Global review 2018:
How do we create value
and build trust in thistransformative age?

The better the question. The better the answer.
The better the world works.

We are living in a transformative age. Rapidly advancing technology, globalization, the rise of the emerging
markets and shifting demographics are changing business and society faster than ever. Traditional businessmodels are being upended, sectors are converging, workforces are transitioning and the global economy is
becoming ever more complex. Disruption is the new normal, and businesses are either disrupters or they arebeing disrupted.
At EY, our purpose is Building a better working world. An important part of fulfilling our purpose is asking better
questions. These questions help businesses and governments to discover better answers and navigate today’s
dynamic landscape. To make sure we succeed, we are transforming ourselves at the same time — offering newservices, creating new alliances, shaping the future of work for EY people and transforming how we support ourcommunities.
Fulfilling our purpose requires building trust across society. This is an important objective of all businesses
across the globe. Doing so requires business to be more transparent and to demonstrate the ways in which it
creates value for all stakeholders. In this year’s Global review, you can learn about the exciting ways we’rechanging and how we create value and build trust in this transformative age.

Contents
Hear from our Global Chairman and CEO

03

Building trust and confidence

04

Case Study: Data harbors the answer

15

Case Study: Understanding the challenges of children in need

17

Case Study: Restoring trust in the wine industry, from grape to glass

19

Developing purpose-driven leaders

21

Driving sustainable and inclusive growth30

Case Study: Turning waste into opportunity

36

Facts and figures

38

EY GLOBAL REVIEW 20182

Hear from our
Global Chairman and CEO
In this transformative age, technology is reshaping
every aspect of business and society, from sector
convergence to business models, and from
communication protocols to new social constructs.
The nature of work is evolving, too, as a result of boththis rapidly advancing technology and the different
outlook of new generations of workers.
At EY, we feel a responsibility to demonstrate how,even in a time of great change, we are Building abetter working world for our clients, for our people
and for our communities.
For our clients, we’re doing that by asking better
questions, and innovating and adapting our own
business to the new realities they face. We’re evolving
our services in the areas of Assurance, Tax, Advisory
and Transaction Advisory Services. We’re building
our sector knowledge and developing new managed
services and other business models. We also recently
announced an additional US$1b investment ininnovation and client technology over the next two
years. And, we are growing and diversifying ourworkforce, while teaming with alliance partners fromacross the globe.
We are helping our 260,000 people around the world
to stay ahead of new trends by offering them worldclass training and opportunities for experiential
learning. We’re helping them develop skills not only in
our traditional services, but also in fields such as data
analytics, robotic process automation and artificial
intelligence — all the while gaining new credentials,
or “badges,” demonstrating their new skills. And
we’re extending our workforce by tapping into thegig economy with our own advanced technology
recruitment platform, GigNow. We’re proud to once
again be recognized as one of the world’s best
employers by organizations such the Great Places toWork Institute, Fortune, Universum and DiversityInc.
For our communities, and for all of our stakeholders,
we’re working to demonstrate the value that we,and business, create even in a time of great change.
Through global teams with multidisciplinary skill sets
we help digital pioneers fight data piracy; guide
governments through cash-flow crises; unlock new
medical treatments with data analytics; and deliver

EY GLOBAL REVIEW 2018high-quality audits to build trust in financial markets
and business. In the year ahead we will make an evengreater impact in our communities as we amplify our
corporate responsibility efforts through a new global
program called EY Ripples.
Recently I’ve been involved in many discussions
about how to increase focus on building trust throughnew approaches to corporate reporting, focusing on
long-term value creation for all stakeholders. These
discussions have now become a movement, involving
businesses and a broad range of their stakeholders.
Through our involvement with the Embankment
Project for Inclusive Capitalism, it’s an effort that I’m
proud to say we’re at the forefront of. This year, we areprogressing toward more open reporting, focused on
how we create long-term value for our stakeholders.
In this global review, we are reporting a broader rangeof metrics that highlight our activities in attracting,developing and retaining our people, demonstrate
our commitment to our communities, and theenvironment, among others. It’s a beginning of ajourney we intend to continue in future years.
The world is changing in ways that we couldn’t haveimagined just a few years ago, and I’m incredibly
optimistic about the future — because these changes
create enormous opportunities for all of us.
EY is capitalizing on these opportunities by providing
enhanced value to our stakeholders, as demonstrated
by another solid performance in our 2018 financial
year, which ended on June 30. Our global revenues
grew strongly across all of our geographies and service
lines, by 7.4% in local currency terms (nearly 11% in
US dollars), to US$34.8b. This brings our five-year
CAGR — since we started on our Vision 2020 journey— to 8.5% in local currency.
As we look to the future at EY, we will continue to growand transform, working with all of our stakeholders,to live our values and fulfil our purpose of Building abetter working world.

Mark A. Weinberger
EY Global Chairman and CEO

3

Building trust and confidence

EY GLOBAL REVIEW 2018

4

At EY, all of our services help tobuild confidence, whether directly
through our work or indirectly
through what our work allows
others to achieve.
We play a crucial role in the functioning of global
capital markets, and therefore the business world
as a whole. This is true across all four of our service
lines — because we are a global organization, weare able to offer our clients consistent services andservice methodologies wherever they do business,tailored specifically for their market andcircumstance.

In this transformative age, we have to stay ahead of new trends.
We need to maintain and improve the quality of our traditional
services and our sector knowledge, while making greater use of
emerging technologies and different skills to create new, innovative
offerings. We serve our clients and build trust and confidence
through:1.

Evolving our services

2.

Expanding our innovation capacity

3.

Looking at digital from every angle

4.

Investing in emerging markets

5.

Ensuring quality

6.

Strengthening our brand

CHAPTER 1

Evolving our services
Technological change is redefining the market foreveryone. In this disrupted, connected and fastpaced world, our clients are increasingly turning to
us for advice and insights on how to better manage
risk, where to seek growth and how to weave digital
into their strategy and operations. Like us, they’refocused on driving innovation — not just in products
and services, but in business models too. In thistransformative age, we must keep asking ourselves,“What’s next?”
Assurance
For Assurance, advancing technology, tools and skills
creates the opportunity to continually innovate,
improve effectiveness, enhance perspectives andincrease stakeholder confidence.
In Audit, our own transformation and digitalization— through investing more than US$500m intechnology in the past few years — has transformed
the provision of EY services. EY Canvas is thefoundation of our technology, with companies able toreceive real-time updates through our Client Portal.
Meanwhile, EY Helix allows analytics to be embeddedin every significant aspect of the audit. Rather thantesting smaller samples, we can now capture,transform and analyze full populations of structured
and unstructured data using our Hadoop platform.
This helps us to explore both the detail and the bigger
picture. EY auditors can now deliver a truly analyticsdriven audit. They can identify more easily where tofocus their time, and concentrate on auditing rather
than the collection of data. With information at theirfingertips, auditors’ inquisitiveness and skepticism
are enhanced.

EY GLOBAL REVIEW 2018

5

This truly digital audit improves audit quality:
investors can have more confidence in the financial
reporting of EY audit clients; audit committees andmanagement benefit from greater risk insightand new perspectives; and company management
and finance teams have time freed up to focus on
the most relevant issues. Our skilled auditors, usingstate-of-the-art technology, are able to bring a newlevel of insight and perspective to the audit and, inturn, to a company’s business operation.
EY Financial Accounting Advisory Services teams
continue to help finance leaders interpret,
communicate and shape the strategy around thenumbers they report. From advising on complex
issues arising from new accounting guidance toimproving existing accounting processes, our goal
is to help clients find insights that may not be
immediately evident. We are not only helping
transform the way our clients work, but the way wework. This involves us constantly challenging how wehelp add value. And with an ever-increasing focus on
the environment, health and safety, and sustainability— as well as investor interest in non-financial
information — we’ve enhanced EY Climate Change
and Sustainability Services to measure value beyond
what is captured on the financial statement.
Tax
In Tax, we help build a better working world byadvising our clients on meeting their tax obligations
and resolving tax controversy. In FY18, we helped
organizations and individuals across the globe meettheir tax obligations by filing over 1 million tax
returns with more than 180 tax authorities andregulators. We also foster open dialogue with tax
administrators, government officials and otherstakeholders about tax issues, the impact of policy
decisions, and the contributions that companies andindividuals make to society by paying the correct
amount of a variety of taxes.

EY GLOBAL REVIEW 2018

In order to stay to keep pace with a changing tax
landscape, EY Tax has introduced services andsolutions that it can tailor to meet each client’s
needs and address their unique circumstances.
A range of converging factors — increasing tax
complexity due to significant legislative changes
including US tax reform, implementation of Base
Erosion and Profit Shifting regulation, moregovernmental enforcement of tax laws around theworld, a shortage of qualified talent and theproliferation of digital technology in government —is causing companies to rethink the tax department
and how to futureproof it for tomorrow. Our clientsare demanding better integrated, technology-based
solutions to the challenges of their tax operations.
For many, that includes closely assessing build or buy
in-house models versus outsource and co-source
options. The EY Tax and Finance Operate platformof processes, technology and people helps our clientsdefine the right sourcing mix.
EY professionals in Tax Technology and Transformation
Services are focused on building the new model fortoday’s tax function. They’re taking a fundamentallydifferent look at the tax function and what it takes tooperate in a hyper-connected global economy. That
includes addressing unprecedented strategic andoperational challenges, acting on digital tax authorities’
demands for real-time access to data, and responding
to rapid innovation in technology.
Advisory
At EY, we are developing our Advisory services toproactively meet the needs of our clients. We’recontinuously challenging and enhancing our assets
and capability based on our strategic growth drivers— analytics, cybersecurity, strategy and customer,
technology and digital. We have also invested in
key strategic hires and acquired new talent, insights
and capabilities in AI, design, robotics and othertransformative disciplines.

6

We are shifting our ways of providing services bycreating ecosystems through strategic alliances,through the use of automation, and throughmanaged services to provide end-to-end services
and solutions for our clients.

The use of transaction analytics is one way EY has
been doing this — carrying out advanced quantitative
analysis to drive more accurate deal observations
and insights. In other words, the use of knowledge toreplace speculation.

We are proud of some key capability launches in
FY18 that demonstrate how we are enhancing ourservices. These include: EY Catalyst, a leading
operational excellence cloud-based platform that canhelp clients significantly enhance their performance
improvement programs in supply chain andmanufacturing; EY Risk Navigator, an integrated
solution built on the SAP®Cloud Platform — SAP’s
open platform-as-a-service – that helps EY clientstake advantage of predictive analytics to monitor
and manage risk and compliance in the digital age;
Internal Audit Re-imagined, which infuses newtechnology solutions — analytics (EY Optix), robotics(Automation Central) and risk assessment (RiskApp
supported by ThinkTank) into our core intelligent
automation offerings; and EY PathScan, which
identifies complex cybersecurity attacks. Flagshipcybersecurity centers were opened in Dallas andMuscat, with Melbourne scheduled to open in FY19.

One of the more forward-looking analytic tools is
Embryonic, which was launched in the first quarter.
Embryonic helps EY clients to dynamically analyze
their ecosystems and predict disruption ahead of
the curve.

Our network of wavespace™ innovation centerscurrently operate from 18 global flagship locations,with further centers to open in FY19.
Through these offerings, Advisory is helping
organizations solve their most pressing issues,
transform themselves and manage change and risk.
Transaction Advisory Services
In Transaction Advisory Services (TAS), ourprofessionals are using the EY Capital Agenda
framework to help companies drive inclusive growth.
We do that by focusing on capital and transaction
strategies through execution to drive fast-track value
creation. In a rapidly changing, increasingly digitaland disrupted business environment, TAS supports
the flow of capital across borders, helps bringnew products and innovation to market, and helps
organizations to reshape themselves for a better
future.

