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1、2023 ESG Report Accelerating sustainable and inclusive growth for all McKinsey colleagues Damien,Wenting,and Liz.McKinsey colleagues Damien,Wenting,and Liz.2023 ESG ReportAccelerating sustainable and inclusive growth for allIntroductionSustainabilityInclusive growthResponsible practicesReporting app
2、roach Contents Introduction 3 Message from our global managing partner 4 2023 progress highlights 5 About McKinsey 7 How we partner with our clients 9 How we fuel progress with insights 10 How we approach ESG Sustainability 14 Sustainability at a glance Our clients 15 Advancing the netzero transitio
3、n with our clients Our actions 18 Charting our firms path to net zero Inclusive growth 21 Inclusive growth at a glance Our clients 22 Driving inclusive growth with our clients Our actions 26 Building a distinctive and inclusive workforce at our firm 32 Developing and caring for our colleagues Our gi
4、ving 36 Advancing economic inclusion in our communities Responsible practices 40 Responsible practices at a glance 41 Our risk and compliance transformation 43 Ethics and compliance 45 Risk management 47 Working with clients 48 Working with suppliers 50 Human rights 52 Data privacy and information s
5、ecurity Reporting approach and appendix 54 Report scope 55 Stakeholder engagement 60 Materiality assessment 62 How we create value 63 Our detailed progress toward net zero 67 Performance data 73 GRI content index 79 World Economic Forum IBC index 81 TCFD index 87 Report of independent certified publ
6、ic accountants22023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach Message from our global managing partner It was a year of upheaval and opportunity.Devastating wars and humanitarian crises impacted countless lives,and people across the world faced econo
7、mic uncertainty.Still,global growth was better than expected.Generative AI entered the mainstream,promising to unleash productivity and democratize innovation.And landmark climate actions were accelerated at COP28.Only the most resilient agendas thrived in 2023.Our work to accelerate sustainable and
8、 inclusive growth was one of them.Its the metric we use to measure our impact on society and the planet.In this report,we take stock of that effort.Sustainability We aspire to be the largest privatesector catalyst for decarbonization.That begins with our client work,which included 1,720 sustainabili
9、ty engagements with 761 clients in 2023 alone.We served as an impact partner for COP28,driving action that included helping to establish the Oil and Gas Decarbonization Charter.Its 50 membersrepresenting 40 percent of global productionhave committed to nearzero methane by 2030.We partnered with Fron
10、tier in its$156+million offtake agreements to permanently remove more than 338,000 tons of CO2 from the atmosphere by 2030.Inside of our own firm,we collected an internal carbon fee of$50 per ton on all of our air travel emissions while also adopting new ways of working to reduce travel.Inclusive gr
11、owth We believe growth is good.Its essential for organizations and people to thrive.Each year,our clients contribute 20 percent of GDP growth and create one million jobs.Leap by McKinsey has helped build 620 new businesses since 2019,including more than 20 unicorns or decacorns.In 2023,we enrolled 2
12、9,600 participants in our Connected Leaders Academy training program to help equip future leaders to meet their aspirations.And McKinsey Academys capabilitybuilding programs celebrated reaching their first one million peoplewith more to come.Economic inclusion was also a focus of our firms research
13、and giving last year.The McKinsey Global Institute published new research on the empowerment line,resetting the floor for progress beyond the poverty line.We also upskilled,reskilled,or supported toward economic inclusion 19 million people through our nonprofit partners and pro bono programs,includi
14、ng Forward and McKinsey.org,to help deliver against our tenyear,$2 billion commitment to social responsibility.And we remain committed to diversity and inclusivity when it comes to our talent.Our belief that“exceptional can come from anywhere”saw us continue broadening our search for talent in 2023.
15、Today,our global workforce is 48 percent women.Responsible practices Adhering to the highest professional and ethical standards is one of our core values,and we constantly refine how we do that in practice.Last years enhancements included a reimagined Code of Conduct and new policies and oversight t
16、o guide the responsible use of generative AI.Our risk,legal,and compliance teams include worldclass experts from top public and private institutions.Their work is bolstered by approximately$1 billion in spending in these areas since 2018.In 2023,we vetted 100 percent of new clients against our CITIO
17、 clientservice framework,which serves as a guide for what work we will and will not do.All of our colleagues are required to complete comprehensive training on our policies annually.Every member of our firm is critical to upholding our high standards.Creating positive,enduring change means working s
18、ide by side with leaders from idea to impact delivery.We encourage them to take action,and we build their capabilities to help them continue driving transformative impact over time.Its our privilege to serve our clients and communities in this way,and Im humbled to help add this chapter to the nearl
19、y 100year story of our firm.Bob Sternfels Global managing partner,McKinsey&Company32023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach 2023 progress highlights Sustainability 4,600 of our colleagues worked on 1,720 sustainability engagements with 761 clie
20、nts across 67 countries and in every industry 2,000 climate technology leaders convened at our Green Business Building Summits in 13 countries$156M+allocated by Frontier buyers,including McKinsey,across four offtake agreements to support innovative carbon removal companies1 100%of our air travel emi
21、ssions are covered by a$50/ton internal carbon fee to finance our carbon related procurement2 Inclusive growth19M people upskilled,reskilled,or supported toward economic inclusion through our nonprofit partners and pro bono programs$856M contributed in monetary and inkind support since 2020 toward o
22、ur$2 billion commitment to social responsibility by 2030($206 million this year)48%of our global workforce were women3 620 new businesses created by Leap by McKinsey since 2019,including 20+unicorns or decacorns Responsible practices$1B spent on building,enhancing,and operating our risk,legal,and co
23、mpliance functions since 2018 100%of our new clients were vetted against our industry leading CITIO client service framework4 100%of colleagues completed annual risk training and certified compliance with firm policies and our Code of Conduct5 1 Learn more about the Frontier offtake agreements.2 In
24、2023,we collected the carbon fee on all air travel.Starting in 2024,we will collect the fee on all carbon emissions,including,but not limited to,emissions from air travel,ground transportation,and hotel stays.3 All demographicrelated metrics in the report are based on colleague selfidentification.4
25、CITIO is the framework we use to assess a potential client or engagement consisting of five interrelated dimensions:Country,Institution,Topic,Individual,and Operational considerations.Learn more about CITIO.5 This figure does not include firm members exempted from the training because they werent ac
26、tively working at the time of the program(for example,leave of absence,left our firm).42023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach About McKinsey McKinsey is a global consulting firm.We are united by our dual mission,a strong set of values,and the
27、 drive to deliver positive,enduring change with our clients.In a world facing growing inequality and the impact of climate change,our aspiration is to accelerate sustainable and inclusive growth in the societies where we operate.Our purpose To help create positive,enduring change in the world Our mi
28、ssion To help our clients make distinctive,lasting,and substantial improvements in their performance and to build a great firm that attracts,develops,excites,and retains exceptional people Our values Adhere to the highest professional standards Improve our clients performance significantly Create an
29、 unrivaled environment for exceptional people Learn more about our purpose,mission,and values 45,100 colleagues 68 countries 4,100 clients served$16B revenue 52023 ESG ReportColleagues in our London office.IntroductionSustainabilityInclusive growthResponsible practicesReporting approach We aspire to
30、 accelerate sustainable and inclusive growth Our aspiration is to drive measurable progress on sustainability,inclusion,and growthall at the same time.When economies thrive and the planet flourishes,people everywhere have a better chance at a better life.For us,this starts with growth.But not just a
31、ny growth.Growth that builds resilience and leaves no one behind.The kind that helps businesses prosper and catalyzes positive enduring change for people and the planet alike.Learn more about how we are driving measurable progress.Were partnering with our clients to lead on sustainable and inclusive
32、 growth.6 They have contributed:20%of global GDP growth 1M new jobs per year 80%of reported CO2 emissions reductions 6 The following numbers are based on our ongoing analysis of publicly held companies between 20152022.We assess the percentage of global gross domestic product(GDP)growth driven by ou
33、r clients,relative to total global GDP growth.In the same time period,we look at total Scope 1 and Scope 2 CO2 emissions reductions reported by these publicly held companies and the percentage of those achieved by our clients.We also establish the average net new jobs created by our publicly held cl
34、ients during this period.62023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach How we partner with our clients Our work stretches across industries and organizational functions,covering the entirety of top management priorities.We partner with clients from
35、 idea to impact delivery,assembling diverse teams of industry experts,strategists,sector specialists,technologists,and implementation specialists who leverage our broader ecosystem of tools and technologies.We evolve with our clients and continuously strengthen our capabilities to anticipate and mee
36、t their needs.We partner with leaders to:Build strategies for growth and resilience.We pinpoint the right strategy to transform organizations as well as design,build,and scale new businesses.Transform with technology and generative AI.We combine strategy,culture,and capabilities with execution and d
37、elivery to unlock the transformative power of technology.Drive climate action and growth.We partner with clients to build new green businesses,invest sustainably,and apply the latest in climate technology.Develop organization-wide skills and capabilities.We work with clients to build the teams,skill
38、s,systems,and culture needed to thrive.$1.27B invested in innovation,knowledge,and capabilities Henrique,a senior expert,and Thalita,an associate partner,at our Innovation&Learning Center in So Paulo.72023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach We
39、 power our client work through a dynamic tech ecosystem To help our clients in a rapidly changing world,we must continuously innovate and extend our capabilities.From cloud and artificial intelligence(AI),to sustainability and change acceleration,our open ecosystem allows us to serve as endtoend par
40、tners for our clients,maximizing the value we create together.Our ecosystem spans the private and public sectors,as well as incumbents and new businesses,and includes acquisitions across data,analytics,implementation,and more.Our alliances We work with more than 500 ecosystem partners to bring the r
41、ight solutions to clients,driving efficiencies,reducing costs,increasing productivity,and creating value.Learn more about our alliances,including our featured alliances below.Our solutions Our portfolio of tech-enabled tools,including the sampling below,leverages advanced technology,data,and experti
42、se to support clients through diagnostics,market intelligence,management technology,and analytics.Catalyst ZeroCustomerOne Nebula PlatformOrgSolutions Deploying generative AI at scale We partner with top technology companies,both established and emerging,to deliver stateoftheart generative AI(GenAI)
43、capabilities to our clients.Through QuantumBlack,we unlock the power of AI to help our clients reinvent themselves from the ground upand accelerate sustainable and inclusive growth.We continue to augment our capabilities through strategic acquisitions such as Candid for cloud computing,Caserta for d
44、ata architecture,and Iguazio for machine learning.QuantumBlack Labs,our machine learning innovation hub,develops cuttingedge products like Kedro and CustomerOne.These solutions empower organizations with advanced data management and customercentric AI capabilities,allowing them to stay ahead in an e
45、volving digital landscape.Our GenAI ecosystem is the central hub for our clients to leverage expertise and solutions from our strategic alliances across all parts of the technology stack.Learn more about how we are partnering with cutting-edge innovation leaders.82023 ESG ReportIntroductionSustainab
