Working toward a sustainable future aglance Headquarters: Gurgaon 8,739 People: 11 Offices: (NCR,...

Working toward a sustainable future EY India Sustainability report 2016

2016 was a challenging year for the global economy, with slower trade and investments. While India has indeed been an outlier, with strong economic growth and the Government’s significant focus on driving economic reforms, the uncertainty and political upheaval across the world, advent of technologies such as robotics, and regulatory changes continue to influence the economic and business environment.

More than ever, businesses need to play their part and make a broad commitment to focus on all their stakeholders — customers, employees and communities. At EY, we are driven by our purpose of Building a better working world, which also defines our approach to sustainability and how we do business. Our work helps in building trust and confidence in the capital markets, enables job creation, and aids in developing talent and driving sustainable growth.

Building trust and confidenceAs a provider of professional services, our efforts are directed at working with the Government as well as advising global corporations and fast-growth entrepreneurial companies on their growth journey. For over a decade, we have been the #1 professional services organization in India.

Currently, regulatory changes, technology and digital disruption are transforming the business landscape and we are working closely with many of our clients to see how they can successfully ride this wave of change.

We are especially proud of the work we are doing with

A note from Chairman India Region

Rajiv MemaniChairman, India RegionChairman, Global Emerging Markets Committee

2 EY India Sustainability report 2016

several Indian states and the Union Government on projects of widespread social and economic impact. These mandates include working on the Government of India’s Universal Immunization Programme (UIP), aimed at reducing infant mortality through effective immunization and vaccination; and Bihar Skill Development Mission, aimed at training more than 10 million youth over five years; and building reliable and quality sanitation services in urban Odisha.

With our EY Entrepreneur Of The Year™ (EOY) program, now in its 18th year in India, we are recognizing entrepreneurs who drive innovation and create jobs.

Developing talent and leadershipWe welcomed 4,500 new colleagues to all our member firms last year, taking our total employee count to about 27,000 people (including our Global Delivery Services Centers in India). We are constantly investing in developing our people through our industry-leading learning and development and mobility opportunities. Our mobility programs include cross-border and cross-service line opportunities across industry segments.

An integral part of our talent agenda is diversity and inclusiveness. Our women talent pool today stands at 33% and we have over 40 women in leadership roles. We continue to accelerate this agenda with our unique programs, policies and career workshops to develop a gender-balanced workforce. Together, these efforts help us build highest performing teams that not only inspire individual and collective success but are also integral to delivering exceptional service to our clients.

Driving sustainable growthOur purpose is a constant reminder to not only support our clients in driving their sustainable growth but also challenge ourselves to work in a more environmentally sustainable manner. Through our Climate Change and Sustainability Services (CCaSS), we assist our clients around the world to adopt a holistic approach toward integrating business goals and sustainability.

Within the EY organization in India, we have introduced several initiatives to reduce our carbon footprint and waste streams across locations. As a part of our pledge to be carbon-neutral by 2020, we have also planted more than 550,000 trees in the last decade.

As a part of our corporate social responsibility (CSR), we have partnered with several non-profit organizations to support in the areas of education of economically underprivileged children and the empowerment of rural women. The EY Foundation was founded in 2004 and has considerably expanded its presence and reach across several Indian states to impact more than 72,000 children and 150,000 women in rural and urban India.

Today, while many of our people are engaged in the CSR activities of the EY Foundation, we also enable them to undertake personal initiatives for community development.

Our view is that society’s needs today are so enormous that it is only with a collaborative approach, be it with the Government, not-for-profit bodies or other foundations, that we will be able to really help drive sustainable growth.

EY India Sustainability report 2016 3

At aglanceHeadquarters:

Gurgaon

8,739People:

11Offices:

(NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Kochi,

Pune, Ahmedabad, Chandigarh and Jamshedpur)

Service lines:Our service offerings:

Assurance, Transaction Advisory Services, Tax and Advisory

Delhi, NCR

Ahmedabad

Mumbai

Bengaluru

Hyderabad

Chennai

Kolkata

Jamshedpur

Pune

Kochi

Chandigarh

Our commitment to our people and workplace has been recognized through various awards. We have been ranked as the no the #1 professional services brand in India for the third time in a row*.

Here is a list of some of the organizations that have recognized our efforts in 2015—16:

• Ranked #3 in Universum’s World’s Most Attractive Employer 2016 rankings

• Ranked #1 in the “Organization with innovative practices” category — World HRD Congress 2016 Awards

• Ranked #1 in the “Dream companies to work for” category — World HRD Congress 2014 Awards

• Ranked among India’s Top 100 best workplaces to work for and among the best in professional services — Great Places to Work (2014 and 2016)

• Ranked #1 “Dream Employer of the Year” as part of the dream companies to work for Awards 2014 — World HRD Congress

• Organization with innovative HR practices for 2013–14 — Global HR Excellence Award

• Best Corporate Social Responsibility Practices in 2013-14 and 2014-15 — Global CSR Excellence and Leadership Award and Lokmat’s Corporate Excellence Award, respectively

• Among the top 5 organizations in India for “The employee network excellence” — D&I award 2016 by Bizdivas

• D&I impact award — World HRD Congress 2015

• Among the top 100 best companies for women in India — AVTAR 2016

*Ranked as the #1 brand in India for three consecutive editions of the biennial Global Brand Survey 2015 (Kantar), 2013 (TNS) and 2011 (TNS)

2016 highlights Awards and recognition

of our people have completed ethics-related

training hours

33.8%

of our people have signed our Code of

Conduct

100%EOY winners in

India since 1999

Over 140

Greenhouse gas emissions

72% Scope 3Business travel

28%Scope 2Office energy consumption

0.54% Scope 1 Direct fuel usage

2,889Number of volunteers

8,816Volunteer hours donated by our people

Communities

Total GHG emissions (in metric tonnes)

42,950


ContentsContents


Creating and Sustaining value ........................................... 08Our purposeOur strategyOur business performanceInstilling professional vales

Our people and our operations .......................................... 14Creating the highest-performing teamsDeveloping and supporting our people through world class learning Implementing strong leadership programsCelebrating and supporting diverse talentProviding competitive compensation benefitsCreating efficient working environment

Our clients ........................................................................ 28Exceptional client service Investing in our servicesApplying an industry focusClimate Change and Sustainability Services (CCaSS)

Our communities .............................................................. 34Supporting entrepreneurshipSupporting our communities Empowering youth for a better tomorrow Driving change through our people Spotlight on environment

How we are organized ....................................................... 46 Global organization structureIndia organization structure

About this report .............................................................. 50Defining the boundary of the reportDetermining report content and materiality Stakeholders and mechanism of engagement

GRI summary table

Data overview

Contacts

Creating andsustaining value1

Our values define who we are and remain the bedrock of our culture. They are the fundamental beliefs of our global organization. They guide our actions and behavior. They influence the way we work with each other — and the way we serve our clients and engage with our communities. Instilling them in everything we do is one of the most important sources of our organizational strength.

We are:

• People who demonstrate integrity, respect and teaming

• People with energy, enthusiasm and the courage to lead

• People who build relationships based on doing the right thing

Our Values



EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services EY member firms deliver globally help build trust and confidence in the capital markets and in economies the world over. Our member firms develop outstanding leaders who team to deliver on the promises made to stakeholders. In doing so, we play a critical role in building a better working world for our clients, our people and communities.

Vision 2020 is our bold plan to become the leading global professional services organization. As an integral part of Vision 2020, our purpose Building a better working world energizes and unifies our people around the world.

Our purposeEY is committed to building a better working world. Through this purpose, we create confidence for stakeholders and the capital markets, supporting our clients to drive sustainable growth the world over. We maintain a strong commitment to our collective values, which guide our actions.

We help our clients to comply with regulatory requirements and find improvements that enable them to forge better working businesses. And better working businesses stimulate investment, create employment and foster greater prosperity within the economies they operate. The work we do with each client has a ripple effect, helping create wider economic and social benefits today and a strong legacy for a better tomorrow.

Across every part of EY, with every client, we dig deeper in pursuit of better working — the relentless search behind our purpose. Because when business, governments and people work better, the world works better.

Our strategyOur strategy, as outlined in Vision 2020, calls for EY member firms to use their collective global advantage while empowering teams to be responsive to local needs. To achieve this, we are improving how our member firms operate and deliver client services. This includes:

• Streamlining the EY operating model to further enhance the organization’s global scale while remaining responsive to local needs

• Supporting the delivery of exceptional client service by EY member firms worldwide to help their clients succeed, strengthen the connection between service quality and market growth, and enhance public trust in capital markets

• Helping develop the highest-performing teams using cross-border and cross-cultural strengths

• Supporting communities through entrepreneurship, developing the future workforce and championing diversity and inclusiveness, particularly the role of women in business


Our business model

Our business performance1. EY India continues its market-leading position and has

been ranked the #1 professional services brand for three successive editions of the Global Brand Survey — 2015, 2013 and 2011.

2. We achieved strong growth in our key focus sectors such as technology, financial services, government and public sector, and life sciences.

3. We continue to be the #1 Tax firm in India and maintain our market leadership in Transfer Pricing and Indirect Tax. We have also built a strong GST team, which includes a Policy Advisory Group comprising experienced professionals and former government officials who advise businesses and governments on diverse policy issues.

4. In Advisory, we have concluded large transformative projects with many Indian and multinational clients and have won several mandates from various Indian states and the Government of Bangladesh in the areas of skills development, education and infrastructure development. We continue to build our specialty solutions such as Financial Services Risk Management (FSRM).

5. We also continued strong performance in our Lead Advisory

practice. At the same time, our transaction support services are becoming more integrated and differentiated with commercial diligence, Operational Transaction Services (OTS) and tax forming an integral part of every diligence. We are also working with some of the largest private equity funds in India on large and complex transactions.

6. In Assurance, we continue to work with our clients to minimize the risk of conducting business, which helps inspire confidence among investors and capital markets. In FY16, we invested in building new solutions in the areas of anti-money laundering and food safety compliance.

Business modelEY has developed a multidisciplinary business model with the integration of services at a global level through a governance that guarantees the quality of our services.

The model provides a picture of how our business functions. EY holds for itself the responsibility of supporting companies to be economically efficient, considering the social, environmental and governance aspects in their processes. The firm has the necessary capabilities to develop innovative practices and processes that allow us to anticipate the key demands of our stakeholders.

Capital inputs Outcomes

01 > IntellectualTechnical knowledge, methodologies and tools

02 > HumanDiverse, purpose-driven people

03 > FinancialPartner equity; third-party debt

04 > Social and relationshipStakeholder relationships

05 > Natural and manufacturedTravel; office energy and supplies; IT

Building trust and confidence in the capitalmarkets through our quality services

Creating leaders who make a difference inbusinesses, government and communities

Advancing inclusive,sustainable growth

Increasing transparencyand knowledge sharing

Managing ourenvironmental footprint

Our purposeEY is committed to building a better

working world. Through this purpose,we create confidence for stakeholders

and the capital markets, supporting our clients to drive sustainable growth the world over.

