2023 ANNUAL SUSTAINABILITY REPORT

From Bold Ideas toExponential Impact
April 2024

Contents

03 Executive Introduction
05 About This Report
15 Driving Social Impact
36 Protecting Our Planet
62 Empowering Our People
81 Promoting Responsible
Business Practices
95 Appendix

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INTRODUCTIONDRIVING SOCIAL IMPACTPROTECTING OUR PLANET

Executive Introduction

APPENDIX

The biggest themes for BCG and our stakeholders in 2023 included
the swift evolution of the ongoing climate crisis, geopoliticaluncertainty, generative AI, and growing social inequities. This year’s
report, From Bold Ideas to Exponential Impact, summarizes how we
worked to conquer the complexity of these many challenges—andfind the most valuable, sustainable, and innovative solutions.

PROMOTING RESPONSIBLE BUSINESS PRACTICES

BCG’s Annual Sustainability Report tells the story of our positive
impact on society. Through key metrics and our clients’ testimonials,
this report showcases the many ways in which we strive to live up to
our purpose: unlocking the potential of those who advance the world.

EMPOWERING OUR PEOPLE

Christoph, CEOWalking the Talk
Although we measure our success by the positive impact ofour clients and partners, we also commit to excellence in
how we operate as a firm. That means taking care of ourpeople, investing in the communities where we work andlive, and protecting our planet.

Watch Christoph Schweizer introduce
BCG’s 2023 Sustainability Report

A History of Driving Impact for Our Clients“The most important value of all, for each professional,
must be dedication to the task of optimizing client
contribution to society.” Those are the words of Bruce
Henderson, who founded BCG in 1963. We continue to liveby them six decades later. Here are some examples of how
we did so in 2023:• Since 2020, we’ve invested $1.5 billion in social andplanetary impact. Working in the private, public, andsocial sectors, we’ve supported sustainable development
through pro bono and financial support.
• Over the past decade, BCGers have dedicated morethan 1 million hours to a broad range of social projects
and objectives.
• In 2023, we completed more than 2,200 cases related tosocial and planetary impact for over 1,000 clients.
• Among the largest companies we work with, 72% tackled
at least one social or planetary impact project.
• We were deeply involved in key global events aimed atdriving social and environmental progress, such as the
UN SDG Summit in New York and COP28 in Dubai.

By the end of 2023, our headcount numbered 32,000—
an increase of more than 6% over the prior year. Attracting
and retaining top talent is one of our highest priorities.
Central to that effort is dedication to diversity, equity, andinclusion. In 2023, women made up 47% of our global
workforce and 39% of our Executive Committee. And in
the US, 44% of our people and 55% of our new hires werefrom racial or ethnic minority groups.
Our internal climate goals remained front and center in 2023,
and we’ve stayed on track. Despite a rebound in businesstravel after the pandemic, our 2023 emissions intensity fell
59% compared with our baseline in 2018. And while thefocus of our net zero agenda is to reduce emissions intensity,
we also purchased high-quality carbon credits equivalent tothe volume of our unabated emissions.
We have committed to invest in breakthrough technologies
that are necessary for the world to reach net zero. Last
year, we invested in high-permanence direct air capture
technology, as well as sustainable aviation fuel—both
nascent climate technologies that are vital paving stoneson the road to net zero.

Toward a Sustainable Future
The firm increased both its revenue and its impact in
2023, unlocking the potential of more clients than everbefore. We’re proud of how we’ve nurtured a culture
among our people and our clients that continues to allow
us to reach our goals. And we look forward to continuingthat push toward more sustainable business and a moresustainable world.

• We’re helping our clients implement reductions of morethan 1 gigaton of CO2 emissions by 2030—equivalent tothe annual combined emissions of Germany and the UK.
Christoph Schweizer
Chief Executive Officer(CEO)

BOSTON CONSULTING GROUP

David Webb
Chief Sustainability Officer(CSO)

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Doha - Shaza

About This ReportW

elcome to Boston Consulting Group’s Annual
Sustainability Report. Here, we outline ourstrategy for realizing our vision, purpose, andvalues in a way that overcomes urgent global challenges
and maximizes our positive contribution to society—how
we move from bold ideas to exponential impact.
Reporting on January 1 through December 31, 2023, thisdocument covers the significant nonfinancial impact ofBoston Consulting Group, Inc., and treats Boston Consulting
Group, Inc., as a unified entity.1 Boston Consulting Group,
Inc., is the parent of all our global operating entities. By
extension, this document meets the demands of relevant
environmental, social, and governance (ESG) reporting
standards for BCG subsidiaries, including entities suchas Boston Consulting Group Nordic AB (“BCG Sweden”)
and BCG UK1 Limited. This report also doubles as ouryearly Communication on Progress (CoP) to the UN
Global Compact.

