EY Luxembourg Sustainability report

EY Luxembourg Sustainability Report

Creating Value-Led Sustainability

Message from the Country Managing Partner and the Sustainability Leader of EY Luxembourg

We are happy to present to you our EY Luxembourg Sustainability Report covering financial year 2023.

At EY, we believe sustainability is everyone’s business. Together we can make the difference.  We see sustainability as a catalyst for the positive energy that encourages a whole ecosystem to step up and seek long-term solutions for the major challenges the planet faces, both now and in the future. For this reason, we started setting targets in order to demonstrate our leadership and inspire, by example, to initiate a movement by empowering our people to make sustainable choices, promote a sustainability vision and positive change through their capabilities and skills. 

EY Luxembourg welcomes the upcoming Corporate Sustainability Reporting Directive (CSRD) that will increase transparency and longtermism and will provide access to the non-financial information from over 49,000 companies in the EU. This is why our FY23 Sustainability Report is inspired by the adopted EU Sustainability Reporting Standards. Please check our interactive Report, to know more about our commitment on helping society to build a Better Working World.

Olivier Coekelbergs
Country Managing Partner

Renaud Breyer
Sustainability Leader

EY Luxembourg Sustainability report 2023
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1

Creating a better working world together

Key figures for 2023

We are dedicated to sustainable inclusive growth

Through our four service lines in EY Luxembourg — Assurance, Consulting, Strategy and Transactions, and Tax — we help our clients capitalize on transformative opportunities. We also help them fulfill regulatory requirements, keep investors informed and meet the needs of all their stakeholders. What’s more, in a fast-changing world, we give them the support they need to be effective today and create long-term value for tomorrow1.

Our employees

1846

EY Luxembourg

Diversity

102

Nationalities

Revenue

€369m

FY23

Growth

13.3%

EY Luxembourg

Number of training hours

49.7

On average, per employee

  • Compare with our data from previous years

    FY22:

    Number of employees:
    1576

    Nationalities: 93

    Average training hours per employee: 57

    Revenue: €325m

    Growth: 12.3%

    FY21

    Number of employees:
    1425

    Nationalities: 81

    Average training hours per employee: 40

    Revenue: €286m

    Growth: 10.2%

1 Unless otherwise specified, all of the figures published relate to the 2023 financial year (referred to as FY23), which covers the period from 1 July 2022 to 30 June 2023.

    General Disclosures Requirements 

     

    • General characteristics of the sustainability report

      Reporting Period

      Our analysis relates to financial year 2023, from 1 July 2022 to 30 June 2023 (called “FY23”, standing for “Financial Year” 2023).

      Scope of the Reporting

      This report covers all Ernst & Young Luxembourg’s activities. 

      In this report, we refer to the EY Luxembourg Office as Ernst & Young Luxembourg, "the company", “EY” or "we". The reporting scope used for sustainability reporting is identical to the scope used for the consolidated financial statements. 

      Application of European Financial Reporting Advisory Group (EFRAG) – Sustainability Standards Reference System 

      This report is inspired by the EFRAG Sector Agnostic Standards of the EU Sustainability Reporting Standards (ESRS), including General principles (ESRS 1), and General, strategy, governance and materiality assessment (ESRS 2).  

      Materiality analysis and scope of aspects

      Based on the EY Global materiality analysis, adapted for EY Luxembourg, we identified the material aspects according to the Global Reporting Initiative (GRI) designation. All aspects selected are relevant to EY Luxembourg. 

      Moreover, we enhanced the materiality analysis, presented in the FY21 and FY22 Sustainability Reports, leveraging on the EU Sustainability Reporting Standards (ESRS), adopted in July 2023.

      EY Luxembourg has started the preparatory journey towards CSRD alignment to be compliant starting from FY25 as per the regulatory requirements for large companies. 

      The current report is prepared on a best effort basis, taking into consideration market practices and available draft reporting standards. 

      In case of material changes to EY Luxembourg’s materiality analysis, they would be promptly communicated.

      For more information, please refer to the Materiality assessment of sustainability impacts, risks and opportunities

      Reporting organization 

      The collection and disclosures of the ESG KPIs included in the EY Luxembourg Sustainability Report is centralized annually for the purposes of this report. 

