PwC's WEF IBC Commitment

Global Annual Review 2021

Our commitment to the WEF stakeholder capitalism metrics

In January 2021, PwC became one of the first organisations to publicly endorse the World Economic Forum's (WEF) Stakeholder Capitalism Metrics. We actively encourage our stakeholders and business partners to consider adopting the metrics for their own reporting. As part of our commitment to promoting transparent and comparable reporting, we are including an overview of our disclosures based on the Stakeholder Capitalism Metrics. We do not consider some of the metrics as material for us as a professional services network, and in these cases we provide explanations for these omissions. We have made some real progress in reporting against these metrics this year, but we are committed to going further and to reporting more detail on more metrics in the years to come.

Principles of Governance

Planet

People

Prosperity

1. Principles of Governance

Metric	Description	More information	Adoption status

Setting Purpose	The company’s stated purpose, as the expression of the means by which a business proposes solutions to economic, environmental and social issues. Corporate purpose should create value for all stakeholders, including shareholders.	Section link	Full

Governance Body composition	Composition of the highest governance body and its committees by: competencies relating to economic, environmental and social topics; executive or non-executive; independence; tenure on the governance body; number of each individual’s other significant positions and commitments, and the nature of the commitments; gender; membership of under-represented social groups; stakeholder representation.	Section link	Full

Protected Ethics Advice and Reporting Mechanisms	A description of internal and external mechanisms for: Seeking advice about ethical and lawful behaviour and organisational integrity; and Reporting concerns about unethical or unlawful behaviour and lack of organisational integrity	Section link	Full
Anti-Corruption	Total percentage of governance body members, employees and business partners who have received training on the organisation’s anti-corruption policies and procedures, broken down by region. Total number and nature of incidents of corruption confirmed during the current year, but related to previous years; Total number and nature of incidents of corruption confirmed during the current year, related to this year. Discussion of initiatives and stakeholder engagement to improve the broader operating environment and culture, in order to combat corruption.	Section link	Partial. Planned to be fully adopted by FY22

Material issues impacting stakeholders	A list of the topics that are material to key stakeholders and the company, how the topics were identified and how the stakeholders were engaged.	Section link	Full

Integrating Risk and Opportunity into Business Process	Company risk factor and opportunity disclosures that clearly identify the principal material risks and opportunities facing the company specifically (as opposed to generic sector risks), the company appetite in respect of these risks, how these risks and opportunities have moved over time and the response to those changes. These opportunities and risks should integrate material economic, environmental and social issues, including climate change and data stewardship.	Section link	Full

2. Planet

Metric	Description	More information	Adoption status	Notes

Greenhouse Gas (GHG) emissions	For all relevant greenhouse gases (e.g. carbon dioxide, methane, nitrous oxide, F-gases etc.), report in metric tonnes of carbon dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 emissions. Estimate and report material upstream and downstream (GHG Protocol Scope 3) emissions where appropriate.	Section link	Full
TCFD implementation	Fully implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). If necessary, disclose a timeline of at most three years for full implementation. Disclose whether you have set, or have committed to set, GHG emissions targets that are in line with the goals of the Paris Agreement – to limit global warming to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C – and to achieve net-zero emissions before 2050	Section link	Full

Land use and ecological sensitivity	Report the number and area (in hectares) of sites owned, leased or managed in/or adjacent to protected areas and/or key biodiversity areas (KBA).		In progress	We recognise and value the importance of nature and biodiversity highlighted in our Nature Risk Rising report produced in collaboration with the World Economic Forum. We are also proud to be part of the newly launched Task Force on Nature Related Financial Disclosures. Given the type of our services, however, our direct use of land is limited. We operate from offices in 156 countries and nearly all are located in towns and cities. A certain number of our offices have specific biodiversity plans and we will continue to share their learnings more broadly across our network. We will also review where we may have offices adjacent to protected areas and/or areas of key biodiversity and will share findings and insights in future reports.

Water consumption and withdrawal in water stressed areas	Report for operations where material: megalitres of water withdrawn, megalitres of water consumed and the percentage of each in regions with high or extremely high baseline water stress, according to WRI Aqueduct water risk atlas tool. Estimate and report the same information for the full value chain (upstream and downstream) where appropriate.		In progress	Given the office based nature of our operations, our water consumption is limited and has been lower than usual in the last 12 months because a large number of our people have spent the majority of their time working from home. A number of our territories have set water consumption targets and track their progress and have reviewed the levels of water stress for the areas in which they operate. We will continue to share these findings and learnings more broadly across the network and will share any material insights in future reports.