EY GLOBAL REVIEW 2018

Navigating a converging sector landscape
The global EY sector teams are seeing technology
transform entire industries, and our clients need torespond with digital at the heart of their growthstrategies. The old lines between different sectors
are rapidly blurring, and EY is helping our clients findvalue where industries converge.
Clients are looking for more than traditional peoplebased consulting models. As a result, EY is identifying
and designing new cross-service line and cross-sector
services and solutions that are based aroundtechnology and data.
In this digital world, EY’s clients recognize the needto adapt and innovate in order to grow. However,their opportunities and challenges are specific tothem, making each digital journey unique. That’s
why our digital go-to-market strategy is sector-led
and issue-focused.
The global EY sector teams are at the forefront ofunderstanding the drivers of disruption in eachsector, and support our clients to respond to theindividual requirements they have for creating a
digitally enabled business model.

7

In FY18, we continued to help our clients embraceindustry disruption as an opportunity. At Innovation
Realized™ 2018, in Amsterdam, and World
Entrepreneur of the Year™ in Monaco, EY held
sessions designed to shape the debate on topics suchas smart cities, healthcare and the future consumer.
Creating new business models
EY is faced with a complex, rapidly changing businessenvironment, which is disrupting professional
services business models. Our response to thischanging business environment is to complement
our traditional services with new alternative businessmodels we are developing, which enable us to adapt,differentiate ourselves and thrive in a new world of
business.
We are already taking steps to investigate and adopt
alternative business models. For example, we aredeveloping new industry-focused asset and IP-based
solutions, and service line initiatives are already inplace to build alternative business models, enabling
opportunities to develop new solutions and toautomate existing services. These asset-based
solutions are underpinned by technology assets.
They differ commercially to our traditional services,with revenue often generated via a subscription or
license for use of the asset. They strongly leverage
our alliance partners and are data-intensive in nature.
We are also offering new managed services, strategic
arrangements with clients to provide delivery of awell-defined set of high-value services on a recurring
basis. We are offering these in areas such as finance,tax, risk and compliance, where we can offer EY
clients leading technology, knowledgeable
professionals, and flexibility and scalability, toaddress today’s business challenges — for a reduced
and more predictable cost than doing it in-house.

EY GLOBAL REVIEW 2018

Building an ecosystem – acquisitions and alliances
To build our existing services, we are creating arobust ecosystem through acquisitions and alliances.
In the last six years, there have been more than 120
strategic acquisitions in EY around the world. These
investments have brought highly skilled teams, newcapabilities, unique assets and valuable intellectual
property into EY, directly enhancing the value thatcan be provided to clients around the world.
The acquisitions have supplemented existing service
offerings and accelerated the build out of key
strategic priorities such as digital, data analytics,
strategy and cybersecurity. The world is undergoing
rapid advances in technology and the acquisitions inthese strategic areas are helping us address ourclients’ business imperatives in an ever-changing
market environment.
In today’s complex business environment, no one
organization can offer its clients everything. EY hasentered into 21 strategic alliances with technology
and industry leaders that allow us to blend powerful
technology and innovative methods with ourdistinctive capabilities and industry experience tohelp clients address their toughest challenges.
EY collaborates with organizations such as SAP,
Microsoft, IBM, Adobe, Blackline, Pega andServiceNow to create pioneering solutions, poweredby leading and emerging technologies, including AI,
blockchain, Internet of Things and cybersecurity.
The solutions address a broad range of client needs,
including helping them turn insights into businessbreakthroughs, accelerating their supply chain
strategies, and modernizing their finance andaccounting processes.

8And to help meet the growing need for organizations
to leverage disruptive technologies, we unveiled the
EY Global Innovation Garage in Palo Alto, California,
home to the EY Global Innovation team. Leading
talent, including mathematicians, cryptographers andAI professionals, will provide strategic thinking thatinspires forward-thinking and fosters innovative
solutions for EY and its clients.

CHAPTER 2

Expanding ourinnovation capacity
Innovation is about creating an agile organizationthat can manage any shift, change or disruption
from any direction while also seizing opportunities.

The convergence of these technologies is driving newlevels of innovation within EY, and it’s having an
impact. We are, for example, a leading user of RPA,
both for clients and internally. This year we created
1,300 bots for clients and 700 for use within EY.
Those 700 have saved us 2.1 million hours ofrepetitive tasks, freeing up our people for higher-level
work. And today there are more than 20,000 data
and analytics practitioners in EY, including over
2,000 fully fledged data scientists.

To help us do this, we plan to invest US$1 billion
in new technology solutions, client services andinnovation over the next two years. This is part of
EY’s ongoing plans to provide clients with innovative
services using the latest disruptive technologies.
The new US$1billion funding is in addition to ourexisting, significant annual technology investment.
We will use it to create new technology-based
services in areas such as financial services, cyber,risk management, managed services and software
services as well as digital tax and audit services.
The changes we’re seeing today require us to think
about innovation beyond technology solutions andredefine who we are, how we charge, how we deliver
and what services we offer. We’ve embarked ona worldwide effort to disrupt ourselves and adapt
for the future, which has required us to create aninnovation culture.
We look at innovation holistically, exploring
opportunities in every function of business, andare currently focused on disruptive technologies:
AI, RPA, blockchain and advanced analytics.
In 2018, we launched the world’s first blockchain
platform for marine insurance and we started a pilot
for the EY Blockchain Analyzer, a suite of blockchain
audit technologies that enhances the ability toperform an in-depth review of cryptocurrency
business transactions.
EY GLOBAL REVIEW 2018

CHAPTER 3

Looking at digital fromevery angle
Weaving digital into everything we doThis transformative age is shaped by collisions ofideas and technologies, which offer opportunities tocatalyze and create growth, reshaping businesses inways never before imagined. No sector, no country
and no business is immune from the impact of
disruption. The companies that thrive in this fastevolving digital world will be those that seize theupside of disruption.

9

At EY, we believe that looking at digital from every
angle will unlock new opportunities in thistransformative age. Organizations will harness thefull power of digital only when they see it as part ofsomething bigger. Digital is a way of thinking andacting to be embedded across the whole enterprise,
including strategy, innovation, experience, operations
and trust. Our view is that organizations do not needa digital strategy — they need a business strategy
that is fit for the digital world. It’s about making every
part of the organization digital-fit now and seizing theupside of disruption.
EY supports clients as they develop and execute anagile business strategy that helps them to adapt toa constantly changing digital environment, thereby
seizing opportunities and managing risks at every
stage of the value chain. We look at the wholeenterprise and explore key issues like enterprisestrategy, innovation, experience and trust. No
matter where our clients are on their digital journey,
this approach can help them confidently navigate
digital disruption.

businesses have been brought into EY to add top
talent to the fold and expand our emerging
technology capabilities. EY wavespace™ currently
operates in 18 locations, with further centers toopen in FY19.

CHAPTER 4

Investing in emerging markets

We’re also leading the dialogue on digital andInnovation Realized™, our uniquely immersive andinteractive retreat, is designed to help leaderstransform their business and win in a digital world.
This year, over two days, an invited group of
corporate executives, startup CEOs and market
influencers went on an inspirational journey —engaging in small group discussions, collaboratingwith peers and solving shared challenges.

The emerging markets play an important role at EY
in driving revenue growth and innovation.

Expanding our wavespace™ network
EY wavespace™ is our network of global growthand innovation centers, where we bring digitalcommunities together to help clients explore new
business models and emerging technologies that
can transform their business. The centers are used
to create facilitated, immersive pre-sales events forclients, and in carrying out large transformational
engagements.

We support companies in developed and emerging
markets to improve cross-border opportunities.
Our purpose of building a better working world also
includes working with companies, governments andnon-governmental organizations to support emerging
economies in their growth trajectories, improve thebusiness environment, and better understand andmanage risk.

Emerging technologies that we embrace include RPA,
AI, intelligent automation, blockchain, advanced
analytics, VR/AR and cybersecurity. We collaborate
with our global alliance partners, universities,
startups and other providers to bring the latest
emerging technology to EY clients. Several new

EY GLOBAL REVIEW 2018

EY’s leading position in many of the world’s emerging
economies is underpinned by our ongoing investmentin them. This year, 32% of the newly promoted
partners came from the emerging markets, areflection of the important role these markets areplaying in our organization’s growth.

The Emerging Markets Center quickly and effectively
connects clients to the world’s fastest-growing
economies. We share the breadth of our knowledge
through a wide range of initiatives, tools andapplications, offering businesses in both matureand emerging markets an in-depth and cross-borderapproach.

10And the EY Global Emerging Markets Committee
comprises senior managing partners from emerging
economies across the globe. Its purpose is to use our
global approach to expand and leverage experienceand talent in the emerging markets, and to empower
our local teams who work closely with clients acrossthe developing world, or those with an interest in
expanding into these markets.
In FY18, EY has been expanding the emerging
markets offering in digital, analytics and cyber (DAC)
to help clients navigate this transformative age. The
emerging markets DAC businesses have grown thenumber of people by 30% and has set up experiencelabs, aligned to the EY wavespace™ network acrossthe globe, to showcase DAC services across Greater
China, ASEAN, India, Africa and Latin America.
EY revenue growth in emerging markets has
outstripped our growth in developed markets forseveral years. Over the same period, largely becauseof the strength of the US dollar versus othercurrencies, the proportion of revenue that emerging
markets contribute to our total has grown only
slightly, to about 18% in FY18.
Revenue growth by market (local currency)
FY16

FY17

FY18

Emerging markets

12.8%

8.9%

10.0%

Developed markets

8.2%

7.6%

6.9%

Total

9.0%

7.8%

7.4%

CHAPTER 5

Ensuring quality
Assurance is the backbone of our organization. It is
our largest service offering today — in terms of bothrevenue and people — and it will remain our largest
service offering well into the future.
We are strong believers in our multidisciplinary model— the skills and knowledge of EY people in otherservice lines provide critical knowledge to EY audits.
Quality is a fundamental strategic objective for our
entire organization — it’s embedded as one of our six
global performance metrics for all of the partners
across all of our services. We regularly meet withregulators and standard-setters across the world
to discuss our business, emerging trends andopportunities to advance the quality of the audit
profession, and our role in it.
Sustainable Audit Quality
Our role as auditors is to serve the public interest
and provide confidence to the capital markets bydelivering high-quality audits. The Sustainable Audit
Quality (SAQ) program is EY’s commitment to
conducting globally consistent, high-quality audits
sustained over time. SAQ demonstrates EY’sdetermination to keep audit quality as our primary
focus. It is the single most important factor in ourdecision-making, and the key measure on which our
professional reputation stands. Around the world,
we now have a network of 500 Quality Enablement
Leaders — senior Assurance leaders who provide
on-the-ground quality support and guidance to our
engagement teams.

