Building trust in a year of uncertainty
By Anders Dons, CEO & Partner
This past year has seen unprecedented uncertainty, and we have focused on responding, recovering and thriving post the pandemic. We have continued to reshape our business and helped our clients reshape theirs by building resilient leadership, making businesses more agile and accelerating innovation. As individuals, in teams and together with our clients, we have embraced megatrends as opportunities for growth rather than perceiving them as limitations.
Our purpose is to create an impact for our clients, our people and the society we are part of. While our purpose is not new, it feels more relevant than ever, because it reminds us that we are here to help our colleagues and clients build a sustainable business and society built on trust that we can pass on in a better state for future generations. Our aspiration is to be the #1 or #2 within all the business areas we choose to play in. Our values are our guiding principles on how to create impact, be inclusive and take care of each other. In short, help build trust between institutions and people.
Helping our clients into the future
While our people and their wellbeing are the heart and mind of who we are and what we can deliver, our clients are at the core of everything we do. In the past year, our efforts have particularly been channelled into helping our clients accelerate their digital transformation, business transformation and climate responsibility as well as providing trust in our capacity as auditors. Our focus is on helping our clients build a resilient business. We have continued to invest in our people and build capacities across our business, including our technology, SAP and business transformation capabilities - which we have also applied to our own operations with the implementation of a new global ERP-system based on SAP’s S/4HANA platform as well as SuccessFactors to improve talent management.
To meet the growing need for advice on climate and sustainability, we have also invested in our climate competencies, as we increasingly help our clients navigate through climate targets, strategy, measurements and advise governing bodies on providing the right framework to measure climate footprint. Moreover, another year with COVID-19 means that we have continued to guide clients through this challenging situation, the financial aid packages and the special audit circumstances have implied.
With 2,800 people in Denmark and 345,000 worldwide, we continue to deliver transformations and solutions to both large, global corporations and help SMEs grow their business and realise their ambition. To give our clients the best of Deloitte, we continuously utilise our strong industry focus and global network of competencies and centres of excellence.
Celebrating and caring for our people
Our people bring our purpose and values to life, and they carry, develop and refine our culture every day. Together we have taken the future of work to a new level this year – accelerated by the pandemic which forced us to discover new ways of working and serving our clients in new ways. Today we are offering a more flexible workplace, we have adapted our leadership style to fit the new ways of working, where we have found alternative ways of working closely with our clients - even from afar. Offering our people lifelong learning and a community for life has only become more pertinent as change and uncertainty increasingly shape our world. Read more about what we have done to strengthen this in ‘How we coped with COVID-19’.
Creating a diverse workplace is one of our most important commitments. And we are progressing on diversity – particularly around women in leadership. In Denmark and in Deloitte, we have had a strong objective of getting more women at the top levels but progress in the past few years has been slow. It takes time to build up the female talent pipeline and to change the culture to include more diversity. Diversity is what our clients expect, and it is the only way to create competitive solutions in the future. So, this year I am really proud that we are moving in the right direction with 40 per cent of newly appointed partners being female as well as a new female business leader and a female industry leader. We still have work to do, but we are making progress.
Having a voice in society
Small Great Nation is our flagship social impact initiative. For four years, we have influenced the public debate with analyses of Denmark’s future and potential together with think tank Kraka. We have engaged business leaders as well as other opinion leaders and established a youth panel that has formulated a vision for Denmark.
We also have a global climate ambition of becoming carbon neutral in 2030. We call this WorldClimate, and it involves an external ambition to co-create with our clients and create climate conscious solutions for our clients as well as an internal ambition with clear targets for lowering our CO2 emission - e.g. by ensuring a greener car fleet, reduction in travel and other green initiatives.
Facts about Deloitte
Deloitte is part of a global firm consisting of 345,000 employees across 150 countries that just turned 176 years old. I am proud to be part of a firm and culture that have been able to innovate through four industrial revolutions and show resilience to withstand crises like a worldwide pandemic while continuing to innovate towards the future.
In this year’s Impact Report - our annual report - we have gathered some of the great stories of impact from the past year. I hope you will enjoy the read.
CEO & Partner
This report constitutes the statutory CSR report, cf. Sections 99a and 99b of the Danish Financial Statements Act.
