2020 Annual Report
Stories of our impact
Namastay at home
When the UK went into lockdown, there was no playbook for how to deal with the uncertainty. Naturally our people felt worried about friends and relatives, together with feelings of anxiety and being unsettled. For many of us, simply adding ‘must look after my own wellbeing’ to a to-do list felt overwhelming.That’s why we started The Wellbeing Movement – a virtual timetable of events, classes and drop-ins updated weekly to help our people look after themselves. Some sessions were delivered by our expert third parties, but most were crowdsourced from our kind, creative, talented community of people. There was something for everyone. Virtual running clubs, online choirs, language lessons, banana bread masterclasses, kids drawing workshops and bhangra sessions. Thousands of people engaged with the huge variety of sessions and connected with each other. Here, three of our people who played a key part of The Wellbeing Movement share their stories. Their creativity and generosity have taught us a lot about the kind of firm we want to be in the future. Ai-Linh, master of zen Teaching yoga has been a side hustle for Ai-Linh Tran ever since she completed her training in Melbourne. Five years ago, she moved to the UK and joined our HR team. Alongside work and her personal practice, she taught a class in a central London studio once a week. Then lockdown happened. When asked if she wanted to teach a session for colleagues on Zoom, it was a big yes. For more than three months, every Friday morning she led a Vinyasa-style class, focused on synchronising sequences of movement with the breath. “Teaching colleagues was slightly nerve-wracking at the start, but we quickly settled into a student-teacher dynamic,” says Ai-Linh. “I hosted the sessions from my lounge room, which for London standards is luckily big enough to move around in. I also added a few tweaks like candles and soft music. “The feedback has been lovely – the chats at the end of the class, the little thank you notes, people joining with their partners… I’m grateful to have had the opportunity to support my colleagues during this tough time.” Steve, the pet whisperer Steve Rice, one of our Learning & Development business partners, volunteered to run one of our most popular activities: virtual pet therapy sessions, assisted by his friendly cockapoo Rufus. “Rufus joined our family after my time in the Army, to support my physical and mental recovery,” says Steve. “I suffered a serious knee injury in an explosion while serving as an infantry officer in Afghanistan, which caused chronic pain and severe post-traumatic stress disorder (PTSD). “Rufus has been a great help over the past few years – he gives me perspective and reminds me to go for a walk in the park. I thought, why not bring our pets to work to help connect people across the firm who might be feeling lonely or in need of a distraction?” The sessions were straightforward – take a break from work, join a Zoom call with your pet and have a chat. Lots of people and pets joined over the following months – dogs, cats and this is my lamb! We’ve never seen so many smiles on a conference call… Shaunel, our tech guru Shaunel Gounden, an advisor in our learning operations team, had already been doing a lot of work to empower our people to get the most of the technology they use every day. Her drop-in, bite-size learning sessions – she named them Tech Bytes – have helped many discover key features of the technology platforms we use. When we all started working from home for a longer period of time, Shaunel quickly switched to a virtual format to help people adjust to remote working. She also launched a special edition all about how to take greater control of our digital wellbeing. “We're using technology more than ever to do our work, entertain ourselves and keep in touch with our loved ones. But that much screen time can have a detrimental effect on our wellbeing,” says Shaunel. “The sessions are just 15 minutes long and cover everything from mailbox stress and Zoom fatigue to managing notifications and eye health.” The numbers say it all. She’s helped over 3,000 colleagues have a more positive relationship with technology during lockdown.
Time for a New Beginning
Deloitte's Cardiff Delivery Centre (CDC) currently employs around 1,200 people. Growing by more than 25 per cent last year – a rate that is set to continue – it is home to a wide range of support services that are vital to our firm. And with expertise in areas as diverse as robotics, financial crime and audit, there are opportunities for a range of exciting careers. “One of our priorities at the CDC is to create a workforce that reflects the local community” said Deloitte director Ross Flanigan “and puts our firm at the very centre of the region’s growth.” Our New Beginnings initiative, a collaboration with Cardiff and Vale College, is one way in which we’re building business skills in the local area, with the target of equipping participants with skills and experience associated with beginning a professional or financial services career. It’s also created a pathway into our firm for those with the ambition to join our Cardiff team. Working hand in hand Bringing together the knowledge and skills of our Cardiff team and Cardiff and Vale College has been essential to building a course that’s tailored to the needs of businesses as well as the local community. A key feature of the programme is that it removes a number of barriers to education, providing financial assistance with travel and childcare costs, support with additional learning needs, the provision of lunches and the loan of laptops. “We’ve worked hand in hand on the detail and implementation of the course” said Martin Condy, senior manager for employer partnerships at Cardiff and Vale College. “Not only does the programme provide opportunities for employment at Deloitte, it also provides training, knowledge and experience that is beneficial to individuals who may not have considered a career in this sector or who have experienced barriers before.” Funded by our firm, with a contribution from the Welsh Government, New Beginnings focuses on developing technical and soft skills to give participants the knowledge, confidence and skills many employers are looking for. Participants also have the opportunity to achieve qualifications including City & Guilds awards and Microsoft Office certifications. Lewis Sweeney, an Audit & Assurance project support associate based in Cardiff, took part in New Beginnings after hearing about it through a friend. “Before this I was working in Tesco in stock control and got made redundant, which is why I applied for the course.” “What was offered really suited what I was looking to go into – my new career path. I’m interested in establishing my own business in the long term and knew I’d benefit from exposure to, and experience of, accounting and audit.”“The interview skills training was what attracted me the most. I always felt I was ok at doing job applications - but the interview skills were really beneficial and helped me to feel like, when I had an interview, I would be able to make the most of it.”“Learning more about Microsoft Office and getting the qualification was also useful. I’d already used it, but still learned a lot from the course, especially the certificate in Outlook which I use all the time now, even outside of work.” “This programme has been valuable because it’s got me a job – it couldn’t be any more valuable than that! In my role now I do things like budget monitoring, invoices, making sure we stick to schedules, admin and project management.” “While I am at Deloitte I’d like to gain more experience and more responsibility. It’s about pushing and challenging myself as much as I can.” Removing barriers In line with our ambition to make a difference to the employability prospects of up to 100 people in the region, 59 people so far have completed their training, with further trainees ready to begin in the autumn. To enable the course to continue throughout the pandemic, Cardiff and Vale College have offered virtual sessions in small groups and on a one-to-one basis, and are further developing the programme to blend remote and face-to-face training. Increasing confidence Past delegates have commented that the programme has increased their confidence, enabled them to learn more than they expected and been valuable for their future employment prospects. The success of the initiative so far has led to it gaining wider interest among Cardiff-based businesses that would like to emulate it. “I’ve often commented that this programme really is making a difference, raising aspirations for individuals and their families” Martin continued. “With the current challenges facing individuals looking to upskill or move into a more rewarding career, the New Beginnings programme has become more relevant than ever.” “We are, as ever, proud to be working with Deloitte on such an inspirational programme that encourages aspiration and offers a real opportunity for the communities we work within.” New Beginnings is one of the many social impact programmes run by Deloitte UK as part of our goal to impact One Million Futures. In 2020 we achieved this ambition and now aim to help an additional 5 Million Futures across North and South Europe by 2030.
Twenty-first century lawyers
Qualifying to practice law can be difficult for those who need to earn a living straight after they graduate. “Taking an additional LPC or law conversion is prohibitively expensive for some graduates” said Michael Castle, UK managing partner for Deloitte Legal “which can be a barrier to entering the profession.”Our Solicitors Qualifying Education (SQE) training contract is changing that. A collaboration with ULaw, it widens access to legal training by enabling graduates to earn while they learn. Replacing the LPC and law conversion courses, the programme offers graduates the chance to gain valuable work experience in our legal practice even before sitting their exams. “After studying my conversion to English law through evening classes whilst working full time, the ability to continue earning throughout my entire qualification route was a major draw to Deloitte’s training contract” said Fraser Morrison, who is part of the course’s first cohort and has a Scottish Law degree. A new generation of talent As an early adopter of this new qualification, we’re looking to set a different kind of legal precedent and build a new generation of legal talent. “It’s important that our lawyers are from different backgrounds” Michael continued. “Paying attention to people’s different life experiences is the way to build a strong team with a diversity of ideas – and that’s how we will make the best impact for our clients.” A key part of this approach is building trainees’ experience of the firm’s pioneering legal technology. It’s another sign of sweeping changes in the legal profession and the in-demand tech skills that will put our recruits ahead of the competition. “We’re in the fortunate position of being able to immediately adopt the new SQE and build in training in legal technology” continued Michael, “putting us at the forefront of an exciting new era in legal education and training.” An inclusive approach Launched at Deloitte in 2020, our first course attracted an overwhelming response from graduates who will qualify as solicitors in 2023. Recognising the importance of designing an inclusive recruitment process, we collaborated with diversity-recruitment specialists Rare. Together, we designed an application process that uses contextualised academic and economic data to widen the talent pool and remove any unconscious bias. Enabling us to identify candidates with the greatest potential, it is a vital part of our plans to foster a new generation of high quality, forward-thinking solicitors. Practical experience and academic study The Solicitors Qualifying Education (SQE) combines our industry insight and ULaw’s academic expertise. “With the new SQE training contracts allowing students to experience the real legal world earlier in their career and education” says the university’s Vice-Chancellor and CEO, Andrea Nollent “we are teaming up with Deloitte to continue providing practical, hands-on legal education.” In their four days a week at the firm, graduates will learn on the job, immersed in our specialist areas of practice including tax litigation, employment and corporate and commercial law. They’ll also learn to integrate the firm’s proprietary legal technology, including AI-enabled contract management tool dTrax, and legal compliance portal MyInsight into their practice. Legal BrightStart Apprenticeship In addition to the graduate training contracts, we’ve also included new legal apprenticeships as part of our successful BrightStart Apprenticeship. The programme offers students the chance to gain professional qualifications while being fully immersed in a job helping to solve some of Deloitte’s clients’ most challenging problems. Dimple Agarwal, Deloitte’s managing partner for People and Purpose, added: “A Deloitte Legal apprenticeship can be the first step in an exciting career, working on projects that have a real impact to our clients’ businesses. We provide training for all of the skills and knowledge needed to do the job."
Helping Social Bite keep feeding Scotland's homeless
People experiencing homelessness and poverty have been among the worst hit by the COVID-19 pandemic, with many food and support services facing closure. Social Bite, with founder Josh Littlejohn at the helm, runs free cafés for vulnerable people in Scotland. With the lockdown affecting many of its services, the organisation was determined to bridge the gap. Reaching those in need One of our Edinburgh-based partners, Kent Mackenzie, is a Social Bite trustee and board member and had been working with Josh to develop the charity. “Within hours – if not minutes – of COVID-19 landing on our doorstep” explains Kent “Josh’s mind was turning to ‘How do I adapt this business to respond to this dire situation?’” The answer came with the support of our consultants who, doing what they do best, helped the organisation to rethink its business strategy. As a result, throughout lockdown, Social Bite's kitchens, cafés and teams have been redeployed to produce and deliver thousands of fresh food packs, meals and essential supplies to those who needed them. We’ve also offered further practical assistance as its operations develop. A donation from Deloitte funded 8,800 meals in lockdown and we continue to offer further practical assistance as operations develop. Distance not a barrier This work has shown that, despite social distancing measures, communities can still come together to look out for the most vulnerable members of society. Deloitte partner Kent Mackenzie continues: “In the current circumstances this project has proved particularly important to ensure people don’t go hungry and we are proud to be a part of the response effort.” “Helping those in need is not the responsibility of only one individual or one organisation. We have worked with Social Bite for a number of years but expanded our support in these challenging times so that they can continue to make an impact that matters.” “I have a huge passion for working with the community practically. With COVID and the situation we find ourselves in, the need to provide support to these communities and groups is even more acute.” Supporting social enterprises Social Bite are one of the many social enterprises supported through our One Million Futures social impact programme. This initiative has now supported a million people with access to education and employment, through partnerships with more than 70 charities, schools and social enterprises. Many of these organisations have faced significant challenges during the pandemic – at a time when critical frontline services have been needed the most. To help, our Coronavirus Fundraising Appeal has supported a range of important initiatives, such as accommodation for rough sleepers, equipment for schools and call centres for people needing mental health support. One Million Futures Having achieved our ambition to impact positively on One Million Futures in 2020, we are now working towards supporting an additional 5 Million Futures across North and South Europe by 2030.
Rebuilding after a lockdown cyber attack
As UK lockdown measures came into effect in response to the global outbreak of COVID-19, the challenges posed to every business came into sharp focus. Overnight, workforces switched to remote working practices and entire supply chains, from grocery to car production, adapted to meet changing demands. For one UK-based engineering firm, another undetectable threat was also looming. On the first Friday of lockdown, its systems were targeted by a ransomware attack. The firm turned to our cyber team for help. Total outage The ransomware attack that was launched disabled the client’s entire system, taking the team offline across all of its sites, including its UK headquarters, and locations in the rest of Europe and Asia. Within hours, Deloitte deployed a team of 40 to start a system rebuild. Over the course of three weeks, the firm was back to an operational state. During that initial project time, in addition to a complete systems outage, Deloitte’s cyber experts had to contend with the challenges posed by the outbreak of COVID-19. With lockdown measurements already in place at the time of the attack, and government guidelines on social distancing prompting a shift to working from home, the team had to conduct the project almost entirely remotely. What would usually be done in situ – from client interactions to the writing of code – was done, in many cases, hundreds of miles away from the attack epicentre. Recovery and future-proofing Deloitte helped clean up the targeted system to ensure operations could rapidly get back up and running. An initial cyber investigation was conducted to establish the “who, what, when, where, and why” of the attack and, crucially, identify which part of the compromised system was open and vulnerable. By prioritising pressures in its supply chain and working with the Executive and IT team, we were able to recover existing business systems to reduce the likelihood of reoccurrence, whilst assessing the robustness of security controls to help structure the company’s future IT strategy. Closing the door to hackers With so many UK workers operating from home, just having secure ways of emailing was imperative. The result of Deloitte’s work meant the business, once operational, could carry on with its work but with greatly improved security controls in place. The system rebuild has ensured that any open back door is now firmly closed to would-be hackers – and they’ll have far more difficulty unpicking the locks in future.
