- Making an impact for clients Coop - a pioneer in sustainability and climate strategy
- CIP - an international journey paved with green growth ambitions
- The Danish Environmental Protection Agency – using technology to protect the Danish nature
- Best Managed Companies - celebrating Danish business excellence
- Our Goals - defining the future of Denmark
- United Nations – preventing cyberattacks at the COP25 conference
- Mikkeller – a taste for beer and data analytics
- DRC - using technology to support the protection of the world’s refugees
- Astralis Group – the future of entertainment
- People impact
- Social impact
- Our businesses
- Stories without borders
- Global Impact report
Coop - a pioneer in sustainability and climate strategy
To reach the Danish Government’s ambitious emission target by 2030, we need to rethink how we live our lives. How we can be more sustainable in everything we do from transportation to grocery shopping. The same goes for businesses, and Coop is a good example of how to create an impact if you dare to be bold and ambitious. Coop is the first supermarket retailer in Denmark to announce a comprehensive, commercial climate strategy and to embed sustainability into the core of their business operations. The purpose of the strategy is not only to reduce Coop’s carbon emissions significantly, but also to inspire other companies in the global retail industry to implement more ambitious climate strategies. “If we’re to save the world and create a better future for the next generation, action is needed. Our climate strategy emphasises Coop’s dedication to making the world a better place, and we’ve been fortunate to have Deloitte as our adviser and partner from start to finish.“ With the climate strategy, Coop strives to make their operations carbon positive in 2030. Furthermore, the co-operative supermarket retailer aims to reduce their indirect carbon emissions from suppliers and end-consumers by more than 1 million tons also before 2030 - equivalent to more than two percent of Denmark’s national carbon footprint. “With help from a global network of experts, Deloitte has provided the knowledge and resources needed to help us design this ambitious plan that raises the bar for the global retail industry. Together, we’ve created a multidimensional business strategy that is both environmentally and financially sustainable.” Coop developed their climate strategy in cooperation with Deloitte’s Danish SDG team, a team that uses the UN’s Sustainable Development Goals as a lever to develop strategic direction and new narratives for clients. For Coop, this meant embarking on a transformational journey to become a more sustainable business while staying commercially profitable.
CIP - an international journey paved with green growth ambitions
As sustainability, social responsibility and stakeholder capitalism have become a business imperative, the world looks to international corporations to help catalyse the change needed to solve some of the world’s biggest and most pressing challenges. Since its foundation in 2012, Copenhagen Infrastructure Partners (CIP) has helped fuel this agenda by investing in green infrastructure such as offshore wind, onshore wind, biomass and energy-from-waste. CIP has provided a sustainable and long-term investment alternative and – together with its institutional investors - helped accelerate the replacement of polluting energy resources with cleaner and renewable alternatives. Despite the rather short company history, CIP has already become a global leader, market pioneer and the largest financial sponsor with a dedicated renewable energy infrastructure focus. Today, CIP holds seven funds with more than USD 10bn as well as offices all over the world from New York to Tokyo. CIP’s ambition has always been to become a professional and international player when it comes to green infrastructure investments. To help CIP reach this goal, the investment company decided to partner with Deloitte back in 2012. Ever since, Deloitte has been an adviser to CIP and experienced its incredible growth journey first-hand. Over time, Deloitte has acquired deep knowledge of CIP’s business, industry, ambitions and company culture. Knowledge that has since been used to help CIP scale, streamline and internationalise its business at a pace and in a way that aligns with CIP’s ambitions and culture. “It has given us a great deal of comfort to have a global player like Deloitte with us on our international journey. Deloitte equals integrity and expertise which gives their business partners a feeling of assurance and safety. With Deloitte as a trusted partner, we have been able to globalise and scale our business in a fast and solid way,” As CIP has conquered the world, Deloitte has utilised its international network of experts and offices to make sure that CIP has had access to the needed insights and resources no matter where in the world the company was expanding. Throughout the agelong partnership, many areas of Deloitte have been assisting CIP on its journey, from transforming the finance function, digitising and implementing central systems and standardising processes to running the audit and accounting services and providing financial advisory. During this journey, CIP have been able to focus on what they do best: invest in renewable energy infrastructure.
The Danish Environmental Protection Agency – using technology to protect the Danish nature
The Danish Environmental Protections Agency’s (EPA) most prominent task is to take care of the Danish nature and environment. A task that for long has been characterised by collecting data through manual work and observations. This, however, has changed in the digital age where new technologies have enabled the agency to conduct old tasks and processes faster and much more frequently. “New technology makes it possible to solve our tasks in entirely new ways. We are gradually moving towards new working methods, where fieldwork in rubber boots is accompanied by new digital forms of work such as drones, Internet of Things, image recognition, and other types of artificial intelligence such as machine learning,” says Lars Møller Christiansen, Vice Director at the Danish Environmental Protection Agency. In 2018, the EPA took a quantum leap on their digital transformation journey with the establishment of the agency’s new digital lab called JUMP. Through JUMP, the EPA has access to experts and relevant competences needed to develop new, digital solutions in an efficient and timely manner. The overall aim is to support an agile and exploratory innovation process from thought to design, testing and production. “The collaboration with Deloitte gives us flexible access to specialists and resources that we don’t have in-house. The JUMP partnership has really accelerated our digitalisation process and we now see the benefits of cost reduction, better customer service and raised quality in the areas that we have been through. Also, we have received several requests from other agencies that are interested in this model,” JUMP was created because of the challenging and tiresome process that is sometimes associated with getting new and innovative solutions to public sector issues identified, tested and scaled. Consequently, the EPA decided to partner with Deloitte to develop a solution that could significantly accelerate the time from ideation to a scaled and implementable solution. JUMP and the partnership with Deloitte have helped catapult the EPA into the digital age and allowed the agency to fully utilise the advantages of data analytics and the newest technologies. This does not only benefit the EPA but everybody in Denmark as the EPA, by using data and technology to optimise processes, can take better care of the Danish nature and environment.