For this reporting cycle, Boston Consulting Group, Inc.,
has reported in accordance with the GRI Standards. The
appendix features index tables that detail compliance withthose standards, the World Economic Forum Stakeholder
Capitalism Metrics Index, and the recommendations fromthe Task Force on Climate-related Financial Disclosures.
The BCG Executive Committee and Steering Committee
members responsible for the report’s subject matter havereviewed and approved its contents. As we continue tointegrate ESG with risk management, members of the Audit
and Risk Committee also reviewed and approved this report.

Should you have any inquiries regarding this report, please
direct them to SustainabilityReporting@bcg.com.

1. Although most of the content of this report focuses on events from the 2023 calendar year, certain statements look forward and thus reflect ourcurrent expectations regarding future events. Words such as “expects” and “plans” are intended to identify forward-looking statements. Suchstatements are based on the best information available to us on the date of publication, but they are subject to many risks and uncertainties that
may cause actual results to differ. We undertake no obligation to publicly update or revise any forward-looking statements in this report.v
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About BCG
Boston Consulting Group partners with leaders in businessand society to tackle their most important challenges andcapture their greatest opportunities. BCG was the pioneerin business strategy when it was founded in 1963. Today,
we work closely with clients to embrace a transformational
approach aimed at benefiting all stakeholders—empoweringorganizations to grow, build sustainable competitive
advantage, and drive positive societal impact.2

Our diverse, global teams bring deep industry andfunctional expertise and a range of perspectives thatquestion the status quo and spark change. BCG delivers
solutions through leading-edge management consulting,technology and design, and corporate and digital ventures.
We work in a uniquely collaborative model across the firm
and throughout all levels of the client organization, fueledby the goal of helping our clients thrive and enabling themto make the world a better place.

BCG in Numbers

1963founded byBruce Henderson

32K
employees$12.3Brevenue100+
cities with BCG
offices, in more than
50 countries

2. BCG defines societal impact as any initiative that delivers positive social or planetary impact. To avoid double-counting, if a particular projectdelivers both social and planetary impact, we count it as only one societal impact project overall. This explains the seeming discrepancy between
total numbers of social impact, climate and sustainability, and societal impact cases. We take the same approach to data on client involvement.
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Purpose, Principles, and Values
At BCG, our purpose is to unlock the potential of those
who advance the world.
BCG is a global company and works across diverse
geographies and cultures. Our principles help ensure that
we deliver our purpose wherever and whenever we work:• We bring insight to light by challenging traditional
thinking and ways of operating and by bringing fresh
perspectives to the toughest problems.
• We drive inspired impact by looking beyond thenext deadline to the next decade and by collaboratingclosely with our clients to enable and energize theirorganizations.
• We conquer complexity by discovering unique sourcesof competitive advantage and hidden truths in dynamic,
complex systems.
• We lead with integrity by confronting hard issues,staying true to our values, and stating our views candidly
and directly.
• We grow by growing others, enabling our clients, ourcolleagues, and the broader community to build successand achieve their full potential.

Complementing these principles, our values help form
the foundation of our culture and ensure that BCG is an
inclusive, rewarding, and inspiring place to work. We arecommitted to the highest standards of ethics and businessconduct, as detailed in our Values Statement, to which we
expect each employee to adhere:• Integrity as an expression of courage and accountability• Respect for the individual and their capacity and desire
for personal growth• Diversity of thought, expertise, experience, andbackground• Clients come first, and their success is the measure of
our success• Strategic perspective, enabling our clients to deliver
superior results in a sustainable manner• Value delivered in the form of tangible, positive, andlasting change• Partnership guided by a long-term view of ourrelationships, internally and with clients• Expanding the art of the possible because the goal
is not simply to apply best practice, but also to invent it• Social impact to make the world a better place
We introduce every employee to these principles andvalues as they arrive at BCG, and our biannual Key to
Purpose awards help to recognize, reward, and embedthem over time.