Our Black Action Plan
As a firm we are proud to lead with purpose and values. So it is important to recognise that, while we have made some positive progress on inclusion in recent years, ultimately the actions we’ve taken in the past to create a more diverse workplace are simply not enough. To start making meaningful change, we first wanted to understand and hear from our people, specifically our Black colleagues. Listening sessions provided an opportunity for our Black colleagues to share their personal experiences of racism and discrimination, and for all of our people to have a frank discussion about how to take action together. Understanding and action The first initial impact has been understanding. The second is our Black Action Plan. Richard Odufisan, a manager in consulting and one of the action plan leads, sums up the impact to him: “As a Black person, I felt Deloitte empowered every member of the Black community to be seen and heard. The listening sessions provided a non-biased platform to tackle inequality and microaggressions.” “And for some non-Black colleagues, it was the first time they were exposed to hearing such stories and gave them an insight to a breadth of experience outside of their own realities.” Brought together by colleagues from across the firm, including our People & Purpose leaders, our Ethnicity Council and our Multicultural Network, the plan was shared in a webinar hosted by CEO Richard Houston and People & Purpose leader Dimple Agarwal for all of our 20,000 people in the UK. It’s there to make sure our ambitions are backed up with sustained action we can hold ourselves accountable for. Action plan – why it matters Our plan addresses specific challenges faced by the Black community. It is not a standalone plan, but is embedded in our wider inclusion agenda. It is also part of our global shared values of inclusion and taking care of each other. Based on five key commitments, the plan covers everything from our recruitment practices, opportunities for development and promotion to how we engage with our clients, and the charities and social enterprises we support. Our Black Action Plan Each action comes with measurable objectives that ensure we will: 1. Provide equal opportunities We will review every step of the employee lifecycle – from how we attract and recruit talent, through to promotion and pay processes to ensure our Black and Ethnic Minority colleagues are treated fairly. 2. Focus on developing people to succeed and thrive We will design and deliver development programmes that support our Black and Ethnic Minority colleagues to thrive and become leaders of the future. 3. Drive and evolve culture and behaviours Recognising that achieving real and meaningful change requires everyone to think and act differently, we will implement cultural change that starts with education and understanding. This will include rolling out a mandatory training programme on ethnicity and race, and launching a Black Allies programme within our firm. 4. Influence change We will continue to use our network to help bring about social change – working with clients, industry peers, charity partners and suppliers. This includes developing a new relationship with The Stephen Lawrence Charitable Trust and expanding our portfolio of Black-owned social enterprises to include the Black Curriculum. 5. Measure and report on targets and outcomes We are committing to 12 per cent of Ethnic Minority and 3 per cent of Black partners by 2025. We will also commit to targets across other grades to create the future pipeline. Our leaders will be held accountable for these targets. Moving in the right direction - together We recognise that we are all starting at different points – and are determined to move together in the right direction. This series of deliberate actions will help us to improve diversity, equality and inclusion in our firm and - critically - change the experience of our Black colleagues for the better. Dimple Agarwal, managing partner for People & Purpose, added: “We have listened, learned and started an important journey with people across the firm and with our Black colleagues. I want to personally thank my colleagues who have shared their stories so courageously and provided honest feedback.” “I have been humbled, saddened and shocked by what I’ve heard. We are deeply committed to this action plan and the wider commitment by the firm that we can, and will, make a change.”
One Million Futures made brighter
One Million Futures. It was a big number. An ambitious goal. And we set ourselves just five years to achieve it. Four years on, in 2020, we reached our goal of positively impacting one million people - ahead of schedule. From the classroom to the boardroom, we've helped people from different backgrounds all across the UK by raising aspirations and improving skills. Others we've helped by working with 70 of the most inspiring charities and social enterprises, who support disadvantaged people across the country. And having reached a million futures, we’re not stopping there. One million stories To celebrate reaching one million we asked five people to tell their stories. Tracey, Akira, Russell, Moses and Solomon started in very different places and had different goals. But the thing they have in common is that, they're now on their way to where they want to be. Their stories are a powerful reminder that no matter where you start, and wherever you want to go, a helping hand can make all the difference. Solomon As a kid, Solomon didn’t care much for school. Like many teens, he’d rather be on the football pitch working toward his dream of playing for Arsenal than stuck in the classroom. If only he would apply himself with the same determination and focus he demonstrated on the football pitch – potential that earned him captaincy three years in a row. In the classroom, he lacked an end-goal to aspire to. He had no clear idea of what his studies could lead to, or what future doors could be opened. That was until a meaningful mentorship with Deloitte. A game-changing mentorship Solomon was introduced to Deloitte through our school mentorship programme at Solomon’s school - St Mary Magdalene Academy in London. He was matched with a Deloitte volunteer with whom he could discuss his future. Where did he see himself going after his school years? What career paths had he considered? Who did he want to become? Beyond one-on-one conversations, Solomon took concrete steps to sharpen his skillset. With the encouragement of his mentor, he participated in leadership skills lessons, CV workshops, and current affairs analyses. He said that through this relationship with Deloitte, he began to realise his own ambitions, to refine his existing qualities and skills. Solomon began to apply the same focus and determination he exercised on the football pitch to his studies. In fact, his mentor helped him see that many of the skills that made him a valuable football captain could be translated to the classroom. His grades steadily increased. He became confident in class. He was even a contender for head boy in his final year. The cherry on top? Solomon landed a place in his university of choice. He is now studying at Liverpool University with ambitions to become a lawyer in the future. Deloitte schools programme The Deloitte schools programme works to address educational disadvantage across the UK. One Million Futures believes that where a child is from should not determine the quality of their education nor their future opportunities. With over 20 school partners across the country, the programme offers a variety of activities to support students in overcoming barriers to education and employment and realise their potential. From mentorships such as Solomon’s, to speaker sessions and ongoing workshops that build skills and broaden the aspirations of students, the programme supports brighter futures in a variety of ways. Solomon is just one of the people that we have helped through this ambitious programme and we couldn’t have done it without our network of society partners and our wonderful volunteers. Janet McGuigan, Deloitte relationship manager for St Mary Magdalene Academy The benefits of the programme are far reaching, for our Deloitte volunteers, being part of the One Million Futures programme is extremely rewarding. Janet, who is both a school mentor and volunteer coordinator for the One Million Futures programme at St Mary Magdalene Academy, says working with students and opening their eyes to new possibilities has been hugely impactful – not just for the students, but for the volunteers as well. “People volunteer to help others for many different reasons – the end goal is to make a difference to others, and it feels good to achieve that. But volunteering makes a huge difference to those that volunteer too. I have seen people blossom in volunteer roles, become more confident, learn new skills, make new meaningful connections and become happier at work”. Claire Burton, responsible business director, Deloitte UK Programme Director Claire Burton is extremely proud of achieving our One Million Futures target, particularly the impact we have made thorough working with our society partners. “We know our professionals make the greatest societal impact when they use their skills and expertise to help people and organisations” said Claire. “So that’s what we do – our people use their skills as leaders, mentors and problem-solvers to help individuals get to where they want to be through access to education and employment”. “We are not stopping here and we look forward to continuing this work!” Another 5 million futures Now we’ve reached a million futures, we’ve set ourselves a new challenge. We are working towards impacting a further 5 Million Futures across North South Europe and the Middle East, as part of our global WorldClass ambition to help 50 Million Futures by 2030.
Staying connected through the COVID-19 pandemic
Smartphone ownership reached a peak in the UK in 2019 – and with 89 per cent of people now having access to a handset, so many of us take for granted the ability to access essential services and connect with others whenever we like. Yet, against this backdrop of increasing connectivity, 1.9 million households in the UK do not have access to the internet. And for many more, meeting the cost of staying connected can be difficult. For those without access to technology, restricted access to opportunities and services is a growing problem – which was only exacerbated by the COVID-19 pandemic. Supporting the digital inclusion agenda With online activity increasing and many businesses moving their services and operations online, building digital skills is a vital part of meeting future demand in the workplace. However, the Lloyds Consumer Digital Index 2020 highlights a significant gap: 17.1 million people in the UK do not have the essential digital skills required for work. Recognising the importance of addressing this digital divide, in January 2020 Deloitte signed up to be a member of the industry coalition, FutureDotNow, which is committed to empowering everyone to thrive in a digital UK. “As a large employer, we have a responsibility to tackle digital exclusion and help to ensure that, as a nation, we remain productive and competitive” said Deloitte senior manager Holly Chate, who provides pro bono support to FutureDotNow. “Along with industry bodies, charities and other businesses, we’ve pledged to work collaboratively on this issue, to share tools and resources, and build the digital skills of both our own workforce and in society.” Providing emergency support during COVID-19 As the COVID-19 pandemic hit, FutureDotNow recognised that those with no access to the internet nor the essential skills needed to operate safely online during lockdown. To help, we’ve supported their emergency DevicesDotNow campaign, through which businesses are helping those who need online access by donating funds, devices and connectivity. Vulnerable people of all ages found themselves isolated in their homes unable to contact their loved ones or access essentials like food, prescriptions and money. In response, FutureDotNow created DevicesDotNow, an emergency campaign to help those households with no internet access. The campaign asked businesses to donate funds, devices (tablets, smartphones or laptops) and connectivity. Teams then prepared the sim-enabled devices and delivered to those in need, together with connectivity and socially distant support to get online. Supporting the campaign To support the campaign, Holly provided strategic programme management expertise on a pro bono basis for the external-facing aspects of the programme. “There was already a waiting list of over 8,000 people known to the organisation who were digitally excluded - so there was no time to waste in getting a device to those most in need” she continued. Sharing expertise “It was a real team effort” Holly said. “As the programme manager, I created structure and provided clarity on the priorities, and was responsible for ensuring our teams worked together in an integrated way and at pace.” Key priorities were raising awareness of the issue in the media and with key government departments, and mobilising fundraising efforts with major grant givers, many of whom were offering emergency grants during the crisis. Within the first four months, multiple fundraising bids were submitted, which resulted in £1.4m in funding. Holly adds, “Our crowdfunding and social media campaign #4faces4devices campaign raised the profile in the public eye. This, together with powerful print coverage and media appearances on BBC Breakfast and BBC 5 live, helped us to achieve £12k in individual donations.” The funding was essential to achieve the campaign’s aim of getting devices to people as quickly as possible. By August 2020, over 4,720 people received their device and a further 7,162 people are set to by the autumn. Against an initial target of 10,000 people helped, 11,882 will have been supported. Helping the UK to Thrive To demonstrate our continued commitment to this issue, Holly is now on secondment as FutureDotNow’s Chief Operating Officer. The legacy of the DevicesDotNow campaign will live on through the work at FutureDotNow – which will continue to champion the economic importance of digital skills and digital inclusion. FutureDotNow brings together industry partners and Government to accelerate digital upskilling through coordinated industry action, in support of a 100% digitally included UK. FutureDotNow is one of the many programmes supported by Deloitte UK’s social impact goal One Million Futures. In 2020 we achieved this ambition and now aim to help an additional 5 Million Futures across North and South Europe by 2030.
Supporting a family brand through the COVID-19 lockdown
The outbreak of COVID-19 posed huge challenges to retailers at a time when things were already tough on the high street. As the UK lockdown measures temporarily closed physical stores, much-loved British fashion and homeware retailer Matalan took quick action. Matalan needed to secure additional funding to ride out the pandemic. So it turned to Deloitte for help. A regional presence Established in 1985 on Merseyside, Matalan began life as a family business. It prides itself on providing high quality value-led clothing and homeware to today’s families. The company is an important employer regionally, especially in Merseyside which is home to its HQ, and across the country with over 13,000 staff nationwide. Its place in the local community is further cemented by its ongoing work with charity partners, Liverpool’s Alder Hey Children’s Hospital and the NSPCC, to which it has donated over £13 million. A difficult market “As retailers entered 2020, contending with an already difficult market, the outbreak of COVID-19 meant that, overnight, in-store sales faced a sudden and sharp decline” said Deloitte partner Jodi Birkett. And with over 12 million customers shopping in its stores each year, Matalan needed to find a way to support the business through the initial disruption caused by the pandemic until shops could re-open for business. Securing funding was a key part of Matalan’s strategy to bridge this gap. Closing the funding gap Having advised Matalan for over 13 years, previous work with the business has included helping to restructure its supply chain and warehousing. This relationship gave us a strong understanding of the challenges Matalan was facing and meant were ideally placed to support its people.In response to COVID-19 there was an immediate action to preserve cash, manage working capital, reduce costs and access all available government support. “On this occasion, a multi-disciplinary team from Deloitte supported our client Matalan to raise a new funding package of £50m” continued Birkett.“This included support from its existing bondholders and accessing government funding under the CLBILS initiative (Coronavirus Large Business Interruption Loan Scheme), alongside its three banks extending existing debt facilities.”Our team comprised experts from our restructuring, debt advisory, tax and assurance practices, working closely with the Matalan team to deliver this complex financing solution. Greater financial stability As a result of this re-financing Matalan is now in a stronger position to manage through the current period of recovery and adjustment. With an estate made up predominantly of large and out of town stores, Matalan has been able to adopt social distancing measures in a safe and convenient environment, and customers are returning to its stores. In addition, Matalan has prioritised initiatives that will make its business more agile and efficient across all sales channels, including online. Supporting Alder Hey Not only is Matalan a trusted family brand, but the business has long had a positive impact in its own region, near Liverpool. Aware of the pressures both hospital staff and patients have faced from the COVID-19 outbreak, Matalan committed to donating comfortable clothing and homeware supplies to staff at the Alder Hey Children’s Hospital, with clothing and other supplies donated to hospitalised elderly patients across Liverpool.