46、ilityInclusive growthResponsible practicesReporting approach How we fuel progress with insights We use our insights to drive impact with clients,communities,and as a firm,then make them publicly available to catalyze positive change at scale.Across our industry practices,capabilities,and institutes,
47、we produce reports and articles on the trends shaping business,society,and the planet.Our research helps leaders:Navigate key economic and societal issues For more than 30 years,the McKinsey Global Institute has provided a fact base to help companies and policy leaders make decisions on critical eco
48、nomic and business issues.The McKinsey Institute for Black Economic Mobility is focused on inspiring,empowering,and sustaining action that leads to the economic development of Black communities across the world.Shape better health outcomes To spur the actions needed to improve life expectancy and qu
49、ality of life,the McKinsey Health Institute designs,conducts,and invests in research on topics like brain health,employee health,and healthy aging.Drive transformative use of technology The McKinsey Technology Council convenes more than 100 scientists,entrepreneurs,researchers,and business leaders a
50、nd publishes research to help executives from all sectors navigate the fastchanging technology landscape.We publish our insights to advance knowledge and enable action at scale through:McKinsey Quarterly This year marks the 60th anniversary of the McKinsey Quarterly,which combines insights from our
51、firm with ideas from other leading experts to help readers stay at the cutting edge of management thought,become more effective leaders,and boost the performance of their organizations.McK We make our research available to all on our website.In 2023,our website received more than 104 million total r
52、eads and was recognized by Editor&Publisher as the best business website.McKinsey Insights app From articles and reports to videos and podcasts,the app shines a light on key management opportunities and challenges across every industry.In 2023,we achieved 1.95 million active subscribers,87.3 million
53、 total reads of our published insights,and 128 industry awards.92023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach How we approach ESG At McKinsey,our commitment to accelerating sustainable and inclusive growth informs and guides our Environmental,Social
54、,and Governance(ESG)agenda.Our ESG priorities,identified through periodic materiality assessments,are integral to our firms broader sustainable and inclusive growth strategy;both are underpinned by our commitment to responsible business practices.Our aspiration To accelerate sustainable and inclusiv
55、e growth Environmental Sustainability Become the largest private sector catalyst for decarbonization Social Inclusive growth Build inclusive economies,institutions,and workforces that reflect our communities Governance Responsible practices Lead with integrity and set the standard for accountability
56、 and compliance in our profession How we bring our aspiration to life Our clients We partner with clients toaccelerate sustainable andinclusive growth that can bemeasured in the societies inwhich we operate We partner with clients to accelerate sustainable and inclusive growth that can be measured i
57、n the societies in which we operateOur insights We develop research andinsights that help leaderspinpoint strategies that willreshape tomorrow We develop research and insights that help leaders pinpoint strategies that will reshape tomorrowOur actions We implement our best insightsand client counsel
58、 to manageour firm responsibly and makeprogress towardou commitments We implement our best insights and client counsel to manage our firm responsibly and make progress toward our commitmentsOur giving e advance economic inclusionby promoting job creation andplacement,upskilling,reskilling,and educat
59、ionWe advance economic inclusion by promoting job creation and placement,upskilling,reskilling,and education102023 ESG ReportWIntroductionSustainabilityInclusive growthResponsible practicesReporting approach United Nations Sustainable Development Goals The UN Sustainable Development Goals(SDGs)provi
60、de a global framework for achieving a better and more sustainable future for all.Through our client service,operations,research and insights,and support for communities,we are contributing in varying degrees to all 17 SDGs,but the nine below represent where we are have the greatest capacity for impa
61、ct and action.Our contribution to the UN SDGs Sustainability Inclusion Growth Accountability and transparency We seek to set the standard for accountability and compliance in our profession.Thats why we continually enhance our transparency and accountability to our clients,our colleagues,and our sta
62、keholders.We support the World Economic Forum International Business Councils(IBC)Stakeholder Capitalism Metrics initiative and serve as a member of the World Business Council for Sustainable Development (WBCSD).We are a member of the United Nations Global Compact (UNGC)and submit to it our annual C
63、ommunication on Progress(CoP).We also participate in CDPs climate change disclosure program and receive an annual rating from EcoVadis,the leading sustainability ratings organization.Our climate reporting is aligned with the Task Force on Climate-related Financial Disclosures (TCFD)and with the four
64、 recommendations for Limited Disclosures as outlined by Accounting for Sustainability.To learn more,read our TCFD index.Governance We operate as“one firm”united globally by our collective purpose,mission,and values.We are led by our global managing partner,elected board of directors known as the Sha
65、reholders Council(SHC),global leadership team known as the Acceleration Team(AT),and the leaders of our offices and practices.Learn more about our leadership.The SHC includes the managing partner and 30 senior partners who are elected by their peers to serve threeyear terms.7 Its committees cover to
66、pics such as client service;firm finance and infrastructure;our People model;risk,audit,and governance;and our technology,knowledge,and capabilities.In addition to their technical competencies across a range of domains and industries,our SHC members include experts on environmental sustainability;in
67、clusive economic growth;diversity and inclusion;and other ESG topics.Each SHC committee,except the Administrative committee,has a chair who plays the important role of ensuring that the committee operates effectively and fulfills its mandate.The chairs responsibilities include setting agendas,establ
68、ishing committee priorities,presiding over meetings,facilitating participation,overseeing voting,keeping the SHC informed of its agenda and progress,and communicating committee decisions to the SHC.The AT comprises the managing partner and firm leaders representing regions,industries,client capabili
69、ties,finance,people,technology,legal,reputation,ethics and compliance,and risk functions.It aims to support and accelerate the execution of our strategies.Committees of the Shareholders Council Committee Focus areas Administrative Handling administrative and ministerial functions,and assisting with
70、implementation of actions previously approved by the SHC or one of the SHC committees.ClientSetting strategic direction,policies,and standards for overall client service and monitoring performance.Finance and Infrastructure Overseeing financial policies and providing stewardship of our firms financi
71、al and infrastructure resources.PeopleSetting our People mission,strategy,and policies and monitoring performance.Developing standards and criteria for election to partner,and approving partner election recommendations.Risk,Audit,and Governance Providing strategic direction to and oversight of our f
72、irms risk management and compliance activities and overall governance.Providing oversight of internal audit and ESG programs and disclosures.Technology,Knowledge,and Capabilities Setting strategic direction and policies to help build preeminent capabilities,technology assets,and knowledge to deliver
73、 against our firms aspirations and mission,and further innovate our client service.7 Learn more about our Shareholders Council.112023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach ESG governance At the board level,the Risk,Audit,and Governance Committee(
74、RAGC)of the SHC provides strategic direction to and oversight of our ESG programs and disclosures,including our environmental sustainability strategy and climaterelated efforts,our social responsibility program,and our risk,ethics,and compliance programs.The RAGC oversees ESG Council activity and re
75、ceives and acts upon recommendations from the ESG Council.It approves the ESG disclosure strategy,key policies,initiatives,and new ESG targets,and it periodically reviews progress against our targets.Our global managing partner and members of the RAGC review and approve the content of our annual ESG
76、 Report.Our ESG Council consists of senior firm function,client service,and regional leaders across Sustainability,People,Risk,Communications,Ethics and Compliance,Legal and Internal Audit.It is chaired by the senior partner who serves as our firms chief marketing officer and is responsible for our
77、ESG efforts.The ESG Council oversees implementation of our ESG programs and initiatives and monitors progress against them.In 2023,the ESG Council met periodically to review progress against our ESG priorities,to review our double materiality assessment results,and to provide guidance on preparing o
78、ur firm for compliance with upcoming ESG disclosure regulations.202126%202223%26%3131312023Global governance bodies:Women representation8,9 Number of people Shareholders Council Firms board 3/5 SHC chairs were women in 2023 Acceleration Team Executive committee 8 Percentages may not sum to 100%due t
79、o rounding.9 The global managing partner is included in both the Shareholders Council and the Acceleration Team calculations.The Acceleration Team includes the“extended Acceleration Team.”202133%202230%32%1921232023Women122023 ESG ReportJacky Wright,our chief technology and platform officer.Introduc
80、tionSustainabilityInclusive growthResponsible practicesReporting approach Sustainability In this chapter 14 Sustainability at a glance Our clients 15 Advancing the netzero transition with our clients Our actions 18 Charting our firms path to net zero Bernd,a senior partner in Cologne;Isolde,a busine
81、ss analyst in London;and Wenting,a partner in Houston.132023 ESG ReportSustainabilityIntroductionSustainabilityInclusive growthResponsible practicesReporting approach Sustainability at a glance We aspire to be the largest private sector catalyst for decarbonization Driven by our sector knowledge and
82、 insights,we are moving decisively toward net zero while partnering with clients to do the same.Our clients 1,720 sustainabilityrelated client engagements Our actions 100%of our air travel emissions are covered by a$50/ton internal carbon fee to finance our carbonrelated procurement10 Our insights 9
83、0%of the greenhouse gas(GHG)abatement our planet needs could come from proven technologies11“The net-zero transition must be clean,secure,and affordable.We are working to make this vision a reality every day.”Daniel Pacthod Senior partner,global coleader of McKinsey Sustainability New York 10 In 202
84、3,we collected the carbon fee on all air travel.Starting in 2024,we will collect the fee on all carbon emissions,including,but not limited to,emissions from air travel,ground transportation,and hotel stays.11 To limit global warming to 1.5C,these technologies need to scale exponentially by 2030.Lear
85、n more in our report,What would it take to scale critical climate technologies?2023 ESG Report14IntroductionSustainabilityInclusive growthResponsible practicesReporting approach Our clients Advancing the net-zero transition with our clients We drive climate action and growth by partnering with our c
86、lients to find affordable,reliable,and competitive paths to net zero.Our insights An affordable,reliable,competitive path to net zero Read our guide to a successful net-zero transition Our approach The netzero transition is reshaping the global economy,opening new markets and imperiling others.Leade
87、rs now face multiple imperatives:reducing emissions,ensuring affordability of energy and materials,providing reliable and secure energy systems,and strengthening competitiveness for companies and countries.Leaders need to take a holistic approach across these challenges,driving climate action and gr
88、owth in the netzero transition.Sustainability is a missioncritical priority for our firm,and we have been collaborating with our clients to decarbonize,build climate resilience,and address sustainability challenges for more than a decade.We have committed to rapidly scaling this work to help clients
89、 in all industries reach net zero by 2050,and to help the world reach the goals of the Paris Agreement.With proprietary tools and technology,distinctive thought leadership,leading talent,and crosssector collaborations,we embolden clients to lead a wave of innovation that safeguards our planet and cr