EY GLOBAL REVIEW 201811

Our investments of more than US$500m in audit
technology, including EY Canvas, our digital audit
platform, EY Helix, our analytics tool and EY Atlas,
our research platform are also crucial steps tohigh-quality audits that are agile, efficient andinsightful, while meeting both our expectations
and the evolving needs of everyone involved —businesses, regulators and investors.
The EY Audit Academy offers a consistent audittraining program for all of our people across theworld. Our people are given technology-enabledsimulations and case studies and work on them insmall groups, in the same way as they would in anaudit. The blend of learning we provide is intended toteach our auditors not just what to think, but also
how to think, since they will be developing the deep,
critical thinking skills and business acumen that are
essential to delivering high-quality audits.
Our publication, Audit quality: a globally sustainableapproach, examines the progress that has been
made under the six SAQ components: tone at the
top; strengthen people capabilities; simplification;
audit technology and digital; enablement and quality
support; and accountability. It shows that at EY weprovide an environment in which our auditors thrive.
We recruit, develop and retain the right people,
embrace innovation, encourage simplification andmonitor closely what we do.
Our aim is to lead with passion, pride and purpose,
to exceed regulatory benchmarks and produce auditsof the highest quality. Continuous improvement is
critical to the way we operate, and quality is the key
to our culture.
External inspections
The International Forum of Independent Audit
Regulators (IFIAR) comprises independent audit
regulators from 52 jurisdictions in Africa, theAmericas, Asia, Europe, the Middle East and Oceania.
IFIAR provides a forum for regulators to shareknowledge of the audit market and share thepractical experience gained from their independent
audit regulatory activity. During 2015, IFIAR
challenged the global audit networks to reduce theEY GLOBAL REVIEW 2018

percentage of listed public interest entity (PIE) auditsthat have inspection findings by at least 25% over afour-year period using the 2015 survey results as abaseline. We are making consistent progress towards
achieving the IFIAR challenge.
Internal inspections
We also perform internal inspections on our
engagements. The results for our internal inspections
for the IFIAR regulated countries in 2016 and 2017
are as follows:
Internal inspection resultsof audits in IFIAR-regulated countries
2015

2016

2017

Compliant engagements

72%

68%

73%

Compliant engagementswith immaterial findings

21%

24%

21%

Total compliant
engagements1

93%

92%

94%

Deficient engagements2

7%

8%

6%

Internal inspection results of all audits
2015

2016

2017

Compliant engagements

69%

67%

71%

Compliant engagementswith immaterial findings

22%

25%

21%

Total compliant
engagements1

91%

92%

92%

Deficient engagements2

9%

8%

8%

Such findings may result in the need for additional audit procedures ordocumentation. However, given their nature these matters would not be expected
to have a significant impact to the overall audit conclusion.
2
Findings in procedures or documentation that are material to the financial
statements, auditor’s reports or were not performed in accordance with
our policies.
1

In addition to meeting the IFIAR benchmark, we haveestablished an internal goal to increase our compliant
engagements 10% per year. Through 2017, 74% of
our geographic Regions have met this 10% target or
the IFIAR challenge percentage of reducing overall
firm significant deficiencies by 25% by 2019. The
percent of our Regions that met the 10% target in2016 was 59%.

12

Managing our risks
An essential way in which we manage our risks andserve the public interest is to work continuously to
improve the quality of all EY services. This includes
and goes well beyond the SAQ program.
Across our service lines, we invest in recruiting,training and retaining highly qualified people in theirrespective disciplines. We also invest in strong Quality
functions and Professional Practice functions in
our geographies to advise, support and enable ourpeople, and to implement our quality initiatives to aconsistently high standard around the world. These
functions advise on engagements in real-time,and operate our global quality review program,which evaluates engagements for quality as well ascompliance with EY policies and professional
standards. Findings from the quality review program
are reported to the Risk Management function and
the Global Executive.
The EY Risk Management function teams with allparts of our organization to help us identify, monitor
and manage risk and enable and support responsible
growth. We provide coordinated advice and assistanceto our engagement teams on independence, policy,
business continuity, conflicts of interest, compliance,
security, ethics and other key risk matters.
Risk Management also provides global processes andtools that support our people in evaluating, accepting
and serving the right clients with approved services,in accordance with our commitment to objectivity
and independence, and while protecting our brand.
The EY Global Code of Conduct governs the ethicaland professional behavior of all EY people. Risk
Management helps to draft, and monitors compliancewith, the Code.
Independence is also an integral part of the EY Global
Code of Conduct. We are each responsible for ourown personal independence and the independenceof EY. We are mindful of our own personal financial
interests and EY’s relationships with our clients.

EY GLOBAL REVIEW 2018

We maintain other policies and procedures to help
and support our businesses with the appropriate
level of risk mitigation and management. In thistransformative age, in which business and individuals
rely so heavily on technology and data, among ourmost important is our data protection and information
security framework. We protect information assets,
personal data and client information, through theircreation, transmission and storage, in accordancewith the requirement of applicable laws, regulations
and professional standards.

CHAPTER 6

Strengthening our brandIn today’s connected world, a strong global brandhas enormous power: it helps to protect, direct andgrow our businesses, it helps to create trust in EY,
and it builds pride in our people. It means that we
can communicate and deliver our aligned strategy
worldwide and reinforce consistent standards aroundthe world.
The most important way we build our brand isthrough our people’s daily interaction with clients —our high-performing teams providing exceptional
client service and fulfilling our purpose of Building abetter working world.

13

Back in 2013, we launched our new brand name,logo and tagline — and the reaction has been greatamong EY people and in the market. Based on our
purpose of Building a better working world for ourpeople, our clients and our communities, wedeveloped a distinctive idea around how to do that —by asking better questions that help shape dialogue.
Because by asking better questions we help solve
our clients’, and the world’s, toughest challenges
and build a better working world.
Since then we have amplified our purpose anddiverse service offerings through the Better
Questions campaign online and in print in places suchas The Economist and The Wall Street Journal,
integrated with our own digital and social channels,
as well as in major airports around the world
including Frankfurt, New York, London, Hong Kongand San Francisco. Across the digital ecosystem, weare communicating to multiple audiences our
purpose, diverse services and high-impact events
such as Innovation Realized and World Entrepreneur
Of The Year™.

We are making progress toward our ambition of
becoming the best professional services brandglobally. Our own Global Brand Survey, whichinterviews over 4,600 C-suite and business decisionmakers helps track our progress. When EY’s global
strategy, Vision 2020, launched in 2013, EY wassecond in brand favorability and improved in 2017
to tie most favorable brand among the Big Four.
In addition, our survey measured that EY has theleading brand in 12 of our 26 geographic Regions.
This sustained improvement in our brand metrics
suggests the exceptional client service our people
deliver every day and efforts to build a more
distinctive brand are making a positive impact on
how EY is perceived.
Brand favorability3
2013

2015

2017

EY global ranking#2#2

Tied #1

Best brand in
EY regions

n/a3

EY GLOBAL REVIEW 2018127(25% of(38% of 26
28 regions) regions)

EY’s Global Brand Survey results.

14#01: EY AND PSA MARINE CASE STUDY 2018

Data harbors the answer
EY is working with PSA Marine to help optimize operations
at the world’s largest transhipment hub.

The world’s port of callAt any one time, there are around 1,000 vessels
in Singapore waters – with a vessel arriving ator departing from the port of Singapore every
two to three minutes
By virtue of its strategic location on the world’s
major trade routes, Singapore is the world’s busiest
container transhipment hub and leading maritime
center. Here, container ships stop en-route to some
600 ports around the world – usually to load cargo
into other container vessels. The logistics arecomplex and demanding.
Jimmy Koh, Head of Pilotage in PSA Marine, which
provides pilotage and harbor towage to vessels
calling at Singapore, explains more: “The latest
generation of container mega-vessels can extend up
to 400 meters, the length of several football pitches.
Piloting vessels of that length and size to and fromterminals in such a busy port requires time and skill.
Any delays in vessel arrivals can have a huge ripple
effect for port operations overall, with resources likecranes and trailer trucks idling, and port workers
waiting and on hold.”

EY GLOBAL REVIEW 2018

Looking to achieve more efficient marine operations,
PSA Marine and EY asked whether data analytics
harbor the answer?

Utilizing untapped data
Predictive analytics and machine learning create
WOUTER VAN GROENESTIJN, Associate Partner,
Transaction Advisory Services, EY Singapore“We, and PSA Marine, could see there was untapped
operational data – from the distance between the pilot
boarding-ground and destination berth to the size andweight of vessels to tidal information, and many otherfactors affecting the time it takes vessels to transit
through the port."

ANDRE TOH, partner ey singapore“Using predictive analytics and machine learning, we
created an application that PSA Marine can now use
to optimize resources and determine key variables
such as when pilots and tugs should meet theincoming or outgoing vessel, and how long the vesseltransit duration will be – bringing about higher port
productivity overall.”15

Making a difference
Higher levels of efficiency and effectivenesshelps PSA Marine to differentiate itself, achieve
greater sustainability and strengthen its
competitive advantage
PSA Marine is now better positioned to provide
higher service quality to the port of Singapore, itscustomers and the tens of thousands of vessels it
serves by planning and allocating marine resources
more efficiently and effectively. These efficiencies
can then be passed onto the container and marine
terminals, benefitting their managers and workers.
Mr. Koh ends: “Leveraging this data generated fromour business operations and investing in data
analytics has enabled us to provide more effective
and efficient services to terminals, the shipping
community and the port of Singapore as a whole.”

Contact: Wouter van Groenestijn
EY ASEAN Decision Modelling & Economics Leader+65 6309 8878
wouter.v-groenestijn@sg.ey.com

Andre Toh
EY ASEAN Valuation, Modelling & Economics Leader+65 6309 8878

EY GLOBAL REVIEW 201816

#02: NSW DEPARTMENT OF FAMILY AND COMMUNITY SERVICES CASE STUDY 2018

Understanding the challengesof children in needWe helped create a new way of enabling better child care delivery.

How can data protect kids?
Providing the best chances in life is a complex and
expensive job
Around the world 275m children are exposed
to violence at home each year, and as many as
2.7 million could be living in institutional careworldwide*. Once a child with complex social,emotional and educational needs enters care,
it is becoming increasingly difficult for them toleave the system. Stretched care systems focus
on short-term needs and struggle to maximize
efficiencies from connecting all stakeholders
involved in the process. The problem is acute in
New South Wales (NSW), Australia, where almost
US$750m is spent on out-of-home care each year.

To do this, we have been working with the NSW
Department of Family and Community Services
designing a system that is pro-active and which
creates a single view of children at risk of harm.
EY was asked to help because “they had not only
the great thinking for this task, they were a partnerthat could be trusted by the whole range ofstakeholders involved,” said Maree Walk, Former
Deputy Secretary, NSW Family and Community
Services.
MAREE WALK, Former Deputy Secretary,
NSW Family and Community Services.

“They really understood the kind of problem we were
trying to solve.”

NSW wanted to shift from an approach which
focused on placing children in care, to one that
focuses on long-term outcomes – understanding thechildren’s needs and providing the best mix ofservices. This involves creating a picture of eachchild’s circumstances and needs to achieve better
life outcomes for the child.

EY GLOBAL REVIEW 201817

Connecting care to context
Creating a tool to join the dots behind essential
care delivery
The Child Protection Intelligence Portal has been
designed to underpin the ‘child centric’ service
system by connecting relevant data from partners
including police, education and health data. Everyone
responsible for protecting children at risk – including
helpline workers, carers, caseworkers – pulling
together all the relevant information they needquickly and easily, to make the best possible decision
concerning a child’s welfare.
So if, for example, a helpline worker receives a callfrom someone who believes a child at a particularaddress is unsafe, they will be able to view location,socio-economic, crime and medical data associatedwith that address to assess the level of risk for a childliving there – and take appropriate action. Better
informed risk assessments and intervention decisions
can be made based on a much broader range of data.
The information can also be viewed across a range
of devices, including mobile, which means thatcaseworkers can spend more time out working withchildren and families and less time in the office.
MARK NIXON, Client Service Partner
for the NSW Department of Family and Community Services“To develop the portal, we brought together allof our industry experience, strategic technology
alliances, offshore teams, and our strong data
analytics capability"

Contact

Enabling decision makers tomake better decisions
With more coordinated data, governments canserve society more effectively – and efficiently
In addition to the immediate benefits of having morechildren from better coordination of care services,
there are also longer term benefits for thegovernment.
“The work we’ve done with EY shows that within
10 years, we will be seeing between $220 -370m ofsavings, which can be re-invested in the system.”
The experience we gained on this project has wideranging applicability in helping to use data to address
other social challenges. It was used to develop EY’s
Citizen Intelligence Platform, which uses smart data
and analytics to bring together information frommultiple agencies and organizations, combining itwith powerful indexing and search capabilities.
This intelligent platform is supporting governments
re-allocate assets and redesign service delivery as
they improve the lives of the most vulnerable people
in society.
*UNICEF:https://www.unicef.org/media/media_96099.html
https://news.un.org/en/audio/2017/06/628582

Lucille Halloran
EY Oceania Government & Health Sciences Leader, EY Asia-Pacific

EY GLOBAL REVIEW 201818

#03: EY AND LAVIS CASE STUDY 2018

Restoring trust in the wine industry,from grape to glass
Wine fraud is a significant issue for the wine industry –but blockchain could help change that.