Tax advice to get through COVID-19
With so many in need of tax advice after the pandemic hit, it was all hands on deck to get help where it was needed. Matt Ellis, managing partner for Tax & Legal at Deloitte, said: “The work we do with Tax Aid and Tax Help for Older People offers us as advisers an invaluable insight into the public’s understanding of the UK tax system.” “During COVID-19 it was important to ensure the charities were able to operate to the best of their ability, and we were keen to understand how we could help.” “Our links with the charities enabled us to develop an understanding of where there was urgent need in communities; this also led us to create our SEISS (Self-Employment Income Support Scheme) calculator, for anyone who needed to know more about how the government could help the self-employed at such a challenging time.” Support for the self-employed In March, the government launched the Self-Employment Income Support Scheme (SEISS) to help self-employed people across the UK during the pandemic. This led to a need to provide information to vulnerable self-employed people on how they could submit claims, and is an example of how collaboration made a real difference. “We knew from the calls we received that this group needed particular help to access Government support” said TaxAid and Tax Help for Older People CEO Valerie Boggs. “To reach them quickly, we needed to create an effective social-media campaign.” Bringing in the expertise of in-house creative agency Stitch, we worked together with the charities to create a brand new campaign supporting self-employed people to claim financial support via the SEISS. Between March and June, the charities’ Twitter engagement rose by 3,000 per cent and Facebook engagement by 1,700 per cent. “The expertise the team brought to our Coronavirus Campaign helped us raise our social media game to another level” Valerie continued. “Their jargon-free creativity gave us the confidence to take the plunge with an overt and proactive social media campaign, which we can now build on in the future.” Our self-employment income support scheme (SEISS) calculator tool was made available on our website, to many organisations with a large self-employed staff base and across social media channels. In its first week, the calculator was used 2,000 times – and was used 13,000 times by the end of June 2020. Adapting to change As well as specific campaign advice, the pandemic offered an opportunity for a different kind of support. “It goes well beyond the invaluable financial, volunteering and pro-bono help we receive. Deloitte’s people are really part of our team, offering insight, support and inspiration on everything from events to service delivery” said Valerie. This team spirit came to the fore when the charities needed help to investigate the feasibility of a home-based contact centre solution so helplines could stay open, as well as the provision of additional tech such as headsets and laptops to deal with extra call volumes. “These measures meant we could help out by implementing the Salesforce system to manage cases, and assist with a home contact centre, which helped the charities transition to home working at a time their advice was really needed” said Matt. The charities led a volunteer recruitment drive, providing online training and a system to ensure new volunteers had the appropriate knowledge to advise people. “We have always felt that Deloitte is on our side, willing us on to help as many vulnerable people as possible” Valerie concluded. The tax education gap While the pandemic provided an opportunity for some focused work collaborating with charities, using our expertise to educate communities on tax is something we do all year round. With so much public attention on the complexity of the UK tax system, last year, Deloitte measured the ‘tax education gap’. Working with YouGov, Deloitte carried out a survey in September 2019, to gauge knowledge across the UK. Over 2,000 adults took part, the average person’s score was 10.6 out of a possible 30, and nearly half of all respondents scored 10 or less, showing a clear lack of personal tax knowledge. The results also showed a clear interaction between understanding and perceptions of fairness, and Deloitte’s head of tax policy Daniel Lyons, concluded that education could be a key factor in creating an environment where citizens are (broadly) satisfied with how much tax they pay and why. The research encouraged policymakers to consider how tax education could be developed for the British public. Since the survey was conducted, Deloitte has met with HMRC, ICAEW, the Low Income Tax Reform Group, the Institute for Government and the universities of Birmingham and Bournemouth to develop thinking and ideas on filling the tax education gap.
Ted Baker: a platform for future growth
Earlier this year, and against the background of the effect of COVID-19, the new executive team at Ted Baker, the listed global British lifestyle brand, laid down a transformation programme - known by the company as ‘Ted’s Growth Formula’ - designed to return Ted Baker to profitable growth. Before they could do this, the executive team needed to stabilise and enhance the business’ capital and funding base, engaging teams from across Deloitte to help create this platform for future growth. Supporting Ted Baker’s lenders Having helped the group to refinance its borrowing facilities in September 2019, teams from Debt Advisory and Restructuring Services supported the new executive team in securing further bank support by way of additional headroom and extended facilities. This support was important in order to stabilise the group’s financial position, including the disposal of the group’s head office building in London. The proceeds of that sale were used to reduce the lending facilities and significantly de-lever the group. “In a fast-moving situation, it was critical to support the executive team in their dialogue and information sharing with the lending syndicate” said Debt Advisory partner Nick Soper. “Ultimately, Ted Baker was able to demonstrate a robust core business proposition and acted quickly and decisively to raise material new liquidity.” An issue with inventory In early December 2019, Ted Baker made a stock exchange announcement that it had identified that the inventory in the group balance sheet had been overstated, impacting on prior results. It engaged a forensic accounting team from Deloitte to undertake an independent investigation. Following the completion of the investigation, the FY2019 inventory was restated to recognise a c£20m reduction in value to c£206m, with a further c£32m reduction in inventory recognised as a non-underlying expense in the FY2020 results. “As in any listed company accounting investigation, there are many moving parts, with the timeframe to assess the financial value of any required adjustment being of key importance given the business’ obligation to keep the market updated” explained Amber Andrade, Forensic director. “Other important aspects to our work included the preservation of relevant information and material such as email data, and explaining our work to lenders, other advisers to the group and the group’s auditors.” A team from Deloitte’s Audit & Assurance practice was also engaged by the group to support management with a review of the group’s controls over inventory and other areas. Simon Oaten, Audit & Assurance partner who led the review, commented: “Our recommendations covered a range of areas, from greater segregation of duties, an assessment of general IT controls, through to training programmes across the group’s finance team and we are supporting management with their ongoing design and implementation.” “Deloitte worked swiftly, under tight deadlines, were personable and helped me and the team enormously given the complexity and interplay of the issues we were working to resolve.”
Dads don’t babysit, they parent
“Helping dads to redefine their role is key to creating equality for everyone” – just one of the messages millennial-dad expert and DaddiLife founder Han-Son Lee has for employers. To help us understand and contribute to the generational shift in how today’s dads view work and home we partnered with DaddiLife on its eye-opening research, The Millennial Dad at Work. Its depiction of a new wave of dads, demanding more flexibility at work so their families can rewrite the rules at home, influenced the change we made to double paternity leave for non-birthing parents last year, from two weeks to four. Over the last year, this insight about what’s important to dads is encouraging other companies to make changes too. The shifting role of dad 1. Generational norms and gender-role stereotypes are on the way out 87 per cent of dads surveyed said they are either mostly or fully involved in day-to-day parenting duties – and 68 per cent of dads who work full-time, who are fully involved in parenting, also have a partner who works full time. 2. There is further to go in shifting employers’ understanding Just over half of the dads surveyed believe they are treated equally to mums with regard to flexibility at work – but two-thirds think employers recognise the need for dads to be more actively involved at home. 3. Dads who aren’t able to balance work and family life are voting with their feet One third of dads surveyed said they had changed jobs since becoming a father - with 39 per cent of these dads pinpointing ‘flexibility to fulfil parental responsibilities’ as a reason. Another third said they were ‘actively looking’. Source: The Millennial Dad at Work, 2019 Balancing home with work Han-Son Lee founded DaddiLife to offer help and advice to new dads like him. After researching the changing roles of millennial dads at home, he turned his attention to exploring how this new generation of dads are balancing these demands with work and reached out to Deloitte as a result of its reputation as a family friendly employer. “We worked closely with DaddiLife on its UK focused research about millennial dads’ attitudes to work to develop it from the start” said Deloitte’s global inclusion leader Emma Codd “and were keen to see whether the findings reflected the changes we’ve seen among our own people, with family duties shared more equally than in the past.” The collaboration brought together our continued commitment to agile working and DaddiLife’s expertise in a fairly new area of family policy. “Enabling all of our people to balance their work and home lives is a huge priority for us” continued Emma. “Collaborating on research like this is one way to keep shaping a culture and work policies and that meet the evolving needs of our people.” A generational shift The research clearly reflected a generational shift in which dads are re-defining their roles. “Despite many employer policies reflecting more old-fashioned views of family life”, said Han-Son, “many dads are challenging outdated stereotypes, for example, of taking on only narrow parental duties or being ‘lazy’ at home." “The aim was to reflect the lives of thousands of dads from the Daddilife community.” “The response has blown me away – it’s reached over five million people, bringing this important conversation to the forefront in the media and many workplaces, which has helped to create momentum for change.” “Last year, more organisations introduced equal parenting leave than in the previous two years combined. We hope even more will follow suit.” “We’ve shown that employers must make meaningful change in key areas like paternity leave and flexible working if they are to retain a generation of new dads. Ultimately, we think unlocking this change holds the key to creating genuine gender equality”. Flexible working to fit our busy lives For six years our people have benefitted from flexible working arrangements, because we know there’s a direct link between happy, engaged colleagues and good performance. Agile working is about where, when and how we work. Requests can be informal or formal and cover things like working reduced or flexible hours Some of our people have formal ‘annualised days’ contacts that give them extra days off, while others take a Time Out - our award‑winning programme that allows people to take a four‑week block of unpaid leave each year.
An alternative Qweens’ Speech celebrating all legions of diversity
It’s 2019. Northern Ireland has just legalised same-sex marriage and non-binary pronoun ‘They’ is Merriam Webster’s word of the year. Yet being gay is still illegal in over 70 countries and 39% of British LGBTQ youth seriously considered attempting suicide in the past twelve months. When it comes to equality for the LGBTQ+ community, there’s still a long way to go. With the optimism of a new year on the horizon, Deloitte Digital’s creative agency ACNE was commissioned to make a film to give a voice to those who are often marginalised, excluded, or even facing persecution because of their sexuality or gender. “Long Live our Qweens” Adam Springfeldt, executive creative director, of ACNE explained: “Since 1952, the Queen has been addressing the nation in her annual Christmas message. “In 2019, our alternative message celebrated the LGBTQ+ community, highlighting the urgent message that the UK needed to hear – that of queer liberation, the fight for LGBTQ+ rights and solidarity with people of all sexualities and identities.” As no one ‘Qween’ could ever speak for such a diverse group, the team cast some of Britain's leading LGBTQ+ creatives, musicians, designers and activists to play a part in the end of year message. The cast were active and visible representatives of the LGBTQ+ community known for sharing progressive views publicly, including non-binary Grammy-winner Sam Smith, trans activist and model Munroe Bergdorf and UK Black Pride Founder Lady Phyll. The creative process was an inclusive one, with the cast contributing to the scriptwriting process to make sure content was authentic and resonated with their communities and allies, as well as a mainstream audience. In the message, each ‘Qween’ shared their highs and lows of 2019, as well as their hopes for 2020. “Let 2020 be the year of the United Qweendom” Directed by duo Zhang + Knight, the film was premiered exclusively by style magazine Dazed on 23rd December. After this premiere and a successful teaser campaign launched on the social media channels of the eight ‘Qweens’, the film sparked a conversation about inclusivity, identity and what it means to be LGBTQ+ in Britain today. Zhang + Knight, said: “When ACNE came to us with this idea for a project we both knew instantly that we had to do it. As gay directors we rarely get to see queer pieces of work as meaningful and carefully considered as ‘Qweens' Speech’. It was such a pleasure to bring this script to life.” “Our intention was not just to create a film for the community itself, but to reach audiences outside of and beyond this community; changing perceptions and setting the agenda for mainstream conversations about LGBTQ+ socio-political issues through the medium of a visually stunning film and a poignant script” added Jack Howard, head of content at ACNE. Positive change The film was covered by national print and online media and received an overwhelmingly positive response on social media. In June it was also awarded ‘best film for positive change’ at the revered Creative Circle UK awards “Diversity should be celebrated in all forms but the fact remains that there is still more to do to support LGBTQ+ rights in our homes, our communities and society as a whole,” ACNE’s Adam added. “Collaborating with this talented group of artists created a film through which we inspired more people to share this message during the Christmas period - a time of hope, love and goodwill – and encourage people to lay a path for further inclusivity in 2020.” Pride at Deloitte – all year round Pride isn’t just a once-a-year celebration at our firm, it’s part of our culture. We want everyone at Deloitte to feel able to be themselves at work - to have a voice, be respected, and achieve, regardless of ethnicity, gender identity, sexuality or any other characteristic. We are proud that Deloitte Global received the top score in the Workplace Pride Global Benchmark 2019, which is a measure that evaluates initiatives supporting the LGBTQ+ community in the workplace. Our LGBTQ+ network Globe makes an ongoing contribution to our firm, alongside Wave, which is an LGBTQ+ network for more junior staff, established with some of our biggest clients
Digital identity: proving it’s you
We’re all familiar with the frustrations of juggling online passwords and usernames, filling in forms and finding paper documents to prove our identity. As more of our transactions take place digitally, who would say no to a simpler and safer online life? Through our collaboration with Onfido and Evernym, we’ve designed a new, digital and hassle-free way to verify identity. Like a passport, it’s re-usable and owned by the individual. Unlike a passport, it’s digital and can be kept on our smartphones. In 2020, successful trials of this digital identity enabled customers to use and re-use it securely to verify their identity with banks and other organisations. A collaborative effort “Developing this product and associated ecosystem was a collaborative effort - which can help improve customer experience and protection and solve institution’s onboarding challenges” said lead partner on the project Derek Ryan. Each collaborator has contributed a vital part of the solution, delivering an innovative product that none could have created alone. Onfido’s digital verifications, based on biometric data from a person’s government-issued ID and a selfie, are already used by fintech start-ups in the UK. Working together, we’ve taken this method one step further, using it to create a digital identity that can be re-used by the consumer time and time again. Stored in a ‘wallet’ app provided by Evernym, this identity can be stored and managed by consumers in the form of digital credentials. The app is underpinned by Evernym’s digital credentials platform called Verity, which can be used by organisations to issue and verify digital versions of paper documents, for example, when opening a bank account, proving age or sharing qualifications to gain employment. Our specific contribution was a new product called Optic. Adding an extra layer of security, Optic enables financial institutions to conduct Know Your Customer (KYC) checks using the digital identity in a similar way they would physical ID documents - but instead using an automated and digital method. Regulatory expertise With a smooth experience becoming more and more important to customers, financial institutions have been looking for ways to simplify their application processes while still complying with strict regulations. Bringing together expertise from our Financial Advisory and Consulting teams, our aim was to make sure Optic would enable financial institutions to meet these obligations. This meant applying the knowledge we share with financial institutions when advising them in areas like KYC and anti-money laundering – to arrive at a cost-effective solution banks can use with confidence. Through the trial, customers successfully opened financial products using their digital identity, with more than half re-using it to open further live products. Benefits - for consumers, institutions, businesses and society “Our collaboration with Evernym, Onfido and other industry participants has showed how this portable digital identity can be used securely in the real world,” continues Ryan. “It provides an opportunity to build an open and flexible solution that gives banking customers control of their personal information, improving their experience and protection while enabling institutions to provide digital financial services in a compliant, safe and secure way”. Potential business benefits include opportunities to build systems that can, for example, solve companies’ recruitment challenges and support new business models while building trust in the digital era. In addition, through enhanced and more secure service provision: Customers have a vastly-improved experience - and the ability to store the digital identity on their phones means people are in control of their own data and who accesses it.Banks can check that the digital identity has been verified by a credential provider they trust and has not been tampered with - with a secure solution that’s cheaper than current methods.It provides our clients with the ability to understand who their customers are and, through ongoing monitor of customer behaviour, is able to detect potentially suspicious activities.Now the system has been tested successfully in financial services, we’re looking forward to seeing where we can take it next. The customer is in control The digital identifier works in three stages. The credential provider Onfido, verifies biometric data from the customer and issues a digital version of their identity.The customer holds the digital identity on their smartphone and can choose to share this with banks when applying for or accessing accounts.Financial institutions request the customer’s digital identity and will receive it only if the request is approved – Optic enables the institution to make background checks, verifying identity quickly and easily.