Impact Within Our Own Operations
BCG contributes to positive societal impact through ourengagement with clients and partners, but the way weoperate as a firm is just as important. Whether bymanaging potential risks or maximizing opportunities forplanet, people, and prosperity, we aim to lead with integrity.
That means following the same advice that we give ourclients and seeking to foster sustainable operations across
ESG topics.
For more information, including our performanceaccording to the World Economic Forum’s Stakeholder
Capitalism Metrics and the GRI Index, see pages 106–111
of the appendix.

BCG’s São Paulo office

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Kuala Lumpur - Local BCG teamGovernance
Boston Consulting Group, Inc., continues its operations asa privately held entity. The corporation is wholly owned by
the members of its partnership. The firm’s global offices
are either directly or indirectly under the ownership ofBoston Consulting Group, Inc.
The firm’s board of governors oversees governance at
Boston Consulting Group, Inc. The CEO and the Executive
Committee act on the board’s behalf except in the caseof certain powers that the board reserves for itself. This
Executive Committee is responsible for shaping the firm’s
strategy, vision, and direction across areas such as
investments, policies, growth, business mix, personnel,
and philosophy. The composition of the Executive
Committee includes both appointed and elected members,
with the CEO’s position subject to a board election every
four years. Each CEO can serve for a maximum of two
terms. Appointees by the CEO on the Executive Committee
typically hold positions for up to six years. The board may
extend appointees’ terms if it deems such action beneficial
for the firm. Elected members undertake three-year terms,
with eligibility for reelection for a subsequent and final term.
Further details on the Executive Committee’s makeup
and the expertise of its members are accessible on ourleadership webpage.
Several steering groups oversee the environmental, social,and governance issues discussed in this report. They report
directly to the Executive Committee and present reports
on priority topics.
The leadership team of BCG’s Social Impact practice,consisting of managing directors and partners (MDPs),
spearheads initiatives covered in the “Driving Social
Impact” section of this report. Meanwhile, the Internal

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Sustainability Strategic Committee manages BCG’scommitment to environmental sustainability, as outlinedin the “Protecting Our Planet” chapter. This committee
oversees internal net zero efforts, and the Climate andSustainability Leadership Team engages with clients andwider society.
Since 2022, David Webb has been our chief sustainability
officer (CSO). He chairs the Internal Sustainability
Strategic Committee (Strat Co) and reports to the CEO.
The Strat Co, which convenes monthly and is responsiblefor BCG’s sustainability strategy and climate risk oversight,
consists of BCG’s global chair, CSO, chief financial officer,
and people chair. Their annual performance evaluations
and remuneration are linked to the firm’s internalsustainability performance.
In 2023, the People Team’s leadership shifted from Dinesh
Khanna to Alicia Pittman. This report’s “Empowering
Our People” chapter focuses on our three main cohorts:
consultants, business services and knowledge teams, and
MDPs. The People Team aims to attract, develop, energize,
and retain talent while supporting the success of our people
and clients. The People Team’s chair also participates inthe Executive Committee and the Internal Sustainability
Steering Committee. Nadjia Yousif, appointed as BCG’schief diversity officer (CDO) in 2022, continues to promote
diversity, equity, and inclusion both within and outside thefirm. The CDO reports directly to BCG’s CEO.
The Executive Committee nominates prospective membersof the Audit and Risk Committee, and the board elects
them. The Audit and Risk Committee, chaired by chief risk
officer Adam Farber, is chiefly responsible for addressing
topics that appear in the “Promoting Responsible Business
Practices” chapter of this report.

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Stakeholders
Engaging with our key stakeholder groups is essential for ouroperations, for our overall effectiveness, and for our ability todeliver our sustainability strategy. Our efforts in this regard
underscore our commitment to making informed decisions
that reflect evolving priorities in our rapidly changing

business landscape and in society at large. The table below
offers an overview of BCG’s main stakeholder groups,
detailing our engagements with them and the methods we
use to incorporate their feedback into our strategy,
operations, and approach to risk and material topics.

