deloitte touche tohmatsu limited - climate change 2019 · governance mechanisms into which...

Deloitte Touche Tohmatsu Limited - Climate Change 2019

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our network of member firms in more than150 countries and territories serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 286,000 people make an impact that matters atwww.deloitte.com.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “DeloitteGlobal”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learnmore.

For the convenience of the reader, a Deloitte firm in a particular geography is identified in the body of this report by the word "Deloitte" coupled with the geography (e.g.,Deloitte Japan, Deloitte US), in lieu of using the actual legal name of the Deloitte firm in that country. Each Deloitte member firm is structured in accordance with national laws,regulations, customary practice, and other factors, and may secure the provision of professional services in its territory through subsidiaries, affiliates, and other relatedentities. Not every Deloitte member firm provides all services, and certain services may not be available to attest clients under the rules and regulations of public accounting.Deloitte Global and each Deloitte member firm are legally separate and independent entities, which cannot obligate each other. Deloitte Global and each Deloitte member firmare liable only for their own acts and omissions, and not those of each other.

In conducting the carbon inventories reported upon herein, the individual member firms consolidated their own emissions using the operational control method. Consolidationof greenhouse gas emissions (GHGs) for the purpose of this report is therefore done by aggregating the inventories from individual member firms as described below. Somemember firms choose to also publicly release their own carbon emissions. Emissions released separately by member firms may differ from the emissions used in thisaggregation for multiple reasons. Examples of why these differences arise may be due to a regulatory mandate that requires the use of specific emission or other factors indisclosures in the country or countries in which the member firm operates which differ from those used in the Deloitte Global established protocol (e.g., the inclusion ofradiative forcing associated with aviation, which the Deloitte Global protocol does not include), differences in the scope of what individual member firms choose to include intheir own inventory, and differences in the availability of data at the time the report is prepared. In this response, the breakdown of member firm emissions is consistent withpublicly reported numbers included in the member firm's corporate responsibility (CR) reports. As such, member firm emissions do not add up to the totals in this DeloitteGlobal response. The scope of this CDP response is Deloitte.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

Start date End date Indicate if you are providing emissions data for past reporting years Select the number of past reporting years you will be providing emissions data for

Row 1 June 1 2017 May 31 2018 No <Not Applicable>

C0.3

(C0.3) Select the countries/regions for which you will be supplying data.AlbaniaAlgeriaAndorraAngolaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanBahamasBahrainBarbadosBelarusBelgiumBeninBermudaBolivia (Plurinational State of)Bonaire, Sint Eustatius and SabaBosnia and HerzegovinaBotswana

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http://www.deloitte.com/

http://www.deloitte.com/about

BrazilBritish Virgin IslandsBrunei DarussalamBulgariaBurundiCambodiaCameroonCanadaCayman IslandsChadChileChinaChina, Hong Kong Special Administrative RegionChina, Macao Special Administrative RegionColombiaCongoCosta RicaCote d’IvoireCroatiaCuraçaoCyprusCzechiaDemocratic Republic of the CongoDenmarkDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEstoniaFinlandFranceGabonGeorgiaGermanyGhanaGibraltarGreeceGreenlandGuamGuatemalaGuernseyHondurasHungaryIcelandIndiaIndonesiaIraqIrelandIsle of ManIsraelItalyJapanJerseyJordanKazakhstanKenyaKuwaitKyrgyzstanLaos, People’s Democratic Republic ofLatviaLebanonLithuaniaLuxembourgMalawiMalaysiaMaltaMarshall IslandsMauritiusMexicoMicronesia (Federated States of)MonacoMongoliaMontenegroMoroccoMozambiqueMyanmarNamibiaNetherlandsNew ZealandNicaragua

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NigeriaNorthern Mariana IslandsNorwayOmanPakistanPalauPanamaPapua New GuineaParaguayPeruPhilippinesPolandPortugalPuerto RicoQatarRepublic of KoreaRepublic of MoldovaRomaniaRussian FederationRwandaSaudi ArabiaSenegalSerbiaSingaporeSlovakiaSloveniaSolomon IslandsSouth AfricaSpainState of PalestineSwedenSwitzerlandTaiwan, Greater ChinaTajikistanThailandThe former Yugoslav Republic of MacedoniaTimor LesteTogoTrinidad and TobagoTunisiaTurkeyTurkmenistanUgandaUkraineUnited Arab EmiratesUnited Kingdom of Great Britain and Northern IrelandUnited Republic of TanzaniaUnited States of AmericaUnited States Virgin IslandsUruguayUzbekistanVenezuela (Bolivarian Republic of)Viet NamYemenZambiaZimbabwe

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.USD

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option shouldalign with your consolidation approach to your Scope 1 and Scope 2 greenhouse gas inventory.Operational control

C1. Governance

C1.1

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(C1.1) Is there board-level oversight of climate-related issues within your organization?Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position ofindividual(s)

Please explain

Board Chair Oversight of climate related risks and opportunities by the Deloitte Global Board of Directors occurs through several committees and board interactions. Climate change is a topic that has appearedregularly on the agenda of the Societal Impact Council (SI Council). The SI Council is a senior leadership group focused on Deloitte’s wider ambition for its social impact and responsible businessagenda. Membership of the Council is drawn from the Deloitte Global Board of Directors, the Deloitte Global Executive and other senior leaders.. The Council is chaired by the Deloitte GlobalChairman. The Council meets quarterly and is accountable to the Deloitte Global Board/Executive and; decisions and recommendations are presented to the Deloitte Global Board/Executive at leastannually. Deloitte Global’s Risk Committee, a committee of the Deloitte Global Board, is tasked with risk management. Climate change risks are considered through their enterprise risk managementsystem.

C1.1b

(C1.1b) Provide further details on the board’s oversight of climate-related issues.

Frequencywith whichclimate-relatedissues are ascheduledagenda item

Governancemechanismsinto whichclimate-relatedissues areintegrated

Please explain

Scheduled –somemeetings

Monitoring andoverseeingprogress againstgoals and targetsfor addressingclimate-relatedissues

Climate change is a topic that has appeared regularly on the agenda of the Societal Impact Council (SI Council). The Council meets quarterly and its decisions andrecommendations are presented to the Board and Executive at least annually. A focus area for the SI Council during FY2018 was the development of carbon reduction goals in linewith the Paris Agreement. Deloitte Global’s Risk Committee is tasked with risk management. Risks associated with climate change, such as business interruption, are reviewed aspart of Deloitte Global's enterprise risk management system. During FY2018 Deloitte has also drafted disclosures in line with the Task Force on Climate-related FinancialDisclosures (“TCFD”) recommendations that cover the operations of Deloitte. Given the financial nature of the TCFD disclosures, Deloitte’s disclosure have been discussed withDeloitte Global’s Audit Committee, a committee of the Deloitte Global Board.

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s) Responsibility Frequency of reporting to the board on climate-related issues

Other, please specify (Societal Impact Council) Both assessing and managing climate-related risks and opportunities As important matters arise

C1.2a

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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate-related issues are monitored (do not include the names of individuals).

Management of climate-related risks and opportunities are conducted across three levels within Deloitte; at Deloitte Global, at the member firm level and at the country level.

At the Deloitte Global level, the Internal Sustainability leader (ISL) is responsible for aggregating greenhouse gas (GHG) emissions as reported from across Deloitte andreporting that information to stakeholders. The ISL also prepares an annual summary of climate-related risks, opportunities and actions for submission to the CDP based oninput from the member firms and reports regularly to the SI Council. The Deloitte Global Internal Sustainability function also supports capacity building and encourages thesharing of leading internal sustainability practices across member firms. Deloitte Global Internal Sustainability is part of Deloitte Global Brand. The Deloitte Global InternalSustainability leader reports up through four levels of management to the Deloitte Global Chief People and Purpose Officer. The Deloitte Global Chief People and PurposeOfficer reports to the Deloitte Global CEO and is also a member of the Deloitte Global Executive and is vice chair of the SI Council. Additional details regarding the SI Councilare as described in the response to question C1.1.a

Within member firms there are generally additional personnel assigned to manage internal sustainability matters including monitoring emissions and supporting action. Thereporting structure for these roles vary depending on factors such as the size of the member firm and the level of attention on climate change matters in the region buttypically include reporting up to an equity partner in the member firm.

Sustainability services also plays an important role at the member firm level with many member firms serving clients in addressing climate change. Practitioners involved inclient service are typically those best positioned to identify opportunities related to climate change. While client service personnel serve clients in their own member firms,opportunities across geographies are also coordinated through the Deloitte Global Sustainability Services leader.

Lastly, where member firms include more than one country, the member firm structure described above for managing internal sustainability and for serving clients may bereplicated within the country as well.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?Yes

C1.3a

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(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).

Who is entitled to benefit from these incentives?All employees

Types of incentivesMonetary reward

Activity incentivizedOther, please specify (Sustainability services)

CommentFor the purposes of this question, "all employees" refers to all people who are employed by or are partners of Deloitte member firms and who offer client services related tosustainability. Client service personnel in many Deloitte member firms are eligible for bonuses based on a variety of metrics, including sales. For practitioners in thesustainability and climate change practice areas, the sale of climate change services would be considered in establishing annual bonus awards.

Who is entitled to benefit from these incentives?Other, please specify (Eligible employees specified Member Firm)

Types of incentivesOther non-monetary reward

Activity incentivizedOther, please specify (Environmental issues / Culture Award)

CommentThe Deloitte China Culture Award Program recognizes and rewards employees for specific actions and contributions in line with the firm's values. Partners and staff cansubmit nominations for all Deloitte China staff across functions and individuals tackling environmental issues to achieve tangible impact meet the nomination criteria.Winners of the Culture Award receive an appreciation certificate and a gift.

Who is entitled to benefit from these incentives?Other, please specify (Eligible employees specified Member Firm)


Activity incentivizedBehavior change related indicator

CommentDeloitte Australia and Deloitte Belgium offer commuting benefits through discounted, or even free, tickets on public transport. Deloitte Germany has a car policy toencourage those with company cars to choose low emission vehicles by charging a fee for those exceeding a certain emissions target, and Deloitte Germany also usesnudges in its internal travel system before booking takes place – for example, suggestions are made to employees to share a taxi with others, or to consider using videotechnology instead of travelling.

Who is entitled to benefit from these incentives?Other, please specify (Managers and above in member firms)


Activity incentivizedEmissions reduction project

CommentDeloitte Finland has set a maximum emission level on all company cars and if an employee selects a car with a lower emissions level the fuel costs are covered.

C2. Risks and opportunities

C2.1

(C2.1) Describe what your organization considers to be short-, medium- and long-term horizons.

From(years)

To(years)

Comment

Short-term

0 3 Deloitte member firms continually monitor risk and annually update their Enterprise Risk Framework. Deloitte annually reviews priority business risks, and is constantly monitoringemerging risks and trends, which might impact its business model and operations. Time horizons for evaluating risks and opportunities can vary based on the area of concern, forexample a long-term horizon for a fast-moving area such as technology may be considerably shorter than for other areas of the business. The time frames shown here were used inconsidering overall climate risks and opportunities across the broader organization.