The £1.25 COVID-19 antibody test
Weeks before the World Health Organisation declared COVID-19 a global pandemic, British diagnostic technologies experts Mologic were already working on an antibody test that they hoped would form part of the global solution for tackling the virus. Developing a low cost Rapid Diagnostic Test (RDT) that could detect COVID-19 antibodies in ten minutes Mologic began looking for a fast way to mass produce it for global markets. When we heard of the opportunity to support the 70-strong Bedford-based company in its work to bring this test to market quickly, we knew it was a project that could really make a difference. A leading developer Mologic’s co-founder and Chief Scientific Officer, Paul Davis, was the originator of the Clearblue pregnancy test - the first commercial product to use lateral flow technology (the same technology used in the COVID-19 RDT) – when it launched in 1988. “As a leading developer of this technology, and with the backing of the Gates Foundation, Mologic was in a strong position to bring a reliable test to market quickly, in Africa and other markets, where health care systems could easily be overwhelmed by outbreaks,” said Consulting partner Colin Terry. At a time when coming together to make an impact was more important than ever, we were keen to offer support where we could as part of our commitment to support the COVID-19 response. It was clear that by combining Mologic’s scientific and responsive manufacturing expertise with our skills in operations transformation, manufacturing and supply chain, we could collaborate to get the RDT from development to market quickly. “Just as important as Mologic’s impressive credentials was its proposal to develop a test at a very low cost” Colin continued. This would enable the test to be used in less-developed countries, especially in parts of Africa, where Mologic has a longstanding partnership with the Institut Pasteur de Dakar on outbreak-prone epidemics such as Ebola, measles, dengue and yellow fever. “We quickly got started on a programme of support, working side by side with Mologic, taking shared ownership of the challenge.” Working side by side Through an intensive four-week sprint and four further weeks of project support, we brought expertise in supply chain, procurement and corporate finance to address the various challenges. The most pressing issues were how to secure the raw materials, manufacturing capacity and distribution network to get the test to those who needed it. People from across our firm worked together, helping to connect Mologic with potential delivery partners – life sciences companies, investors, manufacturers and non-governmental organisations that would all be vital to a successful supply chain. An agile model to tackle challenges "Operating in a highly-changeable environment presented a number of challenges,” said Colin. “The lockdown meant that manufacturing capacity and access to reagents and raw materials was scarce. And as the epicentre of the pandemic shifted, the markets that could most benefit from the test shifted with it.” Bringing in different types of expertise at different times, we created a robust expansion plan for the test and helped Mologic build a business case to secure funding. The impact As a result the company was able to develop a sourcing and manufacturing plan to produce a COVID-19 triple antibody test, at a price ceiling of £1.25. Central to this achievement was the support we gave to help Mologic submit its request for CE mark (which indicates that it meets health, safety, and environmental protection standards for products sold within the European Economic Area) a month earlier than anticipated. Similarly, the investment we helped the company secure meant it could increase production of its test, partnering with organisations to create a robust supply chain. Production was launched at scale in July 2020 when the first shipment of 100,000 tests was sent to Senegal. Enabling testing in the developing world Building on this success, Mologic has established an independent manufacturing facility, Global Access Diagnostics, which is developing the tests for no commercial return and on track to manufacture up to 40 million devices per year, with a target price of £1. Work to register the test for global distribution has been undertaken with the Liverpool School of Tropical Medicine (LSTM) and St George’s, University of London and the Institut Pasteur de Dakar. And the regulatory dossier for the test (which includes all the technical data gathered about it) is now being considered by the World Health Organisation for emergency use. “The greatest benefit of this product will be felt in the developing world where it will enable nations with less access to health systems to test their citizens,” said Colin “and we’re proud to have been able to play our part.” “The rapid and responsive engagement of Deloitte helped us boost our operational team at a time of great need. We look forward to working with the Life Sciences team again.”
Supporting The Trussell Trust on the frontline during COVID-19
One of the UK’s biggest food bank organisations, The Trussell Trust supports a network of 1,200 food banks across the country that provide emergency food parcels and support to families who can’t afford essentials. In March 2020, as millions felt the impact of COVID-19 on their incomes, demand for food banks’ services increased - and the need to comply with social distancing requirements added extra complications for those providing food to people in need. Making an impact in society Late one Sunday evening, at the start of the COVID-19 pandemic we emailed The Trussell Trust to ask, “How can we help?” We’d seen the headlines about the explosion in demand for food bank services and wanted to offer our support. Our email arrived just as the enormity of the challenge facing The Trussell Trust was beginning to hit - and we were the first corporate to reach out. To keep operating through lockdown, it was vital for The Trussell Trust to adapt its delivery model in a short space of time. Keen to help, we provided a range of support including secondees, volunteers and a cash donation to support its work. Providing leadership support during COVID-19 The Trust needed help to support the development of leadership skills that would be needed to lead strategic change. So Deloitte consultant Alan Velecky offered his expertise in leadership, development and coaching on a pro bono basis. As the main links between The Trussell Trust and its food banks, area managers played a crucial role in implementing the changes needed to respond effectively to COVID-19, working alongside food banks’ project managers. “To help, I ran coaching sessions with each of the 22 area managers” explained Alan, “giving each person the space to reflect on how they had coped so far, and think about changes they’d like to make in the future.” Following this, Alan ran a group virtual workshop with all of the area managers and asked for their views on specific aspects of the food bank operation. This enabled him to build a picture of the operation overall - how it worked, the different roles played by area managers and the challenges they face – and make recommendations about possible improvements. “One of my recommendations was to reset the relationship between area managers and project managers” said Alan. “Rather than the area managers being someone the project managers call when there is a problem, they become a trusted advisor, coaching to develop their skills.” Now, The Trussell Trust is using Alan’s findings and recommendations to redefine the area manager role - supporting the food banks to become more effective in addressing the underlying issues that drive people to need their help. Lending a hand Deloitte managers Hannah Ledwold and Sam Morley supported the Brent food bank in north London for three months, to help it manage increased demand and implement a new operational model, based on delivery. Food banks rely heavily on volunteers, many of whom are from older generations. As lockdown began and many older people were advised to shield, large numbers of The Trussell Trust’s regular volunteer force were unable to support its work as normal. “Supporting Claudia, one of the bank’s project managers, I got involved in all of the day-to-day activities of the food bank” said Sam. As with other food banks in the network, social-distancing rules meant that the bank could no longer serve its clients indoors - so they had to move to an outdoor service twice a week and take on a new delivery model. “Because The Trust was unable to invite people in” explained Sam “my work included serving the public, co-ordinating volunteers and managing deliveries and its drivers.” “I managed the volunteer schedule and worked with British Gas drivers who had volunteered to help – and I did a few deliveries myself.” An efficient service To improve efficiency, Sam also put his Excel skills into action. “There were multiple spreadsheets being used to track and monitor the people who’d been referred to the food banks and when deliveries had to be made.” “I consolidated the data they were working with to better manage the delivery process and avoid duplicate deliveries.” “This meant that the food banks could get food to the families much quicker, cope with the increased demand and monitor the volume of deliveries they were completing, so that they could ensure that they had sufficient stock and volunteers to create the food parcels.” Since Sam’s secondment in Brent ended, he continues to support the food banks remotely. His ongoing work helping Claudia and the team analyse data on how many people are using the food banks is helping them to manage their resources and will form a vital part of future funding applications.
Supporting women’s careers
Since blazing a trail by launching the first Return to Work initiative within professional services in the UK in 2015, we continue to offer a way into the firm for those re-starting their career after an extended break. Open to anyone who has taken an extended career break, typically of two years or more, our Return to Work initiatives give successful applicants the support they need to refresh their skills and boost their confidence. They include training in areas like IT and personal development and invaluable peer support via our returner network. In 2019, for those wanting to do something completely different, we opened applications for our first Return to Work Digital Retraining programme. Designed to help address the digital skills gap, the programme was open to all - but designed with women in mind. A valuable pool of talent “Across the technology industry, women are vastly underrepresented, meaning businesses, and the economy as a whole, are missing out on a hugely valuable pool of potential talent,” said Dimple Agarwal, managing partner for People & Purpose. To help, we invited aspiring returners with no experience, training or degree in software development or engineering to apply to join the programme and become part of a new generation of tech talent. With the opportunity to complete a 12-month Software Developer Apprenticeship, achieve a Software Developer Level Four qualification and secure a permanent job with us, 800 applicants – 64 per cent of whom were women – applied for a place. A fresh start One of the successful candidates for our apprenticeship was Leigh Leal. Leigh, 40, was on a four-year career break following a spinal injury, and was looking for a fresh start in her life and career but was worried how a potential employer would judge the gaps in her CV. Leigh’s varied career to date includes roles with the immigration services both in her birthplace of Trinidad and in London. Advised by her manager in Trinidad that she would need a degree to progress, she became the first in her family to attend university, studying criminology and psychology at the University of Greenwich. After suffering a spinal injury in 2014, which made Leigh realise life was too short not to follow her creative passion – she makes carnival costumes in her spare time – she moved to Canada for 18 months and studied art. When she returned to the UK in May 2019, she came across various return to work programmes while looking for jobs. Leigh told us: “I was disappointed to find that most retraining programmes and apprenticeships had no employment guarantees, then discovered Deloitte’s retraining programme through a women’s technology network. I was hesitant to apply as I felt I didn’t fit the professional services mould but I made that leap of faith!" “I can already see my future with Deloitte. I’ve received an overwhelming amount of support, the people I work with are from different backgrounds and everyone has a unique story to tell." "I love that this programme employs both sides of my brain; problem solving, which brings out my creative side, and coding, which bring out my investigative side. I am excited for my future.” Supporting people after a career break We know carer breaks come in all shapes and sizes from multi-generational caring responsibilities to taking time out to travel or study. A critical part of our work is to build an inclusive culture and an important element is to develop our female talent pipeline across the firm. We accept applications all year round for our returner supported hiring opportunities which means that individuals can join on a permanent basis at any time, while also getting the support they need. Gender Balance Our return to work supported hiring approach is just one of the interventions we’ve introduced to support our focus on achieving gender parity. Other initiatives introduced over the last 12 months have included doubling our paid paternity leave offering, redesigning our promotion processes for senior grades and ensuring all our recruitment and reward processes are bias free. We want to incorporate a healthy diversity of views in our dialogue around gender issues, and challenge our thinking which is why we’ve also refreshed our 2,000 member-strong Gender Balance Network (formerly our Women’s Network) - making it open to everyone who wants to be an ally in supporting gender balance.
Riding shotgun on the Women’s Tour of Scotland
In August 2019, 16 teams were ready to do battle across the three-day, three-stage event, racing from Dundee’s iconic waterfront area across 350km, through five cities and scores of towns and villages, to Holyrood Park in Edinburgh. With a strong legacy in bringing large-scale sporting events to a global audience, the Tour supported Scotland’s drive to become one of Europe’s top cycling nations. A successful Tour would grow popularity for cycling in Scotland and the number of people choosing to hop on their bike as a leisure activity and for their daily commute. Working together with the event organisers, we were asked to support the Tour’s long-term vision of becoming the most digitally connected cycling event in the world, reaching a new audience of fans, enthusiasts and cycling beginners. This girl can The 2019 race marked the first time a women’s Tour has been brought before a men’s. Another first was a prize fund equivalent to the men’s race from day one. “Many cyclists are household names, but only a few female cyclists have this level of recognition,” said Gareth Edwards, principal at Deloitte Digital Scotland. “We felt strongly that creating a more digitally-connected Tour would give spectators a better understanding of the strength of the female athletes by showing the speeds they were hitting and how much power riders were using to push the pedals while navigating Scotland’s highest roads.” “This race was a tremendous opportunity to test new ideas and technologies,” Gareth continues, “as a live ‘laboratory’ which would allow fans to give instant feedback in real-time.” “For example by allowing fans to track their favourite teams or riders success along the route, it could create the feeling that they were riding alongside the competitors. And, in turn, encourage more people to give cycling a go for themselves to experience the same exhilaration.” 360 live stream action “For any live sporting event to be successful, fans must feel close to the action and emotionally invested,” said Gareth. “By attaching a 360-degree live stream camera to the back of the lead race vehicle, spectators could access a live stream of the race online and choose the perspective they wanted to view the race from - allowing them to feel like they were riding alongside the pros, in real-time”. ”Fans were also able to track the twists and turns the best young rider of the Tour was navigating, using GPS.” Attracting new spectators “The strength of the athletes set-against the backdrop of Scotland’s landscape made the Tour a spectacular, if somewhat damp, event for fans watching from the sidelines,” said James McCallum, former Scottish professional cyclist and assistant race director at Women's Tour of Scotland. “To attract new spectators, we felt passionately that we had to make the course easy to track in real-time for more people to enjoy the Tour for themselves, particularly as the heavy downpours were preventing many from watching in-person!” Part of the crowd Not only did we want viewers to be immersed in the race, but to feel the atmosphere… “Using a combination of action cameras attached to the front of the race vehicle, we developed an AI algorithm to count the number of fans present along the route,” Gareth added. “For the organisers, demonstrating the engagement of the event was vital to secure vital funding for future Tours and allow informed planning as its popularity grew.” It wasn’t an easy ride in all cases, with heavy rainfall throughout the Tour, organisers were forced to cancel the opening stage due to extreme weather conditions. A race to the finish In the race for the winner’s jersey however, the technology held up, allowing fans on the sidelines and online to experience the same spectacular sprint finish. “The technology demonstrated that using just a small number of devices can make a huge difference in making an event more accessible and inspiring for fans” said James. “The weather certainly impacted the race for fans, but with access to live streams from within the race, live tracking of the riders as well as the pioneering crowd counting analysis we have definitely shown that technology can enhance the sport for fans, for the participants and for race sponsors - without whom none of this could happen.”
