Sustainability report - EY France's economic, social and environmental contribution

 
Sustainability report - EY France's economic, social and environmental contribution
Sustainability
report
EY France’s economic,
social and environmental
contribution
2018
Sustainability report - EY France's economic, social and environmental contribution
Editorial
                                                                 EY is not only composed of assurance, legal,    This year, we have chosen to improve the
                                                                 advisory and transaction professionals and      ability of our partners and employees to
                                                                 employees who aspire to excellence, to          take action, because we are convinced that
                                                                 developing their potential and to making        it is their personal engagement that leads to
                                         Jean-Pierre Letartre    a difference.                                   change within the organisation: everything
                                         Chairman of EY France                                                   begins with them, as they have a key role
                                                                 At EY, we are aware that all of our             to play.
                                                                 employees and partners are also parents,
                                                                 friends, citizens, entrepreneurs, altruists     Because their aspirations are the driving
                                                                 and athletes. Beyond the role that they         force behind our collective performance,        3
                                                                 are fulfilling and the value of their day-to-   they are at the heart of their dialogues with
                                                                 day work, they are wondering about the          their mentors.

                                                                                                                                                                     SUSTAINABILITY REPORT | FY18
                                                                 meaning of their actions and their impact
                                                                 on society.                                     Because their ideas are our future, we
                                                                                                                 encourage them to share them.
                                                                 As an annual opportunity for a clear
                                                                 assessment of what we have achieved and         This is how we will be able to find
                                                                 what we have left to achieve, this report       sustainable solutions to the major
How can we create value and preserve                             details the progress we have made in this       challenges that we face and thereby
trust in a changing world?                                       collective search for meaning: developing       contribute to building a fairer and more
Find the responses of Mark Weinberger,                           services that support sustainable growth,       balanced world.
EY Global Chairman and CEO
                                                                 giving men and women back their role in the
                                                                 world of work, promoting employment and         We hope you enjoy reading this report.
                                                                 protecting the environment.
Sustainability report - EY France's economic, social and environmental contribution
The EY network is organised in geographical areas, the Americas, EMEIA, ASIA PAC,
                                                                                                                                                                               which are themselves composed of regions. EY France’s activities, including in the

     EY in 20181
                                                                                                                                                                               EMEIA area, are grouped together in two regions: FSO, which brings together all of the
                                                                                                                                                                               Financial Services activities in 18 European countries and, since 1 July 2017, WEM2.

                                                                                                                                                                                 EY WORLDWIDE                                            EY WEM2                                                         EY FRANCE

      OUR VALUES
                                                                                                                                                                                                 $34.8b                                                   €2.4   b                                                         €1084m
                                                                                      5911                                        1676*                                              +7.4%       revenue                                                  revenue
                                                                                                                                                                                                                                                                                                               +6.4%       revenue4

                                                                                 direct jobs                                      indirect jobs
                  TEAM                                              (EY France employees)                                         (resulting from EY France purchasing)
                  SPIRIT                                                                                                                                                                          261,559                                              14,153                                                             5911
                                                                                                           consumption                                                                            employees                                              employees                                             +4.4%        employees
                                                                                                                                                                                     +5.7%                                                  +4.9%
                                                                                                                  +
                                                                                                           1886*
                                                                                                       induced jobs                                                                                                                              17.5   %           71%                                            18%               67%
                                                                                                             in France                                                                                                                           female part-       Engagement                                     female            Engagement
                RESPECT
                                                                                                                                                                                                                                                 ners               index5                                         partners          index5

                                                                                                                                                                                                                                                                                                                                                     5
                                                                                                                                                                                                                                                            8.1/10                                                          21%
                                                                                                                                                                                                                                                                                                                            of employees in

                                                                                                                                                                                                                                                                                                                                                         SUSTAINABILITY REPORT | FY18
                                                                                                                                                                                                                                                            client
                                                                                                                                                                                                                                                            satisfaction                                                    the regions
                                                                                                            9473                                                                                    152
               INTEGRITY                                                                             jobs supported                                                                                countries                                                 49,0003
                                                                                         in France over the 2018 fiscal year1                                                                                                                                tonnes of CO2                                                  16     offices
                                                                                                                                                                                                                                                             equivalent

                                                                                                                                                                                 OUR CLIENTS
                                                                                                                                                                                                                                                                                                       With a rating of 73/100
EY FRANCE ACQUISITIONS                                                                              BREAKDOWN OF VALUE CREATED IN FRANCE
                                                                                                                                                                                                                                                                                                       given by EcoVadis, EY
In August 2017, EY accelerated its development in strategy                                          (as share of revenue)
                                                                                                                                                                                                200,000+                                              MAJOR
consultancy thanks to the integration of the former teams of
                                                                                                                               Taxes and duties                                                 clients worldwide                                     INTERNATIONAL                                    France features among the
OC&C France.
                                                                                                                                                                                                                                                      GROUPS                                           1% of companies with the
WORLDWIDE                                                                                                                              3%
EY is a signatory of the United Nations Global Compact
                                                                                                                                                                                                                                                      (French and non-French)                          most efficient CSR policy,
and regularly reports on the application of the principles of                                              Suppliers         36%                                                                NOT-FOR-PROFIT                                        ENTREPRENEURS                                    including companies of
that Compact.                                                                                                                                     61%         Payroll costs
                                                                                                                                                                                                AND PUBLIC                                                                                             all sizes.
                                                                                                                                                                                                SECTOR
                                                                                                                                                                                 2
                                                                                                                                                                                     Western Europe & Maghreb
                                                                                                                                                                                 3
                                                                                                                                                                                     Estimate made on the basis of the full-time equivalents, based on emissions from France and the Netherlands, which represent 72.7% of the FTEs in the region
                                                                                                                                                                                 4
                                                                                                                                                                                     Revenue for France, including FSO and activities from subsidiaries based outside of France (Algeria and Monaco)
*
    This figure has been estimated based on the data calculated last year.                                                                                                      5
                                                                                                                                                                                      t EY, we measure the engagement index by assessing 4 elements:
                                                                                                                                                                                     A
1
    Unless otherwise specified, all of the figures published relate to the 2018 fiscal year (referred to as FY18), which covers the period from 1 July 2017 to 30 June 2018         pride in being part of EY, recommendation of the company, satisfaction and attachment to the company
Sustainability report - EY France's economic, social and environmental contribution
Contents
                                                                                                       Description of the strategic challenges and
                                02
This report was designed to
be viewed online. For optimal                                                                          perspectives
                                     Editorial

                                                                                                  26
readability, access it at
                                                                                                       Challenge 1:
y.com/fr/rse
                                                                                                       Developing services that support sustainable growth

                                04   EY in 2018
                                                                                                       • Service quality and client satisfaction
                                                                                                       • Observing and innovating for transformation
                                                                                                       • Data protection and information security

                                EY France
                                                                                                  38   Challenge 2:

                                08   Our service lines            10   Value creation
                                                                       at EY
                                                                                                       Possessing expertise that enables us to complete our
                                                                                                       assignments in a flexible and high-quality manner
                                                                                                       • Attractiveness of the employer brand
                                12
                                                                                                                                                              7
                                     Our ecosystem                                                     • Skills development
                                                                                                       • Talent retention

                                                                                                                                                                  SUSTAINABILITY REPORT | FY18
                                Risks, challenges and opportunities                               46   Challenge 3:
                                                                                                       Placing ever greater emphasis on our people
                                                                                                       • The engagement of our employees
                                16   Three trends that have a
                                     particularly marked effect   18   Business model:
                                                                       risks and challenges
                                                                                                       • Health, safety and wellbeing at work
                                                                                                       • Diversity and Inclusion
                                     on our service lines

                                Governance                                                        56   Challenge 4:
                                                                                                       Being a corporate citizen

                                20                                22
                                     Governance and                    Mechanisms to ensure            • EY works to promote transfers
                                                                                                       • Reducing our environmental footprint
                                     shareholdings                     ethics, independence and
                                                                       transparency
                                                                                                  62   EY and its Sustainable Development Goals
                                Materiality analysis

                                24   Our key challenges                                           64   Note on methodology
Sustainability report - EY France's economic, social and environmental contribution
BREAKDOWN OF EMPLOYEES BY SERVICE LINE                                    BREAKDOWN OF REVENUE BY SERVICE LINE2
                  EY FRANCE                                                                                                           [G4-LA12]*

