The Right Thing Our World: Sustainability

It's possible that the most intriguing word of the still young 21^st century is "sustainability." Early on, a business that was considered sustainable was one that could be expected to endure and sustain itself because it had a viable business proposition that represented more than fleeting value in the marketplace. During the post Sarbanes-Oxley era, sustainability became popular in reference to internal controls that were necessary to stay in business. Then, over the last five years, the growing wave of emphasis on the environment has made sustainability synonymous with greening and consideration of the consequences or impact that our actions have for our communities and the planet now and for generations to come.

At Deloitte, sustainability/greening is an element of our board-approved corporate responsibility (CR) policy which proclaims that the Deloitte US Firms will "advocate the sustainable use of natural resources and the environment." Unlike the other components of CR which are well-established and leaders in their fields, a formal program of greening ("Greening the dot") is relatively new to Deloitte, with 2009 representing its first full fiscal year in existence. Since its launch in January 2008, progress has been speedy and gratifying.

Integration

Our goal is to embed sustainability whenever possible into all of the decisions we make and the actions we take. Accordingly, much of what is mentioned in this Sustainability section is also found in other sections. If you are reading this report sequentially, we hope you'll consider this reinforcement rather than redundancy.

Integration is an imperative for success. All of the elements of corporate responsibility and sustainability are interconnected. Only by examining the broader context of our actions can we have a legitimate sense of net impact. For example, for those meetings deemed necessary, we would prefer that travel be minimized and that meeting tools (e.g., handout materials) be as environmentally friendly as possible. Internal Operations – Field Operations and IT – provides a significant enabler through videoconferencing and other meeting technologies which enhance meeting quality (vs. a call-in) while in most instances eliminating or reducing the need for travel. Accordingly, as we decide how to best interact with each other there are many cost, quality, and sustainability considerations that come into play.

From Hire to Retire

Sustainability touches our lives at Deloitte from hire to retire. A key part of our recruiting message is the values that lead us toward sustainability. Not only do we all strive to live those values, but for some at Deloitte they may extend literally to our "day job" as professionals in the Enterprise Sustainability group. Even when careers at Deloitte are over, sustainability doesn't end. Among current initiatives aimed at our strong alumni network is the availability of our green footprint surveys for their participation.

Engagement

Perhaps the most outstanding characteristic of greening at Deloitte has been the engagement and participation of our people. We knew from the start that greening aligned with our culture, and that there were pockets of passion within our organization that would step up, but we didn't know what level of support to expect for an initiative that depended on opt-in volunteers to be successful.

Further, we deliberately planned for the program to be empowered at the grassroots for two strategic reasons. First, we recognized that greening happens at the ground level. Even if we mandated the issue, it would be impossible to enforce on a sustainable basis. Second, we didn't want to smother individual passion with overreaching controls. For greening to work, people must want to make a difference and understand the consequences of their decisions and the impact of their actions.

What evidence is there that this approach has worked? Let's start with the individual and then the workplace.

How green is your footprint?™
In mid-February 2008, the office footprint survey was made available. Containing 25 questions to measure a person's degree of greenness, once completed the respondent is given tips on how to improve performance. To date over 28,000 people at Deloitte have taken the survey. About a year later in March 2009, the home footprint survey was introduced—How green is your other footprint?™. Thus far more than 10,000 people have participated. Consistent with the transparency that is encouraged within the sustainability community, many leaders at Deloitte have shared their footprint results with their colleagues to advance participation.

Greening the dot
Among Deloitte's more than 100 practice offices, the national completion average for Toolkit 1.0 by the end of the last fiscal year was more than 60 percent.  Further, over 70 percent of the offices were members of the 50/50 club (half or more of both project completion and footprint survey participation).

Green Leadership Council

The Green Leadership Council (GLC) was established in August 2008 as an advisory body whose mandate is to ensure communication between each region and corporate responsibility leadership. As the greening voice of the people of Deloitte, the GLC provides counsel on key issues and helps to shape national direction. Further, the GLC provides a consistent national message back to the regions.