90、eates growth.McKinsey Sustainability supports diverse industries in achieving these complex yet attainable goals.We partner with entrepreneurs and startups to drive technological innovation,deployment,affordability,and scale at unprecedented speed.We work with banks and investors to decarbonize thei
91、r portfolios and spur sustainable financing markets.We engage with companiesincluding those in highemitting sectorsto reduce emissions and save costs while meeting the worlds needs for food,energy,and materials.By scaling innovative green ventures,deploying substantial investments,and expediting dec
92、arbonization efforts,organizations can make rapid strides toward their climate commitments,measuring progress in months rather than decades.4,600 colleagues working on sustainability engagements 67 countries where we are partnering with clients on sustainability engagements 2023 ESG Report15Introduc
93、tionSustainabilityInclusive growthResponsible practicesReporting approachOur key actions in 2023Deploying our core client capabilitiesHyperscaling green businessesWe helped ambitious entrepreneurs and innovators inside corporations define and capture the full potential of new ideas for green busines
94、ses.12 For critical climate technologies,we partnered with our clients to advance pathways to achieve the scale,deployment,and innovation required to lower technology costs and build markets for nextgeneration climate solutions.We also hosted Green Business Building Summits in 13 countries,convening
95、 2,000 Csuite executives from green tech disruptors,incumbents with ambitious green growth agendas,and sustainability investors to discuss key challenges and successes.Creating value through decarbonizationApproaching net zero requires companies to take a comprehensive look at their systemsfrom prod
96、uct design and supply chain to manufacturing and operationsto determine where the carbon is and the best methods for removing it.In 2023,we helped companies at all stages of maturity identify decarbonization opportunities that work both environmentally and financially.Amplifying climate investmentWe
97、 worked closely with asset managers,banks,insurers,and other financial institutions to reduce their climaterisk exposure,take their operations to netzero carbon emissions,and develop new sustainabilityrelated products.We also worked closely with private equity firms and investors to help them create
98、 investment strategies,identify and assess the most promising opportunities for carbon reductions,and drive the success of their sustainabilityfocused portfolio companies.Read our sustainability impact stories to learn how we have partnered with clients.Convening global leaders to catalyze impact at
99、 COP28As an impact partner for COP28,our firm provided insights and analysis to drive ambitious action across 12 Presidential Action Agenda areas,including oil and gas decarbonization,health,water,climate finance,technology,and youth engagement.Key outcomes of COP28 included:catalyzing new commitmen
100、ts and financing mechanisms focused on the early retirement of coalfired power plants supporting the establishment of the Oil and Gas Decarbonization Charter,whose 50 members(representing 40 percent of global production)have committed to nearzero methane by 2030 providing knowledge partnership for t
101、he first COP Health Day,mobilizing$1 billion of finance toward climatehealth solutions supporting the launch of the COP28&SME Climate Hub for MENA,which includes resources and tools to help small and medium enterprises(SMEs)in the Middle East and North Africa make a netzero commitment,calculate thei
102、r emissions baseline,and measure their progress toward emissions reduction helping launch the Innovate for Climate Tech Coalition to strengthen climate tech ecosystems in the Global South,democratize access to knowledge and capacity building,and spur climate tech innovation launching GBB-100,a McKin
103、sey Green Business Accelerator,which has provided 1:1 coaching to more than 150 climate tech startups and scaleupsIn addition to our support for the COP28 Presidential Action Agenda,we published new insights,collaborated with business,government,and civil society leaders to devise transformative cli
104、mate solutions,and convened senior executives for a series of events in Dubaiall focused on how to achieve the worlds climate ambitions while creating economic opportunity for people,communities,and businesses.Replay these discussions and read our insights.Our insights:Measuring the socioeconomic im
105、pacts of the net-zero transitionAlthough the netzero transition has been extensively researched,the socioeconomic impacts have not been considered at sufficient scale and complexity.We developed the Climate Transition Impact Framework (C-TIF)to address this gap,in concert with more than 60 organizat
106、ions.The C-TIF proposes a structured,forwardlooking approach that enables decisionmakers to compare the potential socioeconomic impacts of different climate action pathways.Its intent is to advance the netzero transition by enabling the world to meet the goals of the Paris Agreement in a humancentri
107、c way.The framework has an initial list of 50 metrics across five dimensions:affordable energy access,investment requirement,jobs impact,growth and competitiveness,and lived environment and health.Our insightsWatch highlights from COP2812 Defined as businesses that support a 1.5 C pathway to net zer
108、o.Learn more about our green business building.162023 ESG ReportIntroduction Sustainability Inclusive growth Responsible practices Reporting approach Case studies Lufthansa:Using data to enhance carbon footprint visibility We developed a solution to help Lufthansa gain greater visibility into its pr
109、ocurement data and carbon footprint via the Spendscape platform.This is helping Lufthansa make progress toward its goal to halve emissions by 2030 and reach carbon neutrality by 2050.Partnering with SAP,we coalesced data sources from across its global network and leveraged our Spendscape solution to
110、 provide a full understanding of Lufthansas procurement spend and Scope 3 emissions to enable actions that simultaneously reduce emissions and costs.100%spend transparency across connected systems Learn more TPG:Building a next-generation carbon platform In partnership with TPG,we created Rubicon Ca
111、rbon,a digital platform that connects companies to riskadjusted portfolios of highquality carbon credits to accelerate their paths to net zero.The platform has grown to become a market leader in nextgeneration carbon solutions,including four distinct product offerings and a$1 billion targeted capita
112、l commitment.$1B targeted capital commitment Learn more One Ocean Foundation:Using GenAI to help green businesses better protect the ocean QuantumBlack,our AI arm,has collaborated with One Ocean Foundation,based in Italy,to quantify what businesses are doing to protect the oceans.Using analytics and
113、 GenAI,QuantumBlack analyzed the sustainability reports of 2,500 companies across 17 sectors to identify actions in support of ocean sustainability.GenAI was used to extract detailed information from the reports,providing insights on partnerships,eco design,and other initiatives.The resulting report
114、 highlights the opportunity for companies to develop“blue businesses”and outlines various projects and technologies that can create value and reduce costs.The collaboration aims to create an Ocean Disclosure Initiative for businesses to track their marinerelated projects.2,500 companies across 17 se
115、ctors Learn more 172023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approachOur actionsCharting our firms path to net zeroTo make net zero a reality,the world must decarbonize at an unprecedented speed.Thats why we are committed to reaching net zero in line wit
116、h the latest climate science through decarbonizing our own operations and permanently removing all remaining emissions.Our approachWe have submitted our 2050 sciencebased netzero target to the Science Based Targets initiative (SBTi)for validation,the industrys most rigorous scientific standard.13 To
117、 achieve this target,were focused on cutting our emissions,compensating for our remaining emissions,and catalyzing climate action by working with clients,nonprofits,suppliers,and peers to protect nature,advance new technologies,and ensure critical climate financing.We have put into place near and lo
118、ngterm actions to reduce our emissions in line with a 1.5C future(versus a 2019 baseline).By 2025,we will have reduced our direct emissions by 25 percent and our travel emissions by 35 percent per fulltime equivalent(FTE)and transitioned to 100 percent renewable electricity.14 As of today,we are on
119、track to achieve these targets.By 2030,we will further reduce our combined direct and travel emissions by 55 percent per FTE and address all our unabated emissions through carbon removals.By 2050,we have committed to reduce our direct emissions by 90 percent absolute and travel emissions by 97 perce
120、nt per FTE.13 In 2023,we took several steps to further enhance and accelerate our decarbonization efforts,including expanding our sustainability targets into 2050 by submitting a new SBTialigned netzero target for validation.We also further strengthened our existing 2025 and 2030 targets defining ad
121、ditional emissionsreduction actions,including operational changes and sustainable aviation fuel procurement.14 We aligned our 2025 nearterm target with the latest SBTi guidance,leading to an increase in our Scope 3 reduction target from 30%to 35%.The validation of our resubmission is pending.For add
122、itional details on our SBTi target boundary,please see our greenhouse gas reporting methodology and restatements.2023 ESG Report1814.62.62.36.66.42019 2020 2021 2022 2023IntroductionSustainabilityInclusive growthResponsible practicesReporting approachOur firms path to net zero:2023 progress highligh
123、ts1.Cutting our emissions Covered 3 percent(7,500 tCO2e)of our 2023 flight emissions with sustainable aviation fuel(SAF)certificates,15 procured 100 percent renewable electricity,and increased our use of electric vehicles to 32 percent.Submitted our 2050 sciencebased netzero target for validation,co
124、mmitting to a 90 percent absolute Scope 1 and 2 emissions reduction vs.2019 and a 97 percent reduction of Scope 3 business travel emissions per FTE.Made CDPs Climate Change A Listthe gold standard for climate disclosurefor our transparency and leadership.56%absolute Scope 1 and 2 emissions reduction
125、 versus 201956%Scope 3 travel emissions per FTE reduction vs.20192.Compensating for remaining emissions Leveraged our carbon fee to compensate for 100 percent of unabated emissions with a 50 percent removal share and paid a blended average carbon price of approximately$29/tCO2e(across carbon credits
126、 and SAF certificates).Further strengthened our due diligence processes internally and with BeZero,Carbon Direct,and Sylvera to improve quality and transparency in the carbon market.$50/ton internal carbon fee on air travel50%carbon removal share3.Catalyzing climate action now Participated in Fronti
127、ers$156+million offtake agreements to permanently remove more than 338,000 tons of CO2 from the atmosphere by 2030.16 Signed firstever transaction of jurisdictional carbon credits through the LEAF Coalition working to end tropical deforestation,worth over$60 million combined.17 Took part in the Sust
128、ainable Aviation Buyers Alliance (SABA)SAF request for proposal(RFP)with a cumulative purchase commitment of 500,000 tCO2e equaling approximately$200 million.18$156M+allocated by Frontier buyers across four offtake agreements$200Mforwardlooking SAF purchase commitment by SABAWe are on track to meet
129、our 2025 science-based targets-5566%32019 2020 2021 20220.47.62023181515138-5566%Scope 1Scope 2(market-based)Scope 3Scope 1 and 2 emissions,actuals vs.targetKilotons CO2e,market-based13.5 Our 2025 target 25%absolute reduction vs.2019Scope 3 per FTE travel emissions,actuals vs.targetTons o
130、f CO2e/FTE,GHG impact only9.5 Our 2025 target 35%reduction per FTE vs.201915 SAF is an alternative,dropin jet fuel which,compared to fossil jet fuel,can reduce emissions significantly.SAF is not made from fossil fuels and can be derived in various ways,from repurposing waste feedstocks,such as used
131、cooking oil,to synthesizing SAF from clean hydrogen and captured carbon.Learn more about how we account for SAF certificates in our greenhouse gas reporting methodology and restatements.16 Learn more about the Frontier offtake agreements.17 Learn more about the LEAF Coalition offtake agreements.18 L
132、earn more about the SABA RFP.192023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approachInclusive growthIn this chapter21 Inclusive growth at a glanceOur clients22 Driving inclusive growth with our clientsOur actions26 Building a distinctive and inclusive workf
133、orce at our firm32 Developing and caring for our colleaguesOur giving36 Advancing economic inclusion in our communitiesCenk,a partner in Boston;Tiffany,a senior partner in Atlanta;and Damien,a business analyst in London.202023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practices
134、Reporting approachInclusive growth at a glanceWere helping build inclusive economies,institutions,and workforcesThrough our client work,operations,and community engagement,we seek to accelerate growth that builds resilience and enables more people to contribute to and benefit from a growing economy.
