Environmental Sustainability Overview UK&I FY2016

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1 Environmental Sustainability Overview UK&I FY2016

2 Contents Environmental performance GHG emissions - performance overview Business travel Energy efficiency Waste and recycling External recognition Supporting our clients' sustainability programmes Environmental sustainability in action Recycling our coffee grounds Paper cup recycling Global HQ refurbishment programme Food donation scheme More information about EY can be found at ey.com. Environmental Sustainability Overview: UK&I FY2016 2

3 Environmental performance We are committed to building a better working world that embraces sustainable growth, recognising our obligation to our people and the communities in which we operate to minimise our environmental impact. We continue to build our environmental sustainability programme by employing robust measuring, monitoring and management standards. A full assessment of our environmental performance and approach to sustainability can be found via our website. An overview of our impacts and progress made during FY2016 is provided below: GHG emissions - performance overview As a professional services firm, our services are intellectually based. Emissions originate from our offices and business travel undertaken by client teams. We annually measure and report our significant emissions: Scope 1: Fuels for heating (natural gas) Diesel (for generators) Fugitive emissions (from refrigerants) Scope 2: Purchased electricity* Scope 3: Business travel (air, rail, road) Electricity transmission & distribution Well-to-tank energy-related activities Purchased goods (paper consumption) Waste disposal activities *Since October 2007 in offices where EY controls the energy supply, and appropriate energy tariffs are available, we have purchased electricity from renewable sources. Performance in each material area is shown below: Tonnes CO2e GHG Emissions FY2016 FY2015 Scope 1 1,598 1,731 Scope 2** 10,271 10,631 Scope 3 77,299 68,255 Total 89,167 80,617 **Using a location-based approach Business travel Travel is essential to providing services to our clients and is heavily influenced by our strategy for growth and service delivery. FY2016 saw a significant rise in total scope 3 emissions (13% / 9,043 t CO2e), attributable to business travel. Emissions from air travel increased (by 16% / 9,140 t CO2e). Rail travel emissions rose (by 6% / 107 t CO2e), although road travel emissions fell (by 3% / 149 t CO2e). Business travel FY2016 FY2015 Total distance (km) 238,675, ,975,285 Km per FTE 14,175 13,713 Total emissions (t CO2e) 74,162 65,064 Kg CO2e per km Tonnes CO2e per FTE This year we missed our target of keeping growth of GHG emissions from business travel (kg CO2e) at a lower % rate than our revenue growth. We believe this is due to challenging market conditions, but will continue look for opportunities to reduce the carbon intensity of our travel activities. We continually strive to reduce our impacts from travel, but recognize it may be necessary to invest in extra resources to grow the business in line with EY s ambitious targets. Energy efficiency FY2016 saw further reductions in energy consumption and related emissions across all metrics, despite our FTE headcount increasing by 10% during the period. This demonstrates our ability to continually improve the energy efficiency of operations as the business expands: Energy consumption FY2016 FY2015 Total energy (kwh) 30,383,991 30,631,309 kwh per FTE 1,805 2,010 Total emissions (t CO2e) 14,028 14,800 kwh per m Kg CO2e per kwh Kg CO2e per FTE Kg CO2e per m We continually identify opportunities for increased energy efficiency across our real estate. Examples of investments made during FY2016 include: Lift destination control software installed at 1MLP LED lighting upgrades in our Luton sites Reception BEMS software re-written to improve monitoring and control of energy consumption in our buildings We continue to rationalize our estate to deliver trust-based flexible work environments that enable our people to deliver exceptional client service. We expect further energy reductions from continuing future investment. Environmental Sustainability Overview: UK&I FY2016 3

