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1、02023 PwC China Environmental,Social and Governance(ESG)ReportReady for the future1Chairmans letterRaymund ChaoPwC Asia Pacific and China ChairmanChinas transition to a low-carbon and technology-driven economy is enabling the countrys higher-quality growth.Driving sustainable development through pol
2、icy,emerging green and high-tech industries,and investment in advanced infrastructure and services will create greater opportunities for China,the region and the world.We remain resolute in supporting Chinas modernisation goals.In a world that is increasingly shaped by the interplay of climate chang
3、e,technology disruption,demographic shifts and geopolitical fracturing,PwC China is bringing its purpose to life by focusing on building trust where it matters most,assisting our clients to transform their business models,and responding to climate change.We are harnessing the power of AI,data and em
4、erging technologies to drive this change,bringing our deep industry knowledge and expertise from across our multi-disciplinary global organisation to create powerful outcomes for our clients and for society.Our 2023 PwC China ESG Report highlights our continuing efforts to address key environmental
5、challenges,promote social responsibility and uphold strong governance principles.By sharing our achievements,challenges and goals,we aim to engage stakeholders and foster a collective understanding of our journey towards a more sustainable and responsible future.Since we published our last report,th
6、e world has encountered its share of challenges,including increasing geopolitical complexities,extreme weather events caused by climate change and a continued expectation from the public for corporates to be accountable and live up to their values.With the economic and societal implications that hav
7、e arisen as a result,the last few years have truly tested our values.Amidst this landscape,we continue to persevere and adapt,leveraging the power of the PwC network.Our purpose of building trust in society and solving important problems is why we exist.Our five core values act with integrity,make a
8、 difference,care,work together,reimagine the possible-define how we behave.Today,having a clear purpose and strong values are all the more important.They help our people find ways to reframe challenges as opportunities.They strengthen our resilience as we face an environment that is increasingly com
9、plex to navigate.We are proud of our achievements and the impact that has been created for our stakeholders.22023 has been full of milestones for PwC China.We are very honoured to be ranked number one by the Chinese Institute of Certified Public Accountants(CICPA)Top 100 Accounting Firms in China fo
10、r the 20th consecutive year.We are also beyond proud to call Hong Kong,China home for the last 120 years we look forward to the next 120 years and beyond!In April 2023,we officially broke ground on our flagship Reimagine Park in Sanya,Hainan Province.Due for completion in 2025,Reimagine Park will br
11、ing an immersive learning experience to life through both physical and virtual connectivity,focusing on sustainability,digital innovation,wellness and mobility.A human-led and tech-powered workforce.We believe it is our duty to nurture,reskill and upskill our community of over 25,000 people our comm
12、unity of solvers-with cutting-edge capabilities in digital,ESG and leadership.We recently made a five-year commitment to invest in Responsible AI,and so ensure that we remain ready for the future.We empower our people by providing flexible work options so that they can choose where,when and how they
13、 work.We have also made significant investments in wellbeing by introducing the Wellness Reimagined App 2.0,which provides personalised health solutions for our peoples mental,physical and social wellness.Action on ESG issues is central to our strategy.PwCs ESG Academy is instrumental in equipping o
14、ur people to integrate ESG into every aspect of their work.Knowing that what gets measured gets done,we are a leader in promoting a standard approach to ESG metrics and transforming business models towards net zero.In FY23,we achieved a 35%reduction in scope 3 business travel emissions compared to a
15、 FY19 baseline.We are also working towards having 50%of our suppliers by emissions setting their own science-based emission reduction targets by FY25.We are reporting our climate-related disclosures specific to PwC China for the first time this year,in line with climate-related disclosures published
16、 by our global network since 2021.We help companies manage ESG risk and build resilience.PwC China is helping build resilience and create greater value in our clients supply chains by incorporating new audit standards,digitising operations and transitioning to a lower carbon future.Our multi-discipl
17、inary model is a competitive strength that allows us to deliver the broadest set of capabilities to build trust and drive sustained outcomes.We work with our clients and stakeholders through our Climate and Sustainability practice to support their efforts to make a net zero future a reality for all.
18、We help communities develop the skills they need to thrive.Businesses need societies to flourish.To this end,PwC China works with our people,NGOs and social enterprises to drive sustainable outcomes in our communities.We do this through donations to philanthropic projects,building the capacity and s
19、kills of NGOs and supporting our people to participate in volunteering activities.In FY23,we reached 208,991 individuals,NGOs and social enterprises through our community programmes.We also launched the Beijing PwC Zhong Tian Charitable Foundation,following the approval of the Beijing Municipal Civi
20、l Affairs Bureau.3At PwC China,we are getting ready for the future.We are investing in our people and cutting-edge digital capabilities.Powered by our New Equation strategy,we are focused on continuing to build trust and delivering sustained outcomes to some of the worlds biggest problems,underpinne
21、d by the highest standards of quality.In particular,we are committed to the following key themes,which will define the future:nTrust in what matters.Accountability is ourtop priority.We are focused on helping ourclients build trust in the most important areason their strategic agenda,giving themand
22、their stakeholders the confidence to moveforward.nClimate.We help our clients to reconfiguretheir businesses and ecosystems to balanceor eliminate their greenhouse gas emissions,report with confidence and focus on value-creation while managing risk.We arealso dedicated to transforming our ownbusines
23、s to support our climate goals.nBusiness model transformation.We arecommitted to helping our clients to achieve anend-to-end transformation of their businessmodels,powered by digitalisation and withsustainability as a key outcome.The coming years will demand all-out efforts to ensure sustained outco
24、mes are delivered for the economy,environment and society.We stand ready to play our part,working together with our clients,stakeholders and communities to be ready for a more sustainable and equitable future.4Table of Contents02FY23 highlightsAbout PwC ChinaOur sustainabilityapproachEnvironmentClim
25、ate-related disclosuresPeopleTransformationGovernanceAbout this reportCommunityPerformance dataClimate contentindexWEF IBC content indexGRI content index5030405060708092975712412601Chairmans letter145FY23 highlights025625,651total people(21%since FY21)Future-fit skil
26、ls for our peoplePwC China is committed to upskilling our people continually,including in Digital and AI,ESG and Leadership competencies.Our ESG GO campaign equips our people with future-fit skills.It was recognised by the Xinhua Media Group Training Magazine in its 2022 Innovative Programme of Tale
27、nt Development.Read moreAmplifying wellness and learning through techWe introduced the revamped and custom-built Wellness Reimagined App 2.0 to offer our people a range of wellness-related products and services.We also award PwC Badges,including the Inclusive Mindset and Climate Impact Badges,provid
28、ing tech-enabled recognition for ongoing professional growth and development.Read more77training hours per personAdopted PwCs Disability Inclusion Strategy63%of staff promotions 64%of new hires46%of partner admissions39%of partners(FY21:35%)82%are proud to work at PwC China.74%would recommend PwC Ch
29、ina as a great place to work.Performance highlights Empowering our people to support their current and future successRatio of females:7Re-imagining our business for a low-carbon futureReducing travel emissionsWe joined Asias first major corporate Sustainable Aviation Fuel(SAF)programme to reduce car
30、bon emissions,and expanded coverage of our high-speed rail initiative to 15 routes,supporting our people to make lower-carbon travel choices.Read moreClimate-related disclosuresWe have aligned our climate reporting with the recommendations of the Taskforce on Climate-related Financial Disclosures(TC
31、FD)Framework for the first time,including details of our climate governance,strategy,risk management and metrics and targets.Read moreSourcing100%Renewable electricityin electricity consumption per capita(vs FY19 baseline)-29%52,304tCO2eemission offset through carbon credits10%of suppliers with vali
32、dated Science Based Targets(by emissions)of our office space is LEED/BEAM certified and/or located in LEED/BEAM certified buildings(FY21:70%)95%87%reduction in scope 1&2 emissions(vs FY19 baseline)35%reduction in scope 3 business travel emissions(vs FY19 baseline)8PwC China professionals served 33 n
33、ational,provincial,municipal and district level organisationsCultivating a flourishing society:creating positive impact37 report submissions made by PwC China professionals on national matters2,748Volunteers(27%since FY21)86,057 skilled volunteer and professional participant hoursRMB 12,152,262 in c
34、ommunity investment donations,including RMB 8 million funding to establish Beijing PwC Zhong Tian Charitable FoundationContributing to sustainable development in ChinaWe leverage our expertise to support key national strategic initiatives,contributing to Chinas economic and social development.Aside
35、from serving on national and provincial committees,we are also directly supporting rural communities,including Yongshen County,to promote sustainable revitalisation.Read moreServing our local communitiesWe work with several NGOs to create meaningful social change through donations,pro bono or discou
36、nted projects and volunteering.This includes engaging our people as mentors for underprivileged students through the Hong Kong SAR Governments“Strive and Rise”programme.We also sponsor charitable and public welfare initiatives,and launched the Beijing PwC Zhong Tian Charitable Foundation in 2023.Rea
37、d more219Top Employer in Chinaranked by Top Employer InstituteCelebrating 120th anniversary of PwC Hong KongIgniting innovations:fuelling prosperous growthFuelling prosperous growthFor 20 consecutive years,we have been ranked as the Number 1 Accounting Firm by the Chinese Institute of Certified Publ
38、ic Accountants(CICPA).We also invest in research and innovation in our services to address major priorities,including climate and sustainability,digital and data governance.Read moreResponsible AIOver the next five years,we plan to inject RMB 3 billion into AI development and engage our 25,000-stron
39、g workforce in a strategic process to integrate Responsible AI into helping clients build trust and achieve sustained outcomes.Read more3 M&A Service awardsrecognised by the CMAA(China Mergers&Acquisitions Association)in the categories of Management,Financial Service and AdvisoryMost Innovative Deal
40、s Advisor for Automotive Award 2022recognised by“Automobile&Parts”MagazineBest Service provider of STAR 2022recognised by Shanghai Stock Exchange Science and Technology Innovation Board10Global Green Finance AwardThird International Financial Forum(IFF)Among the 20 domestic and international award r
41、ecipients,we were acknowledged with this award as the only accounting firm.This award underscores our contribution to promoting green finance and sustainable development,as well as our commitments to innovation in the field of green investment and financing.Green Development Service Demonstration Ca
42、se AwardChina International Fair for Trade in Services(CIFTIS)2022 Our digital solution,the Emissions Tracker,received the Green Development Demonstration Case award by CIFTIS for its ability to automate the tracking,reporting and management of corporate greenhouse gas emissions.By incorporating RPA
43、(Robotic Process Automation)technology,this tool enables real-time tracking and calculation of emissions,further supporting organisations to enhance their carbon management capabilities.Best Supporting Institution AwardGreen Investment principles(GIP)For two consecutive years we have received the Be
44、st Supporting Institution Award for our contributions to the field of environmental and climate risk management.As the secretary of the GIP Environmental and Climate Risk Assessment Working Group,we remain committed to advancing and fostering climate risk management practices for regions involved in
45、 the Belt and Road Initiative.Leader in International Data Corporation(IDC)MarketScapes Assessment of Global ESG/Sustainability Strategy Consulting ServicesIDCTop Employer of China 2022Top Employer China 2022Top Employer Hong Kong,China 2022This award highlights our commitment to creating a positive