Medium-term


Long-term


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C2.2

(C2.2) Select the option that best describes how your organization's processes for identifying, assessing, and managing climate-related issues are integrated intoyour overall risk management.Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes

C2.2a

(C2.2a) Select the options that best describe your organization's frequency and time horizon for identifying and assessing climate-related risks.

Frequencyofmonitoring

How far intothe futureare risksconsidered?

Comment

Row1

Annually 3 to 6 years Deloitte Global and each of the Deloitte member firms have developed and implemented an Enterprise Risk Framework (ERF) designed to identify, assess, prioritize, manage, andmonitor risks that could have an impact on the ability of Deloitte member firms (and the Deloitte network as a whole) to achieve their strategies and objectives, including theprotection of Deloitte's reputation and brand and the delivery of consistent, high-quality services. ERF policies and guidance are contained in the Deloitte Global Policies Manual. Inaddition, in 2018 Deloitte Global commenced work to be able to report in line with the recommendations on the Task Force on Climate Change-related Financial Disclosures(TCFD). In working through the TCFD recommendations, increased discussions were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climatechange risk and it is anticipated these discussions will be built upon in future years.

C2.2b

(C2.2b) Provide further details on your organization’s process(es) for identifying and assessing climate-related risks.

Deloitte has a robust process for identifying, assessing and managing risks, both at the member firm level and at the Deloitte Global level. Deloitte Global and each of theDeloitte member firms have developed and implemented an Enterprise Risk Framework (ERF) designed to identify, assess, prioritize, manage, and monitor risks that couldhave an impact on the ability of Deloitte member firms (and the Deloitte network as a whole) to achieve their strategies and objectives, including the protection of Deloitte'sreputation and brand and the delivery of consistent, high-quality services.

Deloitte has established a dialogue process where every year member firms are consulted and required to update their ERF. The result of the consultation is then reportedback to the Deloitte Global Executive and Risk Committee. They are responsible for deciding whether to include new risks in the Deloitte Global ERF and identifying prioritybusiness risks, based on the likelihood of a risk occurring and its impact in the context of

Deloitte’s ability to mitigate that risk. Priority risks are ones which, if materialized, would almost certainly prevent Deloitte from achieving its business objectives or deliveringon its strategy, priorities and key focus areas.

In FY2018 climate change did not meet the threshold for a priority business risk. Because of this no additional assessment of climate risk was done by Deloitte Global. Insteaddetailed climate change risks and opportunities were assessed by Deloitte Global Internal Sustainability subject matter specialists. And in 2018 Deloitte Global commencedwork to be able to report in line with the recommendations on the Task Force on Climate Change-related Financial Disclosures (TCFD). In working through the TCFDrecommendations increased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climate change risk. Engagement betweenDeloitte Global Risk and Deloitte Global Internal Sustainability regarding climate change is anticipated to grow in future years as a result of reporting in line with the TCFDrecommendations.

C2.2c

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(C2.2c) Which of the following risk types are considered in your organization's climate-related risk assessments?

Relevance&inclusion

Please explain

Currentregulation

Relevant,alwaysincluded

As noted above, in FY2018 climate change did not meet the threshold for a priority business risk in the Deloitte Global Enterprise Risk Framework. As such, this risk type was notseparately considered by Deloitte Global. Management and monitoring of climate change risks, therefore, take place through typical business processes, for example monitoring ofemerging regulations, operational processes, trend analysis and general marketplace interactions both at the member firm and Deloitte Global level. In 2018 Deloitte Global commencedwork to be able to report in line with the recommendations of the Task Force on Climate Change-related Financial Disclosures (TCFD). In working through the TCFD recommendationsincreased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climate change risk.

Emergingregulation


As noted above, in FY2018 climate change did not meet the threshold for a priority business risk in the Deloitte Global Enterprise Risk Framework. As such, this risk type was notseparately considered by Deloitte Global. Management and monitoring of climate change risks, therefore, take place through typical business processes, for example monitoring ofemerging regulations, operational processes, trend analysis and general marketplace interactions both at the member firm and Deloitte Global level. In 2018 Deloitte Global commencedwork to be able to report in line with the recommendations of the Task Force on Climate Change-related Financial Disclosures (TCFD). In working through the TCFD recommendationsincreased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climate change risk. Concerning emerging regulation, over the past fewyears taxes on GHG emissions have started to emerge in various jurisdictions. Deloitte could be affected by carbon taxes through its use of transport services and member firm vehiclefleets. Under certain scenarios the cost of flights could increase through imposition of carbon taxes on airline emissions or aviation fuels. Sweden, for example, has already implemented acarbon tax on passengers flying to and from the country. Increased costs such as these could result in Deloitte needing to consider a more localized business model and expand the usevideoconferencing.

Technology Relevant,alwaysincluded


Legal Relevant,alwaysincluded


Market Relevant,alwaysincluded


Reputation Relevant,alwaysincluded

As noted above, in FY2018 climate change did not meet the threshold for a priority business risk in the Deloitte Global Enterprise Risk Framework. As such, this risk type was notseparately considered by Deloitte Global. Management and monitoring of climate change risks, therefore, take place through typical business processes, for example monitoring ofemerging regulations, operational processes, trend analysis and general marketplace interactions both at the member firm and Deloitte Global level. In 2018 Deloitte Global commencedwork to be able to report in line with the recommendations of the Task Force on Climate Change-related Financial Disclosures (TCFD). In working through the TCFD recommendationsincreased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climate change risk. Reputational risk arises from changing stakeholder’sperceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy. Professional services firms rely heavily on travel to deliver their services andexternal stakeholders may look to understand how Deloitte is addressing its climate impact.

Acutephysical


As noted above, in FY2018 climate change did not meet the threshold for a priority business risk in the Deloitte Global Enterprise Risk Framework. As such, this risk type was notseparately considered by Deloitte Global. Management and monitoring of climate change risks, therefore, take place through typical business processes, for example monitoring ofemerging regulations, operational processes, trend analysis and general marketplace interactions both at the member firm and Deloitte Global level. In 2018 Deloitte Global commencedwork to be able to report in line with the recommendations of the Task Force on Climate Change-related Financial Disclosures (TCFD). In working through the TCFD recommendationsincreased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climate change risk. Physical risk arising from the increased severity ofextreme weather events is another potential major risk area. These types of events include forest fires, cyclones, typhoons, hurricanes and associated impacts such as flooding. If theseverity and frequency of these types of events increase due to climate change, Deloitte could be financially impacted for the following reasons: A) Increased operating costs or loss ofrevenue affecting Deloitte professionals – examples could include loss of employee productivity due to displacement, office closures or travel disruptions and actions or programsundertaken to address safety and security of employees and their families; B) Increased capital costs – examples could include repairing damage to facilities, improving the safety ofbuildings and data centers, increasing need to build system redundancy; C) Increased insurance premiums or potentially reduced availability of insurance on assets considered to be in“high-risk” locations; D) Loss of revenue due to the impacts on clients which prevent or postpone service delivery temporarily or permanently.

Chronicphysical


As noted above, in FY2018 climate change did not meet the threshold for a priority business risk in the Deloitte Global Enterprise Risk Framework. As such, this risk type was notseparately considered by Deloitte Global. Management and monitoring of climate change risks, therefore, take place through typical business processes, for example monitoring ofemerging regulations, operational processes, trend analysis and general marketplace interactions both at the member firm and Deloitte Global level. In 2018 Deloitte Global commencedwork to be able to report in line with the recommendations of the Task Force on Climate Change-related Financial Disclosures (TCFD). In working through the TCFD recommendationsincreased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climate change risk. Physical risk arising from sea level rise is a potentialrisk area. These types of events include repeated flooding. If the severity and frequency of these types of events increase due to climate change, Deloitte could be financially impactedfor the following reasons: A) Increased operating costs or loss of revenue affecting Deloitte professionals – examples could include loss of employee productivity due to displacement,office closures or travel disruptions and actions or programs undertaken to address safety and security of employees and their families; B) Increased capital costs – examples couldinclude repairing damage to facilities, improving the safety of buildings and data centers, increasing need to build system redundancy; C) Increased insurance premiums or potentiallyreduced availability of insurance on assets considered to be in “high-risk” locations; D) Loss of revenue due to the impacts on clients which prevent or postpone service deliverytemporarily or permanently.

Upstream Relevant,alwaysincluded


Downstream Relevant,alwaysincluded


C2.2d

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(C2.2d) Describe your process(es) for managing climate-related risks and opportunities.

Deloitte has a robust process for identifying, assessing and managing risks, both at the member firm level and at the level of Deloitte Global. Deloitte has established adialogue process where every year member firms are consulted and required to update their Enterprise Risk Framework. The result of the consultation is then reported backto the Deloitte Global Executive and Risks Committee. They are responsible for deciding whether to include new risks in the Deloitte Global Enterprise Risk Framework andidentifying priority business risks, based on the likelihood of a risk occurring and its impact in the context of Deloitte’s ability to mitigate that risk. Priority risks are ones which, ifmaterialized, would almost certainly prevent Deloitte from achieving its business objectives or delivering on its strategy, priorities and key focus areas.

Climate-related risks are a distinct category in the Deloitte risk universe, but in FY2018, climate change did not meet the threshold for a priority business risk in the DeloitteGlobal Enterprise Risk Framework. Management and monitoring of climate change risks, therefore, take place through typical business processes, for example monitoring ofemerging regulations, operational processes, trend analysis and general marketplace interactions both at the member firm and Deloitte Global level. In 2018, Deloitte Globalcommenced work to be able to report in line with the recommendations of the Task Force on Climate Change-related Financial Disclosures (TCFD). In working through theTCFD recommendations increased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climate change risk and it isanticipated these discussions will be built upon in future years.

Opportunities related to climate change are predominantly identified at the member firm level as a result of involvement by client service personnel in the marketplace and bytheir interactions with clients and other key stakeholders. Member firm organizational structures such as industry groups and service lines enable sharing of observations thatallow for the recognition of trends and identification of business opportunities. Recognition of broader opportunities typically results from numerous member firms recognizingsimilar opportunities.

C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business?Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.

IdentifierRisk 1

Where in the value chain does the risk driver occur?Direct operations

Risk typeTransition risk

Primary climate-related risk driverPolicy and legal: Increased pricing of GHG emissions

Type of financial impactIncreased operating costs (e.g., higher compliance costs, increased insurance premiums)

Company- specific descriptionOver the past few years, taxes on greenhouse gas (GHG) emissions have started to emerge in various jurisdictions. Deloitte professionals travel frequently by air and landfor business needs. Deloitte could be affected by carbon taxes through its use of transport services and member firm vehicle fleets.

Time horizonCurrent

LikelihoodVirtually certain

Magnitude of impactLow

Are you able to provide a potential financial impact figure?No, we do not have this figure

Potential financial impact figure (currency)<Not Applicable>

Potential financial impact figure – minimum (currency)<Not Applicable>

Potential financial impact figure – maximum (currency)<Not Applicable>

Explanation of financial impact figureUnder certain scenarios the cost of flights could increase through imposition of carbon taxes on airline emissions or aviation fuels. Sweden, for example, has alreadyimplemented a carbon tax on passengers flying to and from the country. These increased costs could encourage Deloitte to consider a more localized business model andexpand the use videoconferencing. As part of our TCFD analysis Deloitte is estimating the financial impacts of risks, but the quantitative analysis is not yet finalized.