                                                                                                                                         Internal functions                                                                      Transactions

Our service lines
                                                                                                                                                                 13%                                                                                11%
                                                                                                                                        Transactions
                                                                                                                                                            7%                              Audit1 and                  Tax and Law
                                                                                                                                                                                  42%       assurance                                      17%                                   Audit1 and
                                                                                                                                                                                                                                                                      49%        assurance
                                                                                                                                                          12%
                                                                                                                                          Tax and Law
                                                                                                                                                                                                                                              23%
                                                                                                                                                                      26%
                                                                                                                                                                                                                              Advisory1

                                                                                                                                                                 Advisory1                                                                                * Global Reporting Initiative reference

OUR APPROACH                                                 EY SERVICE LINES

EY is a global leader in assurance, tax,
transaction and advisory services.
                                                                                                                                                                                                                                                 INTERNAL
The insights and quality services we deliver help build               ASSURANCE                             ADVISORY1                          TAX & LAW                          TRANSACTIONS
                                                                                                                                                                                                                                                FUNCTIONS
trust and confidence in the capital markets and in                                                                                                                                                                                                                                                  9
economies the world over. Coordination of our four
service lines represents a key challenge in meeting the

                                                                                                                                                                                                                                                                                                        SUSTAINABILITY REPORT | FY18
needs of our clients, requiring us to combine a wide
range of complementary skills.

In order to promote cross-functionality, an Executive                                                                                                                                        +7.5%
                                                                               +4.1%                                  +11%                             +6.8%
Committee ensures all activities are coordinated,
facilitating the adoption of a market-based approach           2483 €528m                2
                                                                                                      1537 €253m                2         709        €188m        2
                                                                                                                                                                                414 €115m2                                                          768
that transcends the simple approach based on individual      • Helping our clients meet           Helping organisations to:           • Generating value in a               Helping businesses to:
service lines.                                                 requirements concerning the                                              sustainable and responsible
                                                                                                                                                                                                                         Our internal functions consist of the following
                                                               transparency and reliability of    • Get ahead in a constantly           way by virtue of the design         • Optimise and secure the sale or            departments: Knowledge, Markets & Business
This approach is essential, for two reasons. Firstly, it       financial and extra-financial        changing environment                and implementation                    acquisition process                        Development, Marketing & Communications,
                                                               information                        • Understand and use all digital      of innovative solutions             • Assess tangible and intangible             Risk & Quality, Human Resources, Purchasing,
allows for the creation of multi-disciplinary services
                                                                                                    opportunities                       concerning law and taxation           assets and validate strategic              Finance, Real Estate, Information Technology,
to meet our clients’ needs and, secondly, it makes it        • Validating the quality and
                                                                                                                                                                              decisions by creating financial            Legal and Administrative Support.
possible to monitor the correct application of legislation     honesty of quantified              • Transform the organisation to     • Defending our clients’
                                                               information for third-party use      improve its performance             interests in an increasingly          models
and EY’s internal rules.                                                                                                                                                                                                 They contribute to the smooth running and
                                                             • Guiding and supporting our         • Manage risks to create value        complex world of tax and law        • Adapt to increased competition             development of our business activity (support
                                                               clients in their accountancy-                                          • Identifying solutions to enable       and more complex and tighter
The significant number of service lines in which we                                               EY relies on a unique combination                                                                                      in responding to calls for bids and in carrying
                                                               related issues (standards,                                               our clients to achieve their          procedures as regards external
                                                                                                  of sector-specific expertise and                                                                                       out our assignments), extending the EY brand
operate and of skills possessed by the firm means              processes and operations)                                                operating targets whilst              growth
                                                                                                  skills to overcome the challenges                                                                                      influence, the information issued to our clients
that it is necessary to implement tools to identify          • Assessing anti-fraud and           facing our clients.                   minimising their risks              • Ensure the post-acquisition                (conferences, technical breakfast meetings) and
the employees possessing specific skills and to share          anti-corruption systems,           The position of EY and EY           View the ranking of Law Firms           operational success of
                                                                                                                                                                                                                         the sharing of knowledge.
knowledge within the company.                                  investigating allegations and                                          created by Les Échos                    transactions
                                                                                                  Parthénon is described in the
                                                               analysing the data                 Capital Awards – Best consultancy                                         See EY’s competition analysis in             Of these 768 employees, around a hundred work
                                                             Our main competitors are described   firm 2019                                                                 the League Tables!                           for EY at European or World level.
                                                             by The accounting profession

                                                                                                                                                                                                                1
                                                                                                                                                                                                                     xcl. transactions.
                                                                                                                                                                                                                    E
                                                                                                                                                                                                                2
                                                                                                                                                                                                                    Revenue for France, including FSO, excluding Monaco and Algeria
Sustainability report - EY France's economic, social and environmental contribution
 VISION 2020
                  EY FRANCE                                                                      Vision 2020 represents EY’s global
                                                                                                 aim and includes a quantitative
                                                                                                 objective (global revenue of €50

Value creation                                                                                                                                                                                                                                                      +
                                                                                                 billion in 2020) as well as qualitative   OUR SERVICE                 ASSURANCE       ADVISORY         TAX & LAW   TRANSACTIONS     For details on our service
                                                                                                 objectives (for example: being the        LINES                                                                                     lines, please see page 8
                                                                                                 brand that sets the benchmark and

at EY
                                                                                                 being the most attractive company
                                                                                                 for each of our service lines).

             Financial capital                                                                               Natural                                    Intellectual                              Human capital                           Corporate
                                                      Manufacturing
                                                         capital                                            resources                                      capital                                                                         capital

 OUR RESOURCES:
                                                                                                                                                                                                                                                                    11
 • The capital contributed by the              • Our 16 offices (leased)          • In particular, EY’s business activities use             The capacity to:                       • make EY stand out from                 • Loyalty to the company and
                                                                                    a great deal of electricity (registered                                                          its competitors, to provide              respect for its values
  351 partners who work within                 • Our intangible assets, such as                                                             • create sustainable high-quality

                                                                                                                                                                                                                                                                         SUSTAINABILITY REPORT | FY18
                                                                                    office management processes)                              bonds with our clients;                its clients with ever more             • Diversity and Inclusion
  the company                                    software, macros, algorithms
                                                                                  • The majority of greenhouse gas                                                                   relevant responses.
 • The income generated by our                   and collaborative platforms                                                                • be innovative in relation to our                                              • Sharing our knowledge and skills
                                                 that we use or develop,            emissions are generated by our                            processes, the assignments that we • Talents, wellbeing and                     beyond our client assignments
   business activities
                                                 as needed                          employees’ air travel (15,407 tonnes of                   carry out and the way in which we    engagement of our employees                (patronage, publication of studies)
                                                                                    CO2 equivalent)                                           carry them out;                    • Training and skills development
                                               • Our IT tools                                                                                                                                                               • Acting in support of equal
                                                                                                                                                                                                                              opportunities

 THE VALUE WE CREATE:
                                               • Our business activity has        •    110 employees in our Sustainable                     • The EY Wavespace Paris Lab           •   5911 employees                       •   57 studies
 • Revenue                                       grown by almost 40% since             Transformation and Performance team                    is working in unison within a            (permanent staff)                    • In 2018, our employees
                                                 2013, validating our strategic                                                               network of 18 Labs distributed
                     Taxes and duties
                                                 choices
                                                                                       in FY18
                                                                                                                                              in the various EY offices            • Average leaving rate: 23%/year           dedicated 16,654 hours to
                                                                                  • Offsetting the emissions from the                                                                                                         sharing their skills for solidarity
                                                                                                                                              throughout the globe
                                               • Average ASQ score:                                                                                                                • Engagement index: 67%
                                                                1
Suppliers           3%                                                              partners meeting in Marrakesh                                                                                                             projects
            36%
                                                8.11/10                                                                                    • Almost 10 days of training per
                  Revenue 61 %                                                                                                                employee per year
                                                                                                                                            • A very high degree of
                               Payroll costs                                                                                                  accountability for employees
                                                                                  1
                                                                                      Assessment of Service Quality, see page 30             following their initial years of
                                                                                                                                              experience
Sustainability report - EY France's economic, social and environmental contribution
EY FRANCE                                           4. Society
                                                          Playing a role in the region’s vitality by

Our ecosystem
                                                          contributing to public debate and education.