Derwent London’s ground-breaking green Revolving Credit Facility
Derwent London plc has become the first UK Real Estate Investment Trust (REIT) to sign a green revolving credit facility (“RCF”) – a type of finance ring-fenced funding to be used specifically for green projects that have a positive environmental impact. Collaborating with our sustainable finance team, Derwent established the requirements for this £300 million facility, which is now supporting their brand of environmentally-friendly new developments and major refurbishments in the capital. Improving on good practice Derwent London is the only UK REIT to have been included in the Global 100 Most Sustainable Companies in 2017 and 2018 and maintains its ‘Green Star’ status rating under the Global Real Estate Sustainability Benchmark. In pursuit of its objective to design and deliver buildings responsibly, Derwent approached our sustainable finance team for help boosting its already sector-leading sustainability credentials. The company’s aim was to obtain funding that would directly like to their projects’ strong green credentials, and which complies with the Loan Market Association’s (LMA) Green Loan Principles. Deloitte partner Katherine Lampen said “Derwent’s ambition to expand green building development and link this strategy to its financing methods matches our own priorities - to support clients on their low carbon transition, and to secure green financing.” “In Derwent’s case” said sustainable finance team lead Tasha Clarbour "this includes obtaining green finance to improve energy efficiency, reduce carbon emissions and reduce consumption of natural resources by their buildings.” This aligns with the Government’s 2019 Green Finance Strategy, which includes a commitment to at least halve new buildings’ energy use by 2030. “Collaborating with Derwent on this ground-breaking project, to secure access to ring-fenced green financing that would deliver a positive environmental impact from the development of commercial and residential buildings, was an exciting prospect” said Susie Douty, sustainable finance team manager. “We were determined to do everything we could to help the team take this important step on its green journey.” The Green Finance Framework Central to agreeing the Green RCF was the establishment of a Green Finance Framework (the “Framework”). The Framework sets out the criteria which allows Derwent to classify the debt as green finance, and the reporting requirements for the financed projects that will deliver environmental benefits, like the development or refurbishment of commercial and residential buildings that meet internationally-recognised green building standards. Our team of qualified chartered accountants and sustainable finance professionals brought a wide range of finance and sustainability skills – the right mix to secure this industry milestone. Working side by side with Derwent, the team helped align the Framework to the voluntary Green Loan Principles set by the Loan Market Association (LMA), the authoritative voice in EMEA for green finance. “This enabled Derwent to both align with industry leading green finance principles, and environmental property standards” continued Susie “in a way that was transparent about both the targeted and achieved environmental impacts”. “The development of this new approach clearly shows the significant role finance can have in helping our business towards its ambition of being net zero carbon by 2030.” Strategy in action The result was success for Derwent London’s green financing. The company negotiated a £300 million ‘green tranche’ to be spent specifically on green development and major refurbishment projects, as part of their larger five-year £450 million revolving credit facility. Through the extensive measures taken by Derwent in securing this green facility, the company now has in place the essential structures needed to continue to raise more green financing in the future. “Working on this project, our hopes as a team were to help to set industry standards for a robust and transparent approach to green financing and reporting” continued Tasha. “Together with Derwent, we have set a precedent within the industry that we hope more companies will adopt.” “Linking part of our financing to our projects’ green credentials is an important step towards understanding how we can help reduce our impact upon climate change.” According to the International Energy Agency, buildings consume 36 percent of the world’s energy and contribute up to 40 percent of greenhouse gas emissions. Find out more about Our Green Journey
Supporting cybersecurity innovation
As the world becomes more dependent on inter-connected digital systems, cybersecurity needs to evolve and adapt in an ever-more sophisticated environment. Recognising the importance of helping to protect businesses while raising the profile of the UK’s position internationally as a cyber leader, the London Office for Rapid Cybersecurity Advancement (LORCA) has a remit to find innovations with the greatest potential to help companies stay one step ahead of the criminals. Funded by the government, one of LORCA’s main aims is to support promising cybersecurity startups to grow solutions. Bringing our cyber expertise and knowledge of the cyber market to LORCA, we’re playing a key role in helping cybersecurity startups to position and accelerate their businesses, collaborating with investors, academics and the international cyber community. Culture, capabilities and community Together, we’re developing new cyber defences that can keep hackers at bay – collaborating with startups like CyberOwl to bring its ideas to market. According to Stephen Wray, director, Deloitte Cyber Risk Services and leader of the firm’s work with LORCA, a successful innovation centre has three vital ingredients: “The right culture, the right capabilities and the right community.” “Every six months LORCA finds 12 of the brightest startups to support,” he continues “and CyberOwl was identified in the first cohort as one of the most promising companies, responding to the market’s current security needs.” Building skills CyberOwl creates a product that detects and raises an early warning of cyber attacks. While its people had the technical know-how to create this new product, they needed to boost their commercial skills to enable their business to flourish. “We had a team of six, a good product and plenty of demand” says CyberOwl CEO, Daniel Ng “but while we had ambitious plans, we needed help refining our go-to-market strategy.” To help plug this gap, we collaborated with CyberOwl on a programme of work through which our specialists met with the team each week to help build a tailored approach, with Stephen acting as an ad-hoc chief commercial officer. Recognising the benefit of this expertise, Daniel continues “the access we've had to LORCA and Deloitte has accelerated our ability to make decisions.” “For me personally, having people with a range of different strategic backgrounds to offer a sounding board has also been a great experience.” Ambitious plans Further support included running a bespoke programme that tested the market for CyberOwl’s product while it was still at the ideas stage, combining market research with expert opinions to provide detailed feedback. We also co-wrote and co-developed a concept product that has the potential to bring in revenue, and have worked with existing clients and networks to open up potential opportunities. Catching the wave The results speak for themselves. The support we provided through LORCA has enabled CyberOwl to focus on the maritime, defence and industrial sectors – which has led to it winning contracts with organisations like the Ministry of Defence and securing £1.8 million in investment. In just a year, CyberOwl has boosted its numbers from six to 18 and has established offices in London, Birmingham, Athens and Singapore. Reflecting on CyberOwl’s success, Stephen compares working with a startup like CyberOwl to helping someone learn to surf: “There will be massive waves of opportunity that will come and go - and you need to be ready.” “When start-ups work with LORCA, we make sure the culture is right, with the right capability and the right people to signpost the ‘ebbs and flows’ in the market and help our innovators paddle to the wave.” Building the UK’s cybersecurity profile In 2018, alongside Plexal and the Centre for Secure Information Technologies (CSIT), Deloitte launched LORCA for the UK government. Twelve months ahead of schedule, LORCA has helped 72 participating startups raise more than £150 million of investment and is building the foundations for a global cyber innovation hub in London. Businesses that have gone through the accelerator service over the last two years are set to create 800 jobs by 2022. “We bring together investors, academics and the international community to make it easier and quicker for start-ups to succeed.”
Support, solidarity and sleeping out
Sometimes when you meet someone, they inspire you to act. I first met Josh Littlejohn, founder of the incredible global campaign to end homeless in September and heard his story of setting up a cafe called Social Bite in Edinburgh with his friend Alice Thompson. They donated all of their profits to social causes and offered jobs and free food to people affected by homelessness. From modest beginnings, Social Bite now has a chain of social enterprise shops in Scotland and a Social Bite Village that provides shelter and support for homeless people. Josh and Alice advise the Scottish Government on housing policies and their first ‘sleep out’ with 300 people in Edinburgh’s Princes Street Gardens is now a global movement. I was blown away by Josh’s absolute determination and passion that saw him turn one small cafe into a worldwide campaign to end homelessness. He inspired me to get involved. So I signed up then and there to take part in the World’s Big Sleep Out along with 96 other Deloitte staff and their partners – spending the night sleeping in Trafalgar Square, in the middle of December. In true British style, the weather was pretty awful with freezing winds and lashings of rain to keep us company all night. We emerged from our sleeping bags around 5am and my legs were so stiff from the weather they felt like someone had ironed them. The stark reality is, whilst we headed home for a hot shower to warm up, there are many people who do this every single night. They have nowhere to get warm, nothing to eat and no shelter from the elements. Together, 97 Deloitte people slept out in cities across the UK to raise money to help end homelessness, raising over £130,000. Social Bite Josh Littlejohn and Alice Thompson set up a café called Social Bite in Edinburgh where profits are donated to social causes and jobs are offered to people affected by homelessness. Social Bite now has a chain of social enterprise shops in Scotland, Josh and Alice advise the Scottish government on housing policies and their first ‘sleep out’ with 300 people in Edinburgh is now a global movement raising millions. One Million Futures The World’s Big Sleep Out and our support of Social Bite are just some of the programmes, charities, social enterprises and schools supported by Deloitte UK’s social impact goal to support One Million Futures. In 2020 we achieved this ambition and now aim to help an additional 5 Million Futures across North and South Europe by 2030.
Working towards net zero emissions by 2030
WorldClimate is our Global Climate and Sustainability Strategy. We are committed to achieving net zero emissions by 2030 by setting ambitious carbon reduction targets, ensuring we have consistent, sustainable internal policies and encouraging our people to take action. Society is increasingly demanding that business plays a greater role in addressing global challenges. Through our work, Deloitte has the power to tackle issues such as climate change and sustainability. Our purpose – to make an impact that matters – is at the heart of our firm’s ambition. It guides our decision-making and, during the COVID-19 pandemic, our purpose and values have never been more important. The climate emergency isn’t a challenge that anyone can solve alone. We must work with our clients, alliance partners, suppliers and other stakeholders to achieve the change that’s needed. Responding to the climate emergency The worst impacts of climate change will have a profoundly destabilising effect on business and society. We can still choose a future without this disruption – but it depends on every business taking steps to reduce their carbon emissions. As a global employer, we want to take a leading role in achieving the aspiration set out in the Paris Agreement – to keep the world within a 1.5oC temperature increase. WorldClimate is our Global Climate and Sustainability Strategy. We are committed to achieving net zero emissions by 2030 by setting ambitious carbon reduction targets and ensuring we have consistent internal policies. WorldClimate is also about encouraging our people to take action themselves and extending our impact beyond Deloitte. We will: Minimise carbon emissions from our real estate, business travel and supply chain, and offset our residual emissionsDrive change through our products and services by working with our clients to embed responsible climate practices in some of the largest companies in the worldUse our networks and make the most of our relationships and the trust companies and governments place in us, to accelerate the transformation of entire industries Our journey towards net zero In many of our geographies, our sustainability journey began more than a decade ago. Some of the buildings we occupy are leading examples of sustainable real estate and this year our operations and business travel will be carbon neutral. Our net zero ambition will build on these successes by increasing the scope, scale and impact of our carbon reduction and offsetting programmes. By 2030, or earlier, we will: source 100 per cent renewable electricity for our buildingsconvert our car fleet to 100 per cent plug-in hybrid and electric vehiclesreduce business travel emissions by 50 per cent per FTEensure that more than 67 per cent of suppliers (by emissions) have set their own 1.5oC aligned carbon reduction targetsoffset all residual operational and value chain emissions through high-quality schemesSuccess will require every one of us – personally and collectively – to play our part and by doing so, we will reduce our emissions by 50 per cent per FTE by 2030. This will provide a strong foundation from which we can engage and support the industries we serve, as we all respond to the climate emergency. For FY20 our UK and North and South Europe (NSE) carbon offset strategy was to invest in purposeful offsets that support: climate justice projects helping communities most at risk from climate changejust transition projects helping fossil fuel dependent communities transition to new economic modelsfuture financing projects that invest in nature-based carbon removals, such as reforestation.The projects we selected included helping families switch from kerosene to off-grid solar to reduce fossil fuel use, the creation and maintenance of boreholes across East Africa which reduce the need to burn wood to purify unclean water and funding tree planning initiatives in Kenya and Uganda.