46、 and engaging work environment for our employees.This achievement attests to the firms high performance and achievements in Mainland China and Hong Kong SAR towards building a workforce that is agile and fit for the future,creating an environment that enables growth and development.Digital Innovatio
47、n of the YearInternational Accounting Forum&Awards,LondonPwC China was awarded 2023 Digital Innovation of the Year at the International Accounting Forum&Awards in London.The award recognises PwC Chinas AI capabilities as a new initiative or innovation in audit which made a major change in improving
48、audit quality,efficiency or added value to clients.WEPs(Womens Empowerment Principles)Transparency&Reporting AwardThis award is a recognition of our support for womens empowerment and transparent gender data reporting.We have established accountability frameworks,set targets,consistently reported,an
49、d taken appropriate steps to improve our performance in gender indicators.Awards highlights We have received recognition from IDC,a renowned analysis firm,for our expertise in enhancing our clients sustainability frameworks.The evaluation assessed our approach to ESG transformation,net-zero strategy
50、 products,assurance services and ability to deliver high-quality services to clients with varying levels of ESG maturity.1103AboutPwC China1112Who we arePwC Mainland China,Hong Kong SAR and Macau SAR work together to create value for our clients and our people across the region.We provide organisati
51、ons with the professional services they need,wherever they may be located.Collectively,we have over 800 partners and more than 25,000 people.We are located in these cities:Beijing,Shanghai,Hong Kong,Shenyang,Tianjin,Dalian,Jinan,Qingdao,Zhengzhou,Xian,Nanjing,Hefei,Suzhou,Wuxi,Wuhan,Chengdu,Hangzhou
52、,Ningbo,Chongqing,Changsha,Kunming,Xiamen,Guangzhou,Shenzhen,Macau,Haikou,Zhuhai and Guiyang.At PwC China,we are committed to delivering high quality,innovative solutions that help our clients build trust and deliver sustained outcomes.We work with the worlds leading organisations on their most chal
53、lenging strategic problems,helping them build enduring success while keeping abreast of fast-changing market trends.We unite experts in tax,law,finance,strategy,assurance,ESG,policy,infrastructure,data analytics,technology and many other areas enabling us to address overarching challenges effectivel
54、y.We also combine our peoples expertise with cutting-edge technology.Our Purpose and ValuesWe are purpose-led and values-driven.Our purpose is to build trust in society and solve important problems.Our values define who we are,what we stand for and how we behave.In all our interactions with clients,
55、our people and other stakeholders,we work together,act with integrity,reimagine the possible,care and make a difference.We embrace The New Equation,harnessing the power of our people to collaborate with our clients in creating innovative solutions rooted in digital transformation and sustainability.
56、By doing so,we foster prosperity not only across China but also for our clients,paving the way for a future where trust and lasting outcomes are achieved.”Elton YeungVice Chairman,PwC China 12“13The New Equation is PwCs global strategy to deliver on our Purpose.The New Equation focuses on two interc
57、onnected needs that our clients face:nTrust has never been more important.To address the evolving demands of customers,employees and society,businesses need to implement changes that all stakeholders can trust.nOur clients seek sustained outcomes that will enable them to achieve their objectives.We
58、help clients deliver these outcomes by bringing together a broad range of capabilities.Originally launched in FY21,The New Equation responds to what clients and other stakeholders tell us they need most help in dealing with.As the pace of change continues to accelerate,and the world experiences para
59、digm shifts from these unfolding trends,our clients need help more than ever to address them.In order to deliver on these needs,we focus on the following key themes:nTrust in what matters.Ours is a business built on trust.Our clients rely on us to maintain independence,conduct high-quality audits an
60、d protect their confidential information.We are focused on helping our clients build trust through our sustainability,AI,data validation,digital transformation,privacy and cyber security services.nClimate.The call for immediate action is becoming more urgent.Our aim is to lead our clients transition
61、 to a lower-carbon future.Leveraging our experience,we advise clients on sustainability and net zero transformation.We provide expertise in areas such as risk and resilience,reporting and assurance,sustainable capital and energy transitions for our clients.The New Equation and our strategic investme
62、nts for the future14nBusiness model transformation.Over the past year,we have continued to support our clients as they shape their digital transformation plans.We have helped redefine business strategies to incorporate ESG,to embed sustainability into operations,and to ensure that our clients meet t
63、axation,disclosure and regulatory requirements.We make meaningful contributions to Chinas economy and foster thriving communities.In line with Chinas 14th Five-Year-Plan and the objectives set forth in the 20th National Congress of the Communist Party of China(CPC),we support Chinas major national s
64、trategies to drive continued growth and development through our priorities and investments.To build the trust and achieve the sustained outcomes our clients need,we will invest in five strategic areas:Digital redesignDigital products and solutionsEnvironmental,Social and Governance(ESG)Regional Econ
65、omic ClustersWorkforce of the future15Digital redesignTo stand out in todays intensely competitive market,businesses need new operating models that enable the digital transformation of their entire organisation.PwC China combines market insights,digital capabilities and strategic partnerships with i
66、ts own deep experience to help businesses to achieve their strategic goals.By incorporating ESG considerations into digital redesign strategies,we align our technological advances with strong governance,fostering a more resilient digital future.Digital products and solutionsTo create cutting-edge di
67、gital products,PwC China integrates our unparalleled insights,leading technology,and human-centred design with specialised digital expertise.Wesuccessfully navigate Chinas regulatory,technological,data,and cloud environments to confidently present our digital products to our clients.Acknowledging th
68、e importance of ESG factors in the development of our digital products,we incorporate stakeholder-centred design principles and ethical data management to contribute to a more sustainable future.ESGPwC China has invested in deep subject matter expertise,digital tools,firm-wide upskilling and externa
69、l alliances to accelerate the integration of ESG perspectives across all our business services,and to enable our clients to deliver high-quality ESG reporting and ESG-led strategic transformations.Regional Economic ClustersRegional Economic Clusters are a key component of Chinas 14th Five Year Plan.
70、The strategy helps to drive coordinated city growth with adjacent city clusters,and advance shared prosperity.PwC China promotes this strategy by offering a full suite of services for the planning,development and upgrading of Regional Economic Clusters.This includes improving infrastructure and cont
71、ributing to a sustainable environment for current and future generations,strengthening public services and industrial development for long-term prosperity.Workforce of the futureWe are redesigning our workforce strategy by offering training programmes and upskilling opportunities to create afoundati
72、on for our people to grow both personally and professionally.To ensure our strategy aligns with the individual needs of our employees,we actively respond to their feedback and perspectives.16At PwC China,we support several of the United Nations Sustainable Development Goals(UN SDGs),which were estab
73、lished in 2015 as a global call for a more sustainable future.The following table summarises our initiatives in support of UN SDGs.We have also undertaken an internal mapping exercise to identify the specific targets under each goal where we can make the most significant impact.UN SDGsMost-relevant
74、SDG targetsPwC China operations4.3,4.4Our commitment to education is broad and focuses on equipping our people with the skills to succeed in the future.Our upskilling and education initiatives also aim to address the digital skills gap in communities where we operate.5.5Gender equality is at the for
75、efront of our inclusion strategy.We are committed to promoting the leadership development and economic empowerment of female employees in the workplace.8.2,8.3Our strategy The New Equation addresses two interconnected needs that every organisation faces:building trust and delivering sustained outcom
76、es for stakeholders.Delivering this strategy means creating jobs and boosting productivity through innovation,creativity and technology.13.2,13.3We are taking proactive measures to reduce our climate impact,and have committed to reaching net zero emissions with 2030 goals.We are also working with ou
77、r clients,suppliers and others to support climate change and ESG transformation in the broader economy.Our support for the UN SDGs17PwC China is engaged in a wide range of partnerships to deliver greater impact and to advance progress on ESG issues.World Economic Forum(WEF)As a strategic partner of
78、WEF,we deliver sustained outcomes through active collaboration between business,government and other key stakeholders.PwC China collaborated with WEF on The Post-2020 Global Biodiversity Framework and What it Means for Business,a white paper focusing on business-relevant targets of the post-2020 Glo
79、bal Biodiversity Framework(GBF).CDPPwC China signed a strategic cooperation agreement with CDP as a gold partner of CDPs Carbon Disclosure Project and Science-based Targets Initiatives.This agreement aims to advance carbon disclosure efforts and help organisations to accelerate their low-carbon stra
80、tegies and their transition to green and low-carbon business models.We will work alongside CDP to provide professional services in low carbon transition for clients in markets in Mainland China,Hong Kong SAR,Macau SAR,and Taiwan.Enterprise Financial Management Association of China(EFMAC)Our membersh
81、ip in the EFMAC as a vice president unit member underscores our dedication to promoting sustainable business practices,while also assisting in the establishment of the ESG Sub-Committee within the association.Together with EFMAC and its ESG group members,we have engaged in ESG events including estab
82、lishment of the Pollinator Protectors Alliance and the Rural Capacity Upgrading:Sustainable Development of Agriculture Industry International Forum.Global Joint Initiative on the Partnership of Biodiversity and Finance(PBF)Organised by the World Resources Institute(WRI),International Finance Forum(I
83、FF)and other international stakeholders,PwC China attended PBF as one of the first member institutions.PBF aims to address biodiversity conservation funding shortages,and to encourage the active participation of financial institutions in global biodiversity and governance,improve capital investments
84、 on nature conservation and efforts in addressing climate change.We continue to take action on corporate sustainability and knowledge sharing to accelerate the achievement of the UNs biodiversity conservation goals.ISSB Transition Implementation Group(TIG)and IFRS Taxonomy Consultative Group(ITCG)As
85、 the only professional service organisation representatives in China,we support the International Sustainability Standards Board(ISSB)in advancing the implementation of international sustainability disclosure standards.We also serve on the expert advisory group to provide our expertise to the Intern
86、ational Accounting Standards Board(IASB)and the ISSB on digital taxonomies and related activities.International Capital Market Association(ICMA)and Climate Bonds Initiative(CBI)Our partnership with the ICMA and CBI signifies PwC Chinas commitment to the sustainable finance domain.By acquiring the ob
87、server qualification for the Green Bond Principles(GBP),we play a crucial role in monitoring and evaluating green bond activities.Together with other institutions,we promote best practices in international finance markets and drive advances in green finance.Collaborations for greater impact1718Insti
88、tute of Finance and Sustainability(IFS)PwC China collaborated with IFS on the Financial Support Green Technology Forum 2022.This event facilitated discussions on net zero transitions for Chinese energy technology companies and ESG practises for listed companies.UNI INCLUSIVEIn late 2022,PwC China si
89、gned a strategic co-operation agreement with UNI INCLUSIVE to leverage the respective strengths of both parties to provide commercial bank clients with one-stop integrated solutions of consulting services and digital systems in sustainable finance.WWD ChinaA strategic alliance has been formed betwee