                                                                     5. Sub-/Co-
                                                                     contractors
   3. Employees                                                      Innovating, co-building.

   Developing leaders, continually improving our
   employees’ skills and promoting an open and flexible
   working environment.

                                                                            6. Competitors
                                                                            Creating healthy
                                                                            competition.                   13

   2. International organisations

                                                                                                                SUSTAINABILITY REPORT | FY18
   and public authorities                                                     7. Suppliers
   Maintaining open, transparent relations with the                           Promoting accountability
   regulators and participating in professional bodies.                       within our supply chain.

                                                              8. EY Global - EY
                                                              EMEIA
                                                              Providing the same excellence all over the
   1. Clients                                                 world. Ensuring that our clients benefit
                                                              from an integrated, borderless, cross-
   Helping decision‑makers to understand and to               functional network.
   act, to create a trusting environment and to
   contribute to sustainable growth.

                                                              +
                                                                     See the next page for further
                                                                     information.
Sustainability report - EY France's economic, social and environmental contribution
EY FRANCE

Our ecosystem
Dialogue with our
stakeholders                                                  CLIENTS
                                                                                                             EY’s ambition is to enable organisations to           This approach is at the heart of our business and
                                                                        Helping decision‑makers to           innovate and transform. Our role as observer          the service that we deliver to our clients to help
                                                                        understand and to act, to            of the financial world enables us, through the        them to be more efficient, to manage risks and to
                                                                        create a trusting environment        diversity of our assignments and our clients, to      stimulate their growth in a sustainable way.
                                                                        and to contribute to                 be on the lookout for underlying trends that are      For nearly 10 years, EY has been developing
                                                                        sustainable growth.                  transforming society and to formulate questions       a formal Assessment of Service Quality (ASQ)
It is of vital importance that EY constantly listens to its                                                  that will ultimately contribute to developing our     process, which is now complemented by
stakeholders in France — clients, employees, suppliers,                                                      clients’ models and how they are used and will        Expectations of Service Quality (see page 30).
public authorities, regulators, students, associations,                                                      open the door to new solutions.                       EY is ISO 9001 certified for all its service lines.
etc. — in order to understand their expectations, their
perception of our business and the route they want to see     INTERNATIONAL ORGANISATIONS AND PUBLIC AUTHORITIES
us take. This interaction enables EY to identify the main
risks and opportunities, adapt its approach and improve its
performance.                                                                                                                                                                                                             15
                                                                        Maintaining open and                 Our partners and employees can be asked to            EY thus works with the National Society of
                                                                        transparent relations with the       contribute to standard setting and to give thought    Auditors (Compagnie nationale des commissaries
It is by listening in this way that EY means to create,

                                                                                                                                                                                                                              SUSTAINABILITY REPORT | FY18
                                                                        regulators and participating in      to bills and laws.                                    aux comptes) and its Department for Public
in partnership with its stakeholders, the conditions for
                                                                        professional bodies.                                                                       Interest Companies (Département des entités
responsible economic development.
                                                                                                                                                                   d’intérêt public – DEIP), in constructive dialogue
                                                                                                                                                                   with the auditing oversight board (Haut Conseil du
                                                                                                                                                                   Commissariat aux Comptes – H3C).
                                                              EMPLOYEES

                                                                          Developing leaders, continually    The assessment culture, which is very strong          Annual surveys help to assess our employees’
                                                                          improving our employees’ skills    within EY, nurtures dialogue between our              level of engagement. Lastly, when one of our
                                                                          and promoting an open and          employees and their mentors, with the latter          employees resigns, EY records their reasons for
                                                                          flexible working environment.      helping the former to obtain a short- and medium-     leaving in order to understand whether they are
                                                                                                             term view of their careers. The introduction of       company-related.
                                                                                                             an upward feedback process also enables our
                                                                                                             employees to assess their partners and managers
                                                                                                             in accordance with five criteria.
                                                              SOCIETY

                                                                        Playing a role in the region’s       EY is involved in a number of networks and think      The company is also involved in the publication of
                                                                        vitality by contributing to public   tanks and makes intellectual contributions to         studies and analyses.
                                                                        debate and education.                public debate related to its sector-specific skills   In addition, EY partners and employees conduct
                                                                                                             and knowledge.                                        numerous courses for students in schools
                                                                                                                                                                   and universities. They are also involved with
                                                                                                                                                                   college students.
Sustainability report - EY France's economic, social and environmental contribution
RISKS, CHALLENGES AND OPPORTUNITIES                                                                       2. The digitalisation of                                    3. A requirement of
                                                                                                                              the economy and the                                         sustainability for our
                                                                                                                              development of data                                         clients
Three trends                                                                                                                  A. ANTICIPATING DISRUPTIONS
                                                                                                                                                                                          The requirement of sustainability is a major challenge at
                                                                                                                                                                                          the beginning of the 21st century. The climate change
                                                                                                                                                                                          emergency is causing us to review the methods we use

that have a particularly marked
                                                                                                                              Digital growth gives rise to disruptions that can affect    for production and the creation of added value, which
                                                                                                                              our business model and that of our clients.                 numerous experts are calling for, in particular those

effect on our service lines
                                                                                                                              • At EY, digitalisation and “Big Data” require the          from the Intergovernmental Panel on Climate Change, in
                                                                                                                                deployment of tools that make it possible to identify     The Special Report on Global Warming of 1.5°C.
                                                                                                                                and closely analyse a large body of data. Accordingly,
                                                                                                                                for example, we are investigating how Blockchain          Our role is to support our clients in answering these
                                                                                                                                technology may be used in our service lines, so as to     three questions:
                                                                                                                                provide increased value for our clients.                  • How can they reduce their environmental impact
1. A proliferation of regulatory changes                                                                                      • Our clients’ degree of maturity in relation to digital
                                                                                                                                issues is variable. It is therefore essential that
                                                                                                                                                                                            by setting targets and creating an action plan that
                                                                                                                                                                                            are reconcilable with the dwindling of resources and
                                                                                                                                we support them in anticipating potential digital           climate change?
Regulatory monitoring is imperative in order to provide our     C. GENERAL DATA PROTECTION REGULATION                           disruptions to their business models.                     • How can production be adapted to the dwindling of
clients with guidance on topics such as new technologies,                                                                                                                                   resources and climate change (changing processes,
the protection of personal data and combating corruption.       The European Union’s General Data Protection Regulation       B. ENSURING DATA SECURITY                                     locations, raw material usage, etc.)?
Regulatory changes also impact our business activity:           (GDPR), which entered into force in May 2018, requires                                                                                                                                17
                                                                                                                                                                                          • How can they develop new offerings or new products
                                                                the deployment of compliance procedures and tools and         The digitalisation of the economy makes it necessary          that meet the requirement of sustainability?

                                                                                                                                                                                                                                                           SUSTAINABILITY REPORT | FY18
A. RESPONSIBLE FISCAL PRACTICES                                 consideration of digital security. Accordingly, EY supports   to anticipate cyber-attacks, for both EY and its clients,
                                                                its clients through the reorganisation required to protect    in order to prevent the leaking of strategic information    EY France has been providing companies, public
With regard to fiscal matters, the rapid changing of            their reputation and to ensure that they avoid paying         and personal data (clients and employees). Further          authorities and international institutions with support
regulations means we must offer our clients legally sound       significant fines in the case of non-compliance with their    information can be found on page 36.                        on these issues since 1995. A team of around 100
solutions and we must examine the responsible nature of         obligations. EY is the benchmark in terms of guaranteeing                                                                 experts contributes to public debate both in France
those solutions.                                                the integrity of personal data.                                                                                           and internationally and carries out assignments in
                                                                                                                              C. POSSESSING APPROPRIATE SKILLS
                                                                                                                                                                                          companies to support them in their transition towards a
                                                                                                                                                                                          more sustainable economic model. Our consultants are
B. “SAPIN II” LAW                                                                                                             Digitalisation means we must recruit the key skills that
                                                                                                                                                                                          capable of providing assistance with issues regarding
                                                                                                                              we will need going forward. Similarly, it is essential to
                                                                                                                                                                                          extra-financial reporting, energy performance, carbon
In order to give our clients the closest possible support at                   For further information,                       give our employees continual training to respond to the
                                                                                                                                                                                          trajectory, circular economy, sustainability of brands
all stages of the regulatory system to prevent and detect                                                                     new opportunities presented by digitalisation.
                                                                               see our General Data                                                                                       and product portfolios, risks in the supply chain
corruption risks, EY has developed a range of multi-                           Protection Regulation                                                                                      (duty of care), or even in relation to gauging socio-
disciplinary services, including specialists in organisation,                                                                 EY currently has around 1000 employees working in
                                                                               publication.                                                                                               economic impacts.
compliance and law. The general complementary nature                                                                          domains that did not exist three years ago.
of our service lines is EY’s strength when it comes to                                                                                                                                    At EY global network level, the French teams can also
supporting our clients in taking account of changes                                                                                                                                       rely on a network of over 700 specialised employees.
in regulations.

