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61% of EY Suppliers Have Adopted Science-Based Targets in FY24

61% of EY Suppliers Have Adopted Science-Based Targets in FY24

61% of EY Suppliers Have Adopted Science-Based Targets in FY24
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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.”

Amy M. Brachio, EY Global Vice Chair — Sustainability

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.

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