A helping hand for the NHS
In March 2020, millions took to the streets to clap for carers in a moving demonstration of national appreciation for the NHS. It’s the same sense of solidarity that drives the work of volunteering change agency and charity Helpforce. Volunteers have long played a key role in supporting the NHS. Recognising the potential to go further, Helpforce has a vision of the NHS as a place where more people can play a helping role, supporting patients and freeing up time for staff to spend on clinical care. Making an impact for the NHS “Working alongside Helpforce since 2018, we provide a pro-bono advisory service for its mission - to accelerate the growth and impact of volunteering in the NHS,” said Deloitte’s UK head of healthcare Sara Siegel. Working with NHS trusts, it co-develops new volunteering roles that are proven to make a difference to clinicians and patients, helping the trusts to understand the value volunteers can offer. Recognising the potential for Helpforce to play a transformative role, we pooled our skills and expertise in an ongoing collaboration that was recognised at the 2020 Management Consulting Awards, winning the Social Value category. “Working together over a prolonged period enables us to make a much bigger impact for the NHS, patients and clinicians than either organisation could make alone,” continued Sara. Building strong foundations “Deloitte has appointed a series of teams to work with us for many months at a time,” said Paddy Hanrahan, Helpforce Director of Strategy & Innovation. “This gives its people time to understand our work, and the support needed to deliver key projects.” Taken together, the projects have enabled Helpforce to expand its influence and reach and keep developing new and more effective volunteer interventions, including work to: co-design new ways in which volunteers can offer help and evaluate them through a series of pilots in hospital across Englandsecure £900k of Big Lotteryb funding - (based on our gap analysis of volunteering across the UK and how it could contribute, Helpforce secured funding to expand across Northern Ireland, Scotland and Wales)develop a framework for evaluating the impact of volunteers, enabling hospitals to make the case for funding to secure volunteer programmescreate an evidence-base for volunteering interventions in primary care. Making a difference to clinicians and patients Working in partnership with NHS Trusts, we’ve designed and tested new volunteering roles that, by making a measurable contribution to clinicians and patients, are central to its growth. For example, using our expertise in clinical and operational NHS roles, we mapped patient journeys to identify ‘pinch points’ and ways that volunteers could help relieve them. The result was a range of new tried and tested volunteer roles, such as ‘Bleep Responder’ volunteers, deployed in new hospital settings. ‘Bleep Responder’ volunteers The ‘Bleep Responder’ volunteers pilot, initially based at West Suffolk NHS Foundation Trust, tested how much time could be saved by having a pool of volunteers on standby to help with tasks that would usually be carried out by clinical staff. To avoid unnecessary delays to patient discharges, dedicated volunteers used bleepers so they could be contacted by staff from across the hospital to collect their prescriptions. When multiplied, small time savings were shown to make a big difference. A monthly average of 476 prescription-delivery trips were calculated to free up 51 hours of staff time per month. The approach has now been rolled out full time in West Suffolk and Chelsea & Westminster NHS Foundations hospital trusts. This practical work began by supporting Helpforce to expand the number of NHS hospital trusts it operated pilots in from five to 17. Building on this approach, we have continued to support Helpforce’s work to develop even more impactful interventions through its ‘Volunteer Innovators Programme’. Through this programme twelve NHS hospitals have developed volunteer interventions identified as those which could make the greatest impact on patients, staff, and services. We continue to work with Helpforce to refine and test these ideas so they can be scaled up and adopted within other NHS settings. The evaluation framework we developed has provided the basis for measurement across the programme that is so vital to quantifying its value. An NHS commitment Since we began working with Helpforce, the charity has transformed – expanding beyond England, across the UK, and further raising its profile to be recognised in the NHS long-term plan, which sets out the future direction for the NHS. NHS England has committed at £2.3 million of funding to scale Helpforce’s successful volunteering programmes across the country – part of its commitment to double the number of volunteers in the NHS over the next three years. “The value Deloitte has delivered to Helpforce in our aim to transform volunteer services to benefit NHS staff, patients and volunteers is unparalleled. "Deloitte has been by our side from the beginning supporting us to build the foundations for volunteering best practice."
Independent Assurance on BP’s low-carbon ambition
In the UK, we have one of the boldest greenhouse gas emissions targets in the world – to reach net zero by 2050. As businesses across the country work to reach that target, we’re putting our sustainability and assurance expertise to good use. We’re providing Independent Assurance on BP’s Advancing Low Carbon (ALC) programme – an initiative that’s identified an estimated 64 million tonnes of CO₂e savings or offsets since its start in 2018. Inspiring action on climate BP has been running the Advancing Low Carbon (ALC) accreditation programme for three years; this brings together a range of BP’s business activities that are cutting or mitigating carbon CO₂ emissions. “This is such a huge issue for the oil and gas industry, so it’s vital that companies help highlight activities,” explains Deloitte partner Mike Barber. The initiative encourages BP’s people – from geologists and engineers to support teams – to take part and take ownership for sharing its stories publicly. And they do. In 2017, the programme shared 33 stories from across the business. By 2019, this rose to 76. How does the accreditation programme work? As a leader in sustainability assurance, our Risk Advisory team were engaged by BP to provide Independent Assurance on BP’s ALC programme; a programme that focuses on making changes across BP, leading to a lower carbon, more sustainable future. Due to our independent assurance over this programme, BP is able to turn its ambition and enterprise into actions it can share with the world. To be recognised by the programme, activities must deliver a ‘better carbon outcome’, meet a set of specified criteria and pass our assurance checks. Only then can they be awarded BP’s Advancing Low Carbon mark. Carbon savings assured Innovation and enterprise are more powerful when they are backed by rigour and scrutiny. We assess the activities, ensuring they have been through the correct internal processes, meet specific requirements and are aligned to global methodologies, like the Greenhouse Gas Protocol (an international accounting tool for government and business leaders). Our team also checks that reported figures for carbon savings and off-sets are accurate and engages with people across BP to understand the processes, systems and controls used in measuring, recording, validating and consolidating these. Our external challenge and independence, as BP's external auditor, ensures the programme is run objectively and remains publicly accountable for its measurable achievements. Investing for tomorrow Examples of the projects we assure as part of the programme include a joint venture between BP and Chinese transportation company DiDi to provide electric vehicles with fast-charge services; BP’s investment in Birmingham energy management company Grid Edge, which uses artificial intelligence to help optimise their buildings’ energy profiles; and sustainable emissions reductions across BP’s operations. “There’s huge variety in the projects we assure,” explains Mike Barber. “All of us have a long way to go to reach the 2050 target – it is just the beginning and it will be interesting to see what organisations across the UK do next.” “We began [the ALC programme] back in 2017 as a programme to encourage BP people to deliver lower carbon initiatives. With Deloitte – who independently assure the programme – we estimate that it’s already saved or offset around 64 million tonnes of CO₂.” Supporting the oil and gas industries Providing independent assurance on BP’s efforts to reduce carbon emissions is just one of the ways we’re helping clients as we work towards a net zero future. Deloitte has worked with the not-for-profit organisation Oil and Gas UK for the past five years. We run a survey that uses 1,400 sets of data to analyse how operators and suppliers are collaborating to reduce costs and their carbon footprint and increase safety in the UK Continental Shelf. The survey helps to protect UK jobs, skills and capabilities in an industry that contributes approximately three percent of UK GDP. With a 63 percent increase in participants in 2019, it is vital to helping the UK reach the net zero target.
Supporting Regional Adoption Agency leaders to develop leadership skills
A pioneering role The shared goal for Regional Adoption Agencies is to help all children with an adoption plan to find a loving, stable home as quickly as possible. Since their introduction in 2015, we’ve worked alongside the Department for Education (DfE) to help transform the adoption system, so far bringing together 109 local adoption services into 24 regional agencies. With a remit to help some of the most vulnerable children in society, RAA leaders have a hugely-important task on their hands. And because strong leadership is a vital part of this transformation, the Government invested in developing leadership skills of RAA leaders. “No other part of the children’s services sector works in a similar regional model” said Deloitte’s Ian Waters. “The role of an RAA leader requires the ability to navigate large complex systems and work in partnership across multiple relationships – with no blueprint to follow or learn from, it is a pioneering role.” Recognising the huge pressures faced by the leaders of the first 13 agencies to keep on track, we brought them together as a group. Our shared aim was to support the leaders in their important work of tackling some of adoption’s toughest issues head on, while also helping to develop their leadership skills. A transformative experience “It’s been transformative” said Kath Drescher, service manager for Adopt South West. “A really valuable part of the work was forming a strong relationship as a group of leaders with the clear, shared aims of approving more adopters, placing children in a timely way and supporting adoptive children and families.” “I am the only person in this role across four local authorities and other leaders’ roles cover huge expanses of the country – a lot of us could have felt isolated”. Instead, the relationships that began on the programme have since gone from strength to strength. Group members support each other regularly, discussing a range of issues from advising on recruitment structures to keeping services moving through the COVID-19 pandemic. A shared vision Recognising the challenge of bringing together teams formed of people from different organisations within new agencies, part of the development focused on helping leaders to harness the diversity of experience. “The work we did to help us build a shared vision within our agencies has really helped in bringing people with different working cultures together through significant change” continued Kath Drescher. “It’s contributed to our service’s assessment as having strong and stable operational management and leadership.” Collaboration challenges An important part of the programme was bringing the group’s combined expertise to bear on some of adoption’s toughest challenges, applying problem-solving methodologies to help tackle them. “One specific challenge we tackled was thinking through the best ways to engage with our health partners” said Sarah Johal, head of One Adoption West Yorkshire, “to explain how children with early trauma placed for adoption experience the world.” “By doing this we are changing hearts and minds and helping partners to see this group of adopted children as one we need to wrap services around.” “The leadership work has helped us to develop this case. As a result, there is growing recognition of this at a national level. And we have received local funding to implement a multi-disciplinary team with health professionals included for the next three years.” Strong leadership – with far reaching effects Forging a cohesive group through leadership development and tackling shared, real-word challenges has had far-reaching effects. “It is enabling the group to influence adoption policy and practice in a way that wouldn’t have been possible when the system was more fragmented” said Ian. This became evident when the group came together to support vital steps to keep the adoption system moving during the pandemic. The group of leaders’ work with Government during this time provided the valuable insight needed to safely reduce some of the barriers to effective working during COVID-19, to agree new, safe ways of progressing adoption for children in a socially distant world.
Trialling a new approach to housing for service personnel
While armed-service accommodation is often synonymous with barracks and family bases, three new MOD Family Accommodation Model (FAM) pilots, launched in 2019 and 2020, offer service personnel a different option. As part of its aim to modernise its accommodation offer while also making it more affordable, we’ve worked closely with the MOD to design and launch three pilots that are trialling a new approach to housing for service personnel.The Family Accommodation Model pilots The pilots offer a more flexible option in which service personnel can choose to take a financial subsidy instead of paying for traditional military housing options. They can use this to rent privately with whoever they choose, or even get onto the housing ladder. The new approach is changing the lives of service personnel in the pilot areas by offering them more choice – with the potential to impact the lives of thousands more service personnel and their families in the future. FAM has been a lifesaver Submariner Aaron Chapman and his wife Hannah have moved out of Service Families Accommodation and into a privately rented property with their children thanks to the Future Accommodation Model (FAM). “Until June of this year we were actually living apart because marital quarters just weren’t working for us” said Aaron. We felt like we had no privacy and that everyone was on top of each other. That meant our whole family was split.” Hannah, continues: “FAM has been a real lifesaver for us. We chose to rent in the private sector and it means we’ve now got a much bigger property, all for only £7 more than we were paying in SFA.” Aaron adds “It’s great for us and the kids to feel so comfortable and it’s had a massive impact on family life. Because I know my family are happy, I’m happy to stay in the Navy.” A detailed operational model To help the MOD design and trial this new accommodation model, we brought together a team of specialists in real estate, financial modelling, data analytics, tax, audit and human capital. “We needed a broad mix of skills to develop a clear understanding of the factors that would influence how the MOD could best go about trialling more flexible accommodation options for service personnel” said Deloitte director Katie Lowry. This included building a picture of how many service personnel might choose to live in privately-rented accommodation and determining what mechanisms the MOD could best use to offer this choice and test its long-term viability. “Bringing together an understanding of the private rental market, behavioural trends with our financial assurance expertise, we created a model that could test out a range of scenarios.” Exploring the full range of options was essential to give the MOD a firm financial footing on which to proceed.Making a difference As well as offering greater choice, FAM also recognises the changing lifestyles of service personnel, broadening the entitlement for family accommodation beyond those who are married or in civil partnerships to include people in established long-term relationships, and divorced parents with shared custody of children. “Now the pilots are underway” continues Katie “our role is to work with the MOD to keep developing its understanding of the issues that are important to its people and their families, and how the models are working in practice”. Due to run until 2023, it’s hoped this work will help inform a significant, positive change to military life.
Collaborating with start-ups to develop new legal tech
Our aim for Deloitte Legal is to build a market-leading legal practice with technology at its centre, so that our lawyers can offer the best possible solutions to clients. Deloitte Legal managing partner, Michael Castle said: “New technologies have revolutionised a number of industries in recent years, but so far the legal sector has lagged behind.” “We believe our approach to developing legal technology will redefine the way legal services will be delivered in the future.” By helping lawyers to resolve complex problems in shorter timeframes, new technology is enabling lawyers to do more for less. Clarity for start-ups Deloitte Legal Ventures is an innovative way of supporting UK enterprise, while introducing clients to some of the most exciting legal technology in the market. Typically, new products or services require ‘proof-of-concept’ to demonstrate the viability of the new technology. Yet for many start-ups, products are often piloted without a full understanding of how their success will be measured. “The process of working with big businesses can mean start-up companies often struggle to understand how their proof-of-concepts are being measured”, said Scott Campbell, partner at Deloitte and leader of Deloitte Ventures. “In reality, big businesses can be nervous to test pilots with real customers.” Taking a different approach, Legal Ventures allows both parties to decide, at the outset, what success looks like and measure it using agreed metrics. In practice, this means speeding up the process of taking potential new technologies from the ideas stage to proof of concept, while also ensuring that the concepts themselves will solve actual client problems. “We’re looking forward to doing this differently” Scott continues “because it could be the difference between success and failure.” Collaborating with pioneering companies “Collaborating with pioneering companies offers the best of both worlds” continues Michael. “We can all learn together while supporting innovative ideas and driving them forward.” Selected from 400 technology companies, 14 companies were hand-picked to join our first cohort for the Legal Ventures programme - chosen because their products aligned with our future strategy to provide new solutions to legal problems, enabling our clients to experience the future of law, today. Working closely with the initial cohort, we’ve provided them with detailed feedback on their products and services along with access to consulting, technology, legal and investment expertise from across our firm. Since the launch of the Deloitte Legal Ventures programme, we have improved our ability to respond to clients’ problems through technology. As a result of the programme clients are actively engaging with Deloitte Legal to submit ambitious innovation challenges they would like to see solved through the venture in 2021. Support for ‘Venture Scientists’ All over the UK, digitally-native students are a hotbed of new ideas with the potential to bring even more innovative ideas. Recognising that, with our support, the right start-ups could make a big impact for our clients we began collaborating with Conception X - a venture builder that empowers students from the UK’s leading PhD programmes to create tech start-up enterprises. “Taking the Ventures premise a step further” explains Deloitte Legal’s innovation and ventures lead Laura Bygrave, “we’re also supporting talent at the earliest possible stage, exploring technology solutions to the unknown legal problems of tomorrow.” Dr Riam Kanso, chief executive officer of Conception X, added: “By engaging with early stage deep technology, created by talented PhD students, industry leaders like Deloitte are at the forefront of shaping the future of their industry.” “We are working with people who are excited about tackling challenging problems head on, while creating and opening markets for innovations.” “They are already looking at the world 5-10 years from now, gathering insight on the products and services that will be part of our economy and society. This is the future, and we're excited to be riding the wave together.”