With a representative from each region as well as specialists in the areas of Talent, Community Involvement, Field Operations, ITS, and the Enterprise Sustainability group, the GLC is also supported by the CR team and CR communications leaders. Activities over the past year have included the greening of annual events (IMPACT Day and Take Your Daughters & Sons to Work Day) as well as supporting Earth Day celebrations throughout Deloitte.

Greening Programs

Our goal is to improve and grow existing programs while adding others to fill gaps and drive our performance to higher levels.

Expansion
Our signature greening programs for the individual and the workplace—the footprint surveys and office greening—were expanded in terms of both activities and outlook. The "How green is your other footprint?™" added 25 more questions, while Toolkit 2.0 provided more office projects. Importantly, both featured sections encouraging participation within the community.

With the 13 additional office projects, we now have a total of 50 (the old ones don't go away!). For the home footprint survey, we recognize that a green mindset cannot be turned on and off at the borders of the office; you have to be "all in." Further, the timing of the home footprint has additional relevance within a tough economy as greening usually saves money over the long term and sometimes immediately. So being green can also put some green in your pocket.

Green Meetings, Travel and Videoconferencing
During fiscal 2009 green meeting pilot studies were conducted which generated learning that is being incorporated into meeting protocols for the future. When travel cannot be avoided, Deloitte Travel professionals provide green options for lodging and car rentals. Working and meeting virtually provides both cost and environmental benefits. Started before the current economic downturn (which certainly intensifies the search for cost savings), our investment in videoconferencing throughout Deloitte transforms the way we work with each other and like-minded clients. By the end of fiscal 2009, a total of 70 videoconferencing spaces were in operation.

LEED Certification
As part of our Green Real Estate initiative, LEED (Leadership in Energy and Environmental Design) has become the operative standard whenever cost feasible. During fiscal 2009, we established a process, including criteria to be observed, in order to incorporate LEED into retrofits, office reconfigurations, new facility construction, and, importantly, Deloitte University which we expect to be operative in 2011.

Green Supply Chain
We recognize that the breadth of our responsibilities extend far beyond the workplace and are especially connected to those with whom we do business. We embrace a life-cycle perspective of our responsibilities. Over the course of fiscal 2009, our strategic procurement services focused on sourcing products and services that have minimal impact on the environment, collaborating with suppliers to modify processes for greater sustainability, and increasing the proportion of diversity suppliers among our relationships.

We know there is much more to be done, but third-party recognition received in fiscal 2009 is gratifying—Deloitte is among the top 50 companies for supplier diversity (Poder Enterprise), and also is recognized as a buyer of diversity products and services (Diversity Business).

Deloitte Touche Tohmatsu (DTT) Collaboration
Sustainability issues are everywhere and forever. There is no endpoint and the consequences cross all borders. While initial focus is properly internal, the magnitude of the challenge demands worldwide collaboration for a global response. As the largest member firm of DTT, Deloitte is keenly aware of our responsibility to learn and innovate and, subsequently, share knowledge and capabilities with other member firms.

During fiscal 2009, Corporate Responsibility Officer Tom Dekar has served on the global CR Council and headed the committee charged with developing a global CR policy for adoption by all member firms. The result was a policy based on the US model. Another highlight was development of the first DTT CR report which will cover fiscal 2009. We look forward to benefiting from the energies, insights, and resources of member firms to magnify our collective positive impact.

Associations

As a member firm of DTT, Deloitte shares a strong heritage of public engagement with significant worldwide initiatives including the United Nations Global Compact. DTT is a founding signatory and has been actively involved since its inception in 2000. Deloitte is directly involved with the Business Roundtable's Climate RESOLVE (Responsible Environmental Steps, Opportunities to Lead by Voluntary Efforts). Deloitte agrees with the view of Roundtable CEOs that there are "many practical, cost-effective opportunities to improve energy efficiency and reduce, avoid, offset or sequester GHG emissions—without serious economic disruption."

We expect to join other worthy associations in the year ahead in order to learn and better contribute to common goals of sustainability.