BDO’s 2024 Global Leadership Summit saw a gathering of managing partners and other senior leaders from BDO firms. Allan Evans, Global Head of Strategic Projects and Global Sustainability Lead, led a discussion on how firms within the global organisation aim to achieve net-zero by 2050. Here he reflects on the interactions.
What inspired me was the authenticity of the conversation and the simplicity of the messages shared. In the world of sustainability and ESG, it’s easy to get caught up in jargon and complexity. However, as I discussed in a previous article on speaking the language of business, keeping concepts straightforward and grounded in business terms enables sustainability teams to resonate with leaders across various areas of an organisation.
I was joined in a panel discussion by representatives of two of our Global Board firms, BDO in the UK and BDO in the Netherlands, who shared some of the highlights and challenges of their firm’s respective net-zero journeys and the pathways they have chosen to achieve net-zero. It’s clearly not an easy road, with speed bumps and U-turns that sometimes require a rethink of proposed plans. However, there is undeniably commitment within BDO to reach the destination as quickly and as smoothly as feasible.
What was clear from the discussion is that running a sustainable auditing, accounting and advisory firm is not a project that can be tackled by one team as a sideline. For many of our firms, it is rooted in their purpose and has become part of their core business strategy. This cascades into every aspect of the business, filtering into each team’s purpose.
Leon Jansen, COO/CFO at BDO in the Netherlands, stressed that as an audit, accounting and advisory organisation we are a role model in society. As such, we need to be leading the ESG agenda to be credible – for clients, our people and other stakeholders.
In discussing specific aspects of a decarbonisation plan, perhaps the most sage, yet simple, piece of advice from Andy Butterworth, COO at BDO in the UK, was to concentrate on aspects that are more straightforward and within our control, such as our own buildings or vehicle fleet.
The interconnected nature of the BDO organisation was stressed, with many firms in the BDO organisation dependent on others because of referred work. If one firm reduces Scope 3 emissions, other firms win and there is a positive ripple effect throughout on client retention and revenue.
As we know, engaging with other suppliers is also important in tackling Scope 3 emissions. But it was clear it is not as simple as disengaging with one supplier and moving to another. The supplier engagement route has a social consequence – taking our business away from a supplier simply because they do not have Scope 3 targets could end in job losses and businesses closing. Our organisation’s purpose is People helping People, so we’ve recognised it’s far better to engage to help suppliers with their own decarbonisation plans rather than simply walk away.
This led to another insight shared at the event: the procurement team as a crucial part of your decarbonisation team. In some of our firms, decarbonisation is a deliberate KPI for the procurement team, ensuring a focus on supplier engagement to reduce Scope 3 emissions as quickly and responsibly as possible. Acknowledging that it will be hard to work with every single supplier, it’s best to focus where you can have the most impact, and here applying the 80:20 rule is suggested.
It was stressed that the right data is one of the biggest challenges. It sounds obvious, but if your systems are not measuring and collating the right data, your outputs will be incorrect and it will be that much harder to monitor and measure your decarbonisation progress. Using good data leads to improved decision-making and enhanced investor confidence.
In conclusion, I believe our discussions around decarbonisation were useful and informative for the audience because we addressed challenges using practical, relatable examples. And while there was a strong focus on immediate, actionable steps to help foster a culture of continuous improvement, it’s hoped that as an organisation BDO can navigate to net-zero ahead of the 2050 deadline we’re committed to.
Reach out to let me know if the suggestions were helpful and what’s working for you in your organisation.
What inspired me was the authenticity of the conversation and the simplicity of the messages shared. In the world of sustainability and ESG, it’s easy to get caught up in jargon and complexity. However, as I discussed in a previous article on speaking the language of business, keeping concepts straightforward and grounded in business terms enables sustainability teams to resonate with leaders across various areas of an organisation.
I was joined in a panel discussion by representatives of two of our Global Board firms, BDO in the UK and BDO in the Netherlands, who shared some of the highlights and challenges of their firm’s respective net-zero journeys and the pathways they have chosen to achieve net-zero. It’s clearly not an easy road, with speed bumps and U-turns that sometimes require a rethink of proposed plans. However, there is undeniably commitment within BDO to reach the destination as quickly and as smoothly as feasible.
What was clear from the discussion is that running a sustainable auditing, accounting and advisory firm is not a project that can be tackled by one team as a sideline. For many of our firms, it is rooted in their purpose and has become part of their core business strategy. This cascades into every aspect of the business, filtering into each team’s purpose.
Leon Jansen, COO/CFO at BDO in the Netherlands, stressed that as an audit, accounting and advisory organisation we are a role model in society. As such, we need to be leading the ESG agenda to be credible – for clients, our people and other stakeholders.
In discussing specific aspects of a decarbonisation plan, perhaps the most sage, yet simple, piece of advice from Andy Butterworth, COO at BDO in the UK, was to concentrate on aspects that are more straightforward and within our control, such as our own buildings or vehicle fleet.
The interconnected nature of the BDO organisation was stressed, with many firms in the BDO organisation dependent on others because of referred work. If one firm reduces Scope 3 emissions, other firms win and there is a positive ripple effect throughout on client retention and revenue.
As we know, engaging with other suppliers is also important in tackling Scope 3 emissions. But it was clear it is not as simple as disengaging with one supplier and moving to another. The supplier engagement route has a social consequence – taking our business away from a supplier simply because they do not have Scope 3 targets could end in job losses and businesses closing. Our organisation’s purpose is People helping People, so we’ve recognised it’s far better to engage to help suppliers with their own decarbonisation plans rather than simply walk away.
This led to another insight shared at the event: the procurement team as a crucial part of your decarbonisation team. In some of our firms, decarbonisation is a deliberate KPI for the procurement team, ensuring a focus on supplier engagement to reduce Scope 3 emissions as quickly and responsibly as possible. Acknowledging that it will be hard to work with every single supplier, it’s best to focus where you can have the most impact, and here applying the 80:20 rule is suggested.
It was stressed that the right data is one of the biggest challenges. It sounds obvious, but if your systems are not measuring and collating the right data, your outputs will be incorrect and it will be that much harder to monitor and measure your decarbonisation progress. Using good data leads to improved decision-making and enhanced investor confidence.
In conclusion, I believe our discussions around decarbonisation were useful and informative for the audience because we addressed challenges using practical, relatable examples. And while there was a strong focus on immediate, actionable steps to help foster a culture of continuous improvement, it’s hoped that as an organisation BDO can navigate to net-zero ahead of the 2050 deadline we’re committed to.
Reach out to let me know if the suggestions were helpful and what’s working for you in your organisation.