Management methodTo manage this risk, some Deloitte member firms are working on reducing travel and increasing the fuel efficiency of vehicle fleets. Deloitte has also actively invested invideoconferencing and in providing laptops and virtual private network (VPN) access to enhance virtual connectivity. Deloitte Global also monitors aviation developments

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around addressing climate change to understand industry efforts to address climate change. The management costs associated with this include resource costs andimplementation costs for change management. These costs are typically offset, at least partially, by travel reductions. Costs are also incurred for increasing and enhancingteleconferencing capabilities that require investment in technology and support resources.

Cost of management0

Commentcost of management

IdentifierRisk 2

Where in the value chain does the risk driver occur?Customer


Primary climate-related risk driverPolicy and legal: Mandates on and regulation of existing products and services


Company- specific descriptionKey clients may require Deloitte to set carbon reduction goals as a contract requirement.

Time horizonShort-term







Explanation of financial impact figureCosts could increase due to the need for additional staff to manage reporting and promote behavioral changes. Operational costs could increase due to premiumsassociated with leases for high efficiency or green buildings, increased costs for emission reductions or offset purchases. As part of our TCFD analysis Deloitte isestimating the financial impacts of risks, but the quantitative analysis is not yet finalized

Management methodTo manage this risk, Deloitte annually collects and reports information on its overall energy usage and greenhouse gas (GHG) emissions. It also has initiatives focused onreducing energy usage and greenhouse gas emissions. These are described elsewhere in this response. The management costs associated with Deloitte’s measurementand with engagement are for human resources dedicated to internal sustainability and licensing fees for software. Aggregated Deloitte costs include software licensing feesand resources to manage the data collection and reporting process are estimated in excess of $1,000,000 per year. Additional staff could be required to manage andpromote emissions reduction activities

Cost of management1000000

Comment

IdentifierRisk 3


Risk typePhysical risk

Primary climate-related risk driverAcute: Increased severity of extreme weather events such as cyclones and floods

Type of financial impactReduced revenues from lower sales/output

Company- specific descriptionFlight delays and cancellations are likely to increase due to the weather impacts associated with climate change. Because Deloitte practitioners can work on their laptopsfrom virtually anywhere, the revenue impact of the flight delays is somewhat mitigated. There are still times, however, when flight disruptions are such that productivity isaffected.

Time horizonCurrent

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LikelihoodMore likely than not

Magnitude of impactMedium





Explanation of financial impact figureIt is impossible to predict the frequency and occurrence of these disruptions. Additionally, flight delays or cancellations may result in additional expenses such as nights inhotels, dinners or taxi expenses. As part of our TCFD analysis Deloitte is estimating the financial impacts of risks, but the quantitative analysis is not yet finalized

Management methodTo manage this risk, Deloitte member firms are working on reducing travel and increasing the fuel efficiency of vehicle fleets. Deloitte has also actively invested invideoconferencing and in providing laptops and virtual private network (VPN) access to enhance virtual connectivity. Deloitte Global also monitors aviation developmentsaround addressing climate change to understand industry efforts to address climate change. The management costs associated with this include resource costs andimplementation costs for change management. These costs are typically offset, at least partially, by travel reductions. Costs are also incurred for increasing and enhancingteleconferencing capabilities that require investment in technology and support resources.

Cost of management0

CommentCosts are not quantified at this time.

IdentifierRisk 4



Primary climate-related risk driverAcute: Increased severity of extreme weather events such as cyclones and floods

Type of financial impactReduced revenue from decreased production capacity (e.g., delayed planning approvals, supply chain interruptions)

Company- specific descriptionDeloitte offices and professionals have been, and will likely continue to be, impacted by extreme weather events such as hurricanes, cyclones, flooding, and droughts. Anincrease in the severity and frequency of extreme weather events is associated with climate change. The degree to which Deloitte is affected depends on the location ofDeloitte offices, professionals’ homes and locations of client engagements as well as the severity of the event and the preparedness of the community.

Time horizonCurrent


Magnitude of impactMedium-low





Explanation of financial impact figureThe degree to which Deloitte is affected depends on the location of Deloitte offices, professionals’ homes and locations of client engagements as well as the severity of theevent and the preparedness of the community. These costs may arise from loss of productivity due to disruption in the lives of Deloitte professionals, impact to Deloittefacilities, and impacts at client locations which disrupt service delivery.

Management methodThe variety of services, locations, and clients across the network of member firms reduces the potential impact of this risk. Certain losses may be covered by insurance,although insurance costs may rise over time due to increased climate-related claims. As these types of events and impacts become better understood, real estate strategywill likely increasingly consider their impact in choosing locations.

Cost of management0

Comment

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Costs are not quantified at this time.

IdentifierRisk 5



Primary climate-related risk driverChronic: Rising sea levels

Type of financial impactIncreased insurance premiums and potential for reduced availability of insurance on assets in "high-risk" locations

Company- specific descriptionDeloitte operates in more than 150 countries across the globe and some of our offices lie in coastal areas. Sea level rise may cause property loss and require relocation ofoffices and personnel. Financial implications due to the risk of sea level rise include destruction of property and increases in insurance premiums. The degree to whichDeloitte is affected depends on the location of Deloitte offices as well as the severity of the event.

Time horizonLong-term







Explanation of financial impact figureFinancial implications due to the risk of sea level rise include destruction of property and increases in insurance premiums. The degree to which Deloitte is affected dependson the location of Deloitte. As part of our TCFD analysis Deloitte is estimating the financial impacts of risks, but the quantitative analysis is not yet finalized

Management methodTo manage this risk, Deloitte member firms hold insurance, often maintain short to mid-term office leases, and have business continuity plans in place. Additionally, DeloitteGlobal’s Enterprise Risk Framework requires evaluation of risks and associated impacts on a periodic basis. The costs associated with these actions include the insurancepolicies, office portfolio management, and the resources required for the business continuity planning process and management, is a standard cost of doing business forDeloitte and is not separately quantifiable.

Cost of management0


IdentifierRisk 6

Where in the value chain does the risk driver occur?Customer


Primary climate-related risk driverReputation: Shifts in consumer preferences

Type of financial impactReduced revenue from decreased demand for goods/services

Company- specific descriptionReputational risk arises from changing stakeholder’s perceptions of an organization’s contribution to or detraction from the transition to a lower-carbon economy. Deloitterelies heavily on travel to deliver services. Changing consumer preference could diminish the attractiveness of this delivery model.

Time horizonCurrent

LikelihoodUnlikely

Magnitude of impactMedium-low


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Explanation of financial impact figureClients looking for sustainability services may expect Deloitte to have implemented leading practices and policies addressing climate change. If Deloitte is unable to provideevidence of enacting such measures, clients may choose competitors when seeking sustainability services. Similarly, clients are increasingly looking to engage withsuppliers whose values align with their own. Competitive bids and supplier questionnaires increasingly inquire about sustainability and climate change action, even whenthe services requested are unrelated to these areas. As responses increasingly factor into supplier selection processes, Deloitte could lose opportunities if it is rated lowerin these areas relative to competitors There could also be a financial risk associated with increased recruiting costs. This is an unknown financial implication.

Management methodTo manage this risk, Deloitte member firms have developed sustainability and climate change professional services for clients and have embedded climate considerationsinto other client services, such as those related to energy management, supply chain, and strategy development. Ongoing interaction with clients and key stakeholders isalso used to help Deloitte better understand expectations regarding member firms’ own sustainability efforts and to shape reporting. While internal sustainability effortsrequire investments in resources and systems such as carbon accounting software, the services provided to clients are a source of revenue for member firms. Costs includelicensing fees and resources to manage the data collection and reporting process at both the member firm and Deloitte Global-level are estimated in excess of $1,000,000per year.

Cost of management1000000

Comment

IdentifierRisk 7

Where in the value chain does the risk driver occur?Supply chain


Primary climate-related risk driverMarket: Other

Type of financial impactOther, please specify (Market - Increased burden on energy suppliers drives increased operating costs (e.g., energy costs))

Company- specific descriptionActions taken by national governments to meet climate change commitments may increase financial costs on electricity suppliers that are then passed through to Deloitte.


LikelihoodVery likely






Explanation of financial impact figureThe risk from international climate agreements, such as those resulting from COP21, is more likely than not to impact Deloitte; and the estimated financial impact wouldlikely be a minimal increase to costs. The magnitude of this risk is considered low because, currently, electricity costs are less than 5% of operating costs These costswould increase if suppliers who face regulation, particularly utility providers, pass through the financial impacts they would incur to Deloitte.

Management methodTo manage this risk, Deloitte annually collects information on its overall energy usage and greenhouse gas emissions and has initiatives focused on reducing energy usageand greenhouse gas emissions as described elsewhere in this response. In addition, Deloitte monitors key international policymaking forums, such as those hosted by theUnited Nations Framework Convention on Climate Change, in order to stay connected to the latest developments that could affect Deloitte operations or those of clients orsuppliers. The costs associated with Deloitte’s engagement with international climate change activities are for human resources dedicated to internal sustainability forprofessional to attend industry events and subscribe to information services and associations.

Cost of management0


IdentifierRisk 8

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Primary climate-related risk driverPolicy and legal: Other


Company- specific descriptionThe European Union's Renewable energy directive sets a binding goal for energy and fuel consumption from renewable sources by 2020. To achieve this, EU countries inwhich Deloitte member firms operate have adopted national renewable energy action plans, including sectorial goals for electricity, heating and cooling, and transport.








Explanation of financial impact figureThe cost of energy from renewables may be higher than the cost of conventional electricity so electricity prices may increase. The magnitude of this risk is considered lowbecause, currently, energy costs are less than 5% of operating costs and the potential price premium would represent a fraction of the current energy costs. Additionally,some member firms including Deloitte Germany, UK, Austria, and the Netherlands have chosen to already purchase renewable energy for all or a significant portion of theirdemand.

Management methodContinued emphasis on reducing energy demand through office design and operation and through behavior modification. The management costs associated with thisinclude resource costs and implementation costs for efficiency improvements, which are typically offset, at least partially, by reduced energy usage.

Cost of management0


C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business.

IdentifierOpp1

Where in the value chain does the opportunity occur?Direct operations

Opportunity typeEnergy source

Primary climate-related opportunity driverUse of new technologies

Type of financial impactReduced operational costs (e.g., through use of lowest cost abatement)

Company-specific descriptionBecause Deloitte practitioners can work on their laptops from virtually anywhere, we can leverage new technologies to connect with our clients. While videoconferencing isused frequently, its use could be increased to reduce travel emissions, and this opportunity could grow more viable as carbon taxes increase in application and dollar value.

Time horizonCurrent

CDP Page of 8714

LikelihoodAbout as likely as not






Explanation of financial impact figureSavings may result from reduced travel costs. As part of our TCFD analysis Deloitte is estimating the financial impacts of opportunities, but the quantitative analysis is notyet finalized

Strategy to realize opportunitySome Deloitte member firms are working on reducing travel and actively investing in videoconferencing and in providing laptops and virtual private network (VPN) access toenhance virtual connectivity. The management costs associated with this include resource costs and implementation costs for change management. These costs aretypically offset, at least partially, by travel reductions. Costs are also incurred for increasing and enhancing teleconferencing capabilities that require investment intechnology and support resources.

