limits the comparability of current year reported emissions against the baseline year. We will continue to review our approach to PG&S emissions reporting in the future, investing in supporting systems, processes and controls. When this leads to a material change in a reported figure, we will explain the change and the reasoning for it, and either restate figures or report the variance compared to the previous methodology, as appropriate
[6] As part of the review mentioned in footnote 5 above, we have recalculated and restated our prior period (FY24) PG&S emissions data. As a result of the review, we do not expect there to be a material impact on FY19 (our baseline year), however we propose to revisit all PG&S data in FY26.
[7] For consistency across NSE, the Full-Time Equivalents (FTE) data used for intensity metrics is sourced from NSE internal management reporting. These FTE amounts vary slightly to those reported in NSE and geography statutory financial statements, depending on country-specific reporting requirements.
[8] Our supply chain target relates to global suppliers and is tracked at a global level, where our core Procurement function sits. All Deloitte member firms globally contribute to progress against this target.[9] In line with SBTi guidance, since FY24 we have voluntarily purchased CERs ('carbon credits') 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. The recalculation of FY24 PG&S emissions will result in a difference between 50% of our total gross emissions and the CERs purchased in FY24. As part of our Beyond Value Chain Mitigation (BVCM) strategy we are evolving our approach to compensate for emissions and will keep future investments under review accordingly.