In vino veritas?

Picking wine by the label

Adulterated wine and fake labels cause
headaches for the wine industry

Data is captured from every stage of the winemaking process; smart labels tell the story

GIUSEPPE PERRONE, Advisory Senior Manager“People, of course, want to know that what they’reeating and drinking is what it claims to be, and thatit comes from a reputable source, but adulterated
wine, or fake labels on wine bottles, are major issues
for the industry. In Italy alone wine sellers lose €2bof revenue because of it.”That’s why LaVis, one of the biggest wine producers
in Italy has also become one of the first to sell blockchain-certified wine using EY Ops Chain.

Blockchain is a method of recording data – a digitalledger of transactions, agreements and contracts.
The technology is often associated withcryptocurrencies, but it can, and is, used for anythingthat needs to be independently recorded and verified
as having happened. This allows for faster, cheaper
collaboration, stronger information security andmore reliable data.
EY Ops Chain is a set of applications and services
designed to help organizations commercialize the useof blockchain technology across their enterprise.
Each of LaVis’ bottles now comes with a smart label– a unique QR code – that the buyer scans.

EY GLOBAL REVIEW 2018

19

This label tells the ‘story’ of the wine. Not just thehistory of LaVis and their vineyards, but a fullaccount of the wine’s DNA: when and where thegrapes were harvested, how the wine was treated –for example the quality of the sulphites – the bottlingdate, lot number and more.
This information is based on data captured during
each stage of the wine making process, using a mix ofmanual records and automated tools like drones andInternet of Things (IoT) technology, and recorded into
a blockchain.
Furthermore each time the bottle moves – between
producers, brokers, importers, wholesalers,
distributors and retailers – the status of the bottle isalso updated on the blockchain.

A nice finish
Blockchain builds brands by meeting rising demand
for authenticity and provenanceOur work with LaVis is about letting their customers
see exactly what’s gone into the wine that they’redrinking, and connect more closely with the LaVisbrand.
The benefits of blockchain, like added security andvisibility, aren’t limited to the wine industry. We’reworking with organizations from farmers to insurers,
to help them meet growing demand for authenticity
and accountability, and ultimately greater trust, inthe products and services that people are buying.

As Giuseppe says, “Blockchain in the wine industry
means we can add a layer of transparency andtraceability – captured in a decentralized, permanent,time-stamped record – to every stage of the bottle’s
journey.”

Contact:

Paul Brody
EY Global Innovation Leader – Blockchain

EY GLOBAL REVIEW 201820

Developing purpose-driven
leaders

EY GLOBAL REVIEW 201821

Recruiting, managing andretaining top talent, anddeveloping high-performing
teams and outstanding leaders
are some of the top concerns of
all types of organizations aroundthe world.
Certainly for us, our main assets are the combined skills andknowledge of our people. So everything we do for our 260,000
people across 150 countries is a vital part of building a betterworking world. We aim to give all of our people interesting,challenging work that allows them continuously to develop theirskills and knowledge. And to do so in an ethical environment thatstrongly supports their personal integrity.
We do this by:
1.

Fostering the right culture

2.

Engaging our people

3.

Creating the workforce of the future

4.

Attracting the best talent

5.

Ensuring a diverse and inclusive environment

6.

Building lifelong relationships

Our promise to each of our people is this: whenever
you join, however long you stay, the exceptional EY
experience lasts a lifetime.

CHAPTER 1

Fostering the right culture
To ensure that our culture remains healthy, promotes
the right behavior and helps to build trust in ourorganization, our profession and businesses broadly,
we track our people’s perceptions and experiences
through the EY Global People Survey. In addition,over the next year we plan to conduct a full culture
assessment of our entire global organization.
Our purpose – building a better working world
Our purpose is building a better working world.
The insights and quality services we deliver help build
trust and confidence in the capital markets and ineconomies the world over. We develop outstanding
leaders who team to deliver on our promises to all of
our stakeholders. In so doing, we play a critical rolein building a better working world for our people, for
our clients and for our communities.
Our purpose defines why we exist as an organizationand helps our people understand the significance of
their work. We believe that every audit, every tax
return, every advisory opportunity, every interaction
with a client or colleague should make the working
world better than it was before.
In this transformative age, when the world is
becoming more complex and harder to navigate
all the time, our purpose acts as our North Star –a fixed point to get our bearings from.

EY GLOBAL REVIEW 201822

Purpose is important because when you provide
people with context you empower them and engage
them, leading to greater commitment, greater
motivation and better results for clients.
Each year we celebrate our purpose through a global
recognition program called Better Begins With You.
We award US$1m across four categories to further
develop programs of teams and individuals who havefound inspiring and impactful ways to bring our
purpose to life.
It lets us recognize the most spectacular things ourpeople are doing every day to create a better working
world for clients and communities. Recipients of theaward have included those who have built leadingedge software tools for clients, developed refugeeassistance programs in Germany, and creatededucational support programs for disadvantaged
South African girls.

OUR VALUES

Our values define who we are, guiding our actions and behavior.
They influence the way we work with each other, the way we serve
our clients and how we engage with our communities. 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• Developing a global mindset
Developing a global mindset
Our clients need integrated, cross-border service andthe same high quality wherever they do businessaround the world. Our people want to build careers inan organization that’s global in its outlook andinclusive in its approach.

EY GLOBAL REVIEW 2018

CHAPTER 2

Engaging our people
Our people are a strategic asset
At EY, we think of “engagement” as a combinationof factors – pride, advocacy, commitment andsatisfaction. We combine these into an “engagement
index” that is central to our biennial Global People
Survey (GPS) – one of our most importantmanagement measurement tools, which we use
across all levels of our organization. We have been
conducting these surveys of all of our people globally
since 2005, and each year we use sophisticated data
analysis to understand the link between our people’s
answers and how our business performs.
Data analysis on the results of EY’s GPS
demonstrates that higher engagement leads tobetter business results. Our most engaged teams
significantly outperform less engaged ones. They
have 8 percentage points higher retention of people,
4 percentage points higher revenue growth perperson and 8 percentage points higher gross margin– they retain people longer and their top- andbottom-line performance is better.

23

For the past several years, our engagement index
has been at 73%, which is good – and at historicalhighs – but every year we aim to improve. We
prioritize action items to drive positive change,such as motivating and inspiring our people throughbetter conversations, career progression andenabling everyone to be part of a counselling family
to increase satisfaction and belonging.
Global People Survey results
FY16

FY17

FY18

Total survey
participants

178,000

193,000

203,000

Participants as% of headcount

81%

82%

82%

Engagement
Index score

73%

73%

73%

Pride in EY score*

84%

84%

84%

* “I am proud to work for EY” has remained constant at 84% over the past three
years. This is a key driver of engagement, recruitment referrals and retention.

CHAPTER 3

Creating the workforceof the future
Organizations today – EY clients as well as us – areseeing some of the biggest changes the workplace
has ever seen, brought about by advances in machine
intelligence and evolving attitudes to work.
To succeed today, organizations need to adapt tothese changes; we have a responsibility to equip our
people with the right tools and skills, and anticipate
the skills they will need in the future.
It’s an issue at the top of the agenda for CEOs andboard members everywhere, and an important areaof focus for us, too – as our continued successdepends not only on having people with the right mix
of skills today, but also in the future.
Our strategic talent planning program proactively
considers the impacts of disruption on EY and
ensures that we continue to attract, develop
and retain the talent we need. We have a deep
commitment to enhancing the growth anddevelopment of current EY people, as well as hiring
new people with the right skills for the future.
Today, learning must happen at a higher pacethan change. Workplace learning is now a key
differentiator between businesses that thrive andthose that don’t. This year, we provided our people
with 13 million hours of formal education and spent
more than US$500m on training, complemented bycoaching and providing our people with the rightwork experiences. We are increasingly investing in
online learning, and this year provided more than
2,500 course across a broad range of business

EY GLOBAL REVIEW 201824

topics through leading online learning platform.
Formal learning is the baseline complemented, andsignificantly enhanced by coaching, mentoring andensuring our people get the right work experiences.
Formal learning
FY16

FY17

FY18

Learning hours
delivered (million)

12

12

13

Learning hours perperson54

51

51

Total investment inlearning (million)

US$500

US$500

US$500We are always looking at innovative learning ideas,
and this year, we’ve rolled out a new program – EY
Badges – where our people can earn digitalcredentials in skills that differentiate them in themarket, such as artificial intelligence, blockchain,innovation and analytics.
Badges are earned – which can be displayed internallyand externally, and shared on social media profiles– by completing relevant learning from various
providers, gaining experience and sharing theirknowledge with others. The badges come in four
categories: bronze, silver, gold and platinum – andthe standards for getting them are consistent aroundthe world.
Badges can help match our people with engagements
and projects based on verified skills – which, in turn,will enable our teams to provide better results for
EY clients. And by building in incentives to develop
the skills of the future, we’re creating a workforce
that’s ready to handle whatever may come.
Career progression
We provide the support, experiences andopportunities for people to build their career at
EY and beyond. In FY18, we were proud to promote
33,888 people and 747 people were promoted topartner across our member firms.
To further support EY people, this year we also
launched LEAD, a new global approach to career,

EY GLOBAL REVIEW 2018

development and performance, with future-focusedcareer conversations, regular and useful feedback
and ongoing insight into their performance.
LEAD provides greater transparency and redirects
the use of time, so our people can spend more time
having meaningful conversations that shape their
Promotions
FY16

FY17

FY18

Total promotions

32,192

31,95033,888Promotions topartner

714

669

747

% of women among
new partners

29

30

29

% of promoted
partners fromemerging markets

35

36

32

futures. It will enable our people to gain the skills,
insights and confidence they need to be agile,
dynamic leaders who ask better questions, growour businesses and our clients’ businesses, andbuild a better working world.
Even in its first year, LEAD is having an impact.
People are getting more feedback – 1.7 million
pieces across EY, which is three times the amountof feedback they had the year before. And they are
getting more timely feedback. Instead of having to
wait until the end of the year, feedback discussions
are spread throughout the year. We intend to build
off our early success, by focusing on more relevant
feedback and strategic career discussions in the
coming year.
Tapping into the gig economy
We continue to develop our workforce by moving
toward one that provides us with the flexibility weneed to meet our needs and our clients’ needs
through a broader range of people. EY is tapping
into the “gig” economy – where people who areseeking exciting projects and who possess specialty
skills want to work with EY on a freelance basis.