Strategic processes:Creating the highest performing teams

Asking better questionsDelivering exceptional client service


Instilling professional valuesAs a global organization, we believe that we play a vital role in promoting investor confidence in financial reporting and the world’s capital markets. We recognize the importance of this role and take seriously our commitment to provide high-quality professional services. We also understand that, apart from our people, our reputation is our most important asset. EY’s shared approach, globally consistent policies and practices, independence processes and Code of Conduct strengthen EY India’s ability to set the bar for service quality.

Setting the tone at the topOur senior leadership delivers robust and key messages that demonstrate the highest standard of ethics and professional responsibility.

Our approach to ethics and integrity is embedded in our training programs and internal communication. The senior management regularly reinforces these expectations and the importance of performing quality work and complying with professional standards and internal policies through varied communication channels. Also, we assess the quality of professional service as a key metric to evaluate and reward all professionals.

In a culture that strongly supports collaboration and teamwork, we place strong emphasis on the importance of consultation in dealing with complex or subjective matters. We are committed to delivering quality services that reflect our professional capabilities and are appropriate to the specific issues and needs of the client. We commit ourselves, as professionals, to uphold the trust placed in us by clients and other parties.

We continue to emphasize that no single client is more important than our professional reputation — the reputation of our network of firms and the reputation of each of our professionals.

Code of conductThe organization is committed to building a better working world, and EY’s Global Code of Conduct and Values underpins this purpose. Every day, each one of us could be faced with challenging and difficult choices; yet, it is simply a part of living and working in a demanding, complex and increasingly globalized business environment. In this context, it is the integrity and professionalism that we bring to these challenges that define our reputation as a firm.

While the Global Code of Conduct provides a clear set of standards for our business conduct and presents each one of us with an ethical and behavioral framework, the India Code of Conduct provides further clarity and supplemental guidelines for topics specific to India (some driven by local laws) within the framework defined in the Global Code.

The India Code of Conduct is organized into five categories, in

line with the Global Code of Conduct, as set out below:

• Working with one another

• Working with clients and others

• Acting with professional integrity

• Maintaining our objectivity and independence

• Respecting intellectual capital

The India Code of Conduct provides an ethical framework to guide our day-to-day conduct.

Everyone at EY is required to make a personal commitment to abide by our India Code of Conduct. Our EY Ethics Global Hotline provides our people, clients and others outside of the organization with a confidential means to report activity involving unethical or improper behavior that may be in violation of professional standards or otherwise inconsistent with the India Code of Conduct.

Risk managementThe Risk Management team supports data quality and integrity. We support our professionals through consultation on legal, independence and risk related matters. We also conduct in-person and online trainings to apprise our professionals of the applicable policies and requirements. With a risk control framework in place, enhanced implementation of various firm policies further supports in the identification of any quality issues. We uphold the professional standards and rules applicable to us, and our member firms actively work with the regulators who oversee our professional conduct. Our Risk Management Community Homespace (CHS) is periodically updated to provide the latest information and developments.

IndependenceIndependence means that EY member practices and their professionals should be (in fact/mind) and should appear to be (in appearance) free from interests that might be regarded as being incompatible with objectivity, integrity and impartiality. EY India follows the EYG Independence Policy, which establishes mandatory requirements and prohibitions with respect to the most common independence matters related to EY member practices and their professionals; as well as the more stringent independence rules than those contained in this policy that are required by country regulatory or standard-setting bodies. EY India provides independence training to professionals, including globally deployed independence training. Partners and professionals are required to use the global monitoring system for verifying permitted investments, reporting financial interests and periodic confirmation purposes, as is appropriate to their rank and individual requirements. These entries are subject to random testing every year. Appropriate disciplinary actions based on the global risk management guidance in relation to violations of professional/regulatory rules and area, region and country practice independence policies have been implemented.


and information needed to assess business opportunities and the associated risks. PACE is faster as it allows better integration with other tools and also has mobile access functionality.

The client acceptance process involves careful consideration of the risk characteristics of a prospective client and several due-diligence procedures. In their annual client continuance process, member firms review their service delivery and ability to continue to provide quality service.

Both client acceptance and client continuance decisions depend on, among other things, the absence of any perception that a company’s management puts pressure on the engagement team to accept inappropriate accounting and reporting or uses financial pressures to undermine the quality of work. Considerations and conclusions on the integrity of management are essential to acceptance and continuance decisions.

Confidentiality and data protectionWe respect and value the trust our clients place in us. Our Global Code of Conduct stipulates that all of our employees are to respect and protect the personal and confidential information received from or relating to EY, clients or third parties. Our global data privacy policy addresses the issues raised by modern data management tools and systems. It provides guidance to our employees relating to information security and safeguarding data protection. The Confidentiality global policy sets forth the responsibility of our people for maintaining confidentiality of both our client’s information and any other information deemed to be confidential.

Client acceptance and service deliveryOur client acceptance and continuance policy sets out principles to determine whether to accept a new client or a new engagement, and to continue a relationship with an existing client. These principles are fundamental to maintaining quality and independence, managing risk and meeting regulatory requirements. The objectives of the policy are to:

• Establish a rigorous process for evaluating risk and making decisions to accept or continue clients or engagements

• Meet applicable independence requirements

• Identify and deal appropriately with any conflicts of interest

• Identify and decline clients that pose excessive risk

• Consult with designated professionals to identify additional risk management procedures for specific high-risk factors

• Comply with legal, regulatory and professional requirements

The Global Conflicts Policy gives the framework for dealing with conflicts of interest with respect to the client and engagement acceptance and continuance processes. It defines categories of conflicts of interest as a global standard, as well as a process for identifying them. Process for Acceptance of Clients and Engagements (PACE) is the new internal risk management tool to effectively manage client and engagement acceptance risks across EY. PACE takes users step by step through acceptance and continuance requirements, and connects to the resources


Our people andour operations2


At EY, our mission is to enable people to contribute to our business objectives, and to help achieve their personal and career aspirations. We ensure that we have talented people across the organization who can execute our business strategy. We achieve this by placing the best talent in the right role at the right time, developing our people and providing a career value to them that is not just recognized internally but also externally. We seek to ensure a safe, positive, fair and ethical work environment that promotes a high-performance work culture while enabling individuals to perform at their best.

Sandeep Kohli, National Director, HR, India



EY India’s efforts are directed at attracting people who are entrepreneurial, who have the passion to make a difference, who thrive in international teams and who have a global mindset. We aim at providing an exceptional EY experience to them.

We empower our employees while they are with us to have a sense of purpose and to have the opportunities that add value to their overall career experience. If and when people choose to leave us, we do not see this as an end to the relationship but just the next stage, and maintain a strong relationship. Whether they go on to work with a client or a competitor, start their own business or retire, they will be a welcomed lifelong member of EY India’s alumni network.

Overall gender breakdown

Formal learning hours

Headcount

(Figures are shown at country level)

Our alumni networkOur commitment to attract great people and develop future leaders relies on our ability to provide a rich and inclusive EY experience. The EY India Alumni Network plays a crucial role in helping deliver on this goal.

The alumni network in India started in 2012 and has over 9,000 registered members. Subsequent to the launch of several initiatives including an exclusive website, e-newsletter and reunion events in the first year, the second and third years of the program have helped consolidate and further expand the alumni network.

Connect, a print magazine for alumni at senior levels, was

launched at the alumni reunions in Delhi and Mumbai in 2013. Alumni Connect, a bi-monthly e-newsletter featuring interviews with some of our distinguished alumni, the latest news, reports and job opportunities, continues to be circulated to all registered alumni. Select alumni are invited to webcasts, key events and forums of relevance to them in their current roles. The dedicated secure website also helps the alumni stay connected to EY and to other registered alumni as well.

Creating the highest-performing teamsEY India is proud of EY’s culture of teaming. We know from experience and research that our best-performing teams are made up of highly engaged individuals from a diverse range of backgrounds. These teams excel by being adaptable and flexible without losing focus and by welcoming diverse views. They consistently use best-in-class approaches, tools and methodologies; undertake learning, experience and coaching; and are always focused on delivering the best results, rather than on where, when or how the work gets done.

To support these teams, we are committed to continually providing our people with training that develops their skills, challenging client opportunities, a diverse workplace, flexibility and choice, and a framework to guide their career development.

Our recruitment activities focus on attracting future business leaders — people who have a global mindset and thrive in international teams, and who will drive the success of our business. We want all of our people to feel enthused by their work and their colleagues and to be comfortable in an organization that gives them the flexibility to achieve their professional and personal aspirations. We relentlessly work to engage our people meaningfully through conversations, choices and celebration.

We hear and speak with our people at all times and in countless ways. Our people get the opportunity to interact with leaders of the firm through platforms such as leadership town halls, FOCUS group meetings, speak up forum (a virtual platform to connect with the Regional Managing Partner) and TRIO meetings (careers discussion between counselee, counselor and partner). We also train our counselors to have authentic conversations with their counselees to share feedback on their performance, discuss progress on their development plan and help them achieve their career aspirations.

At EY India, celebrations and having fun are part of our work life. While we work hard throughout the year, we make it a point to find time to celebrate individual and team successes. Be it the success of completing a critical project, a team anniversary,

applauding high utilization numbers or a new win, a celebration is a must. With a focus on diversity, we celebrate all festivals

32.2% 67.7%

54.4 hours

8,739 (Till 30 June 2016)


with pomp and élan, including the pursuit of various sports and extracurricular activities. Also, every year we launch our global awards program Better begins with you. The program celebrates individuals and teams that embody our purpose of Building a better working world in their everyday actions.

We take pride in the fact that many of our alumni become leaders in academia, government, the non-profit sector and the business community. Others play a role in growing and sustaining new organizations. We are very open to welcoming back alumni members. In India, 154 former EY employees rejoined our country’s firm during FY16. We have won numerous awards from around the world that recognize our status as a premier employer. Some highlights include:

• Ranked #3 in Universum’s World’s Most Attractive Employer 2016 rankings

• Ranked #1 in the “Organization with innovative practices” category — World HRD Congress 2016 Awards

• Ranked #1 in the “Dream companies to work for” category — World HRD Congress 2014 Awards

• Ranked among India’s Top 100 best workplaces to work for and among the best in professional services — Great Places to Work (2014 and 2016)

• Ranked #1 “Dream Employer of the Year” as part of the Dream Companies to Work for Awards 2014 — World HRD Congress

• Organization with innovative HR practices for 2013–14 — Global HR Excellence Award

Equivalent level Below 30 % 30-50 % Above 50 % Grand total

Partner 8 66.67% 4 33.33% 12

Executive Director 6 75.00% 2 25.00% 8

Director 3 100.00% 3

Associate Director 36 90.00% 4 10.00% 40

Senior Manager 82 95.35% 4 4.65% 86

Manager 169 82.84% 31 15.20% 4 1.96% 204

Senior Executive 262 54.81% 215 44.98% 1 0.21% 478

Executive 124 15.23% 690 84.77% 814

Staff 36 12.90% 240 86.02% 3 1.08% 279

Intern 69 100.00% 69

Grand total 723 36.28% 1245 62.47% 25 1.25% 1993

• Best Corporate Social Responsibility Practices in 2013-14 and 2014-15 — Global CSR Excellence and Leadership Award and Lokmat’s Corporate Excellence Award, respectively

• Among the top 5 organizations in India for “The employee network excellence” — D&I award 2016 by Bizdivas

• D&I impact award — World HRD Congress 2015

• Among the top 100 best companies for women in India — AVTAR 2016

MobilityWe want to provide our people with ample opportunities to build careers that best complement their respective strengths and interests. Our mobility programs include cross-border and cross-service line opportunities, as well as opportunities to work within different industry segments.

