The New Equation empowers our people, teams and organisation.
The New Equation empowers our people, teams and organisation.
Welcome to our 2022 Global Annual Review, ‘A Year of Solving Together.’ This is the story of how PwC’s global network team of nearly 328,000 people – our community of solvers – managed the challenges and opportunities of the last 12 months and helped our clients and stakeholders navigate a successful path forward.
This year, the war in Ukraine, the continuing COVID-19 pandemic, rising inflation, an energy crisis, supply chain disruption and the pressing need to address climate change have combined to produce the most difficult set of global circumstances in my career. Managing such tough global challenges is possible only when we come together: when people with diverse skills combine forces to solve complex problems, and when business steps up to take responsibility for its impact on the society of which it is an inseparable part.
I’m so proud of the work that our talented community of solvers has delivered around the world this year to support our clients and to make positive contributions to the society we all share. I would like to thank each and every one of them for their hard work, enthusiasm and perseverance. Our people, and the wide range of skills and experiences they bring to work every day, are the engine of our success.
Launched in June 2021, our global strategy – The New Equation – is being implemented by PwC firms around the world. This strategy responds to what clients and other stakeholders across the globe tell us they need most: help building trust and achieving sustained outcomes. In this year’s Global Annual Review, we share some of the ways our people have applied that strategy to help solve important problems facing business and society. Specifically, we’ll share how our community of solvers is helping to address these four problems:
We’ve achieved significant progress on the commitments we made when we launched The New Equation in June 2021:
These actions strengthen the capabilities of our community of solvers, enhance the quality of our service, and equip us to help our clients build trust and deliver sustained outcomes.
Key to building a strong community of solvers is making PwC a great place to work. We’re delighted to be recognised in surveys as one of the most attractive employers, particularly for graduates. But we never stop trying to improve the quality of our employees’ experiences with us. We’ve developed new ways to support, care for and upskill our people as the world of work recalibrates to a new normal following the pandemic. In the last financial year, for example, we supported our people with more flexible or hybrid working options, better access to training, more competitive remuneration, and a continued push to enhance inclusion and diversity.
We believe business has a responsibility to be a force for good in society, accountable not just to shareholders but to all stakeholders: staff, customers, communities, policymakers, regulators and society at large. This is necessary for companies to maintain a social licence to operate, but more importantly it’s crucial to maintaining the healthy societies on which we all depend.
In this year's Global Annual Review, we share some of the ways we’re helping clients achieve positive outcomes for society by, for example, reducing their carbon emissions, increasing their diversity and succeeding as businesses so they can create shared prosperity for their staff, investors, and communities. We discuss some of the ways we’re helping business and society work together to produce positive social outcomes, from our advocacy for rigorous sustainability reporting standards to our work on how the tax system can serve the public interest.
We strive to be accountable for our own performance as a network. This year, for the first time, we’re seeking to report on all of the World Economic Forum’s Stakeholder Capitalism Metrics – both core and expanded – that are relevant to our business. We fully or partially comply with 35 of 42 relevant metrics, and we are seeking to improve on this in the future. In addition, we’re reporting on our global climate performance using the rigorous framework of the Task Force on Climate-related Financial Disclosures (TCFD). Though only a handful of countries where we operate require TCFD reports, we believe organisations should deliver robust climate disclosures - regardless of where they do business. So that’s what we do.
We are rightly accountable for the decisions we take in difficult situations such as Russia’s invasion of Ukraine. I am moved by the selflessness and care shown by thousands of PwC people who welcomed refugees into their homes, collectively donated millions of dollars to help Ukraine, and even helped to evacuate hundreds of children from active war zones. As a network, we determined that if sanctions are applied to Russian individuals or entities anywhere in the world, we would apply those sanctions everywhere we operate. In March, we announced that we would no longer have a firm in Russia and we ceased operations there by early July. We believe this is the right thing to do.
Throughout this Global Annual Review, we share some of our efforts to have a positive impact on society, for example:
Delivering quality work is core to everything we do. Quality is at the heart of The New Equation. It is the bedrock of building trust and delivering sustained outcomes. We consistently work together to deliver quality, independence, excellence and integrity for all of our clients - from delivering quality work that helps our clients build trust to applying a deep and broad understanding of our clients’ businesses and the environment in which they operate to drive sustained outcomes.
We know there’s always more we can do, and we strive to learn lessons from our past and improve for the future. Quality has been a primary focus of our investments in the last 12 months and will continue to be in the years ahead. We’re always exploring potential improvements, ranging from reinforcing our culture of independence to onboarding new technologies to deliver the audit of tomorrow. We have invested significant time and resources to maintain and continually enhance quality, and we’ve seen continued positive impact on our inspection results.
Our diverse community of solvers is key to our quality. All of our people – including our auditors – can call on a vast network of experts in tax, technology, law, deals, policy, risk, infrastructure, transformation, and much more – not to mention our experts in dozens of sectors. Delivering quality audits and solving complex business problems require a multitude of skills and perspectives, and that’s just what our global network offers. Our strength comes from our breadth and depth. That’s why we’re fully committed to operating a multidisciplinary model at PwC.
The impact of The New Equation is apparent in our financial performance. For the first time, PwC firms across the world earned gross annual revenues of more than US$50 billion, up 13% from our last financial year - our highest growth rate since 2005. During a difficult time for the global economy, we achieved growth in all our major firms across the world and in all lines of business.
This growth is testament to the attractiveness of our focus on building trust and delivering sustained outcomes, and to our clients’ continuing preference for the diverse skillsets provided by our communities of solvers. It is also the product of the investments we’ve continued to make over the last few years in training and recruiting the best talent and in enhancing our services.
Despite the world’s challenges, we look to the future with hope because we’ve seen firsthand what’s possible when a community of solvers comes together. We hope you enjoy reading about some of what our people have achieved this year on the big issues that affect us all.
If you have any comments or questions, please don’t hesitate to get in touch. I’ll be delighted to hear from you.
Director, Global Corporate Affairs and Communications, PwC United Kingdom
Tel: +44 7384 248 785