      We established an internal process for the preparation of the report. The EY Luxembourg Sustainability Team interacts on a regular basis with identified data owners in order to collect the necessary ESG KPIs disclosed in this Report:  

      • human resources-related data is obtained from our Human Resources department;
      • societal data is obtained from our department for Business Development department;
      • data on energy and paper consumption is obtained from our Facility Management department;
      • data on business travel comes from our travel agency.

      The EY Luxembourg Sustainability Team oversees the data collection process and reviews the information received from each data owner. 

      For the reporting of greenhouse gas emissions, the conversion factors were standardized at EY Global level.  

      The various sources of emissions are recorded as follows:

      • Scope 1: CO2 emission from company vehicles
      • Scope 2: CHG emissions currently calculated from purchased electricity.
      • Scope 3: We disclose CHG emissions from company business flights and business rail journeys. The measurement and reporting of the greenhouse emissions has been done using the guidelines, protocols and conversion factors by:
        • WRI / WBCSD The Greenhouse  Gas Protocol: Technical Guidance for Calculating Scope 3 Emissions, 2013
        • UK Government Conversion Factors for Company Reporting (Year: 2023, Expiry: June 2024)

      Whilst we have used the GHG Protocol Value Chain (Scope 3) Standard (see above), we are not yet able to report on all relevant categories. However, we have reported on those which we believe to be most relevant and material to our overall environmental impacts and carbon footprint. 

      This Report is subjected to quality review and controls, both from the EY Luxembourg Sustainability Team and from other stakeholders involved such as the Risk Management team and Country Leadership Committee.

      Sustainability Report Process

      1.
      Definition and communication of reporting guidelines

      The ESG Team is in charge of: 

      • The definition and communication of reporting guidelines
      • The definition of the reporting calendar
      • The identification of the Data Owners

      2.
      Collection of
      non-financial data

      The Data Owners are in charge of:

      • The collection of consolidation of the non-financial data, in accordance with the information provided by the ESG Team

      The ESG team is in charge of: 

      • The analysis and approval of the non-financial information collected by the Data Owners

      3.
      Report preparation
      and communication

      The ESG Team is in charge of:

      • The preparation of the sustainability report

      The Marketing & Communication Team is responsible for supporting the ESG Team with: 

      • The layout of the report and the narratives' verification
      • The preparation of the integrated communication plan to promote the Report
    • Overview of EY Luxembourg business in the context to sustainability reporting

      Ernst & Young, Société Anonyme, is a public limited liability company organized in Luxembourg and is a member firm of Ernst & Young Global Limited (EYG), a UK company limited by guarantee. 

      EY in Luxembourg includes the following operating firms (hereafter the “EY firms in Luxembourg”): 

      • Ernst & Young Luxembourg, Société Anonyme 
      • Ernst & Young, Société Anonyme 
      • Ernst & Young Tax Advisory Services, Société à Responsabilité Limitée
      • Ernst & Young Business Advisory Services, Société à Responsabilité Limitée
      • Ernst & Young PFS Solutions, Société à Responsabilité Limitée
      • Ernst & Young Services S.A., Société Anonyme 
      • EYL Luxembourg, Société à Responsibilité Limitée
      • EY Strategy and Transactions, Société à Responsabilité Limitée

      EY Global (“EYG”) counts more than 700 office locations, in over 150 countries, across three geographic regions:  Americas; Europe, Middle East, India and Africa (EMEIA); and Asia-Pacific. The Areas comprise multiple Regions. Regions are groupings of member firms along geographical lines with the exception of the Financial Services Organization (FSO) Regions, which comprise the financial services activities of the relevant member firms withing an Area. 

      EY Luxembourg is part of the EMEIA Area, which comprises EY Global member firms in 96 countries. Within the EMEIA Area, there are 8 Regions from 1 July 2021. EY Luxembourg is part of the FSO Region.

      EYG is a global leader in assurance, tax, strategy and transaction, and consulting services. 

      Worldwide we count over 312,000 people, who share a commitment to building a better working world, united by shared values and an unwavering commitment to quality, integrity and professional skepticism. In today’s global market, our integrated approach is particularly important to provide high quality Professional services, which can span nearly every country in the world.

