2023 ESG Report: Accelerating Sustainable and Inclusive Growth
Introduction
In 2023, McKinsey & Company, led by global managing partner Bob Sternfels, published its Environmental, Social, and Governance (ESG) Report titled "Accelerating Sustainable and Inclusive Growth for All." This report highlights the firm's efforts in fostering sustainable development and inclusive growth amidst global challenges.
Sustainability
- Engagement and Impact: McKinsey engaged with 1,720 sustainability projects for 761 clients across 67 countries, demonstrating its commitment to decarbonization and environmental stewardship.
- Partnerships and Milestones: The firm partnered with Frontier to execute $156 million worth of off-take agreements, aiming to remove over 338,000 tons of CO2 by 2030. McKinsey also drove significant action at COP28, contributing to the establishment of the Oil and Gas Decarbonization Charter, which includes 50 members responsible for 40% of global oil and gas production.
- Internal Carbon Fee: McKinsey implemented an internal carbon fee of $50 per ton on air travel emissions, alongside initiatives to reduce travel and improve efficiency within the organization.
Inclusive Growth
- Economic Contribution: McKinsey's clients contribute 20% of global GDP growth and create one million jobs annually.
- Leap by McKinsey: Since 2019, the Leap initiative has supported the creation of 620 new businesses, many of which have reached unicorn or decacorn status.
- Leadership Development: The Connected Leaders Academy trained 29,600 participants, equipping future leaders with skills necessary for meeting their aspirations.
- Social Responsibility: McKinsey Academy programs reached their one millionth participant, underscoring the firm's commitment to education and skill enhancement.
- Research and Giving: The McKinsey Global Institute focused on the empowerment line, researching progress beyond the poverty line. The firm also upskilled, reskilled, or supported economic inclusion for 19 million individuals through partnerships and pro bono initiatives.
Responsible Practices
- Professional Standards: McKinsey adheres to the highest professional and ethical standards, as evidenced by its reimagined Code of Conduct and new policies for generative AI.
- Risk Management: The firm invests approximately $1 billion in risk, legal, and compliance functions since 2018, ensuring responsible practices.
- Client Selection: All new clients are vetted against the industry-leading CITIO client-service framework, which evaluates potential engagements based on country, institution, topic, individual, and operational considerations.
- Compliance Training: 100% of colleagues complete annual training on policies and are certified compliant with firm standards, reflecting a commitment to integrity and accountability.
About McKinsey
- Mission and Vision: United by a dual mission and a strong set of values, McKinsey aims to create positive, enduring change in the world by helping clients achieve significant performance improvements and building a great firm that attracts exceptional people.
- Global Reach: With 5,100 colleagues across 68 countries, serving 4,100 clients, McKinsey generates $16 billion in revenue.
- Purpose and Commitment: The firm's purpose is to help create positive, enduring change in the world, focusing on sustainable and inclusive growth.
This report showcases McKinsey's comprehensive approach to integrating sustainability, social impact, and governance into its business practices, reflecting a commitment to making a tangible difference in society and the environment.