4 Waste and recycling Waste FY2016 FY2015 Total waste (kg) 2,829,981 2,549,009 Kg waste per FTE Total emissions (t CO2e) Tonnes CO2e per FTE Waste recycling ratio (%) We are aiming to cut waste per FTE by 10% (compared to FY2015) and send zero waste to landfill (for offices where EY controls the building services). We have a wide range of waste initiatives in place, including: Follow-me printing to reduce paper and toner consumption and unclaimed document waste Food waste from our London, Birmingham and Liverpool sits is disposed of via anaerobic digestion, generating energy and fertilisers Used cooking oil from our offices restaurants is reprocessed into biofuel We re making positive progress towards our targets for waste generation and recycling we have an active staff engagement programme and have recently introduced a number of innovative schemes (see Sustainability in action section below). External recognition We are proud to have achieved several internationally recognised environmental standards: The Administration & Workplace Services function in all of our UK offices is certified to ISO Since 2011 EY s UK operations have been certified to the Carbon Trust Standard, confirming that we have measured, managed and reduced carbon emissions. EY has been certified to the Carbon Trust Waste Standard since 2015, recognizing our actions to measure, manage and reduce waste year-on-year. Our CDP 2016 Climate Change Programme submission achieved a grade of A- (i.e. Leadership level). EY has been a global signatory to the UNGC since Read more about the progress we are making in upholding these principles, and download our report. Supporting our clients sustainability programmes We employ a range of options to reduce the environmental impacts of delivering our services to clients, including: Audio conferencing, web-based meetings, extensive video conferencing and tele-presence capabilities. When travel is necessary, we encourage our people to use the most sustainable transport options and can work with clients to ensure these are fully integrated into specific engagements. A strong culture of flexible working we collaborate with our clients to integrate this leading approach into individual projects, where appropriate. Ensuring that communications and correspondence between our organisations are conducted via secure electronic media (i.e. , scanned documents, source files etc.) wherever feasible and practicable. EY also provides knowledge-based services to clients in optimising market opportunities as we shift towards a resource-efficient and low-carbon economy: Our Climate Change and Sustainability Services (CCaSS) team assists organisations transforming to a purpose driven strategy who need to understand the risks and opportunities of safety, ethical and environmental factors. They help companies exposed to material environmental and social risks, environmental and social regulations, standards and stakeholder expectations. EY s Power & Utilities Centre works with companies facing the triple challenge of improving environmental performance, keeping consumers costs down and maintaining system reliability. Our 4,400 specialists work to create strategies for future growth. EY s Energy Optimisation Practice has developed the 3D Energy Strategy to provide proactive and careful energy management for corporate consumers. As global economies grapple with the challenges of climate change, security of supply and resource scarcity, energy has become more complex. Our team can help drive the next level of energy cost reduction. Our Sustainable Supply Chain services review, improve and assess the risk of procurement functions, helping them to integrate environmental, sustainable and low carbon aspects into end-to-end supply chains. EY s Sustainable Finance Solutions service provides integrated market analysis, policy insights and scenario analysis to give decision-makers an informed view of the likely effect of climate policy. Environmental Sustainability Overview: UK&I FY2016 4

5 Environmental sustainability in action We employ a wide range of travel, energy and waste initiatives across our UK offices to reduce our environmental impact. Whilst our primary focus is always to reduce waste at source, we strive to find the best possible solution for any waste streams we do generate. Some of our most innovate schemes include: Recycling our coffee grounds Paper cup recycling Paper drinks cups are increasingly recognised as a global waste issue and are not widely recyclable. Whilst we aim to encourage our people to use travel mugs and reusable cups in our offices wherever possible, we recognize that paper cups are a significant waste stream at EY sites. Following the introduction of the SimplyCups TM coffee cup recycling scheme in Canary Wharf s retail areas, EY became the first commercial office tenant on the Canary Wharf estate to implement this waste recycling initiative The scheme is still in its very early stages at 25 Churchill Place, but we hope to use our experiences there to expand the scheme to other EY sites where possible in the future. We re working hard to look for alternative disposal solutions for our waste streams, utilising the latest innovative technologies to move waste up the hierarchy. One way we have achieved this is by sending spent coffee grounds from coffee shops, hospitality services and vending machines in London offices for recycling into biofuels and bio-chemicals by bio-bean. We ve worked closely with our waste contractor at More London Place to establish the collection scheme and were the first commercial office tenant in the Canary Wharf Estate to participate in this initiative. Disposing of coffee grounds using this scheme is around 68% cheaper than sending them to anaerobic digestion and we expect to recycle around 130 tonnes of coffee waste in this way each year. Global HQ refurbishment programme EY@Work is our programme to transform the workplace by creating a trust-based flexible environment that enables our people to deliver exceptional client service, individually and through high performing teams, and helping to attract and retain the best talent. It provides energising and efficient workspaces supported by current technology that enables our people to work fluidly both in and out of the office. From the outset we engaged our architects, designers and contractors to put sustainability at the heart of the works and ensure that every aspect of the build considered our environmental impacts - from sourcing of materials and equipment to the disposal of redundant items and construction waste. Over the two and a half years it took to complete, we: Recycled 99.6% of all construction waste generated Environmental Sustainability Overview: UK&I FY2016 5

6 In FY2017 we donated over 4,500 food items including sandwiches, salads, pastries and fruit, avoiding 785kg of food waste. We are now planning to expand our food donation programme to other sites where possible. For more information on our environmental sustainability programme including policy, targets, initiatives and performance, please visit our web site or follow us on Donated redundant floor tiles to Africa Aid for use in schools and homes Switched all monitors to energy efficient models Recycled over 97% of all redundant furniture items Sourced all timber products and materials from responsibly managed forests Food donation scheme We donate surplus unsold food items from our More London Place coffee shops and deli bar to the Crisis Skylight London centre which offers education, training and support to those who are, have been or are at risk of becoming homeless. Every year Crisis works with thousands of people to find a home, work and apply for jobs as well as look after their health and wellbeing. The scheme delivers several benefits including: Reduced food waste volumes Lower waste disposal costs Supporting social impact programmes Environmental Sustainability Overview: UK&I FY2016 6

7 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com Ernst & Young LLP, 1 More London Place, London SE1 2AF All Rights Reserved ey.com Environmental Sustainability Overview: UK&I FY2016 7