25

GigNow is the global solution that is propelling EY
forward into the future of work by building a more
flexible workforce model that is able to quickly tap
into the best talent around the world, when andwhere we need it. This agile mix of full-time
employees and contractors will ensure EY remains
adaptable and on the leading edge of innovation. It
offers EY direct access to the world’s top contractor
talent at a lower cost, faster rate and it gives us theability to efficiently scale our talent base in response
to capacity, skills and project needs.
Creating a flexible environment with EY@work
EY@Work is the evolution of our workplace –in terms of physical space, technology and ways
of working. It promotes a flexible environment thatenables our people to deliver exceptional client
service, individually and through high-performing
teams, and helps to attract and retain the highly
talented professionals. It provides energizing
and efficient workspaces supported by current
technology that enables our people to work easily
both in and out of the office.
EY is a long-time proponent of flexible work
environments that vary from working remotely oroutside typical business hours to formal flexible
work arrangements involving reduced or seasonalschedules. As the gig economy grows, it’s even more
important to examine what flexibility means for ourpeople and organization.
We’ve also introduced a suite of new technology
tools, such as telepresence and Skype for Business,to help our people work simpler, faster and smarter.
These tools help our teams collaborate globally,
and they improve efficiency and productivity, giving
our people more freedom to work how and when
they want.

EY GLOBAL REVIEW 2018

CHAPTER 4

Attracting Talent
In order to help clients, it’s vital that we attract thebest talent to EY.
Last year about 2 million people applied to work at
EY member firms around the world, demonstrating
how attractive an employer we are on a global basis.
We hired almost 65,000 people, which works out tohiring a person every eight minutes around theclock, 365 days a year.
Global recruits and applicants
FY16

Global job
applicantsGlobalpermanent hires

FY17

FY18

1,803,544 1,695,789 1,831,174
55,02359,04062,405We also monitor our “attractiveness” through arange of external benchmarks. In 2017, we wereonce again ranked the most attractive professionalservices employer among business students globallyby Universum, and came in fourth overall; behind
Google, Apple and Goldman Sachs. For the firsttime, Universum also named us among the top 50
most attractive employers for engineering and
IT students, at number 49, demonstrating the newskills that we are recruiting and the changing natureof services we offer clients.

26

Universum World’s Most Attractive Employer
ranking – business students
2016

2017

2018

Among Big Four*

1

1

1

Overall3

44*The Big Four professional services organizations are Deloitte, EY, KPMG
and PwC.

Universum World’s Most Attractive Employer
ranking – science and engineering students
2016

2017

2018

Among Big Four*

3

2

2

Overall

52

49

37

*The Big Four professional services organizations are Deloitte, EY, KPMG
and PwC.

In 2017, the Great Place To Work Institute once
again named EY one of the 25 Best Multinational
Workplaces for the third straight year – and the only
one of the Big Four to make the list.
Great Places To Work Institute –25 Best Multinational Workplaces ranking*
2015

2016

2017

23

21

17

Overall* Survey based on feedback from our own people.

Typically, about one-fifth of our people leave us
each year; rates vary across services andgeographies, of course. While this may seem highby the standards of other sectors, in professional
services, this level of turnover is normal, reflecting
the high demand for our people’s skills, especiallyin stronger economic times. We monitor this rate
to make sure that, for example, we are retaining ourhighest performers at a higher-than-average rate,
and that we are retaining women and men equally.
Attrition rate by gender
FY16

FY17

FY18

Women

18.7%

18.8%

21.2%

Men

19.4%

18.7%

20.9%

Overall

19.00%

20.40%

21.01%EY GLOBAL REVIEW 2018

CHAPTER 5

Ensuring a diverse and inclusive
environment
At EY, we believe that only the highest-performing
teams that maximize the power of diverse opinions,perspectives and backgrounds will succeed. These
teams are both diverse, and inclusive.
Our internal research bears this out – we analyzed
22,000 EY audit engagements and found thatteams with a balance of gender outperformed, inboth financial performance and quality, teams thatwere less balanced.
Diversity is about differences. Each of us is different,
and at EY, we value and respect that. We think
about differences broadly; they include, but aren’t
limited to background, education, gender, ethnicity,
nationality, age, working and thinking styles,
religious background, sexual orientation, ability andtechnical skills. Inclusiveness is about leveraging
differences to achieve better business results.
It’s about creating an environment where all of ourpeople feel, and are, valued. An environment where
they are able to bring their differences to work eachday, and where they contribute their personal bestin every encounter.
Diversity and inclusiveness (D&I) enables us toinnovate, modernize our workplaces and be mostagile to stay ahead of the external forces that shape
our businesses. To achieve our goal, we embed theprinciples of D&I in all of our business processes.
For example, we are building the skills of all our
people to enable them to team and lead inclusively,
and in recruitment processes, we actively look forcandidates with a global mindset.
27After launching inclusion and nondiscrimination
policies in some regions, in 2018, we launched
the new EY Inclusion and nondiscrimination global
policy to all of our people. The policy clarifies
what is meant by discrimination, intimidation andharassment, and will help us continue to shape our
inclusive culture, build highest-performing teams
and enable equitable and respectful treatment of
all our people.
The Global Diversity and Inclusiveness Steering
Committee (GDISC) is a critical component toadvancing the D&I agenda throughout EY.
Comprising senior leaders from across our service
lines, areas and regions, each member is committed
to using their experience, knowledge of theorganization and their influence to enhance EY’s
inclusive culture. GDISC members are instrumental
in raising awareness of important D&I topics such as
the power of belonging, equitable sponsorship,
insider-outsider dynamics and bias, to name a few.

Their collective efforts contribute to EY being
recognized as a D&I leader in many of the markets
in which we operate.
At EY, we’re committed to fairness and equality andthe advancement of all under-represented groups.
An important part of our diversity and inclusivenessagenda is related to the advancement of women,
and on a global basis gender balance is the moststraightforward to measure and report. Currently,
48% of our people overall are women. But we havemore work to do to improve the percentage ofwomen in leadership positions. Currently, 20% of
our member firm partners are women, and 29%of newly promoted partners this year are women.
Among leadership groups, 26% of our Global
Executive members; 33% of our Global GovernanceCouncil; and 22% of our Global Practice Group are
women. Among the leaders of our 301 largest
accounts, 12% are women.

Partners/Principals/Executive Directors/Directors by gender
FY16

FY17

FY18

Total

%
Women/men

Total%
Women/men

Total%
Women/men

Partners andPrincipals

11,562

19.8%/80.2%

11,484

19.7%/80.3%

11,87020.4%/79.6%

Partners, Principals,
Exec. Dirs., Directors

17,55823.4%/76.6%

17,41023.3%/76.7%

18,093

24.0%/76.0%

Total people

230,800

47.5%/52.5%

247/570

47.5%/52.5%

261,559

47.6%/52.4%

Leadership groups by gender
FY16

FY17

FY18

Total

%
Women/men

Total%
Women/men

Total%
Women/men

Global Executive

18

28%/72%

18

22%/78%19

26%/74%Global Practice Group

115

22%/78%116

22%/78%122

22%/78%Global GovernanceCouncil42

31%/69%39

36%/64%

3933%/67%

Global Client Service
Partners*285

7%/93%

287

10%/90%301

12%/88%* Lead client servers on our largest global clients.

EY GLOBAL REVIEW 201828

To improve the number of women in theseleadership groups, we are taking a number ofimportant steps. First, around the world, we havenumerous mentoring and sponsorship programs to
support high-potential women in more junior ranks.
We also rigorously review candidate pools to ensurethat potential candidates for promotion anddirect admit partner are gender diverse. Women’s
advancement and leadership are central to businessperformance and economic prosperity. While we
acknowledge that we have far to go, at EY, we areworking toward an environment in which men andwomen have an equal opportunity to participate
and advance in the workplace.

a better working world long after leaving, as they
continue to do great things in business, as
entrepreneurs, in government, in academia and intheir communities. We are proud to be one of thegreat training grounds for business and financial
talent globally.
Strong relationships are key to our business –they underpin our high-performing teams delivering
exceptional client service. They drive ourcommitment to build a better working world. Our
alumni are some of the most important contacts
we have. By nurturing alumni relationships, wecreate more opportunities to develop our people,
grow our business, and deliver on our purpose.
One way we do this is through the EY Alumni
network, an on- and off-line community that is
active in more than 70 countries and which helps
connect all EY people, past and present, to more
opportunities, more resources and more of thepeople that they need to know for the future. It’s amutually beneficial relationship, allowing alumni tocontinue to build on the legacy they created at EY
and helping EY to continue to deliver on our promise
to build a better working world.

CHAPTER 6

Building lifelong relationships
We make a promise to our people – whenever you
join, however long you stay, the exceptional EY
experience lasts a lifetime.
However long someone stays with us, we don’t wantleaving EY to be the end of our relationship. Our
1 million alumni around the world continue to build

EY GLOBAL REVIEW 201829

Driving sustainable andinclusive growth
At EY, we strongly believe that the things we do every day go a long
way toward fulfilling our purpose of building a better working world.

EY GLOBAL REVIEW 201830

EY people also make positive
contributions to the public
interest by playing importantroles across business andthrough their communities
as members of professional
associations, of trainers, byworking with standard settersand participating on boards.
An important part of the answer lies indemonstrating that business can be an importantpart of the solution by driving sustainable andinclusive economic growth, to which everyone cancontribute and from which everyone can benefit.

We’re using our influence to create positive change across thebusiness world in a number of ways:
1.

Amplifying our social impact through our new corporate
responsibility platform, EY Ripples

2.

Building trust through more transparent corporate reporting3.

Supporting entrepreneurs: who are significant drivers ofsocial and economic impact?

4.

Operating responsibly across our organization

We believe business can and must do more to foster
the kind of economic growth that benefits everyone,
not just a few. More than doing business responsibly,that means applying the knowledge, skills andexperience we use in our business every day tohelp address society’s toughest challenges.

CHAPTER 1

Amplifying our social impact
through our new corporate
responsibility platform,
EY Ripples
This year, EY invested US$112 million in projects
dedicated to strengthening our communities andour people contributed over 739,000 hours tohundreds of initiatives across the world. In addition,
EY partners and people make significant personal
donations to a variety of community initiatives.

To further amplify our social impact, we are bringing greater
focus, scale and cohesion to our efforts by better aligning themwith the knowledge, skills and experience of our people. We will
launch a new global initiative in FY19, EY Ripples, to focus on
two areas of social impact:• Working with impact entrepreneurs to help scale businesses that
purposefully and successfully target progress toward the United
Nations Sustainable Development Goals• Helping young people to develop the mindsets and transferable

skills they need most to find and sustain meaningful work in thistransformative age

EY GLOBAL REVIEW 201831

Impact entrepreneurs build businesses that tackle
the causes and symptoms of social inequality
and empower people to change their lives. Theirenterprises create an outsized impact on the lives
and livelihoods of people in their communities byaccelerating creation of quality jobs; providing
avenues for women, young people and other
underrepresented groups to actively participate in
the economy; advancing equitable access to vital
goods and services; and/or by innovating products
and services that help protect and restore theenvironment.

Community investment

By making EY knowledge, skills and experienceavailable to these businesses on a not-for-profit
basis, we help improve their resilience, productivity
and capacity for sustainable growth.
EY has a long and proud history of supporting
young people by creating pathways to educationand employment. But today’s transformative
age poses challenges that access to education
alone can’t solve. We know this because global
youth unemployment figures remain unchanged
over recent years, despite more young people
successfully completing secondary and tertiary
education. When many school children today will
end up in jobs that don’t even exist yet – and whenmany of the jobs that do may disappear becauseof automation – we need to think differently.

FY16

FY17

FY18

Hours invested incommunity initiatives
worldwide by EY
people (000’s)

700

700

739

Value of time
contributions (US$m)

44

47

51

Cash investments(US$m)

57

58

61

Total (US$m)

101

105

112

Our focus areas let us use our distinctive knowledge,
skills and experience and, our existing social impact
initiatives, to tackle some of the biggest challenges
affecting our world. They allow us to create apowerful ripple effect, not only on our people
and our business, but also on communities andeconomies – a ripple that brings to life how
the knowledge, skills and experience we use, andthe actions we take, can build a better working
world for all.