Cost to realize opportunity0

Comment

IdentifierOpp2

Where in the value chain does the opportunity occur?Customer

Opportunity typeProducts and services

Primary climate-related opportunity driverDevelopment of new products or services through R&D and innovation

Type of financial impactIncreased revenue through demand for lower emissions products and services

Company-specific descriptionEmission reduction agreements can lead to a variety of opportunities for Deloitte member firms to provide services to clients in both the private and public sectors as theyseek to reduce emissions.

Time horizonCurrent







Explanation of financial impact figureVoluntary agreements create opportunities for Deloitte member firms to provide services to clients around management and reporting of carbon emissions. As morecompanies choose to measure and manage their carbon footprint, engagement opportunities for Deloitte member firms are anticipated to increase. As part of our TCFDanalysis Deloitte is estimating the financial impacts of opportunities, but the quantitative analysis is not yet finalized.

Strategy to realize opportunityIn order to manage this opportunity, Deloitte member firms have made strategic acquisitions over the last several years of specialty consulting firms. Additionally, Deloitteprofessionals also frequently participate in committees and working groups developing voluntary standards. The steps taken by Deloitte member firms to grow theircapabilities in this area are material investments that position member firms to generate increased revenue streams from these service lines. Cost can vary from severalthousand dollars for activities related to committees and working groups on voluntary standards to more than a million for acquisition costs.


Comment

Identifier

CDP Page of 8715

Opp3




Type of financial impactBetter competitive position to reflect shifting consumer preferences, resulting in increased revenues

Company-specific descriptionCertain industries have been identified as likely to be highly impacted either due to climate change or by a shift towards a lower carbon economy. These include, amongothers, energy, mining, insurance, agriculture and transportation. These challenges represent opportunities for Deloitte to grow revenues by helping clients in these sectorsaddress the climate change impacts on their business.

Time horizonCurrent







Explanation of financial impact figureChanges in natural resources due to climate change may lead to opportunities for Deloitte member firms to increase revenue by providing resource managementprofessional services to clients in these certain industries. As part of our TCFD analysis Deloitte is estimating the financial impacts of opportunities, but the quantitativeanalysis is not yet finalized.

Strategy to realize opportunityDeloitte member firm professionals monitor the broader environmental trends such as resource availability to determine whether there are opportunities to provideadditional value-added services to member firm clients. There are no additional costs associated with these actions at the moment as this is embedded in the work thatDeloitte currently delivers to the marketplace.


Comment

IdentifierOpp4

Where in the value chain does the opportunity occur?Direct operations

Opportunity typeResource efficiency

Primary climate-related opportunity driverMove to more efficient buildings

Type of financial impactReduced operating costs (e.g., through efficiency gains and cost reductions)

Company-specific descriptionMost Deloitte offices are leased rather than owned. As leases turn over, Deloitte has the opportunity to choose more efficient properties thereby reducing energyconsumption in the medium to long-term.

Time horizonCurrent






CDP Page of 8716


Explanation of financial impact figureIf energy consumption is reduced savings are realized from both lower energy costs and avoided carbon emissions. As part of our TCFD analysis Deloitte is estimating thefinancial impacts of opportunities, but the quantitative analysis is not yet finalized.

Strategy to realize opportunityAs new spaces are leased, building energy efficiency is one of several factors considered. There are no additional costs associated with these actions as this is embeddedin current practices.


Comment

IdentifierOpp5





Company-specific descriptionDeloitte member firms offer sustainability services which have the potential to grow as clients seek to respond to and report on climate change risks. Deloitte sustainabilityrelated services cover a wide range of practice areas including sustainability strategy, sustainable finance, innovation and R&D, renewable energy, and smart cities. Attestservices are also offered to clients reporting on their actions and emissions (subject to independence and other regulatory requirements). Growth in these services isexpected, particularly under scenarios requiring large reductions in carbon emissions.

Time horizonCurrent







Explanation of financial impact figureMany marketplace changes such as cap and trade schemes and carbon taxes, present Deloitte member firms with a variety of opportunities to offer new or incrementalservices to resulting in revenue generation. For example, clients may need assistance with their compliance risks and regulatory processes when new schemes go intoeffect. As part of our TCFD analysis Deloitte is estimating the financial impacts of opportunities, but the quantitative analysis is not yet finalized.

Strategy to realize opportunityWhen evaluating new opportunities, member firm practitioners will typically form working groups to think through ways that new services can be developed due to changesin the regulatory or other external landscapes. The costs associated with efforts to build out new service offerings in this area are the incremental cost for professionals toadapt core offerings to the particular market demands.


Comment

IdentifierOpp6



Primary climate-related opportunity driverShift in consumer preferences


Company-specific description

CDP Page of 8717

Deloitte sees an opportunity for member firms to be trusted advisors to clients on ways to manage changing consumer behavior in light of climate change.

Time horizonCurrent







Explanation of financial impact figureAs consumer behavior changes in response to increased scrutiny around environmental sustainability, Deloitte member firms anticipate increases in revenue-generatingopportunities for client services such as strategy development. As part of our TCFD analysis Deloitte is estimating the financial impacts of opportunities, but the quantitativeanalysis is not yet finalized.

Strategy to realize opportunityMember firms constantly monitor the shifting consumer landscape to capitalize on the opportunities that arise to provide services to clients that help them evolveaccordingly. Costs are associated with various studies and surveys to identify changes and trends in consumer behavior.


Comment

C2.5

(C2.5) Describe where and how the identified risks and opportunities have impacted your business.

Impact Description

Productsandservices

Impacted • Physical Risk - Acute: Increased severity of extreme weather events: Severe weather events have impacted Deloitte service delivery by disrupting travel, closures at the client site orreduced productivity due to employees needing to address personal impacts. Because Deloitte practitioners can work on their laptops from virtually anywhere, the revenue impact of the flightdelays is somewhat mitigated, but there are still times when flight disruptions are such that productivity is affected. Additionally, flight delays or cancellations have resulted in additionalexpenses such as nights in hotels, dinners or taxi expenses. • Changes in natural resources due to climate change have led to opportunities for Deloitte member firms to increase revenue byproviding professional services to clients. Deloitte member firms offer sustainability services which have grown as clients seek to respond to and report on climate change risks.

Supplychainand/orvaluechain

Impacted • Transition Risk - Market: Actions taken by national governments to meet climate change commitments increase financial costs on electricity suppliers that are then passed through to endusers like Deloitte resulting in increased costs. The magnitude of this risk is low because, currently, electricity costs are less than 5% of operating costs.

Adaptationandmitigationactivities

Not yetimpacted

Chronic physical risks could result in Deloitte changing office locations either due to direct impacts or impacts to clients. Given typical lease terms this is considered a long-term risk (greaterthan 10 years). Deloitte member firms offer sustainability services which have grown as clients seek to respond to and report on climate change risks. Services related to adaptation andmitigation could grow in the medium to long term.

Investmentin R&D

Not yetimpacted

R&D related to climate change is an area where Deloitte may choose to produce more published research, develop more services as well as invest in technology.

Operations Impactedfor somesuppliers,facilities,orproductlines

Physical Risk - Acute: Increased severity of extreme weather events: Extreme weather events have disrupted Deloitte operations by requiring office closures. Deloitte offices andprofessionals have been, and will likely continue to be, impacted by extreme weather events such as hurricanes, cyclones, flooding, and droughts. An increase in the severity and frequencyof extreme weather events is associated with climate change. The degree to which Deloitte is affected depends on the location of Deloitte offices, professionals’ homes and locations of clientengagements as well as the severity of the event and the preparedness of the community. Costs may arise from loss of productivity due to disruption in the lives of Deloitte professionals,impact to Deloitte facilities, and impacts at client locations which disrupt service delivery. Also, additional costs may be incurred as we implement our carbon reduction goals across ourglobal operations. There is an increase in resources needed for both change management and changes in operations. These costs may be offset by carbon reduction activities will likelyalso reduce costs, such as reduction in electricity consumption. As part of our TCFD analysis Deloitte is estimating the financial impacts of opportunities, but the quantitative analysis is notyet finalized.

Other,pleasespecify

Impacted Other, please specify: (Policy and legal: Increased pricing of GHG emissions) Over the past few years, taxes on GHG emissions have started to emerge in various jurisdictions. Deloitteprofessionals travel frequently by air and land for business needs. Deloitte could be affected by carbon taxes through its use of transport services and member firm vehicle fleets. Undercertain scenarios the cost of flights could increase through imposition of carbon taxes on airline emissions or aviation fuels. Sweden, for example, has already implemented a carbon tax onpassengers flying to and from the country. As part of our TCFD analysis Deloitte is estimating the financial impacts of opportunities, but the quantitative analysis is not yet finalized.

C2.6

CDP Page of 8718

(C2.6) Describe where and how the identified risks and opportunities have been factored into your financial planning process.

Relevance Description

Revenues Impacted As is done for all business areas, revenues are projected for sustainability services and are included in overall revenue projections. Deloitte has also analyzed the risk of flight delays andflight cancellations, which are likely to increase due to the weather impacts associated with climate change. Because Deloitte practitioners can work on their laptops from virtuallyanywhere, the revenue impact of the flight delays is somewhat mitigated. There are still times, however, when flight disruptions are such that productivity is affected. It is impossible topredict the frequency and occurrence of these disruptions. A simplified assumption of all client service personnel losing one hour of billable time annually at an assumed bill rate of $100per hour results in an annual loss in revenue of USD $24 million.

Operatingcosts

Impacted The costs of greenhouse gas management and reporting are included in operating budgets. Deloitte’s operational costs are affected by severe or extreme weather events.

Capitalexpenditures/ capitalallocation

Notevaluated

Acquisitionsanddivestments

Notevaluated

Access tocapital

Notevaluated

Assets Notevaluated

Liabilities Notevaluated

Other Notevaluated

C3. Business Strategy

C3.1

(C3.1) Are climate-related issues integrated into your business strategy?Yes

C3.1a

(C3.1a) Does your organization use climate-related scenario analysis to inform your business strategy?No, but we anticipate doing so in the next two years

C3.1c

CDP Page of 8719

(C3.1c) Explain how climate-related issues are integrated into your business objectives and strategy.

Deloitte Global has a corporate responsibility and sustainability vision that includes consideration of both the internal operations of the Deloitte network and the sustainabilityand climate change services that Deloitte member firms provide to clients. To further that vision, each member firm is expected to establish and communicate a corporateresponsibility policy following a set of defining principles that includes advocating sustainable use of natural resources and respect for the environment. The intended impactis a globally consistent approach to corporate responsibility. Deloitte seeks to meet expectations for a responsible brand for clients, personnel, and society. Climate changerisks have influenced Deloitte Global to develop carbon reduction goals that are in-line with the Paris Agreement, using a FY2017 baseline.

Many Deloitte member firms focus on reducing impacts through programs, projects, and employee engagement. Programs are focused on measuring and reducinggreenhouse gas emissions and other environmental impacts related to business services and office functions. These programs align to Deloitte's focus on managing climatechange risks. For example, multiple member firms have instituted policies that provide incentives for those eligible for company vehicles to choose lower emission models.Certain Deloitte member firms have also built up sustainability and climate change professional services. These services include: resource excellence, sustainability reporting,assurance and compliance, sustainable supply chain, sustainability finance, governance and risk intelligence, and stakeholder engagement.