                                                                        Key topics:                                           Key topics:                                                Key topics:
                                                                       • Innovation and sustainability of the EY model        • Innovation and sustainability of the EY model             • Supporting our clients in reducing their environmental
                                                                       • Ethics and independence                              • Ethics and independence                                     footprint
                                                                       • Client data protection                               • Client data protection
Sustainability report - EY France's economic, social and environmental contribution
RISKS, CHALLENGES AND OPPORTUNITIES

Business model: risks
and challenges

Risks and challenges associated with our assignments                                                                                  Risks and cross-functional challenges                                                            19

                                                                                                                                                                                                                                            SUSTAINABILITY REPORT | FY18
 PROCESS OF                    SERVICE                     PERFORMANCE OF                ANALYSING THE               INNOVATION, SERVICE OFFERING                             HUMAN RESOURCES
 ACCEPTING CLIENTS             PROPOSITION                 THE ASSIGNMENT                QUALITY OF OUR
 AND ASSIGNMENTS                                                                         ASSIGNMENTS                 • Innovating in order to adapt to societal and           • Possessing skills that enable us to meet the current
                               • Meeting our clients’      • Preserving the                                            digitalisation issues, both internally and vis-à-vis     and future needs of our clients
 • Analysing the risks           requirements and            confidentiality of data     • Adapting the                our clients                                            • Allowing the development and transfer of
   before committing to a        doing so in a spirit of   • Ensuring that the             assignment quality        • Anticipating the needs of the market in order            skills and the business culture, which is a
   client:                       constructive criticism      quality of the work is        review to the               to develop services that contribute towards the          differentiating factor
                               • Building a team             in line with the clients’     assignments’ nature and     growth of our clients                                  • Having solid succession plans
  –– Reputation of the
                                 with skills that are        requirements and              risk level
     client                                                                                                          • Promoting cross-functionality across EY’s service
                                 appropriate for the         those of the regulators     • Questioning the client      lines in France and throughout the world
  –– Independence
                                 challenges presented      • Building on our               representatives who
  –– Conflicts of interest       by the assignment                                         have a concrete vision
                                                             experience in order
  –– Corruption                • Proposing adequate          to ensure a high level        for EY’s assignments      ETHICS AND THE CONDUCT OF BUSINESS                       DATA SECURITY
  –– Money laundering            scaling for the             of service                  • Monitoring progress in
                                 assignment and                                            areas for improvement     • Preventing any conflict of interest                    • Ensuring the confidentiality of the data of our
  –– Nature and place of                                                                                                                                                        current and potential clients, on both a technical
                                 reasonable fees                                           identified                • Prioritising ethics and the independence of each
     performance of the                                                                                                                                                         and human level
                                                                                                                       partner and employee
     assignment
                                                                                                                     • Ensuring compliance with laws and regulations          • Ensuring the protection of personal data
Young Leadership Board
                               GOVERNANCE
                                                                                                                                                                                                             In November 2018, EY created a Young
                                                                                                                                                                                                             Leadership Board at regional level. This board
                                                                                                                                                                                                             comprises 13 non-partner employees from

Governance and                                                                                                                                                                                               Belgium, France and the Netherlands. Its role is
                                                                                                                                                                                                             to advise the management team and it will work
                                                                                                                                                                                                             on the following, in particular:

shareholdings
                                                                                                                                                                                                             • social responsibility;
                                                                                                                                                                                                             • the engagement of our employees;
                                                                                                                                                                                                             • diversity and inclusion;
                                                                                                                                                                                                             • EY’s attractiveness.

EY France as part of a                                                               Organisation of governance                                   The main subjects discussed with the Regional
                                                                                                                                                  Partners’ Forum include the appointment of the
                                                                                                                                                                                                           New partners are appointed every year through
                                                                                                                                                                                                           a rigorous co-opting process, taking into account
global network                                                                       All the business activities of the WEM1 region are
                                                                                                                                                  Regional Managing Partner, the preparation of the
                                                                                                                                                  budget, approval of the accounts, the appointment
                                                                                                                                                                                                           numerous criteria, including a business case, which
                                                                                                                                                                                                           should demonstrate their professional skills, their
                                                                                     coordinated through a committee currently chaired by         of partners, their remuneration, the main investment     ability to bring in revenue on a recurring basis and
The EY network is organised in geographical areas,                                   Jean-Pierre Letartre. It is comprised of the heads of EY’s   projects, risk management and, generally speaking, all   their management skills.
the Americas, EMEIA, ASIA PAC, which are themselves                                  main service lines, managers of the company’s main           subjects relating to the cohesion of the partnership.
composed of regions. EY France’s activities, including in                            functions, managers of the countries of the region and                                                                During FY18, in France, 14 partners were co-opted
the EMEIA area, are grouped together in two regions:                                 market segment managers.                                     Jean-Pierre Letartre, Regional Managing Partner          from within our teams and there were 10 direct entry      21
WEM, composed of 17 countries; and FSO, which brings                                                                                              Western Europe & Maghreb, announced his                  partners.
together all of the Financial Services activities in 18

                                                                                                                                                                                                                                                                          SUSTAINABILITY REPORT | FY18
                                                                                     In France, the management committee, also referred to as     replacement, which will take effect from 1 July 2019.
European countries.                                                                  the Market Activation Committee, meets once a month.         He will be replaced by Eric Fourel, currently Managing

                                                                                     Jean-Pierre Letartre and the main members of the
                                                                                                                                                  Partner of EY Société d’Avocats, in the position of      Strategy Committee
                                                                                                                                                  Regional Managing Partner France, and by Alain
                                                                                     management committee regularly meet with the elected         Perroux who is currently in charge of our audit          EY has established a strategy committee comprised of
                                                                                     representatives of the partners in an advisory committee     activities and who will assume the position of WEM       five individuals from public, intellectual and economic
                                                                                     – the Regional Partners’ Forum – co-chaired by Gilles        Managing Partner. Access the joint interview             spheres.
                                                                                     Puissochet and Herman de Ruijter.                            announcing this replacement online.
                                                                                                                                                                                                           The consultants use their expertise and independence
                                                                                                                                                                                                           to provide the Chairman of EY France and its
                                                                                                                                                  Operating in partnership                                 management with their analyses and external view of
                                                                                                                                                                                                           the political, economic and social changes in France
ORGANISATIONAL                                                  Laurent Miannay                                                                   The capital owned by the EY France entities is held by   and around the world.
                                                               Chief Operating Officer                                                            the partners who work there.
DIAGRAM OF THE                                                                                                              Éric Mouchous
                                                                   Nicole Evers                                                Advisory           As of 30 June 2018, EY France had 351 partners.          In the course of the 2018 fiscal year, this strategy
WEM REGION1, AS AT                                                 General Counsel                                                                                                                         committee was composed of Roland Cayrol (Political
                                                                                                                            Alain Perroux
30 JUNE 2018                                                       Bea Haring                 Jean-Pierre Letartre             Assurance          The objective of the EY partnership is to develop        Scientist), Elizabeth Ducottet (CEO of Thuasne),
                                                                       Talent                  WEM Managing Partner                               the shared business capital, which favours long-         Erik Orsenna (writer and member of the Académie
                                                                                                                              Marc Guns
                                                                                                                                 TAS              term management of relations with the various            Française), Ludovic Subran (Chief Economist at
                                                                  Claire Nourry
                                                                        Risk                                                                      stakeholders. Partners are assessed in accordance        Euler Hermes) and Gilles Babinet (Chairman of
                                                                                                                           Jeroen Davidson
1
     Region composed of the EY entities located in Belgium,                                                                      Tax
                                                                                                                                                  with criteria relating to quality, team management       Captain Dash).
      France, Luxembourg, the Netherlands and the Maghreb           Éric Fourel                                                                   and client relations.
                                                                       Market
GOVERNANCE
                                                                                                                                                                                                                  1
                                                                                                                                                                                                                  Global code of conduct

