How we’re providing greater environmental transparency and insight

EY Environment Report structure

The EY Environment Report builds on the report we published last year aligned to the TCFD. In this report, we provide a transparent overview of our environmental performance to date, while consolidating technical climate- and nature-related disclosures into one document.

Because the report addresses TCFD disclosures and provides a preliminary assessment aligned to the TNFD, we have based its structure on the framework recommended by both organizations.

Proud of our progress

In January 2021, EY announced a science-based decarbonization target of reaching net zero in 2025 with a 40% reduction in our absolute Scopes 1, 2 and 3 greenhouse gas (GHG) emissions against an FY19 baseline, based on the relevant standards and definitions at that time.

In line with the validation of these targets by the Science Based Target initiative (SBTi), we committed to review them against the latest criteria within five years.

We’re proud of the progress we have achieved. For example:

• Since FY19, EY has grown 41% and 36% by headcount while our total market-based GHG emissions have declined by 36% to 832k tCO2e.
• Market-based emissions intensity per dollar of revenue have decreased by 57% and emissions per full-time equivalent (FTE) by 56%.
• EY remains on track to achieve a 35% reduction in travel-related GHG emissions by 2025, with sustained reductions in air travel and “one-day” journeys.
• Renewable electricity consumed globally increased to 88% against our goal of reaching 100% renewable electricity by 2025.
• 61% of EY suppliers, based on FY24 spending, have science-based targets (SBTs) in place.
• EY was designated the “#1 Leader” in the 2024 Verdantix Green Quadrant: ESG & Consulting Report and “Leader” in IDC MarketScape reports.

Evolving our carbon ambition

The actions we have taken since FY21 have delivered progress, integration and innovation. From decarbonization and energy efficiency, to expanded reporting and enabling technology, to investing in our skills and services, the legacy of the first phase of our carbon ambition lies in how it has embedded sustainability in the wider growth and evolution of our business for the long term.

Building on our progress, we are currently undertaking a planned five-year review of the scope and pathway for our strategy to align with updated standards. During FY25, we will publish an updated EY Environment Strategy encompassing a science aligned decarbonisation plan, including near and long-term targets and plans to assess our impact on nature and biodiversity.

The next five years are crucial to secure the progress needed by 2030 for climate and nature, that will underpin a longer-term stable, affordable, and equitable transition. We are committed to playing our part in translating ambition to action, in our business, with our people, and in wider society.

Climate risks and opportunities

Our assessment of climate risks and opportunities encompasses a preferable-future scenario in which the world achieves the Paris Agreement’s goal of limiting global warming to 2°C or less compared with preindustrial levels, and a business-as-usual scenario that assumes 3.5° to 4.5°C of warming.

As a global professional services organization, EY faces greater transition risks related to our climate reputation in the market under the net-zero scenario than under business as usual (BAU). Similarly, the net-zero scenario presents greater opportunities to provide sustainability services. See the EY Environment Report for a full discussion of EY climate risks and opportunities.

Nature-related risks and opportunities: TNFD pilot and readiness assessment

EY is one of 320 organizations that committed to adopting the TNFD recommendations and will publish a TNFD-aligned report as part of our FY25 reporting. EY undertook a TNFD readiness assessment as part of the commitment of an early adopter. The readiness assessment included an understanding of our dependencies on and impacts to nature across the business, and identification of the associated risks and opportunities.

The assessment was conducted across three components of our value chain:

• Direct operations: covering all 815 member-firm offices and 14 co-location data centers internationally
• Supply chain: covering 49% in FY23 of addressable spending by EY entities purchasing goods and services
• Services: covering revenue from delivery of client services by member firms

We conducted nature assessments of EY real estate across the globe utilizing the internally developed EY Nature Analytics Tool (NAT). EY NAT is a geospatial tool that collects data from more than 35 nature-related maps to automate the identification of biodiversity and nature-related impacts.

EY NAT calculates a priority score based on the sensitivity of the local area; higher scores indicate greater environmental sensitivity and thus exposure to risk. This is a critical first step in the TNFD process and will be integral to our global assessment.

The readiness assessment has been a transformative process, providing a solid foundation for EY environmental initiatives. It has informed EY environmental strategy, helped refined metrics and targets, and contributed to strengthened governance. We are committed to building on this foundation to achieve our vision of a sustainable and nature-positive future.

Our integrated response

Our integrated response to these risks and opportunities begins with our robust, science-based environmental strategy and targets to meet stakeholder expectations for action by the EY Global network, one of the largest professional services organizations, and to contribute to the achievement of Paris-aligned and Montreal-aligned goals for climate and nature, respectively.

Key pillars of our response to environmental risks and opportunities include:

• Sustainability services leadership: Continuing investment in EY sustainability services represents a central pillar of our response to environmental upside and downside transition risks.
• Transparency: In the EY Value Realized Report, we share the impact we have on our stakeholders — EY people, clients and society — as we execute on our strategy and ambition to create long-term value as the world’s most trusted, distinctive professional services organization.
• Technology enablement: We continue to grow a market-leading sustainability technology portfolio, integrating artificial intelligence (AI), cloud computing, industrial IoT and space tech.
• EY Ripples: Manifesting our purpose of building a better working world, EY Ripples sponsors projects which contribute to the net-zero transition, help protect nature and enable our people to act on shared environmental values.
• Climate and sustainability training and engagement: We continue to invest in EY people to build their understanding of the risks and opportunities associated with a net-zero future, the environmental and social impacts of climate change, biodiversity, and other key issues.
• Mitigating environmental physical risks: Our real estate strategy supports the EY global environmental ambition by prioritizing occupancy in energy-efficient buildings, implementing sustainable design principles, and transitioning to renewable energy sources.