Climate Change Data

Environmental Metrics

ESG Focus Areas

• Our people
• Our impact
• Environmental policy
• Health and safety
• Human rights

Environmental Achievements

• Reduced energy consumption through various initiatives (installing automatic power off systems, energy-efficient lighting, time switches on air conditioning, reduced travel via video conferencing).

Social Achievements

• Commitment to highest standards of health, safety, and welfare for employees globally; equal opportunities policy; positive discrimination in South Africa for previously disadvantaged individuals; employee consultation through formal and informal meetings; various bonus schemes linked to business unit and Group profitability; active CSR agenda including work with non-profit organizations and government ministries.

Governance Achievements

• Compliance with the UK Corporate Governance Code; established whistleblowing policy; defined services that can be purchased from the Group’s auditor; procedures to minimize risk of conflict of interest; regular Board meetings and Committee meetings; annual performance evaluation of directors, Board, and Committees; clear definition of roles of Board and management; strong control framework with defined lines of responsibility, delegation of authority, and reporting requirements.

Climate Goals & Targets

Environmental Challenges

• Poor first-half performance in Alexander Proudfoot; market weakness impacting Kurt Salmon operations in France; weak start to 2014 for Alexander Proudfoot; currency headwinds affecting reported revenues; volatility in Alexander Proudfoot's revenue profile due to large-scale, discrete projects.

Mitigation Strategies

• Improved second-half performance in both businesses; actions taken to protect margins in Kurt Salmon; focus on improving Alexander Proudfoot's performance and investing in the business for long-term growth; resource management in Kurt Salmon's French business to align with market conditions; building long-term relationships with clients in Alexander Proudfoot; exploring ways to develop Alexander Proudfoot's offering for a more secure revenue base.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: FTSE4Good Index, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Our people
• Our impact
• Gender diversity
• Human rights
• Health and safety
• Environmental impact
• Ethical standards
• Corporate social responsibility

Environmental Achievements

• Reduced energy consumption through various initiatives (installing automatic power off systems, energy-efficient lighting, time switches on air conditioning, reduced travel via video conferencing).

Social Achievements

• Continued commitment to improving gender balance in the workforce.
• Active corporate social responsibility agenda, including work with non-profit organizations and government ministries.
• Commitment to providing a working environment free from harassment, discrimination, victimisation or bullying.
• Equal opportunities policy for all employees.

Governance Achievements

• Board composition brought a wide range of experience and knowledge.
• Board met with operational management and senior managers.
• Compliance with the UK Corporate Governance Code (with some exceptions noted in the report).

Climate Goals & Targets

Environmental Challenges

• Slower pace of change across some areas of the business, notably in the Americas.
• Weak second half of the year, particularly in North America.
• Demand from natural resources clients remained weak.
• Uncertainty regarding the timing of potential claims under various disposals.
• Risks to the Group’s short-term funding position created by contingent liabilities.

Mitigation Strategies

• Reduced operating costs by around 20% during the year.
• Changes made to Proudfoot’s offering to exploit opportunities for growth.
• Changes to Proudfoot’s business processes to enhance client relationships.
• Remuneration policies and structures that reward good performance.
• Active hiring from a broad pool of talent.
• Comprehensive knowledge management system to protect intellectual capital.
• Hedging to mitigate currency risk (rarely undertaken due to cost base location).
• Monitoring actual costs and potential liabilities related to disposals.
• Active dialogue with trustees of pension plans.
• Exploring a fundraising backed by its major shareholder to offset risks to its short-term funding position.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, ISO 14064–1 (2006)

Awards & Recognition

• Award for work in natural resources for Rio Tinto (Best International Project category at the 2018 MCA Awards)
• Service Supplier of the Year award for work for Santa Monica Seafood
• Forbes annual list of Best Consulting Firms in America

Environmental Metrics

ESG Focus Areas

• Gender diversity
• Human rights
• Health and safety
• Environmental impact (waste, recycling, energy use, climate change)
• Ethical conduct

Environmental Achievements

• Reduced energy consumption through various initiatives (automatic power off systems, energy-efficient lighting, time switches on air conditioning, reduced travel via video conferencing).

