Key Impact Points:

• Significant Supplier Commitment: 61% of EY suppliers, based on FY24 spending, have established science-based targets (SBTs).
• Reduction in Emissions Amid Growth: EY reduced market-based GHG emissions by 36% since FY19, despite a 41% increase in headcount.
• Upcoming Environmental Strategy: EY plans to update its Environment Strategy in FY25, aligning with new standards and setting near- and long-term targets.

Ernst & Young (EY) has released its new Environment Report, showcasing significant progress in sustainability and environmental impact. Notably, 61% of EY suppliers, based on FY24 spending, now have science-based targets (SBTs) in place.

Why It Matters

As global expectations for environmental progress and transparency grow, EY’s integrated approach to climate and nature disclosures positions the firm as a leader in sustainability among professional services organizations.

Harsha Basnayake, EY Global Managing Partner — Business Administration and Risk, stated: “Sustainability underpins our growth, transformation, collaboration, and innovation, all enabled by the contribution of our people.”

Key Findings from the Report

• Emission Reductions Amid Growth: Despite a 41% increase in revenue and a 36% rise in headcount since FY19, EY’s total market-based greenhouse gas (GHG) emissions have decreased by 40% to 832,000 tCO2e.
• Improved Emissions Intensity: Emissions intensity per dollar of revenue decreased by 57%, and emissions per full-time equivalent (FTE) reduced by 56%.
• Travel Emissions: EY is on track to achieve a 35% reduction in travel-related GHG emissions by 2025, with sustained reductions in air travel and an increase in train journeys to 25% of all travel, up from 10% in FY19.
• Renewable Energy Usage: Consumption of renewable electricity increased to 88%, aiming for 100% by 2025.
• Industry Recognition: EY was designated the “#1 Leader” in the 2024 Verdantix Green Quadrant: ESG & Consulting Report and recognized as a “Leader” in IDC MarketScape reports.

Looking Ahead

EY is conducting a five-year review of its environmental strategy to align with updated standards. Amy M. Brachio, EY Global Vice Chair — Sustainability, commented:“We are committed to playing our part in translating ambition to action, in our business, with our people, and in wider society.”

The firm plans to publish an updated Environment Strategy in FY25, which will include a science-aligned decarbonization plan with near- and long-term targets, as well as plans to assess impacts on nature and biodiversity.

Strategic Initiatives

• Integrated Reporting: The new Environment Report combines climate and nature disclosures into a single document, utilizing frameworks established by the Task Force on Climate-related Financial Disclosures (TCFD) and adopted by the Taskforce on Nature-related Financial Disclosures (TNFD).
• Sustainability Services Leadership: EY continues to invest in sustainability services, integrating environmental considerations across its service offerings to address risks and opportunities.
• Employee Engagement and Training: Over 11,300 Sustainability Badges earned, representing more than 48,000 learning hours, reflecting significant investment in upskilling employees on sustainability topics.
• Technology Enablement: EY is enhancing its sustainability technology portfolio, integrating AI, cloud computing, and industrial IoT to support environmental initiatives.

Nature-Related Initiatives

EY conducted a Taskforce on Nature-related Financial Disclosures (TNFD) readiness assessment, utilizing its internally developed EY Nature Analytics Tool (NAT). This geospatial tool assesses biodiversity and nature-related impacts across EY’s operations, supply chain, and services.

The Bottom Line

EY’s integrated environmental strategy and measurable progress demonstrate a strong commitment to sustainability. By aligning with global efforts to achieve a net-zero, nature-positive future, EY reinforces its leadership role and sets a benchmark for environmental responsibility in the professional services industry.