Climate Change

Addressing the monumental significance of a changing climate on our clients, people, and communities requires us to continue improving our ability and the ability of our communities to work together with purpose. Climate change has the potential to transform how we move forward as a global society—making us uniquely placed to support this transition with our people's expertise and new technology capabilities.

Our role as a trusted partner relies on demonstrating our high accountability standards, whether through our environmental efforts or how we engage with our communities. We strive to comply with all applicable environmental laws and regulations and incorporate leading practices such as greenhouse gas (GHG) reduction measures, efficient use of resources, and minimizing waste generation in our operations whenever possible. We develop innovative and sustainable solutions for our clients to address global challenges while promoting responsible consumption of resources in operating our business. In our 2021 ESG Report, we announced our commitment to set firmwide emissions targets in line with climate science that are designed to enable us to achieve net zero GHG emissions by 2050. We submitted our near-term and net zero targets in late 2022 and are collaborating with the Science Based Targets initiative (SBTi) to achieve their validation of our targets.

Using FY20 as a baseline, we are developing a climate action plan that aligns with the rigorous criteria established by the SBTi and with the Paris Agreement's recommended 1.5°C threshold. Under the governance of our ESG Committee, we are addressing our emissions in line with both our short-term science-based targets and our long-term net zero commitment through a formalized, cross-functional Climate Impact Initiative.

The Climate Impact Initiative is organized around four key objectives:

  1. Reduce our Scope 1 and 2 emissions.
  2. Engage with our value chain to reduce our Scope 3 emissions.
  3. Partner with business leaders to integrate climate considerations into our business strategy, corporate value proposition, and business solutions.
  4. Empower employee groups and engage with the community to influence climate action.

IN FY23, WE SUBMITTED TWO GOALS TO THE SCIENCE BASED TARGETS Initiative (SBTi): AN OVERALL 50.4% EMISSIONS REDUCTION BY 2032 AND A 90% REDUCTION BY 2050. THESE GOALS SUPPORT THE SBTi GOAL OF REACHING NET ZERO EMISSIONS BY 2050 TO LIMIT THE GLOBAL TEMPERATURE RISE TO 1.5°C.

We continue to build awareness across the firm about how to further embed climate change into our strategic decision making and to consider the second- and third-tier climate impacts of business decisions. As part of this effort, we are working to integrate consideration of climate risks across our organizational strategy and enterprise risk-management processes. We are reviewing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to guide us in finalizing our climate risk assessment. Developed using data from key financial and facility systems, as well as data from external platforms such as the Federal Emergency Management Agency (FEMA) and National Oceanic and Atmospheric Administration (NOAA), our climate risk-assessment tool is expanding to include health and safety of our people, securing our business operations, impact of local regulations, and facility operations and maintenance.

Most of our carbon footprint falls within Scopes 2 and 3 (our Scope 1 emissions from fleet vehicles and stationary combustion are negligible and therefore not pictured). Our U.S. and international real estate holdings comprise approximately 2.5 million square feet of leased space. While we do not own or manage any of the buildings our people occupy, we structure our space selection process, lease agreements, workspace design, and telework capabilities to minimize energy use and resulting GHG emissions.

We continually challenge ourselves to expand our emissions reporting and data management. Reflecting that commitment, we expanded our Scope 3 reporting in FY23 to include two new categories: Category 1: Purchased Goods and Services and Category 5: Waste Generated in Operations. We evaluate the applicability of all Scope 3 categories to our operations on an annual basis, and we will add new categories to our inventory as appropriate.

Reported Scope 3 emissions represent roughly 90% of our total emissions. Given that, we recognize the need to assess and proactively engage with our value chain to reduce our emissions.

In 2015, we set targets to reduce by 2026 our Scope 2 emissions per square foot and Scope 2 emissions per employee by 15% using a 2014 baseline, and we achieved both goals well ahead of schedule. While we are still seeing an overall downward trend in both measures compared to the 2015 baseline, we did see an increase in emissions per employee from FY22 to FY23. Without the addition of new Scope 3 reporting categories, we estimate a 2.3% year-over-year increase in emissions per employee

FY23 GREENHOUSE GAS EMISSIONS*

FY23 GREENHOUSE GAS EMISSIONSTotal of greenhouse gas emmisions from scope 2 and scope 3 in fascal year 2023.114,170MTCO2eTOTALPURCHASED GOODS & SERVICES37,626WASTE GENERATED IN OPERATIONS3,085INTERNATIONAL FACILITIES187SCOPE 3 = 101,878 MTCO2e

*Our emissions methodology and calculations have been independently verified by Apex Companies LLC. Note that due to rounding, numbers presented in this graphic may not add up precisely to the totals provided. Scope 1 Emissions from Fleet Vehicles and Stationary Combustion are negligible and therefore not pictured.

Progress on Scope 2 Goals

Progress on Scope 2 GoalsProgress on scope 2 emmision goals per employee in 2023 since 2014.0.20.40.60.81.01.20.0020.0040.0060.0080.0100.012MTCO2e per square footMTCO2e per Employee2014201620172018201920202021202220230.980.870.00740.00660.00480.39Per Employee – GoalPer Square Foot – GoalPer Employee – PerformancePer Square Foot – Performance

Annual Greenhouse Gas Emissions*

Annual Greenhouse Gas EmissionsAnnual scope 2 and scope 3 greenhouse gas emmisions in fiscal years 2022 and 2023 in comparison to baseline year 2020.FY23FY22FY20Baseline Year15,113144,804159,95164,102114,18849,762101,87914,29912,292Scope 2Scope 3

In 2023, we expanded the categories included in our Scope 3 calculations to include Category 1: Purchased Goods & Services and Category 5: Waste Generated in Operations. Without these new categories, Scope 3 GHG emissions would total 73,477.33 metric tons of carbon dioxide equivalent (MTCO2e). To find out more about emissions and methodology, please see our Greenhouse Gas Emissions Report.

Year-over-Year GHG Emissions

Although our Scope 1 emissions remain negligible and do not affect our progress on emissions reduction goals, we decreased Scope 1 emissions by 57% in FY23 (YOY) and by 48% against the FY20 baseline.

Under Scope 2, our facilities-related emissions decreased by 14% (YOY), resulting in an 11% (YOY) decrease in emissions per square foot. This was despite increased facility use after the COVID-19 pandemic. We attribute this decrease to both a strong partnership between the ESG team and Global Workplace team and a strategic, intentional approach to emissions reduction in our real estate, all of which is leased.

Our Scope 3 emissions increased from FY22 to FY23, reflecting increases in business travel and employee commuting as well as inclusion of additional categories and employee headcount growth. Emissions related to business travel increased 73%, reflecting the growth of in-person business activities following the COVID-19 pandemic; however, these emissions are 41% below the FY20 baseline.

Our GHG emissions inventory and performance are verified by an independent, third-party firm, which provided Reasonable Assurance of the Scope 1 and Scope 2 data and Limited Assurance of the Scope 3 data we include in this report.