STAKEHOLDERS

WHY WE LISTEN

EXAMPLES OF HOW WE LISTENBCG leadership

To set the firm’s strategic direction andpriorities, and to understand which
corporate sustainability issues are mostimportant to our leadership and clients• Biannual meeting of worldwide MDPs
• Annual people survey for MDPs
• Management committees and briefing calls

BCG employees

To inform our people management strategy
and employee value proposition, and tounderstand which corporate sustainability
issues are most important to our people• Annual people survey• Regular pulse check surveys• Weekly case team surveys• Annual global town hall meetings for all staff• Biannual career management anddevelopment meetings• Employee networks on ESG topics

Clients

To better understand the challenges that
our clients and their industries face, and to
identify opportunities to improve ourservices and client delivery• Client relationship management and dialogue• Business leader surveys• Client ESG questions in tender documents• Client-led reporting disclosures (such as
EcoVadis)

Future talents

To understand what drives the career
selection and decision-making process ofhighest-potential talent, and to better
position BCG as the employer of choice

Civil society

To understand the most complex global
challenges, to contribute to thought
leadership and coalitions on these topics,
and to align our programs with emerging
best practices and stakeholder
expectations

Suppliers

To better understand supplier concerns,
and to manage risk in our supply chain inorder to identify opportunities tocollaborate on ESG topics

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• Participation in recruitment events• Surveying our candidates and new recruits• Participation in industry forums, working
groups, and roundtable events• Placement of BCG employees with BCG
partner organizations• Responding to consultations and ad hoc
dialogue• Regular tender processes• Ongoing supplier relationship management• Annual business reviews

INTRODUCTION | 2023 ANNUAL SUSTAINABILITY REPORT

9Material Topics
Materiality assessment and risk management are
intrinsically linked because both involve identifying,assessing, and managing risks and opportunities—whether
potential or actual. For that reason, BCG deals with the mostmaterial issues identified through our materiality assessment
within our global enterprise risk management (ERM) process.
Our chief risk officer, Adam Farber, oversees ERM—anarrangement that helps ensure that both materiality and risk
contribute to decision making and strategy. The reverse isalso true: our strategy can inform both materiality and risk
management. To learn more about risk management, seepage 86.
We continue to advance our methods every year, and in
2023 we enhanced our approach to materiality. Crucially,
we calibrated the risk appetite framework applied in ERM
processes with the way we assess the risk and opportunityof each material topic. This shared language permits us toquantify materiality results in a way that we can seamlessly
integrate into our ERM assessments. As a result, we canmore easily manage material topics such as social impact,
climate action, and corporate culture alongside other risks
and opportunities.
BCG conducted a double materiality assessment (DMA) in
2023 in which we considered not only the impact that ESG
topics might have on our business but the impact ourbusiness can have on ESG topics, including human rights.
As in previous years, we aligned our methodology withthose of GRI, TCFD, and WEF. And although we are notobligated to adhere to the European Corporate
Sustainability Reporting Directive (CSRD) this year, ourDMA methodology has made strides toward aligning with
the CSRD framework. This does not, however, signify fullharmony with the directive’s standards. To ensure accuracy
and relevance, we validated our initial results with our
stakeholders, using database-driven analysis, surveys, anddirect interviews of key stakeholders. We also tried toensure that the sample of stakeholders we consulted was
representative at the global level.
Our DMA steering committee, which included the CSO andmembers of BCG’s Audit and Risk Committee, approved
the DMA. We acknowledge that our potential positive
impact extends to the services that we provide to
stakeholders to advance their climate, responsible AI, andsocial impact capabilities. We continue to actively manage
important topics internally such as climate change,
corporate culture, and diversity, equity, and inclusion (DEI)
via our ERM program.
We acknowledge the value of receiving external assurance
on material topics. Although we are at the beginning of thisjourney, we have again received limited assurance for one
highly material topic: internal climate action. (See page 51.)
BCG recognizes that visualization of DMAs will undoubtedly
evolve in coming years. Nevertheless, we present our results
below with a familiar two-axis diagram. (See Exhibit 1.) We
adopt this visualization method to enhance the accessibilityof our results to our stakeholders today.

Exhibit 1 - BCG’s 2023 Double Materiality Assessment
Data privacy andinformation security

Corporate culture

Social impact
Responsible AI

Diversity, equity, and inclusion
Human rights

EnergyIMPACT MATERIALITY

Talent attraction and development

Working conditions
Sustainable procurement

Internal
climateactionClimate action
with clients

Supplier diversity
Biodiversity
and ecosystems

Safety and security

Waste
Material topics

Important topics

FINANCIAL MATERIALITY
Driving Social Impact

Empowering Our People

Protecting Our Planet

Promoting Responsible Business Practices

Source: BCG analysis.