90、n PwC China and WWD China with the aim of leveraging the expertise and resources of both parties to promote sustainability and enhance their influence in the fashion industry and consumer sector.China Impact Investing Network(CIIN)In FY23,the Chinese Impact Measurement and Management(IMM)Guide 1.0 w
91、as released with the help of PwC China and a network of support organisations.With the core themes of sustainable agriculture and rural development,life sciences and healthcare,green economy and inclusive development,the guide provides investors with impactful ESG solutions,improving their decision
92、making in investment,and adding value to businesses with ESG practices.Cathay PacificIn FY23,PwC China joined Asias first major Corporate Sustainable Aviation Fuel(SAF)Programme with Cathay Pacific.As one of the first eight corporate launch customers,we are committed to reducing carbon emissions by
93、purchasing SAF through this first major programme of its kind in Asia.The programme provides us with the opportunity to reduce our carbon footprint from business travel by contributing to the use of SAF from Hong Kong International Airport(HKIA)on Cathay Pacific flights.Hong Kong Green Finance Assoc
94、iation(HKGFA)PwC China was once again a platinum sponsor in the Hong Kong Green Finance Association(HKGFA)Annual Forum 2023.The theme for the Forum was“Transition to Net Zero:From Ambition to Action”and we shared insights on Achieving Credible Science-based Transition Pathways.Asian Corporate Coalit
95、ion for Climate Change Resilience(A4CR)In collaboration with the World Green Organisation(WGO)and Arup,PwC China is the technical advisor to the Asian Corporate Coalition for Climate Change Resilience(A4CR).This is a first-of-its-kind climate-focused business community in Asia,which aims to accelera
96、te climate action and know-how for businesses.Hong Kong Council of Social Service(HKCSS)PwC China empowers NGOs to improve governance and build trust through the use of our expertise and resources.Together with the Hong Kong Council of Social Service(HKCSS)we support NGOs through channels such as ta
97、rgeted knowledge-sharing sessions and toolkits.Topics range from transparency checks to internal governance and risk controls,data management and ESG.World Business Council for Sustainable Development(WBCSD)We hosted a series of Net Zero Delivery masterclasses to improve the knowledge of member comp
98、anies in the Accelerate Climate Action-SOS 1.5 initiative.This was part of our ongoing commitment to delivering climate-related education,supporting the World Business Council for Sustainable Development(WBCSD).181904Our sustainability approach1920Our sustainability approach focuses on three key are
99、as Environment,People,and Community.We believe these are essential to achieving a sustainable future that is human-led and tech-powered.Our approach focuses on empowering our people to embrace sustainable work practices,transforming to net zero in our operations,and making meaningful contributions t
100、o our communities through a wide range of impactful initiatives.Our approach is upheld by an effective governance framework that demonstrates leadership commitment and accountability for sustainability at PwC China.We also place great importance on driving digital and sustainable transformation to s
101、upport our clients efforts in adjusting to a new normal.This includes the business transformation necessary to achieve growth,resilience and adaptability,and is underpinned by strengthening the trust and governance that is needed to protect businesses from climate,data,cybersecurity and other risks.
102、Our sustainability approachFocus areaDescriptionEnvironmentWith a major focus on responding to climate change,we embed environmental considerations into existing systems and processes to ensure our efforts are sustained over the longer term.We use our expertise,knowledge and networks to raise awaren
103、ess of environmental issues within the business community,bringing stakeholders together to collaborate on relevant topics.PeopleOur people are the foundation of our firms success.To meet our clients evolving business demands and achieve our strategic goals,we reimagine every step of the workforce s
104、trategy and reinvent our working approach.A variety of measures are put in place to upskill and build talent with future-proof competencies,fostering a culture of wellness and flexibility in which our people can live healthily,work effectively,and be socially connected.CommunityOur strategies on com
105、munity engagement focus on solving social issues and driving social development.We support the development of comprehensive education for everyone,fostering educational and digital equity,through our collaborative efforts with our people,NGOs,and social entrepreneurs.21Stakeholder engagementOur stak
106、eholders include our people,businesses,government and regulators,NGOs and non-profits,future talent,and society.As part of our stakeholder engagement process,we have established diversified channels to facilitate exchange and understanding.We conduct this through both internal and external communica
107、tion channels.We carefully design the nature and mode of our communication to enable continuous and impactful dialogue with stakeholders on relevant ESG topics.Our peopleOur staff and partners are at the core of who we are.They drive our success by demonstrating the strategic direction of the firm a
108、nd by delivering exceptional services to our clients.We actively listen to our people through various channels,including real-time dialogue with the firms leaders,focus groups with our staff and regular feedback and follow-up communications.BusinessesOur clients,suppliers and business partners are f
109、oundational to our work and operations.We engage through active day-to-day communication with our clients and on-going supplier screening,as well as regular business events and forums.22Government and regulatorsAdhering to current regulations and gaining insight from the broader business community i
110、s fundamental to meet government and regulatory expectations.We continue to work with regulatory bodies through active dialogue and joint projects,working committees and consultations,and community events.NGOs and non-profitsEnhancing capacity and fostering exchange with NGOs is important in unlocki
111、ng their full potential and creating social impact that benefits the wider community.We regularly engage our NGO partners with corporate sustainability initiatives and collaboration programmes to spur positive impact.Future talentWe strive to attract and retain top talent who are equipped with futur
112、e-fit and diverse skills to join our workforce and continue our standing as an employer of choice.We reach out to young talent via campus talks and recruitment events,and engage with experienced professionals through channels such as job fairs and social media channels.SocietyWe advance PwCs purpose
113、 of building trust and solving important problems in the wider community by creating meaningful impact with our clients and communities.Through media interviews,publications,our websites and social media channels,we deliver our insights and receive feedback from the public.23Materiality assessmentWe
114、 conduct periodic assessments to refresh our latest material topics and effectively act upon our ESG priorities.Several updates were made during the FY23 exercise,including adding“Environmental Stewardship”as a material topic.This reflects our focus on not only managing our own environmental footpri
115、nt,but also actively engaging with our people and external stakeholders on climate actions,such as supporting our clients to reduce their emissions and engaging our suppliers to tackle their climate impact.As part of our stakeholder engagement and review,we have also made reference to sources includ
116、ing the following:nThe Annual Government Work Report nThe Outline of the 14th Five-Year PlannChina Securities Regulatory Commission Annual ReportnPwC 26th Annual Global CEO Survey China ReportnGlobal Crisis and Resilience Survey 2023 China ReportnHopes and Fears 2022 Mainland China&Global ReportnUni
117、versum Talent Research 2022nGlobal People Survey PwC China resultsnPwC China Pulse SurveynPrivate Sector Awareness of the Sustainable Development GoalsnGlobal standards,including SASB and MSCI24Level of significanceCriticalVery ImportantImportantEnvironment Climate change Biodiversity and natural re
118、source conservation Waste management Environmental stewardshipPeople Employee well-being,safety and security Diversity and inclusion Skills for the future Talent attraction,retention and engagementCommunity Community engagement and investmentTransformation Data privacy and security Economic performa
119、nce Risk and crisis management Quality of work Digital RedesignGovernance Ethics and integrity Public policy engagement Transparency and accountability2425Our materiality assessment process1ResearchConduct desk research and benchmarking analysis2IdentificationIdentify updated list of material topics
120、3PrioritisationPrioritise material topics through stakeholder engagement4ValidationSenior management revision and validation of material topics5IntegrationIntegrate results and findings into our sustainability reporting and ESG strategy2526Area of focusMaterial topicImpacted stakeholdersEnvironmentC
121、limate changeAll stakeholders across our value chainBiodiversity and natural resource conservationAll stakeholders across our value chainEnvironmental stewardshipOur people,Businesses,NGOs and non-profits,SocietyPeopleEmployee well-being,safety and securityOur people,Future talentDiversity and inclu
122、sionOur people,Businesses,Future talent,SocietySkills for the futureOur people,Businesses,Future talentTalent attraction,retention and engagementOur people,Businesses,Future talentCommunityCommunity engagement and investmentNGOs and non-profits,SocietyTransformationData privacy and securityBusinesse
123、s,Our people,Government and regulatorsEconomic performanceBusinesses,Our people,Government and regulatorsRisk and crisis managementBusinesses,Government and regulators,Our peopleQuality of workAll stakeholders across our value chainDigital redesignAll stakeholders across our value chainGovernanceEth
124、ics and integrityAll stakeholders across our value chainPublic policy engagementGovernment and regulators,Businesses,SocietyTransparency and accountabilityAll stakeholders across our value chainWe identified the following list of material topics.Clicking on each of the focus areas below will bring y
125、ou to the relevant section in this report,where we elaborate on our actions regarding our material topics.26FY23 material topics2705EnvironmentRe-imagining our business for a low-carbon future2728We are improving our own operations and working with our clients and suppliers to solve common challenge
126、s.We are also collaborating with a network of local and global alliances to support decarbonisation beyond our own value chain.Our strategic approach to deliver on our net zero commitments ensures comprehensive and methodical measures are adopted in a way that enhances collaborative action and drive
127、s real performance.PwCs commitmentNet ZeroClientsPwC will work with its clients to support their efforts to make a net zero future a reality for all.Building on existing client work in sustainability and net zero transformation.Climate agendaPwC will continue its long-standing programme of research
128、and collaboration with business,policy makers,and NGOs to accelerate the transition to a net zero economy.OperationsPwC will reduce its emissions in line with a 1.5 degree climate scenario,including a 50%absolute reduction in scope 1 and 2 emissions and a 50%absolute reduction in business travel emi
129、ssions from a FY19 baseline by FY30.In addition,PwC will accelerate its transition to 100%renewable electricity and,to mitigate its impacts today,PwC will continue to offset its emissions through high-quality carbon credits.Supply chainPwC will engage with key suppliers,encouraging and supporting th
130、em to achieve net zero.We commit that 50%of our global purchased goods and services suppliers by emissions will have set their own science-based targets to reduce their own climate impact by FY25.Using FY19 as a base year,we will regularly and transparently report on progress against our commitment
131、and targets.Our commitment covers our entire network of member firms.ClientsHelping clients transition to a net zero futureClimate agendaCollaborating with business,policy makers and NGOs50%GHG reduction,100%renewable electricity by FY30OperationsSupplychain50%of suppliers to set science-based targe
132、ts by FY25Our strategic approach29The impacts of climate change are being felt like never before.Many places are experiencing the most severe flooding,the most sustained heatwaves and longest droughts recorded in recent history severely disrupting lives,livelihoods and economies.These are now the st
133、ories in our daily news.Governments,businesses and societies need to understand the climate risks that we are facing,and adapt to the impacts of a changing climate.For this reason,we need to work together to accelerate the decarbonisation of our economies.As part of The New Equation,our global strat
134、egy to build trust and deliver sustained outcomes,PwC is committed to addressing the root causes of climate change and to leading by example.China is transforming from an industrial economy to one driven by leadership in innovation and technology.Sustainability is at the core of this transformation.