135、Our clients 1M participants reached through McKinsey Academys capabilitybuilding programs since 2014Our actions 19M people upskilled,reskilled,or supported toward economic inclusion through our nonprofit partners and pro bono programsOur insights 46%average persons lifetime earnings come from skills
136、 learned on the job19 212023 ESG Report“As the economy expands,there should be more for allthat is where growth and inclusion come together.”Tania HoltSenior partner,leader of Europe social sector practiceLondon19 Learn more in our report,Performance through people:Transforming human capital into co
137、mpetitive advantage.212023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approachOur clientsDriving inclusive growth with our clientsWe aim to drive economic growth that gives more people a chance at a better life.Our approachTopperforming organizations can uplif
138、t communities,create jobs,and expand markets in ways that generate more opportunity for everyone.And when leaders draw talent and new customers from all walks of life,they find the best employees and expand their market reach.We help leaders build healthy,resilient organizations and help people buil
139、d skills to participate in and benefit from a growing and changing economy.Colleagues in our New York office.We partner with our clients to:Innovate to unlock new growthThrough our advanced technology,AI tools,and constant innovation,we work with clients to grow in a way that empowers households,pro
140、motes equitable opportunity,and serves a wide range of stakeholders.Build new businesses in every sector We build new businesses from the ground up,enabling them to scale at speed.By partnering with clients to unlock new sectors and markets,we create jobs,value,and the unicorns of tomorrow.Expand in
141、clusion in workforcesWe drive lasting organizational change by upskilling,reskilling,and developing our clients employees,building new leadership and functional skills that enable them to succeed in the future of work.Foster inclusion in customer basesWe collaborate with clients to access untapped o
142、pportunities in underserved markets at home and abroad.We bring people and technology together to help new enterprisesand new customersthrive.222023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approachOur clientsOur key actions in 2023Fueling inclusive growth t
143、hrough tech and AITogether with our clients,we fuse human aptitude with machine intelligence to create opportunities.Partnering with Csuites to change their talent,operating models,technology,and data capabilities,we rewire organizations for digital transformations that endureand build new businesse
144、s that become engines of growth.Through our Rewired approach to digital transformation,we work with clients to build capabilities,upskill workers,and techenable their operations.Noble Intelligence is our AI for Good initiative,housed within QuantumBlack.In partnership with nongovernmental organizati
145、ons,the private sector,and tech providers,Noble Intelligence advances the UN SDGs through data and AI.For example,through Disha (or Data Insights for Social&Humanitarian Action),we are using data and AI to improve the effectiveness of humanitarian work,peacebuilding,and development.Unlocking growth
146、through LeapHalf of CEOs cite business building as a top three priority and their biggest lever for growth.20 Leap by McKinsey works with organizations to imagine,build,and scale new businessesand develop the capabilities needed to accelerate sustainable and inclusive growth.By using the power of ge
147、nerative AI,Leap accelerates the newbusiness opportunity identification and design phases from months to weeks,while reducing the time it takes to build businesses through the efficiencies available to software,data,and cloud engineering teams.Since its inception in 2019,Leap by McKinsey has built 6
148、20 new businesses,more than 20 of which have been considered unicorns or decacorns.21 In 2023,the 147 businesses Leap helped build created 16,500 jobs.The companies we have helped build and scale include a green home retrofit platform for a UK bank,a business to promote healthy aging for senior citi
149、zens in India,and a nextgeneration carbon solutions platform in the United States.620 new businesses built by Leap by McKinsey since 2019,including 20+unicorns or decacornsColleagues in our London office.20 Learn more in our survey on new-business building.21 Unicorns refer to companies valued at mo
150、re than$1 billion and decacorns are companies valued at more than$10 billion.232023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approachEquipping people and organizations to unleash sustained performance We help clients create organizations that enable their em
151、ployees to thrive and sustain their performance.One of the ways we do this is by enabling organizations to measure key aspects of their culture.For example,our Organizational Health Index has helped companies assess and improve their organizational health for more than 20 years.In 2023,we refreshed
152、this important diagnostic,enhancing elements around inclusion and belonging,agility,resilience,and the employee experience.We offer similar assessments to allow clients to better understand how to create a diverse and inclusive workplace.We also work with clients to build the capabilities they need
153、to unlock their full potential at scale through McKinsey Academy.In 2023,McKinsey Academy achieved the milestone of reaching more than one million participants since its creation in 2014.Some of our most impactful work in 2023 included upskilling procurement professionals at one of the worlds larges
154、t retailers,helping the aerospace industry transition from a“gray”to“green”workforce,and equipping a major healthcare provider to reimagine the breast care journey for women.Improving lives and livelihoodsOur work with social,healthcare,and public sector entities is focused on creating resilient com
155、munities around the world.We do this by partnering with healthcare leaders to improve the affordability,accessibility,quality,and experience of healthcare;enhancing governments capacity to deliver for people;and collaborating with social sector leaders to tackle pressing societal issues.Highlights f
156、rom our work in 2023 include strengthening workforce capabilities for US veterans,improving the effectiveness of healthcare systems,advancing the manufacturing and distribution of vaccines across Africa,and working with education leaders to improve student outcomes while increasing access and afford
157、ability.Furthering financial inclusionWe partner with clients to help ensure everyone can access financial services that allow them to build wealth,including savings,credit,loans,equity,and insurance.For example,in 2023,we published our third annual report on the opportunity for financial institutio
158、ns to better serve Latino households and small and mediumsize businesses(SMBs).We provided guidance to Csuite leaders across the private,public,and civic sectors on how to help underserved populations fully participate in the US financial system.We also partnered with a bank to analyze the pain poin
159、ts and needs of SMBs,then designed recommendations to provide fair,fast access to capital and digital services for all.Enhancing outcomes through the McKinsey Health InstituteHealthy economies depend on healthy populations.The McKinsey Health Institute (MHI)is addressing health inequity around the w
160、orld by convening leaders,advancing research,creating openaccess data assets,and stimulating innovation.In 2023,this included publishing research in areas such as mental health,employee health,womens health,and healthy aging,and collaborating with ecosystem partners around the world.Our research rev
161、ealed that closing the womens health gap could not only improve the lives of millions of women,but also boost the global economy by at least$1 trillion annually by 2040.MHIs collaboration with the Missing Billion Initiative is advancing health equity by increasing and enhancing data to strengthen ca
162、re for people living with disabilities.MHI is taking action to advance health in cities by partnering with stakeholders at the city,national,and global level,generating learnings that enable others to replicate what proves effective.Our insightsLearn more about the significant potential impact of ad
163、dressing the womens health gapClosing the womens health gap:A$1 trillion opportunity to improve lives and economies242023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approachCase studiesStarbucks:Designing stores that are inclusive for all We partnered with Sta
164、rbucks to create a design framework for more inclusive spaces for people living with disabilities.Future growth plans will include the use of these new accessibility guidelines so that all newly built and renovated Starbucksoperated stores in the United States,including 600 new stores planned in 202
165、4,incorporate these more inclusive design elements.1ST Starbucks store leveraging the inclusive design framework openedLearn more ING:Using generative AI to put people first The global bank ING hears from 85,000 customers by phone and online chat each week in its core market,the Netherlands.To make
166、customer support more inclusive and accessible,we partnered with ING to develop an advanced chatbot.The firstofitskind pilot in Europe provides a scalable model for additional markets where chat support may not have previously been available.37M customers projected to be impactedLearn more CP AXTRA:
167、Building a new platform to help small businesses stay resilient We partnered with CP AXTRA Public Company Limited,the parent company to wellknown wholesaler Makro,to build a firstofitskind businesstobusiness online platform to streamline goodspurchasing for smallbusiness owners in Thailand,helping c
168、reate a more resilient supply chain for small businesses.We also helped embed upskilling and professional development into the organizations culture,building the capabilities of more than 200 employees.200 employees hired and upskilled Learn more 252023 ESG ReportIntroductionSustainabilityInclusive
169、growthResponsible practicesReporting approach Our actions Building a distinctive and inclusive workforce at our firm We operate as a single global partnership,united by acommon purpose,shared values,and a twopart mission that includes creating an unrivaled environment for exceptional people.We conti
170、nue to broaden our search for exceptional individuals,hiring from 200 new global talent sources this year.Our approach Our People strategy ensures that we have the breadth of skills and the diversity of backgrounds and experiences we need to tackle our clients most significant challenges.This includ
171、es continuing to advance our recruiting and hiring practices to focus on potential over pedigree,building a culture that encourages continual skillbuilding(both upskilling and reskilling),and committing to multidirectional,onthejob apprenticeship supported by a direct,honest feedback culture.We cont
172、inue to evolve the ways we help colleagues manage their health,wellbeing and professional development,including equipping individuals with the skills and tools to author their own professional journeys.Through All In,Diversity&Inclusion(AD&I)our internal strategy,policies,and programs promoting dive
173、rsity and inclusionwe seek to create an exceptional environment for all colleagues at our firm.Our People values Our values reflect our expectation that every colleague works to make our firm both distinctive and inclusive.Those values are to:be nonhierarchical and inclusive sustain a caring meritoc
174、racy develop one another through apprenticeship and mentoring uphold the obligations to engage and dissent embrace diverse perspectives with curiosity and respect govern ourselves as a“one firm”partnership 2023 ESG Report All In,Diversity&Inclusion progress22 48%of our global workforce were women 48
