Wind farm landscape

EY UK LLP carbon footprint

See a full data summary of our  Scopes 1, 2 and 3 emission data (PDF).

This report covers the total emissions of Ernst & Young LLP ('EY UK'), which is a limited liability partnership incorporated under English Law with registered number OC300001 and is a member firm of Ernst & Young Global Limited. Registered office and principal place of business: 1 More London Place, London SE1 2AF.

Reporting period

The data in this report covers the period 02/07/22 to 30/06/23. Each emissions reporting year period corresponds with the EY financial reporting year. FY20 was the first year we reported our emissions using the EY UK legal entity financial scope. See 'Organisational boundary' section notes for further information.

Reasons for changes in emissions

In FY23, our total gross scope 1 + 2 + 3 emissions increased by approximately 78% compared to the previous year. The material influences on this performance were as follows:

  • Travel

    Pandemic-related restrictions continued some way into FY22, resulting in lower levels of business travel than would be expected under normal operating conditions. In FY23, most restrictions were lifted, so there was a gradual increase in levels of business travel activity. As a result, Scope 3 emissions from business travel rose considerably compared to the previous year, becoming more aligned to pre-pandemic levels.

    However, the EY global carbon ambition to be net zero by FY25 includes a science-based target to reduce absolute Scope 3 business travel emissions, and we remain focussed on implementing the key actions and strategic initiatives required to achieve this. In FY23, these included: integrating emissions targets (limits) into the performance scorecard; introducing function-level ‘carbon budgets’ and monthly performance reporting; mobilising a Net Zero Champions community to deliver our emissions reduction strategy; activating an internal 'Thanks for Nothing’ communications campaign; revising our Travel Policy to focus on more sustainable travel practices; promoting the use of new tools and technologies to help our people make more sustainable travel choices.

     

  • Energy

    In FY23, our location-based Scope 2 emissions increased by 11% compared to the previous year. This was due to a return to the office environment by many of our people, with the resulting increased occupancy creating additional power demand in our buildings (i.e., lighting, heating, powering of equipment and catering facilities, etc.). 

    Although total energy consumption rose marginally in FY23 (by 4%), previous investments in energy efficiency measures at the firm’s largest UK office (London Bridge) continue to deliver significant savings. Electricity consumption at this location has been further reduced by switching off all decorative perimeter lighting, with expected related savings of circa 47,000 kWh per year. The firm also continues to monitor energy consumption closely and remains focussed on running site engineering systems at maximum efficiency. To support this, the firm engaged a Building Management System specialist in FY23 to survey BMS controls, with recommendations for improvements due for evaluation in FY24.

    Past preparations for introducing zonal occupancy planning (i.e., consolidating working floors to minimise cooling and heating demands during periods of particularly low building occupancy) at London Bridge have been postponed. This is mainly due to the relocation of EY Global Services LLP employees to the site. The resulting increase in building occupation combined, with a general rise in the number of people returning to the workplace post-COVID-19, is likely to limit significant energy reduction opportunities in the future.

    Across the wider estate, the firm continues to monitor energy use via utility bill reviews and landlord pass-through charges. Where the firm’s offices relocated to new sites during FY23, the related energy systems and processes at those locations complied with the firm’s minimum technical standards for engineering services (which dictate energy efficiency standards and alignment with best practice). However, the scope for new energy saving initiatives in these locations is limited. During FY23, the UK Technical Services team conducted energy surveys at selected regional sites, but these did not identify any viable initiatives, as the central building plant is not owned or operated by the firm. Factors including short remaining lease periods and reduced business case viability also restrict potential investment opportunities

    It is expected that, as part of the firm’s compliance with the Energy Savings Opportunity Scheme (ESOS), any further energy saving initiatives requiring capital investment will be identified as part of the Phase 3 submission.

