Sustainability report - EY France's economic, social and environmental contribution
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Sustainability report EY France’s economic, social and environmental contribution 2018
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 dataYoung 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.
MarketGOVERNANCE
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 FranceEY 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 boardCHALLENGE 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.
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