175、%of our global new hires were women 28%of our leadership were women 48%of our US workforce were from racial or ethnic groups historically underrepresented in management consulting23 22 All demographicrelated metrics in the report are based on colleague selfidentification.23 Equal Employment Opportun
176、ity(EEO)categories:Black or African American,Asian,Hispanic or Latino,American Indians or Alaskan Native,Native Hawaiian or Other Pacific Islander(not Hispanic or Latino),Two or More Races.Race/ethnicity percentages in performance table may not add up to figure due to rounding.26 IntroductionSustain
177、abilityInclusive growthResponsible practicesReporting approach Attracting top talent We believe exceptional people can come from anywhere.We want our teams to reflect the diversity of our clients,communities,and society.Our key actions in 2023 Reaching talent of the future We want individuals from a
178、ll backgrounds to get to know us,engage with us,and explore what it takes to help our clients succeed.We run:virtual opportunities across all regions for candidates to get to know us,regardless of where they live,work,or study,giving a wider and more diverse pool of candidates the chance to connect
179、with us talent attraction programs,such as Up Next and El Futuro in North America,Future Black Leaders and Skills for Success in Europe,and Young Leaders Bootcamp in Latin America events to introduce LGBTQ+talent and allies to our firm,such as a global Proud Speakers series and Asia Proud Talent HBC
180、U Consulting League for students studying at US Historically Black Colleges and Universities(HBCUs)to provide leadership skills and a meaningful start in consulting We aim to be distinctive and inclusive by recognizing exceptional talent can come from anywhere.We continually introduce new programmin
181、g,including:In North America,we launched the Tech Apprenticeship Program in partnership with Multiverse to create opportunities for professionals from nontraditional backgrounds(for example,candidates without a college degree)to apprentice as software engineers with our firm.In the United Kingdom,we
182、 introduced Make Your Mark,a mentoring program for MBA students in leadership positions who identify as members of communities that are underrepresented.As part of our commitment to expand our recruiting of military veterans,we hosted our first cohort of interns through the US Department of Defenses
183、 SkillBridge program.We also partner with external organizations,including the Society of Hispanic Professional Engineers and Reaching Out MBA in North America,EUROUT and STICKS&STONES in Europe,and Pride Connection in Latin America.We continue to convene the Juntos Conference in Brazil for young Bl
184、ack talent to connect,meet Black professionals,develop new skills,engage with large companies,and learn about career opportunities.Being consciously inclusive in our hiring process To ensure fairness in our hiring processes,we employ a full suite of consciously inclusive solutions to assess candidat
185、es.Each member of our Talent Attraction team completes AD&I and unconscious bias training,and every year we formally recognize colleagues who embody our AD&I commitments through our Changemaker Awards.Our job descriptions emphasize skills,and our improved resumescreening process is more inclusive of
186、 a diverse set of experiences and backgrounds.In 2023,we further democratized our assessment approach by creating a robust interview preparation website to ensure that all candidates receive equal access to our bestinclass preparation materials and trainings.To combat potential biases,we provide inc
187、lusion training for all of our recruiters and assessors to ensure evidencebased hiring decisions in conjunction with a trained and dedicated inclusion adviser.2023 ESG Report Jesse,a senior business analyst in our New York office.27 IntroductionSustainabilityInclusive growthResponsible practicesRepo
188、rting approach All In,Diversity&Inclusion We are building an inclusive culture across the talent pipeline,from recruiting to retention and advancement.Our research underscores that diversity and inclusion are connected to better business performance and talent retention.We use our insights to inform
189、 our strategy and then share what we learn on our journey to impact broader society.As part of these efforts,in 2020,we launched the 10 Actions to advance racial equity in our firm and society.While we have more work to do,we are proud of the progress we have made and will continue our journey to ch
190、ampion diversity and inclusion.Our key actions in 2023 Championing diversity and inclusion within our firm Enhancing careers through sponsorship Based on our research,we know that colleagues need both sponsorship and opportunities to successfully advance.We evaluate each colleague on how much and ho
191、w well they perform as sponsors.Using the data from our annual mentorship,apprenticeship,and sponsorship survey,we design individual interventions to ensure all colleagues receive the support they need to grow and succeed.Equipping colleagues for key life events In 2023,our reboarding program was re
192、cognized by the World Economic Forum as an Inclusion Lighthouse for its significant,quantifiable,scalable,and sustainable impact.The reboarding program ensures that eligible colleagues are well supported before,during,and after qualifying extended leaves,including,for example,medical and parental le
193、aves.We provide structural support and resources to ensure successful reentry to the workplace,such as a customized reentry plan,professional executive coaching,and bestinclass benefits.13,900 colleagues in our Inclusion Allies program Building communities that promote belonging Our networks and com
194、munities support our people,providing a welcoming environment in which mentorship and community create an unparalleled sense of belonging and growth.In 2023,we continued to expand the groups to reflect our increasingly diverse firm.For example,we launched a global group around social mobility called
195、 PRISM(Progressing Representation and Inclusion in Social Mobility).Our LGBTQ+group grew and renamed itself Equal at McKinsey to reflect the groups diversity and ensure equality for all its members.Membership has also increased in our other groups,including the McKinsey Black Network,Hispanic and La
196、tino Network,Asians at McKinsey,Veterans at McKinsey,and Access McKinsey (colleagues with disabilities,chronic illnesses,and mental health challenges).We are proud to be recognized for our LGBTQ+inclusive environment:2023 ESG Report Colleagues celebrating Pride Cologne.28 We are proud to be recogniz
197、ed for our LGBTQ+inclusive environment:All In,Diversity&InclusionWe are building an inclusive culture across the talent pipeline,from recruiting to retention and advancement.Our research underscores that diversity and inclusion are connected to better business performance and talent retention.We use
198、 our insightsto inform our strategy and then share what we learn on our journey to impact broader society.As part of these efforts,in 2020,we launched the 10 Actions to advance racial equity in our firm and society.While we have more work to do,we are proud of the progress we have made and will cont
199、inue our journey to champion diversity and inclusion.Our key actions in 2023Championing diversity and inclusion within our firmEnhancing careers through sponsorshipBased on our research,we know that colleagues need both sponsorship and opportunities to successfully advance.We evaluate each colleague
200、 on how much and how well they perform as sponsors.Using the data from our annual mentorship,apprenticeship,and sponsorship survey,we design individual interventions to ensure all colleagues receive the support they need to grow and succeed.Equipping colleagues for key life eventsIn 2023,our reboard
201、ing program was recognized by the World Economic Forum as an Inclusion Lighthouse for its significant,quantifiable,scalable,and sustainable impact.The rebefore,during,and after qualifying extended leaves,including,for example,medical and parental leaves.We provide structural support and resources to
202、 ensure successful reentry to the workplace,such as a customized reentry plan,professional executive coaching,and bestinclass benefits.Building communities that promote belongingOur networks and communitiessupport our people,providing a welcoming environment in which mentorship and community create
203、an unparalleled sense of belonging and growth.In 2023,we continued to expand the groups to reflect our increasingly diverse firm.For example,we launched a global group around social mobility called PRISM(Progressing Representation and Inclusion in Social Mobility).13,900colleagues in our Inclusion A
204、llies programOur LGBTQ+group grew and renamed itself Equal at McKinsey to reflect the groups diversity and ensure equality for all its members.Membership has also increased in our other groups,including the McKinsey Black Network,Hispanic and Latino Network,Asians at McKinsey,Veterans at McKinsey,an
205、d Access McKinsey(colleagues with disabilities,chronic illnesses,and mental health challenges).IntroductionSustainabilityResponsible practicesReporting approachInclusive growthColleagues celebrating Pride Cologne.282023 ESG Reportboarding program ensures that eligible colleagues are well supported I
206、ntroductionSustainabilityInclusive growthResponsible practicesReporting approach Fostering inclusion and allyship We strive to build an inclusive culture in which all colleagues feel a sense of belonging,fairness,and authenticity.Almost 13,900 colleagues are part of our Inclusion Allies program,desi
207、gned to develop,connect,and activate a global cohort of inclusive leaders through training,initiatives,mentoring,and research.With operations in 144 cities,we set global AD&I aspirations while creating space for local contexts.We recognize diversity in the United States,for example,is different than
208、 diversity in France or Brazil.So,we set a global vision while tailoring our initiatives to local contexts.For example,as part of our effort to create a diverse and inclusive environment globally,we launched a new MENAT(Middle East,North Africa,and Trkiye)group in 2023,with a particular focus in Eur
209、ope,where diversity and contexts can vary by country.Better serving our clients Diverse teams and leadership are critical for enabling talent acquisition,enhancing innovation,and improving customer insights.We serve our clients by bringing diverse perspectives through our teams and convening experts
210、 and key stakeholders to advance diversity,equity,and inclusion(DEI)thought leadership globally.Counseling clients on DEI Our People&Organizational Performance practice supports clients by integrating inclusive behaviors into broader transformational work and delivering solutions to advance companie
211、s aspirations for creating inclusive cultures in which everyone has a chance to reach their full potential.By partnering with our clients to build the next generation of leaders,including from diverse backgrounds,we continue to help drive substantial,lasting performance improvements.Learn more about
212、 how we partner with clients to drive inclusive growth.Convening the worlds most influential women leaders In 2023,we launched the Worlds Most Influential Women event,convening women leaders from around the world who are driving societal and economic change.The event created a platform for senior wo
213、men to discuss key issues such as resilience,sustainable and inclusive growth,and leadership with their peers.Promoting LGBTQ+inclusion in the private and social sectors In 2023,we also launched the Inclusive Leaders event in Europe,convening senior business leaders to share our latest research on h
214、ow to promote LGBTQ+inclusion in the workplace,including better understanding the transgender experience.2023 ESG Report29 Ralph,a partner in Cologne,at our Inclusive Leaders event.2023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach Driving positive socie