Quantification and reporting methodology

We have measured and reported our greenhouse gas emissions (GHG) using the following guidelines, protocols, conversion factors and GWPs:

i. HM Government, Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance, March 2019 (Updated Introduction and Chapters 1 and 2).

ii. WRI/WBSCD The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition), March 2004.

iii. WRI/WBSCD The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard, September 2011.

iv. UK Government Conversion Factors for Company Reporting (Year: 2023, Expiry: 10/06/2024, Version 1.1) - DESNZ / DEFRA WRI/WBSCD The Greenhouse Gas Protocol: Scope 2 Guidance, An amendment to the GHG Protocol Corporate Standard, 2015.

v.WRI / WBSCD The Greenhouse Gas Protocol: Scope 2 Guidance, An amendment to the GHG Protocol Corporate Standard, 2015.

vi. EcoAct Homeworking emissions Whitepaper 2020.

Whilst we have used the GHG Protocol Value Chain (Scope 3) Standard (see iii 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.

The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 implement the government’s policy on Streamlined Energy and Carbon Reporting (SECR). The EY organisation is required to comply with mandatory greenhouse gas reporting requirements under the SECR policy, ensuring that all relevant emissions sources required under such legislation have been included in this report and that our reporting is consistent with the relevant requirements.

Organisational boundary

We have used the financial control approach to identify the GHG emissions for which we have responsibility. The boundaries of our reported emissions are aligned to those of the financial disclosure of EY UK. This comprises all locations operating in the United Kingdom, Northern Ireland and Channel Islands (except where noted as an exclusion).

This alignment is effective as of FY20, instigated by the requirement to comply with The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, specifically pertaining to annual energy use, greenhouse gas emissions and related information. These Regulations implement the UK government’s policy on Streamlined Energy and Carbon Reporting (SECR), requiring large LLPs (as defined in sections 465 and 466 of the Companies Act 2006) to prepare and file energy and carbon information in accounts and reports via an ‘Energy and Carbon Report’. As such, emissions reporting is now aligned with that of our financial disclosures.

The emissions of Ernst & Young Global Services LLP are not included since it is a separate legal entity and does not contribute to the financial disclosures of EY UK. Data also does not include any activities of the Republic of Ireland firm for the same reasons.

Operational scopes

We have measured our Scopes 1, 2 and significant Scope 3 emissions.

Geographical breakdown

We report all locations outlined in the organisational boundary as a collective total.

Base year

In compliance with the regulatory requirements of the UK's Streamlined Energy and Carbon Reporting Guidelines, the scope of our emissions reporting is aligned to that of the UK firm's financial disclosure. We have set our baseline year as FY20 to provide a fixed base year from which we will measure both our absolute and normalised performance going forward.

We will recalculate all emissions from the base year to the reporting year in the event that either:

a. Changes occur which meet the recommended recalculation criteria outlined in Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance, March 2019', Chapter 1 - Step 5 - Action ii, or

b. Changes occur which equate to or exceed a 5% deviation (positive or negative) from previously calculated data

Targets

The EY organisation has a global carbon ambition to be net zero by the end of FY25. In response, the UK firm has developed its EY UK Net Zero Strategy, comprising six key actions critical to achieving our emissions reduction targets, with strategic initiatives to put each one into practice. For further information on these and other targets to address our wider environmental impacts, please refer to our latest UK Impact Report or learn more. 

Gavin Jordan (EY UK Chief Financial Officer) is the member of the UK LLP Board responsible for achieving these targets.

Intensity measurement

As a professional services firm, our products and services are intellectually based. Emissions arise as a result of our office locations, home working and from business travel activity. We use both a footprint emissions intensity metric (tCO2e per m2) and a headcount intensity metric (t CO2e per FTE) to normalise our data and provide meaningful performance indicators.

  • Scopes 1 and 2

    For our buildings, the material source of emissions (Scopes 1 and 2) is energy consumption, which is materially influenced by the number of people occupying our office space (via cooling/heating/ventilation demand, catering services, media displays and on-desk power supplies, etc.). Emissions intensity from energy consumption (tCO2e per m2) increased by 16% in FY23. Please refer to 'Reasons for changes in emissions' section above for explanatory factors.