Deloitte professionals continued to provide perspectives to clients and the public on climate change via point-of-view pieces. During FY2018 these ranged from webcasts tonews articles to formal reports. During FY19, Deloitte reported on FY2018 corporate responsibility and sustainability activities in the Deloitte Global Impact Report 2018 usingthe Global Reporting Initiative framework. Additionally, many member firms continue to produce annual reports on sustainability that included greenhouse gas emissions.

Deloitte member firms plan for both short- and long-term implications of climate change. Internally, Deloitte Global's Security Office encourages all Deloitte member firms toimplement crisis management, business continuity, and disaster recovery plans. As part of the process to develop these plans, member firms are expected to perform anassessment to identify key areas of risk. Each Deloitte member firm is responsible for creating its own plan that incorporates identified risks, which may include thoseassociated with climate change. Annually, Deloitte member firms report carbon emissions as part of an internal commitment to measure climate change impacts. DuringFY15, Deloitte Global started the implementation of a new carbon reporting software and all reporting member firms now use the system for reporting. The implementationand licensing of the software illustrate the strategic importance of ongoing measurement and reporting of emissions.

Actions taken by national governments to meet climate change commitments under COP21 or other agreements may increase financial costs for suppliers that are thenpassed through to Deloitte. To manage this risk, Deloitte Global annually collects and reports information on overall energy usage and greenhouse gas emissions. Certainmember firms have also implemented initiatives focused on reducing energy usage and greenhouse gas emissions. In addition, Deloitte follows outcomes from keyinternational policymaking forums, such as those hosted by the United Nations Framework Convention on Climate Change, to stay informed on the latest developments thatcould affect Deloitte operations or those of clients or suppliers. As a result of the increased action on climate change, Deloitte member firms may realize opportunities toprovide strategic consulting as well as specialized professional services to clients as they address climate change. In addition, member firms proactively engage clients onthese topics to understand services that may be needed to support them in dealing with regulatory change or to take voluntary steps to mitigate climate change.

Deloitte’s sustainability and climate change services demonstrates the robust positioning of Deloitte in the marketplace. During the reporting period, a group of over 800Deloitte sustainability specialists were associated with the Deloitte Sustainability client services. These Deloitte professionals were committed to helping clients transition tosustainable business models and practices designed to deliver top- and bottom-line growth for the long term. Member firms' sustainability and climate change service offeringsare designed to help clients as they strive to enhance shareholder value, mitigate business risk, and drive growth, efficiency and innovation through improved environmental,social and financial performance. This work represents one of the most important contributions that Deloitte makes to the sustainability agenda.

C3.1g

(C3.1g) Why does your organization not use climate-related scenario analysis to inform your business strategy?

In 2018, Deloitte Global commenced work to be able to report in line with the recommendations of the Task Force on Climate Change-related Financial Disclosures (TCFD).In working through the TCFD recommendations increased discussion were held between Deloitte Global Internal Sustainability and Deloitte Global Risk around climatechange risk and scenario analysis was commenced but is not yet concluded. It is anticipated these discussions will be built upon in future years.

C4. Targets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year?Both absolute and intensity targets

C4.1a

CDP Page of 8720

(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.

Target reference numberAbs 1

ScopeScope 1

% emissions in Scope75

Targeted % reduction from base year11

Base year2017

Start year2019

Base year emissions covered by target (metric tons CO2e)38502

Target year2025

Is this a science-based target?Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science-Based Targets initiative

% of target achieved0

Target statusNew

Please explainDeloitte’s absolute global carbon goal is an 11% reduction in fleet emissions by FY2025 over a FY2017 base year. In conjunction with the intensity-based goal (36% perunit of area reduction in our building emissions) listed in C4.1b, below, Global goals were formulated in line with the methodologies put forth by the Science-Based Targetsinitiative (SBTi), aimed at limiting emissions in accordance with the Paris Climate Agreement. This flee goal was set using the SBTi-approved Absolute EmissionsContraction method.

C4.1b

(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s).

Target reference numberInt 1

ScopeScope 1 +2 (market-based)



MetricMetric tons CO2e per square meter*

Base year2017

Start year2019

Normalized base year emissions covered by target (metric tons CO2e)0.0694

Target year2025

Is this a science-based target?Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science Based Targets initiative


Target statusNew

Please explainDeloitte’s intensity based global carbon goal includes a 36% per unit of area reduction in building emissions based on assumed growth rates. These global goals wereformulated in line with the methodologies put forth by the Science-Based Targets initiative (SBTi), aimed at limiting emissions in accordance the Paris Climate Agreement.This intensity goal was set using the SBTi-approved SDA methodology.

% change anticipated in absolute Scope 1+2 emissions-10

CDP Page of 8721

% change anticipated in absolute Scope 3 emissions0

Target reference numberInt 2

ScopeScope 3: Business travel



MetricMetric tons CO2e per unit FTE employee

Base year2017

Start year2019

Normalized base year emissions covered by target (metric tons CO2e)2.312

Target year2025

Is this a science-based target?No, but we are reporting another target that is science-based


Target statusNew

Please explainIn addition to the global goals for scopes 1 + 2 that were formulated in line with the methodologies put forth by the Science-Based Targets initiative (SBTi), aimed at limitingemissions in accordance the Paris Climate Agreement, Deloitte created a scope 3 goal for travel to address a material impact.

% change anticipated in absolute Scope 1+2 emissions0

% change anticipated in absolute Scope 3 emissions43

C4.2

CDP Page of 8722

(C4.2) Provide details of other key climate-related targets not already reported in question C4.1/a/b.

TargetEnergy usage

KPI – Metric numeratorkWh

KPI – Metric denominator (intensity targets only)square meters

Base year2015

Start year2015

Target year2020

KPI in baseline year0.82

KPI in target year0.78

% achieved in reporting year100

Target StatusUnderway

Please explainDeloitte Germany switched to 100% renewable energy on January 1, 2016.

Part of emissions targetInt1

Is this target part of an overarching initiative?No, it's not part of an overarching initiative

TargetWaste

KPI – Metric numeratorTonnes waste

KPI – Metric denominator (intensity targets only)FTE

Base year2011

Start year2011

Target year2021

KPI in baseline year0.16

KPI in target year0.13

% achieved in reporting year

Target StatusUnderway

Please explainDeloitte UK: Reduce quantities of waste production 20% per FTE

Part of emissions target

Is this target part of an overarching initiative?No, it's not part of an overarching initiative

C4.3

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/orimplementation phases.Yes

CDP Page of 8723

C4.3a

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO2e savings.

Number of initiatives Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 24

To be implemented* 18 0

Implementation commenced* 13 3840

Implemented* 28 2330

Not to be implemented 0

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Initiative typeOther, please specify (Employee Commuting and Business Travel - Employee Commuting, Flexible Work Location, and Mobility Options, including Use ofVideoconferencing)

Description of initiative<Not Applicable>

Estimated annual CO2e savings (metric tonnes CO2e)299

ScopeScope 3

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in C0.4)0

Investment required (unit currency – as specified in C0.4)515000

Payback period4 - 10 years

Estimated lifetime of the initiativeOngoing

CommentDeloitte Belgium has Mobility@Deloitte that aims to support employees in becoming more flexible in their day-to-day mobility by focusing on transportation alternatives andflexible work arrangements. Deloitte New Zealand has run electric vehicle (EV) trials in most offices to enable staff to better understand opportunities for both business andpersonal use. Many member firms continue to focus on using technology to reduce travel, and solutions include installing video capabilities in new offices and providinghardware and software to enable other types of video connections (such as on laptops). Carbon metrics reflect Deloitte Austria and Deloitte Belgium only. Financial metricsrepresent Deloitte Belgium only.

Initiative typeLow-carbon energy purchase

Description of initiativeHydro


ScopeScope 2 (market-based)



Investment required (unit currency – as specified in C0.4)

Payback periodNo payback

Estimated lifetime of the initiative<1 year

CommentDeloitte Netherlands has purchased Eneco Eco Guarantees, guarantees of origin recognized by the government. With this, Deloitte Netherlands supports the production ofrenewable energy and reduces greenhouse gas emissions.

Initiative type

CDP Page of 8724

Other, please specify (Business Travel Policies)



ScopeScope 3




Payback period<1 year

Estimated lifetime of the initiativeOngoing

CommentDeloitte US provides flexibility in where and how people work subject to meeting client and service demands, and this often results in professionals not commuting intooffices daily thereby reducing Scope 3 emissions. Deloitte Belgium also has implemented a travel policy to reduce travel, favor train travel, and/or restrict business classusage. Metrics reflect Deloitte Belgium only.

Initiative typeEnergy efficiency: Building services

Description of initiativeOther, please specify (Relocation or retrofit to more sustainable buildings)


ScopeScope 2 (location-based)




Payback period1-3 years

Estimated lifetime of the initiative6-10 years

CommentDeloitte Germany focuses on choosing office buildings with sustainable certifications like German Sustainable Building Council (DGNB). New buildings are assessedregarding energy efficiency. Smart building components are implemented to reduce the overall building emissions. Deloitte Mexico is moving into new offices in Monterreyand remodeling several floors in its headquarters facility. And as Deloitte US moves into newer office buildings and/or refurbishes existing space, LED lighting and lightingcontrol systems are frequently incorporated as part of the new design, and recycled, regionally sourced, and low-emitting materials are given preference. Metrics reflectDeloitte Mexico only.

Initiative typeOther, please specify (Employee Commuting and Business Travel - Office energy reduction standards/ policies/ procedures)







Payback period<1 year

Estimated lifetime of the initiative

CDP Page of 8725

Ongoing

CommentDeloitte US has minimum efficiency standards for electronic equipment. Deloitte Mexico has a work from home policy. Deloitte UK has both an energy/comfort policy andenergy control procedures. Metrics reflect Deloitte Mexico only.


Description of initiativeLighting








CommentLED lighting installations or retrofits were performed at many member firms including offices of Deloitte India, Deloitte Ireland, Deloitte Sweden, Deloitte US and Deloitte UK.Carbon metrics reflect Deloitte Sweden and Deloitte Colombia only. Financial metrics reflect Deloitte Sweden, Deloitte Ireland, and Deloitte UK only.


Description of initiativeBuilding controls


ScopeScope 1






CommentDeloitte UK has upgraded its building management system (BMS).

Initiative typeOther, please specify (Toners Cartridge Recycling Program)



ScopeScope 3




Payback periodPlease select

CDP Page of 8726


CommentDeloitte China requested its suppliers to take back toner cartridges for recycling after service end. Deloitte China diverted over 1800 toner cartridges from landfill in FY2018.

C4.3c

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Method Comment

Employee engagement Many Deloitte member firms engage employees in activities that address climate change. For example, extensive use is made of video conferencing throughout Deloitte, thereby reducingtravel requirements. Several member firms provide regular communications to their professionals regarding actions and recommendations to address environmental impacts. Client servicepersonnel in the sustainability and climate change practice areas are eligible for bonuses based on sales of sustainability services. Deloitte US has an increasing number of green teamsoperating in offices, and the team’s efforts also support emission reduction through activities and encouragement of individual behaviors.