The audit debate: time for change
We’d expected that 2020 would be a transformative year for audit reform. While COVID-19 may have slowed the pace of legislative and regulatory reform, it hasn’t taken away from the pressing need for change. All of the major independent reviews into the sector – including those by Sir John Kingman, the Competition and Markets Authority (CMA) and Sir Donald Brydon – are complete. Some of the recommendations put forward are being taken forward by the regulator and the firms voluntarily, others requiring legislation await further consultation. Reform of audit was in both the Conservative Party manifesto and latest Queen’s Speech, and Parliament’s BEIS Select Committee opened a new inquiry to tracking progress on audit reform (we submitted written evidence at the start of September), so there is appetite from politicians to move ahead too. While the disruption caused by the pandemic has unsurprisingly challenged the pace on some reform, this should not hinder progress as we head into the remainder of 2020, and beyond. Momentum for change We’ve been consistent right from the start of the debate in our support for reform – we remain committed to playing our role in delivering change that enhances audit quality, improves choice and restores trust. While there are some reforms that will require legislation, we also recognise that we must go further – to be more transparent about our audit business and continue to demonstrate that audit quality remains our number one priority. That’s why we recently announced changes to our audit governance structure, with the establishment of an independent Audit Governance Board (AGB). Effective from 1 January 2021, the AGB will be chaired by Margaret, Baroness Ford of Cunninghame OBE, and will have a majority of independent non-executive directors, including Jim Coyle, Almira Delibegovic-Broome QC and Shirley Garrood. The AGB will have responsibility for providing independent oversight of our UK audit practice, with a focus on the policies and procedures for improving audit quality and ensuring the Financial Reporting Council’s (FRC) objectives of, and desired outcomes for, operational separation are met. It’s also pretty clear from the audit debate that the current product is not meeting the needs of all its stakeholders and the complexity of today’s business environment. As described by Sir Donald Brydon, we agree audit should inform as well as assure, extending its scope to areas of broader public interest, not solely historic financial statements. We are therefore bringing about changes to our audit product. Examples include enhancing our risk assessments to equip our auditors to focus on fraud and viability, working closely with a range of specialists to provide further challenge. We also aim to provide more assurance and transparency around responsible business behaviour, including by providing greater clarity around the financial and non-financial risks within modern corporate business models. However, as we have said throughout this debate, these changes must also be considered alongside a wider package of reform. This includes in vital areas such as corporate reporting, the role of directors and the regulatory environment in which we operate. To us, it would be a missed opportunity to just make changes in audit and to stop there. Wider reform is needed to enhance quality and improve trust. The COVID-19 pandemic has brought companies, regulators and auditors together to navigate corporate reporting in an increasingly challenging environment. One where future viability is often unclear, where there is a heightened risk of fraud and where businesses have to demonstrate their impact on society like never before. We must use this momentum to drive longer-term change – creating an audit product of the future that is valued by all stakeholders and a more robust corporate governance ecosystem. Voice in the debate Throughout this process, we’ve been engaging closely with government departments, regulators, politicians and the media to inform the broader debate about the audit market and share our points of view on potential measures for reform. Examples include publicly sharing our ideas, providing interviews and commentary in response to key recommendations, as well as writing opinion pieces and blogs, and contributing to podcasts and other mediums. We acknowledge that change is needed urgently and this requires everyone in the market to step up. In particular, the voice of companies and investors needs to come through in this debate – sustainable and effective changes will require their input. The guiding principle for our firm has always been that any changes introduced must enhance audit quality. Where we see that certain solutions could endanger this, we have put forward practicable alternatives. We have also been resolute in our position about the unintended consequences of certain changes, and stressed that reforms must be proportionate, and avoid damaging the reputation of the UK as a leading capital market and its position in the global economy – particularly as we emerge from the pandemic and the UK repositions itself after leaving the EU. Ultimately though, businesses, regulators and governments around the world are watching the UK debate closely, so there is an opportunity to bring in reforms that set a lead for others around the globe to follow.
Keeping up with Brexit
Since that historic day in June 2016, the UK’s departure from the EU has been far from straightforward. “The twists and turns of the past four years have certainly kept us on our toes,” says Amanda Tickel, Deloitte’s Brexit lead. “But with the transition period now certain to end on 31 December 2020, policy and guidance is rapidly being released and businesses are refocusing their attention on preparing for the UK’s future relationship with the EU and the rest of the world.” Sharing insights Our Brexit insights team helps organisations navigate the complexities arising as a result of the UK leaving the EU. Made up of some of the brightest political and technical minds, the team comprises of people from across all areas of our firm, including experts in tax, audit and public policy, as well as full time advisers Raoul Ruparel OBE – former special adviser to the Prime Minister on Europe – and James Caldecourt – former special adviser at the UK’s Department for International Trade. The team works closely with our specialists across both the private and public sectors in areas such as supply chain resilience, logistics, border readiness, trade policy and immigration, to design and implement preparations for the end of the transition period. Alongside producing blogs and updates on the latest changes, their weekly webinars and round ups have around 10,000 subscribers and over 15,000 viewers from the UK, EMEA, Asia-Pacific and North America. They have also hosted roundtables and events to connect different perspectives. One recent example included bringing together representatives, in sectors ranging from retail to aerospace, from London, Belfast and Dublin to discuss the Northern Ireland Protocol. Helpful chat To help the business community as a whole stay in the loop with the latest Brexit developments, the team has partnered with trade bodies such as the Institute of Directors (IoD) – the UK's largest membership organisation for business leaders. By October 2019, the UK government had released over 600 pieces of guidance, covering multiple areas, to help businesses plan for a possible no-deal scenario, with guidance also produced by the European Commission and regulatory bodies. The team worked with the IoD, on a grant-funded project, to help businesses of all sizes navigate and decipher this high volume of information by creating a ‘chat bot’ – an automated service using natural language processing and machine learning – to help answer pressing Brexit questions and provide guidance. With over 3,000 users in just three weeks, the service was free to use and available 24/7 on the homepage of the IoD website. Jonathan Geldart, Director General at the IoD, explains: “The IoD worked with Deloitte to deliver a seamless and timely suite of answers on the Brexit preparation questions. This was designed to give not only our over 26,000 members access to the information they needed, but also to a much wider audience of predominantly SME directors who were searching for the facts they needed to address a myriad of issues and concerns. “The work was high impact and elicited extraordinary engagement levels with our audience throughout the campaign.” Going global And of course, Brexit doesn’t just impact trade for UK and EU businesses. “Anyone who trades into the UK will be affected, so it’s really important we work closely with our global network to make sure everyone is up to date with new customs formalities. And with the number of trade deals set to rise after Brexit, we’re seeing real interest from businesses right across the world, particularly in the US and Asia-Pacific, to learn more” says Richard Vitou, partner in Deloitte’s Global Trade Bureau. It’s clear there are plenty of changes to get used to. One of those will be adapting to the new customs formalities to address the movements of goods from the EU. The UK government is estimating an additional 205 million customs declarations will be filed annually. And, with 180,000 traders making customs declarations for the first time in January 2021, some may not know the process can actually be simplified – saving them both time and money. “That’s why we recently launched the Global Trade Bureau, our dedicated customs compliance business. The Global Trade Bureau is exclusively focussed on supporting clients meet their customs compliance requirements, and to plan and prepare for additional complexities arising post Brexit,” Richard adds. The team has around 20 experienced customs specialists, based in a dedicated office in Ipswich. Using technology, the Global Trade Bureau gathers data on movements of goods from clients and their supply chain partners through a secure electronic portal. It then prepares customs supplementary declarations using customs duty management and reporting software, and provides clients with a real-time visualisation of their trade data.
Responding to COVID-19: scaling up the UK’s testing capacity
A national challenge In March, the arrival of a global pandemic public health crisis saw the majority of the country heading into lockdown. Meanwhile, along with forty public and private sector companies, a large and varied team from Deloitte rapidly stepped up to support the creation and expansion of testing as part of the NHS Test and Trace Programme that’s at the heart of the UK’s response to the COVID-19 pandemic. Within six months the NHS Test and Trace Programme had 30,000 people working for it, with 75 drive through test sites and 118 walk through test sites operational across the country, and over 16 million tests had been delivered with a longer term objective to significantly scale that up further. The UK conducted more tests per capita than the majority of European countries. “We are incredibly proud of the role that all of our people have played in supporting the creation of the testing programme and the results achieved. One of our clients described it as having to build an organisation the size of the BBC, from scratch, in just a matter of days,” said Sara Siegel, Deloitte’s UK head of healthcare. The right skills Many people from across Deloitte were involved in projects supporting the testing programme, people with expertise in major government projects, digital, supply chains, logistics, real estate, procurement and project management. “There were eyebrows raised and questions asked about why an ‘accountancy firm’ was involved” said Jayson Hadley, Deloitte’s UK public sector leader. “There is a huge infrastructure of technology, logistics and planning to deliver everything that is required.” “That’s where Deloitte comes in. The breadth and scale of expertise we were able to bring to the challenge quickly has been crucial to the success of the behind-the-scenes operation.” Digital first At the centre of this mix of expertise are our digital skills. “The booking system was designed, built and live within three weeks” said Deloitte Digital partner Joel Bellman “and now handles more orders per day than most major retailers.” “The digital systems have to link up with every other part of the programme – the public, the courier firms who deliver kits, the testing sites, the labs who process the tests, the parts of the NHS that report your result back to you and on to other parts of the NHS.” Location, location, location The expertise of Deloitte’s real estate professionals was a vital part of the operation, with factors such as size, accessibility and the length of time the site would be available for important considerations in decisions on where to locate testing sites. Once locations were identified, our team supported discussions with landlords, local authorities and NHS bodies to help select the best sites and get these approved and ready. Once sites are identified and secured, they need a workforce with the right training and a supply of equipment and technology. Here our specialists in operational and infrastructure design stepped in. Then, with a site secured, staffed and stocked, they were transitioned over to facilities management companies to manage the day-to-day operations from there. In all, within 37 days of Deloitte’s appointment to support the testing programme, 50 test sites had been mobilised. Private v Public The role of the private sector in public services always drives debate and discussion. But, as the government has acknowledged, part of the success of the NHS Test and Trace Programme to date has been the powerful partnership between businesses and government. Each has a vital role to play in what is a complex and critically important programme. Alongside Deloitte and the NHS, numerous private sector businesses have played a key role, as have the military and pharmaceuticals industry. The road ahead “Testing is going to remain a regular feature of day-to-day life for some time to come” added Sara. “The basis of a more prevalent testing regime is now in place and, while there have of course been challenges – there always will be with something this complex and unprecedented – the UK is well positioned to make testing central to the economic and public health recovery. We’re proud to have played a part in supporting the national response.”
How accounting is helping to reach sustainability goals
From disruption to products, services and supply chains, to the acceleration of policy and regulatory change, businesses are waking up to the drastic action needed to transition to a low-carbon economy and protect our planet. But as companies increasingly pledge actions to reach sustainability goals, tracking and monitoring progress towards these goals poses a real challenge. At the same time, climate and ESG (environment, social and corporate governance) information is crucial for the healthy operation of the world’s capital markets. Investors, employees, suppliers, policy makers and other stakeholders need to have access to transparent data about companies. This information can help distinguish well-governed companies and their ability to mitigate disruption and provide a better understanding of the resilience of business models to withstand potential global shocks – yet it is not consistently reported in annual reports and accounts. Enter the accountants “The accounting profession has a leading role to play in tackling climate change. We at Deloitte recognise this and are integrating climate change related risks into the core of our audit approach”, said Veronica Poole, partner, global IFRS leader and head of accounting and corporate reporting. In practice, this means challenging the narrative included in disclosures of strategies and governance of climate-related risks and measuring the impact of these risks in financial statements. “Climate change is a risk to financial stability and it impacts businesses in all sectors. No-one is immune” Veronica continued. “It is also a business opportunity. Consistent and clear reporting of climate-related risks and impacts is critical if we are to direct capital to resilient businesses and succeed in achieving the goals set out in the Paris agreement.” In 2019, we introduced a climate leadership category at the A4S Finance for the Future Awards. The awards showcased organisations that are accelerating their response to climate change, providing solutions to enable the transition and embedding climate change within organisations’ strategies and business models Pledging change As a firm we are committed to a sustainability journey for the long term in which we address our own environmental impacts, while supporting clients as they seek to do the same. During the World Economic Forum’s annual meeting at Davos 2020, we joined some of the world’s largest companies in signing up to a new environmental disclosure scheme that aims to support our transition to net-zero carbon emissions. We have also signed up as a supporter of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations which is now supported by 1,000 organisations globally and looks set to expand further. UN special envoy for climate action Mark Carney has launched an initiative to secure global agreement to a pathway for mandatory TCFD reporting at next year’s 26th UN Climate Change Conference, COP26. Transforming corporate reporting and audit Society needs to have confidence in the completeness and accuracy of climate and ESG reporting, and we recognise the critical role the audit product has to play in that regard too. “Corporate reporting and audit should continue to evolve to meet societal needs” said Katie Canell, audit product strategy managing director at Deloitte. “Clear, consistent reporting on climate, broader environmental and societal matters are a critical part of understanding the modern corporate business model.” The future audit product envisaged by Sir Donald Brydon recognises that a number of changes from all market participants are needed to restore confidence. Sir Donald’s report talks about the need for “audit to inform as well as assure” and be relevant to broader stakeholders. Clarity around, and assurance on business model risks, controls and metrics are central to this. “We are committed to this evolution of corporate reporting in the public interest” added Katie “and developing our audit product as part of this evolution is a priority.” Boosting training and sharing resources Last year, we trained around 2,000 auditors – from partners to graduates – on the impacts of climate change on business and implications of these for our audits. Resources we have developed to help our auditors and clients integrate climate risks into the core of our audit approach include: Learning models covering ESG issues which align with new mandatory reporting requirements for directors to consider stakeholders’ needs in promoting companies’ successA dedicated climate change website and video learning programme launched in collaboration with the ICAEW in June 2019 – now a ‘go-to’ resource that is open to all and is there to help leaders ask the right questions about climate change at the board levelEvents on climate change at the Deloitte Academy have included seminars to mark the launch of Chapter Zero (affiliated with the World Economic Forum) which convenes non-executive directors to increase board action in response to the impact of climate change on business.