Best Managed Companies - celebrating Danish business excellence
Danish owned and managed companies are the backbone of our economy and the cornerstone of our local society. Through the Best Managed Companies programme (BMC), we aim to recognise the overall success of these strong privately-owned companies based on strategic direction, ability to execute, corporate culture, and financial performance. After a successful launch in 2019, Deloitte awarded 10 Danish companies the title of Best Managed Company in 2020 – a title earned as a result of investment in talent and technology, an ability to innovate in a competitive environment, and an intent and ability to compete on the global stage. One of the winning companies is MacArtney, a global supplier of underwater technology. At MacArtney, a new management team has created a successful turnaround with enhanced focus on the commercial business. Meanwhile, the company is characterised by having an encouraging employee culture, where change is part of the everyday life. “With Best Managed Companies, we want to bring attention to the Danish medium-sized companies that are truly outstanding so that our entire small great nation can see why they are best-in-class. Our hope is to encourage, develop and inspire Danish companies to put in the efforts that will ensure growth and international expansion.” Another Best Managed company is V. Guldmann that works with the development, manufacture, and sales of welfare technology, e.g. ceiling hoists, lifts and slings. V. Guldmann has organised itself around a dynamic, hands-on management approach and short decision paths. The company has a persistent, simple and clear communication strategy, which makes the company’s ambitious goals clear to the employees. Other companies that have won the title of being a Best Managed Company in 2020 are PolyTech, a global supplier to the wind power industry, Knauf, a full-line supplier to the construction industry, Pankas, a global contracting company, HusCompagniet, one of the largest construction companies in the Nordics, Blue Water Shipping, a global transport and logistics company, the sports equipment company Sport24, the recycling company RGS Nordic, and the textile company Beirholm Group. Søren Nørgaard Thomsen, CEO of Blue Water Shipping says: “Being part of Deloitte’s Best Managed Companies programme has been a great experience. Deloitte and its coaches provided professional guidance and coaching throughout the programme, which enabled us to challenge the status quo and reflect on how we can take our business to the next level. Besides that, being a BMC winner is a seal of approval, and something we can use to create awareness and external acknowledgement of our business.” This year's winners are: MacArtneyBlue Water ShippingPoly TechV. GuldmanKnaufRGS NordicHusCompagnietPankasSport24Beirhold Group A/SThe BMC programme is currently taking place in 25 countries all over the world – and will continue in Denmark in 2021.
Our Goals - defining the future of Denmark
You have most likely heard about the UN’s 17 SDGs. You have probably heard that Denmark is well ahead in progress according to various international measurements. But what if we were to measure our progress in sustainable development according to our own perspectives on what is most relevant in Denmark? How would we then measure whether we are on the right track to reduce inequalities and ensure more sustainable consumption and production? The fact is that no coherent measurement based on a national perspective has been done – until now. In October 2019, the Our Goals initiative was launched with the ambition to develop supplementary national indicators and a baseline to measure progress in the SDGs in Denmark. This will allow us to have clear and concrete data on how Denmark is doing on our journey towards a more sustainable society. The project will not only define the future of our country, but also a sustainable society across all sectors and industries. “As a nation, we need to be able to ensure momentum in our transformation to become a more sustainable society, which is why national indicators for measuring sustainable development are incredibly important. The project brings together all the forces in the community to discuss what the SDGs mean to us, and how we can create innovative solutions to the biggest challenges, we have here in Denmark.” Our Goals is probably the most inclusive nation-wide process to define national indicators at a global level. The ambition was from the beginning to involve civil society, businesses, authorities and local governments, knowledge institutions and universities, and not least people living in Denmark to take part in developing the indicators based on what they find most important in a Danish context. To get input from as many people as possible, an extensive national campaign was launched, including a digital engagement platform for citizens and other stakeholders to give input. Six workshops with more than 500 participants in total as well as individual debates for each of the 17 SDGs were held across the country. In total, more than 6000 inputs were collected to the development of national indicators. A set of around 250 new national indicators and a baseline are delivered to The 2030 Network in the Danish Parliament in September 2020. Deloitte has been selected to manage the Our Goals project in collaboration with Statistics Denmark along with a range of partners consisting of Geelmuyden Kiese, Sweco, Dansk Energi Management, Kraka, RUC and AAU. “Statistics Denmark chose Deloitte as a trusted partner on the difficult task of setting up national measuring points on the SDGs in Denmark. Deloitte has in all areas delivered work of very high professional value and emerged through the process as a communicative and responsive partner. The complex task is delivered with great precision and throughout the process met all milestones and deadlines. Deloitte has therefore proven to be a highly competent partner that is crucial to the success of the project.”
United Nations – preventing cyberattacks at the COP25 conference
In December 2019, several of the world’s most influential political figures were gathered at COP25 in Madrid to discuss and advance global action to tackle climate change. The conference lasted from 2 December to 13 December 2019 and was designed to take the next crucial steps in the UN climate change process. As COP25 concluded, crucial climate action had been taken forward in several areas including forests and agriculture, indigenous people, cities, oceans and gender. Concurrently with the increased focus on climate change and sustainability, the UN’s climate change conferences have grown exponentially in size over the past two decades. Today, the conferences are among the largest and most important international meetings in the world with an ever-increasing number of officials from governments and vast numbers of representatives from corporations, civil society, and global news media. As the climate change conferences have grown in size and prominence, so has the need for creating a secure digital conference infrastructure. With more than 25,000 participants and even more connected digital devices, it is an extremely complex task to not only build a secure cyber environment, but even more so to constantly monitor the network and identify potential threats. Therefore, to help create a resilient and secure cybersecurity environment at COP25, the UN decided to partner up with Deloitte. "Deloitte's cybersecurity team was key to ensuring safe IT operations during the COP25 conference. Under adverse circumstances including a relocation of the conference they were able to conduct an audit of the secretariat's assets and deploy a full-fledged cybersecurity operations centre in limited time to protect the conference network and the negotiation processes. The UNFCCC Secretariat is grateful for the outstanding professionalism, resourcefulness and efficiency shown by Deloitte during COP25." A global team of Deloitte professionals, led by Danish Deloitte cyber security experts, were quickly deployed to Madrid to set up the extensive IT security infrastructure from A to Z, including security architecture, 24/7 network surveillance, threat identification and more. For several weeks, the Deloitte team lived in Madrid to thoroughly test every aspect of the newly established IT environment that the UN team had built from scratch. Due to the high attendance by heads of states and top political figures, cybersecurity is given top priority at the UN’s climate conferences, and for good reason. During the conference period, cyber-attackers are constantly looming in the dark, trying to exploit any kind of weakness in the network, allowing them to potentially access confidential documents, state secrets or leverage over political figures. Fortunately, and as a result of the extensive cybersecurity efforts conducted by the Deloitte team before and during the conference, only an insignificant and unharmful number of IT disturbances happened and were quickly solved by the Deloitte team as they occurred. From a cybersecurity point of view, there is no doubt that some of the world’s top political figures and other conference participants were in good hands, and this enabled them to fully focus on the critical task at hand: unifying the world in the fight against climate change. “Statistics Denmark chose Deloitte as a trusted partner on the difficult task of setting up national measuring points on the SDGs in Denmark. Deloitte has in all areas delivered work of very high professional value and emerged through the process as a communicative and responsive partner. The complex task is delivered with great precision and throughout the process met all milestones and deadlines. Deloitte has therefore proven to be a highly competent partner that is crucial to the success of the project.”