This is why we’re sharpening the focus of our
support for the next generation, placing greater
emphasis on the development of mindsets andtransferable skills such as initiative and self-reliance,
creativity and innovation, and critical reasoning andcomplex problem-solving.

EY GLOBAL REVIEW 201832

CHAPTER 2

CHAPTER 3

Building trust through moretransparent corporate reporting

Supporting entrepreneurs:
who are significant drivers ofsocial and economic impact

In recent years, there has been much conversation
about corporate reporting and whether current
methods are still fit for purpose.
Business, the media, governments and regulators,
and academics have all been involved. The growing
consensus is that if businesses want to build trustthen they must tell a more complete story of how
they are creating value for all of their stakeholders.
This story must go beyond presenting a narrow
range of financial metrics to encompassing abroader range of both financial and nonfinancial
metrics that provide a more transparent view of anorganization’s purpose, strategy and execution.
Different groups have suggested different principles
and practices, and EY has been involved in several
efforts, including with the International Integrated
Reporting Council and the United Nations Global
Compact. For the past year, we’ve been working
on an initiative called The Embankment Projectfor Inclusive Capitalism, in an effort to produce
a common framework to measure foundational
elements of long-term value creation. This will help
companies better demonstrate how they create
value for a full range of stakeholders, including
employees, supply chains, communities and society
at large – promoting more inclusive and sustainablegrowth.

EY GLOBAL REVIEW 2018

Entrepreneurs make a difference. They not only
have great ideas, but also the drive to make thema reality. They use their fresh thinking and hard
work to create positive social change – bringing
new concepts and products to market, and creatingjobs and wealth.
We have long recognized the potential ofentrepreneurs. For more than three decades, wehave been working with entrepreneurs, adapting
our experience, industry capabilities and resources
to work for entrepreneurial, fast-growth companies.
We work with a range of businesses, from thosereceiving their first venture funding through to large
mid-cap companies, whose value may be measured
in billions of dollars. Our commitment toentrepreneurial companies, in both emerging anddeveloped economies around the world, helps
ensure that we’re working with more of tomorrow’s
global leaders, today.
EY started the Entrepreneur Of The Year™ Awards
program to celebrate successful entrepreneurs, sothey could share their stories, inspire others andreceive the recognition they deserve. Our firstprogram took place in 1986 in Milwaukee,
Wisconsin, USA. Today, the program spans morethan 140 cities in more than 50 countries, which
together represent more than 90% of the global
economy.

33

The 18th EY World Entrepreneur Of The Year™,
which ran from 13-17 June 2018, saw 56
Entrepreneur Of The Year finalists descend on
Monaco. We also convened some of the world’s
most inspiring entrepreneurs, game changers andgovernment leaders to discuss the transformative
age we’re living in. There were sessions on digital
disruption, industry convergence and geopoliticaluncertainty. This year’s winner was Rubens
Menin from Brazil who grew his company, MRVEngenharia, into Latin America’s largest residential
real estate developer out of a desire to provide
affordable housing for families struggling to taketheir first step on the property ladder.
Spanning 65 countries and 430 participants, theEY Entrepreneurial Winning Women™ program
identifies high-potential women entrepreneurs
whose businesses show real potential to scale
and provides them with ongoing support to help
accelerate their growth. Now in its 11th year,
the program targets savvy women founders who
have built profitable small companies but have notyet found the essential tools needed to expand
sustainably. EY gives the founders ongoing accessto our vast resources, rich networks and know-how,
helping to strengthen their abilities to becomemarket leaders. At the same time, the program
creates a vibrant global community of successful
women entrepreneurs and inspiring peer rolemodels.
Recognizing the ever-growing importance ofentrepreneurial startup companies in driving
innovation, EY has established a global digital
resource known as EY Velocity. It’s designed to help
these companies connect with peers, establishedentrepreneurs and EY professionals; focus on
relevant hot topics and the 7 Drivers of Growth;and act to identify key actions to be addressed. In
FY19, the next release of EY Velocity will also help
these companies to identify much-needed sourcesof capital.

EY GLOBAL REVIEW 2018

CHAPTER 4

Operating responsibly across
our organization
To credibly engage others in driving sustainable,
inclusive growth, we must lead by example.
We want to embed principles of responsibility,
sustainability and inclusive growth more deeply ineverything we do, and improve our ability to showthat we meet the highest standards of ethicalbusiness. This includes galvanizing further effort
across our global organization to minimize thenegative impacts of EY operations on theenvironment.
We have clear global polices ranging that include
our Global Code of Conduct, our Supplier Code of
Conduct and our Data Privacy Policy that set out
how we operate responsibly. We are a signatory to
the UN Global Compact, and we are guided by ourvalues and our purpose.
Minimizing our environmental impact
Individual Regions have already made far-reachingcommitments to environmental sustainability – up
to and including becoming carbon and water neutral– and are taking action on specific issues such as
plastics pollution as well. In the UK, for example,
we are switching all offices away from disposable
cups and catering consumables, which will reduce
consumption of single-use plastic items by nearly
8 million pieces and almost 60 tons a year.

34

We’ve also made positive strides in using technology– especially high-end video conferencing to reduce
our air miles and on-demand printing to dramaticallyreduce paper waste – and this has helped reduce ourgreenhouse gas emissions from 5.23 tons per person
to 4.89 tons this past year. But we recognize we needto do much more, particularly to reduce businesstravel, which makes up around 80% of our emissions.
Our priority now is to establish a global frameworkthat helps accelerate leading practices acrossthe whole of our global organization. That’s
why, in FY19, we will implement a new Global
Environmental Statement to help drive further
action to improve environmental performanceacross our businesses and supply chain.
It will also stress the power every EY professional
has to drive positive change. Everyday choices
we each make about things like when and how wetravel, and how we manage our waste, can feel small
and insignificant. But when more than 260,000 of
our people make the same smart choices, the ripple
effect can create a huge difference.
Greenhouse gas emissions
metric tonnes CO2 (estimated)*
FY15

FY16

FY17

Total emissions

986,000

Emissions per
employee (FTE)

5.15

5.23

4.89

Scope 1/2 GHG
protocol

204,000

209,000

189,000

Scope 3 GHG
protocol782,000

976,000

1,001,000

Driving sustainable growth through our
supply chain
Our commitment to promoting principles ofinclusiveness, sustainability and responsibility
extends beyond our own organization. It also
includes our continued efforts to promote highbusiness standards within our supply chain, andto maintain and grow a diverse supplier base thatreflects the markets, clients and communities weserve.
Just as the EY Global Code of Conduct sets out thestandards expected of every EY person, the Global
Supplier Code of Conduct does the same for our
suppliers. We view their performance as an integral
part of the EY value chain and expect all suppliers
to meet high legal, ethical, environmental andemployment-related standards.
Identifying, developing and doing business withdiverse suppliers is a key component of our strategic
sourcing and procurement activities. Through our
D&I procurement initiative, we actively encourage
small and minority-owned businesses to become
registered suppliers and support them to achieve
their full potential. EY has committed to sourcing
US$100 million of products and services fromwomen-owned businesses by 2020.

1,185,000 1,190,000* The carbon footprint of our global organization is calculated in line with the EY
global carbon footprint methodology. This is based on the Greenhouse Gas (GHG)
Protocol developed by the Word Resources Institute (WRI) and World BusinessCouncil for Sustainable Development (WBCSD), using its “location-based” approach to reporting.Emissions calculations use 2017 conversion factors publishedby the Department for Business, Energy & Industrial Strategy in the UJ, or locallypublished factors where appropriate. The conversion factors used to calculate
emissions from air travel include the impact of “radiative forcing.”
For further details, please refer to https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2017

EY GLOBAL REVIEW 201835

#04: SANERGY CASE STUDY 2018

Turning waste into opportunity
One solution to tackling poor sanitation.

How can one toilet benefit
hundreds of people?
Taking an entrepreneurial approach to tacklingpoor sanitation
Sanergy is a great example of a small and growing
business purposefully driving progress toward theUnited Nations Sustainable Development Goals(SDGs).
Committed to advancing equitable access toimproved sanitation (SDG 6), the company makes
and sells low-cost, high-quality toilets for use by
residents of Nairobi’s informal settlements (slums).
Here, open sewers, poor sanitation and lack of cleanwater are some of the biggest causes of death inchildren under the age of five.

EY GLOBAL REVIEW 2018

As well as working with landlords who provide thetoilets as a value-add service to their tenants,
Sanergy also works with entrepreneurs who operate
their own toilets as small businesses, charging fellow
residents on a pay-per-use basis.
With toilets designed to collect waste into sealed
plastic containers, Sanergy staff collect thesecontainers and take them to a processing site wherethat waste is turned into organic fertilizer, insectbased animal feed and renewable energy.
In addition to the toilets and the waste collection
service, Sanergy also provides franchisees withtraining, access to financing, and ongoing operationaland marketing support.
Today there are hundreds of Sanergy toilets across
Nairobi, serving over 30,000 people every day, andhelping to convert more than 8,000 tons of waste
into useful by-products.

36

Taking the business tothe next level

How can infrastructure keep up
with urbanization?

Joining forces with Nairobi’s city leaders toscale-up the solution

Bringing new ways of thinking to long-standing
challenges

Having proven their approach, Sanergy now wants
to partner with Nairobi’s city leaders to take theirbusiness to the next step.

“But the infrastructure on the ground isn’t always
keeping up with this expansion. This means there’s areally big opportunity for what’s called ‘non-sewered
sanitation’, which is what Sanergy is focused on.”

They asked for our help to develop a new financial
model: one that details the cost-per-customer of
their solutions, and the public subsidy required toscale-up and operate the business in a public/private
partnership, which Sanergy will present to Nairobi’scity leaders.

“We’re proud that we can use the knowledge, skills
and experience of our people to support innovative
companies like Sanergy. The ripple effect of helping
them grow is providing life-saving access to safe,
dignified and affordable sanitation for hundreds ofthousands of people.”
As well as helping individual impact entrepreneurs
improve their businesses’ resilience, productivity
and capacity for sustainable growth, we are alsocollaborating with other organizations to translate
what we learn from these projects into broader
insights.

JON SHEPARD, Director, EY“Sixty-percent of the world’s population will live inurban areas by 2050.”

Contact:

From providing guidance on improving the growthpotential of businesses advancing equitable access tosafe water and non-sewered sanitation, to tacklingthe challenge of last-mile distribution, we aim to help
accelerate the growth of entire sectors.

Jon Shepard
EY Global Enterprise Growth Services Director

EY GLOBAL REVIEW 201837

Facts and figures

EY GLOBAL REVIEW 201838

In recent years there has beenmuch conversation
about corporate reporting andwhether current methods
are still fit for purpose.
Business, the media,
governments and regulators,
and academics have all been
involved. The growing consensus
is that if businesses want tobuild trust then they must tella more complete story of how
they are creating value for allof their stakeholders. This story
must go beyond presenting
a narrow range of financial
metrics to encompassing abroader range of both financial
and nonfinancial metrics thatprovide a more transparent viewof an organization’s purpose,
objectives and plans.
Different groups have suggested different principles
and practices, and EY has been involved in several
efforts, including with the International Integrated
Reporting Council and the United Nations Global
Compact. For the past year, we’ve been working on an
initiative called The Embankment Project for Inclusive
Capitalism, in an effort to produce a common

EY GLOBAL REVIEW 2018

framework to measure foundational elements oflong-term value creation. This will help companies
better demonstrate how they create value for a fullrange of stakeholders, including employees, supply
chains, communities and society at large – promoting
more inclusive and sustainable growth.
This year at EY, we are moving toward
communicating more information regarding
our important stakeholders – our people, ourengagement, involvement in communities and oureffect on environment. We are including a broader
range of financial and nonfinancial metrics in addition
to the traditional financial ones in this global review,
and are moving to a three-year reporting time
horizon to better show trends.

