In FY21, EY emitted 394k tons of carbon dioxide equivalents (CO2e) compared to 976k tons of CO2e in FY20 – a decrease of 60%. This represents a 71% decrease from the 1,354k tons of CO2e emitted in the FY19 baseline year. However, the EY carbon ambition will help keep emissions below its 1.5°C pathway in FY22 and beyond, and EY will remain carbon negative as more usual business practices return.
To become a carbon negative organization, EY teams have invested in a carbon offset portfolio with South Pole that includes carbon removal projects. South Pole is a leading project developer and global climate solutions provider. The portfolio includes multiple projects around the world that offset or remove carbon through reforestation, regenerative agriculture, biochar, and forest conservation. The projects contribute to removing or offsetting a total of 528k tons of CO2e, representing 34% of the EY FY21 footprint, making EY carbon negative.
“Carbon negative is when an organization removes even more carbon than it emits. It requires both the setting of a science-based target to reduce emissions to get to net zero and offsetting or removing even more of its unavoidable emissions,” says Steve Varley, EY Global Vice Chair – Sustainability. “Even before an organization reaches net zero, it can proactively manage emissions beyond balancing them out at neutral.”
EY believes that a comprehensive decarbonization strategy must include a rapid reduction in organic emissions and investments in both nature-based solutions and innovative technologies that support the removal of carbon from the atmosphere. In addition to the nature-based offsets and removals projects above, EY has also signed a Memorandum of Understanding for future offtake using DAC (direct air capture) from a pioneering new project that pulls in atmospheric air, then, through a series of chemical reactions, extracts the carbon dioxide. From this, it creates a pure and compressed form of carbon dioxide that is stored permanently underground while returning the rest of the clean air to the environment. This mimics what trees do naturally, faster, and on a smaller footprint that is scalable.
EY teams will continue to invest in a diverse carbon reduction portfolio and to support emission reductions and innovative removal projects to help support the development of critical climate technologies needed to meet global climate goals. This will help drive down the price per ton of CO2e removed over time and bring down the cost of net zero compliance globally – for organizations, countries, and the planet.
How we’re helping others decarbonize
EY, like many professional services organizations, has a less complex supply chain than some other industries like manufacturing and retail. The EY journey to carbon negative has not come with the challenges and complexities that many others face, especially in hard-to-abate industries. However, when coupled with investments in sustainability-focused people, solutions and services, EY is helping others, both large and small, to decarbonize.
In addition to working directly with clients, EY member firms are also collaborating with other leaders and driving progress through its work with the Sustainable Markets Initiative, the S30 forum of Chief Sustainability Officers led on behalf of His Royal Highness The Prince of Wales, the WEF Alliance of CEO Climate Leaders, the Taskforce on Nature-related Financial Disclosures (TNFD), The Taskforce on Climate-related Financial Disclosures (TCFD), the World Business Council for Sustainable Development (WBCSD), and other multilateral organizations. These efforts will only increase as we approach, and go beyond, COP26 in November 2021.