Mikkeller – a taste for beer and data analytics
Mikkeller was founded in 2006 by primary school teachers Mikkel Bjergsø and Kristian Keller – thereby the name that everyone knows, but very few can pronounce. The two founders are passionate about brewing and have from day one challenged people’s taste buds – whether it’s in a bitter, spicy, sour, or fruity manner. Since the opening of the first Mikkeller bar in 2010, the Danish microbrewery has experienced tremendous growth with bars and restaurants in 42 locations around the world today. Mikkeller also hosts an internationally renowned beer festival, has a running club with 250 chapters worldwide, and is involved in several local projects with talented people from across the world. To say the least, a lot has happened since the foundation in 2006. Growing and expanding your business at a pace like Mikkeller naturally brings complex strategic and corporate challenges. Back in 2018, it became evident that the microbrewery had grown out of its old structure and needed a financial and strategic sounding board to continue its impressive journey. “For two years now, we’ve worked with Deloitte, which has taken the audit as well as tax and VAT advisory to a new level. As for the audit, Deloitte makes us stronger by using Deloitte Analytics, which both streamlines the audit process for us and Deloitte, while also strengthening our insights into the financial figures. Mikkeller chose Deloitte as its strategic and trusted adviser. The ambition was to bring to life the microbrewery’s long-term aspiration of making quality beer a serious alternative to wine and champagne all over the world. Since the beginning of the partnership, Mikkeller has especially had a taste for Deloitte’s digital services that enable the microbrewery to get data insights and real-time comparisons between the performance of all its bars worldwide. “We are very happy for the entire Deloitte team, a group of kind and pleasant people to work with that are always available and flexible when it comes to new tasks. Besides this, Deloitte has been good at spotting new opportunities for us and their advisory within financial standings, ownership structure, tax and VAT have been very satisfactory.” In the years to come, Mikkeller’s tireless conquest of challenging and captivating beer-drinkers all over the world will continue, and Deloitte will be at their side no matter what country Mikkeller decides to conquer.
DRC - using technology to support the protection of the world’s refugees
In a time when people are fleeing from violent conflicts around the world, staying longer in displacement because crises are becoming more complex and last longer, borders are being closed and human rights are being violated, it is imperative that the Danish Refugee Council (DRC) delivers from the heart of its vision: A dignified life for all displaced. DRC is a humanitarian, non-profit NGO founded in 1956 that operates in more than 40 countries throughout the world. In Denmark, DRC assists refugees in all aspects of integration as well as asylum procedures. Internationally, DRC actively participates in supporting the protection of refugees and promoting durable solutions for conflict-affected populations. The growing complexities of the global refugee situation combined with the rapid pace of technological change emphasises the importance for DRC to sustain a strong organisation – particularly in terms of IT systems that enable DRC to report on and measure the effectiveness of their activities. These circumstances marked the initiation of DRC’s largest single investment ever: Microsoft Dynamics 365, a global Enterprise Resource Planning (ERP) system and an important tool for documentation and effective implementation of work in all parts of the organisation and financial reporting. The investment was initiated in 2017 but had, as many big change projects, faced some initial challenges, particularly in using the system in some countries where their infrastructure and capacity had proven inadequate to the new tasks presented by the decentralisation allowed by the new ERP system. “We have felt a strong partnership with Deloitte throughout this collaboration; one where deep industry and technological knowledge assisted us in realising our vision of making an impact for a decent and safe life for all refugees and displaced persons.” To help DRC succeed with the implementation of the new ERP system, DRC and Deloitte initiated a collaboration enabled by deep industry knowledge from Deloitte’s auditors as well as extensive ERP capabilities from Deloitte’s consultants in Assurance. The task was approached by a team of experts within ERP, NGOs and accounting and began with a clear analysis of the challenges with the ERP implementation from a Finance and IT perspective. Then, solutions were proposed for how to obtain the data to be used in management reporting, auditing, and the annual report. The new ERP system was launched in January 2019 and allowed DRC to conduct reports for the year. With the new system, DRC has the right foundation in place to support a steadily growing global organisation. Deloitte is proud to be DRC’s trusted adviser and to help make a social impact in the world. Going forward, the new ERP system will empower DRC to work in a more transparent and efficient manner to help more refugees and displaced persons. Definition *persons or groups of persons who have been forced or obliged to flee or to leave their homes or places of habitual residence.The UN Refugee Agency
Astralis Group – the future of entertainment
By 2020, the global esports industry is expected to generate $1.5bn in annual revenue and reach a global audience of 600 million fans and viewers. There is no doubt that the esports industry is growing, and it is growing fast! In Denmark, the hype has not gone by unnoticed either. In fact, Astralis, a Danish Counter-Strike team, is widely known as the best Counter-Strike team in history and was in both 2018 and 2019 the most viewed esports team globally. Behind the world-famous Astralis team is the Danish sports and media company, Astralis Group. Astralis Group has widely been recognised as a pioneer in the esports industry because of its unique approach to performance and a healthy lifestyle. The Group has developed its own unique performance model that balances three core dimensions into a winning recipe: physical (e.g., nutrition and sleep), mental (e.g., dynamics and profiling), and technical (e.g., skills and playbook). Being pioneers and doing things so noticeably different than everybody else in the industry requires a lot of skills and capital. Therefore, Astralis Group decided in August 2019 that it was time to seek further funding through an IPO on NASDAQ Copenhagen First North. By doing so, Astralis Group would become the first publicly listed esports company and the first team-driven esports company on the stock exchange. “Completing an IPO with a three-month timeframe sets a lot of demands on the process and it requires full focus on detail from everybody involved. We decided to work with Deloitte based upon previous experience within the management team and, despite a very short lead time, Deloitte delivered on all parameters and we were very satisfied with their services”. To advise and support Astralis Group on its IPO readiness journey, the group partnered with Deloitte. Deloitte’s IPO expert team assisted Astralis Group in fulfilling the purpose of the IPO: to strengthen Astralis Group’s international position through further investments in their brands and media business to ensure continued growth, winning teams, and broadly embracing international media platforms. After an intense three-month fast-track IPO journey with several Deloitte services involved, from IPO services and tax advisory to accounting assistance and financial advisory, Astralis Group was ready for its first listing date in December 2019 as planned. The IPO was a success with Astralis Group’s offering of new shares being oversubscribed and the general purpose being fulfilled.
Inclusion unleashes the power of our diversity
Every day, more than 2,800 Deloitte talents do their utmost for the future success of our clients, society and their peers. For our employees to succeed and thrive in their work, our culture is our most valuable asset. Our culture reflects our Shared Values, which are at the heart of everything we do. We lead the way for each other and our clients by having strong role models. We take care and look out for one another and prioritise respect, fairness, development, and well-being. And we foster inclusion by embracing diversity in all forms and work dedicatedly to ensuring equality. We know this improves satisfaction, attracts top talent, enables innovation, and helps deliver great client solutions. Building a diverse workforce Fostering inclusion and embracing diversity comes with many perspectives. Gender equality is just one piece of the puzzle, however, it remains a must-win battle for Deloitte. While having a 45/55 gender distribution at junior levels, we still work on several initiatives to overcome the uneven gender balance at senior levels. Our gradual progress on women in leadership positions is evident at partner level but insufficient. Nor is it satisfactory at senior manager and director level or when it comes to members of the management team. With Sharon Thorne leaving the Danish Board just before the very end of 18/19 we were delighted to welcome Therese Kjellberg to the Board in the beginning of 19/20. With Therese on board we got back on track and meet our target of having at least 25% represented on the Board. Our target is to always have minimum 25% of each gender represented at the Board in the future. We fully recognise that we have a challenge and that we still have room for improvement with regard to gender balance. The limited progress at partner level will not make us rest on our laurels. Gender balance is our most important must-win battle and our goal is to reach 16.5% female partners next year and 25% in three years. How will we reach our targets? Achieving gender balance in senior leadership roles requires us to not only look isolated on partner promotions. We need to build pipelines from the bottom and increase female representation at the levels below partner. Sponsoring and inviting more women into commercial roles is just one initiative to mention in our work towards pipelines that progress in the right direction, at the right pace. We have a persistent focus on gender balance in all processes and structures we meet during the year, and gender balance is a natural focal point integrated into all of our three strategic talent focus areas.