We look at major strategic assets including our people, ourrelationships with clients and other stakeholders, our brand andour financial strength. We organize these according to the fiveelements of our strategic ambition:• To be the most favored employer• To be #1 or #2 in market share in our chosen services• To have leading growth and competitive earnings• To have the best brand• To have positive and strong relationships with our stakeholders

This is a journey that we’re just starting on, so wewelcome feedback on our approach.

39

Leading employer
Learn about our people numbers, employer attractiveness,
people engagement and more.

Global headcountPeople by Service Line – FY18
Total: 261,559 | 5.7% on FY17↓

 Assurance Advisory
 Tax
 TAS
 Practice support

Practice support: 44,662
Assurance: 88,849
TAS: 15,246

Tax: 53,008

Advisory: 59,794

People by Area – FY18
Global Delivery Services –Enablement: 7,397

Total: 261,559 | 5.7% on FY17↓

 Americas
 Asia-Pacific EMEIA JapanGlobal Delivery Services –Client Service: 18,793

 Global Delivery Services –Client Service

Americas: 70,341

Japan: 7,824

 Global Delivery Services –Enablement
 Executive Services
and Functions

EMEIA: 106,775

EY GLOBAL REVIEW 2018

Asia-Pacific: 43,722

40

People by service line - three year comparison*
FY15 vs FY16

FY16

FY15 vs FY16

FY17

FY18 vs FY17FY18Assurance

7.5%

82,555

4.9%

86,562

2.6%

88,849Advisory

15.6%

48,104

11.3%

53,525

11.7%

59,794Tax

7.0%

46,216

6.9%

49,386

7.3%

53,008TAS

14.1%

12,236

11.6%

13,654

11.7%

15,246

Practice Support

6.5%

41,6896.6%

44,4430.5%

44,662

Total

9.2%

230,800

7.3%

247,570

20.40%

261,559*Headcount numbers reflect personnel at the end of each financial year

People by area - three year comparison
FY16 vs FY15

FY16

FY15 vs FY16

FY17

FY18 vs FY17FY18

Americas6.0%

65,691

2.1%

67,075

4.9%

70,341Asia-Pacific

11.4%

38,986

7.5%

41,8984.4%

43,722

EMEIA

7.7%

93,943

7.3%

100,792

5.9%

106,775

Japan

0.3%

7,682

2.6%

7,880

-0.7%

7,824

Global Delivery
Services – Client
Service**

32.9%

12,38231.2%

16,248

15.7%

18,793Global Delivery
Services –Enablement

20.2%

5,734

25.6%

7,200

2.7%

7,397

Executive
services andfunctions^

4.2%

6,382

1.9%

6,477

3.6%

6,707

Total

9.2%

230,800

7.3%

247,5705.7%

261,559*Headcount numbers reflect personnel at the end of each financial year**Global Delivery Services (GDS) is the EY internal shared services organization, consisting of legal entities ultimately owned by a number of EY member firms. GDS entities
support EY member firms across the world by providing support capabilities to their client-serving account teams as well as internal enablement support services.
^Includes such teams as: Global and Area management; Technology; Talent; Finance; Brand, Marketing and Communications; Knowledge; Markets and risk management.
See site for reference: https://www.ey.com/en_gl/global-review/2018/facts-and-figures

EY GLOBAL REVIEW 201841

Employer attractiveness
Universum World’s Most Attractive Employer ranking – business students
2016

2017

2018

Among Big Four*

1

1

1

Overall3

4

4*The Big Four professional services organizations are Deloitte, EY, KPMG and PwC.

Universum World’s Most Attractive Employer ranking – science/engineering students
2016

2017

2018

Among Big Four*

3

2

2

Overall

52

49

37

*The Big Four professional services organizations are Deloitte, EY, KPMG and PwC.

Great Places To Work Institute – 25 Best Multinational Workplaces ranking*
2015

2016

2017

23

21

17

FY16

FY17

FY18

1,803,544

1,695,789

1,831,174

55,02359,04062,405

FY16

FY17

FY18

Women

18.7%

18.8%

21.2%

Men

19.4%

18.7%

20.9%

Overall

19.00%

20.40%

21.01%Overall*Survey based on feedback from our own people.

Global recruits and applicantsGlobal job applicantsGlobal hiring — client service

Attrition
Attrition rate – overall and by gender

EY GLOBAL REVIEW 201842

People engagement
Global People Survey results
FY16

FY17

FY18

178,000

193,000

203,000

Participants as % of headcount

81%

82%

82%

Engagement Index score

73%

73%

73%

Pride in EY score*

84%

84%

84%

Total survey participants* ”I am proud to work for EY" has remained constant at 84% over the past three years. This is a key driver of engagement, recruitment referrals and retention.

Career progression
Promotions
FY16

FY17

FY18

32,192

31,95033,888Promotions to partner

714

669

747

% of women among new partners

29

30

29

% of promoted partners fromemerging markets

35

36

32

FY16

FY17

FY18

Learning hours delivered

12m

12m

13m

Learning hours per person

54

51

51

Total investment in training(million)

US$500

US$500

US$500Total promotions

Developing skills and capabilities
Formal learning

Diversity and inclusiveness
Partners/Principals/Executive Directors/Directors by gender
FY16

FY17

FY18

Total

%
Women/men

Total%
Women/men

Total%
Women/men

Partners andPrincipals

11,562

19.8%/80.2%

11,484

19.7%/80.3%

11,87020.4%/79.6%

Partners, Principals,
Executive Directors,
Directors

17,55823.4%/76.6%

17,41023.3%/76.7%

18,093

24.0%/76.0%

Total people

230,800

47.5%/52.5%

247/570

47.5%/52.5%

261,559

47.6%/52.4%

EY GLOBAL REVIEW 201843

Global headcount
Leadership groups by gender
FY16

FY17

FY18

Total

%
Women/men

Total%
Women/men

Total%
Women/men

Global Executive

18

28%/72%

18

22%/78%19

26%/74%Global Practice Group

115

22%/78%116

22%/78%122

22%/78%Global GovernanceCouncil42

31%/69%39

36%/64%

3933%/67%

Global Client Service
Partners*285

7%/93%

287

10%/90%301

12%/88%* Lead client servers on our largest global clients.

Leading growth
Our financial performance and service quality.

Revenues
Revenue by Service Line (US$b) – FY18
Total revenue: (US$b) 34.8b | 7.4% on FY17↓

TAS: $3.6b

 Assurance Advisory
 Tax
 TAS

Assurance: $12.6b
Tax: $9b

Advisory: $9.6b

EY GLOBAL REVIEW 201844

Revenue by Area (US$b) – FY18
Total revenue: (US$b) 34.8b | 7.4% on FY17

Japan: $1.2b↓

 Americas
 Asia-Pacific EMEIA JapanAmericas: $15.6b
EMEIA: $13.9b

Five-year CAGR
8.5%

Asia-Pacific: $4.1b

Revenue by Service Line (US$b)* — three-year comparison
FY16 vs FY15

FY16

FY15 vs FY16

FY17

FY18 vs FY17FY18Assurance

4.8%

11.3

4.0%

11.6

4.4%

12.6

Advisory

13.1%

7.8

10.4%

8.5

10.1%

9.6

Tax

9.6%

7.8

7.9%

8.2

6.4%

9.0

TAS

14.2%

2.7

15.5%

3.1

13.9%

3.6

Total

9.0%

29.6

7.8%

31.4

7.4%

34.8

* Revenues include expenses billed to clients. For purposes of reporting combined global revenues, revenues between member firms have been eliminated.

Revenue by Area (US$b)* — three-year comparison
FY16 vs FY15

FY16

FY15 vs FY16

FY17

FY18 vs FY17FY18

Americas

9.7%

13.6

7.0%

14.5

7.3%

15.6

Asia-Pacific

12.5%

3.2

11.3%

3.6

10.5%

4.1

EMEIA

7.5%

11.7

8.6%

12.2

6.9%

13.9

Japan

6.4%

1.1

-2.0%

1.1

3.2%

1.2

Total

9.0%

29.6

7.8%

31.4

7.4%

34.8

* Revenues include expenses billed to clients. For purposes of reporting combined global revenues, revenues between member firms have been eliminated.

Revenue growth by market type (local currency)
FY16

FY17

FY18

Emerging markets

12.8%

8.9%

10.0%

Developed markets

8.2%

7.6%

6.9%

Total

9.0%

7.8%

7.4%

EY GLOBAL REVIEW 201845

Quality
Internal inspection results of audits in IFIAR-regulated countries
2015

2016

2017

Compliant engagements

72%

68%

73%

Compliant engagements withimmaterial findings

21%

24%

21%

Total compliant engagements*

93%

92%

94%

Deficient engagements^

7%

8%

6%

*Such findings may result in the need for additional audit procedures or documentation. However, given their nature these matters would not be expected to have a significant
impact to the overall audit conclusion.
^Findings in procedures or documentation that are material to the financial statements, auditor’s reports or were not performed in accordance with our policies.

Internal inspection results of all audits
2015

2016

2017

Compliant engagements

69%

67%

71%

Compliant engagements withimmaterial findings

22%

25%

21%

Total compliant engagements*

91%

92%

92%

Deficient engagements^

9%

8%

8%

*Such findings may result in the need for additional audit procedures or documentation. However, given their nature these matters would not be expected to have a significant
impact to the overall audit conclusion.
^Findings in procedures or documentation that are material to the financial statements, auditor’s reports or were not performed in accordance with our policies.

EY GLOBAL REVIEW 201846

#1 or #2 in market shareof chosen services
Learn more about the companies we serve.

Client makeup
Fortune Global 500 – FY18
Percentage of index served Audit client Non-audit client All other companies

All othercompanies: 18%

Audit client: 21%

Non-audit client: 61%

Forbes Global 2000 – FY18
Percentage of index served Audit client Non-audit client All other companies

Audit client: 26%
All other companies: 30%

Non-audit client: 44%

EY GLOBAL REVIEW 201847

Fortune Global 500 – percentage of companies in index served (three-year comparison)*
FY16

FY17

FY18

Audit client

23%

22%

21%

Non-audit client

56%

55%

61%

Total

79%

77%

82%

*At least US$500,000 in EY revenue during the financial year

Forbes Global 2000 – percentage of companies in index served (three-year comparison)*
FY16

FY17

FY18

Audit client

26%

26%

26%

Non-audit client

41%

43%

44%

Total

67%

69%

70%

2016

2017

2018

EY ranking by deal numbers

1

1

1

EY ranking by proceeds

3

1

1

*At least US$500,000 in EY revenue during the financial year

EY’s audit market share of IPOs (three-year comparison)

EY GLOBAL REVIEW 201848

Best brandLearn about our brandfavorability ranking.

Brand favorability*
2013

2015

2017

EY global ranking#2#2

Tied #1

Best brand in
EY regionsn/a

7(25% of28 regions)

12(38% of 26 regions)*EY’s Global Brand Survey results.

EY GLOBAL REVIEW 201849

Positive and strong relationships
with stakeholders
Our community investment and initiatives, and environmental impact

Community investment
FY16

FY17

FY18

Hours invested in community
initiatives worldwide by EY people(000’s)

700

700

739

Value of time contributions (US$m)

44

47

51

Cash investments (US$m)

57

58

61

Total

101

105

112

*EY uses the LBG framework and methodology to measure and value our community investments. The framework is a global standard for measuring community contributions
and is aligned with leading sustainability indices such as the Dow Jones Sustainability Index and the Global Reporting Initiative.