135、PwC China is taking bold steps to contribute to Chinas ambitious 30-60 decarbonisation goals.As part of these efforts to fight climate change,we have made a global commitment to achieve net zero with 2030 goals.In order to achieve our net zero commitments,we will bring our people on a journey to mak
136、e low carbon choices in our operations and in our supply chain.We will enable a tech revolution to continue redesigning our operations and client service delivery model with a strong digital focus.We will also continue to maximise our positive impact by sharing our skills,knowledge and impact in col
137、laboration with others,including business,policy makers and NGOs.“At PwC China,we believe the business community has a key role to make a net zero future happen.Were committed to leading by example.We are starting to unpack the vast transformation that is needed to reduce the climate impact of our o
138、wn operational footprint and crucially of our supply chain.Its not about a single magic bullet,but the biggest collective action the firm has ever undertaken.Douglas JohnsonNet Zero Leader,PwC ChinaNet zero transformation30This section of the report includes information on our commitments,progress a
139、nd emission reduction actions in our own operations and supply chain,as we transition our business in line with a net zero future.For more information about our climate strategy,governance and risk management,please refer to the Climate-related disclosures section.For examples of how we are working
140、with clients to support their net zero transformation,and using our voice to support climate advocacy,please refer to the Transformation-Sustainability services section.Our net zero metrics and targetsIn September 2020,PwC announced a worldwide commitment to net zero GHG emissions with 2030 goals.Ou
141、r commitment is underpinned bynear-term science-based targets set for 2030 in line with a 1.5 degree scenario to prevent the worst impacts of climate change,as set out in the Paris Agreement.In July 2021,our near-term emission reduction targets were independently validated by the Science Based Targe
142、ts initiative(SBTi).We have committed to:nReduce scope 1 and 2 absolute emissions by 50%from a FY19 base by FY30.nTransition to 100%renewable electricity in all territories by FY30.nReduce absolute business travel emissions by 50%from a FY19 base by FY30.n50%of our purchased goods and services suppl
143、iers(by emissions)setting science-based targets to reduce their own climate impact by FY25.PwC Chinas Net Zero SBT scorecardKPITargetFY19 baseline*FY23Progress against targetScope 1&2(tCO2e)50%absolute reduction by FY3019,7902,52687%reduction%renewable electricity100%by FY3037%100%67 percentage poin
144、t increase Scope 3 business travel(tCO2e)50%absolute reduction by FY3077,01349,77735%reduction%of suppliers of purchased goods and services with SBTs(by emissions)50%by FY25N/A10%10 percentage point increasePercent(%)is used when calculating the relative change between two numbers.Percentage point i
145、s used to compare the arithmetical difference between two percentages.*Restated due to improved data.31Our key net zero actions in FY23Decarbonising our operationsEngaging our supply chainnExpanded our incentivised high-speed train travel policy to 14 additional routes in Mainland China.n95%of offic
146、e space is LEED/BEAM certified or situated in LEED/BEAM certified buildings.nUpdated our air travel policy to restrict business class flights.nExpanded coverage of carbon offsetting to include all emissions from scope 3 business travel.nIntroduced an internal business travel emissions dashboard.nIn
147、FY23 10%of our purchased goods and services suppliers(by emissions)have a validated SBT,and a further 5%have committed to setting a SBT.nWe have implemented internal upskilling programmes,analysed supplier spend to identify vendors and categories with a material emissions impact to support further s
148、upplier engagement,and undertaken a review of our procurement policies and processes.nPartnered with one of our key airline providers to support the adoption of Sustainable Aviation Fuel to mitigate emissions from air travel.Adapting our client servicesCollaborating on the climate agendanWe have con
149、tinued to invest heavily in developing and scaling new climate-related services,in line with our global strategy and the strong emphasis it places on the Environmental,Social and Governance(ESG)agenda.nWe are committed to delivering high quality services to our clients challenges,including their sus
150、tainability-related pain points and ambitions.For details,please refer to the Transformation section.nIn FY23 we joined eight strategic alliances,including CDP Gold Partner and official knowledge partner of the Yicai ESG media channel.nWe also received six ESG awards,including the Green Practice Per
151、formance Award of Chinese Enterprises Carbon Neutral Performance 2022,and the CIFTIS Green Development Demonstration Cases Award for our digital Emissions Tracker tool.nShowcased leading practices of low carbon transformation in eight industries at the 1stShanghai Carbon Expo.3132Decarbonising our o
152、perations and supply chainAt PwC China,we are working to decarbonise our business and adapt to the impacts of climate change.This means setting clear targets,creating practical plans that achieve real results,and collaborating with other organisations in the broader ecosystem to support the net zero
153、 transition.Our approachOur approach to delivering on net zero in our operations and supply chain is based on the carbon mitigation hierarchy:1.Avoid eliminate our impact through design(evolve business strategy and operating model)2.Minimisereduce impacts that cannot be avoided through doing what we
154、 do more efficiently and replacing high carbon energy sources with low carbon ones3.Compensateoffset emissions that are not eliminated by the above to mitigate our impact todayTo put this into practice across our business,we use the following framework and measurable,actionable objectives that guide
155、 our actions.33We are also exploring innovative ideas that can play a supplementary role to help us reach our 2030 goals.For example,an internal carbon price can help to ensure accountability for the carbon impact of our business activities,while creating a central funding mechanism for a range of i
156、nitiatives that support decarbonisation.And by investing in Sustainable Aviation Fuel together with other organisations,we are supporting the development of more sustainable travel options in our value chain.Switching torenewablesManaging business travel impactEngaging suppliersReducingdirect emissi
157、onsMeasuring and disclosing impactOffsetting emissionsScope 1&2Scope 3Operations&Supply chainNet ZeroWe will regularly and transparently report onprogress against targets,enhancing our Greenhouse Gas(GHG)emissions measurement and reporting to align with our worldwide commitment to net zero with 2030
158、 goals.Reduce absolute scope 1 and 2 emissions by 50%from a FY19 baseline by FY30.To accelerate our transition to 100%renewable electricity by FY30.Reduce absolute business travel emissions by 50%from a FY19 baseline by FY30.Commit that 50%of our purchased goods and services suppliers(by emissions)h
159、ave set science-based targets to reduce their own climate impact by FY25.Continue to offset our emissions through high-quality carbon credits,transitioning our carbon offset portfolio to 100%carbon removals by FY30.Measuring and disclosing impactReducing direct emissionsSwitching to renewablesManagi
160、ng business travel impactEngaging suppliersOffsetting emissions34Our climate actionsDuring the first year of our FY23 FY25 Net Zero transition plan,we have taken a number of specific actions and introduced new measures to help stay on track to reach our 2030 goals across four areas:Energyscope 2 emi
161、ssionsBeyond value chain mitigationcarbon offsettingBusiness travel scope 3 emissionsSupplier engagementscope 3 purchased goods&services emissions35Energyscope 2 emissionsWe improve energy efficiency in our officesAs an office-based business,energy use in our operations is a core component of our to
162、tal carbon footprint.Taking actions to drive energy efficiency is one of our top priorities in reducing the environmental impact of our business.In FY23,despite increases to our total headcount and leased office space,our absolute electricity consumption continued to decrease by 6%compared to our FY
163、19 baseline.Our electricity efficiency has improved by 29%per capita over the same period.We are using innovation to improve power efficiency in our offices in multiple ways,which are aligned with our commitment to measure and manage our environmental impacts.For example,in recent years we have expa
164、nded the application of smart energy-saving measures,like motion-detected lighting in some LEED certified offices,and moved to cloud-based and virtual servers.We also continue to source I-REC Energy Attribute Certificates(EACs)from accredited wind-power sources in China to cover all our scope 2 elec
165、tricity consumption(including from air-conditioning).In FY23,the wind power projects that we supported produced 41,219 MWh of clean energy.35Zhangjiakou,HebeiCixi,ZhejiangGuilin,GuangxiTaonan,JilinUrumqi,Xinjiang36After PwC China launched Go green.Get on track.,I began to choose high-speed rail more
166、 frequently.Although high-speed rail sometimes takes longer than planes for long-distance journeys,it is more punctual and comfortable.When taking high-speed rail,I can also send and receive emails and handle official business online,making it more efficient and cost-effective.In terms of environmen
167、tal protection,the electricity-powered high-speed rail is cleaner than planes,which heavily rely on fossil fuels for energy.Therefore,high-speed rail is one of the best ways to travel.Maccus WangSenior Manager,One Firm Services,PwC ChinaBusiness travel is a part of life at PwC China.Whether its trav
168、elling to the office to meet clients,or to different cities for business trips,its important for building relationships,which is at the core of our brand.However,business travel is also one of our largest sources of carbon emissions.Air travel and overnight accommodation account for most of our trav
169、el emissions,making it a high sustainability priority.It is about finding a new balance and continuing to challenge ourselves on the need,frequency and mode of travel.We have implemented the following programmes to ensure we remain on track to meet our net zero commitments.We encourage high-speed ra
170、il as a low-carbon behaviourPwC China has started an initiative called Go green.Get on track.to encourage more of our people to choose high-speed rail as a low-carbon alternative to flying.In FY23 we expanded coverage to 15 eligible routes,building on the success of the pilot Beijing-Shanghai initia
171、tive that has provided an upgraded and lower-carbon travel experience since 2022.All PwC China people regardless of their grade are now eligible for first class tickets when taking a high-speed train on the 15 eligible routes,and receive additional wellness benefits for each trip.This is a thank you
172、 to every one of our people making a sustainable travel choice to support a net zero future.In FY23 over 2,600 employees took more than 7,000 trips on the 15 routes,increasing the proportion of train trips on these routes to 30%,compared to 17%in FY19.Business travel scope 3 emissions“3637We restric
173、t the booking of business and first-class flightsEffective from FY23,all staff up to director level are required to take economy class for domestic and international flights on all business travel bookings.In our FY19 baseline year,business and first-class trips contributed more than 50%of our total
174、 travel emissions from air travel,but accounted for less than 25%of the total number of trips.This creates an opportunity to cut emissions by switching to economy class travel,without impacting on our ability to serve clients.This new travel policy is just the beginning,as we continue working togeth