How the Talent Agenda will take us to the future
This year we continued working with our three strategic focus areas for the Talent Agenda: Respect and Inclusion; Leadership; and Talent Attraction and Development.Respect and Inclusion Respect and inclusion is not only about gender. Respect and Inclusion brings new ways of thinking, increasing our ability to come up with innovative solutions for our clients. During the year we involved all levels of the organisation in focus groups and workshops in order to continuously understand and keep strengthening our culture and values. We dedicated more time than ever to involving our top leaders. Three leadership conferences and workshops have taken place during the year to create awareness about the challenges we have and to discuss biases and structures that hinder our way towards respect and inclusion - and especially towards increased gender balance. Our latest ‘Diversity-lab’ workshop generated almost 400 ideas on how to foster respect and inclusion, and a prioritised selection of these ideas are now built into the talent strategy for the coming years. From our already existing Respect and Inclusion initiatives, our ‘Happy Parents’ programme is one of the highlights. Two years ago, we introduced ‘Happy Parents’ with the aspiration of making all working parents feel that having a career at Deloitte and being a great parent is both doable and desirable. Now we are excited to see that the initiative bears fruit and increases our diversity by retaining 15pp more male parents and 8pp more female parents since launch. Leadership We are proud to have launched our own Leadership Academy, training all leaders from managers to partners in being strong leaders. We particularly train our leaders in providing feedback and coaching on an ongoing basis in line with our Performance Management approach, Leading Performance. Leaders are also trained in acting as inclusive leaders; for example, being curious and embracing new perspectives, being cognizant of potential biases, and acting with courage to address them, and recognising and rewarding merit by investing in and developing others. Also, in this area we are delighted to see that our efforts do make a difference and that our leaders are improving their skills in being inclusive. The latest Upward Feedback survey confirms that we are moving in the right direction with an 'Inclusive Leadership' score on 4.41 out of 5. Talent Attraction and Development Attracting the best talents doesn't come easy, and we are happy to see that our efforts are rewarded by moving up as the #2 most attractive employer among business students according to Universum. This is an achievement that we are truly proud of. Being ranked as #2 is a testament that our consistent work, such as ensuring gender neutral words in job adverts and that teams representing Deloitte at career fairs reflect our diverse workforce, is paying off. In building a culture of lifelong learning, constant opportunity and growth, the well-being of our people is core to ensuring that everyone can fully embrace that culture and reach their full potential. We want our people to ‘thrive’ and not just ‘survive’. This year we introduced a new initiative to ensure the physical, mental and financial well-being of our people. The first phase campaigned around the importance of financial well-being, and Deloitte introduced an upgrade to our pension and insurance programme encouraging all employees to re-evaluate their financial security. During this first phase we also mapped the well-being of our people through a voluntary health screening and initiated a stress prevention initiative, which will be implemented during the following year. Next year we will keep implementing well-being initiatives to ensure that we meet the physical and mental challenges of our people at the very early stage. The fundamental approach is that we look out for each other and that we all need to be able to notice, in ourselves or a colleague, when things are out of balance - and then open our doors and provide the support needed.
Building Deloitte Economics, a Global Strategic Priority
Majbritt Skov is 39 years old and a passionate economist supporting clients in both the private and public sector in optimising value for money. She is married to Frank and mother to the three-year-old Kristian, who will get a brother or sister in the beginning of 2021. She prefers to start the day with a run or in the gym, so body and brain are ready for challenges and opportunities ahead. With her eagerness to make a difference and her great experience within the field, Majbritt is also the one in charge of Deloitte Economics in Denmark, a strategic priority for Deloitte. Below Majbritt shares some insights on how it has been for her to lead and build a new business unit from the bottom. What has been the most challenging in starting a new business unit? Deloitte Economics was only one month old when the corona pandemic hit Europe and Denmark, and it became clear that the 100-day plan for developing Deloitte Economics required some adjustments and postponement of certain activities. Our clients’ focus and demand for economic advisory changed almost overnight, recruitment was temporarily paused, and the access to the market and client dialogues became more difficult – at least in the beginning of the pandemic, before we all got used to virtual meetings. To develop a new business unit in a highly uncertain business environment with limited resources has been very challenging but has also demonstrated our ability to stand together as an organisation and rapidly react and adapt to a new reality and respond to the changed needs of our clients. For Deloitte Economics, the corona pandemic brought some unforeseen opportunities to demonstrate the value of economic services in times of uncertainty. For instance, our weekly update on the financial and economic situation in Denmark and globally, the Coronavirus Impact Monitor, brought economic insight to clients and colleagues and at the same time marketed our capabilities. Also, the pandemic strengthened the ties between Deloitte’s leading economists from all over the world. The benefits from cross-country knowledge sharing were obvious, and we took a giant leap in the integration of our Global Economics Advisory Practice, which is now much more united than before the crisis. What achievements are you most proud of? I have been privileged to manage several economic analyses, which have formed the foundation of important decisions in our society. The characteristics of these projects have been a solid economic approach combined with in-depth industry insight and a multidisciplinary team. It makes me proud when we as one by combining our cross-function capabilities and knowledge can support our clients in making the optimal decisions from a financial, societal as well as an environmental perspective. With Deloitte Economics and our unit’s strategic partnership agreement with Kraka Advisory, I believe that we have created a strong platform for acting as economic advisers in critical decision-making processes in both the public and the private sector and support the development towards a more sustainable future. Also, a strong macro-economic unit can create value added to core services in all service areas. What are the next steps? What is Deloitte Economics looking into?We have a strong aspiration: within a foreseeable future Deloitte Economics is the leading economic advisory practice in Denmark. This requires first and foremost a strong team of economists. We are experiencing an increasing demand for our services, and I am looking forward to welcoming two new colleagues, one of whom brings experience from Deloitte in Australia. What do you love the most about your job? My job allows me to live out my passion as an economist: to support cost-effective decisions in both the public and private sector for the benefit of our clients and society. Economics is a matter of prioritisation of scarce resources. We cannot afford everything in our society. Even though it can be tough, we must prioritise. As an economic adviser I can support that taxpayers’ money or shareholders’ investments etc. are spent in a way that maximises value for money. This is very satisfying. In addition, I find it very enriching to be part of top professional service firm, which sets the bar high in all aspects of doing business, prioritises talent development, demands strong leadership skills that are based on some fundamental core values that I truly can support.