Our global exchange program offers high-performing professionals with assignments that typically last 18 months. For those interested in a shorter assignment, our new horizons program offers high-performing staff and seniors the opportunity to participate in a three-month assignment in another country. For instance, during fiscal year 2016, 30 of our people were on various long- and short-term secondments.

Total employee attrition


Developing and supporting our people through world-class learningHelping EY India’s people to learn, develop and lead is fundamental to creating value for our people and our clients. At a global level, EY has a unique global career development framework called EYU, which focuses on learning, experiences and coaching.

Monitoring and strengthening performanceEYU links to EY’s global Performance Management and Development Process (PMDP). PMDP helps EY people monitor and direct their performance and align their efforts to the global organization’s strategic priorities. One of the most important elements of PMDP is the conversations EY people have with their counselors as they build their careers.

Tailored trainingEY India provides our people with access to high-quality formal learning through a structured organization-wide curriculum that contains technical content. It is accessible in a variety of formats, including:

• Face-to-face: Through case studies, lectures and simulations

• On-the-job training

• Virtual: Through web-based tutorials, videos and webcasts

EY’s web-based global learning management system enables EY people to flexibly organize their learning. They can use it to search for content, to identify where gaps in their learning might exist and to develop a “learning map” to meet future needs.

This year, EY launched World Class, a learning program that enables EY people to receive the same baseline level of high-quality learning across the globe. One global team is now responsible for developing a learning curriculum that is relevant across the entire organization, as well as specific programs for each of the service lines. The program blends classroom, mobile, electronic and social learning.

We believe that career management is an integral aspect of development and have therefore embedded it into our people development strategy. We lay adequate emphasis on developmental feedback through structured feedback interventions such as 360 degree and multi-source feedback. We focus on helping employees discover and develop their talents, manage their careers and enhance their personal growth.

Our holistic development framework EYU not only provides a consistent structure, but also recognizes that everyone is unique. Everyone is assigned a counselor, who helps the counselee determine the appropriate formal learning and experiences needed to achieve their unique career goals. We also have tools to capture and manage continuous feedback, as well as mid-year and annual reviews. We encourage all of our people to request real-time feedback. It not only encourages continual improvement, but also improves mid-year and annual performance reviews that all of our employees receive. In FY16, 100% of our EY India people received a formal performance review.

Organizing milestone eventsThose who are newly promoted to the senior, manager, senior manager or executive director ranks are invited to milestone events. These face-to-face events follow a global format and combine a mixture of learning and celebration. Members of the leadership team, right up to the EY Global Chairman and CEO, play an active role at these events.

Program Location Attended

Global New Partner Program Singapore 33

New Manager/Assistant Director Program

Amsterdam and Dubai

330

New Senior Manager/Associate Director Program

Rome 139

New Director/Associate Director Program

Hyderabad 72

New Senior Program NCR 463

1037

Milestone data event FY’16


Implementing strong leadership programsEY delivers tailored programs to develop our leaders, including:

• Global NextGen: It is a two-year program that gives potential member firm partners the opportunity to respond to a series of challenges that will develop their leadership and entrepreneurial skills. It prepares them for their role as partners in a motivating and structured way and provides transparency around the partner promotion process.

• Global Exchange Program: It provides high-performing seniors and managers the opportunity to go on 18 to 24 month international assignments before returning to share their learning with colleagues.

• New Horizons: It gives high-performing seniors the chance to undertake a three-month period of employment in another country.

In FY16, each client-serving professional in EY India accumulated an average of 54.4 hours of learning.

Formal learning plays a crucial role in development. EY India delivers a rich, focused curriculum for our people, recognizing the different roles they play and the variety of experiences and learning they need throughout their development. And we continue to increase our focus on coaching and experiences alongside formal learning. In India, we have a broad spectrum of 57 soft skill programs and over 679 technical courses available to employees.

Through EY India’s formal learning programs, training activities and other informal learning opportunities, we expose our people to a broad range of sustainability issues. From the EY Global Code of Conduct, and anti-bribery and insider-trading policies, to diversity and inclusiveness training and networks, to the skills development opportunities in local communities, we make sustainability a fundamental component of our people’s careers and their growth, within and beyond EY.

Average formal learning hours by category

Total learning hours by gender, FY16

Below 30 %

Total hours %

Male 293,746 66%

Female 154,385 34%

Total 448,131

Equivalent level Male FemaleTotal hours

Principals, Executive Directors, Directors

5,598 575 6,173

Senior Managers, Assistant Directors, Directors

23,846 4,859 28,705

Managers 30,575 8,199 38,775

Senior Consultants, Assistant Managers, Senior Executives

59,009 19,838 78,847

*Consultants, Associate Consultants, Executives

118,091 77,005 195,097

Analysts/Interns 56,626 43,908 100,534

Total 2,93,746 1,54,385 4,48,131

Learning hours by level, FY16


Celebrating and supporting diverse talentWhen we bring together talented and engaged people to create the highest-performing teams, we are able to deliver exceptional client service. These teams use cross-cultural strength to tackle concerns, they instinctively value diverse perspectives, and they lead inclusively. We have made a strong commitment to diversify our leadership. In particular, we have focused on increasing the number of new female partners.

At EY, diversity is more than just a program. Embedding a sustainable, inclusive culture in the way we work enables our people to achieve their potential and make a difference. We are focused on both diversity and inclusiveness. By diversity, we refer to getting the right mix of demographics in our workforce, including both seen and unseen differences in terms of gender, ethnicity, national cultures, subcultures within countries, sexual orientation, disability, generation etc. By inclusiveness, we refer to the way we make that mix work. It is about creating an environment where all people feel valued, are part of the community and are able to perform at their best. It is also about equality and opportunity and about making sure that differences are celebrated, so that talented people from any background can rise to the top, as well as about guaranteeing that opportunities to develop and advance are available for all from day one.

We have maintained a dedicated focus on attracting women, as well as visibly diverse students and professional hires. We also attempt to reach out to veterans and people with disabilities. We ensure that our commitment to diversity and inclusiveness is embedded in all of our recruiting practices.

In India, diversity and inclusiveness is of great strategic importance to us because it affects our people, our clients and our communities. We build a diverse and inclusive environment through:

• Robust D&I practices across the firm to drive our D&I-related priorities

• Being an equal opportunity employer by recruiting for all job classifications irrespective of race, religion, color, creed, national origin, age and gender

• Gender sensitization to apprise people of unconscious biases and enable them to deal with it appropriately

• Cross-cultural inclusion of people from diverse educational backgrounds, gender, ethnicity, geographies, cultures and physical abilities

We have not experienced any incidents of discrimination, nor have we had to take any action in response to an incident of discrimination.

We also demonstrate our commitment to diversity and inclusiveness by sponsoring and supporting professional networks, including:

EY Women’s India Network (WIN) across all EY offices locations provides a platform to our women to network, build relationships and increase visibility to role models. This network aims to understand the professional and personal needs of our women colleagues and to address them with expert inputs and advice.

Some glimpses of the Women Leadership Program in FY16, conducted for high potential senior women.

Networking with EY women leaders:We also recently launched the EY WIN Learning Hub, in which we share learning modules on the latest trending topics with all our women colleagues on a fortnightly basis.

EY is the one of the core members of Community Business, an organization established as a thought leader on diversity issues. Community Business has been conducting researches and events exploring issues relevant to the region. It has been engaging the corporate sector to create more diverse and inclusive workplaces for employees in Asia. Currently, we are sponsoring its study on diversity in India. Our networks help our people use our differences to produce better results, for ourselves, our clients and EY.

MomEY: Back In Game (BIG) and Break & BeyondMomEY is the support system for our working mothers from pre-maternity to motherhood and beyond endeavors. The MomEY range of offerings — BIG and Break & Beyond – help new moms have the best of both the worlds.

Back In Game: The BIG program focuses on the needs of working mothers and helps ease their comeback into the workplace. The program guarantees working mothers, who take a career break of minimum one year for maternity/child care related reasons, the choice of returning to work at any

time within five years from their leaving the organization. The re-hiring is done in a role similar to the role the employee was handling when she left the organization, without any formal interview process. The program is applicable to all women employees at EY embarking on maternity or deciding to take a work break for childcare.

Break & Beyond: It is a maternity and transition-support program intended to provide support to mothers-to-be and mothers returning to work after a maternity leave. The coaching support will ensure that women feel in control over the choices they make. It will also help new mothers to work through the changes at work and have a smooth transition to work. The program extends the maternity coaching and transition support to mothers at EY at three stages:

• Pre-maternity

• Maternity leave and re-integration

• The return to work stage

To increase the representation of women in the leadership, every year we conduct a detailed review of the performance and potential of women. This helps us identify our women high performers who have the potential to take up the partnership level in the near future. The identified women with leadership potential are assigned “Career Watchers,” who understand the aspiration of the “Career Watchees” and support them in their growth plans. Career Watchers guide, support and help Career Watchees realize their unique potential and prepare them to take greater responsibilities in future.

Setting targets and tracking progress help us focus on increasing D&I in the firm. Reflecting this, the leaders of each geographical area look at the D&I metrics and actively evaluate leadership and partner pipelines and promotion processes for member firms around the world.

More broadly, EY measures how people feel about the work culture through a biennial EY Global People Survey. In the most recent survey, 83% of the respondents felt that EY created an inclusive environment where people with diverse backgrounds and experiences can succeed.



AgeMale Female

Employee breakdown by category for FY16

Associatedirector

Director

Executive director

Manager

Executive

Partner

Senior executive

Senior manager

Staff

Intern

Under 30 30–50 Over 50

0% 11.83%9.47%

0% 15.05%1.64%

0% 1.08%0%

3.58% 2.15%21.54%

55.14% 5.38%12.53%

0%

16.81%

0.18%

20.61%

3.67%

40.86%

5.38%

5.38%

12.90%

0%

6.28%

26.68%

13.43%

8.29%

0%

Gender Age All India head count

32.2%Total female

67.2%Total male

36.9%30-50

1.06%over 50

61.9% Below 30

28165923Males

Females



Providing competitive compensation and benefits:We want our people to receive compensation that is highly competitive with the prevailing employment market circumstances and business conditions. We work hard to drive business results so that we can provide competitive remuneration packages to our people.