3. People

Metric	Description	More information	Adoption status	Notes

Training provided (#, $)	Average hours of training per person that the organisation’s employees have undertaken during the reporting period, by gender and employee category (total number of hours of training provided to employees divided by the number of employees). Average training and development expenditure per full time employee (total cost of training provided to employees divided by the number of employees).	Section link (1)	Partial	For this metric we are exploring how to provide additional data in future reports

Pay equality (%)	Ratio of the basic salary and remuneration for each employee category by significant locations of operation for priority areas of equality: women to men, minor to major ethnic groups, and other relevant equality areas.	Section link	Partial	For this metric we are exploring how to provide additional data in future reports
Diversity and inclusion (%)	Percentage of employees per employee category, by age group, gender and other indicators of diversity (e.g. ethnicity).	Section link	Partial	For this metric we are exploring how to provide additional data in future reports
Risk for incidents of child, forces or compulsory labour (#, %)	An explanation of the operations and suppliers considered to have significant risk for incidents of child labour, forced or compulsory labour. Such risks could emerge in relation to: a) type of operation (such as manufacturing plant) and type of supplier; and b) countries or geographic areas with operations and suppliers considered at risk.		Not material	We do not use child, forced or compulsory labour in any of our own operations. Our suppliers have to abide by our Global Third Party Code of Conduct, or its equivalent, which is explicit in our opposition to and intolerance of any form of child labour, human trafficking and modern slavery.
Wage level (%)	Ratios of standard entry level wage by gender compared to local minimum wage. Ratio of the annual total compensation of the CEO to the median of the annual total compensation of all its employees, except the CEO	Section link (2)	Partial	We do not have data on standard-entry wage level by gender compared to the local miminum wage. However, our member firms are required to comply with all local laws, and we have confirmed with all our member firms that that they do have processes and controls in place to comply with all applicable local wage laws.

Health and safety (%)	The number and rate of fatalities as a result of work-related injury; high-consequence work-related injuries (excluding fatalities); recordable work-related injuries; main types of work-related injury; and the number of hours worked. An explanation of how the organisation facilitates workers’ access to non-occupational medical and healthcare services, and the scope of access provided for employees and workers.	Section link (2)	Partial	The safety and wellbeing of our people is a top priority. The people section of our global annual review includes some details on how we provide our people with access to heathcare services, and in particular how we address issues of mental health. Fortunately the nature of the work undertaken by PwC means that work place injuries are extremely rare.

4. Prosperity

Metric	Description	More information	Adoption status	Notes

Total tax paid	The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable VAT and other sales taxes, employer-paid payroll taxes, and other taxes that constitute costs to the company, by category of taxes.	Section link	Partial	It is a characteristic of partnerships that payment of the taxes on the income produced in the partnership is an obligation of the individual equity partners. Given this and the separate legal structure of PwC network member firms, we do not collect information at a global level on taxes paid on income by each individual firm. Our member firms also pay a range of other taxes, such as property taxes, or unrecoverable sales taxes. It is our intention to provide more information on these amounts in future years.

Absolute number and rate of employment	Total number and rate of new employee hires during the reporting period, by age group, gender, other indicators of diversity and region. Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity and region.	Section link (1) Section link (2)	Partial	For this metric we are exploring how to provide additional data in future reports
Economic Contribution	Direct economic value generated and distributed (EVG&D), on an accruals basis, covering the basic components for the organisation’s global operations, ideally split out by: – Revenues – Operating costs – Employee wages and benefits – Payments to providers of capital – Payments to government – Community investment 2. Financial assistance received from the government: total monetary value of financial assistance received by the organisation from any government during the reporting period.	Section link	Partial	Given the separate legal structure of PwC network member firms, we do not produce consolidated financial accounts for PwC globally, however we do provide some information related to revenues, net income, employment taxes paid, and so on.
Financial investment contribution	Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company’s investment strategy. Share buybacks plus dividend payments, supported by narrative to describe the company’s strategy for returns of capital to shareholders.		Not material	Since PwC is a network of privately-owned separate legal entities, this metric is not relevant to us.
Total R&D expenses ($)	Total costs related to research and development.	Section link	Full

As a member of the World Business Council for Sustainable Development (WBCSD), PwC is committed to operating at the highest level of transparency by disclosing material sustainability information. As from FY22 we are committed to reporting information in line with the WBCSD's updated membership criteria.

Mike Davies

Director, Global Corporate Affairs and Communications, PwC UK

Tel: +44 7803 974136

Contact us

Mike Davies

Director, Global Corporate Affairs and Communications, PwC United Kingdom