Reimagining the Audit Experience
Meet Martin Fjeldbonde, who is married to Lotte, who also works in Deloitte and together they have two girls. He is a dedicated Chelsea fan and gin enthusiast, and currently Martin is using his spare time to find the perfect summer cottage for his family as the last months have shown him the value of spending the summer in Denmark. Martin is also the COO of Audit & Assurance and architect behind several major strategic initiatives launched to transform our audit business. Auditors need to be capable of using advanced data to investigate the future and consider a broader perspective for their clients. Martin’s job is to challenge how we approach audit today, and here he shares his thoughts on the journey towards a more digital audit business: How would you describe our Audit & Assurance business today? Serving the public trust is our most important job, and building trust is crucial to our client engagements. As a business, we are in great shape and I truly believe we are on the brink of something very exciting. We have the brightest talents who deliver exceptional work of high quality to our clients every single day. They create exceptional value by pushing the boundaries for what an audit is and should be.And, we have a partnership that is fully committed to investing in the transformation of our business. So overall, I think we have all the building blocks to do extraordinary things within Audit & Assurance, and therefore I am very excited about the years to come. What achievements are you most proud of? The launch of our new IT system for preparing financial statements called ‘FACT’. We have been working hard to create FACT for a couple of years, so seeing it materialise into a system that is everything we hoped for is a huge milestone for us. FACT is second to none, it creates efficiency throughout the entire process of preparing financial statements, and it is a great foundation for future developments. What are the next steps? What are we looking into? Technology might fuel the reimagination of audit, but it is our people who empower it. We therefore invest massively in providing exceptional talent experiences and building capabilities fit for the future. We need to continue to raise the bar for our digitally enabled competences throughout the entire business. Not only to face changing demands from our clients, but to get ahead and define the pace of the digital audit transformation. That is essentially the aim of Reimagine Audit. We will also continue our focus on even more standardisation, as it is a prerequisite for automation. The next couple of years, we will roll out global audit systems which will take standardisation to a completely new level and allow for global scale automation. Finally, as we push the digitalisation agenda even further, I think we will see new digitally delivered services emerge. We have seen small but very promising signs of this already, so I expect it to take off within a year or two. What do you love the most about your job? Peter Drucker’s famous quote “The best way to predict the future is to create it” is how it feels going to work. I believe the things we are working on now will influence how we audit in the future. Being able to play a small part in that is incredibly satisfying and very exciting… And doing that all while being surrounded by the best and brightest minds... what more could you ask for?
Towards a more sustainable future
Deloitte’s purpose is to make an impact that matters for our clients, our people and the communities in which we live. This purpose has been part of our DNA for 175 years. Being one of the biggest professional services firms in the world, we truly believe that we can make an impact for our clients, and we have an obligation to support our surrounding society. Our Shared Values describe how we live our purpose, our Global Principles of Business Conduct explain our ethical commitments, and our Commitment to Responsible Business Practices outlines the responsible business principles we believe in and the commitments we have made. These are embedded in our policies and inform our decision-making. We strive to serve responsibly, and our response to the COVID-19 pandemic is a testament to this. The pandemic affected our clients, our people, and the society around us. If we had not responded to the pandemic, we would not have a solid and trustworthy business today. Therefore, when the crisis hit, we responded instantly by guiding our clients through economic aid packages and providing a content hub with insights and webinars on how to get through the storm. We guided our people with daily CEO communications and appointed a steering committee that would regularly update our leadership and people on responsible behaviour, protecting the physical and mental well-being of our people and minimising the risk of infection. We also shared our professional expert competencies with the Government, advising on economic aid packages and a safety fund, and we worked closely together with industry organisations to ensure Denmark could move forward in a safe manner. Running a responsible business We serve the public trust and work to keep on earning our position as a professional, trustworthy and objective business that is based on integrity. If we do not live up to these standards, there is a significant risk that people and businesses will lose faith in systems, authorities and fair practices, and that we fail to respect and promote human rights, as a business and as a society. As a result, we must hold each other accountable, act with integrity, quality, objectivity and competence, ensure respect and fair treatment, and set standards for professional practice and behaviour. Deloitte’s commitment to running a responsible business is centered around our Global Principles of Business Conduct. We ensure this through our risk control systems, covering such areas as anti-corruption, anti-bribery, information security and ethics, as well as our whistle-blower solution that makes it safe to report any unethical behaviour, including potential breaches of human rights. Our employee handbook advises our people on their employee rights and human rights as well as their obligations and how they in turn can expect Deloitte to manage risks and uphold these rights. Ethics is very much about doing what we say. In 2019, we have continued to focus on awareness about the importance of acting ethically through storytelling and ongoing training. Our Speak Up whistle-blower channel helps us respond quickly to unethical or unprofessional behaviour. Our annual Ethics Survey lets all our people express their views on how they experience the culture of ethics in our organisation, covering a range of human rights as well as risks around professional conduct and conflicts of interest. In 2019 the survey results confirmed that continued training and communication around ethical conduct is effective in ensuring the ethical culture in Deloitte. In 2019, we updated and reinforced our risk control systems and were subject to internal as well as external audit to renew our ISO27001 certification. Information security controls are a core element of our workplace culture and we continuously reinforce and communicate our information security policy to ensure all our people maintain a clear understanding of what is expected of them. In addition, we continued to run a comprehensive cyber security awareness campaign, including several phishing drills per year to ensure that all employees are aware of cyber risk. The General Data Protection Regulation (GDPR) has been another important focus this year, both in terms of embedding the GDPR principles into our own processes and mindset and in terms of assisting our clients in protecting personal information and being accountable. On the cyber agenda, we have launched insight reports, new solutions, and helped our clients to stay on the alert for cyberattacks. We have held Grab ‘n Go sessions on Cyber, GDPR and Compliance. In 2019, through our ISO-certification and the continued work of educating our people on ethics, information security and cyber threats, we have continued to guarantee our clients and our people the confidentiality, integrity and availability of their information. We have likewise in 2019 continued to strengthen human rights in our workplace around respect and fair treatment, particularly around non-discrimination and diversity in personnel practices. Building a diverse workforce Our talents are our greatest resource and therefore we week to nurture them by creating an equal playing field, fostering inclusion and embracing diversity as well as providing great career opportunities in this area to reduce any risk to our future business. We are making progress in these areas, but we still have work to do. As an example, while having an almost equal gender distribution at junior levels (45/55), we still work on several initiatives to overcome the uneven gender balance at senior levels. At partner level, 12.1% are female, up from 10.6% last year, and we have reached our goal of 25% at