Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Pulse Score increased from 38 to 42 (out of 100), showing progress toward advanced social and environmental performance. Improvements mainly from small-size players in the mid-price segment, and medium and large-size players in the entry-price segment.

Social Achievements

• Improvements in working conditions and wages, although specific quantified achievements are not provided.

Governance Achievements

• Companies are adopting sustainability strategy development and governance, setting targets, implementing best practices and aligning their association affiliations.

Climate Goals & Targets

Environmental Challenges

• Slowing rate of progress in improving Pulse Score (improvement decreased by a third compared to the previous year).
• Difficulty in scaling up sustainable solutions and bringing proven initiatives deeper into the value chain.
• Need for innovation and changes in business models to achieve greater impact.
• Technological and economic limitations hindering progress.
• Gap between industry growth and Pulse Score improvements widening.

Mitigation Strategies

• Collaboration with suppliers, investors, regulators, NGOs, academia, and consumers to create an ecosystem that supports transformational innovation and disruptive business models.
• Focus on foundational steps such as integrating sustainability into strategy, corporate identity, decision-making, governance, reporting, and tracking.
• Joining associations like the Sustainable Apparel Coalition to gain knowledge and collaborate.

Supply Chain Management

Responsible Procurement

• Increasing supply chain traceability
• Implementing measures to reduce greenhouse gas emissions
• Implementing efficiency programs in processing stages
• Upholding standards for the respect of universal human rights

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Higg Index

Environmental Metrics

ESG Focus Areas

• Climate action
• Social impact
• Diversity, Equity, and Inclusion
• Responsible Business Practices
• Empowering Our People

Environmental Achievements

• 74% reduction in absolute greenhouse gas emissions against 2018 baseline
• 100% of electricity consumption from renewable energy sources
• Validated science-based targets aligned with 1.5°C warming limit by SBTi

Social Achievements

• Delivered over 1,300 social impact consulting projects to 660 clients
• Invested over $320 million in social impact and community initiatives
• Increased proportion of women joining BCG to 48%
• Increased proportion of racial and ethnic minorities joining US team to over 50%

Governance Achievements

• Refreshed Code of Client Service to define work types, clients, and engagement
• Launched firm-wide change management program to strengthen data protection
• Maintained perfect score on Human Rights Campaign’s Corporate Equality Index

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic
• Hard-to-abate sectors in client work
• Maintaining ambitious climate targets during economic uncertainty

Mitigation Strategies

• Developed alternative sourcing strategies and resilience plans
• Developed internal policies to define projects and clients supported
• Invested in climate and sustainability consulting services, and developed tools like CO2 AI

Supply Chain Management

Supplier Audits: 100% of contracts include Supplier Code of Conduct

Responsible Procurement

• Supplier Code of Conduct
• Supplier sustainability questionnaires
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Increased demand for climate and sustainability services

Reporting Standards

Frameworks Used: GRI, World Economic Forum Stakeholder Capitalism Metrics, TCFD, UN Global Compact

Certifications: CarbonNeutral®

Third-party Assurance: ISO 14064-3 standard (limited assurance)

UN Sustainable Development Goals

• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Support for clients, social impact partners, and carbon credit portfolio projects

Sustainable Products & Innovation

• CO2 AI software solution

Awards & Recognition

• CDP Climate A-List
• EcoVadis Gold rating
• Consulting magazine’s Best Firms to Work For

Environmental Metrics

ESG Focus Areas

• Social Impact
• Climate Change
• Diversity, Equity, and Inclusion
• Responsible Business Practices
• Empowering Our People

Environmental Achievements

• ~30% reduction in BCG’s carbon footprint compared to 2018 baseline
• 100% of office electricity came from renewable energy sources
• 94% reduction in Scope 1 and 2 emissions intensity since 2018
• 60% reduction in Scope 3 business travel emissions intensity since 2018

Social Achievements

• Completed more than 1,500 projects related to societal and planetary impact with 780 clients
• Invested $460 million in societal and planetary impact with clients in 2022
• Launched new recruiting campaign: “Beyond is where we begin.”
• Deployed more than $70 million to deliver equity-focused projects
• Donated more than $900,000 to Black equity-focused organizations
• Maintained leadership position on numerous external benchmarking programs

Governance Achievements

• Grew our Global Risk Management function by 32% in 2022
• Launched a new Responsible AI policy and AI Code of Conduct
• 100% of BCG employees completed mandatory business ethics online training
• Achieved a perfect score for the 16th consecutive year on the Human Rights Campaign’s Corporate Equality Index
• Achieved an A rating in the 2022 CDP Climate Disclosure

Climate Goals & Targets

Environmental Challenges

• Devastating war in Ukraine and deepening geopolitical uncertainty
• Global emissions in 2022 were the highest in recorded history
• Challenges in finding diverse suppliers
• Difficulties in embedding a culture of intentional inclusion
• Lack of transparency within the voluntary carbon market

Mitigation Strategies

• Provided humanitarian support across various phases of the Ukraine war
• Partnering with businesses and governments to build a more sustainable and resilient world
• Leveraging deep subject matter expertise and existing external partnerships with diverse businesses
• Activating a network of champions across the enterprise
• Establishing mentorship-focused alliances to help diverse suppliers build scale
• Transitioning our carbon credit portfolio to 100% carbon dioxide removal (CDR) credits by 2030
• Working with Sylvera for independent carbon credit rating and monitoring

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Governance Policy
• Supplier Sustainability Questionnaires
• Supplier Screening

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Reputational risks
• Market shifts
• Technological changes

Opportunities

• Increased demand for climate and sustainability consulting services

Reporting Standards

Frameworks Used: GRI Standards, World Economic Forum Stakeholder Capitalism Metrics, Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: CarbonNeutral®

UN Sustainable Development Goals

• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through client work, carbon credit portfolio, and partnerships.

Sustainable Products & Innovation

• CO2 AI
• Circelligence
• Climate Impact AI

Awards & Recognition

• CDP Climate A List
• EcoVadis Gold rating
• Consulting magazine’s Best Firms to Work For
• Human Rights Campaign’s Corporate Equality Index perfect score
• Ethical Leadership Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Pollution
• Biodiversity
• Resource Use & Circular Economy
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• High level of complexity and volume of ESG-related data requirements from CSRD/ESRS (over 100 KPIs)
• CSRD/ESRS requirements written with corporates in mind, lacking insurance-specific standards initially
• Need to integrate CSRD/ESRS into existing operations, including strategy, governance, risk management, and data capabilities
• Expanding data capabilities to meet the demands of numerous KPIs across different systems

Mitigation Strategies

• Phased implementation approach focusing first on existing and mandatory KPIs, then expanding to value chain KPIs, and finally automating the reporting process
• Gap analysis to assess CSRD/ESRS readiness and identify reporting gaps
• Double materiality assessment to understand how ESG issues affect the company and how the company's actions affect the environment
• Establishing a matrix project organization with a central team, content owners, and an ESG committee for effective management

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD, ESRS, GRI