Compliance withregulatoryrequirements/standards

Certain Deloitte member firms, such as Deloitte Germany utilize compliance with regulatory requirements/ standards to help drive investment in emissions reduction activities. For example,Deloitte Germany ensures regular air conditioning equipment maintenance and care under the Fluorinated gas (F-Gas) regulation to control F-gases, and also ensures compliance whenpurchasing new equipment.

Dedicated budget forenergy efficiency

Deloitte UK’s Green Journey group has a capital budget agreed to each fiscal year for use in driving emissions reductions across offices and operations.

Dedicated budget forother emissionsreduction activities

Deloitte Belgium and Deloitte Germany have dedicated budgets for other emissions reduction activities. Deloitte Germany is utilizing this budget to develop a future mobility concept.Deloitte Belgium has an ongoing dedicated budget for sustainability projects.

Financial optimizationcalculations

Certain Deloitte firms use financial optimization calculations to drive investment in emissions reduction activities. In some member firms there is a flexible approach to projects with a longer-term payback. For example, all energy efficiency investment in Deloitte UK is driven by payback calculations.

Internal financemechanisms

The Deloitte US real estate team includes energy efficiency as part of normal investment criteria. Those efficiency projects that demonstrate a high return on investment are approved in thebudgeting process.

Internalincentives/recognitionprograms

Deloitte Germany has a new car policy which supports making sustainable choices toward fuel-efficient cars. Deloitte Germany has also developed an agreement with a leasing companyto offer employees bike and e-bike leasing schemes.

C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party to avoid GHG emissions?No

C5. Emissions methodology

C5.1

CDP Page of 8727

(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).

Scope 1

Base year startJune 1 2016

Base year endMay 31 2017

Base year emissions (metric tons CO2e)51033

CommentFY2017

Scope 2 (location-based)




CommentFY2017

Scope 2 (market-based)




CommentFY2017

C5.2

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions.The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

C6. Emissions data

C6.1

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?

Reporting year

Gross global Scope 1 emissions (metric tons CO2e)62456

Start dateJune 1 2017

End dateMay 31 2018

CommentDeloitte’s Scope 1 emissions are comprised of building fuel usage and firm-owned fleet fuel usage.

C6.2

CDP Page of 8728

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.

Row 1

Scope 2, location-based We are reporting a Scope 2, location-based figure

Scope 2, market-basedWe are reporting a Scope 2, market-based figure

CommentDeloitte Global calculates Scope 2 emissions using both location-based and market-based methods. Market-based emission factors are applied where available; however,availability is limited (for example, Deloitte Global applies residual mix factors for member firms located in the European Union). Location emissions are calculated usingcountry or regional emission factors from those published by the United States’ Environmental Protection Agency (eGRID), the United Kingdom’s Department forEnvironment, Food and Rural Affairs and the International Energy Agency, among others. Deloitte Global refreshes its emission factors database each year to reflectupdates to these published emission factors. Electricity usage is captured from utility bills, obtained from the landlord, or estimated. District heating and cooling areexcluded from Deloitte reporting as previous analysis across several years showed these emission sources were not material to Deloitte’s overall GHG footprint.

C6.3

(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?

Reporting year

Scope 2, location-based187469

Scope 2, market-based (if applicable)186513

Start dateJune 1 2017

End dateMay 31 2018

CommentDeloitte Global calculates Scope 2 emissions using both location-based and market-based methods. Market-based emission factors are applied where available; however,availability is limited (for example, Deloitte Global applies residual mix factors for our Member Firms located in the European Union). Location emissions are calculatedusing country or regional emission factors from those published by the United States’ Environmental Protection Agency (eGRID), the United Kingdom’s Department forEnvironment, Food and Rural Affairs and the International Energy Agency, among others. Deloitte Global refreshes its emission factors database each year to reflectupdates to these published emission factors. Electricity usage is captured from utility bills, obtained from the landlord, or estimated. District heating and cooling areexcluded from Deloitte reporting as previous analysis across several years showed these emission sources were not material to Deloitte’s overall GHG footprint. Market-based emissions will evolve as the process continues to mature.

C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reportingboundary which are not included in your disclosure?Yes

C6.4a

CDP Page of 8729

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in yourdisclosure.

SourceRefrigerants

Relevance of Scope 1 emissions from this sourceEmissions are not relevant

Relevance of location-based Scope 2 emissions from this sourceEmissions are not relevant

Relevance of market-based Scope 2 emissions from this source (if applicable)Emissions are not relevant

Explain why this source is excludedIn FY2014 Deloitte Global made several changes to its environmental reporting. After reviewing several years of data, Deloitte Global chose to remove several sources ofemissions from the aggregate network footprint. Deloitte Global eliminated reporting of refrigerants, district healing, and district cooling at an aggregate network level. InFY2013 these sources collectively accounted for less than 2% of aggregate network emissions. Additionally, these emissions often required many assumptions, werefrequently time-consuming to obtain and, in the case of district heating and cooling, used emission factors with very high levels of uncertainties.

SourceDistrict Cooling

Relevance of Scope 1 emissions from this sourceNo emissions from this source



Explain why this source is excludedIn FY2014 Deloitte Global made several changes to its environmental reporting. After reviewing several years of data, Deloitte Global chose to remove several sources ofemissions from the aggregate network footprint. Deloitte Global eliminated reporting of refrigerants, district heating, and district cooling at an aggregate network level. InFY2013 these sources collectively accounted for less than 2% of aggregate network emissions. Additionally, these emissions often required many assumptions, werefrequently time-consuming to obtain and, in the case of district heating, and cooling used emission factors with very high levels of uncertainties.

SourceDistrict Heating

Relevance of Scope 1 emissions from this sourceNo emissions from this source



Explain why this source is excludedIn FY2014 Deloitte Global made several changes to its environmental reporting. After reviewing several years of data, Deloitte Global chose to remove several sources ofemissions from the aggregate network footprint. Deloitte Global eliminated reporting of refrigerants, district heating, and district cooling at an aggregate network level. InFY2013 these sources collectively accounted for less than 2% of aggregate network emissions. Additionally, these emissions often required many assumptions, werefrequently time-consuming to obtain and, in the case of district heating, and cooling used emission factors with very high levels of uncertainties.

C6.5

(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions.

Purchased goods and services

Evaluation statusRelevant, calculated

Metric tonnes CO2e

Emissions calculation methodology

Percentage of emissions calculated using data obtained from suppliers or value chain partners

ExplanationEstimates for purchased goods and services were made using Quantis tool in order to evaluate relevance of this category. However, due to high uncertainty of estimatedGHG calculations, we are not currently reporting this number.

CDP Page of 8730

Capital goods

Evaluation statusNot relevant, explanation provided

Metric tonnes CO2e<Not Applicable>

Emissions calculation methodology<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>

ExplanationDeloitte leases a majority of its offices and therefore Deloitte has limited building ownership. Deloitte also purchases other capital goods such as furniture. Capital goods areincluded in purchased goods and services. Emissions related to this category are assumed as 0 as they are already evaluated under Category 1.

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Evaluation statusNot relevant, calculated

Metric tonnes CO2e



ExplanationFuel and energy-related activities were calculated as less than 1 percent of total scope 3 emissions. As a result of this evaluation, this is one of several sources whichDeloitte Global does not currently report. Emissions related to this category are assumed as 0.

Upstream transportation and distribution

Evaluation statusNot relevant, calculated

Metric tonnes CO2e



ExplanationUpstream transportation and distribution were calculated as less than 1 percent of total scope 3 emissions. As a result of this evaluation, this is one of several sourceswhich Deloitte Global does not currently report. Emissions related to this category are assumed as 0.

Waste generated in operations





ExplanationWaste generated in operations were calculated as less than 1 percent of total scope 3 emissions. As a result of this evaluation, this is one of several sources which DeloitteGlobal does not currently report. Emissions related to this category are assumed as 0

Business travel


Metric tonnes CO2e687856


Percentage of emissions calculated using data obtained from suppliers or value chain partners89

ExplanationPercent of data from suppliers is an estimate and reflects that Deloitte Global only extrapolates business travel emissions for member firms not reporting on air travel andhotel stays.

CDP Page of 8731

Employee commuting


Metric tonnes CO2e3774

Emissions calculation methodologyPersonnel commuting emissions (3774) are calculated for automobile travel by Deloitte South Korea, Brazil, Belgium, Denmark, and the India operations for the Deloitte USfirms where that transport is provided. Data consists of primary data in the form of kilometers driven by class of vehicle for which fuel efficiencies are estimated. These fueleconomies are used to estimate liters of fuel burned. CO2 factors are applied to estimated emissions. Estimations are not made for non-reporting Deloitte member firms orwhere only partial information is available given the variations in geographies and commuting habits. As more member firms collect this data, reporting is expected to growin future years.

Percentage of emissions calculated using data obtained from suppliers or value chain partners100

ExplanationData is calculated as described in the Emissions calculation methodology column.

Upstream leased assets





ExplanationLeased technology assets are included in purchased goods and services . Since this is considered elsewhere, emissions related to this category are assumed as 0

Downstream transportation and distribution





ExplanationDeloitte does not manufacture products, and therefore 0 emissions are associated with this irrelevant category.

Processing of sold products






Use of sold products






CDP Page of 8732

End of life treatment of sold products






Downstream leased assets





ExplanationDeloitte does not typically lease assets that are not already accounted for in the Scope 1 and 2 boundaries. Therefore, 0 emissions are associated with this irrelevantcategory.

Franchises





ExplanationDeloitte does not own franchises. Therefore, 0 emissions are associated with this irrelevant category.

Investments





ExplanationThis category is applicable to investors, and Deloitte does not perform investment services as a primary business. Therefore, 0 emissions are associated with this irrelevantcategory.

Other (upstream)

Evaluation status




Explanation

CDP Page of 8733

Other (downstream)

Evaluation status




Explanation

C6.7

(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?No

C6.10

CDP Page of 8734

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unit currency total revenue and provide anyadditional intensity metrics that are appropriate to your business operations.

Intensity figure5.8

Metric numerator (Gross global combined Scope 1 and 2 emissions)249925

Metric denominatorOther, please specify (unit total revenue in millions of dollars)

Metric denominator: Unit total43199

Scope 2 figure usedLocation-based

% change from previous year4.95

Direction of changeDecreased

Reason for changeRevenue grew at 11.3% while Scope 1 and Scope 2 emissions increased by 6.3% due to a variety of factors.

Intensity figure0.9


Metric denominatorfull time equivalent (FTE) employee



% change from previous year2


Reason for changeHeadcount grew by over 8% while Scope 1 and Scope 2 emissions increased by 6.3% due to a variety of factors.

Intensity figure20.4


Metric denominatorOther, please specify (partners, principles, managing directors)



% change from previous year1.3


Reason for changeThe number of partners grew by 7.7% while Scope 1 and Scope 2 emissions increased by 6.3% due to a variety of factors.

C7. Emissions breakdowns

C7.1

(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?No

CDP Page of 8735

C7.2

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

Country/Region Scope 1 emissions (metric tons CO2e)

Americas 7036

Asia Pacific (or JAPA) 4715

Europe, Middle East and Africa (EMEA) 50704

C7.3

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.By business divisionBy activity

C7.3a

(C7.3a) Break down your total gross global Scope 1 emissions by business division.