board level. The number of women at senior manager and director level is moving in the right direction – although not fast enough. Initiatives are in place to reach our goals, as is evident in the section on Talent, where you can read about our three strategic focus areas: Respect and Inclusion, Leadership, and Talent Attraction and Development. Acting as a corporate citizen Our responsibility as a corporate citizen is exemplified in our Social Impact Strategy. A core pillar is our global ambition to create a positive impact on 50 million people’s futures by 2030 through education, skills development, and access to opportunities. In this year of unprecedented challenges, our support and investment in our communities increased to USD 266m, and WorldClass programmes reached 7.1 million people in FY20. By giving people the skills and opportunities they need to succeed, we can help them overcome barriers to education and employment. This will ensure we are helping to create a fairer society, one that focusses on improved social progress and inclusive growth. In Denmark, we have unfolded WorldClass into two main initiatives – UNLEASH and Small Great Nation. UNLEASH is a global non-profit organisation that supports the UN Sustainable Development Goals (SDGs). Deloitte Denmark has been engaged in UNLEASH since the first innovation workshop took place in Copenhagen in 2017 and is the lead innovation partner. In 2019, UNLEASH took place in Shenzhen with Deloitte running a five-day SDG innovation lab – once again – bringing together 1,000 extraordinary talents from all over the world to develop scalable SDG solutions and build lasting global impact. Small Great Nation is an initiative in collaboration with leading think tank Kraka to provide insights into and a fact-based discussion of Denmark’s strongholds, opportunities and challenges. Through analyses, events, podcasts and press activities, we have engaged CEOs, government ministers and Small Great Nation ambassadors across the country in a discussion about Denmark’s future. In 2019, we took it to the next level with a reform proposal to meet the Government’s ambitious target of a 70% CO2 reduction in 2030. We also recruited a youth panel, consisting of 42 talented young people across Denmark with diverse professions and backgrounds. For more information on Small Great Nation, see the case story or SGNation.dk This year, we reached 18,454 people through WorldClass programmes in Denmark. 1 This section of our report constitutes the statutory CSR report, cf. Section 99a of the Danish Financial Statements Act. Our Business Model is described here
Sustainability at Deloitte
Climate change is threatening the entire world. If we do not act now, current and future generations may not have a safe and healthy world to live and thrive in. If left to continue, the impact of climate change on the environment and society could be even more severe than it is today. As a major global business, Deloitte knows that the risk of inaction is associated with increasing harm to nature, to our societal progress, and to business – our own and our clients’. What we do now to mitigate and adapt to climate change and how prepared we are to transition to a low-carbon economy matters to our leadership, our employees and our clients. While Deloitte has always worked to support the communities around us, Deloitte now commits to achieving net zero emissions by 2030 and extending our impact beyond ourselves— by empowering our people and engaging our eco-systems in responsible climate choices. This is laid out in our new global climate strategy ‘WorldClimate’. As a firm, we have also introduced ambitious emission reduction targets for buildings, fleet, and travel, as part of our broader policy commitment to Responsible Business Practices. In Deloitte Denmark, we have expanded our offerings in climate measurements and strategies as well as introduced our own local policies and initiatives to lower our carbon footprint, such as travel reduction guidelines and offices becoming paper free. We have also committed to reducing plastic waste, one of today’s most serious environmental challenges, and to becoming more sustainable overall. We have introduced a sustainable alternative to disposable plastic cups across all offices, thereby reducing plastic use by more than 700,000 bottles per year. We have also reviewed our supply chain and chosen more sustainable alternatives and suppliers; replaced paper in all offices with FSE-certified paper; run campaigns to reduce paper consumption overall; introduced campaigns to lower food waste in the canteens; and invested in a biogas reactor for HQ to convert food waste into energy. Examples are Go Green freight by default. When choosing a taxi, we book a vendor that offers environmentally friendly vehicles as a default preference. And we cooperate with glassFORever for a sustainable alternative to disposable cups and glasses. To reduce paper consumption, we developed an app that tracks printing behaviour and highlights consumption and introduced it with a print challenge across all offices in Denmark. Some offices reduced their consumption by up to 34% - showing that we are ready to take action! Our carbon emissions have been measured and show the following result:We, at Deloitte Denmark, have emitted about 3,697 tonnes of CO2 equivalent, from our operations and travels in FY20.This is the equivalent to 1.45 tonnes of CO2 equivalent per employee.Most of our impacts in terms of carbon emissions come from air travel and energy use at offices.Deloitte at NSE level has decided to purchase Energy Attribute Certificates for all electricity, thereby making it our first year to source 100% renewable electricity for all NSE.For our emissions from district heating and business travel, Deloitte at NSE level has purchased Certified Emission Reductions, offsetting our carbon footprint on the operational and travel side.In the meantime, our efforts to reduce our energy consumption (kWh) are set to continue.We plan to continue measuring our emissions, to track our performances and plan initiatives to reduce them in the future. * Limited assurance of all reported carbon metrics was provided by BDO LLP at a consolidated Deloitte NSE level. This included consideration of the underlying country data in Belgium, Denmark, Finland, Greece, Iceland, Ireland, Italy, Malta, Netherlands, Norway, Sweden, Switzerland and the UK plus Jersey, Guernsey, Isle of Man and Gibraltar.** Total Gross ‘Operational & Travel’ Emissions is a sum of market-based electricity data, district heating and business travel data without radiative forcing. Location-based electricity data and business travel data with radiative forcing are included in the table to increase transparency of our reporting. For the details of our methodology, please refer to GHG Emissions Basis of Reporting. We are serious about accelerating our efforts on sustainability next year with our new travel and fleet policy and continuing to build our Green Ambassadors Network. The reduction in travel will also be a natural consequence of the pandemic, where we have learned to work smarter with digital tools rather than travelling to every meeting abroad. We are committed to becoming more sustainable and we are sure that by acting collectively we can make an impact that matters!
Small Great Nation
Small Great Nation, a joint initiative by Deloitte Denmark and local think tank Kraka, was launched three years ago to facilitate a fact-based and data-driven dialogue across businesses, the public sector, and organisations. Its mission is to engage people to discuss and co-create better solutions for bringing Denmark forward – and for including everyone on the journey. Through reports on Denmark’s social, environmental and economic challenges and opportunities, the initiative successfully gathered government ministers, CEOs and entrepreneurs in the discussion. Building on that success and helped by leading economists in Denmark, Deloitte and Kraka decided to launch a new reform proposal on reaching Denmark’s ambitious climate target of a 70% CO2 emission reduction by 2030. Small Great Nation was first in the public agenda with the proposal, which has been referenced in many correlations. With the COVID-19 crisis hitting the world, Small Great Nation also provided new analyses and advised the Government on the economic effects of corona with suggestions on how to survive the crisis. One of our main suggestions was to encourage the Danish state to take out a large loan of €40bn, to be placed in a fund to cover the losses for the companies who are struggling the most. This would cover the losses of two months. This year, we have also recruited a youth panel that, through a series of workshops and inspirational days, has created a new vision for Denmark 2040 based on the topics of social impact, climate change, economics, and societal crises. On top of that we launched three reports, held five webinars and two live events. And finally, Malou Aamund, Bert Nordberg and Jim Hagemann Snabe, among others, were featured in the podcast this year.