Our FY23 Ambition - still connecting for impact
Through the past year, we have continued to stand strong on our purpose, ambition and values. Last year, we launched our new strategy for the fiscal years 2020-2023, and alongside our clients we found ourselves in an unprecedented situation. The international community was facing one of the biggest challenges imaginable and outlooks were uncertain. Like many others, we were heavily influenced by the pandemic, but we continued to trust our direction: growing our people and skills together with our clients and transforming our business while building our brand. By putting our clients first and investing in our people, we have managed to come out as an even stronger firm. A firm with a continued ambition to be undisputed leader within professional services.
We embarked on the journey with three clear choices that reflect our ambition and lay the foundation for our strategy going forward: We connect for impact, we foster diversity of thought, and we keep on investing in the future. These choices set the direction for our firm and so far, they have proved effective. They have allowed us to make an impact that matters for our clients, talents and society – even amid a year of a black swan event. You can read more about these choices below.
Embarking on a new normal
In the aftermath of the pandemic, our strategic direction will remain. And as the pandemic has accelerated some of the megatrends already influencing our strategy, new focus areas are given priority. For instance, we have been able to leapfrog years of development when it comes to our ability to work digitally with clients across the globe and providing a high level of flexibility that our employees and clients can enjoy through digital ways of working. Through this, we have made room for a more diverse workforce and range of projects and are able to accommodate the needs of talents with different lifestyles and at different stages of life.
These post-pandemic learnings are opportunities that we apply in our firm every day and leverage in our strategic development, as we now look towards a brighter future where we will create an even bigger impact as the world reopens and we embark on a new normal. A normal where we utilise our position as market leader to influence society towards creating a sustainable future for the climate and for our people.
Our business model and network
The main activity of Deloitte Denmark is to deliver audit and advisory services in Denmark and Greenland. Our firm is organised in five business units that deliver services within audit and assurance, consulting, financial advisory, risk advisory, tax and legal. Our business units provide audit and advisory services to private and public clients across industries and sectors. Our main assets are our talented people and tried-and-tested business models and systems, and we deliver insights and transform our clients’ businesses while serving the public trust. A core element in how we serve our clients is our deep sector and industry specialisation, which allows us to serve our clients with in-depth specialist competencies from across our global network. Read more in ‘Making an impact for clients’.
The Deloitte network is a globally connected network of member firms and their affiliates operating in more than 150 countries. These separate and independent member firms operate under the same brand. Deloitte Statsautoriseret Revisionspartnerselskab is a part of the Deloitte network through Deloitte North and South Europe (NSE).
To provide global, borderless and consistent service to our clients we started an integration journey in 2016. Until 2016, Deloitte Statsautoriseret Revisionspartnerselskab was the Danish member firm of the Deloitte network. In June 2016, Deloitte Denmark became one member firm with the other Nordic countries through the establishment of Deloitte Nordic, and in June 2017, Denmark and the other Nordic countries entered into closer cooperation with the United Kingdom, Belgium, the Netherlands and Switzerland. In 2018, Malta, Italy and Greece joined the partnership and in June 2020, the Middle East joined us. Today, Deloitte NSE has over 50,000 people working across 28 countries in Europe and the Middle East. These integrations are part of the global strategy to transition into fewer globally aligned and integrated regions.
Within NSE, the 28 firms still operate as separate independent legal entities and provide services in their respective countries in accordance with professional standards and our promise of creating an impact that matters. By joining forces, we are able to draw from an incredible diversity of skills, expertise and perspectives and provide global, consistent and seamless services to our clients. Our collective strength allows us to build centres of excellence, share deep specialist knowledge and service our clients with local experts on a global scale. Our ability to deliver the best competencies across borders and disciplines will be catalysed by our market programmes focusing on collaborating with clients and in partnerships with other leading players. By cooperating closely within our global Deloitte network, we have been able to deliver international projects at an unprecedented scale, which would never have been possible without the strength of our Deloitte NSE network.
Statement of comprehensive income
We have continued growth and consolidation of our position as a strong professional audit and advisory firm in Denmark with an organic growth rate of 4%. Revenue totals DKK 3,748m compared to DKK 3,588m in 2019/20. However, the major impact on the revenue stems from the growth in revenue from clients with headquarters in Denmark but invoiced outside Denmark, which goes far beyond the revenue accounted for in the annual report. In line with our global strategy we have in recent years accelerated the exploitation of competencies from other member firms in order to bring the best of Deloitte to our clients no matter where the client is domiciled or the origin of our resources and competencies. Some of these projects can be invoiced and accounted for in the Danish annual report and others cannot. Taking the latter into account, revenue would have been DKK 4.4bn or a growth rate of 5%.
Revenue by business unit