Mechanisms to ensure
                                                                                                                                                                                                                  signed by our CEO and
                                                                                                                                                                                                                  all our partners and
                                                                                                                                                                                                                  employees

ethics, independence and
transparency
Compliance with ethical standards is essential if
                                                        ANTI-CORRUPTION                                                   MANAGEMENT OF CONFLICTS                                             INDEPENDENCE
we want to preserve our reputation, protect our                                                                           OF INTEREST
partners and employees and comply with the rules        EY has implemented a complete system in order to prevent                                                                              Independence represents a fundamental challenge for
and regulations of the regulatory authorities. This     corruption. EY’s global anti-corruption policy defines            EY evaluates the risk of a conflict of interest before              our business activities. By providing an independent
compliance is based on global policies, such as that    the rules to adhere to and provides our employees and             each new assignment. Only after having followed                     guarantee of the reliability, relevance and honesty of
relating to client acceptance and continuance, which    partners with instructions on how to respond to unlawful          a rigorous procedure do we decide to accept a new                   financial information, EY helps create the conditions
defines the criteria according to which the members     or unethical activity. Online training enables our employees      client, continue with a relationship or provide a new               for confidence in the economy, which is a key factor
of EY may agree to serve a new client, carry out an     to better understand potential corruption situations and          service that does not endanger our independence or                  in market stability and the sustainability of business
assignment or continue to serve an existing client. A   the rules to follow in order to fight corruption. Close           expose us to a conflict of interest or any other breach             development. Confidence is the result of constant,     23
package of training and communication allows us to      monitoring has been carried out, making it possible to            of the applicable rules and laws. If we consider the                rigorous and transparent work.
make all our employees aware of the importance of       significantly increase the percentage of trained employees.       risks to be excessive, we do not hesitate to refuse the

                                                                                                                                                                                                                                                          SUSTAINABILITY REPORT | FY18
complying with these rules.                             Senior management also communicates regularly about               client or assignment, or to put in place the solutions              For EY, independence is essential. It is what
                                                        the importance of ethics and the values established in our        for preventing a conflict of interest (a “Chinese Wall”,            guarantees the quality of our audits. This requirement
                                                        Global Code of Conduct.                                           for example).                                                       is also fundamental for our other service lines, as it
   VALUES AND CODE OF CONDUCT                         Our client and assignment acceptance process includes                                                                                 ensures the objectivity of our advice and consultancy,
                                                        the risk of corruption in the assessment of clients and           EY’s global policy on conflicts of interest and the
                                                                                                                                                                                              in the interests of our clients and all our stakeholders.
 EY is based on shared professional values rooted in    any third parties that may be involved in assignments,            associated implementation guide are updated
 the following conduct and practices:                   where applicable.                                                 regularly to take into account the increasing
                                                                                                                                                                                              In order to guarantee our independence, EY France
                                                                                                                          complexity of our assignments and of the
 • Demonstrating integrity, mutual respect and team                                                                                                                                           performs a set of checks that enable us to verify
                                                        The various measures set out in the Sapin II Law have been        relationships established by the audited entities. This
   spirit;                                                                                                                                                                                    that we are observing all the rules defined by the
                                                        implemented, in particular:                                       policy also complies with the most recent standards
 • Sharing the leaders’ energy, enthusiasm and                                                                                                                                                Code of Ethics of the International Ethics Standards
                                                                                                                          issued by the International Ethics Standards Board for
   courage;                                             • The creation of corruption risk mapping;                                                                                            Board for Accountants and by EY on a global level, as
                                                                                                                          Accountants and takes account of the code of ethics
 • Knowing how to build fair and lasting relations.                                                                                                                                           well as by the codes of ethics for statutory auditors.
                                                        • The deployment of an alert system;                              of the legal profession.
                                                                                                                                                                                              All employees must also confirm that they satisfy
 These values are part of a Code of Conduct signed      • The update of our anti-corruption charter, with the           MANAGEMENT OF ETHICAL RISKS [G4-S04]                                  the requirements of EY’s policies with regard to
 by the CEO of EY. Its five chapters provide each         addition of a list of prohibited behaviours;                                                                                        independence.
                                                                                                                        Percentage of employees trained in procedures to combat
 of us with the essential principles for guiding        • The deployment of anti-corruption training for employees      fraud and corruption (Anti-Bribery module)
 our decisions. When they join EY, and then every         most particularly at risk;
 year, our employees and partners make a written        • The strengthening of procedures and checks prior
 commitment to comply with this code.                     to concluding agreements with third parties;
                                                        • The strengthening of accounts audits.                              76%                         75%                           97%
 The aim of the procedures for monitoring compliance
 with the code and the new communications is to
 create a climate that is conducive to responsible                                                                           FY16                        FY17                          FY18
 conduct on the part of our professionals.
                                                                                                                       Scope: permanent workforce (permanent + fixed term contracts)
MATERIALITY ANALYSIS

Materiality analysis                                                                                                                           14 SUBJECTS THAT CONSTITUTE FOUR CHALLENGES FOR EY

                                                                                                                                                Developing services that support sustainable growth                                      Low

Our key challenges                                                                                                                               ossessing expertise that enables us to complete our assignments in a
                                                                                                                                                P
                                                                                                                                                flexible and high-quality manner
                                                                                                                                                                                                                                         Moderate
                                                                                                                                                                                                                                         High
                                                                                                                                                Placing ever greater emphasis on our people
                                                                                                                                                Being a corporate citizen

                                                                                                                                                                                                         Ethics and independence
                                                                                                                                                  Contribution
                                                                                                                                                                                                      Innovation and sustainability of
       Materiality analysis consists of identifying the various issues related to our economic, social and                                        to local
                                                                                                                                                                                                                       the EY model
                                                                                                                                                  economy
       societal responsibility and putting them into hierarchical order. The matrix to the right represents
                                                                                                                                                                              Quality of life             Client data protection
       the level of “materiality” of issues based on their importance (i) in the eyes of our stakeholders
                                                                                                                                                                              at work
       (vertical axis) (ii) and their potential impact for EY (horizontal axis).                                                                                                                               Client satisfaction

       This analysis, created by a working group in          In fact, we believe that the diversity of our                                              Commitment                   Contributing to                                                25
                                                                                                                                                                                                                     Attracting &
       the EY global network, has been adapted to the        service lines and of our clients provides us with                                          to society                   public debate                   developing talent

                                                                                                                                                                                                                                                         SUSTAINABILITY REPORT | FY18
       French context to take into account expectations      a key position as an observer of the financial                                                                 Supporting
       specific to our stakeholders and the local impact     world and that, therefore, we are responsible                                                                  our clients in

                                                                                                                 Importance for stakeholders
       of our activities.                                    for sharing these observations not only with our                                                               reducing their
                                                                                                                                                                            environmental
                                                             current and potential clients, but also with the                                                               footprint
       This materiality analysis has enabled us to           rest of the economic fabric of society.                                                                                                                         Diversity
       identify four key challenges for EY France:
       • Developing services that support                    We would like to continue updating this matrix
         sustainable growth                                  by questioning the stakeholders, in particular
       • Possessing expertise that enables us to             the external stakeholders.
         complete our assignments in a flexible and
                                                             The objective being pursued is to improve our                                                                      Transport-related
         high-quality manner
                                                                                                                                                                                environmental
       • Placing ever greater emphasis on our people         understanding of their perception of the risks                                                                     impact
                                                                                                                                                Responsible
                                                             and opportunities associated with our service
       • Being a corporate enterprise                                                                                                           purchasing
                                                             lines.
       This year, following internal interviews, the issue
                                                                                                                                                 Waste & end-of-life of
       of “contributing to public debate” has been           The challenges presented in this materiality                                        IT equipment
       reassessed.                                           analysis are examined in detail hereinafter.
                                                                                                                                                                            Potential impact for EY
 Our permanent message: No assignment is
                                                                                                     more precious than the reputation of EY France
                                                                                                     and that of each of our professionals.

