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