KearneySustainabilityReport 2023 PhotobyKevinPeschkeKearney,Chicagoo Ourcommitment2 Regenerate:Afuturethatworksforeveryone8 Ourbusiness15 Ourpeople33 Ourplanet53 Ourcommunity69 Appendix77 Content77 Sustainabilitykeydata78 GHGmethodology81 TaskForceonClimate-relatedFinancial Disclosures(TCFD)84 UNGlobalCompact87 GlobalReportingInitiative(GRI)contentindex89 WorldEconomicForum’sStakeholder CapitalismMetrics93 Assurancestatements97 KearneTyheSutistlteaionfatbhileitpyaRpeeprogrote|s2h0e2r3e1 Ourcommitment Letterfromleadership AtKearney,oursuccessisdrivenbyourpassionforovercomingmajorchallenges.Thisyear,ourworldwasconfrontedwithsomeofitsgravestchallengesinrecentmemory.Fromnaturaldisastersandmarketvolatilitytothedevastatingeffectsofconflictandfamine,thecriseswefacedwereunprecedented intheirscaleandcomplexity.Inthespiritofourfounder,TomKearney,andhisprincipleof“essentialrightness,”webelieveitisKearney’sdutytocountertheseforcesanddrivepositiveimpact. Forus,thismeansembeddingsustainabilityinallthatwedoasabusiness.ItalsomeansvocallysupportinginternationalbestpracticessuchastheUNSustainableDevelopmentGoals,UNGlobalCompact,andCDP,anonprofitenvironmental reportingandriskmanagementorganization.In2023,wesignificantlyadvancedthesecommitments,andengagedourclients,ourpeople,ourplanet,andourcommunitiesaswedidso. Buildingonourstrengthsintransformationandstrategicoperations,wealwaysstrivetomakeourclients’boldsustainabilityambitionsareality.Thisyear,weworkedwithadiversegroupoforganizationsonmorethan300sustainability-relatedengagementsrangingfromdecarbonizationtosustainablesupplychainsandcircularity.WearealsoproudtohaveacquiredSiliconFoundry,aventurecapitaladvisoryfirmcommittedtosustainableinnovation,andTEAMSDesign,aglobalstrategicdesigncompanyfocusedonsustainablesolutions. Ofcourse,wearealsodedicatedtobecominganESGtrailblazerinourownright.Kearneyisthefirstmanagementconsultancyintheworldtohaveitsnear-andlong-termscience-basedemissionsreductiontargetsapprovedbytheScienceBasedTargetsinitiative(SBTi),afterhavingbeenthefirstcarbonneutralconsultancyin2010.Weremaincommittedtoabsolutereductionsofscope1and2GHGemissionsby50percentandscope3emissionsby30percentby2030,andtoachievingnet-zeroGHGemissionsacrossourvaluechainby2050. Givenourdouble-digitannualgrowthtrajectory,thismeansaggressivelyreducingouremissionsperFTEbymorethanhalf—livinguptoourambitiousvisiontoleadinsustainability. Wearedrivingprogresstowardtheseambitioustargetsonseveralfronts.In2024,wewilllaunchanInternalCarbonPricingprogramtargetingairtravel,ourlargestsourceofemissionsasconsultants.Withgreatertransparencyandaccountability,weaimtodrivebehavioralchangeandgreenertravel.Thecollectedfeeswillbeusedtoinvestinhigh-qualitycarboncredits,sustainableaviationfuel(SAF),andothergreeninitiatives.Wealsoareworkingtobecomeplasticfreeandharnessrenewableenergyacrossallourlocationsandoperationsglobally. Wearecommittedtocontinuousimprovementandstrivefortransparencyindemonstratingourcontributionstowardasustainablefuture.WeareproudtohavereceivedaPlatinumratingfromEcoVadis,placingusamongthetop1percentofmorethan100,000companiesevaluatedacrosstheglobe.KearneyalsojoinedtheCDPClimateChangeAListforourleadershipincorporatetransparencyandenvironmentalperformance. Thesuccessoftheseinitiatives—andourbusinessperformance—beginswithourpeople.Ourholisticapproachtopeoplecareanddevelopmentisfocusedonbuildingacollectivesenseofownershipandfosteringaworkplaceculturedrivenbyjoyandjustice.In2023,weintroducedtheenAblediversitynetworkfocusedondisabilityawareness,andtheGlobalInclusionCouncil,whichguidesandamplifiesthefirm’sDEIprogressatthehighestlevels.Wealsoadded40newambassadorsforatotalof170colleaguestrainedgloballyinMentalHealthFirstAid.Dueinlargeparttotheseefforts,wewerenamedoneofAmerica’sGreatestWorkplacesforDiversitybyNewsweekandachievedPlatinumcertificationfromMentalHealthAmerica’s2023BellSealforWorkplaceMentalHealth.Forthe13thyearinarow,wehavealsoreceivedascoreof100fromHumanRightsCampaign’sLGBTQ+CorporateEqualityIndex. WithKearneyoperatinginmorethan50citiesaroundtheglobe,itisimperativewecreateapositiveimpactonoursurroundingcommunities.In2023,weparticipatedinmorethan350socialimpactactivitiesincluding49probonoengagements,accumulatingmorethan830DaysofAction.WeareproudtocollaboratewithleadingorganizationssuchasAshoka,theWorldEconomicForum,andUNWomentodrivepositiveimpacttogether. In2024,wewillcontinuetobuildonourpastexperiencesalongsideourclients,ourpeople,andourcommunities.Whenweallworktogethertowardthiscommonpurpose,wecanclearlyenvisionamoreequitableandsustainablefutureonthehorizon. AlexLiu ManagingPartnerandChairmanoftheBoard,Kearney April2024 Whenweallworktogethertowardthiscommonpurpose,wecanclearlyenvisionamoreequitableandsustainablefutureonthehorizon. Aboutthisreport Kearney’sannualsustainabilityreportpresentsanoverviewofoursustainabilityandsocialimpacteffortsforthe2023calendaryear.Thisreportisourfifthinaseriesofcomprehensiveannualsustainabilityreports—ourKearneySustainabilityReport2022waspublishedinApril2023.