Business division Scope 1 emissions (metric ton CO2e)

Brazil 4

Central Europe 990

China 196

Greece 84

Ireland 273

Italy 5370

Mexico 153

Spain 0

United Kingdom 2985

United States 5032

India 1783

All Other 45622

C7.3c

(C7.3c) Break down your total gross global Scope 1 emissions by business activity.

Activity Scope 1 emissions (metric tons CO2e)

Stationary combustion 16354

Mobile combustion 46102

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Country/Region Scope 2, location-based(metric tons CO2e)

Scope 2, market-based(metric tons CO2e)

Purchased and consumed electricity,heat, steam or cooling (MWh)

Purchased and consumed low-carbon electricity, heat, steam or coolingaccounted in market-based approach (MWh)

Americas 119313 119313 0 0

Asia Pacific (or JAPA) 29686 30918 0 0

Europe, Middle Eastand Africa (EMEA)

38470 36282 0 0

C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.By business divisionBy activity

CDP Page of 8736

C7.6a

(C7.6a) Break down your total gross global Scope 2 emissions by business division.

Business division Scope 2, location-based emissions (metric tons CO2e) Scope 2, market-based emissions (metric tons CO2e)

Brazil 235

Central Europe 2843

Greece 484

Ireland 960

Italy 2167

Spain 1837

United Kingdom 3535

United States 99908

China 5457

India 8111

Mexico 2360

All Other 59573

C7.6c

(C7.6c) Break down your total gross global Scope 2 emissions by business activity.

Activity Scope 2, location-based emissions (metric tons CO2e) Scope 2, market-based emissions (metric tons CO2e)

Electricity 187469 186513

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?Increased

C7.9a

CDP Page of 8737

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compareto the previous year.

Change inemissions(metric tonsCO2e)

Directionof change

Emissionsvalue(percentage)

Please explain calculation

Change inrenewableenergyconsumption

282 Decreased 0.15 Deloitte Global’s renewable energy consumption remained largely static year-over-year. Deloitte Netherlands does purchase hydro power (as stated inresponse to C4.3b). Percentage change is calculated by the following: (Change in Scope 1 + Scope 2 emissions due to this reason / Previous year Scope1 + Scope 2 emissions) * 100 or, (282 / 184043) * 100 = 0.15%.

Otheremissionsreductionactivities

3675 Decreased 2 Increased efficiencies in lighting and other building operations, and alternative workplace configurations have helped reduce emissions across the DeloitteGlobal firm. Percentage change is calculated by the following: (Change in Scope 1 + Scope 2 emissions due to this reason / Previous year Scope 1 +Scope 2 emissions) * 100 or, (3675 / 184043) * 100 = 2%.

Divestment <NotApplicable>

Acquisitions <NotApplicable>

Mergers <NotApplicable>

Change inoutput

18807 Increased 10.2 Scope 1 and Scope 2 emissions increased by nearly 6% in FY2018. Deloitte Global's various energy and emission reduction activities and renewableenergy consumption led to a decrease of 2.15%. Revenues increased by over 11% and total FTEs increased by over 8% in the reporting year. Thischange in output likely caused an increase in our emissions, but it is difficult to confirm a specific emissions value/percentage to such change.

Change inmethodology

<NotApplicable>

Change inboundary

<NotApplicable>

Change inphysicaloperatingconditions

<NotApplicable>

Unidentified <NotApplicable>

Other <NotApplicable>

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figure or a market-based Scope 2emissions figure?Location-based

C8. Energy

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy?More than 0% but less than or equal to 5%

C8.2

(C8.2) Select which energy-related activities your organization has undertaken.

Indicate whether your organization undertakes this energy-related activity

Consumption of fuel (excluding feedstocks) Yes

Consumption of purchased or acquired electricity Yes

Consumption of purchased or acquired heat No

Consumption of purchased or acquired steam No

Consumption of purchased or acquired cooling No

Generation of electricity, heat, steam, or cooling No

C8.2a

CDP Page of 8738

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

Heating value MWh from renewable sources MWh from non-renewable sources Total MWh

Consumption of fuel (excluding feedstock) LHV (lower heating value) 0 279128 279128

Consumption of purchased or acquired electricity <Not Applicable> 47098 417861 464959

Consumption of purchased or acquired heat <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable>

Consumption of purchased or acquired steam <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable>

Consumption of purchased or acquired cooling <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable>

Consumption of self-generated non-fuel renewable energy <Not Applicable> <Not Applicable> <Not Applicable> <Not Applicable>

Total energy consumption <Not Applicable> 47098 696989 744087

C8.2b

(C8.2b) Select the applications of your organization’s consumption of fuel.

Indicate whether your organization undertakes this fuel application

Consumption of fuel for the generation of electricity Yes

Consumption of fuel for the generation of heat No

Consumption of fuel for the generation of steam No

Consumption of fuel for the generation of cooling No

Consumption of fuel for co-generation or tri-generation No

C8.2c

CDP Page of 8739

(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type.

Fuels (excluding feedstocks)Diesel

Heating valueLHV (lower heating value)

Total fuel MWh consumed by the organization124283

MWh fuel consumed for self-generation of electricity124283

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam<Not Applicable>

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self-cogeneration or self-trigeneration<Not Applicable>

Comment

Fuels (excluding feedstocks)Motor Gasoline








Comment

Fuels (excluding feedstocks)Natural Gas








Comment

C8.2d

CDP Page of 8740

(C8.2d) List the average emission factors of the fuels reported in C8.2c.

Diesel

Emission factor2.69

Unitkg CO2e per liter

Emission factor sourceWRI Emission Factors from Cross Sector Tools (March 2017)

CommentStationary combustion—diesel/heating oil. See the Basis of Reporting section in the 2018 Global Impact Report for more information.

Motor Gasoline

Emission factor2.198


Emission factor sourceDEFRA’s 2017 Government Greenhouse Gas (GHG) Conversion Factors for Company Reporting (version 1)

CommentMobile combustion—motor gasoline. See the Basis of Reporting section in the 2018 Global Impact Report for more information.

Natural Gas

Emission factor1.889


Emission factor sourceWRI Emission Factors from Cross Sector Tools (March 2017)

CommentStationary combustion—natural gas (lower heating value). See the Basis of Reporting section in the 2018 Global Impact Report for more information.

C8.2f

CDP Page of 8741

(C8.2f) Provide details on the electricity, heat, steam and/or cooling amounts that were accounted for at a low-carbon emission factor in the market-based Scope 2figure reported in C6.3.

Basis for applying a low-carbon emission factorContract with suppliers or utilities ( e.g. green tariff), supported by energy attribute certificates

Low-carbon technology typeSolar PVWindHydropowerBiomass (including biogas)

Region of consumption of low-carbon electricity, heat, steam or coolingEurope

MWh consumed associated with low-carbon electricity, heat, steam or cooling11228

Emission factor (in units of metric tons CO2e per MWh)0

CommentDeloitte Germany switched to 100% renewable energy on January 1, 2016. This is certified green power (original in German "Geprüfter Ökostrom") based on the TÜVstandard A75-S026-1 that assures 100% renewables and ensures a 33% share from newer renewable electricity facilities, six years or younger, thus supporting newfacilitates. The certificate covers the stated consumption in calendar year 2018.

Basis for applying a low-carbon emission factorContract with suppliers or utilities ( e.g. green tariff), supported by energy attribute certificates

Low-carbon technology typeHydropower


MWh consumed associated with low-carbon electricity, heat, steam or cooling


CommentDeloitte Austria sources clean electricity from 100% Austrian hydroelectric power from TUV SUD-certified power plants.

Basis for applying a low-carbon emission factorEnergy attribute certificates, Guarantees of Origin

Low-carbon technology typeHydropower


MWh consumed associated with low-carbon electricity, heat, steam or cooling584


CommentDeloitte Netherlands has purchased Eneco Eco Guarantees, guarantees of origin recognized by the government. With this, Deloitte Netherlands supports the production ofrenewable energy and limiting greenhouse gas emissions such as CO2.

C9. Additional metrics

C9.1

(C9.1) Provide any additional climate-related metrics relevant to your business.

C10. Verification

C10.1

CDP Page of 8742

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Verification/assurance status

Scope 1 Third-party verification or assurance process in place

Scope 2 (location-based or market-based) Third-party verification or assurance process in place

Scope 3 Third-party verification or assurance process in place

C10.1a

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 and/or Scope 2 emissions and attach the relevant statements.

ScopeScope 1

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance

Attach the statement

Page/ section referenceAll

Relevant standardISAE3000

Proportion of reported emissions verified (%)100

ScopeScope 2 location-based








ScopeScope 1









Verification or assurance cycle in place

CDP Page of 8743

Annual process







ScopeScope 1




Attach the statementVerification Statement_Deloitte UK.pdf












C10.1b

CDP Page of 8744

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevant statements.

ScopeScope 3- all relevant categories




Page/section referenceAll














C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5?Yes

C10.2a

(C10.2a) Which data points within your CDP disclosure have been verified, and which verification standards were used?

Disclosuremoduleverificationrelates to

Data verified Verificationstandard

Please explain

C8. Energy Other, please specify(Data in Deloitte Italy’sFY2017/FY2018 CSRReport)

ISAE 3000 Environmental figures and information reported in Deloitte Italy’s FY2018 Corporate Social Responsibility Report will be verified by a third part, on thebasis of ISAE3000 standard for limited assurance engagement, as it will be stated in the assurance report included at the end of the Report. These figuresand information are related to, for example, energy consumption and related GHG emissions and other environmental data.

C11. Carbon pricing

C11.1

CDP Page of 8745

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?Yes

C11.1a

(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.Other ETS, please specify (CRC Energy Efficiency Scheme )

C11.1b

(C11.1b) Complete the following table for each of the emissions trading systems in which you participate.

Other ETS, please specify

% of Scope 1 emissions covered by the ETS2

Period start dateApril 7 2017

Period end dateMarch 31 2018

Allowances allocated0

Allowances purchased10000

Verified emissions in metric tons CO2e9907

Details of ownershipOther, please specify (Where bills paid directly to supplier)

CommentAs part of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), Deloitte UK purchases allowances for facilities where the firm pays the energy bills directlyto the supplier (as head tenant).

C11.1d

(C11.1d) What is your strategy for complying with the systems in which you participate or anticipate participating?

Deloitte UK takes a “buy to comply” approach to complying with the Carbon Reduction Commitment Energy Efficiency Scheme. The required number of allowances arepurchased to meet obligations, and allowances are not traded.

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?Yes

C11.2a

CDP Page of 8746

(C11.2a) Provide details of the project-based carbon credits originated or purchased by your organization in the reporting period.