215、tal change One of our greatest opportunities to advance diversity and inclusion on a global scale is through our significant investments in research and insights across wideranging topics,from economic mobility to diversity in the workplace.At the same time,we work to uplift diverse communities thro
216、ugh partnerships,supplier diversity programs,pro bono projects,and charitable giving.Developing insights to accelerate action Through our broad portfolio of diversity and inclusion research,we strive to be a leading voice on the subject.In 2023,our Women in the Workplace report was the largest study
217、 on the state of women in corporate America and was one of our top five mostread reports of the year.We have deepened our research efforts through the McKinsey Institute for Black Economic Mobility,focusing on indepth research to help accelerate Black economic development.In 2023,we expanded our glo
218、bal research further,publishing research on ethnocultural minorities in Europe,progress toward gender parity in Portugal,and the intersectional experience of Black,Bangladeshi,and Pakistani women in the workplace in the United Kingdom.Our insights Women in the Workplace 2023 Read our ninth annual re
219、port on women in corporate America Partnering to drive impact We collaborate with partners to maximize our impact,including,but not limited to:We provide knowledge and capabilitybuilding support to help close the economic and influence gap for Asian Americans and Pacific Islanders.We partner with Th
220、e Amos Bursary to help Britains talented young people of African and Caribbean heritage excel personally,professionally,and academically.We partner with The Female Quotients Equality Lounge at Davos,where we lead critical conversations on driving womens advancement.We are the knowledge partner for a
221、n annual Latinos and Society event with Aspen Institute,where we publish research on advancing economic mobility for Latinos in the United States.Together with LeanIn.Org,we coauthor and publish the annual Women in the Workplace report,the goto benchmark for womens experiences in corporate America.W
222、e joined forces with the New Voices Foundation to enhance the growth of Blackowned brands.We are founding sponsors of the Open For Business coalition,which makes the business case for LGBTQ+inclusion globally.For more than ten years,we have been the knowledge partner of the Womens Forum and its CEO
223、Champions Initiative.We are members of the Partnership for Global LGBTI Equality(PGLE),helping support inclusion around the world for lesbian,gay,bisexual,transgender,and intersexpeople.As members of the Partnering for Racial Justice in Business initiative,we are collaborating to build just workplac
224、es for professionals with underrepresented racial and ethnic identities.2023 ESG Report 30 Read our ninth annual report on women in corporate AmericaDriving positive societal changeOne of our greatest opportunities to advance diversity and inclusion on a global scale is through our significant inves
225、tments in research and insights across wideranging topics,from economic mobility to diversity in the workplace.At the same time,we work to uplift diverse communities through partnerships,supplier diversity programs,pro bono projects,and charitable giving.Developing insights to accelerate actionThrou
226、gh our broad portfolio of diversity and inclusion research,we strive to be a leading voice on the subject.In 2023,our Women in the Workplace report was the largest study on the state of women in corporate America and was one of our top five mostread reports of the year.We have deepened our research
227、efforts through the McKinsey Institute for Black Economic Mobility,focusing on indepth research to help accelerate Black economic development.In 2023,we expanded our global research further,publishing research on ethnocultural minorities in Europe,progress toward gender parity in Portugal,and the in
228、tersectional experience of Black,Bangladeshi,and Pakistani women in the workplace in the United Kingdom.Partnering to drive impactWe collaborate with partners to maximize our impact,including,but not limited to:We provide knowledge and capabilitybuilding support to help close the economic and influe
229、nce gap for Asian Americans and Pacific Islanders.We partner with The Amos Bursary to help Britains talented young people of African and Caribbean heritage excel personally,professionally,and academically.We partner with The Female Quotients Equality Lounge at Davos,where we lead critical conversati
230、ons on driving womens advancement.We are the knowledge partner for an annual Latinos and Society event with Aspen Institute,where we publish research on advancing economic mobility for Latinos in the United States.Together with LeanIn.Org,we coauthor and publish the annual Women in the Workplace rep
231、ort,the goto benchmark for womens experiences in corporate America.We joined forces with the New Voices Foundation to enhance the growth of Blackowned brands.We are founding sponsors of the Open For Business coalition,which makes the business case for LGBTQ+inclusion globally.For more than ten years
232、,we have been the knowledge partner of the Womens Forum and its CEO Champions Initiative.We are members of the Partnership for Global LGBTI Equality(PGLE),helping support inclusion around the world for lesbian,gay,bisexual,transgender,and intersexpeople.As members of the Partnering for Racial Justic
233、e in Business initiative,we are collaborating to build just workplaces for professionals with underrepresented racial and ethnic identities.Our insightsWomen in the Workplace 2023IntroductionSustainabilityResponsible practicesReporting approachInclusive growth302023 ESG ReportIntroductionSustainabil
234、ityInclusive growthResponsible practicesReporting approach A snapshot of our 10 Actions toward racial equity Since 2020,our 10 Actions 24 have helped advance racial equity and our commitment to drive sustainable and inclusive growth.Building on our steady progress to date,we are extending our work g
235、lobally and expanding our focus to include both the Black community and other underrepresented communities.Connected Leaders Academy In 2020,we established a McKinsey Academy virtual leadership program with customized content relevant to Black executives and made it available at no cost to our clien
236、ts.In 2021,the initiative became the Connected Leaders Academy and introduced programs with additional customized content relevant to Asian,Latino,and Hispanic leaders.In 2023,25 we enrolled 29,600 participants,equipping future leaders with the skills,peer networks,and sponsorship tools they need to
237、 grow and achieve their aspirations.Institute for Black Economic Mobility As clients and organizations manage shifts and an uncertain future,our Institute for Black Economic Mobility continues to publish research on building a more inclusive economy.In 2023,we collaborated on 18 insight pieces provi
238、ding indepth research on Black economic development.NEXT 1B In 2023,our Next 1B program led entrepreneurs through Founders,our capability building program that provides business advice for challenges affecting minority owned businesses,relevant for any smallbusiness owner or founder at their earlies
239、t stages of growth.Through the program,the founders gained access to an unrivaled network of successful Black founders,major retailers,and investors.29,600 leaders enrolled in the Connected Leaders Academy 18 insights from the Institute for Black Economic Mobility$27M invested in racial equityfocuse
240、d pro bono engagements in North America“The conversations shared with the facilitators were invaluable!It helped find my voice and use it to be courageous.My life and mindset have been changed because of this program.”Connected Leaders Academy participant 2023 ESG Report Colleagues in our Singapore
241、office.24 10 Actions progress on this page refers to the period from June 2020 to December 2023.25 Total enrollment for 20202022 can be found in our 2022 ESG report.31 IntroductionSustainabilityInclusive growthResponsible practicesReporting approach Developing and caring for our colleagues We aim to
242、 be the gold standard for a distinctive and caring culture that supports and encourages continual,selfauthored growth.Developing our colleagues Our approach By focusing on skillsbased programming that prioritizes apprenticeship,feedback,and onthejob experiences,we offer our colleagues opportunities
243、to grow,both professionally and personally.We leverage a range of analytical toolssuch as weekly Pulse surveys and our annual Mentorship,Apprenticeship,and Sponsorship Surveyto track how we are supporting our colleagues professional and personal development goals and implement timely solutions to me
244、et their needs.Our key actions in 2023 Embedding development in the way we work To deliver continual growth opportunities,we have embedded the elements critical to achieving colleague development into our culture through Way We Work(WWW).WWW is our single operating system for any teamregardless of s
245、ize,location,or missionand ensures that teams practice a set of rituals(for example,team kickoffs,1:1 feedback sessions,team retrospective meetings)that help achieve both distinctive client impact and a great team experience.Our research shows that teams that practice these rituals have higher team
246、feedback scores on development and apprenticeship.Our team leaders,supported by our WWW function,encourage uptake and use of these rituals among colleagues.Empowering growth through skills-based continuous learning We provide opportunities for colleagues in every role to grow,build their skills,and
247、meet performance expectations in a supportive,collaborative environment.We have a comprehensive approach in place to understand,develop,credential,and leverage colleagues skills at every stage of their journey with the firm.We are reimagining our feedback culture to support our colleagues developmen
248、t.Through a modernized skillsbased team feedback system,we enable individual and team ownership of feedback they can leverage for building needed capabilities.We invest in research and innovation through a learning lab to ensure the continuous modernization of our firms learning culture.We have crea
249、ted 2,900 learning offerings and provide access to more from external content providers.$3,200 invested in learning per colleague on average Facilitating self-authored journeys Our skills and impactbased Leadership Growth Plans are an embedded practice,providing colleagues with an evolving set of as
250、pirations,next steps,and support partners that will grow as they grow.We empower colleagues to personalize their jobs and their development in ways that support flexibility and wellbeing,so they may find success through building skills,deepening expertise,and achieving impact.Preparing our colleague
251、s for an AI world Colleagues are upskilled on AI tools to enhance their productivity as individuals and teams.Through learning programs such as our AI Bootcamp,Engineering Excellence,and AI/GenAI leadership programs,colleagues are enabled to both counsel clients on how they can best leverage this cu
252、ttingedge technology and build and deploy it at pace across their organization.We also invest in industryrecognized technical learning and certifications.Learn more about how we equip colleagues to effectively and responsibly leverage generative AI.Prioritizing skills-and impact-based advancement Ou
253、r research indicates that prioritizing performance and development leads to greater organizational outcomes.Our model of professional advancement is based on developmental markers focused around skill proficiency and impact and a demonstrated trajectory in client and people leadership.Our leadership
254、 model is rooted in a universal skill ontology that sets clear expectations,recognizes experience,and gives colleagues in every role opportunities to identify strengths and next steps.At the same time,our technological competency models offer a map for deepening expertise in specific areas.Pairing t
