Reporting

Because the principles of corporate responsibility and sustainability align closely with Deloitte's long-held values and culture, our programs have conformed with current internationally accepted reporting indicators for some time. Going forward, we expect to detail our report according to the Global Reporting Initiative G3 Guidelines , which we fully endorse. We also acknowledge the importance of measuring our carbon footprint baseline in order to evaluate performance against targets in the years ahead.

As we progress, we expect our reporting to be thorough and transparent; and our performance to continuously improve.

Carbon Baseline

A milestone in any serious approach to sustainability is determination of a carbon baseline, followed by performance targets, on-going assessments of progress, and, if need be, course-correction. For Deloitte, sustainability is earned day-in and day-out. There is no declaration of victory, just a determination to be even better tomorrow. Measurement is essential to know where we are so we can judge where we should be going.

Approach
During fiscal 2009, we constructed our carbon footprint using calendar 2007 as our baseline. The primary standard applied was the GHG Protocol from the World Council for Sustainable Development and the World Resources Institute. Also examined for guidance were ISO 14064-1, and The Climate Registry, General Reporting Protocol. Direction for our efforts aligned with the principles of relevance, completeness, consistency, transparency, and accuracy. Since we want to know the full spectrum of our impact, both direct and indirect emissions by weight were examined as follows:

• Scope 1—direct emissions owned or controlled by Deloitte, primarily natural gas combustion
• Scope 2—primarily electricity, but also district cooling and purchased steam and
• Scope 3—primarily transportation and lodging but also paper and waste

Although we have confidence in the results, we want to confirm the accuracy through an appropriate form of verification. Following that is analysis, setting reduction goals, and sharing findings and targets. In the meantime there are a number of insights that we have gained that will guide future direction.

Baseline Insight Highlights
To a large extent results are consistent with what was expected. As a professional services firm it is not surprising that most emissions fell in the Scope 3, indirect category (over 75 percent of total) and most of that reflects air travel, the largest portion of our overall carbon footprint (over 40 percent of total). For our organization, travel is to a large extent unavoidable, primarily required to serve clients and eliminating the need for the client to travel to where we are.

The other major element of our carbon footprint is use of electricity (over 20 percent of total), which comprised almost all of Scope 2, indirect emissions. Here again, not surprising and an area of focus for our "Greening the dot" programs.

While we work to confirm the data, we will strive to reduce our carbon footprint through current greening programs.