Challenge 1                                                                                          What does “building trust What are the challenges
                                                                                                     in a changing world”      of innovation for EY?
                                                                                                     mean?
Developing services that support
                                                                                                                               The increase in digitalisation is transforming the
                                                                                                                                                                  global economy. The changes caused by digital
                                                                                                     EY is a trusted third party and its role is to build trust   technology are forcing companies and organisations

sustainable growth                                                                                   in the financial world. To that end, EY undertakes to
                                                                                                     provide businesses and organisations with a high level
                                                                                                     of service, which is appropriate to their expectations
                                                                                                                                                                  to rethink their relationships with their employees,
                                                                                                                                                                  clients and suppliers and to change the way they look
                                                                                                                                                                  at operational procedures and the business culture. EY
                                                                                                     and enables them to deal with changes in their               is no exception. “Possessing expertise that enables
                                                                                                     environment.                                                 us to complete our assignments in a flexible and
                                                                                                                                                                  high-quality manner” is one of our major challenges.
                                                                                                     This challenge is based on three essential pillars:          Meeting this challenge will improve our efficiency
                 Our clients expect EY to provide high quality audits, relevant                                                                                   while harnessing innovation.
                                                                                                     • Carrying out our assignments in compliance with the
                 advice and sound, technical expertise in the sector. In addition,                     rules on ethics and independence;                          This ambition requires cutting-edge technical and
                 due to the diversity of its clients and assignments, and the                        • Preserving the confidentiality of data;                    technological skills. EY has been able to build up these
                 auditing work that it carries out, EY is an observer of the                                                                                      skills thanks to the recruitment of engineers and
                                                                                                     • Ensuring client satisfaction.                                                                                       27
                 financial world and of the trends affecting it. Therefore, our                                                                                   the completion of acquisitions in the fields in which
                 mission is to help our clients to innovate by taking account of                     The procedures for managing quality, ethics and              we wish to develop, but also thanks to the training

                                                                                                                                                                                                                                                          SUSTAINABILITY REPORT | FY18
                                                                                                     independence can be accessed by all our employees in         we have given all our employees on the challenges
                 both technological and societal upheavals.
                                                                                                     a space dedicated to risk management.                        presented by digitalisation. Elaborated upon on
                                                                                                                                                                  page 35, the example of Blockchain technology pays
                 Responding to these needs enables us to contribute to creating                                                                                   testament to this desire.
                 sustainable conditions for trust and confidence in the economy.                     EY’s reputation and its ability to build trust and
                                                                                                     confidence in a changing environment is achieved,            While technology presents many new opportunities
                                                                                                     firstly, by management teams that are responsible            in terms of business activity, digital transformation
                                                                                                     for embodying our mission statement (“Tone at the            conceals much further-reaching societal changes.
                                                    In accordance with the regulations in force,     top” programme) and, secondly, by making all our             Digitalisation confers a new power on the individual,
                    Rapport de
                    transparence 2018
                                                    EY publishes a transparency report on its        employees accountable:                                       the citizen, the consumer. However, it gives rise to
                    EY en France
                                                    activities as statutory auditors within four     • The EY management teams are responsible for                concerns about the loss of jobs that it may cause,
                                                    months of the end of the fiscal year.              demonstrating, through their conduct and actions,          and issues relating to cybersecurity or even human
                                                                                                       EY’s desire to remain true to its mission statement        enhancement.
                    Exercice clos le 30 juin 2018
                                                    This report precisely explains the governance
                                                                                                       of “Building a Better Working World” by making the         It is therefore essential that EY can take a position
                                                    of the auditing activities, both in our global
                                                                                                       world of work in which we operate fairer and more          on these subjects and consider the societal impacts
                                                    network and in France. It explains the actions     balanced.                                                  of the innovations on which the company is working
                                                    taken to constantly improve the quality of
                                                                                                     • While the “Tone at the top” programme is essential,        and relies, as we do on our website: “Questions of
                                                    our work, manage risks and preserve our            our employees also understand that they are                Transformation” (see page 34). This is how we realise
                                                    independence as an auditor.                        primarily responsible for the quality of our services.     our mission statement “Building a Better Working
                   Our method: invest in the most innovative technological and                         Our shared values guide their professional actions.        World”, the primary objective of which is to participate
                                                                                                                                                                  in building a sustainable and positive economy1.
                   methodological tools and share our firmly anchored values, which                                                                               1
                                                                                                                                                                       ur contribution to creating a world that moves forward is linked to the mission
                                                                                                                                                                      O
                   represent who we are and what we do.                                                                                                               we have given ourselves: “Building a Better Working World”. This ambition – to
                                                                                                                                                                      offer a new perspective, enabling organisations to innovate and transform –
                                                                                                                                                                      starts with the ability to ask ourselves the best questions: relevant questions
                                                                                                                                                                      that make it possible to inspire but also to challenge.
In October 2018, Forrester named EY as
                                                                                                                                                                                                                                                                                                                                                                       the world’s leader in innovation consulting
                                                                                                                                                                                                                       LICENSED FOR INDIVIDUAL USE ONLY

                                                                                                                                                                                                                       The Forrester Wave™: Innovation Consulting

                     CHALLENGE 1: DEVELOPING SERVICES THAT SUPPORT SUSTAINABLE GROWTH
                                                                                                                                                                                                                       Services Providers, Q4 2018

                                                                                                                                                                                                                                                                                                                                                                       services, beating Deloitte, Accenture,
                                                                                                                                                                                                                       The Eight Providers That Matter Most And How They Stack Up
                                                                                                                                                                                                                       by Dan Bieler
                                                                                                                                                                                                                       October 4, 2018

                                                                                                                                                                                                                                                                                                                                                                       McKinsey and BCG. In particular, the research
                                                                                                                                                                                                                       Why Read This Report                                                                   Key Takeaways
                                                                                                                                                                                                                       It’s imperative for business to innovate and                                           EY, Deloitte, And Accenture Lead The Pack
                                                                                                                                                                                                                       reinvent themselves over the long term. Business                                       Forrester’s research uncovered a market in

Developing services
                                                                                                                                                                                                                       and technology leaders are increasingly looking                                        which EY, Deloitte, and Accenture are Leaders;
                                                                                                                                                                                                                       for support to strengthen their own innovation                                         BCG, KPMG, McKinsey, and PwC are Strong
                                                                                                                                                                                                                       capabilities. In our 17-criteria evaluation of                                         Performers; and Capgemini is a Contender.

                                                                                                                                                                                                                                                                                                                                                                       firm cites EY CogniStreamer as a significant
                                                                                                                                                                                                                       innovation consulting services providers, we
                                                                                                                                                                                                                                                                                                              Business And Tech Leaders Need Vendors
                                                                                                                                                                                                                       identified the eight most significant ones —
                                                                                                                                                                                                                                                                                                              That Support Them With Recurring Innovation
                                                                                                                                                                                                                       Accenture, Boston Consulting Group (BCG),
                                                                                                                                                                                                                                                                                                              The market for innovation consulting services
                                                                                                                                                                                                                       Capgemini, Deloitte, EY, KPMG, McKinsey, and
                                                                                                                                                                                                                                                                                                              is growing, as more businesses are looking for
                                                                                                                                                                                                                       PwC — and researched, analyzed, and scored
                                                                                                                                                                                                                                                                                                              support to make their innovation efforts more
                                                                                                                                                                                                                       them. This report shows how each provider
                                                                                                                                                                                                                                                                                                              sustainable and repeatable.
                                                                                                                                                                                                                       measures up and helps CIOs make the right choice.

                                                                                                                                                                                                                                                                                                                                                                       asset and underlines our ability to blend
                                                                                                                                                                                                                                                                                                              A Dedicated Innovation Practice Is A Key
                                                                                                                                                                                                                                                                                                              Differentiator
                                                                                                                                                                                                                                                                                                              A dedicated innovation practice provides the
                                                                                                                                                                                                                                                                                                              focused context that innovation customers need
                                                                                                                                                                                                                                                                                                              to restructure their approach to innovation. The
                                                                                                                                                                                                                                                                                                              leading innovation consulting service vendors all
                                                                                                                                                                                                                                                                                                              operate dedicated innovation practices.