Social Achievements

• Improved client satisfaction (63% repeat business)
• Strengthened talent pool and global teams, particularly in the US.
• Won Fortune 500 clients and other blue-chip global brands.
• Launched MRO vertical in US and UK.
• Received awards (Highly Commended for Best International Project 2018 from Management Consultancies Association, Ground Breaker Award from Rio Tinto).

Governance Achievements

• Appointed Pamela Hackett, CEO of Proudfoot, to the Board, increasing female representation to one-third.
• Restructured the business to reduce the global administrative footprint.
• Sold Proudfoot Brazilian operations.

Climate Goals & Targets

Environmental Challenges

• Lower revenues in 2018 compared to 2017 (although H2 2018 showed a 14% increase compared to H2 2017).
• Demand for services affected by macroeconomic conditions and competition.
• Need to develop and retain key client relationships.
• Recruitment and retention of talented employees.
• Optimisation of intellectual capital.
• Fluctuations in foreign currency exchange rates.
• Management of residual liabilities from 2016 disposals.
• Pension liabilities.
• Brexit uncertainty.

Mitigation Strategies

• Investment in sales capability and marketing at Proudfoot.
• Transformation of US leadership team and implementation of new offering and strategy.
• Maintaining growth in Europe.
• Cost reduction measures (approximately 19% reduction in adjusted operating costs).
• Restructuring the business and selling non-core operations.
• Flexible approach to meet client needs and alignment with specialist verticals.
• Remuneration policies and structures that reward good performance.
• Comprehensive knowledge management system.
• Contractual arrangements to protect intellectual property.
• Hedging to mitigate currency risk (rarely undertaken due to cost base location).
• Monitoring actual costs and potential liabilities.
• Active dialogue with pension plan trustees.
• Exploring exit plans for remaining plan members of Kurt Salmon UK pension scheme.
• Regular business forecasts and sensitivity analysis to address principal risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Awards & Recognition

• Highly Commended for Best International Project 2018 (Management Consultancies Association)
• Ground Breaker Award (Rio Tinto)

Environmental Metrics

ESG Focus Areas

• People and Culture
• Diversity and Inclusion
• Employee Engagement
• Human rights and health and safety requirements
• Environmental Policy
• Climate Change
• Waste and recycling, energy use

Environmental Achievements

• Reduced energy consumption through various measures (installing automatic power off systems, energy-efficient lighting, time switches on air conditioning, reduced travel via video conferencing)
• Reported greenhouse gas emissions for Scope 1 and 2 in line with UK mandatory carbon reporting regulations

Social Achievements

• Continued focus on creating an inclusive culture, free from discrimination
• Improved repeat work for clients (69% in 2019 from 63% in 2018)
• Launched #HeadsUp, a global movement encouraging better leadership

Governance Achievements

• Continued to maintain high standards of corporate governance in accordance with the UK Corporate Governance Code
• Undertook a tender process for the appointment of new auditors
• Reviewed plans for overall annual recruitment needs

Climate Goals & Targets

Environmental Challenges

• Demand for services affected by global, regional, or national macroeconomic conditions and competition
• Failure to develop and retain client relationships
• Recruitment and retention of talented employees
• Fluctuations in foreign currency exchange rates
• Management of residual liabilities from 2016 disposals
• Pension liabilities
• Liquidity
• COVID-19 pandemic significantly impacting demand for services due to international travel restrictions

Mitigation Strategies

• Changes to Proudfoot’s offering to exploit opportunities in high-demand areas
• Flexible staff deployment
• Variable pay linked to financial performance for senior employees
• Changes to business processes to enhance client relationships and generate longer-term revenue
• Remuneration policies and structures to reward good performance and retain key personnel
• Hedging to mitigate currency risk (rarely undertaken due to cost base matching revenue generation locations)
• Monitoring actual costs and potential liabilities related to 2016 disposals
• Active dialogue with pension plan trustees and exploration of exit plans
• Comprehensive treasury function and regular cash forecasts
• Cost reductions and alternative funding routes
• Staff restructuring, temporary salary reduction, tax deferments, employee furlough, and government initiatives to preserve liquidity
• Application for CBILS business interruption loan scheme

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, ISO 14064-1 (2006), UK mandatory carbon reporting regulations

Awards & Recognition

• Forbes America’s Best Management Consulting Firms (two years running)
• Financial Times UK’s Leading Management Consultancies (two years running)