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Since 2022, we have altered our definition of material to
make future harmonization with the CSRD easier. Although
we still consider sustainable procurement, supplier
diversity, waste, and safety and security to be important
topics, they no longer qualify as material topics under
newer, more stringent thresholds. On the other hand, anumber of topics—such as climate action with clients,social impact, responsible AI, DEI, and data privacy andinformation security—remain material. This report
explores these material topics as well as other topics.

Progress toward harmonizing with the CSRD also prompted
us to update how we categorize topics, although thesechanges are not extensive. For example, social impact(formerly “client work for social impact”) has absorbed
community engagement to improve internal accountability
for such indicators. For similar reasons, we now group codeof client service, business ethics, and anti-corruption under
corporate culture. And although neither topic is material,
we consider the topics of energy and of biodiversity andecosystems to be informative and important. BCG willcontinue to identify, assess, and manage these topics as
DMA methods evolve.

2023 Awards and Recognition
BCG achieved an A rating in CDP
Climate Disclosure grading for thethird consecutive year, putting us
in the top 2% of companies rated
by CDP

BCG achieved a platinum ratingin the EcoVadis sustainability
assessment, placing us in the
top 1% of assessed companies

The Science-Based Targets
initiative (SBTi) validated ourtargets as aligning with the mostambitious goal of the Paris
Agreement: to limit a global
temperature rise to 1.5°C above
preindustrial levels

BCG received a perfect score on
the Disability Equality Index, abenchmarking tool that helps
companies build a roadmap of
measurable, tangible actions forachieving disability inclusionand equality

For the 16th year, BCG received aperfect score on the Corporate
Equality Index, recognizing
equality for lesbian, gay, bisexual,and transgender employees

Seramount named BCG as oneof the 100 Best Companies toWork ForBCG is ranked on the Glassdoor
Best Places to Work list for 2024,
which relies solely on input from
employees

BCG was rated the Best Company
for Career Growth, Culture, DE&I,
and Leadership, and receive eight
additional awards

Forbes and Statista rated
BCG as one of the World’s
Top Female Friendly
companies

Each year since 2019, Vault has
ranked BCG as one of the top
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Our Vision and Societal Impact
BCG aims to become the most positively impactfulcompany in the world.
For decades, our business model has enabled us to address
the world’s most complex and urgent problems in a uniqueway, collaborating with the private sector, NGOs andfoundations, multilateral organizations, and governments.
By pooling our efforts with premier global organizations
and leveraging BCG’s finest resources to tackle social andplanetary challenges, we’ve unlocked meaningfultransformation where it’s most needed. When we
contribute to people and planet in this way, we call itsocietal impact.

The Sustainable Development Goals (SDGs), which theUnited Nations established in 2015, continue to serve as avital framework for pursuing a greener, fairer, more
prosperous society. By delivering societal impact, BCG
helps drive progress toward the SDGs. Although theaccomplishments it lists are not exhaustive and are
constantly evolving, Exhibit 2 describes our SDG
contributions across the four pillars of the WEF Stakeholder
Capitalism Metrics Index: prosperity, planet, people, andgovernance. It also showcases some key societal impact
milestones that BCG reached in 2023.

Exhibit 2 - From Bold Ideas to Exponential Impact
Prosperity

Planet$12.3B $1.5B

32K

in revenue

invested in societal
impact since 2020

employees

1GT+

1K+

projected reduction in
CO2 emissions by 2030,
implemented by ourclients with our support

PeopleGovernance

1M+

societal impact clientsin 2023, up ~100%since 2020

On track for our
SBTi-validated 2025
emissions reduction
targets

2.2K+

55%

hours dedicated tosocial impact in thepast decadesocietal impact casesin 2023, up ~150%
since 2020of new hires in the
US are from racial or
ethnic minority groups

20+

100%

39%

responsible AI
publicationsof BCGers completed
business ethics trainingof Executive Committee
members are women

Source: United Nations Sustainable Development Goals.