                                                                                                                                                                                                                                                                                                                                                                       business, design and advanced technologies,
that support                                                                                                                                                                                                           This PDF is only licensed for individual use when downloaded from forrester.com or reprints.forrester.com. All other distribution prohibited.
                                                                                                                                                                                                                       FORRESTER.COM                                                                                                                                   all thanks to our collaborative teams.
                                                                                                                                                                                                                                                                                                                                                                       Further information is available online.

sustainable growth
                                                                                                                                                 The EY Wavespace presentation video is
                                                                                                                                                 available online

ENSURING THE QUALITY OF OUR ASSIGNMENTS WHILST COMPLYING WITH THE                                                                           THE RISE OF INNOVATION AT EY FRANCE
PROFESSIONAL CODE OF ETHICS

  Quality                 Ethics and independence

                  Compliance of the                  Monitoring of the substantiated          Complying with the rules of
                  employees and partners             complaints regarding breaches            professional conduct and                                                                                                                                                                                                                                                                                            29
                  with the code of                   of customer privacy or losses of         confidentiality throughout our
                                                                                              assignments

                                                                                                                                                                                                                                                                                                                                                                                                                    SUSTAINABILITY REPORT | FY18
                  conduct                            customer data: 0 complaints

                                                                                                                                            CARRYING OUT STRATEGIC AND                            CREATION OF DIGITAL INNOVATION                                                                                                                                               INTERNAL DISSEMINATION OF
                                                                                                                                            STRUCTURAL ACQUISITIONS                               TEAMS                                                                                                                                                                        INNOVATION PROCESSES

                                                                                                                                            • Ricol Lasteyrie Corporate Finance                   • Overall management by a Chief                                                                                                                                              • Inauguration in 2017 of the
                                                                                                                                            • Bluestone (data scientists)                           Digital Officer                                                                                                                                                              Questions of Transformation
                                                                                                                                                                                                  • Inauguration of the EY Experience                                                                                                                                            platform for our clients and
                                                                                                                                            • Greenwich Consulting
                                                                                                                                                                                                    Lab in late 2016, focusing on                                                                                                                                                employees
                                                                                                                                            • OC&C Strategy Consultants
                                                                                                                                                                                                    themes involving Analytics,                                                                                                                                                • Webinars enabling all EY
                                                                                                                                            • CogniStreamer (Open Innovation                        Cybersecurity or Digitalisation                                                                                                                                              employees worldwide to acquire a
                                                                                                                                              platform)1                                                                                                                                                                                                                         common digital culture
                                                                                                                                                                                                  • In 2017, the Lab joined the EY
Technical and cross-                  Deployment of the                   Improving employees’                   Monitoring of our                                                                  Wavespace™ global network, which                                                                                                                                           • Organisation of EY WavespaceTM
functional training for               satisfaction programme:             skills through training                clients’ recommendation
                                                                                                                                                                                                    consists of 18 innovation and R&D                                                                                                                                            visits, to encourage the
the employees: An                     524 clients interviewed             and supervision                        index: 8.1/10
average of 9.7 days per                                                                                                                                                                             centres around the world                                                                                                                                                     dissemination of innovation
person per year                                                                                                  Survey on the                                                                    • Recruitment of R&D experts                                                                                                                                                   processes
                                                                                                                 significance of negative
                                                                                                                                                                                                    with expertise in Analytics/
                                                                                                                 feedback
                                                                                                                                                                                                    Data Science, Cybersecurity,
                                                                                                                                                                                                    Digitalisation, Artificial Intelligence
                                                                                                                                                                                                    and Blockchain technology
                                                                                                                                             Acquisition carried out by EY Belgium, enabling us
                                                                                                                                            1

                                                                                                                                             to develop new offerings in France
EY is accredited by                      EY’s auditing activities            EY has an area that
                                                                                                                   COFRAC1 for the                          are audited each year               is PASSI [IT System
       CHALLENGE 1: DEVELOPING SERVICES THAT SUPPORT SUSTAINABLE GROWTH                                            validation of environmental              by H3C2                             Security Audit Provider]
                                                                                                                   information, such as CO2                                                     certified

Service quality and                                                                                                emissions

client satisfaction
                                                                                                                     SUMMARY OF THE RULES
                                                                                                                     IMPLEMENTED TO ENSURE QUALITY
           In order to ensure the quality of its assignments, EY has introduced a
                                                                                                                     Serving the public interest
           quality control system based on policies, tools and procedures detailed                                   • Our decisions are based on facts.                                  For (9-10)
           in our audit activity transparency report.                                                                • We bear in mind the difference between the                         Neutral (7-8)
                                                                                                                       interests of our client representatives and the
                                                                                                                                                                                          Against (1-6)
                                                                                                                       objectives of our assignment.
           Each service line has a partner in charge of       • Between FY17 and FY18, the number of                 • In particular, with regard to audit clients, we bear
           quality and risk management, as well as a            surveys increased by 38% in the WEM region.            in mind that the stakeholders and investors are our                                 10%                       8%
           dedicated team. Two types of internal checks         This increase has enabled better control of            ultimate client. We do not let our clients influence
                                                                                                                       our decisions.
           help to ensure the quality of our assignments:       client relationships. Management of client
           firstly, the checks and controls that are            relationships has improved thanks to the                                                                                                   52%                       57%
                                                                                                                     Preserving confidence and integrity                                                                                                         31
           embedded within assignments and, secondly,           more systematic communication of negative
                                                                                                                     • We always conduct ourselves with integrity by
           the annual checks performed on a sample of           feedback.
                                                                                                                       following demanding ethical standards and by                                        38%                       35%

                                                                                                                                                                                                                                                                      SUSTAINABILITY REPORT | FY18
           assignments.                                                                                                acting fairly, because independence is at the heart
                                                              • In addition, EY is now introducing ESQ                 of our priorities.                                                                   FY17                     FY18
           EY has also deployed a programme for                 (Expectations of Service Quality), which             • We tell the truth and do not hide any message from
           analysing client satisfaction:                       allow an assessment of expectations prior              our clients, regardless of the consequences.
                                                                to an assignment, so as to meet those

                                                                                                                                                                                 8.1/10
           • All members of the EY global network carry         expectations more effectively. EY’s aim is to        Keeping an open and curious mind
             out work led by ASQ (Assessment of Service         systematise ESQs for each significant new            • We are objective and adopt an attitude of
             Quality). Via questionnaires or individual         assignment. 5% of the quality interviews held          professional scepticism throughout our work.
             interviews, we question a selection of clients     in the course of FY18 were ESQs.                     • We ask searching questions until we receive               WEM Region
             based on a risk analysis (renewal, rotation                                                               satisfactory answers.
                                                                                                                                                                                 Average customer recommendation score,
             of the partner in charge). The frequent use      • ESQs are increasingly being used when                • We develop our skills and expertise in order to
                                                                                                                       improve ourselves.                                        which has remained stable in comparison
             of two interviewers in interviews helps to         contracts are renewed in order to guarantee
             increase the quality of discussions and to         the quality of our services at all stages of the
                                                                                                                                                                                 with FY17
             produce a summary together with an action          client relationship.                                 Developing highly effective teams
             plan. In order to guarantee independent                                                                 • We hold ourselves accountable, individually and
                                                                                                                       collectively, for performing high-quality work.
             feedback, the interviewers are not involved
             in work for the client they are interviewing.                                                           • We understand the rules applicable to our
                                                                                                                       profession.
                                                                                                                     • We attach great importance to providing high-
                                                                                                                       quality training and supervision.
                                                                                                                                                                                     Verification of CO2 emissions: accreditation No 4-0551 Verification of
                                                                                                                     • We ask for help when it is needed.
                                                                                                                                                                                 1

                                                                                                                                                                                     environmental, social and societal information: accreditations No 3-1050,
                                                                                                                     • We encourage direct communication.                            No 3-1065 and No 3-1067
                                                                                                                                                                                 2
                                                                                                                                                                                     Haut Conseil du commissariat aux comptes – auditing oversight board
CHALLENGE 1: DEVELOPING SERVICES THAT SUPPORT SUSTAINABLE GROWTH
                                                                                                                                                            Learn more:
                                                                                                                                                            2018 Panorama of
                                                                                                                                                                                                                          57
                                                                                                                                                                                                                          Studies published
                                                                                                                                                            Governance.

