Environmental progress
Deloitte has also committed to set long-term emissions reduction targets using the SBTi’s Net-Zero Standard. Since setting our validated, science-based targets, we have been working towards achieving these goals, recognising the increasing urgency of the climate crisis.
In FY2020, Deloitte’s near-term (2030) greenhouse gas (GHG) reduction goals were validated by the Science Based Targets initiative (SBTi) as 1.5°C-aligned, science-based targets.
The positive impacts of setting an ambitious strategy are clear. We continue to make progress towards our goal of procuring 100% of our electricity from renewable sources, achieving 85% in FY2021 and 91% in FY2022.
Deloitte’s gross GHG emissions (Scopes 1, 2 and 3) decreased 32% compared to the baseline in FY2019, showing great progress towards our 2030 SBTi goals of a 70% reduction in Scope 1 and 2 emissions and a 50% reduction in business travel emissions per FTE. Reductions achieved in FY2022 were primarily the result of increased purchases of renewable energy, coupled with continued reductions in business travel. While we recognise our business travel was still heavily impacted by restrictions from the COVID-19 pandemic, Deloitte began implementing new policies and practices around business travel in FY2022, aimed at addressing business travel intentionality and keeping us on track to minimise rebounds post-pandemic as we pursue our travel reduction goals.
Additional details of our greenhouse gas emissions and performance against goals are included in the Performance Metrics and Reporting Frameworks Summary.
Beginning with FY2019, we have calculated our supply chain emissions beyond business travel. In FY2022, purchased goods and services emissions comprise more than 75% of Deloitte’s aggregate emissions. Reducing these emissions is a key component of our carbon-reduction strategy and demonstrates why we have also significantly increased our interaction with our supply chains on sustainability and carbon emissions. To improve the quantification of emissions from purchased goods and services and to better understand our suppliers’ engagement on climate, Deloitte continued reaching out to suppliers in FY2022 via the CDP's (formerly Carbon Disclosure Project) supply chain reporting program, reporting process and materiality. We asked over 400 of our suppliers to respond, more than doubling our supplier outreach from the previous year.
Fourteen percent of Deloitte suppliers have now set science-based targets, up from 8% in FY2021, as we work towards our goal of having 67% of our suppliers by emissions adopt science-based targets by 2025. In February 2022, Deloitte was honored to be named by CDP as a Supplier Engagement Leader for effectively engaging our suppliers on climate change, an honor awarded to only the leading 8% of disclosing companies. See Sustainable and Responsible Supply Chain for details on the steps we are taking with our suppliers.
While our current environmental strategy focuses primarily on energy and GHG emissions, we are also actively working to improve management systems for water, waste and single-use plastics. A number of key meetings globally are now planned as zero-or low-waste events.
Offsets
A core tenet of Deloitte’s WorldClimate strategy includes investing in meaningful solutions for the emissions we cannot eliminate. Decarbonising through absolute reductions remains a key priority for Deloitte. During our transition, however, Deloitte has chosen to compensate for unabated emissions through offset purchases as a means to promote the advancement of sustainability solutions while also recognising that it does not replace the need to reduce emissions in line with science-based approaches.
In FY2022, Deloitte has continued to offset its operational and business-travel emissions with verified carbon credit purchases. Additionally, two of the largest Deloitte firms chose to offset their purchased goods and services emissions in both FY2021 and FY2022.
Deloitte will continue to evolve its carbon offsets strategy as a component of our overall net-zero strategy, informed by external guidance on carbon offset leading practices and changes in the market. Offset projects we support include reforestation, preventing deforestation, projects focussed on health and livelihoods and sustainable infrastructure.
Task Force on Climate-related Financial Disclosures
Deloitte recognises the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) as a useful framework for assessing and reporting on climate-related risks and opportunities. Deloitte issued its inaugural TCFD report last year and anticipates issuing an update to the report later this calendar year.