175、er to find new ways to make a meaningful impact on the environment.We contribute to the future of sustainable aviation fuelIt is important to us,as a global network,to think about the future of aviation and to contribute to making it more sustainable.In FY23,PwC China joined Asias first major Corpor
176、ate Sustainable Aviation Fuel(SAF)Programme with Cathay Pacific.As one of the first eight corporate launch customers,we are committed to reducing carbon emissions by purchasing SAF through this first major programme of its kind in Asia.The SAF used for the launch of this programme is made from used
177、cooking oil and animal fat waste.It is made available to Cathay Pacific by its pilot Corporate SAF Programme fuel suppliers.The very first uplift of SAF at Hong Kong International Airport(HKIA)was made possible through a collaborative effort with many stakeholders along the supply chain and various
178、government departments.The SAF used in this programme goes through the normal aviation fuelling infrastructure.This provides important learning points in order to develop an ongoing and regular SAF supply from HKIA in the future.As part of PwCs commitment to Net Zero,we have made supporting the deve
179、lopment of sustainable air travel a priority.Despite its benefits,sustainable aviation fuel only accounts for a very small percentage of global jet fuel used today.Accelerating its adoption over the next decade can help to reduce emissions caused by air travel.Therefore,we are collaborating with the
180、 aviation industry to increase investment in SAF.We look forward to collaborating with airlines and other corporates towards transitioning to a Net Zero future and delivering a sustainable tomorrow.Raymund ChaoPwC Asia Pacific and China Chairman“3738We started internal carbon pricingWith an eye towa
181、rd identifying and incentivising a range of measures to reduce carbon emissions,PwC China started a pilot internal carbon pricing programme in FY23.The mechanism of internal carbon pricing allows key decision-makers to have appropriate information to quantify,in financial terms,the GHG emissions fro
182、m our operations.This is principally from business travel(including air travel,taxi travel,train travel and accommodation),which is one of our highest sources of GHG emissions.This mechanism will come into effect from FY24.The funds generated can be used for investing in renewable electricity and ca
183、rbon offsetting,supporting emission reduction initiatives,engaging our people,and rewarding low-carbon behaviours.3839Beyond business travel,the largest source of emissions is within the rest of our supply chain purchased goods and services.By engaging with our key suppliers and encouraging them to
184、take action too,we aim to amplify our impact in the market to accelerate the broader transition to a net zero economy.Each year we measure supply chain emissions associated with our operations.These emissions vary each year,but three areas construction,facilities management and real estate services,
185、and professional services usually make up to around half of our spend and emissions.We have collected financial data across all procurement categories to understand the size and nature of our supply chain.Supplier engagementscope 3(purchased goods and services)3940A spend-based approach is taken to
186、calculate the emissions associated with our supply chain,in line with the GHG Protocol Scope 3 guidance.In this way,environmentally enhanced input-output modelling is used to calculate the emissions associated with each unit of currency spent within a given category,based on the typical supply chain
187、 of that product or service.We will continue to encourage our suppliers to set their own science-based targets,particularly those suppliers that materially contribute to our total supply chain emissions.We will also keep upskilling our own procurement managers and suppliers,and identify opportunitie
188、s to decarbonise and embed climate considerations into our procurement processes.We will keep enhancing our data collection and measurement to demonstrate progress towards our supplier engagement target.In FY23 10%of our purchased goods and services suppliers(by emissions)have a validated SBT,and a
189、further 5%have committed to setting a SBT.4041We counterbalance our emissions with high quality carbon offsetting projectsAs we work towards reducing our near-term science-based targets,we continue to support high quality carbon offset projects.This gives us an opportunity to address climate impacts
190、,and the interlinked threats of biodiversity and nature loss.In FY23,PwC China offset energy and mobility emissions,including scope 1,2 and scope 3 business travel.Considering the rapid evolution in the voluntary carbon market,we have put in place quality criteria when purchasing carbon credits.We w
191、ant to make sure our carbon offset projects deliver real and verified outcomes,and even go beyond climate mitigation bringing positive impact for nature and local communities.Carbon credits are purchased through PwCs global procurement process,which offers a range of credits in terms of project type
192、 and location which meet minimum quality criteria.For details of our commitment and approach to carbon offsetting,please refer to the 2023 PwC Network Environment Report,including quality criteria and a full list of projects supported.PwC China selects specific projects to support from the global po
193、rtfolio,with reference to location and technology type.In FY23,the majority of purchased carbon credits were located in China and over 65%came from natural climate solutions.We will continue to counterbalance our annual emissions through high-quality carbon credits,transitioning our carbon offset po
194、rtfolio to 100%carbon removals by 2030.Beyond value chain mitigationcarbon offsetting4142ProjectLocationProject detailsKey impacts for local communitiesName:Sichuan Household BiogasCertifications:GS&CERMethodology:Biogas HeatCarbon Reduction,Technology Based SolutionChinaThis project helps to restor
195、e the region and has implemented more than 400,000 rural biogas units that are used to fuel clean gas cookstoves and produce organic fertiliser for farmers.Aligning with the SDGs:nApproximately 10,000 permanent and temporary jobs in construction and maintenance of digesters have been created.n2,000
196、people have been trained as biogas technicians.nThe smoke-free biogas cookstoves reduce respiratory diseases and eye ailments.nBeneficiaries find that they have increased self-reliance due to the availability of clean,convenient,and inexpensive biogas from their own supply.nThe annual coal consumpti
197、on per household has fallen from 970kg to 27kg with the new digesters.Name:Yunnan IFMCertification:VCSMethodology:Improved Forest ManagementCarbon Reduction,Natural Climate SolutionChinaThis project aims to improve the forest coverage rate,protect local ecological environment,reduce carbon emissions
198、 and carbon sequestration by the conversion of logged to protected forests.The project will convert 6,879 hectares of forest and is expected to generate 821,000 tCO2e emission reductions for 20 years.Beyond the positive impacts on the climate,the project will have several social and environmental be
199、nefits.Aligning with the SDGs:nThe project reduces more than 821,000 tCO2e during the project lifetime.nProtects 6,879 hectares of forest cover.nThe project provides 35 job opportunities for local community inhabitants.It will provide training and workshops for locals and employees who want to impro
200、ve their skills in forest protection and management activities.nEnhancement of biodiversity conservation by increasing the connectivity of forests.nImprovement of soil and water conservation in the project area.nThe protection of local forests will enrich the biodiversity and provide more opportunit
201、ies for adaptive responses to natural challenges and economic development(e.g.climate change and new medical discoveries).Name:TIST Afforestation and ReforestationCertification:VCSMethodology:Afforestation and ReforestationCarbon Reduction,Natural Climate Solution(ARR R)UgandaThis project is a combi
202、ned tree planting,development and carbon programme.Smallholder and subsistence farmers organise themselves into community groups to plant trees on their degraded land to improve their livelihoods and address local,regional and global environmental issues,such as deforestation,biodiversity loss,adapt
203、ation and vulnerability to climate change.In addition to raising awareness about deforestation and climate change,the project also aims to inform communities about health issues such as HIV,malaria and other diseases.Aligning with the SDGs:nDeforestation is a major cause of poverty and climate chang
204、e.This project works with local smallholder groups to reverse deforestation.nKitalu Forest provides hard-working farmers,women and men,an annual stipend for each live tree,plus access to future long-term profits from the global market for greenhouse gas credits.nSmallholders join community groups wh
205、ere they share and receive support and education.nThe programme also contains a health component,educating communities on HIV,malaria and other health matters.4243We are playing our part in addressing nature-related challengesBiodiversity is essential for the processes that support all life on Earth
206、.The term nature-positive has become a call to action across society and business.As well as supporting our clients with nature matters,we are taking steps to better understand and manage our own impacts on nature as a business.We are embedding nature considerations into our office operations,while
207、collaborating with NGOs,business and governments to help to build the systems and frameworks that will deliver the trusted information needed to underpin a nature-positive transition.We bring a nature-based solution to abandoned farmland in Hong KongWhile PwC China is making its transition to a low
208、carbon future,we cannot ignore the potential impacts to communities as we transition.PwC China has collaborated with A Plastic Ocean Foundation on the first bamboo afforestation initiative Project Prosperity in Hong Kong,sponsored by the PricewaterhouseCoopers Foundation.This initiative aims to cons
209、erve the ocean by preventing pollution through the rehabilitation of abandoned and water-adjacent farmland at Ha Pak Nai,on the Northwestern Coast of Hong Kong.At the same time,it initiates a circular economy by planting native species of bamboo,and creates green job opportunities for the underemplo
210、yed young adult workforce in the village.In FY23 the project launched phase 1,with planting completed and promising growth underway at two sites.The conservation area in Ha Pak Nai is an important biodiversity hot spot,home to one of the largest seagrass beds(4 hectares)in Hong Kong.As well as being
211、 home to many different species,the biodiverse area plays an important role as a nursery and feeding ground for the horseshoe crab,which is currently under environmental threat.The environment of Ha Pak Nai is being impacted by pollution,soil erosion and contamination caused by onshore human activit
212、ies entering into nearby waterways and making their way into mudflats and the ocean.Another cause of damage in the area is abandoned farm operations,which have also led to erosion and neglected contaminants leaking into streams and the sea.Since the project was launched in June 2022 and phase 1 comp
213、leted,the project has:nPlanted a total of 460 bamboo plants across two sites.n190 of those 460 plants are mature Moso bamboo,capable of capturing 102kg of carbon per year,an estimated total of 19.38 metric tonnes of carbon captured in a year.nThe other 270 plants are of three different local bamboo
214、species and were planted to showcase this unique bamboo afforestation initiative to schools.nFour local farmers and fifteen underemployed youth were hired for bamboo maintenance and site operations.4344We support restoration of ecologically degraded areasSince FY20,PwC China has been supporting The