We strongly believe that having an equitable and aligned process is just as important as the level of reward to be able to have highly engaged employees. Our rewards strategy provides a strategic framework of common reward elements for all employees, encompassing base pay, variable pay, recognition, benefits, our inclusive work environment, and our performance and development framework. By providing such a range of components, we acknowledge that reward is not just about money; rather, it is about colleagues, career opportunities, the learning experience, the culture and the working environment.

We abide by three guiding principles in our approach to compensation: To be fair, be market competitive and differentially invest in top performers. Our compensation benefits for all full-time employees include:

• Performance-linked variable pay

• Insurance (personal accident and life insurance)

• Leave (earned, medical, maternity, paternity and adoption)

• Transport assistance

• Asset assistance

• Retirals (gratuity, PF and superannuation)

We view ourselves as an equal-opportunity employer, because we recruit and promote all job classifications without regard to race, religion, color, creed, national origin, age, gender, marital status, disability, citizenship or veteran status. We do not discriminate in compensation on the basis of gender or any other factors.

EY India provides attractive employment conditions, which are negotiated individually rather than by collective bargaining. Although there are no formal notice periods specifically for operational changes, employees are informed of them as soon as possible.

Creating a flexible workplace:

We want our people to have balanced, well-rounded lives, because people are at the center of how we deliver our services to our clients. We cannot decide the balance for each individual because everyone has different needs. However, we do aim to create a flexible workplace that supports the needs of our people.

In particular, we continually look to find ways to support and enable individuals to:

• Work independently in an informal capacity

• Remove barriers to virtual teaming

• Adapt safety, health and environmental policies to cover well-being and emergency care

We aspire to build and deliver a workplace of the future through ensuring effective technology, innovative space design, and a more flexible, output-focused culture that empowers our people to achieve their personal best and deliver exceptional client service.

To aid our employees in successfully striking a balance in their personal and professional lives, EY India gives them the option to work flexibly. To further strengthen this commitment, we have in a place My Life — a program that endeavors to support all professionals seeking to meet their personal/work-life integration needs and preferences. It aims at providing them more control over their work and empowers them to work differently. This initiative not only aims at enhancing the morale, job satisfaction and efficiency of employees, but also gives an opportunity to the firm to have greater engagement with employees at all levels.

My Life includes options such as:

1. Flexi-time arrangement

2. Extended maternity benefit — work from home or unpaid leave arrangement

3. Part-time working

4. Telecommuting

We also recognize that it is important to spend time with any new member of the family, and therefore we provide our people with options of:

a. Adoption leave

b. Paternity leave

c. Day care center

Also keeping in mind the inclusiveness agenda and our priority of building the workplace of the future, our office structures are barrier-free and give convenient access to people to address their needs and enable them to effectively collaborate and deliver.

3,100+As per GPS results,have opted for flexible arrangements.


Seamlessly connecting our peopleProviding our people with flexible work practices requires us to support them with the right technology — and the Messaging and Collaboration program is doing just that. By accessing new and exciting technological capabilities, our people can connect with each other more easily than ever before. For example, videoconferencing is possible from individuals’ laptops or mobile devices with just a few clicks of a button, and cloud technology will support enhanced and instant access to global information, networks and knowledge. This means our people will have increasing flexibility around where and how they work and a greater ability to adapt their working patterns to meet their client and personal commitments.

Supporting health and well-beingWe often organize health awareness sessions to enhance the awareness of our professionals about illnesses and therefore effectively manage their lifestyles. We have organized sessions on stress management for our women colleagues to provide simple and effective ways to minimize stress. Various other sessions that are organized are parenting workshops and workshops on grooming mind and body wellness. We have also organized health awareness sessions on cervical cancer and health check-up.

Supporting working familiesDay care centers: Many of our employees are young parents. We understand the concerns of being a new mother/father and support our employees in this phase of adding a new member to their families. Our free-of-charge day care centers are located within our office premises and provide employees with the choice of bringing their newborns to work. In the absence of a family member at home, employees can rest assured that their little ones will be well taken care of at the day care center. We also have full-time trained domestic helps to supervise and take care of the facility. We have recently renovated one of the day care centers to make it larger to accommodate more children. We have such day care centers at our Gurgaon and Mumbai offices. We are planning to shortly launch such facilities at other locations as well. Our day care facility has featured in Economic Times (2012), Bloomberg Business Week (2011) and the Workplace Excellence Series on CNBC (2016).

Safety

Our efforts are directed to maintain a safe and healthy working environment for all our employees and to prevent harassment, intimidation or humiliation of any kind at the workplace. We have a “policy for prevention and prosecution of acts of sexual harassment at workplace.” We conduct regular awareness sessions to help employees better understand the policy’s salient features. We also conduct theater style gender-sensitization sessions to create awareness in a fun way.

Wherever our people are located — at our offices or at a client site — their safety is our priority. Our dedicated team oversees our rigorous and clear policies, which have been developed to protect our people and assets against reasonably foreseeable threats that might result in injury, loss, damage or impairment.

Average parental leave days by gender

Parental leaveMaternity leave

Extra maternity leave

Extended maternity leave

Female 54.5 16.92 43.2

Parental leave Paternity leave Extra paternity leave

Male 4.8 5

At EY, the AWS vision is to ‘build smart and efficient workspaces’, which is aligned to EY’s Vision 2020, thereby making a difference to our organization, clients and wider communities. Our team is supporting an array of successful initiatives across EY locations aligned to EY’s strategy pillars of creating smart and efficient workspaces.

“We have made great strides toward improving the quality of services, implementing best practices, advancing in technology, piloting greener initiatives and enhancing sustainability environment, resulting in innovative programs aimed at shaping a cleaner, greener and sustainable environment for people working in EY and thereby building a better working world. The focus on ‘reduce and refine’ is one I’ve tried to pursue. I truly believe that by making things less complex, by finding innovative ways to make sustainability affordable, we can advance the nation and bring the desired change and impact environment positively. Under this principle, AWS has launched several initiatives on energy conservation, waste mitigation, employee wellness etc.

“Together, we will accelerate this truly transformative journey and build a sustainable future for EY.”

EY recognized as the Best Eco Friendly Corporate by India Eye International Human Rights Observer (NGO) for taking environment-friendly initiatives for a cleaner and greener environment.

Initiatives acknowledged by IHRO: Installing a solar energy system, rain harvesting, reducing food wastage, eliminating the use of plastics, recycling used water and undertaking various community initiatives to save the environment.

1.

2.



Safety and security

Visitor management system (VMS)We use digital cloud-based technology for visitor management at all EY locations. It is a paperless transaction solution to capture visitor details.

Transport services - Carpooling applicationWe have an exclusive carpooling app for EY employees to enable them to share their personal vehicles with other colleagues coming from their adjoining areas. They are given exclusive car parking in EY premises. This provides an opportunity for knowledge sharing with the EY community and optimizing the use of parking spaces. This initiative has received a positive response in Delhi/NCR and Mumbai and over 500 employees are enjoying the benefits of carpooling.

Travel services - Self-booking tool (SBT)This new-generation tool helps in reducing the overall spend on air travel, empowering EY employees to plan their air travel by themselves.

Business continuity, safety and securityEverbridge Mass Notification System enhances the safety and security of our people.

EY is growing at an unprecedented rate in response to Vision 2020. In support of this, AWS is piloting initiatives to enhance existing internal security and life safety business protocols, and ensure the safety and security of our people.

The recent launch of Everbridge is an initiative to better prepare the firm to contact any or all employees in the event of an emergency or a disaster. We recently conducted a test of

the Everbridge tool and the response to this system has been noteworthy: More than 96% employees have updated their contact details in the Employee Self Service portal in order to receive Everbridge communications.

The impressive response to the test is a crucial milestone in our Business Continuity Plan and a significant step in ensuring the safety and security our employees.

Launch of Security Emergency ServicesAs an integral part of our safety, security and emergency preparedness framework, the AWS team has introduced Security Emergency Services Numbers in India to be contacted in case of an emergency.

*Emergency situations covered include medical exigencies, emergency evacuation, personal threats, accidents and strikes.

Physical assetsEnterprise Reservation System (ERS)In accordance with the workspace of the future (WOTF) guidelines, our office premises are being enabled with an enterprise-level workspace and room booking technology called ERS. Employees can now book meeting rooms through ERS and explore the features this new system has to offer.

Some salient features of ERS are as follows:

• Not restricted to a closed space; employees can even book workspaces through the system

• 24X7 meeting room booking capabilities with enhanced features and facilities

• Online system, requiring employees to check-in to reserve their meeting room/workspace

We are focused on creating value for EY and enhancing the quality of the services to our customers and clients with better, simpler more globally consistent ways of working. We have state-of-the-art IT infrastructure and are constantly striving to automate IT processes for the convenience of our people. In order to increase the efficiency and minimize the wastage of paper, the IT team has implemented best printing and scanning solutions, well aligned with our ‘Go Green’ initiative.

Rajeev Seoni, Chief Information Officer, EY India.


Supplier managementAs a professional services organization, EY India purchases goods and services that enable our people to perform their work and deliver quality services to client. In addition to requiring compliance with independence rules and the rules of doing business in a responsible way, the EY India Procurement Policy also requires the evaluation of the impact of procurement decisions and encourages suppliers to support our sustainability initiatives.

We adhere to the Supplier Code of Conduct as part of the Global Procurement Policy as a standard practice for all sourcing.

The purchasing decisions are driven primarily by the following parameters:

• Supplier selection process through a standard questionnaire

• Adherence to our Global code of Conduct and standard terms and conditions

• Fulfilment of legal and regulatory compliances such as registration with government authorities

• Fulfilment of scope/specifications

• Pricing

• Capability to serve multi-location office centers


Ourclients3


Fundamental to building a better working world is our commitment to promoting increased trust and confidence in business, sustainable growth, within and beyond EY, development of talent in all its forms and greater collaboration.

An important way we do this is through our services, which help build trust and confidence in the capital markets. We recognize the importance of this role and take seriously our commitment to executing high-quality professional services.



Exceptional client serviceIn a world that is more complex and dynamic than ever before, clients expect to be served by the right team of professionals, regardless of service line or geography. It is not enough to be technically excellent — our clients want professional service providers who are connected to their business, responsive to their needs and insightful about their sector and the challenges they face.

To deliver on this, our people are united around the concept of exceptional client service, which is about EY professionals being the most connected, responsive and insightful in the marketplace.

• Connected means bringing the right people in the right locations, to build trust and enrich client relationships

• Responsive means the desire and commitment of every person in EY to be proactive, visible and timely

• Insightful means using EY experiences and a point of view tailored to the client situation to advance their thinking

Exceptional client service is a fundamental part of how we operate, both strategically and tactically.

To support exceptional client service, we are:

• Embedding exceptional client service attributes into how we measure quality

• Revising training programs and performance evaluations to incorporate exceptional client service as a minimum baseline expectation for our people

• Defining exceptional client services as one of the six critical metrics for managing our business

Investing in our servicesAt EY, we are committed to delivering exceptional client service across our four service lines – Assurance, Tax, Advisory and Transaction Advisory Services. We want our clients to benefit from a highly integrated global structure. This means eliminating silos and bringing the best of what our organization has to offer to clients through borderless teaming across service lines, industries and geographies.