Greenhouse gas emissions metric tons CO2 (estimated)*
FY15

FY16

FY17

986,000

1,185,000

1,190,000

5.15

5.23

4.89

Scope 1/2 GHG protocol

204,000

209,000

189,000

Scope 3 GHG protocol

782,000

976,000

1,001,000

Total emissions
Emissions per employee (FTE)*The carbon footprint of our global organization is calculated in line with the EY global carbon footprint methodology. This is based on the Greenhouse Gas (GHG) Protocol
developed by the Word Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD), using its “location-based” approach to reporting.
Emissions calculations use 2017 conversion factors published by the Department for Business, Energy & Industrial Strategy in the UK, or locally published factors whereappropriate. The conversion factors used to calculate emissions from air travel include the impact of “radiative forcing.”
For further details, please refer to https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2017.
Emissions from office energy consumption are estimated using activity data from 26 member firms, representing 70% of the global office portfolio. The majority of the reduction can be attributed to changes in GHG conversion factors for grid electricity in key locations.
Emissions from air travel are estimated using distance data that represents 83% of global spend on air travel.
Emissions from ground transportation (including rail travel and business travel in EY-owned, rental and employee vehicles) are estimated using fuel consumption and distancedata for approximately 80% of employees.
FY16 figures for Scope 3 emissions and emissions per full-time employee have been restated following a change in travel provider and improvements to our carbon footprint
calculation methodology. We are unable to restate FY15 figures on a like-for-like basis, due to limitations in the historical data.

EY GLOBAL REVIEW 201850

Leadership and locations
Find out about our leaders and the locations we operate in.
The Global Executive is our most senior management body and focuses on strategy, execution and operations.
Its members bring together all the elements of our global organization, including our functions, service lines,
geographic areas and committees.

Mark A. Weinberger

Carmine Di Sibio

Lou Pagnutti

Beth Brooke-Marciniak

Global Chairman & CEO

EY Global Managing Partner –Client Service

EY Global Managing Partner –Business Enablement

EY Global Vice Chair –Public Policy

Trent HenryDavid Holtze

Jay Nibbe

Felice Persico

EY Global Vice Chair –TalentEY Global Vice Chair –Finance and CFO

EY Global Vice Chair –Markets

EY Global Vice Chair –Assurance

Norman Lonergan

Kate Barton

Steve Krouskos

Kelly GrierEY Global Vice Chair –Advisory

EY Global Vice Chair – Tax

EY Global Vice Chair –Transaction Advisory
Services

US Chairman and EY
Americas Managing Partner

Patrick WinterAndy Baldwin

Scott Halliday

Alison Kay

EY Asia-Pacific Area
Managing Partner

EY EMEIA Area Managing
Partner

EY Japan Chairman andArea Managing Partner

EY Global Accounts
Committee Chair

Rajiv Memani

Albert Ng

Jessie Qin

Chair of the EY Global
Emerging Markets Committee,
Chairman and Regional
Managing Partner – India

EY Global Emerging Markets
Committee Member,
Chairman – China, Regional
Managing Partner –Greater China

EY EMEIA Advisory Center
Solution Lead, Ernst & Young –Switzerland Partner

EY GLOBAL REVIEW 201851

Other leaders
Area and Regional Managing Partners.
To ensure we are efficient and effective, we have organized our legal entities into 27 similarly-sized – interms of both people and revenues – business units called Regions. These Regions, led by Regional Managing
Partners, are grouped into four geographic Areas: Americas; Asia-Pacific; EMEIA and Japan.

AmericasAsia-Pacific

EMEIA

Japan

Kelly GrierPatrick WinterAndy Baldwin

Scott Halliday

Area Managing Partner,
Americas

Area Managing Partner —Asia-PacificArea Managing Partner —EMEIAArea Managing Partner,
Japan

Regional Managing Partners

Regional Managing Partners

Regional Managing Partners

Jad Shimaly

Max LohAjen Sita

CanadaASEAN

AfricaJulie Boland

Gary Hwa

Jacek Kedzior

USA — Central

Financial Services
Organization

Central, Eastern andSoutheast Europe

Albert Ng

Joe Watt

Greater China

CIS

Ronen Barel

Jin Sug SuhMarcel van Loo

IsraelKorea

Financial Services
Organization

Francisco Álvarez

Tony Johnson

Latin America — North

Oceania

Anthony Caterino
Financial Services
Organization

Rich Jeanneret
USA — Northeast

Sergio Romani
Latin America — South

Randy Cain
USA — Southwest

Kay Matthews
USA — West

Julie Teigland
GSA

Rajiv Memani
India

Donato Iacovone
Mediterranean

Abdulaziz Al-Sowailim
MENA

Erik Mamelund
Nordics

Steve Varley
UK&I

Jean-Pierre Letartre
Western Europe Maghreb

EY GLOBAL REVIEW 201852

Other leaders
Industries
Our sector focus means we can help clients better anticipate market trends, identify the implications fortheir businesses, and deliver sector-specific solutions. It is part of our commitment to exceptional client
service. Shaun Crawford, as EY Global Vice Chair — Industry, oversees the work that EY teams do acrossour industry sectors.

Shaun Crawford
Global Vice Chair — Industry
Consumer

EnergyFinancial Services

Kristina Rogers

Benoit Laclau

Gary Hwa

Health Sciences & Wellness

Private Equity

Smart Infrastructure

Pamela Spence

Andres Saenz

George Atalla

Technology, Media& Telecoms

Advanced Manufacturing& Mobility

Randy Miller

EY GLOBAL REVIEW 2018

Greg Cudahy53

Other leaders
Global Governance Council
The Global Governance Council consists of 36 senior client-serving partner-ranked professionals drawn frommember firms across the four EY Areas, and up to six independent non-executive members. These senior EY
professionals who otherwise do not hold senior management roles, are elected by their peers. They advise
EY on policies and strategies and the approval of the Global Governance Council is required for a number ofsignificant matters that affect the organization as a whole.
Americas Regions —14 representatives

Asia-Pacific Regions —5 representatives

EMEIA Regions —15 representatives

Japan –
2 representatives

CanadaASEAN

AfricaPaul Battista*

Wilson P Tan

Gerald Lincoln

Masami Koike*
Koji Fujiman

CentralFSO

BeNe

Julie Gannon Boland

Effie Xin

Alexey Loza

FSO

Greater China

CSE

Laura Giovacco
Belinda Pestana

Vincent Chan

Guntars Krols

Korea

FSO

IsraelDong Chul Kim

Rosheen Dries

Oceania

WEM

Trent Van Veen*

Gilles Puissochet

Chen Shein
Latin America — North

Francisco Olivares
Andrea Weichert
Northeast

India

Diana Hoff

Sonu Iyer

Southeast

Mediterranean

Oscar Suarez

Francisco Javier Sanchez
Ramos

Southwest

Bill Strait
West

Beth Carr
National Practices

Kevin Brown
Alex Shahidi
Katrina Kimpel

CK Chow
Atsushi Saito
David Thorburn
Jurgen Kluge

GSA

Ralf Bostedt
Robin Errico

Latin America — South

Global Independent
Non-Executives - up to
6 representatives

MENA

Yasmeen Muhtaseb
Nordics

Torben Bender*
UK and Ireland

Chris Voogd
Alison Duncan* Presiding Partner

EY GLOBAL REVIEW 201854

AreasEY member firms are organized into 26 Regions which are grouped into four geographic Areas:
Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.

Americas
CanadaFinancial Services
Organization

IsraelLatin America —North

Latin America –South

BahamasBolivia

Argentina

BermudaColombia

BrazilBritish Virgin
Islands

Costa Rica

Chile

Dominican
Republic

Paraguay

CaymanIslands

EcuadorUnited States

USA – Central

Uruguay

El Salvador
GuatemalaHonduras
MexicoNicaragua
PanamaPeru
Venezuela

USA – Northeast

USA – Southeast

USA – Southwest

USA – West

Aruba
BarbadosCuraçao
Jamaica
St Lucia
Trinidad andTobagoEY GLOBAL REVIEW 201855

AreasEY member firms are organized into 26 Regions which are grouped into four geographic Areas:
Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.

Asia-Pacific
ASEAN

Brunei

Financial Services
Organization

Greater China

Korea

Oceania

China

Australia

Cambodia

Mongolia

Fiji

Guam

TaiwanNew ZealandIndonesia

Papua New Guinea

Laos
Malaysia
Maldives
Myanmar
N. Mariana Islands
Philippines
Singapore
Sri Lanka
Thailand
Vietnam

Japan
Japan

EY GLOBAL REVIEW 201856

AreasEY member firms are organized into 26 Regions which are grouped into four geographic Areas:
Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.

EMEIA
AfricaAngolaCentral, Easternand Southeastern
EuropeBotswana

Albania

SerbiaCameroon

Armenia

Slovakia

Chad

Azerbaijan

Slovenia

Congo

BelarusTurkeyDemocratic
Republic of
the Congo

Bosnia andHerzegovina

UkraineEquatorial
GuineaCroatia

Libya

CyprusOman

Czech Republic

Pakistan

Estonia

Palestinian
Authority

Gabon
Ghana
GuineaIvory Coast
Kenya
Madagascar
Malawi
Mauritius
Mozambique
Namibia
Nigeria
RwandaBulgaria

Georgia
GreeceHungary
Kazakhstan
KosovoUzbekistan

Financial Services
Organization

Middle East
North Africa

Gibraltar

Afghanistan
Bahrain
Egypt
Iraq
JordanGermany,
Switzerland andAustria

Austria
Germany
Liechtenstein
Switzerland

KuwaitLebanon

Qatar
Saudi Arabia
Syria
United ArabEmirates

KyrgyzRepublic
LatviaLithuania

SenegalFYR ofMacedonia

Seychelles

Malta

South Africa

Moldova

South Sudan

Montenegro

Tanzania

PolandUgandaRomania

ZambiaRussiaZimbabwe

EY GLOBAL REVIEW 201857

AreasEY member firms are organized into 26 Regions which are grouped into four geographic Areas:
Americas; Europe, Middle East, India and Africa (EMEIA); Asia-Pacific; and Japan.

EMEIA (cont'd)
Nordics

India

UK and Ireland

Mediterranean

DenmarkBangladesh

Italy

FinlandIndia

Republic of
Ireland

Iceland
NorwaySwedenUnitedKingdom

Portugal
Spain

Western Europe
Maghreb

Algeria
Belgium
FranceLuxembourg
MonacoMoroccoNetherlands
Tunisia

EY GLOBAL REVIEW 201858

Our locations
With over 700 locations in over 150 countries, we provide local knowledge with global experience.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global
Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com© 2018 EYGM Limited. All Rights Reserved. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or otherprofessional advice. Please refer to your advisors for specific advice.

EY GLOBAL REVIEW 201859

EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and advisory
services. The insights and quality services we deliver help build trust andconfidence in the capital markets and in economies the world over. We
develop outstanding leaders who team to deliver on our promises to allof our stakeholders. In so doing, we play a critical role in building a betterworking world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, ofthe member firms of Ernst & Young Global Limited, each of which is aseparate legal entity. Ernst & Young Global Limited, a UK company limited
by guarantee, does not provide services to clients. For more information
about our organization, please visit ey.com.
© 2018 EYGM Limited.
All Rights Reserved.
EYG04315-183Gbl
ED NoneThis material has been prepared for general informational purposes only
and is not intended tobe relied upon as accounting, tax, or other professional
advice. Please refer to your advisors for specific advice.
www.ey.com/en_gl/global-review/2018

EY GLOBAL REVIEW 201860