      EY Luxembourg Sustainability report 2023

      For more information, please refer to: 

      1. EY Luxembourg Transparency Report 2023 
      2. Chapter 1: Key Figures 2023
    • Summary Tables of ESG Disclosures

      Disclosure requirement

      Details

      Materiality Priority

      Where to find it in the Report

      ESRS 1

      General principles

      N/A

      1.3 General Disclosures Requirements

      1.3.1 Report’s Methodology

      1.3.2 Overview of EY Lux’s business in the context to sustainability reporting

      ESRS 2

      General, strategy, governance and materiality assessment

      N/A

      2.1 Our Strategy and Business Model

      2.2 Our Governance 

      2.3 Materiality assessment of sustainability impacts, risks and opportunities

      ESRS E1

      Climate Change

      M10 - Greenhouse gas emission

      3.3 Supporting environmental sustainability and procurement

      ESRS E2

      Pollution

      Not a material topic for EY Luxembourg based on the conducted analysis, so no disclosures provided

      ESRS E3

      Water and marine resources

      M8 – Responsible procurement and waste

      3.3 Supporting environmental sustainability and procurement

      ESRS E4

      Biodiversity and ecosystems

      Not a material topic for EY Luxembourg based on the conducted analyses, so no disclosures provided

      ESRS E5

      Resource use and circular economy

      M8 – Responsible procurement and waste

      3.3 Supporting environmental sustainability and procurement

      ESRS S1

      Own workforce

      M4 – Diversity

      M6 – Attracting and developing talent

      M7 – Health and well-being

      3.2 Supporting our people and community

      ESRS S2

      Workers in the value chain

      M8 – Responsible procurement and waste

      3.3 Supporting environmental sustainability and procurement

      ESRS S3

      Affected communities

      M9 – Commitments to society/

      Community engagement

      3.2 Supporting our people and community

      ESRS S4

      Consumers and end-users

      M2 – Client satisfaction

      M5 – ESG Services

      3.1 Supporting our clients and profession

      ESRS G1

      Business Conduct

      M3 - Independence

      M1 - Ethics

      3.1 Supporting our clients and profession

    EY Luxembourg Sustainability report 2023
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    2

    Creating a better working world by commitment

    Our corporate sustainability strategy

    We believe we can do more in addressing evolving sustainability challenges

    Our approach to sustainability

    Message from Renaud Breyer, Sustainability Leader

    As part of our Non-Financial Report, we present our corporate sustainability approach. This approach is based on the following pillars:

    1. Our people – our most valuable asset.
    2. Our culture of integrity, with the Code of conduct that is at the core of our policies.
    3. Our impact beyond the organization through EY Ripples, EY global Corporate Responsibility Program.
    4. Our environmental commitment to meet EY Global targets by 2025, to conduct responsible procurement and responsible waste management practices.
    5. Our clients, which we aim to guide in creating long-term sustainable value as an integrated part of their business.

      Renaud Breyer

      Sustainability Leader

    In 2013, EY adopted an ambitious mission statement of “Building a better working world”, which commits us to playing an active role in building a new world which makes the environment in which we operate more balanced. EY is also a signatory of the United Nations Global Compact making us annually accountable to report on the implementation of our principles. 

    In October 2019, EY included this vision in our NextWave strategy, which is designed to create long-term value for our clients, our employees and society, in order to build a better working world. This strategy was adopted and localized in EY Luxembourg under the name Ambition 2021-2026.

    In a world that is changing at a faster pace than ever, our purpose acts as our ‘North Star’ guiding our 1846 employees — providing the context for and meaning behind the work we do every day. 

    We help digital pioneers fight data piracy; guide governments through new international challenges; unlock new medical treatments with data analytics; pursue high quality audits to build trust in financial markets and business; and support organizations to gain a competitive advantage by dealing with climate risks and deploying a sustainability strategy. In simpler words, we work with entrepreneurs, companies, and entire countries to solve their most pressing challenges.

    We help our clients to make the most of new opportunities, while assessing and managing risks to deliver responsible growth. Responsible growth is the key for us. At EY Luxembourg, we believe a better working world is one where economic growth is sustainable and inclusive. We are proud to work with others – from our clients to the wider ecosystem – using our knowledge, skills and experience to help fulfill our purpose and create positive change.

    We empower our people to adopt the right mindsets and skills to navigate what’s next, become the transformative leaders the world needs, pursue careers as unique as they are, and build their own exceptional EY experiences.

    In a rapidly changing world, at EY we’re making an enduring impact by staying focused on our purpose of Building a better working world.

    Our people and our alumni form a powerful network. Each individual leads and inspires others during their time at EY and beyond, bringing our purpose to life in the work they do daily. The ability to leverage and learn from different perspectives is key to delivering for our clients. We believe diversity and inclusiveness means growth. 