The strength of our global reach is balanced with deep local knowledge. Our market segment model groups together local accounts, allowing our people to set account investments and market priorities locally, while still maintaining global consistency in terms of metrics and enablement. The model allows account teams to offer more relevant, tailored services to clients, particularly those who may not be global in scope, such as middle-market clients.

The global business environment is being reshaped by transformational developments on the regulatory front that have practical implications for both the financial and reporting environment. This has led to significant challenges on the reporting and governance front for management, boards, audit committees and auditors. We help our clients understand and address these challenges through a wide portfolio of solutions in financial accounting advisory services and fraud investigation and dispute services. The assurance practice offers multidisciplinary insights across geographies to help clients minimize the risk of conducting business in multiple cultures and jurisdictions, which helps inspire confidence among investors and capital markets.

EY’s 2,800 Tax professionals in India provide you with deep technical knowledge, both globally and locally, combined with practical, commercial and industry experience. We draw on our global insight and perspectives to build proactive, truly integrated direct and indirect tax strategies that help you recognize the opportunity in business change and build sustainable growth, in India and wherever else you are in the world.We draw on extensive accounting and compliance experience and tried-and-tested methodologies that allow you to manage your direct and indirect tax compliance and reporting obligations effectively. We help you assess, improve and monitor your tax function’s processes, controls and risk management and maintain effective relationships with the tax authorities.Our technical networks across the globe can work with you to reduce inefficiencies, mitigate risk and improve opportunity. Our 45,000 tax professionals, in more than 150 countries, are committed to giving you the quality, consistency and customization you need to support your tax function.

Our talented people, consistent methodologies and unwavering commitment to quality service help you build the strong compliance and reporting foundations and sustainable tax strategies that help your business succeed.

Assurance

Tax

EY in India ranked as a tier-one tax firm for the 14th consecutive year — Euromoney ITR, World Tax Guide

2016


EY’s 4,500+ Advisory professionals help to drive business performance, manage risk and sustain improvement through our broad industry experience and sector-focused approach. We work with large enterprises and government institutions on their most pressing management and operational challenges. As a market-leading global transformation advisor, we help turn strategy into reality. We believe in one business, one Advisory practice and operate as a single business across all geographical areas. Our global integration facilitates decision-making and speed of execution with highly experienced people. We attract and retain top talent across industries and are structured to mobilize our people quickly. We have a single modular methodology — wherever we work, we deliver consistently. Our services revolve around performance improvement, financial transformation, customer management, supply chain and operations, people and organization, IT advisory services, risk advisory, climate change and sustainability services, internal audit (IA) and risk transformation.

With over 650 transactions professionals as part of the TAS practice in India, we offer a full range of integrated services such as M&A Advisory, Transaction Support, Valuation and Business Modelling, Debt and Restructuring, and Capital Markets/Private Investments.Our differentiation lies in industry and sector-focused teams, and assisting clients in strategically managing capital and transactions in a constantly evolving world, with a specialized focus on their sector. The EY India TAS practice has the largest investment banking team in India, comprising of highly experienced professionals in sell-side, buy-side and fund-raising activities.

Advisory

TAS

We lead the market with our Advisory services

Awards and recognition

#1

#1

#1

#1

global brand for sustainability service — Verdantix in 2013

EY won the Make in India Excellence Awards, 2015, in the Best Professional Services category

Ranked as the #1 brand for Transaction Advisory Services in India for two consecutive editions of the biennial TNS Global Brand Survey (2013 and 2011)

Ranked as the #1 Financial Advisor in 2015 M&A League Tables, for deal count across databases

• For 14 consecutive years by Bloomberg (2002–15)

• For 10 consecutive years by Thomson Reuters and Mergermarket (2006–15)

Ranked as the #1 Accountant Advisor for 2015, 2014 and 2013 by Mergermarket


Applying an industry focus

Industry focusEY India has access to 16 dedicated global sector centers around the world, which serve as networks for sharing industry-focused knowledge. EY’s commitment of time and resources means that its member firms can anticipate market trends, identify implications and develop clear points of view on relevant industry issues.

Automotive

Retail and wholesale

Education

Life sciences

Media and entertainment

Government and public sector

Financial services

Consumer products

Mining and metals

Oil and gas

Real estate, hospitality and construction

Real estate, hospitality and leisure

Infrastructure and construction

Technology

Telecommunications

Power and utilities


Climate Change and Sustainability Services (CCaSS)With growing emphasis of action on environment and social issues, there is a need for businesses to better comprehend the threats and opportunities posed by climate change. We believe the best way to contribute toward mitigating the effects of climate change is to collaborate and partner with our clients in progressing toward a low-carbon economy and more sustainable future. Through our CCaSS, we assist our clients around the world to adopt a holistic approach toward integrating business goals and sustainability. At the same time, we are challenging ourselves to work in a more environmentally sustainable manner to find better ways to reduce our carbon footprint and waste streams.

• Strategizing a roadmap for a sustainable future: Our Cleantech and CCaSS professionals help governments and organizations around the world navigate their way through the environmental, social and economic impacts of climate change. We also help our clients to map and develop their sustainability journeys and handhold them to integrate the concept of sustainability in their long-term business strategies, thereby fostering opportunities for inclusive growth. We help our clients by providing a range of skills and services, such as:

• Assisting clients understand their stakeholder’s interests and the need for credible communication on sustainability strategy and performance; supporting clients with the delivery of sustainability reports that meet stakeholder and business needs.

• Advising clients on conducting diagnostic studies and laying out sustainability strategies and growth plans in the respective areas, aligned with business goals.

• Assisting clients in reducing their carbon footprint by optimizing their energy profile to help them achieve their energy-use targets and explore green alternatives in an environmentally responsible manner.

• Advising national, state and municipal bodies of the government (through bi- and multi-lateral development partners) in developing countries such as India, Bangladesh, Bhutan, Nepal and Indonesia to help them carry out policy and institutional reforms around climate change mitigation and adaptation, including promotion of renewable energy, transfer of green technology and cleaner production techniques, and mobilization of climate finance and energy efficiency.

• Assisting clients in achieving a climate-resilient low carbon growth through the application of economic modeling techniques and sophisticated statistical tools.

• Supporting our clients to develop and improve the environment, health and safety frameworks, keeping in

mind increasing requirements pertaining to compliance and conservation of resources.

• Assisting clients to identify and decipher the advantages of evolving around the circular economy concept; providing services to our clients related to water and waste management.

• Partnering for a better future: As a leading provider of sustainability services, we continue to contribute to the sustainability debate and share knowledge with our clients and the broader business community. It is through these debates that we can positively influence change, working closely with key regulatory bodies and industry standard setters. For example:

• Our CCaSS group organized and hosted the fourth Global Sustainability Summit, which brought together business leaders and representatives from governments, civil society and media to determine what has to be done to drive truly transformational change; change that is good for society, communities, business and the economy.

• EY CCaSS recently collaborated with the UN Global Compact on the study in an effort to better understand how companies are managing their supply chains in ways that support the objectives of the United Nations 2030 Agenda and Sustainable Development Goals (SDGs). The UN Global Compact is the world’s largest sustainability initiative and EY has been a participant since 2009.

• EY’s Global Cleantech Center comprises Assurance, Tax, Transaction and Advisory services professionals from across the world who understand the business dynamics of Cleantech and help clients innovate in technology, business models, financing mechanisms, cross-sector partnerships and corporate adoption.

• EY is among a select group of organizations supporting the International Integrated Reporting Council (IIRC). In addition to our Chairman and CEO, Mark Weinberger, sitting on the IIRC Council, EY secondees serve or have served as the IIRC’s Deputy CEO and Regional Lead for Japan, and EY has contributed significantly to the development of the <IR> framework and background papers. EY is also represented on the IIRC’s Technology Initiative and provides subject matter advice to the IIRC’s other networks

• EY contributes to technical sustainability working groups aimed at standardizing definitions and approaches, such as the Global Reporting Initiative (GRI). EY India is the GRI’s data partner in India. EY India conducts secondary research and data collection on GRI reports being released, updating GRI reports on GRI database and analysis of reporting trends etc.


Ourcommunities4


We are committed to fostering sustainable growth in areas where we can have the greatest impact. We believe the most significant impact we can have on society is by supporting economic stability and growth, addressing some of the major issues that the world is facing.

*GHG: Greenhouse gas

*Scope is explained below in the section Measuring our carbon footprint

2016 highlights

EOY: Over 140 (Winners in India since 1999)

Number of volunteers: 2,889

Volunteer hours: 8,816

42,950Total GHG emissions

(in metric tonnes)

72% Scope 3Business travel

28%Scope 2Office energy consumption

0.54% Scope 1 Direct fuel usage



At the heart of our purpose of Building a better working world is the belief in enlightened self-interest: That EY is successful because our member firms collectively contribute to society and shared value. For more than 15 years, EY has been a strategic collaborator of the World Economic Forum (WEF). This platform provides us the opportunity to share our insights with the world’s most influential business leaders, politicians and academics and help shape future economic development.

EOYAs the first and only truly global award of its kind, this EY program celebrates those who are building and leading successful, growing and dynamic businesses. It recognizes them through regional and national awards programs in over 150 cities in more than 60 countries. Each nation’s winner then competes for the title of EY World Entrepreneur Of The Year™.

The program’s continued expansion to new cities and countries demonstrates the importance of entrepreneurship around the world. According to the EY Global Center for Entrepreneurship and Innovation’s annual survey for 2015, entrepreneurs are leading job creation globally, with 47% of entrepreneurs expecting to increase their total global workforce this year.

77% of EOY winners from more than 60 countries expect to increase their total global workforce in 2015 (up one percentage point from 2014).

The EOY India program has been shining the spotlight on the influence of entrepreneurial passion on success. The EOY awards program is widely recognized as the only global business award with a rich legacy of honoring the men and women who are building market-leading enterprises that impact the way we live, work and play, and building a better world for us. Over 140 entrepreneurs have been recognized as a part of this very distinctive program since its launch in India 18 years ago. Our winners are some of the most influential

and recognizable names in global and Indian business, namely, N.R. Narayana Murthy, Sunil Bharti Mittal, Kumar Mangalam Birla, Anand. Mahindra, Mukesh Ambani, Anil Agarwal, Dilip Shanghvi, Rahul Bhatia, Adi Godrej, Uday Kotak, Cyrus S Poonawalla, and Vinita and Nilesh Gupta to name a few.

The EOY Awards Gala brings together India’s foremost business leaders to honor program finalists and winners. The jury panel for the awards program, over its previous editions, has featured business luminaries including Kumar Mangalam Birla (Aditya Birla Group), R.C. Bhargava (Maruti Suzuki), Harsh Mariwala (Marico), S. Ramadorai (TCS), G.V. Prasad (Dr. Reddy’s Laboratories), Sanjay Nayar (KKR India), Shikha Sharma (Axis Bank), Dr. Rajiv B. Lall (IDFC), Ishaat Hussain (Tata Sons), A. Vellayan (Murugappa Group), Arundhati Bhattacharya (State Bank of India) and Kalpana Morparia (J P Morgan).