215、Million Tree Project initiated by Shanghai Roots&Shoots.The Million Tree Project aims to raise public awareness of desertification,while focusing on steps individuals can take to lessen their negative impact on the natural world.The project is designed to improve both ecological and humanitarian con
216、ditions by planting trees.It also encompasses true capacity building,as the local community is intimately involved with,and benefits from,every step of planting,maintaining and monitoring the trees.Together with other partners,by FY23 over 2.7 million trees have been planted on 40 forest plots,cover
217、ing an area of 2,501 hectares in Tongliao and Ordos,Inner Mongolia;413 hectares of sandy land has been covered with straw grids and more than 1,240,000 shrubs have been planted to revitalize the ecosystem.Each tree planting session is more than just getting trees in the ground:engagement with corpor
218、ate volunteers and involvement with the local community are built into the process to increase environmental awareness and socio-economic and environmental outcomes for these spaces.We assess our own operational impact on nature While we are helping to build the system and framework that will delive
219、r the trusted information needed to underpin a nature-positive transition,we are committed to playing our part as a business.We take steps to better understand and address our own nature footprint where we operate.We have conducted an assessment to identify which of our office locations are in or ad
220、jacent to key biodiversity areas(KBA)and/or protected areas.These are designated areas that have been recognised as contributing significantly to the long-term conservation of nature.Similarly for freshwater,we have assessed the extent to which our offices are located in water-stressed regions.Our l
221、eased offices in Hong Kong,Kunming,Qingdao,Shenzhen and Zhuhai are in or adjacent to a KBA.These office premises are situated in existing built-up urban areas of major cities,with relatively small land footprints,equivalent to a total of approximately 1,970 sqm.45We help build frameworks in deliveri
222、ng a nature-positive worldThe Global Biodiversity Framework(GBF)aims to halt and reverse biodiversity loss,restore ecosystems and protect indigenous rights.In supporting business to develop the innovation,investment and business models that will be needed to achieve the goals of the GBF,The World Ec
223、onomic Forum in collaboration with PwC China published a white paper The Post-2020 Global Biodiversity Framework and What it Means for Business.It introduces the most business-relevant aspects of the draft post-2020 Global Biodiversity Framework(GBF)and key business-and regulatory-driven approaches
224、that will need to be scaled up to achieve its targets.The white paper presents case studies of companies that are already taking action to mitigate nature-related risks in their operations,while investing in new business opportunities that contribute positively to the targets of the GBF.We use resou
225、rces efficiently and minimise the generation of wasteAcross our operations,PwC China is working to send less material to landfill and more back into the circular economy loop by developing waste prevention and waste re-use programmes within our offices.We collaborate with our stakeholders,such as co
226、ntractors,suppliers,employees and NGOs,to raise awareness,to enhance the effectiveness of our waste facilities,and to drive waste reduction and recycling initiatives.Beyond our ongoing initiatives with paper,coffee grounds and clothing,we have also been focusing on the following areas to minimise ou
227、r waste:46ResourcesOur activitiesPlastic,metal&glassCollaborating with V Cycle,a social enterprise in Hong Kong,we recycle office plastics,metals and glass through a trackable system that gives assurance through transparency and data.The programme also provides extra income for elderly cardboard col
228、lectors and work experience for adults with disabilities.We also engaged our staff on a visit to V Cycle headquarters to deepen our understanding of how its work supports us in becoming more sustainable.In FY23,426 kg of plastic,metal and glass have been recycled.Laptops and PCs100%of our used lapto
229、ps and PCs are donated,resold for reuse or recycled.We collaborate with Netspring to set up PwC Green IT Classrooms and work with education-focused NGOs to donate computers to primary and secondary schools,providing underprivileged students with access to digital literacy and learning opportunities.
230、In FY23,274 laptops have been donated.In PwC Green IT Classrooms,19,200 hours of IT lessons have been delivered to 800 students.Office furnitureOld furniture from our recent Hong Kong office building renovation was donated to local NGOs and social enterprises,including Christian Action,V Cycle and A
231、 Plastic Ocean Foundation.Furniture will be reused or sold at community outlets that promote recycling and the environment,with the proceeds from the sales going towards the development of Green Collection Programme and benefiting the less fortunate in Hong Kong.In FY23,706 pieces of used office fur
232、niture were donated.47We engage our people on climate changeWe see our climate journey as a chance to mobilise our people to take action.As we make progress on our climate actions,we share,inspire and encourage everyone to take responsibility to act.We are seeing our people take action in many ways
233、through sustainable behaviour campaigns,upskilling on climate-related issues,supporting the work of PwC Green Team,and joining environmental volunteering events.PwC Green TeamThe PwC China Green Team is a network of 377 partners and staff who are committed to creating a sustainability culture and ma
234、king PwC China a more eco-friendly place to work.Our Green Team members raise awareness of environmental sustainability issues and drive positive behaviour changes across the firm.The Green Team gets together periodically to identify opportunities to enhance sustainability.Green Week Each year PwC C
235、hina delivers Green Week,a firmwide campaign to raise awareness and engage its people in sustainability issues.In FY23,we collaborated with an artist,a social entrepreneur,a landscape architect and a material designer to show how builders and creators are finding visionary solutions for a greener fu
236、ture.This was achieved through the release of a series of digital assets,including videos and daily online communications,featuring sustainable solutions in the market.Six nature events were also hosted for our people in Shanghai,Beijing,Guangzhou,Shenzhen,Chengdu and Hong Kong,bringing them the uni
237、que experience of getting outdoors and connecting with nature.After joining Green Team,I have more channels to learn about environmental protection and more opportunities to do my part in the firms sustainability.In the Hong Kong office,we collaborate with an environmental social enterprise to promo
238、te a recycling project,encouraging colleagues to actively engage in recycling.I also had a chance to visit a factory run by a local social enterprise,gaining a deep understanding of the recycling situation in Hong Kong and the challenges it faces,as well as how to upcycle plastics into other product
239、s.Lets continue to work together for a sustainable future!Euphenia ChengManager,Advisory,PwC China“48PwC Chinas Personal Carbon CalculatorTo help our people understand the carbon impacts of their current lifestyle and how individuals can play a part to tackle the climate crisis,PwC China launched it
240、s Personal Carbon Calculator.Through this tool,our people receive a tailored carbon footprint report after completing a simple survey.They can then choose from a number of climate pledges to start reducing their carbon footprint.For every pledge our people make,PwC China plants shrubs on their behal
241、f to help restore the nature reserves and control desertification in Ningxia,China.Sustainability workshopsDuring FY23,we collaborated with NGOs and climate educators to host 14 educational workshops.These virtual and in-person events aim to inspire our people to reduce their environmental impacts.W
242、orkshops consist of different topics,covering ethical fashion,plastic pollution,food for future,waste management and other climate actions.These workshops raise awareness in an interactive way and call for individual power to make a positive impact on our planet.Environmental volunteeringAs part of
243、our corporate sustainability efforts,we empower our people to contribute to environmental causes through regular volunteering activities.These include beach or nature clean-up events,contributing to the circular economy with upcycling and recycling social enterprises,raising funds for environmental
244、conservation and participating in important biodiversity research.Environmental volunteering provides our people with the opportunity to interact with nature,learn about biodiversity and foster a sustainable mindset.Since the launch of PwC Chinas Personal Carbon Calculator in June 2022:More than 2,0
245、00 PwC China people have calculated their carbon footprintMore than 12,000 climate pledges have been made by individuals19 events391 PwC China volunteers1,243volunteering hoursEnvironmental volunteering:4906Climate-related disclosures4950As the impacts of climate change become more severe,our client
246、s and other stakeholders want to know how we are preparing for and managing the risks and opportunities associated with climate change.PwC China supports the adoption of the Taskforce on Climate-Related Financial Disclosures(TCFD)s recommendations and the International Sustainability Standards Board
247、(ISSB)s IFRS Sustainability Disclosure Standards.This section consolidates PwC Chinas climate disclosures to present a holistic picture.Management and oversight of our environment agenda,including our net zero programme and how we are transitioning our business to be sustainable in a low carbon econ
248、omy,is provided by the Network Leadership Team(NLT).This ensures business ownership and accountability.Our Global Sustainability Leadership Team(GSLT)is the primary management body of our corporate sustainability agenda.It is led by ourGlobal Corporate Sustainability Leader and brings together leade
249、rs from our largest territories,representatives of our regions and subject matter experts to review our corporate sustainability objectives and their progress and impact.Its remit covers the networks global environmental and community ambitions.The GSLT monitors progress towards our net zero commitm
250、ent,including our near-term science-based targets,as well as our broader business transition to adapt to the risks and opportunities that climate change will bring for our business.The GSLT reports to the NLT and Global Board(or one or more of its committees)periodically.In the last 12 months,our Gl
251、obal Corporate Sustainability Leader has reported to a number of key leadership groups within our business to discuss our approach to decarbonising,plus report on our progress in transitioning the wider business in response to climate change risks and opportunities.This includes meetings with the Gl
252、obal Board,the Global Leadership Team,the Global Strategy Board and the Global Markets Leadership Team.In addition,the Global Corporate Sustainability Leader meets regularly with the Global Chair,and with the Global Markets Leader at least monthly,as well as on an ad hoc basis as needed.PwC Chinas c
253、limate governance stems from the foundations of the global network,and cascades into our internal structure.Raymund Chao,Asia Pacific and China Chairman,represents PwC China as Territory Senior Partner(TSP)on the NLT,and is ultimately responsible for the environmental performance of PwC China and ad
254、herence to the PwC Network Environmental Statement,as well as being accountable for our commitment to reach net zero with 2030 goals.Climate governance 51Climate-related risk and opportunities within PwC China are overseen by the Board of Partners.The Chairman and CEO has responsibility for the stra