    We are investing more time, technology and money than ever before in training and development for our people. Building on the success of our EY Badges program, which helps our people develop future-focused skills in areas such as technology, sustainability and leadership.

    EY has a matrix structure: as well as our service line approach, we also employ an industry sector-specific approach that enables our employees and partners to master the challenges specific to their clients’ activities. 

    Our network of expertise is deployed regardless of the nature of our assignments and allows us to offer our clients tailor-made support and a complete multi-disciplinary approach.

    In July 2020 the role of Sustainability Leader was created within EY Luxembourg and entrusted to Partner Renaud Breyer. Renaud oversees the development of corporate sustainability strategy, planning and reporting and accounts to the Country Leadership Committee for any material ESG matter. 

    Our Luxembourg leaders

    • Clients

      In order to support our clients, we aim to empower organizations to innovate and transform. Our role as an agent in the financial world enables us, due to the diversity of our assignments and our clients, to monitor the underlying trends transforming society and to formulate questions that help to develop our clients’ models and their uses, opening doors to new solutions.

      EY has developed a formal quality assessment process for measuring the satisfaction of our Clients.

    • Employees

      EY people proudly represent our most valuable assets. We apply a complex approach which is used to nurture talents, enhance professional skills, and facilitate communications within EY, for example: 

      • Employees are guided within the organization by their mentors - counselors, who help them to develop a short- and medium-term view of their careers. 
      • Various professional and soft skills trainings are offered, across different topics and sectors. 
      • The upward feedback process introduced in 2016 helps our colleagues to develop and grow, be recognized for achievements and be advised in challenging situations.
      • Lastly, our engagement surveys (EY People Pulse) help us analyze the business climate and the areas for improvement that our employees and partners would like to prioritize.
    • Associations and Academia

      EY has a privileged view of the financial world due to the diversity of its service lines and the sectors in which it operates, not to mention:

      • the many think tanks and networks in which the company is involved;
      • the publication of studies and analyses;
      • the influx of young people joining the world of work and seeking mentorship.
    • Public Autorities

      Our partners and employees can be asked to contribute by setting common standards and reflecting on the regulatory environment in which we operate. Therefore, EY actively cooperates with various ministries and regulatory bodies for the regulatory framework development initiatives.

    • Other Stakeholders

      Moreover, EY Luxembourg constantly engages with:

      • Competitors: to create a healthy competitive environment, in which we grow simultaneously;
      • Suppliers and sub-contractors: to promote accountability within our supply chain and innovation;
      • EY Global: Providing the same excellence all over the world. Ensuring that our clients benefit from an integrated, cross functional network.

    The materiality analysis consists of identifying the various issues related to our economic, social and societal responsibility and arranging them in hierarchical order. 

    EY Luxembourg believes that understanding the needs and interests of all stakeholders is fundamental to executing on the EY Global NextWave strategy and delivering on the ambition to deliver long-term value to EY people, clients and society. 

    To aid in this understanding, we for financial year 2023 we conducted a formal impact materiality assessment, in line with the ESRS principles, to prioritize topics that are both: most important to EY’s business performance and where EY can have the greatest impact on stakeholders. Our goal is to act on our findings by embedding these topics even more deeply into our business strategy, in response to stakeholders’ needs. 

    We conducted materiality assessments in the past and are committed to updating them on a regular basis to reflect changes in business and stakeholder priorities, along with global trends. In view of the upcoming CSRD requirements, we are now establishing the basis for conducting a complete double-materiality assessment for FY25.

    FY23 impact materiality assessment, based on the recommendations provided in the ESRS, was conducted by professionals of the Sustainability team guided by the Global Reporting Initiative (GRI) framework, future reporting requirements, best market practices and EY Global Materiality assessment. The process included senior leadership input, under the guidance of our Sustainability Leader, Renaud Breyer; external stakeholder interviews with clients, regulators and academics; industry and peer analyses; employee focus groups; internal and external media and communication reviews.

    From previous materiality assessments and looking ahead, we continue to further integrate these topics into tour governance model and enterprise risk processes. This allows us to fully integrate sustainability into EY strategic priorities. 

    The results of the most recent assessment are indicated in the following materiality matrix. All topics indicated are material to EY Luxembourg, with the topics in the upper-right quadrant being the most material to EY stakeholders and EY business performance with opportunity for greatest impact.

    As we have prioritized the most material topics, we acknowledge the interconnected nature of environmental, social and governance (ESG) topics and consider all topics listed on the matrix as areas of importance — understanding the progress made in one area may have impact on others.