Supporting entrepreneurship Entrepreneurs drive innovation, imagine new business models, develop new products and services, and create jobs and wealth for their communities. This results in broader economic growth and other social benefits in the marketplace. It is for this reason that we want to help entrepreneurs — big or small — achieve their potential.

The EOY program recognizes individuals who have successfully transformed their ideas and vision into sustainable businesses. By enabling entrepreneurs, we are delivering on our purpose of building a better working world.

Farokh Balsara, Partner and EOY India Program Leader


Established in December 2004, EYF is a not-for- profit organization engaged in community-oriented initiatives. EYF is committed to making lasting transformations in the communities it belongs to and serves. In addition to projects directly undertaken by EY, significant contributions are also routed to large grassroots-level organizations. Not only are these initiatives aimed at helping these organizations to expand their coverage, but we also work back with them to further improve their existing model.

The EY Foundation (EYF) Empowering entrepreneursWe invest in entrepreneurs, particularly women, who can help restore and create economic and social wellbeing. This is done primarily through organizing women into self-help groups (SHGs), helping create bank linkages and then facilitating inter lending to promote income-generating activities on an entrepreneurial basis. Similarly, we also invest in educating farmers on agricultural best practices, which in turn helps improve agricultural yield productivity.

The initiatives of EYF principally revolve around education, entrepreneurship and environment, though EY does step in to assist in case of natural disasters in India.

2000 Our CSR initiatives span close to villages across

the country

1,900150,000

EYF supports empowerment of rural families across more than villages and reaching out to

women.

Spotlight on communities

As there was no ration shop in our village, we had to travel to other villages by walking long distances. To solve this problem, Srinivasan Services Trust (SST) mobilized women and formed SHGs and helped the women in starting a ration shop in the village.

This proved to be very beneficial as women saved their daily wage and got access to good quality food grain. Above all, the women managing this shop started earning and became financially independent.

Madhuri HarkeSelf Help Groups I Village Pondevadi, Maharashtra


Empowering youth for a better tomorrowTwo years back, 23-year-old Nandadulal Mishra was without a job and dependent on his family’s income. Today, he is a changed man — an aspiring youth, dedicated and committed to his job with ACC Cement.

Like Nandadulal, EY is skilling the youth in rural villages in partnership with Dr. Reddy’s Foundation. Started in December 2014 in West Bengal, the Skilling Rural Youth (SRY) program has trained 755 people, with 515 of them placed in sectors such as hospitality.

SRY is a 10-day training program that aims at equipping the youth with industrial exposure and placing them in the industry. Imparting soft skills, counselling, motivating, ensuring work readiness and providing practical knowledge are some of the vital ingredients of the training.

Post the training, I had work offers from two companies and I chose ACC Cement. The 10-day training with guest lectures and industrial exposure made the difference. The program is a boon for young people like me in villages.

In a rural economy, there is high dependence on farm-based livelihoods but small holdings, erratic rainfall, and lack of access to quality inputs, knowledge and capital have made this source vulnerable. Continued division of land due to multiple male members means that the land holdings after division are increasingly becoming unviable as a source of steady livelihood. “The main objective of SRY is to motivate at least one youth member (18–30 years) from a family and equip them with the required competency and skills to take up a non-farm based job in nearby locations. The extra INR50,000–INR60,000 a year steady source of income has seen a significant value in many rural families.

Nandadulal

Dibyendu Chakraborti, Project Facilitator, SRY.

Supporting educationWe are focused on improving the quality of education that helps attract and retain children at school. We are working with existing government initiatives to improve access, content and delivery of education. Apart from sharing their knowledge, our people also mentor young students with a view to improve their skills and help them stay focused on their educational goals.

Toon Masti: Making learning joyful for childrenEYF has developed Toon Masti, innovative animated educational content covering all the concepts in mathematics and environmental sciences for classes 1 to 5. Toon Masti leverages the power of cartoons and audio-visual aids to make


Kirubakaran wanted to excel in his studies. But his father, a lorry driver and a drunkard, physically abused his mother and threw away his books on several occasions. In such an atmosphere, he found it very difficult to concentrate. Moreover, it was extremely hard for his mother to pay for the school fees. However, due to the scholarship from EY Foundation, his life has changed in the last three years. Today, he scores more than 90% marks in almost all subjects.

Monideepa comes from a lower-middle class family. She believes that a student not only needs financial support but mental strength is much more important to encourage students to continue their studies irrespective of their environment. According to her, the counselling programs played an important part in helping her discover her true potential to pursue her career efficiently.

learning a joy for children. The animated content is imparted free of cost and has been developed as a low-cost model to enhance enrollment, attendance and greater comprehension of the subjects.

EYF has provided Toon Masti content to more than 40,000 government schools across New Delhi, Haryana, Chhattisgarh and Tamil Nadu with a potential to benefit 5 million children. Additionally, the content has been shared with different NGOs and corporate foundations.

Student scholarship programOver 2,500 students from government schools have been benefited by the scholarship program till date. Students are selected on a merit-cum-means basis and are mostly from vernacular medium schools. About 60% of the students are girls and 16% are from the SC/ST communities. EY extends its support for a period of five to six years, based on the course each student has opted for. Students are offered English language and soft skills training as well as career guidance during this period. We also plan to help with job placements in the near future. Additionally, this program supports children of the contract staff at EY.

Driven to succeed Realizing her true potential

Kirubakaran G, Chennai

Monideepa Adhikary, Kolkata


Project VidyaEYF funds Project Vidya, being implemented by Development Initiatives in Kanker, Chhattisgarh. The project aims at empowering villages to take ownership of the responsibility to ensure quality learning in the villages and, if required, contribute to support “remedial learning” centers. Currently, the program impacts 15,000 students across 150 schools. Of these students, 60% are from ST category.

innovative and easily comprehensible teaching methods, Smart Class aims to make sure that 80% of children taking part in the program can perform basic math operations and can speak and write 500 new words in English within a year of its implementation.

Driving change through our peopleSnapshot of our volunteering initiatives (2016) • Blood donation drive: 948 units donated

• Sponsor a child’s education: 105 employees supporting 456 students (April 2015–March 2016)

• My NGO program: 158 employees supporting 70 NGOs (April 2015–March 2016)

• Payroll giving program: More than 1600 employees contributed more than INR105 lakh (April 2015–March 2016)

• More than 300 EY people across the country have volunteered for mentoring EYF student scholarship students

• 450+ employees participated and raised funds during marathons

Volunteering is an important part of our culture, and goes beyond simply providing an extra pair of hands. Our people provide their professional skills and capabilities by serving on not-for-profit boards, supporting schools, mentoring students, assisting high-impact entrepreneurs and striving to reduce our environmental footprint. We call it skills-based volunteering, and it gives our people additional experience in project management, teamwork and leadership.

Community engagement is even embedded into our learning and development framework as a key professional development experience, and is covered in most of our major milestone events.

Our EY CSR club gives our people a platform to come together and participate in CSR initiatives in their location, beyond

Supporting admission in private schools under the 25% Right to Education (RTE) quotaEY has partnered with Indus Action (IA), an NGO that aims to bring a systemic change to the Indian education system, to facilitate the admission of underprivileged children in private schools.

Under the Right to Education (RTE) Act, 2005, it is mandatory for unaided, non-minority private schools to reserve at least 25% of seats in nursery, KG and class 1 for children belonging to disadvantaged and economically weaker sections (EWS).

EY will support Indus Action in promoting awareness about the RTE Act among EWS parents, assisting in their admission and enabling their social integration in schools. About 50,000 children will be enrolled in private schools over the next three years under this initiative.

Smart Class programEYF has initiated support to Sampark Foundation for its Smart Class program in Chhattisgarh. The grant is expected to support Sampark to implement this program across five districts — Balod, Dhamtari, Kanker, Kondagaon and Bastar — covering around 6,105 schools and impacting about 3.95 lakh children. By replacing ineffective role-based learning with fun,

Today, every village has their own educational plan in place. Each village has an education committee and an exclusive village education fund. Together with EYF, we aspire to make the program more inclusive in nature so that every child, whether rich or poor, can get access to education till the 12th standard. EYF has helped us in strategizing and compelled us to think in the light of sustainability

Sushanta Kumar Bhuyan Trustee/Development Initiative


Voluntary blood donation campsVoluntary blood donation camps across EY offices are also open to employees of other organizations in the same premises. Apart from the regular drives, EY reaches out to our people for emergency blood requirements for employees and

their families and friends

Marathons: Run-for-a-cause programsOur people give back to society through “run-for-a-cause” programs. We participate in various marathons organized in different metropolitan cities such as Delhi, Mumbai, Bengaluru, Hyderabad and Kolkata to raise money for charity.

Mentoring programThe program allows recipients of our scholarship scheme to benefit from the advice of our employees who mentor the scholarship awardees throughout the year. During these interactive sessions, guidance is offered to the students on career planning, soft skills and lots more.

Lighting livesFor over five years, we have been procuring our Diwali gifts from an NGO called Himjoli. The enterprise provides sustainable employment to thousands of rural farmers, artisans and women, aiming to transform lives through trade and not aid.

monetary contributions. About 2,000 employees are part of this club. Club members discuss ideas and experiences, and participate in various local programs helping the underprivileged. Several new initiatives have been launched with the help of the club members, in addition to the ongoing initiatives.

Sponsor a child’s educationStarted in 2010, this is a matching contribution program, which means that our employees can sponsor the education of any deserving child and EY will match their contribution.

EYF has a benchmark of INR9,000 per annum for schooling. There is a higher limit for professional courses such as engineering, as well as in special cases where the student is an orphan, or does not have a father and the family income is less than INR60,000 per annum.

Payroll giving programOur employees can help by making a contribution from their salary through the payroll giving and student sponsorship programs. For all such contributions from salary, employees get tax benefits as well.

Charities Aid Foundation India (CAF): Give As You Earn (GAYE) programEY has partnered with CAF, a global non-profit organization that facilitates “effective giving.” EY has signed up for CAF’s Give As You Earn (GAYE) program, which is a voluntary plan providing our people a convenient way to support a cause dear to their heart.

Give Back to Society (GBS) programThe program empowers each one of us to generate funds and resources and campaign for an NGO or cause of our choice. Under the GBS program, on contributing to an NGO of your choice, at the discretion of the organization, you will be eligible to a GBS Incentive, which will be equal to the contribution made by you (on a net of tax basis), subject to an overall cap of INR180,000 per NGO.

Clothes donation driveEY organizes an annual clothes donation drive, in partnership with Goonj, an NGO for the thousands who lack the basic dignity of clothing. In 2016, our people collected more than 26,000 kg clothes for Goonj, and extended this drive to residential complexes and schools as well.