Changing the world one Danish business at a time
Through three different sustainability programmes, Deloitte’s SDG team has helped more than 60 Danish businesses maximise their sustainable impact by developing new products or services that have a societal impact and are financially viable. The UN’s Sustainable Development Goals (SDGs) provide the first common ground for governments, businesses and individuals all around the world to address the social and environmental challenges we meet in our society. Each of the goals are signposts for future market needs and represent untapped opportunities just waiting to be exploited. This is exactly what Deloitte’s SDG team has accelerated through three different programmes: SDG Accelerator New business solutions to sustainability challenges The SDG Accelerator is a UNDP programme aiming to accelerate business solutions with the SDGs funded by the Danish Industry Foundation. The programme has supported 32 SMEs in a six-month Innovation Journey ranging from fast-tracking ideas with strong SDG and business potential to the identification of new products, services or business models, and lastly the development of prototypes and concrete business plans. The programme has been developed in close collaboration with Nordic frontrunner companies with solid experience in integrating sustainability into innovation, business strategy and communication. SDG Business Booster Scaling existing sustainable products or business models The SDG Business Booster is a programme developed in collaboration with Copenhagen Business Hub, Advice, Roskilde University, and CONNECT Denmark. The programme focuses on accelerating Danish companies’ growth and export opportunities through their solutions to the SDGs. During the programme, we have supported 26 companies in devising growth strategies, identifying key markets and formulating go-to-market strategies, and a communication platform. In addition, a large group of experts and business leaders, channelled through CONNECT Denmark’s network, supports the participating companies. Learnings and methodologies developed in the programme have been disseminated to all Business Hubs in Denmark and will be integrated as part of their normal approach to support SMEs in accelerating sustainability. AM Sustain Sustainable innovation by using 3D print technology AM Sustain is an innovation programme developed in collaboration with AM Hub, Additive Manufacturing Hub in Denmark. The programme focuses on accelerating the use of 3D print and AM technology to solve the challenges addressed in the SDGS. By identifying key sustainability challenges and untapped market opportunities across the participating companies’ value chains, the programme has identified business cases for how to use 3D print as a lever for new revenue streams, new products, new processes or as a new production alternative. The programme has been supported by a large number of experts and partners, ranging from universities to professionals with technical expertise and experience in business modelling. Cases that change the world The 60 cases span across industries and sectors, making a difference to people all over the world. Be inspired by a selection of the cases that change the world in this magazine. Deloitte’s SDG team is led by Bahare Haghshenas, and she is convinced that the SDGs hold a huge potential for especially Danish companies: “Not only do we have the technology and agility to develop new solutions; we also have the business acumen and tradesmanship to make it happen. From a commercial perspective, the SDGs are are not just about doing good. It’s good business“. The innovative solutions developed in the three sustainability programmes are all addressing the serious sustainability challenge that we find ourselves in. How to provide a high standard of living for a world population of nine or more billion people without destroying the planet The answer lies in our ability to innovate, rethink how we have lived our lives so far and develop new solutions for food, manufacturing, transport and every other aspect of human civilization. Only by constantly innovating and fine-tuning old habits to become more sustainable, we stand a chance at solving some of the world’s most imminent challenges. Fortunately, an increasing number of businesses have realised this. “There is no doubt that the SDGs have a huge impact when it comes to finding new solutions to old problems. More and more companies are starting to see the goals not only as visions for the future but also as concrete levers for innovation. Particularly in some of the traditional strongholds of Danish companies – food, green tech, biotech, fashion and energy efficiency – we see an interesting development. A lot of companies are joining this movement right now.”
Audit & Assurance – powered by humans
This year, our transformational journey of Reimagine Audit was the imperative at our core. We have secured some great wins and achievements, confirming that we are on the right path of redefining Audit & Assurance. As the COVID-19 pandemic hit during our absolute peak season, we were busy advising our clients on the economic aid packages while working on their audits. The pandemic taken into account, we are satisfied that our revenue is at the same level as last year.Our impact Our key focus has been on accelerating the transformation of our business by increasing the use of technology to support our audits and sustain market-leading quality. We have strengthened our market activities, which has resulted in important wins in Audit & Assurance. Among many, we won the audit of Novo Nordisk and TDC – two signature clients – and we have delivered improved quality documented by internal and external reviews, and improved efficiency through standardisation and automation. Furthermore, we have built and integrated analytics solutions into our audits to improve client insights and enhance value creation. ”Reimagine Audit is about sustaining the best quality, pursuing the best clients, and being the best version of ourselves. Always.” A people business This year, we have established Assurance Offerings and Dynamic Offerings with a new catalogue of service offerings and strong market traction. We have also increased the use of delivery centres to automate parts of the audit process and thereby increase efficiency and quality. Consequently, we have attracted and built new competencies and kept a strong focus on talent and leadership development. We have also taken our first steps towards implementing our new business model – one that rewards value creation and quality delivered over performed hours. Our ambition is for our people to be the best version of themselves – not the most. Our culture is defined by passion for our clients, for personal and professional development, and for working as a team, while always encouraging authenticity and diversity of thought. Amidst COVID-19, our people demonstrated perseverance and teamwork, while making a significant societal impact by advising institutions and clients on the economic aid packages. As trusted advisers to the public interest, we take responsibility for strengthening the resilience of the Danish business community through the provision of financial advisory and transparency, so that society can emerge from the crisis as best it can.Reimagine Audit As uncertainties arise across the globe, our purpose of building trust in the public and capital markets remains rock-solid. We aim to redefine trust in the digital age – and our people are key to our success. Every day, our audit professionals drive this paradigm shift by igniting a culture of innovation, creativity and deep industry knowledge. The old image of a dusty accounting profession is being put to shame. We are paving and leading the way for an exciting future for audit and assurance – it’s a new era, and we aspire to define it.
Risk Advisory - managing risks in a digital era
When COVID-19 hit this year, our clients needed help in managing the new risk landscape and protect their business from cyberattacks and related threats, as a consequence of the work-from-home model and usage of new solutions. We instantly transformed our way of working with clients to a digital world, which enabled us to come closer to our clients – although from a distance – but as a trusted “travel companion” meeting the opportunities of the new tomorrow. Although we did not reach the aggressive growth result we had hoped for, we are very happy to have achieved 16% revenue growth in these turbulent times. This is a result of a significant development across all our service lines, where especially Financial, Regulatory, and Strategic Risk have excelled by developing more comprehensive offerings that complement each other. Through this, we have been able to create an even bigger impact for our clients. The past year has also been a year of investments in future services, e.g. cloud, data-driven solutions, business continuity, and financial risk management, which we expect to see the results of in the years to come.Expanding our cyber offerings In February 2020, we acquired Draware, a company specialised in retail software within IT and cybersecurity. It is the first step towards integrating software offerings into our Risk Advisory business – a step no other accounting and advisory firm has taken before. With Draware onboard, we can offer our IT and cybersecurity clients access to a full eco-system of specialised competencies, consultancy, and software solutions – helping clients every step of the way from identifying needs to smooth software implementation. “Technology and people are the future yin and yang – if done right, the outcomes will be greater than we can imagine,” Upscaling our tech skills As we continue our quest to shape the future of risk management, we have invested in upscaling our more technical competencies within Artificial Intelligence (AI), machine learning, and software solutions. At the beginning of 2020, we also joined the AI Studio – a collaboration with Deloitte colleagues across EMEA. The AI Studio creates a unique platform where our young tech talents collaborate with international colleagues on developing the tech solutions of the future by using data to solve complex challenges such as data mining, process mapping, and GDPR. Preparing for the future Product services such as cloud and SAP S/4HANA will increasingly represent a bigger portion of our work, as clients embark on their digitalisation journey. The global pandemic will most likely speed up this process, as clients acknowledge the value of having a business that is geared for the digital future. Another effect of COVID-19 is the increased demand for IT compliance, as the rising usage of IT collaboration tools has underlined concerns regarding security and confidentiality. Therefore, as the world continues to digitalise, we will continue to tailor our advice so it enables our clients to manage and leverage the risks of the ever-changing ‘new normal’.