It pays to support mental health at work
An estimated one in six people of working age experience a common mental health problem in any given week. This makes poor mental health one of the UK’s biggest social problems. In new analysis published earlier this year ‘Mental health and employers: the case for refreshing investment’, we explored the relationship between mental health and work. “Working with Mind we refreshed insight we first conducted in 2017 for the ‘Thriving at Work’ review on workplace mental health, which calculated that poor mental health costs UK employers £33-42 billion a year” said Elizabeth Hampson, Deloitte director and author of the 2017 and 2020 reports. A complex picture of mental health “Collaborating with Mind and using data from their Work Wellbeing Index added important perspectives to the research and allowed us to share more insight than in 2017.” “It’s enabled us to show a complex picture in which, despite more help for mental health being provided by employers and a reduction in perceptions of associated stigma, costs to employers of poor mental health continue to rise.” Poor mental health now costs UK employers up to £45bn each year – but this is a cost they can cut considerably by investing in mental health support for their people. Exploring new causes of poor mental health at work In January 2020, the BBC broadcast a day of programming on poor mental health at work. Our analysis was used to quantify the size of the problem in coverage across TV, radio and online news. “We were asked by the BBC to refresh this analysis provide data on this important issue” said Deloitte manager and co-author Anju Jacob. “Our research highlighted important issues like the potential effects of a growing ‘always-on’ culture driven by technology, and the emergence of young people as the most vulnerable group in the workplace to poor mental health.” “Sharing these findings as widely as possible is really important to us - because only by understanding the root causes can employers start to help.” For every £1 spent, employers get £5 back “Just as importantly” Elizabeth added “the research showed there were no downsides to employers’ investing in support for their people.” “The return on investment analysis of employee mental health interventions that we conducted as part of the research showed that it pays to support mental health at work – for each £1 spent on mental health interventions, employers get £5 back.” The analysis also showed that, when investing in help, employers can achieve a higher return on investment with early interventions, such as organisation-wide culture change and education, than more in-depth support that may be needed at a later stage when a person is struggling. Based on a finding in the analysis that employees with financial concerns are more likely to report signs of poor mental health that affect performance at work, our consulting teams have begun work to increase financial literacy amongst our employees and sign-post support for individuals facing financial challenges. By making this strong case for investment, we’re hoping that more businesses will implement changes. Mental health at work – a viewpoint from Mind “It’s worrying to hear so few UK employees feel their employer is consistently promoting their mental health” said Mind’s Head of Workplace Wellbeing, Emma Mamo. “The pandemic has thrown up huge challenges and concerns for employers and staff, including things like job security, furlough, juggling working and parenting and the challenges of working remotely, to name a few.” “That’s why it’s more important than ever that employers put in place well-promoted, easy to access wellbeing initiatives to reassure staff that their wellbeing remains a priority. Measures such as subsidised or free counselling, financial check-ups, 24-hour Employee Assistance programmes and online exercise classes can all make a difference.” “In these uncertain times, employees will be looking to their employers to provide guidance. Many employers are having to make tough decisions and plan for lots of different outcomes.” “As well as considering the safety of their staff, it’s also important employers invest in their mental health, especially given many employees are likely experiencing worsening problems like stress, anxiety and depression.” “Mind can help businesses create mentally healthy workplaces, through our Workplace Wellbeing Index, bespoke training and free resources available from Mind and the Mental Health at Work website.” One million futures made brighter In 2016, we set out to help one million people get to where they want to be through access to education and employment Mind is one of 70+ society partners we have worked alongside to achieve this goal – which we officially reached in 2020. Learn more.
A new UK manufacturing base for PPE
To help equip frontline workers with safe-to-use PPE, a Deloitte team began work alongside the government in an effort to boost the nation’s resources. "The challenge was extraordinary in its scale and complexity” said lead partner Colin Terry. “Our role was to do everything we could to support those working to deliver to frontline services who were working hard to save lives.” To help, we quickly assembled a 50-strong, multi-disciplinary team that could support this vital part of the national response to COVID-19. Rapidly securing PPE supplies Identifying the wide mix of skills that would be needed, we brought together specialists in public procurement, life sciences, logistics, finance, medical appliances, PPE regulations, and health and safety to support civil servants and a range of government advisors. “Drawing on the skills in our firm and working alongside the Cabinet Office, Department of Health and Social Care and the NHS,” Colin continued. “We had a goal to rapidly secure a worldwide supply of PPE and simultaneously establish a brand-new manufacturing base in the UK.” Make, buy, distribute and re-use We supported the Government approach to increase the UK’s PPE supply through an approach of ‘Make, Buy, Distribute and Reuse’. This strategy involved working on a number of fronts to mobilise UK manufacturers, while also making the most of the potential to source items and materials from around the world. For example, while working with British manufacturers to support PPE production we also supported Government work to: procure safe-to-use items from suppliers in the far east, working with the Foreign & Commonwealth Office in Beijingexplore options for safely reusing PPE, by helping to assemble a team capable of supporting the operation to assess decontamination techniquesensure fast, safe delivery for PPE items across air, road, rail and sea, straight to the UK distribution centre.Impact As a result of this strategy, in collaboration with Government, we supported the initiation of a UK-based manufacturing operation in just eight weeks. Against the backdrop of surging demand for PPE and global lockdowns, the operation made and delivered millions of safe-to-use gowns, visors, facemasks and aprons at pace and at scale. “All of us at Deloitte are incredibly proud of this work which has helped to strengthen the UK’s domestic supply of PPE, created stronger foreign supply chains and explored new uses for existing PPE items” added Colin. “Most importantly, we’re proud to have helped get millions of PPE items to where they were needed during the pandemic, to help protect NHS workers – and to have laid the foundations for boosting future supplies.” How the Make, Buy, Distribute and Reuse approach worked in practice.Make Make was the Government strategy to encourage UK manufacturers to turn their hand to the manufacture of PPE. Working with potential UK manufacturers we supported them through regulatory and testing processes to make sure newly-made PPE products conformed with medically-approved specifications. We also supported Government processes to review manufacturers’ business cases for production and confirm that items could be delivered at pace and scale. Buy To help boost the procurement of PPE, our procurement specialists worked alongside Government to support a purchasing channel with FCO staff in the Beijing UK Embassy, due to the large-scale production already existing in China and the far east. Distribute To support the newly established ‘Buy’ channel our logistics experts helped the Government deliver PPE items from the ‘factory gate’ to the NHS stockpile, providing operational support to track shipments and direct suppliers. Reuse To support the Government to better prepare for future COVID-19 strains on PPE supply by helping them assess the potential for re-use of items of protective equipment. This involved coordinating the activities of a technical group across government including policy makers, regulators and technical experts to assess decontamination techniques to enable the safe re-use of PPE.
How twin tech is helping _VOIS design a new future
Vodafone’s shared-services entity _VOIS are reimagining their future - with the help of the cutting-edge digital-twin capability developed by Deloitte, based on F1 technology. Using vast amounts of data to replicate a company’s operations, digital-twin technology can be used to simulate different processes and outcomes. To deliver the best possible value for Vodafone Group across all of their services - a vast portfolio ranging from customer care to cyber security, marketing to analytics - _VOIS saw the opportunity to use this technology in a new way. Working together with _VOIS, our data simulation experts built digital twins of the systems managing its important call-centre processes, like scheduling and workflows. The aim was to see how twinning could help _VOIS carry out tasks more efficiently, in ways that would have a positive impact on their people and customers. “It’s an important evolution in digital twinning” said Deloitte’s Eytan Hallside “as it’s the first application of the technology that looks to optimise processes and people’s time, as well as physical assets”. Delivering value As well as providing shared-services support for Vodafone, _VOIS is a strategic partner that helps Vodafone’s businesses deliver new capabilities through people, process and tech innovation. “Over the last ten years, we’ve delivered considerable value to the Vodafone group” said _VOIS Director, Gary Adey. “Recognising the power of digital to help us go even further, one of the things we started to look at was the idea of digital twins.” Understanding its operations To get started, our consulting team worked closely with _VOIS to thoroughly understand their operations. We then built two prototypes to model scenarios related to workload and forecasting, including the most efficient way to staff call centres. “By building a detailed digital replica of _VOIS systems and processes, we were able to test alternative call-centre shift patterns, call flows and task allocations to determine changes and deliver more value from _VOIS’ existing resources” added Eytan. “And because twinning removes the need for ‘live’ trials, users can test more scenarios and understand the impact on operations in near-real time”. “As a result, _VOIS was able to increase productivity by 15% just by managing our resources in a different way” added Gary. Supporting people As part of their work to deliver more from their existing resources, _VOIS was interested in how the simulations could make changes that would have a positive effect on their people. Managing workloads more efficiently has already led to positive effects including greater flexibility in shift patterns. In addition, an early application of the technology helped _VOIS to shape shift-patterns in a way that enabled them to tailor jobs to suit, for example, students interested in short-term positions. Working through the pandemic With plans to extend the application of these principles further, the world was struck by the outbreak of the COVID-19 pandemic. Having already built a successful relationship, we collaborated with _VOIS on using twin technology to manage the challenges posed by a rapid transition to home-working. With developments to the prototype, the impact of COVID-19 could rapidly be modelled to support business continuity, customer service delivery and people management initiatives. It was designed to test shift changes and determine how people could be organised best so call centre staff could work effectively from home. This innovation enabled people to balance work and personal commitments, while still delivering an efficient service. A model for the future “When we started developing the twin we thought we were being disruptive” added Gary “but COVID-19 has been a catalyst for rapid change, and reinforced the need for digital transformation faster than many businesses had in their plans.” Future plans for _VOIS involve modelling new types of roles, such as a three-hour shift for people with caring responsibilities and working patterns for people who are re-skilling or returning from parental leave. What is digital twinning? Imagine that you had a perfect digital copy of the physical world: a digital twin. The ‘twin’ is a detailed digital replica of a client’s systems or processes. Drawing on vast amounts of data, it can model how that environment would function in different scenarios. Unlike traditional machine learning, it can be used to test new conditions – in this case alternative shift patterns, call flows and task allocation in call centres – to determine which changes will improve performance. Imagine that you had a perfect digital copy of the physical world: a digital twin. The ‘twin’ is a detailed digital replica of a client’s systems or processes. Drawing on vast amounts of data, it can model how that environment would function in different scenarios. Unlike traditional machine learning, it can be used to test new conditions – in this case alternative shift patterns, call flows and task allocation in call centres – to determine which changes will improve performance.
May the forest be with us
Forests cover one third of the land area on our planet. They’re home to much of the world’s biodiversity, they purify our water and air, and absorb carbon dioxide. But forests around the world are under threat because of deforestation, with millions of acres lost every year – and gone forever. Various monitoring systems can detect deforestation once it’s happened. What if we could predict where forest will be cut down so we can intervene in time? The World Wildlife Fund (WWF) has been working to protect forests for more than 50 years. They’ve recently developed an artificial intelligence solution that can predict illegal deforestation before trees are even felled – and we’re helping them bring it to life. Seeing the wood for the trees The idea behind WWF’s ‘Early Warning System’ is to connect satellite images and other geographical data with illegal human activity – for example, images of road works near a forest could indicate plans to provide access to devices that cut down trees. This helps local governments take action before it’s too late. When WWF were looking for a technology partner to further improve and scale the existing solution, we knew we wanted to be a part of it. Since January 2020, a team in the Netherlands has been working on turning the initial prototype into a fully customisable and scalable solution – all thanks to data science and the power of the cloud. We set up a consortium with Jheronimus Academy of Data Science and Utrecht University, which gives us access to leading researchers, as well as Amazon Web Services (AWS), who provide their cloud platform. And thanks to the Deloitte Impact Foundation, which enables our people to apply their knowledge, skills and talents to benefit society, we put a team of our experts to work on the project. Data, data, data The main challenge was monitoring millions of hectares of rainforest, identify varying activities and design effective interventions. Together with our consortium partners, we developed a solution for users on the island of Borneo that can predict illegal deforestation six months in advance. So how does it work? First, we transform raw data into information-rich data – for example locations of roads into nearest roads to a certain area, which may provide easy logging transportation. This is where the cloud comes in. The amount of data we work with is huge, so we work with AWS to process the datasets much faster, as well as scale to larger landscapes. Next, it’s time to share this information in the most effective way. The predictions are displayed in an interactive interface to help local users identify which ones are a priority. For example, in Kalimantan (Indonesia) we can prioritise predictions depending on whether certain species live in the area – such as orangutangs or clouded leopards – and how much carbon is stored in the trees. The power of the cloud We’ve expanded our scope from Central Kalimantan to a wider area of Borneo over three times as big, including Sarawak (Malaysia). Initial site visits in the pilot area showed signs of possible deforestation. We were able to increase the scalability of the solution through use of cloud-native AWS technologies, improve the model and enhance the user experience by developing a fully custom user interface. The project was put on hold temporarily due to the COVID-19 outbreak, but the team are looking forward to restarting it, and continuing their work in multiple other deforestation fronts. Using the cloud means that the technology can easily be expanded to other areas at risk. We’re proud to work closely with WWF and the much wider ecosystem of governments and local actors to make a difference in one of the most pressing issues facing our planet.