  • Scope 3

    The lifting of pandemic-related travel restrictions in FY22 has resulted in a significant increase in business travel activity during FY23, with related emissions intensity (tCO2e per FTE) to also rise significantly. Please refer to 'Reasons for changes in emissions' section above for explanatory factors.

Data assurance

The data provided in this report was audited on a limited assurance basis by DNV Business Assurance USA. The verification process follows the International Standard on Assurance Engagements (ISAE) 3000 – ‘Assurance Engagements other than Audits and Reviews of Historical Financial Information’ (revised). It is also reviewed annually by the UK firm's financial auditors in compliance with the Streamlined Energy and Carbon Reporting (SECR) framework. 

In addition, the firm’s Climate Change and Sustainability Services team (who are not directly involved in preparing the data) also conduct a review of all Scopes 1, 2 and 3 emissions measured and reported by EY UK.  

Carbon offsets

The EY global organisation invests in a carbon offset portfolio, including multiple projects that offset or remove carbon through reforestation, regenerative agriculture, biochar and forest conservation. A number of these offsets (as shown in the GHG emissions data table (PDF)) have subsequently been allocated to the UK firm. The carbon offsets are allocated based on the proportion it contributed to the Ernst & Young Global Limited (‘EY Global’) carbon footprint. The EY UK reported contribution is derived based on the EY Global carbon footprint basis of preparation, which may differ from individual member firm’s carbon footprint scoping, allocation, and measurement methodologies.

For further details on the EY Global Carbon Ambition and carbon credits, please refer to page 63 of the EY Value Realized 2023 report (PDF) .

Woodland Carbon Units

The EY organisation did not buy or retire any Woodland Carbon Units during the reporting period.

Electricity

  • Electricity purchased for own use or consumption: 16,746 MWh
  • Renewable electricity generated from owned or controlled sources: 0 MWh
  • Electricity exported to the grid: 0 MWh

Heat generation

With the exception of biogas combustion for heating in our own offices, we have not generated any heat.

Green tariffs

The EY global carbon ambition to achieve net zero by the end of FY25 includes a target to procure 100% renewable energy.

  • Electricity

    From October 2007 to October 2021, the EY organisation purchased renewable tariff electricity direct from energy providers for UK offices where we controlled the supply and appropriate tariffs were available. From October 2021, the EY organisation commenced a 10-year Virtual Power Purchase Agreement (VPPA) which has enabled the construction of a new solar farm facility in Thornham, Norfolk. As part of this VPPA, the EY organisation receives environmental credits for 61% of the electricity generated by this facility from the site operator, in the form of OFGEM-backed Renewable Energy Guarantees of Origin (REGOs). The REGOs received by us are used to offset emissions from all non-renewable electricity consumed in UK sites, including that procured directly from energy providers and supplied via landlords.

    When reporting location-based emissions related to our electricity consumption, the appropriate years' DESNZ / DEFRA electricity grid average emissions factors have been applied to all electricity purchased, including those from renewable sources, non-renewable sources and those where the source is unknown, e.g., landlord-supplied electricity. We have accounted for the purchase of renewable electricity through our market-based reporting of emissions in line with the GHG Protocol's updated Scope 2 Guidance.

  • Gas

    In addition, since January 2018, we have purchased renewable biogas instead of fossil-fuel based natural gas. All biogas procured from suppliers is backed by recognised certification schemes (i.e., GGCS, RGGOs), which provide evidence that it is from guaranteed renewable sources.

Market-based scope 2 emissions reporting

Electricity-related emissions have been reported in line with previous years, providing both location-based and market-based calculations for Scope 2 emissions.

Using a market-based approach, our FY23 Scope 2 emissions total 0 (zero) tCO2e, compared with 3,468 tCO2e using the location-based approach. When calculating market-based emissions, we have taken the conservative approach by only allocating a zero-carbon emissions factor to REGO-backed electricity where we have documentary evidence of certification in place.

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