Tax & Legal - helping our clients operate on a global scale
Tax & Legal has had another strong year. Despite the impact of COVID-19, we grew our revenue by 11%. We did experience a slow-down after the pandemic hit, especially within mergers and acquisitions (M&A). However, it did not affect us as much as we expected, and we saw an increased demand for other services such as research and development incentives, supply chain transformations, and governmental aid package utilisation. The growth was primarily driven by a combination of new service offerings such as SAP S/4HANA, tax technology and global complexities such as transfer pricing and outsourcing of compliance services. We also managed to win a few large contracts that involve handling all of our clients’ global compliance obligations. The pandemic did put pressure on our leadership skills, because learning to lead and support our people from the distance was a challenge at first. However, it was a challenge that we as a team managed to overcome.An increased demand for global services The past year we have also seen an increase in the demand for legal services. This is partly driven by the fact that Deloitte provides legal services in an increasing number of countries, while many clients see the advantage of having the same tax and legal service provider – especially in restructurings and M&As. Within the latter, we have also experienced growth, which to a large extent is due to the fact that we have assisted a number of Danish multinational clients with foreign acquisitions. "We are proud to have been awarded the Transfer Pricing Award, which is a testament to our ability to work globally and with the brightest talents in the industry" We are proud to have been awarded Transfer Pricing Firm of the Year at the 2020 ITR European Tax Awards. Finally, we continue to see the benefits of the global integration within Deloitte. The formation of Deloitte North & South Europe has enhanced our cross-border collaboration and thus given us additional benefits in how we serve our international clients as well as a higher degree of mobility within Deloitte. Talents and transformations will drive future success Over the previous years, Tax & Legal has managed to attract, retain and promote talents through a strong talent pipeline and a focus on diversity – in all forms and aspects. More than 50% of our fantastic Tax & Legal colleagues are female, and diversity will continue to be a key focus area in our talent development. Looking ahead, we expect that COVID-19 will have a short-term effect on the coming year. However, we expect to see an increasing demand for our services in the long term – partly due to the many business transformations we expect among our clients.
Consulting - a true team effort
When Denmark went into lockdown, we went from being a physical practice with a physical workplace and physical client engagements to being a 100% virtual organisation in less than 48 hours. We did not have a strategy to handle a global pandemic, but we surely had culture. Thanks to our people for throwing away their reservations, for rolling up their sleeves, and for making our new reality run more smoothly than we could ever have hoped for. The incredible effort that our entire organisation pulled through secured us a result that we are extremely proud of, given the unprecedented nature of the circumstances we had to deal with this year. Because some of our major projects for Danish headquartered clients have not been invoiced and accounted for in the Danish Member Firm but in other Member Firms, our actual revenue growth is higher than disclosed in the profit and loss account – it comes to 13%. The variance reflects global client projects delivered by Danish resources but invoiced outside of Denmark. “We did not have a strategy to handle a global pandemic, but we surely had culture.” Our clients’ preferred transformation partner The transformation towards digital business models is more relevant and pressing than ever before. Indeed, most of our client dialogues this year have reflected the need to embrace technology in order to respond faster to changes in market conditions and customer preferences. The opportunity to support many of our clients in taking critical steps towards integrating digital technologies in some or all of their business areas has been extremely rewarding, and we aspire to continue to help them on these extremely important and complex journeys. Also, supporting the CFO has once again been one of our absolute strongholds this year. Making sure that the business case of a transformation journey is realised is a central aspect of the impact we deliver to our clients. Having acquired and invested immensely in new competencies this year going all the way from SAP S/4 Hana (incl. the acquisition of a team from Acomi) and Cloud to Salesforce and Analytics & Cognitive, we now have the entire range of skills to move our clients to the forefront of digitalisation and to gain a competitive foothold after the crisis.Our Public Sector team is intact Despite the Government’s decision to cut back spending on management consultants, which affected our Public Sector team within areas of strategy and analysis, we still stand as the premier consultancy in the Public Sector, with strong technology-enabled transformation offerings helping the sector navigate through difficult times.Connected to make an impact for our clients In the face of difficult market conditions, companies are increasingly choosing advisers with a proven track record of making real impact and ready access to global specialists. After decades of growth, Deloitte continues to be the number one consulting organisation in the world as ranked independently by Gartner. We are committed to both enforcing and strengthening this position in the coming year, not through financial optimisation or management decisions, but entirely through our hard-working, talented, and ambitious people. Delivering seamless, borderless solutions across the Nordics, Europe, and the rest of the world is a core component of our commitment to our clients.
Financial Advisory - becoming fully industry-specialised
This year, we have worked hard on becoming the fully industry-specialised business we are today – delivering better and more relevant advisory services to our clients. As a result, all of our service lines have reached their budget except for one. Financial Services Advisory unfortunately delivered behind budget because the majority of the market activities took place beyond Danish borders. We operate in a notoriously cyclical market, which is why the COVID-19 situation has naturally affected our business as well. This leaves us with an 8% decline in revenue – but well positioned for the future.Targeted market offerings We have reached several milestones during the past year. Deloitte Economics has seen the light of day. The new service line offers financial advisory at a micro- and macro-level while combining economic analysis with a strategic, commercial outlook – an offering that has never been more relevant. In addition, we have professionalised our debt advisory and built a liquidity and specialties unit – a unique constellation that can help our clients through this unusual situation. Finally, we have consolidated our three advisory units into one fully industry-specialised unit.Steering through a cyclical ocean Operating in a cyclical market means that we always need to be vigilant. Therefore, we decided to send our people home at an early stage, before the COVID-19 situation escalated. We were already an agile business where digital collaboration tools were a natural part of our workday. Nevertheless, we had to adapt to a different way of working. To equip our employees for this new situation, we invited external speakers to hold virtual courses on how to have a good and productive workday from home, how to lead from a distance, and how to maintain good client relations. “We are proud to service our clients with industry-specialised teams and an unparalleled product offering” Looking into a market post COVID-19 Despite current uncertainties, there is still a great deal of equity in the market, so we anticipate a reasonable and balanced transaction volume in the market. Inevitably, some clients will need help with restructuring and refinancing in the wake of COVID-19. Going forward, we will focus on helping our clients with this and gear their business for future success. Consequently, we expect a rising demand for our services within debt advisory, liquidity and special situations.