255、tegic direction and overall management of the Firm.The Chairman and CEO is further supported by the Management Board(MB),which has responsibility for management of the Firm.With this governance set-up,the TSP and MB have ultimate oversight of our approach to sustainability through a coordinated gove
256、rnance and management approach.Our MB is regularly kept informed of the latest developments within Sustainability and Climate Change,and the impacts on our business.This is driven by Amy Cai,a member of the MB and the Managing Partner of Sustainability in PwC China,who leads our efforts to support o
257、ur clients in their sustainability and climate change journey.Operationally,Xing Zhou,also a MB member and our Corporate Sustainability Leader,who represents PwC China on the GSLT,provides quarterly updates on our own net zero progress to the Chairman and MB.PwC Chinas Corporate Sustainability Team
258、is responsible for developing,implementing and monitoring sustainability initiatives within PwC China.PwC Chinas Net Zero Business Leader and Climate Risk Leader,Douglas Johnson,is responsible for defining and implementing our net zero plans by working with key stakeholders across the firm,providing
259、 relevant updates to the Corporate Sustainability Leader and MB,and regular reporting and updates to the Global Corporate Sustainability Team.52transition towards a net zero economy.For example,in our Hong Kong office,we have deployed adverse weather work arrangements for our staff twice in the past
260、 year when staff were asked not to travel due to tropical storms hitting the city.Climate risks and opportunitiesWe have identified three distinct categories of climate-related information:physical risks,transition risks,and opportunities,in line with the TCFD recommendations.We further categorise t
261、hese risks and opportunities by how they affect our operations,services or people.Some types of risk can cascade through the value chain and economy.For example,while our people may experience discomfort or require additional cooling in our offices during heatwaves as a direct impact,other extreme w
262、eather events such as droughts which affect agricultural production levels have less direct impacts on our business,but affect the broader market that we operate in.Risk impact levelImpact descriptionDirectClimate-related outcomes that directly affect our people,operations,and services;and would req
263、uire direct mitigation responses from PwC China.PortfolioClimate-related outcomes impacting PwC China clients or our key suppliers,leading to indirect impacts on PwC China.Broader marketClimate-related outcomes which create regional economic and social disruption triggered by acute and chronic clima
264、te events,for example large scale supply chain disruption and adaptation.These lead to change in broader market conditions beyond our direct control.PwC Chinas climate strategyAs part of The New Equation,addressing climate change is at the heart of PwC Chinas strategy,aligning with the decarbonisati
265、on efforts and management of the physical impacts of climate on our operations.The Chinese government has set targets to reach peak carbon emissions by 2030 and to achieve carbon neutrality by 2060.As a non energy-intensive business,we aim to accelerate our own journey to support the governments amb
266、ition,by aiming to achieve net zero GHG emissions with 2030 goals.FY23 has been a challenging year for PwC China,exacerbated by tough economic conditions globally.There have been several major extreme weather events in China over this period,from one of the worst recorded heatwaves and droughts,to h
267、eavy floods in multiple regions.While we have remained resilient throughout these events,they reinforce our commitment to be at the forefront in tackling the challenges and impact of climate change on the economy,society and environment,and to enable theStrategy53We have leveraged our global network
268、s approach to climate scenario analysis and tailored it to the Mainland China and Hong Kong SAR context to identify and assess the most relevant risks and impacts for PwC China.These risks and opportunities are compared under two climate scenarios that represent significantly distinct outcomes in te
269、rms of the potential impact of climate change on the economy,society and environment.We look at multiple time horizons that enable us to plan for effective responses over the short,medium and long term.Relative to these scenarios,we have identified and assessed key climate-related risks and opportun
270、ities and their potential business impacts on PwC China as presented below.Against each of those risks,we have developed appropriate responses to mitigate them.We will continue to enhance these responses and monitor how these risks and our overall resilience evolve.ScenarioParis-aligned scenario(wel
271、l below 2C)No mitigation scenario(4C)Underlying modelInternational Energy Agencys Sustainable Development ScenarioIPCC Shared Socioeconomic Pathways 5-8.5Key risks consideredTransition risksPhysical risksTime horizonShort term:0-5 yearsMedium term:5-10 yearsLong term:10+years54Risks of extreme weath
272、er events for PwC China office locationsWe conducted a physical climate risk exposure analysis of all our PwC China offices and evaluated the potential impacts from eight types of extreme weather hazards:cold,drought,wildfire,flood,hail,wind,precipitation and heat.Across these hazards,projections sh
273、ow that over the period to 2050,heat-related risks could increase most significantly,followed by flood.By 2050,under a no mitigation scenario(4C),heat stress is projected to increase in many regions in China.Our largest offices,including in Beijing,Hong Kong and Shanghai,may experience an increase o
274、f 29%more hot days by 2050,relative to 2020(see diagram below).This could increase risk of heat-stress on individuals when travelling to or from offices and our client sites,as well as increase the demand for office cooling,leading to higher energy consumption,costs and associated emissions.Addition
275、ally,flood risks are also projected to change significantly by 2050 under the no mitigation scenario.Higher potential flood risks are projected for our Shanghai,Guangzhou and Shenzhen office locations,which may lead to physical damage to our office infrastructure and equipment.This may also lead to
276、disruption to our normal business operations during repair or relocation,affecting our ability to deliver client services and thus our reputation.For further information on the hazard profiles of other risks at locations across the PwC global network,please visit our physical risk map.20202050Data s
277、ource:Jupiter ClimateScore Global,2022Each bubble represents an office location:Number of days per year at or above 35oC175 days150-175 days125-150 days100-125 days50-100 days20-50 days20 days5455Key risks and opportunities for PwC ChinaWe have identified and assessed the following key climate-relat
278、ed risks and opportunities and the potential business impacts to PwC China.Against each of those risks,we have formulated suitable business responses to mitigate them.Going forward,we will continue to enhance our disclosure on our key climate risks,as well as our response actions and progress.These
279、efforts underpin our broader climate change resilience strategy.5556Risk/opportunityImpact levelBusiness impactsTime horizonOur business response(see corresponding sections below)Physical risksPhysical risks to office infrastructure arising from acute and chronic climate events DirectnExtreme events
280、 can affect our business operations,including office locations,data centres,employee homes,employee health and demand for services.These are projected to change most significantly in the“no mitigation”scenario.nSeveral of our larger offices are located in coastal regions(e.g.Hong Kong and Shanghai)a
281、nd are exposed to typhoons and coastal flooding,which may threaten our office infrastructure,disrupt our delivery of client services,and negatively affect our people.Short,medium and long termnPhysical resilience in our real estate managementnPhysical resilience in our flexible work arrangement and
282、technology platformsnPhysical resilience in our Business Continuity Management systemBusiness travel disruptions due to extreme weather eventsDirectnOur people,suppliers and clients are exposed to increased disruption to business travel as extreme events increase in frequency and severity,especially
283、 under a“no mitigation”scenario.Medium to long termnPhysical resilience in our flexible work arrangement and technology platformsnPhysical resilience in our Business Continuity Management systemTransition risksAttracting and retaining talentDirectnOur 26thPwC Annual Global CEO Survey Asia Pacific hi
284、ghlights climate change as one of the major concerns among CEOs.As a professional services firm,we need to continue to provide high-quality services to our clients,in both climate scenarios.We will need to continually attract and retain talent to serve our clients in their climate journey.nAs young
285、people place increasing importance on the climate agenda,our commitments and actions on decarbonisation will impact our attractiveness as an employer.Short,medium and long termnUpskilling our staff on climate changenDecarbonisingoperations:Our transition plannSupporting a just and transformative cli
286、mate transitionBrand/reputational risk arising from failure to contribute in a meaningful way to the climate agenda,including failure to meet our public net zero commitmentDirectnPwC China faces the potential risk of reputational damage if we fail to meet our committed targets or if we are accused o
287、f engaging in“greenwashing”.This risk is present in both climate scenarios.Medium termAdapting our core services to embed consideration of climate risk in line with regulatory and legislative changes,and market expectations Portfolio and directIn both climate scenarios,a failure to adapt core servic
288、es to account for climate risks in accordance with legislative changes and market expectations may result in reputational damage,as well as potential losses in revenue and market share.Short,medium and long termOpportunitiesIncreased demand in supporting clients specific climate-related needsPortfol
289、ioPotential increase in revenue and market share in sustainability services field can be captured due to increased demand for sustainability services.Short,medium and long termnEnhancing our service offering5657Physical resilienceIn our real estate managementPwC Chinas real estate team assesses pote
290、ntial climate-related physical risks in each location in our strategic processes,including the ability to withstand increased levels of acute and chronic climate events.We actively engage with the building management offices at our office locations,requesting relevant green building certifications(s
291、uch as LEED/BEAM certifications that incorporate requirements on climate change adaptation)as evidence that our offices meet a high level of environmental performance standards.In our flexible working arrangement and technology platformsWe have a firm commitment to prioritise safety for all of our s
292、taff members,and we integrate safety considerations within our overall approach and policies on staff health and wellbeing.Our WeFlex policy provides guidelines on flexible hours and flexible location which are applicable in times of adverse weather conditions,such as a Tropical Cyclone Warning.Thes
293、e help minimise the impacts of short-term disruptions to our service delivery.Our WeFlex working arrangements,strong technology platforms to support virtual working and our hybrid service delivery model will continue to provide the benefits of increased flexibility for our people while maintaining t