    EY Luxembourg Sustainability report 2023

    This materiality matrix, in line with the EY Global materiality matrix, has enabled us to identify three key priorities for EY Luxembourg: 

    1. Supporting the creation of long-term value through our services that enables us to create a Better Working World. Our goal is to act in a transparent and ethical manner.
    2. Placing greater emphasis on our people and communities, developing their talents and making a significant social impact.
    3. Being a corporate citizen, reducing our carbon footprint and considering environmentally friendly practices.
    Our materiality assessment also takes into account a number of risks that the Company is facing.

    Managing risk is a strategic priority for the management of the Company, we have spent time looking keenly at the world around us, speaking with people inside and outside of EY: leading thinkers, clients and our people.

    Our culture is the commitment to quality. Our infrastructure has been designed to support quality.

    The principal components of our quality-control program are the following:

    Instilling professional value.

    • The senior leadership sets the right tone at the top, demonstrating this through its behavior and actions.
    • We promote a culture of integrity, as well as the performance of high-quality audits.
    • Among our professionals, they are bound by our Global code of conduct.

    Internal quality-control system. We continue to invest in initiatives to promote enhanced objectivity, independence and professional skepticism.

    Client acceptance and continuance. Our global policy on client and engagement acceptance sets out principles for determining whether to accept a new client or a new engagement, or to continue with an existing client or engagement. 

    Performing audits. Our EY Global methodology provides a global framework for high-quality audit services through the consistent application of thought processes, judgments and procedures in all engagements.

    Review and consultation. Our policies describe the requirements for timely and direct executive participation on audit and the level of reviews of the work performed. Ourconsultation requirements are built upon a culture of collaboration and designed to involve the right resources. Engagement quality reviews are performed by audit partners in compliance with professional standards.

    Audit partner rotation. EY supports mandatory partner rotation to help strengthen auditor independence. We comply with the requirements set up by the IESBA and Luxembourg law, as well as the SEC, where required. 

    Audit quality reviews. The global audit quality review program is the cornerstone to EY's effort to maintain and improve audit quality.

    External quality-assurance review. The Company audit practice and its registered statutory auditors are subject to annual inspection by the CSSF.

    Independence practices. EY's independence practices are designed to enable EY in Luxembourg and our people to comply with the independence standards applicable to specific engagements.

    Creating high-performing teams. EY is building a better working world for its people by recruiting, managing and retaining top talent and developing the highest-performing teams and outstanding leaders. In addition, EY teams have a legacy of over 20 years in providing sustainability, and environment, social and governance (ESG) services. This enables us to help protect and create value for all stakeholders and build a better working world. We call this value-led sustainability and it’s everybody’s business.

    EY Luxembourg Sustainability report 2023
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    Creating a better working world by example

    Our sustainability journey

    We can all make a difference, using our skills, experience and ideas

    Our purpose is to drive sustainability and social-economic impact for our employees and the communities we serve. As a corporation, EY Luxembourg aims to be a catalyst for change by creating long-term value-led sustainability as explained in the following sections.

    Our clients expect EY Luxembourg to provide high-quality audits, relevant advice, and sound technical and sector-specific expertise.

    In addition, due to the diversity of its clients and assignments and the auditing work that it performs, EY Luxembourg is an observer of the financial world and of the trends affecting it. With respect to sustainability matters, we are constantly working to develop our ESG services, with the main goal of helping our clients to deal with the main market trends, like investors’ needs, climate change and environmental factors, integration of the main ESG risks and opportunities in their business model and the latest regulatory developments.

    Read more

    Keeping in line with a main pillar of our NextWave strategy, and to maintain sustainable growth whilst build a better working world, we want to ensure that our employees’ careers progress.

    This entails not only attracting the right talent, but also empowering that talent to grow and achieve their development goals. Our employees’ skills and expertise form the foundation of our performance. Therefore, at EY Luxembourg, we seek to develop them in the best possible way, so that they evolve and find meaning in their everyday work.

    Read more

    EY is committed to building a better working world — one that creates sustainable and inclusive economic growth. We recognize that our responsibility to minimize the environmental impact of EY business operations extends to EY people and clients and to the wider communities in which we all live. 

    Moreover, EY is a proud participant in the United Nations Global Compact (UNGC), and our environmental strategy has been designed in alignment with the UNGC environmental principles.

    Read more