Community contributions

Demonstrating environmental stewardshipEY has taken a voluntary pledge to be carbon neutral. In line with this, we have planted 551,000 saplings till date. We will be planting 100,000 saplings each year until we achieve a carbon-neutral status.

At EY India, we are constantly challenging ourselves to work in a more environmentally sustainable manner and to find new ways to reduce our energy consumption, carbon footprint and waste stream.

Measuring our carbon footprintWe continue to build-out our GHG measurement and reporting. Working with our own in-house CCaSS professionals, we have established a global methodology for calculating our environmental impact. As we continue to refine it, we are looking for ways to evolve our methods and employ leading practices to ensure that we have a credible global footprint.

In addition, we are working with our stakeholders to lay the foundation for improved centralized data collection to streamline our work and enhance the quality of the energy and business travel data gathered. This will enable us to set meaningful goals and reduction targets across the globe.

In FY16, 2,889 of our employees volunteered 8,816 hours of their time.

FY16 carbon footprint

Direct emissions Metric tons of CO2 %

Scope 1: Direct fuel usage for maintenance of backup generators

231 %

Indirect emissions 66%

Scope 2: Office energy consumption

11,917 34%

Scope 3: Business travel 30,802

Total emissions 42,950

Spotlight on the environment

Efficiency effortsWe continue to increase the energy efficiency of our offices. Although travel is critical to our business, we are investing in alternatives such as telepresence videoconferencing, and enhanced desktop and mobile options.

By globalizing many core business functions, such as IT, real estate and travel procurement, we are enabling every country to follow more consistent operational practices that will help reduce our environmental impact. EY member firms are increasingly able to share insights and progress around the world through a newly created global sustainable operations network and environmental scorecard. These global initiatives help EY India improve the environmental sustainability of our operations by leveraging leading practices.

• We have a solar panel installed in the Golf View Tower office in Gurgaon.

• Smart lighting solutions have been installed in all our new offices.

Save electricity

• Reverse osmosis (RO) plants installed across our offices save more than 175,000 plastic bottles from going into the landfill each year.

• Electronic waste is disposed of in an eco-friendly manner. (The assets are disposed of in a periodic manner to e-certified vendors after the usual life of the assets)

• Vermicompost/recycled paper is produced through dry and wet waste in the National Capital Region (NCR) and Mumbai.

Recycle, refill and reuse

• Bio blocks installed in men’s washrooms are expected to save approximately 20 million liters of water every year.

• Watershed activities initiated in villages will help us achieve a water-neutral status by 2020.

Water: Every drop counts


• Accepting only electronic mobile and telephone bills for reimbursement through our online database saves approximately 700,000 paper sheets every year.

• Shredded paper is collected and recycled in the NCR, Pune and Bengaluru offices.

• Digital employee communication has been implemented for statutory announcements, pay slips, tax information, Form 16 etc.

• Only e-greetings are sent to employees, clients and well-wishers.

Save paper

• EYF plants five saplings on every employee’s birthday.

Celebrating green birthdays

Business travelEY professionals travel extensively — by plane, train and automobile — to deliver exceptional client service. Business travel is responsible for the biggest environmental impact. Yet, it is the most challenging issue to address, given that travel is essential to our service delivery model. At EY, we are continuously striving to reduce the need to travel through video and teleconferencing, and are building good environmental practices at work. The wise use of our resources is extremely important to us, and our travel policy is prepared on these lines. Adequate approvals are necessary for traveling by planes. Most of our offices across the country are strategically located to ensure easy access to our people traveling by public transport. Smart IT solutions such as video conferencing and Lync meetings are used whenever possible to avoid travelling.

Giving back to the environmentClose to 100 of our colleagues from the Delhi and NCR region participated in the annual tree plantation drive at the Kumaon region in Uttarakhand.

Environmental sustainability is a key focus area for EYF, and we provide frequent opportunities to our people for contribution toward the environment.The tree plantation drive is a key initiative to reach EY’s goal of carbon neutrality. It also enables income generation for the villagers in the region. We have planted 551,000 trees till date and aim to plant 100,000 trees every year through this initiative.

Shares Anita Gupta, one of the volunteers,

“The tree plantation drive at Mukteshwar was one of the most gratifying experiences I’ve had in recent times. Meeting the villagers, planting trees with them and listening to their stories taught me a very important lesson: The purpose of life is not be happy — the purpose of life is to be compassionate, to be useful, to be able to make a difference to other lives.”

For Gagandeep Singh it was a deeply satisfying and fun experience.

“Through the drive, I got to know so many people from across service lines. Secondly, it was one of those extraordinary events when you are ‘being more than yourself’. Thirdly, the natural and serene environment reminded that we need to be a lot more responsible with how we use resources, lest we lose the precious things we cannot recreate or restore,” he added.

Additionally, our colleagues from Hyderabad and Chennai offices who could not join us contributed to the initiative by planting trees in their cities, helping us take a step closer to our vision of a greener India.


Says Umamaheswari A, “Coastal clean-up made me realize how important Swachh Bharat is for our country. Just one part of the beach area had so much of garbage. I think it is important to educate our people on cleanliness as this alone can be a permanent solution.”

30 minute switch offTo create a more positive and sustainable impact on the environment, the 30 minutes switch off (lights off) initiative, which we follow during the Earth Hour and Environment Week, is now being continued throughout the year on days when there is sufficient natural light. The printers and air conditioners across our offices continue to function during this time while the lights are turned off.

Coastal clean-upIn the month of June, about 76 of our people from the Chennai office participated in the coastal clean-up drive organized by the Chennai Trekking Club. About 4,500 volunteers from 140 organizations segregated 38 tonnes from 20 km of beaches from Marina to Uthandi and recycled 56%, while the rest was moved to a landfill. This annual awareness campaign sensitized the public on our growing garbage footprint, the negative impact of plastics on our environment and the need to start segregating at home and saying no to single-use plastics in order to create a more sustainable future.

Blood donation driveIn another volunteering initiative, over 900 of our people donated blood at the voluntary blood donation camps organized across the country.

“The best thing about blood donation is that you gain more (satisfaction) than what you give (blood). I like this CSR initiative as it lets me donate blood in a comfortable and hygienic environment, without the need to travel,” shares Rohit V. Nahar, Bangalore.


EY India Sustainability report 2016 45EY India Sustainability report 2016 45


How we areorganized5


Global organization structure

Global Advisory Council (GAC)

INE representatives

Global Executive (GE)

Member firm organization structure

Significant organizational changes



Global organization structureOur structure is composed of the Executive and Regions. The Executive includes our global leadership, governance bodies and our four geographic Areas. Working together, they oversee our global strategy, brand, business planning, investments and priorities.

Our 28 Regions are grouped under four geographic Areas: Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.

This structure is streamlined, allowing us to make decisions quickly, execute our strategy and provide exceptional client service wherever in the world our clients do business.

Our global structure means we can respond faster than our competitors. We can access the right people and assemble high-performing teams to deliver exceptional client service worldwide. We are not merely a loose collection of national practices — we are a global organization, unified in our approach.

The structure and principal bodies of the global organization during the year ended 30 June 2016 are described below. They reflect the principle that EY, as a global organization, has one shared strategy.

Global Advisory Council (GAC)The GAC is the main advisory body of EYG. It comprises a number of member firm partner-level professionals (referred to as partners) drawn from across the four Areas, and includes independent non-executive representatives (INEs). The partners, who otherwise do not hold senior management roles, are elected by their peers for a three-year term, with provisions for one successive re-appointment.

The INEs are nominated by a dedicated committee. The GAC advises EYG on policies, strategies and the public interest aspects of their decision-making. The approval of the GAC is required for a number of significant matters that could affect EY.

INE representativesINEs are appointed from outside of EY and bring the global organization, and the GAC, the significant benefit of their varied perspectives and views. More information on EY’s INEs can be found in the next section.

Global Executive (GE)

The GE brings together EY’s leadership functions, services and geographies. It is chaired by the Chairman and CEO of EYG, and includes its COO; the Global Managing Partners of Client Service and Business Enablement; the Area Managing Partners;

the global functional leaders for Talent, Risk Management, and Finance and Corporate Development; and the leaders of the global service lines — Assurance, Advisory, Tax and TAS — as well as the global leader for Public Policy. The GE also includes the Chair of the Global Accounts Committee and the Chair of the Emerging Markets Committee, as well as a representative from the emerging markets practices.

The GE and the GAC approve nominations for the Chairman, CEO and COO of EYG, and ratify appointments of the Global Managing Partners. The GE also ratifies appointments of Global Vice Chairs. The GAC ratifies the appointments of any Global Vice Chair who serves as a member of the GE. Further, the GE approves the appointments of Area Managing Partners. Such appointments are subject to ratification by the GAC.

The GE’s responsibilities include the promotion of global objectives and the development, approval and, where relevant, implementation of:

• Global strategies and plans

• Common standards, methodologies and policies to be promoted within member firms

• People initiatives, including criteria and processes for admission, evaluation, development, reward and retirement of partners

• Quality improvement and protection programs

• Proposals regarding regulatory matters and public policy

• Policies and guidance relating to member firms’ service of international clients, business development, markets and branding

• EY’s business plans, development funds and investment priorities

• EYG’s annual financial reports and budgets

• GAC recommendations

• Any other proposal that supports the global objectives

• The GE also has the power to mediate and adjudicate disputes between member firms.

GE CommitteesChaired by members of the GE and bringing together representatives from the four Areas, the GE Committees are responsible for making recommendations to the GE. There are committees for Global Markets and Investments, Talent, Risk Management, Assurance, Advisory, Tax and TAS.


Global Practice GroupThis group brings together the members of the GE and GE Committees and Regional leaders. The Global Practice Group seeks to promote common understanding across member firms of EY’s strategic objectives and consistency of execution across the organization.

EYG member firmsUnder the regulations of EYG, member firms commit themselves to pursue EY’s objectives, such as the provision of high-quality service, worldwide. To that end, the member firms undertake to implement the global strategies and plans. They are required to comply with common standards, methodologies and policies, including those regarding audit methodology, quality and risk management, independence, knowledge sharing, human resources and technology.

Above all, EYG member firms commit themselves to conducting their professional practices in accordance with applicable professional and ethical standards, and all applicable laws. This commitment to integrity and doing the right thing is underpinned by our Global Code of Conduct and our values.

Besides adopting the regulations of EYG, member firms enter into several other agreements covering aspects of their membership in the EY organization, such as the right and obligation to use the EY name and the sharing of knowledge.

Member firms are subject to reviews that evaluate their adherence to EYG requirements and policies governing issues such as independence, quality and risk management, audit methodology and human resources. As necessary, special focus reviews are performed to address situations or concerns as they arise. Member firms unable to meet the quality commitments and other EYG membership requirements are subject to separation from the EY organization.

Member firm organization structure of EY IndiaEY India is part of EMEIA, which unites EY firms from more than 90 countries in Europe, the Middle East, India and Africa to offer clients the best possible teams, resources and services.

In India, the member firms are organized as either limited liability partnership firms, partnership firms or private limited companies.