294、he importance of in-person collaboration with our clients.In our Business Continuity Management systemPwC China maintains a robust Business Continuity Management(BCM)system,which provides effective responses to crisis scenarios.In the event of extreme weather events,our standard protocol includes me
295、asures such as stay-home arrangements and office facility protection protocol.Our PwC China Travel Security Guide provides guidelines to safeguard the health and safety of our people against extreme weather conditions.We provide a safety net for our people during business travel disruptions through
296、our International SOS Assistance programme.In emergency situations caused by severe weather events,the International SOS Assistance services can provide a range of emergency medical,personal and travel assistance to our people,including dispatching physicians and initiating emergency medical evacuat
297、ion,lost document assistance,embassy and consular information provision,as well as other emergency travel arrangements.PwC Chinas appointed travel management companies are also equipped to rapidly arrange alternative travel options,and to provide our travellers with sufficient assistance to return b
298、y safe means and safeguard their health,safety and well-being during disruptions.58Decarbonising our operations:Our transition planPwC China aligns with the PwC global networks worldwide commitment to reach net zero GHG emissions with 2030 goals.Our net zero commitment is underpinned by near-term sc
299、ience-based targets in line with a 1.5C scenario,which were independently validated by the Science Based Targets initiative(SBTi)in July 2021.Building on an initial mobilisation plan put in place in FY21,we have modelled an emissions pathway to FY30 and identified a preliminary set of activities to
300、be delivered over three years(FY23 to FY25)to support emissions reductions in line with our targets.The completion of this transition plan is a PwC network key performance indicator for TSPs in order to ensure accountability at the most senior levels of our business.Our emissions reduction plan incl
301、udes encouraging low emission alternatives for business travel,engaging our suppliers to address emissions in our value chain,sourcing 100%renewable electricity,as well as implementing energy efficiency improvements in our offices and supporting natural climate solutions.Many of the activities ident
302、ified in our action plan have been implemented in FY23.For more details,please refer to the Environment Our climate actions section.Enhancing our service offeringPwC China places high importance on developing and scaling up the capabilities in climate and broader ESG services so that we can respond
303、to market demand and our clients needs.Our Sustainability team,with a network of climate specialists,has matured substantially during FY23.We continue to adapt and expand our services to offer consistent tools and methodologies to address the challenges posed by climate change.These services not onl
304、y help solve current challenges but also enable our clients to better understand the impact of climate change on their business and how they can transition towards low carbon business models.Additionally,our services assist clients in reporting and providing transparency to stakeholders and meeting
305、emerging regulatory standards and requirements in Mainland China and Hong Kong SAR.59Supporting a just and transformative climate transitionA fundamental part of our net zero commitment is contributing our expertise to support wider national and sector-based policies and initiatives in order to acce
306、lerate the net zero transition.We are committed to dedicating our time and expertise to find solutions to these complex and challenging problems,in line with our purpose.We engage with policymakers,industry and market groups to stay at the forefront of legislative change in adapting our core service
307、s.Our participation in net zero and climate-related initiatives and coalitions,including the Net Zero National Action Alliance in China,and the MSCI ESG and Climate Academy Project,demonstrates our engagement with the value chain,industry,public and society on the climate agenda.We participate in a
308、range of international forums,conferences and other communication platforms as keynote speakers on climate change topics.Our involvement in high-profile events,such as the Asian Financial Forum and the Shanghai International Carbon Neutrality Expo in Technologies,Products and Achievements,speaks to
309、our firms deep commitment to driving progress.Our ESG Star Talk is another example of our commitment to sharing our knowledge and our clients journey on the climate and sustainability agenda.It is an integrated online platform that facilitates productive discussions on practical experience and promo
310、tes forward-looking insights related to businesses in the ESG field.60Case studyWe were honoured to present at the Asian Financial Forum,organised by the Hong Kong Trade and Development Council(HKTDC).PwC Asia Pacific and China Chairman,Raymund Chao,shared insights on our research which we jointly c
311、onducted with HKTDC on Financing the Corporate Transition to a Sustainable Future.The research shed light on various ESG and climate change-related topics,including how Hong Kong businesses are progressing on their ESG transformation and sustainability efforts,how they are funding the transition,and
312、 the expectations for Hong Kongs future role in green finance and achieving sustainability overall.PwC China at the Asian Financial Forum and the Asia-Pacific Financial Forum 2023In addition,we joined the Asia-Pacific Financial Forum 2023 as a keynote speaker.Over 500 politicians,scholars,and financ
313、ial professionals from around the world attended the APFF.Our Global Trends in Sustainable Finance provided valuable insights on the latest developments in this area.6061Case study A4CR is a coalition of companies that aims to accelerate climate action and build a first-of-its-kind,climate-resilient
314、 community in Asia by advising and supporting businesses and investors in tackling the current and future impacts of climate change.PwC China was proud to be invited as the primary technical advisor on ESG reporting.In this role,we provide A4CR members with insights into climate and ESG-related matt
315、ers and advise on integrating climate-and nature-related risks into business risk management structures.PwC China as the primary advisor to the Asian Corporate Coalition for Climate Change Resilience(A4CR)6162Upskilling our staff on climate changeWe have a strong commitment to the continuous develop
316、ment of our people,including enabling them to acquire the skills and knowledge necessary to support both our clients and our firm in tackling the complex challenges posed by climate change.The PwC China ESG Academy works alongside the Global Sustainability Academy and drives our key initiatives to p
317、romote climate and sustainability-related learning and knowledge sharing among our employees.Our Academy provides tailored learning for all grades and specialists,covering areas such as carbon neutrality,climate science and the impacts of climate change on businesses.Vantage is our online learning p
318、latform dedicated to upskilling all staff in PwC China on ESG issues.The platform offers a comprehensive suite of learning modules for our staff.Our learning infrastructure,including sustainability and climate change topics,continues to be a key element in attracting and retaining talent.For more de
319、tails on our ESG upskilling programmes,please refer to the People section.63Our Enterprise Risk Management(ERM)framework Climate related risks are embedded within our PwC China ERM Programme.This comprehensive ERM programme is in compliance with the PwC guidelines and requirements.Our climate-relate
320、d risks are embedded within the following:nBlack and green swan events:Failure to prepare for environmental events with network-wide implications in terms of immediate/disaster response,reputational damage and potential macroeconomic impact,such as regulatory change,environmental events or macroecon
321、omic disruption created by events such as a pandemic.nClimate:Failure to review and consider the impact of climate change on the network and to prepare for its implications,including(i)the impact of physical risks and related disruption;(ii)the impact of transitional risks on certain clients,sectors
322、,economies and on our services;and(iii)failure to meet network commitments related to climate.For further details of the ERM approach in PwC China,including a full list of our FY23 Top Risks,please refer to the Governance section.Risk management64Key climate-related metrics and targets are used to p
323、rovide a clear framework for PwC China to measure and manage our environmental impact,regularly monitor our progress towards our goals and ensure the effectiveness of our strategy and risk management approach.These indicators also demonstrate our commitment to sustainability and to staying competiti
324、ve in this rapidly changing business landscape.Our net zero commitment is underpinned by near-term science-based targets,as validated by the Science Based Targets initiative(SBTi).Our near-term targets are:n50%absolute reduction in scope 1&2 greenhouse gas emissions by FY30 vs FY19.nCut indirect sco
325、pe 3 emissions from business travel by 50%by FY30 vs FY19.n50%of our purchased goods and services suppliers(by emissions)to set science-based emission reduction targets by FY25.nUse 100%renewable electricity.For details of the specific emission reduction actions we have taken in FY23,please refer to
326、 the Environment section.Percent(%)is used when calculating the relative change between two numbers.Percentage point is used to compare the arithmetical difference between two percentages.*Restated due to improved data.Metrics and targetsKPITargetFY19 baseline*FY23Progress against targetScope 1&2(tC
327、O2e)50%absolute reduction by FY3019,7902,52687%reduction%renewable electricity100%by FY3037%100%67 percentage point increase Scope 3 business travel(tCO2e)50%absolute reduction by FY3077,01349,77735%reduction%of suppliers of purchased goods and services with SBTs(by emissions)50%by FY25N/A10%10 perc
328、entage point increase6507PeopleEmpowering our people to support their current and future success 6566We strive to build a workforce of the future that is human-led and tech-powered.By meeting present demands and anticipating future needs,we are able to deliver differentiated value for our clients an
329、d society more broadly.In line with our strategy,The New Equation,we seek to create a future-ready workforce through supporting our people and building future-fit skills,which in turn drive our business growth.This also entails defining new ways of working for our people,so that we can thrive person
330、ally and professionally in a sustainable way.To bring this vision to life and to build our workforce of the future,our people strategy prioritises the following areas:Workforce transformationUpskilling and developmentWellness and flexibilityWorkplace redesignInclusion&Diversity People engagementHuma
331、n ingenuity and skills such as authenticity,empathy and creativity will become more critical in an age of technological advancement and disruption.Our role as people leaders is to deliver a future where people and technology can thrive better together,deliver faster,more intelligent and better outco
332、mes,building trust with each other,our clients,and broader stakeholders.”Ewan ClarksonChief People Officer,PwC China“6667Our workforce strategy focuses on future-proofing the skills,career and work experience of our people.Given the evolving macro environment,it is vital that our people can thrive i
333、n dynamic settings.We strive to create an environment where our peoples values are aligned with those of PwC to act with integrity,make a difference,care,work together and reimagine the possible.Beyond celebrating milestone moments and translating our peoples views into action and impact,we continue to adapt our value proposition to align with the shifting needs and expectations of our people.Reco