255、he two models,plus learning and applying skills in the course of work,empowers colleagues to build their unique profiles and advance based on development and performance.Assessments and progressions are supported by a range of technological solutions,as appropriate and under the expert oversight of
256、our People function colleagues and evaluators.2023 ESG Report 32 IntroductionSustainabilityInclusive growthResponsible practicesReporting approach Mobility and global expertise We encourage growth and development by providing opportunities for professional experiences across our client practices,fir
257、m functions,and geographies.In 2023,our mobility programs were deeply valued by colleagues with increased demand,positive feedback,and evidence of increased perceived development value.Colleagues overwhelmingly reported that these programs provided a unique opportunity to grow their networks and gai
258、n new perspectives.On our path to developing colleagues into global citizens,we now measure global experience across five dimensions:international work,international client engagements,international cultural plurality,international prefirm experience,and international mobility experience.Through thi
259、s assessment,we recognize and celebrate our global practitioners,provide rolespecific recommendations to further develop relevant skills,and inspire additional opportunities as colleagues continue to grow and advance in our firm.Growing and connecting after McKinsey We are committed to supporting ou
260、r colleagues impact even after they leave our firm and welcoming back alumni who rejoin with new skills and expertise.Our alumni network includes 55,300 former colleagues across 150 countries.Our alumni have founded 80 tech unicorns,and 952 are CEOs or Csuite leaders in leading private,public,and so
261、cial sector organizations globally.Our alumni and colleagues engage and collaborate through our alumni website,career services,and communications,as well as through knowledge and connectivity events.Colleagues in our Tokyo office.2023 ESG Report 33 IntroductionSustainabilityInclusive growthResponsib
262、le practicesReporting approach Caring for our colleagues Our approach We know from our research that people perform at their bestfor our clients,our firm,and one anotherwhen they are healthy and well.Thats why our approach to health and wellbeing is a holistic one,with benefits and programs that sup
263、port four dimensions of healthmental,physical,social,and spiritualin addition to financial wellbeing.Leveraging years worth of satisfaction and attrition data,we understand the personal and professional momentsgenerally big transitionswhen wellbeing is most at risk(for example,family forming,becomin
264、g a manager of people).We have created readily accessible and easily navigable guides for each moment that matters,with applicable benefits,points of contact,networks of colleagues,and best practices,triaging colleagues to the best support structures.We have also supported colleagues in a variety of
265、 ways through humanitarian crises.We check on colleagues wellbeing through the weekly Pulse survey and use the data to both inform the design of new initiatives for the populations that need them most and prompt individual intervention and care as needed.Our key actions in 2023 Championing mental he
266、alth and well-being Our well-being research and work is rooted in the idea that institutions can support a colleagues healthy experience in mind,body,and sense of purpose.Internally,our Mind Matters program provides quality support for colleagues and their families while advancing the conversation a
267、round mental health and wellbeing within our firm.Colleagues and their families can access early intervention and clinical resources,such as free,independent,and confidential support from trained professionals,through an external Employee Assistance Program and several mental health specialty provid
268、ers(for example,pediatric care).In 2023,we offered enhanced services and benefits,including expanded global access,access to coaches,and a catalog of learning opportunities.Our Mind Matters points of contact serve as a safe space for discreet initial discussions on mental health and wellbeing and of
269、fer support finding,navigating,and accessing internal and external resources.In 2023,weintroduced programming to advance and destigmatize mental health conversations across our firm,including multiple training programs,an ongoing colleague storytelling campaign,and a regular external speakers series
270、 that emphasizes personal stories and insights on the importance of holistic wellbeing.In 2023,we also launched new digital HR tools and processes,such as an assisted search pilot in the United States,to make it easier for colleagues to find support where and when they need it.2023 ESG Report Amber,
271、assistant facility security officer,and Adithya,an associate,in our Washington,D.C.,office.34 IntroductionSustainabilityInclusive growthResponsible practicesReporting approach Embedding well-being in the way we work We have embedded McKinsey Health Institutes research on employee well being into our
272、 WWW rituals.The holistic approach to health is an increasingly critical component of consideration for teams in their kickoffs,retrospective sessions,and in biweekly engagement team reporting.We work closely with our team leaders to ensure our colleagues are supported,and that both personal and pro
273、fessional commitments are prioritized.Our ongoing research shows that teams practicing these rituals proactively consider and integrate lifestyle changesa factor we know to be critical to wellbeing as well as client service.Our teams reporting the highest sustainability scores are more likely to rep
274、ort higher client satisfaction scores.We also see a correlation between the team rituals and an individuals sense of connectivity,care,and respect at work.Topics on wellbeing are prominent in our flagship learning programsfrom new hire orientation through partner training programsand promoting and e
275、nabling wellbeing is a core part of our leadership framework for team leaders and partners.Enabling flexibility for individuals We provide our clientservice colleagues with multiple flexible work programs,from parttime schedules to“Take Time,”a flexible work program that provides additional time off
276、 each year.The goal of these programs is to allow colleagues to have the time they need to pursue their passions and priorities outside of work.In addition,we continue to embrace and evolve our approach to hybrid work.For most of our colleagues and teams,hybrid work offers flexibility that supports
277、individual and team wellbeing.We continue to research hybrid work,including encouraging teams to learn what works well in remote versus inperson settings.By leveraging data and input from our teams around the world,we can make better colocation decisions,refine models,and better inform workplace pra
278、ctices and team experiences that work for client,team,and individual needs.Ensuring colleagues safety We believe that colleagues should always feel safe and secure.We proactively seek to safeguard the wellbeing and personal security of colleagues in all the contexts in which they operate.Our Firm Se
279、curity team is staffed by experienced professionals across the world.It partners with colleagues in our offices and functions(Human Resources,Real Estate,Travel,and Technology)to achieve these objectives.Additionally,we leverage leading industry providers to deliver global security and medical suppo
280、rt.Providing competitive compensation and benefits Our compensation and benefits decisions are guided by a total rewards philosophy,which means we provide and communicate competitive pay and valuable benefits that enable us to attract,excite,develop,and retain exceptional talent.Ensuring our total r
281、ewards are equitable is central to our People strategy.Our Compensation Policy Committee governs the design and implementation of compensation,oversees our benefits,and ensures integrity and compliance with tax legislation and local requirements.Prioritizing pay equity We are committed to equal pay
282、for equal work and have processes in place to help ensure pay equity.We are proud to report a 2023 weighted pay ratio of 99 percent,which represents the ratio of female to nonfemale colleagues based on total compensation by colleague grouping and level by country.26 Employment decisions,including co
283、mpensation matters,are based on legitimate business needs,job requirements,and individual qualifications.Each colleague is compensated based on relevant skills,performance in role,and/or geography.Central to our pay equity approach are objective benchmarking and market insights,as well as robust aud
284、it practices.We actively monitor pay equity regulations in all countries where we operate.We used WageIndicator market data to verify that we pay all colleagues a living wage;our lowest compensation ranges are above the applicable minimum wage,including for entrylevel positions.Offering world-class
285、benefits We offer worldclass benefits across our global footprint,ensuring all of our colleagues have access to support services to improve their overall health and wellbeing.Health and wellbeing are at the core of our benefits philosophy,and we deliver comprehensive benefits that support and protec
286、t our colleagues in their personal and professional lives.We provide a full spectrum of personal health and financial wellbeing programming tailored to the diverse and evolving needs of our people,while curating a platform that is sustainable so our people can rely on it.Were always thinking about h
287、ow to evolve our benefits platform to ensure our offerings are competitive and distinctive,as well as easy for our people to access,understand,and use.Our benefits Our holistic benefits package for colleagues and their families includes:27 Physical and mental well-being 2023 ESG Report Medical,denta
288、l,and vision coverage Mental health and wellbeing Navigation and specialized support Business travel emergency protection Financial well-being Retirement programs Life,disability,and accident insurance Taxadvantaged savings accounts Personal financial benefits Educational support Philanthropic match
289、ing gifts Flexible working,family care,and perks Firm holidays,paid time off,and volunteer days Parental and other personal leave policies and support Caregiving support Family planning,including adoption and surrogacy assistance and elective egg preservation Perks 26 This pay ratio was calculated u
290、sing annualized 2023 total compensation of female to nonfemale firm members,weighted based on segments including colleague grouping and level by country,including partners and nonpartners.Segments with a total number of colleagues fewer than ten were excluded.27 Listed benefits offered to McKinsey c
291、olleagues are not exhaustive and may vary by country.35 IntroductionSustainabilityInclusive growthResponsible practicesReporting approach Our giving Advancing economic inclusion in our communities Were helping build an economy that works for all by advancing economic inclusion and closing the empowe
292、rment gap through our pro bono work and charitable giving.Our insights From poverty to empowerment:Raising the bar for sustainable and inclusive growth Learn more about the empowerment gap and what it would take to raise minimum living standards Our approach Were promoting job creation and placement
293、,upskilling,reskilling,and education through our$2 billion commitment to social responsibility efforts by 2030.Leveraging our research on the empowerment gapthe share of the population that falls short of sufficiency and the dollar amount needed to bridge this gapwe refocused our giving and pro bono
294、 programs on driving economic inclusion and closing this gap.In 2023,we supported 3,900 nonprofits and dedicated 342,500 hours to social responsibility.28 The Risk,Audit,and Governance Committee is responsible for overseeing our giving.Regional and local pro bono work is guided by local committees.L