Observing and
                                                                                                                                                                                                                          in FY18

innovating for
transformation (1/2)                                                                                                                        What is our role in transforming society?
                                                                                                                                            As an observer of the economy, EY has a duty to share its points
                                                                                                                                            of view, above and beyond just client assignments. Therefore,
                                                                                                                                            we contribute to collective thinking through our presence in
Thanks to its privileged position as an observer                                                                                            numerous organisations, think tanks, professional networks and
of the economy and player in the transformation                                                                                             events, such as Vivatechnology. As part of this event, EY has
of companies, EY has a particular role to play                                                                                              conducted around forty workshops and presentations in relation to
in innovation in the financial world and in the                                EY WAVESPACE™ LAB PARIS                                      transformation issues.
transformation of society.                                                     In order to support organisations in                         We also publish studies carried out internally   Beyond these client assignments, EY has
                                                                               their digital transformation, in 2016,                       on topical issues, such as the 2018              supported the national competition to help
                                                                               in Paris, EY inaugurated a space                             Panorama of Governance, which relies on          create innovative technology businesses          33
                                                                               for innovation, collaboration and                            an analysis of the reference documents of        since 1998. EY is also a founding Partner of
What is innovation at EY?                                                      the creation of enhanced services

                                                                                                                                                                                                                                                   SUSTAINABILITY REPORT | FY18
                                                                                                                                            220 listed companies in France and four          “Moovjee” (Young Student Entrepreneurs
                                                                               in Analytics, Cybersecurity1 and                             other European countries, on the following       Movement), which promotes and supports
                                                                               Digitalisation for our clients.                              issues: organisation, tools, deployment of       entrepreneurship and the creation,
Digital innovation affects our own      While our areas of activity will
service lines just as much as the       probably not change radically within   In late 2017, the Lab joined the                             governance, transparency, CSR and ethics.        development and revival of companies by
service offerings we develop for our    the next decade – tax, auditing and    EY WavespaceTM network, a global                             After years of progress, our analysis shows      students and young graduates.
clients, which makes our capacity       advisory services will still be the    network consisting of over 18                                that French companies have reached a good
for innovation essential to the         key service lines because they are     innovation centres.                                          level of maturity. Parity, independence,         EY also emphasises the innovation and
sustainability of our business model.   vital to the proper functioning of     The objectives of EY Wavespace™                              diversity of nationalities or skills, level      excellence of the French business fabric by,
                                        the economy – the way in which we      Paris are as follows:                                        of involvement, scope and relevance of           for example, awarding the Entrepreneur
The reason for this is that companies   perform those services will most       • To bring together the existing skills                      work themes: all indicators are developing       of the Year Award which, for the last
that are not in tune with societal      likely evolve considerably.              within EY, to pool their potential                         favourably. Therefore, the Committees            26 years, it has awarded to men and women
trends and the digital revolution                                                and foster multidisciplinary                               must be ready to tackle the challenges of        on exceptional career paths, selected from
run the risk of not only letting        At EY, innovation is sure to create      innovation in a dedicated physical                         tomorrow, including digital transformation,      seven large French regions to compete at
opportunities pass by, but also         growth. We have thus achieved            space;                                                     CSR, ethics and new risks.                       regional, national and even global level.
drastically falling behind their        strong growth for the tenth            • To position itself as a key player
competitors or new entrants.            consecutive year, fuelled in part        in digital transformation that is                          EY is also strongly committed to SMEs
                                        by technological innovations, such       capable of innovating;                                     and start-ups. Over the last 20 years and
                                        as analytics.                          • To create tools that are capable of                        more, EY has carried out over a thousand
                                                                                 meeting the digital requirements of                        assignments for the Young Innovative
                                                                                 our clients.                                               Enterprises. This experience has enabled us
                                                                                                                                            to be selected by key players in innovation,
                                                                                                                                            such as the French Ministry of Research, BPI
                                                                               1
                                                                                    he Cybersecurity part of the Lab is PASSI [IT System
                                                                                   T
                                                                                   Security Audit Provider] certified                       France and the Genopoles.
CHALLENGE 1: DEVELOPING SERVICES THAT SUPPORT SUSTAINABLE GROWTH
                                                                                                                                                                 60
                                                                                                                                                                 people dedicated to R&D
                                                                                                                                                                                                                   1000+
                                                                                                                                                                                                                   employees work in roles
                                                                                                                                                                 in France                                         that did not exist three
Observing and                                                                                                                                                                                                      years ago

innovating for
transformation (2/ 2)
                                                                                                                      EXAMPLE - EY INNOVATING THANKS TO BLOCKCHAIN TECHNOLOGY

                                                       EY has developed 2000 robots for its clients and               EY’s global expertise in Blockchain technology is           of the future. Internally, regular webinars1 are offered
                                                       700 robots for itself. These robots simulate the tasks of      based on specialist teams spread across several             to employees who are interested.
                                                       an employee and play a part as an additional labour force      research centres throughout the world, one of which
                                                       for the management of standardised, repetitive and time        is in Paris. Their teams consider opportunities for         On the ground, together with our digital experts and
                                                       consuming tasks, in addition to those with little added        the deployment of this new exchange architecture,           our clients, we are co-constructing strategic and
  QUESTIONS OF TRANSFORMATION
                                                       value. The areas for application are enormous (financial,      industrial sector by industrial sector, and they are        technical solutions that seek to take advantage of the
                                                       legal and tax, HR and operations) and the time savings are     working on managing the associated risks.                   potential of Blockchain technology and attempting
 Organisation, skills, investment,                                                                                                                                                to envisage the business models of the future. By
                                                       significant, as the time saved can reach up to 70% of the
 international: the challenges that companies          time usually dedicated to a given task. There is a dedicated   This rise makes it necessary to carry out an                virtue of the infrastructures put in place and its policy
 face raise many questions and make it                 team working to enhance the robots by combining them           educational campaign for our employees and clients          of attracting and developing talent, EY’s ambition
 necessary to implement transformations.               with artificial intelligence technologies, such as NLP/NLG     and to respond to their legitimate questions that           is to support the changes brought about by this
                                                       (Natural Language Processing/Generation).                      relate to a phenomenon that contains the seeds for          technological breakthrough.                                 35
 In order to assist them, EY wanted to make
                                                                                                                      potential economic, financial and societal revolutions
 expert analyses available to them via a

                                                                                                                                                                                                                                                   SUSTAINABILITY REPORT | FY18
 digital platform.
 This platform primarily aims to provide
 answers to the following three questions:
                                                       EXAMPLE OF AN ASSIGNMENT CARRIED                               EXAMPLE ASSIGNMENT                                          ARTIFICIAL INTELLIGENCE (AI)
 what will my sector and environment be                OUT WITH THE ASSISTANCE OF ARTIFICIAL                          PREDICTIVE ANALYTICS                                        CHALLENGE
 like tomorrow? What will the impacts be               INTELLIGENCE
 on my company’s various activities? Which                                                                            Objective:                                                  EY partners the Île-de-France Region in its AI
 perspectives should be adopted in the                 Objective:                                                     To predict sales or client demand in accordance with        Challenge.
 transformation process for my organisation?           To accelerate and improve the reliability of the               factors outside the company, such as the weather.
                                                                                                                                                                                  This challenge is open to start-ups less than
 The theme covered in January 2019 will                categorisation of purchases,                                   Method:                                                     five years old that have already raised more
 relate to the purpose of the company.                 via machine learning, in order to improve their                                                                            than €500,000, whose solutions use AI and are
                                                                                                                      • Collect, structure and ensure the quality of the
                                                       understanding.                                                                                                             intended for an international market.
                                                                                                                        historic commercial performance data (provided by
                                                       Method:                                                          the company)
                                                                                                                                                                                  EY has, on the one hand, guided the entire
                                                       • Collect, structure and ensure the quality of the data from   • Creation of mathematical models by our data               challenge (traditional assignment) and, on the
                                                         multiple information systems                                   scientists
                                                                                                                                                                                  other hand, contributed to guiding the 10 start-
                                                       • Use of an Active Learning algorithm                          • Integration of Machine Learning algorithms                ups selected.
                                                       Benefits:                                                      Benefits:                                                   Further information on the challenge is available
                                                       • Estimated time savings of a seventh                          • High level of reliability in the prediction of weather-   online.
                                                                                                                        reliant activity
                                                       • More time available for work with high added value
                                                                                                                      • Improved stock and sales force management
                                                       • Significant reduction in the number of errors                                                                                webinars are participatory online training.
                                                                                                                                                                                  1
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