- Ambition to be “net zero” in 2025
- Plans to reduce absolute emissions by 40%
- Will launch new sustainable solutions focused on helping EY clients create value from sustainability
EY announced an ambition to be carbon negative in 2021 by setting targets to significantly reduce its absolute emissions and removing and offsetting more carbon than it emits. In a new statement, EY set out the seven key components of its plans to not only become carbon negative but to reduce total emissions by 40% - consistent with a science-based target - and achieve net zero in 2025.
The EY commitment to sustainability is an integral part of its NextWave strategy and ambition to create long-term value for all stakeholders.
This new ambition builds on the global organization’s achievement of carbon neutrality in December 2020 and underscores the EY commitment to the environment and to driving long-term, sustainable growth. Key elements of the ambition include:
► Reducing business travel emissions by 35% by FY25 against a FY19 baseline.
► Reducing overall office electricity usage and procuring 100% renewable energy for remaining EY needs, earning membership to the RE100, a group of influential organizations committed to renewable power, by FY25.
► Structuring electricity supply contracts, through virtual power purchase agreements (PPAs), to introduce more electricity than EY consumes into national grids.
► Providing EY teams with tools that enable them to calculate, then work to reduce, the amount of carbon emitted when carrying out EY client work.
► Using nature-based solutions and carbon-reduction technologies to remove from the atmosphere or offset more carbon than EY emits, every year.
► Investing in services and solutions that help EY clients profitably decarbonize their businesses and provide solutions to other sustainability challenges and opportunities.
► Requiring 75% of EY suppliers, by spend, to set science-based targets by no later than FY25.
New sustainable solutions to help EY clients reach their goals
Alongside the work it is undertaking to become more sustainable, EY teams are developing a new set of global sustainability solutions for EY clients aimed at helping them on their own sustainability journeys. The solutions will be focused around value-led sustainability, helping EY clients capture the business opportunities from sustainability and decarbonization, while also protecting and creating value. This follows the approach EY teams have taken to achieve these sustainability targets and carbon negative ambition.
EY continues to invest in technology and transform its business, which was accelerated by the COVID-19 pandemic. For example, during the pandemic EY teams worked with both clients and EY organizations to help implement workplace changes, including flexible working and increased use of remote working technologies, which are expected to contribute to reductions in business travel. EY is also working closely with airline and hospitality clients to achieve this goal and find innovative solutions.
The carbon negative announcement follows other actions EY has taken to reduce the organization’s environmental impact and drive sustainable growth. The EY organization is also playing a leading role in the World Economic Forum’s International Business Council, which has developed a core set of common metrics and disclosures on non-financial factors for investors and other stakeholders.
Commenting on EY’s carbon negative ambition, Stavros Pantzaris, Chairman of the Board of EY Cyprus, said: “Combatting climate change is a vital element of building a better working world. All of us at EY are passionate about tackling this big challenge and that is why we have set such ambitious goals. At the same time, we are investing in new solutions and services to support our clients in fulfilling their own vision regarding sustainability, always adapted to the specific needs of their industry, and to create value by setting and achieving similar ambitious objectives.”