Credit origination or credit purchaseCredit purchase

Project typeForests

Project identificationDeloitte Brazil – Social Carbon

Verified to which standardVCS (Verified Carbon Standard)

Number of credits (metric tonnes CO2e)6269

Number of credits (metric tonnes CO2e): Risk adjusted volume6269

Credits cancelledYes

Purpose, e.g. complianceVoluntary Offsetting

C11.3

(C11.3) Does your organization use an internal price on carbon?No, and we do not currently anticipate doing so in the next two years

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues?Yes, our suppliersYes, our customersYes, other partners in the value chain

C12.1a

(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagementInformation collection (understanding supplier behavior)

Details of engagementCollect climate change and carbon information at least annually from suppliers

% of suppliers by number2

% total procurement spend (direct and indirect)7

% Scope 3 emissions as reported in C6.50

Rationale for the coverage of your engagementDeloitte Ireland seeks to understand sustainability actions and collects related information (e.g., sustainability plans) from key suppliers who have direct impact onoperations.

Impact of engagement, including measures of success

CommentDeloitte Ireland

Type of engagementCompliance & onboarding

Details of engagementOther, please specify (Suppliers must use green products or limit plastic use)


CDP Page of 8747



Rationale for the coverage of your engagementHigh contractual monthly spend

Impact of engagement, including measures of successVisible difference in the canteen noted by a number of staff members. Staff are conscious and pushed for the elimination of straws.

CommentDeloitte South Africa –Interactions are currently focused on consumables that can readily be changed.


Details of engagementIncluded climate change in supplier selection / management mechanism




Rationale for the coverage of your engagementThese are our Top 50 suppliers by spend, which we are targeting first.

Impact of engagement, including measures of successCurrently working on method to demonstrate this

CommentDeloitte United Kingdom


Details of engagementClimate change is integrated into supplier evaluation processes




Rationale for the coverage of your engagementThese are our Top 50 suppliers by spend, which we are targeting first.

Impact of engagement, including measures of successCurrently working on method to demonstrate this

CommentDeloitte United Kingdom

C12.1b

(C12.1b) Give details of your climate-related engagement strategy with your customers.

Type of engagementEducation/information sharing

Details of engagementRun an engagement campaign to education customers about your climate change performance and strategy

% of customers by number11


Please explain the rationale for selecting this group of customers and scope of engagementApplies to all Deloitte UK customers

Impact of engagement, including measures of success

CDP Page of 8748

C12.1c

(C12.1c) Give details of your climate-related engagement strategy with other partners in the value chain.

Deloitte engages with others in the value chain, including responding to industry analysts, engaging with professional groups focused on reporting matters and engaging insocietal impact projects. For example, Deloitte Belgium has Mobility@Deloitte through which Deloitte promotes to its employees to daily re-think their modes of transportationwhen commuting to the office, and stimulates employees to opt for public transportation options, or to come by bike, or to work from home once a week. Deloitte Germanyparticipates in the German Sustainable Development forum called econsense, where climate change related strategies are discussed, and is a member of the UPJ network,which is the German national network of engaged businesses and local non-profit intermediary organizations that combines the experience and knowledge of its members inorder to further promote Corporate Citizenship and CSR within Germany’s business world. Deloitte US firms engage with the Sustainability Accounting Standards Board andthe Professional Services Sustainability Roundtable convened by the Boston Center for Corporate Citizenship. Deloitte Ireland has a longstanding engagement with Businessin the Community Ireland (BITCI) and was one of the original signatories of the low carbon pledge or the first action of BITCI’s Leaders Group on Sustainability that wasformed in 2018. Deloitte UK also engages with policy makers and industry bodies on sustainability issues through reports, thought pieces, forums, and consultation on whitepapers. Many of our member firms, such as Deloitte US and Deloitte Mexico, engage in pro bono work with foundations and NGOs. Deloitte also engages with otherinternational bodies including the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC), the World Business Council for SustainableDevelopment and the World Economic Forum.

Engagement in the above is through a variety of interactions such as one-on-one discussions, meetings, conferences and working groups. Success is measured throughengagement with others, actionable items that are implemented by Deloitte member firms, publications, white paper development, actions taken by suppliers, and overallprofessional development of those involved.

Prioritization is influenced by areas of expertise and service offerings, participation of peers, importance of the particular issue to Deloitte and availability of resources tosupport the undertakings.

C12.3

(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issues through any of the following?Trade associationsOther

C12.3b

(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership?Yes

C12.3c

(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation.

Trade associationU.S. Council for International Business (“USCIB”)

Is your position on climate change consistent with theirs?Unknown

Please explain the trade association’s positionBased on information obtained from USCIB and USCIB documents, USCIB promotes appropriate environmental protection integrated with market-oriented policies thatpromote open trade and investment; advances continuous improvement in technological innovation and deployment within the context of economic growth as fundamentalto sustainable development. USCIB supports cost-effective and cooperative international environment policies that favor multilateral solutions (including the role ofbusiness) to trans-boundary environment challenges, and avoidance of unilateral measures that hamper trade and market access. Examples of USCIB activities on climatechange include: Green Economies Dialogue (GED) project, Rio +20, ICCM3, UNFCCC, and BizMEF. The trade association involvement with USCIB is at the DeloitteGlobal-level. Deloitte member firms may have been involved in other types of direct engagement.

How have you influenced, or are you attempting to influence their position?Deloitte Global does not actively engage with USCIB on their climate change work.

C12.3e

CDP Page of 8749

(C12.3e) Provide details of the other engagement activities that you undertake.

Since FY14, Deloitte has provided funding (both cash and value-in-kind services) to the Social Progress Imperative , a non-profit organization committed to improving livesthrough provision of a robust, holistic and innovative measurement tool that equips leaders and change makers in business, government and civil society to advance socialprogress. The Social Progress Imperative developed a measurement framework, the Social Progress Index (SPI), which supports analysis of national and sub-nationalperformance to aid discussions, provide insights on investment decisions and guide action. They further drive the creation of strong and sustainable networks made up ofnational and regional partners across government, business and civil society that use SPl data and insight to drive change. The index measures multiple dimensions of socialprogress, benchmarking success, and catalyzing greater human wellbeing. It measures national and sub-national performance using indicators of social and environmentaloutcomes. One of these measurement areas is Environmental Quality, which includes ‘Outdoor air pollution attributable deaths’, ‘Wastewater treatment’, ‘Biome protection’and 'Greenhouse gas emissions'. The Social Progress Index 2018, covering 146 countries, was publicly released in September of 2018. Additional information can be foundat http://www.socialprogress.org/.

Deloitte is also active with the World Business Council for Sustainable Development (WBCSD), a business-driven forum for sharing knowledge and advocating positions onsustainability. The WBCSD sees cooperation including all elements of society, in particular governments and business, as essential to resolve climate change. Deloittemember firm partners and professionals participated with the WBCSD in numerous ways during FY2018 including as a council member, liaison delegate, and working on theBusiness Case for Climate Adaptation and Resilience, and a project on modernizing governance.

Support of the SPI initiative and WBCSD aligns with the Deloitte Global guiding principles expressed in the Corporate Responsibility Policy, including advocating forsustainable use of natural resources and respect for the environment.

C12.3f

(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climatechange strategy?

C12.4

(C12.4) Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in placesother than in your CDP response? If so, please attach the publication(s).

PublicationIn voluntary sustainability report

StatusComplete

Attach the document12.4_Row 0_Deloitte 2018 Global Impact Report.pdf

Page/Section reference41-42

Content elementsGovernanceStrategyRisks & opportunitiesEmissions figuresEmission targetsOther metrics

CommentGlobal Impact Report


StatusComplete

Attach the document12.4_Row 1_Deloitte-au-about-responsible-business-report-2018-210918.pdf

Page/Section reference27

Content elementsStrategyEmissions figures

CommentDeloitte Australia

PublicationIn voluntary communications

CDP Page of 8750

StatusComplete

Attach the document12.4_Row 2_Deloitte-BE-Impact Report 2018.pdf


Content elementsEmissions figuresEmission targets

CommentDeloitte Belgium

PublicationIn other regulatory filings

StatusUnderway – previous year attached

Attach the document12.4_Row 3_Deloitte-BR-registropublicodeemissoes.pdf

Page/Section reference1-2

Content elementsEmissions figures

CommentDeloitte Brazil


StatusComplete

Attach the document12.4_Row 4_Deloitte-BR-Ações integradas pela sustentabilidade.pdf

Page/Section referenceAll

Content elementsStrategyEmissions figuresEmission targets

CommentDeloitte Brazil


StatusComplete

Attach the document12.4_Row 5_Deloitte-Deloitte Central Europe Impact Report 2018.pdf


Content elementsEmissions figuresOther metrics

CommentDeloitte Central Europe



Attach the document12.4_Row 6_Deloitte_Rapport-Performance-Durable-2017.pdf

Page/Section referenceEmission figures: 64 to 68; Policy: 52 to 57

Content elementsEmissions figuresOther, please specify (Policy)

CDP Page of 8751

CommentDeloitte France

PublicationOther, please specify (Business in the Community Ireland’s Low Carbon Pledge report)

StatusUnderway – this is our first year

Attach the document

Page/Section reference


CommentReporting is based on 2018 calendar year. Annual report is an aggregate report of 47 companies who have signed the pledge and scope 1 and 2 emissions are notindividually listed.


StatusComplete

Attach the document



CommentDeloitte Japan prepared the filing (April 2017- March 2018) under the provision of Energy Saving Act. Deloitte Japan filed the report to the government, but it is notpublished (except some parts).


StatusComplete

Attach the document



CommentC&T scheme of local government (Tokyo) is applicable to Deloitte Japan’s four 4 offices (April 2017- March 2018). Deloitte Japan filed the report to the Tokyo metropolitangovernment, but it is not published (except some parts).



Attach the document12.4_Row 10_Deloitte-On Purpose_Making an impact that matters in New Zealand.pdf


Content elementsStrategyEmissions figuresEmission targetsOther metrics

CommentThe reporting period for the Deloitte New Zealand Sustainability Report was FY2017.


StatusComplete

Attach the document12.4_Row 11_Deloitte-Norwegian Impact Report.pdf

Page/Section referenceChapter 4 - Figures

Content elements

CDP Page of 8752

Emissions figures

CommentDeloitte Norway


StatusComplete

Attach the document12.4_Row 12_Deloitte_SP-Memoria Responsabilidad Corporativa 2018.pdf



CommentDeloitte Spain


StatusComplete

Attach the document12.4_Row 13_Deloitte_UK-Impact Report metrics 2018.pdf


Content elementsEmissions figuresEmission targetsOther metrics

CommentDeloitte UK


StatusComplete

Attach the document12.4_Row 14_Deloitte_UK-Environment.pdf


Content elementsStrategyEmissions figuresEmission targetsOther metrics

CommentDeloitte UK


StatusComplete

Attach the document12.4_Row 15_Corporate Responsibility Report_Deloitte Italia_FY1718.pdf

Page/Section reference86,93-94


CommentThe Corporate Responsibility Report of Deloitte Italy published by 31 May 2019 includes both fiscal year 2017 and 2018.


CDP Page of 8753

StatusComplete

Attach the document12.4_Row 16_Deloitte_US-Corporate Citizenship.pdf



CommentDeloitte US

C14. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optionaland is not scored.

C14.1

(C14.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Job title Corresponding job category

Row 1 Deloitte Global Chief People and Purpose Officer, Deloitte Touche Tohmatsu Limited Other C-Suite Officer

CDP Page of 8754

deloitte touche tohmatsu limited - climate change 2019 · governance mechanisms into which...

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