295、earn more about our approach to advancing economic inclusion.$856M contributed in monetary and inkind support since 2020 toward our$2 billion commitment to social responsibility by 2030($206 million this year)Driving efforts to increase economic inclusion In 2023,we doubled down on our commitment to
296、 economic inclusion,conducting and funding efforts around the world,tackling complex problems,and finding creative solutions to advance and accelerate sustainable and inclusive growth.Example McKinsey programs Equipping professionals for the future of work with Forward In 2023,we reached more than 1
297、58,000 new learners through the Forward programa free multiweek online learning journey.Forward is designed to equip individuals at different stages of their careers with practical skills for success in the future of work,whether they are looking to reskill or advance.Digital courses and virtual ses
298、sions are focused on skills that are transferable across industries and roles,such as adaptability,problemsolving,communication,relationshipbuilding,and navigating the digital landscape.Unlocking the full potential of nonprofits with McKinsey.org In 2022,we launched McKinsey.org as a philanthropic i
299、nitiative to bring our firms capabilitybuilding solutions at no cost to nonprofits that are accelerating inclusive growth around the world.By sharing the best of our solutions,McKinsey.org aims to unlock the full potential of nonprofits and offers programs designed to uplift entire organizations.In
300、2023,we reached 19 million beneficiaries through 270 nonprofits that participated in McKinsey.org programs.28 Learn more in our Performance Data.2023 ESG Report 36 IntroductionSustainabilityInclusive growthResponsible practicesReporting approach Example multi-year partnerships Transforming careers t
301、hrough Generation In 2014,we founded Generation,an independent nonprofit organization that transforms and improves access to the educationtoemployment system by preparing people for,placing people into,and supporting people in lifechanging careers.Generation has been recognized as one of the top 100
302、 nonprofits in the world,and we continue to partner with Generation through pro bono service,volunteerism,and charitable gifts.In 2023,approximately 30,000 participants graduated from Generation,a nearly 30 percent increase from 2022.Generation graduates have an 86percent job placement rate and cumu
303、latively have earned more than$1 billion in wages.In partnership with nonprofits,governments,and employers,Generation has helped train and place more than 100,000 people into jobs since its founding.29 Strengthening agricultural transformation through the African Agricultural Transformation Initiati
304、ve This initiative,cofounded by partners including the Bill&Melinda Gates Foundation,the International Fund for Agricultural Development,the Alliance for a Green Revolution in Africa,and our firm,aims to foster inclusive and sustainable agricultural transformation across the African continent.Over t
305、he next few years,the African Agricultural Transformation Initiative(AATI)seeks to establish new,and strengthen existing,national agencies that are designed to support governments with the delivery of their agricultural transformation policies and programs,with the final objective of alleviating pov
306、erty,promoting food security,and strengthening climate resilience.In both Tanzania and Sierra Leone,these national agencies,called Agriculture Transformation Offices,are in the process of being established.Learn more about the AATI partnership.Example projects from 2023 Improving education in Latin
307、America We partnered with Ensea Per to improve reading comprehension in primary schools by improving teacher training and coaching,class curriculums,performance and change management systems,and school district training tools.The lighthouse model proved successful and will be scaled in 2024,with the
308、 ultimate goal of scaling nationwide.Upskilling nonprofit leaders in Australia and New Zealand In 2023,we trained nonprofit leaders in Australia and New Zealand through our Mission Delivery program.Growing the sectors talent is one of the top opportunities to unlock further organizational effectiven
309、ess and social impact.30 Mission Delivery empowers leaders in nonprofit organizations and social enterprises by introducing new tools,fostering meaningful peer connections,and providing participants with space for reflection.Enhancing effectiveness to address urban poverty in Africa We supported Shi
310、ning Hope for Communities (SHOFCO),an organization that advocates for,and provides essential services to,impoverished communities in Kenya.Our Nairobi office worked to improve the financial sustainability of three of SHOFCOs programs,and McKinsey.org spent a year helping build SHOFCOs capabilities t
311、hrough its Ability to Execute program.Read more about the project.19M people upskilled,reskilled,or supported toward economic inclusion through our nonprofit partners and pro bono programs Generation learners in Brazil.29 Data provided in April 2024.Learn more about Generations impact.Of note,websit
312、e metrics are updated regularly to reflect the latest graduate count.30 Learn more in our report,Building from purpose:Unlocking the power of Australias not-for-profit sector.2023 ESG Report 37 IntroductionSustainabilityInclusive growthResponsible practicesReporting approach Closing the opportunity
313、gap in North America In the United States and Canada,we are dedicated to closing the opportunity gap by helping individuals below the empowerment line and in underrepresented communities find jobs,develop skills,and expand their education.Braven is a national nonprofit organization with the mission
314、of empowering first generation and underrepresented students in college by equipping them with the skills,networks,experiences,and confidence to secure strong first jobs.In 2023,we partnered with Braven to begin a multiyear Leap effort that will enable them to significantly scale their offerings to
315、more students across the United States.We collaborated with them on the blueprint of a oneofakind,onestop shop digital platform that will create a simple,engaging,and streamlined experience for students and automate aspects of the Braven program.We are supporting the movement led by OpportunityWork
316、to#TearThePaperCeiling by creating a datadriven employer portal and resources to help employers transition to skillsbased hiring and hire STARs(those“skilled through alternative routes”and without a bachelors degree).The“degree screen”is a barrier to employment for 60percent of American workers.31 W
317、e are working with Bottom Line,a national nonprofit focused on supporting degreeaspiring students from underresourced communities as they get into college,graduate,and start their first career roles.Our multiyear partnership includes strategic planning to help Bottom Line expand into additional citi
318、es and launching other initiatives to reach more students.Safe,affordable housing is an essential precursor to economic mobility.We are helping Bay Area nonprofits such as St.Anthony Foundation connect unhoused communities to work and resources.We also partner with several organizations such as Mile
319、 High United Way to help the city of Denver address homelessness and its affordable housing needs.In Montreal,we worked with Centraide of Greater Montreal to analyze city housing affordability data to better identify and address gaps in availability and affordability.2023 ESG Report The empowerment
320、line is the level at which people can meet their essential needs and realize more of their potential.Our colleagues Amy and Alexander with the Braven team and fellows at our annual Day of Service.31 Learn more about individuals skilled through alternative routes.38 IntroductionSustainabilityInclusiv
321、e growthResponsible practicesReporting approach Responsible practices In this chapter 40 Responsible practices ataglance 41 Our risk and compliance transformation 43 Ethics and compliance 45 Risk management 47 Working with clients 48 Working with suppliers 50 Human rights 52 Data privacy and informa
322、tion security Liz,a partner in Stamford;Phenyo,a junior associate in Johannesburg;Galo,a business analyst in London;and Youssef,an associate in London.2023 ESG Report39 Liz,a partner in Stamford;Phenyo,a junior associate in Johannesburg;Galo,a business analyst in London;and Youssef,an associate in L
323、ondon.Responsible practicesIn this chapter40 Responsible practices ataglance41 Our risk and compliance transformation43 Ethics and compliance45 Risk management47 Working with clients48 Working with suppliers50 Human rights52 Data privacy and information securityIntroductionInclusive growthSustainabi
324、lityResponsible practicesReporting approachResponsible practices392023 ESG ReportIntroductionSustainabilityInclusive growthResponsible practicesReporting approach Responsible practices ataglance Our ambition is to lead with integrity,deliver impact responsibly,and maintain the trust of clients,colle
325、agues,and society.We aim to govern our firm through the highest professional and ethical standards.These are embedded in our daily practices,from the way we select clients and suppliers to how we protect data.Our clients 100%of new clients vetted against our industryleading CITIO client service fram
326、ework Our actions$1B spent on building,enhancing,and operating our risk,legal,and compliance functions since 2018 Our insights 60%of surveyed consumers would be willing to pay more for products when employee safety and no child labor are guaranteed32 “Trust and accountability are integral to driving
327、 holistic impact,living our values,and leading with integrity.”Daniel Trujillo Partner,chief ethics and compliance officer Austin 2023 ESG Report32 Learn more in our report,Enabling socially responsible sourcing throughout the supply chain.40 IntroductionSustainabilityInclusive growthResponsible pra
328、cticesReporting approach Our risk and compliance transformation As part of our commitment to build and continuously enhance a worldclass risk and compliance program,we have made fundamental improvements to the way we operate our firm.Adherence to the highest professional standards is one of the core
329、 values that has always guided our firm and the way we serve clients.As the environment in which our firm and clients operate has grown in complexity,we have taken significant steps to evolve our approach to risk management and compliance.Starting in 2018,we spent nearly$1 billion in people,policies
330、,processes,and technology to build,enhance,and operate a globally integrated risk,ethics,and compliance framework and culture.Our transformed risk and compliance approach enables us to serve our clients in a responsible way while protecting our firm,people,and clients.Examples of how we have enhance
331、d our approach People Investing in talent by hiring professionals with extensive experience,specialized knowledge,and technical skills across risk,legal,ethics,and compliance topics.Setting an unwavering tone about our commitment to ethical behavior through consistent and proactive communication acr
332、oss all levels at the firm,including during new colleague onboarding,our global Values Day,partner meetings,firm events,and compliance training.Fostering our firms culture of integrity by refining our values to include the obligation to engage,pursuit of holistic impact,and maintenance of high stand
333、ards and conditions for client service that go above and beyond legal requirements.Policies Updating,streamlining,and standardizing our global policies and related procedures.Launching a reimagined Code of Conduct.Strengthening our firms client diligence process by enhancing the Client Selection Policy.Adopting a new decisionmaking framework that evaluates every client engagement across a rigorous