Significant organizational changesEY India experienced no significant change in terms of ownership or structure during the 2016 fiscal year reporting period, other than the routine retirement/induction of new partners.


About thisreport6


This is EY India’s fourth sustainability report.

This report covers the 2016 fiscal year, from 1 July 2015 to 30 June 2016.

The report follows EY India’s previous report, published in 2015. We are committed to reporting periodically on our activities.



Defining the boundary of the reportEnvironmental boundaryOur carbon footprint is calculated according to the World Resources Institute/World Business Council for Sustainable Development’s Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. Direct and indirect emissions sources are included in the scope of our carbon footprint, for which we gathered and analyzed information from:

Boundary limitationsFor the purpose of carbon footprint calculation, employees from EY member firms outside India who were assigned to work on projects within the country were excluded from the scope, as their physical location was in a different region. Also excluded from our boundary were companies that have a relationship with EY but have no financial ties to EY India.

There have been no significant changes from the previous reporting period in the scope, boundary or measurement methods applied in this report. EY India is not aware of any such matters that could significantly affect comparability between periods or organizations.

Determining report content and materialityWe have developed this report in accordance with Global Reporting Initiative (GRI) G4 (Core) Sustainability Reporting Guidelines. Members from EY’s Sustainability Services team advised EY India on the content of our report, using an approach similar to what they use with external clients. We have used a systematic approach to understanding the issues that our report should cover, as well as the measurements we use to document our performance against these issues.

Scope 1:

Scope 2:

Scope 3:

Direct fuel usage for maintenance of backup generators

Office energy consumption

Business travel

Emissions associated with fuel combustion are incorporated in Scope 1. Emissions related to the use of purchased electricity are incorporated in Scope 2, regardless of the lease agreement. Emissions resulting from business travel, including air, rail and vehicle, are incorporated in Scope 3.

MaterialityIn developing the sustainability report, EY India adopted a systematic approach to defining all relevant stakeholders. To determine the material aspects of this report, EYG undertook a stakeholder engagement process in 2014. The sustainability working group engaged local stakeholders from more than a dozen countries as a means to identify the performance indicators that stakeholders consider material and relevant globally. To determine the materiality of the sustainability-related issues our stakeholders raised, EY India considered the following sources:

• EY’s Vision 2020 purpose to Build a better working world and our strategy to deliver on this vision

• Experience with previous sustainability reports. Stakeholder survey results that span current and target clients; our people (from senior leaders to new recruits to alumni); our communities (entrepreneurs, trade associations, stock exchanges and regulators, and nonprofits with which we collaborate within our communities); and key vendors from our supply chain

• Competitor global sustainability reports available in the public domain

Once the data was aggregated, EYG developed a materiality matrix that ranked the various sustainability issues against stakeholder interest and relevancy to our business impact. This year, we conducted a fresh stakeholder survey on the 25 topics identified by EYG in 2014. We then categorized the issues by three segments that reflect the rating system:

• Very important: There were 11 issues/aspects that stakeholders classified as very important. We determined these issues to be most material to EY and the issues on which we would produce a full Disclosure of Management Approach (DMA) as well as at least one indicator for each aspect.

• Important: We classified 9 issues/aspects as being important or elective in materiality. These may include some DMA, but we may not report a full DMA or indicators.

• Less important: We classified 5 issues/aspects as less important. We have elected not to report a DMA or indicators for these issues.

AssuranceThis sustainability report was reviewed internally. This report did not receive assurance from an external auditor.

RestatementsThere have been no restatements related to this report.


Materiality m

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hat’s important to you is im

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Low

High

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Sustainability in our EY services

Impact mitigation by professional services

Customersatisfaction

Governance practices

EY non-compliance with laws and regulations regarding our services

Training, education and career development

Diversity and equal opportunity

Employment Compensation and benefits

Anti-corruption training at EY

Employment statistics (age, gender, retention)

Anti-corruption assessment, mitigation and reported incidents

Human rights within the EY workforce

Responsible procurement practices

Human rights in the supply chain

Sustainability of major EY events

Business travel

EY support of entrepreneurship

Pro-bono and volunteering at work

Sustainability training for EY employees

Notice periods for employment related changes

Materials and waste Parental leave

Energy usage and Climate change

Customer privacy

Medium High

Topics GRI G4 indicators EY KPIs

1 Generated economic value and market share, including donations and community investments EC1 EY1

2 Sustainability in our EY services (i.e. this includes all sustainability related services, not restricted to EY’s Climate Change and Sustainability Services) EY4

3 Impact mitigation by professional services (e.g., Cleantech and Sustainability-related services) EN27 EY54 Customer satisfaction PR55 Customer privacy PR86 Governance practices EY87 EY non-compliance with laws and regulations regarding our services PR98 Training, education and career development LA9,119 Diversity and equal opportunity LA12, 13

10 EY support of entrepreneurship EY311 Pro-bono and volunteering at work EY212 Employment Compensation and benefits LA213 Business travel EN3014 Anti-corruption training at EY S0-315 Employment statistics (age, gender, retention) LA116 Anti-corruption assessment, mitigation and reported incidents S0-317 Human rights within the EY workforce HR3,418 Responsible procurement practices EN32-33, HR10, S09, LA14 EY519 Human rights in the supply chain HR1,420 Sustainability of major EY events EY621 Sustainability training for EY employees EY722 Energy usage and Climate change EN3-1923 Parental leave LA324 Materials and waste (e.g., office materials) EN1, 2 , 2325 Notice periods for employment related changes LA4

KPI: Key performance indicators, EY-specific KPIs:, EY1: EY market share for EY; EY2: Pro-bono and volunteering, number of hours and persons involved; EY3: EY’s commitment to supporting entrepreneurship in the local community; EY4: Inclusion of sustainability views in our services; EY5: Implementation of procurement policy; EY6: Implementation of EY’s global guidance for greening our meetings; EY7: Sustainability-related subjects included in employee training; EY8: Governance practices



Stakeholders and mechanisms of engagement

Our approach to the 2016 sustainability report reflects the global EY ambition to strengthen globally but empower member firms locally; to embolden stakeholder relationships everywhere; and to become the most favored employer in the professional services industry. To achieve these ambitious goals, it is absolutely vital that we listen to our stakeholders — our clients, our people and our communities.

We learn what is important to them, how they view us today and the path they expect us to follow. These insights have a direct impact on our success. They enable us to identify material issues, including risks and opportunities; enhance our approach to risk; and improve our performance. As such, we need to understand their views, adapt our approach or direction to reflect our understanding, and communicate the impact of their input. The diagram above indicates how we engage with our stakeholders, as well as their interdependence and influence on our decision-making process.

EY India

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• Generated economic value and m

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• Initiatives to reduce greenhouse gas

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• Activities and actions related to customer privacy

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• Percentage of individuals in

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2. Why our stakeholders are important to us

3. Key issues our stakeholders say are the most important



GRI summary table

The GRI summary table provided below indicates where the report’s information corresponding to the GRI’s G4 Guidelines is located. Page numbers refer to pages in this report. URLs point readers to documents with relevant content available on ey.com. The complete GRI content index is available at ey.com.

Indicator Location Indicator Location

G4-1 First page G4-27 10-45

G4-3 Cover G4-28 51

G4-4 At a glance page G4-29 51

G4-5 At a glance page G4-30 51

G4-6 48 G4-31 62

G4-7 49 G4-32 52-54

G4-8 At a glance page, 10, 26, 30-31 G4-33 NA

G4-9 At a glance G4-34 46-49

G4-10 22 G4-56 9-13

G4-11 NA G4-EC1 NA

G4-12 27 G4-EN3 42

G4-13 49 G4-EN27 33, 42-44

G4-14 12 - 13 G4-HR3 20

G4-15 33, 38-40 G4-LA2 23

G4-16 33 G4-LA9 19

G4-17 NA G4-LA11 18

G4-19 53 G4-LA12 12

G4-20 48-53 G4-S03 10-11

G4-21 51-53 G4-S04 At a glance

G4-22 52 G4-S05 NA

G4-23 52 G4-PR5 13

G4-24 52 G4-PR8 13,26

G4-25 52

G4-26 52



Dataoverview7


Environment

Labor


Employee breakdown by gender

Employee breakdown by age

Communities



This section presents an overview of the quantitative KPIs discussed within this report.

Direct emissions FY16 FY15 FY14 FY13

Scope 1: Direct fuel usage for maintenance of backup generators

231t 171t 247t 315.64t

Scope 2: Office energy consumption 11,917t 11,714t 10,240t 12,417.41t

Scope 3: Business travel 30,802t 26,960t 22,718t 22,533.04t

Total emissions 42,950t 38,845t 33,204t 35,266.09t

Equivalent level Below 30 % 30-50 % Above 50 % Grand total

Partner 8 66.67% 4 33.33% 12

Executive Director 6 75.00% 2 25.00% 8

Director 3 100.00% 3

Associate Director 36 90.00% 4 10.00% 40

Senior Manager 82 95.35% 4 4.65% 86

Manager 169 82.84% 31 15.20% 4 1.96% 204

Senior Executive 262 54.81% 215 44.98% 1 0.21% 478

Executive 124 15.23% 690 84.77% 814

Staff 36 12.90% 240 86.02% 3 1.08% 279

Intern 69 100.00% 69

Grand Total 723 36.28% 1245 62.47% 25 1.25% 1993

Equivalent level Male Female Total hours

Principals, Executive Directors, Directors 5,598 575 6,174

Senior Managers, Assistant Directors, Directors 23,846 4,859 28,705

Managers 30,575 8,199 38,775

Senior Consultants, Assistant Managers, Senior Executives 59,009 19,838 78,847

Consultants/Associate Consultants/ Executives 118,091 77,005 195,097

Analyst/Interns 56,626 43,908 100,534

Total 2,93,746 1,54,385 4,48,131

EnvironmentMaterials used by weight or volume

LaborTotal employee attrition


Carbon footprint

*T: Tonnes



Title FY16 FY15 FY14 FY13

Male % Female % Male % Female % Male % Female % Male % Female %

Employees receiving regular performance and career development reviews

67.7% 32.2% 68% 32% 69% 31% 69.5% 30.5%

Percentage of employees receiving regular performance and career development reviews, by gender

Levels Below 30 % 30-50 % Above 50 %

Associate Director 306 9.47 11 11.83

Director 4 0.00 1 1.08

Executive 2,986 55.14 405 12.53 5 5.38

Executive Director 53 1.64 14 15.05

Manager 194 3.58 696 21.54 2 2.15

Partner 203 6.28 38 40.86

Senior Executive 910 16.81 862 26.68 5 5.38

Senior Manager 10 0.18 434 13.43 5 5.38

Staff 1,116 20.61 268 8.29 12 12.90

Intern 199 3.67

Total 5,415 61.96 3,231 36.97 93 1.06

Employee breakdown by age

Employee breakdown by gender All India head count

Males67.7%

61.9% 36.9% 1.06%

Females32.2%

Below 30 30 - 50 Over 50

5923 2816



Notes


ContactsEsha Dani+91 22 [email protected]



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