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12This report encompasses a broad range of societal impact.
For the most part, we cover social impact topics, including
eradicating poverty, improving access to health care,providing high-quality education, and reducing inequalities
in the “Driving Social Impact” chapter. In this chapter, wetell our story through the lens of the SDG accelerators wehave helped to unlock:• A digital revolution that leaves no one behind• Local collaboration for global impact• The power of the private sector• Getting creative to close financing gaps
• Proactive adaptation and resilience
We address environmental topics, such as combatingclimate change and protecting natural habitats, in the“Protecting Our Planet” chapter. There, we tell the story of
how we unlocked the climate and sustainability potentialof our clients by focusing on six core areas:• Sustainable strategy and transformation• Decarbonization• Sustainable operations• Food and nature-based solutions• Green technology• Finance and investing
Although cases that primarily drive social impact appear in
the “Driving Social Impact” chapter, and cases involving
planetary impact receive special attention in the“Protecting Our Planet” chapter, the holistic nature ofsocietal impact means often results in overlap andcollaboration between the two. For that reason, the casestudies we present highlight both primary and secondary
contributions to SDGs.
Making a Measurable Impact
BCG is committed to continually improving our transparency,
accountability, and methods of impact measurement. Boththe qualitative information and the quantitative information
provided in this report are as accurate, up-to-date, clear,and reliable as possible. Our methods will evolve with bestpractice, but review by our own and external experts—
sometimes corroborated through third-party verification,
helps ensure that the data in this report is the product ofrobust and rigorously applied methodologies.
In the “Driving Social Impact” chapter, our theory ofchange guides our social impact teams. We have one goalin mind: to drive change that shapes a better future. We’ve

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invested in our ability to manage and measure impact.
With support from impact advisors at Value for Good, ourimpact management team has created standardized
measurement goals and criteria.
Value for Good also provided the foundation for our newly
launched Impact Academy, a platform to inform, engage,and upskill our social impact teams and the wider BCG
community. With impact at the core of all we do, we haveestablished a culture based on integrity, open dialogue,
and a learning mindset. Combined with a dedication tosystematic analysis, this helps ensure that our social
impact metrics are as accurate as possible now and are
constantly improving.
For the “Protecting Our Planet” chapter, we’ve increased
the resources available to identify and measure the climate
action that we achieve through client work. Combined withsimilar methodological rigor that our social impact teams
employ, this helps to ensure that the figures provided on
projects, clients, and other climate and sustainability
investments are reliable and constantly advancing.
Meanwhile, our most material environmental topic
internally involves our carbon emissions. For this reason,
we maintain a best-in-class global carbon accounting
system that meets the GHG Protocol Corporate Standard,
and we independently verify our emissions against the ISO
14064-3 standard. This has helped us earn inclusion on the
CDP A List for three consecutive years. Also of note: in2023, our EcoVadis rating advanced from gold to platinum,
placing us in the top 1% of companies assessed. Taken
together, these initiatives indicate our commitment tomeasure and disclose our impact transparently, rigorously,
and robustly.
The Power of Collective Action at the Global Level
Societal impact is a team sport. BCG champions thisapproach by leveraging our extensive expertise acrosssectors to drive bold initiatives that unlock materialsocietal impact.
Our collaborative efforts extend beyond multiple client
engagements. Across the globe, we collaborate in strategic
partnerships across private, social and public sectors.
These efforts aim to contribute to a more equitable,
sustainable, and prosperous world, and the societal impact
they have already delivered demonstrate the power ofcollective action.
The “Driving Social Impact” and “Protecting Our Planet”
chapters tell the story of their partnerships from their own
perspectives to emphasize their social and planetaryimpacts, respectively. Nevertheless, working holistically ata global level often generates planetary and social benefit
simultaneously. The table below showcases key
collaborations that have advanced our societal impact at
the highest level in 2023, demonstrating our commitment
to collective action and driving systemic change.

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GLOBAL PARTNERSHIPHOW COLLECTIVE ACTION HELPED TO UNLOCK SOCIETAL IMPACT IN 2023

The UN addresses many of the world’s challenges. including the climate crisis. One
way it does so is through the Conference of the Parties (COP). BCG was a Principal
Strategy and Action Partner to COP28, held in Dubai, United Arab Emirates.

COP28 and
United Nations

At COP28, we provided implementation support across environmental topics, includinghydrogen, climate finance, decarbonization, food system transformation, and nature
protection. One example is our publication with IRENA and the Global Renewables
Alliance, Tripling Renewable Power and Doubling Energy Efficiency by 2030: Crucial Steps
Towards 1.5°C. This outlined enablers to triple global renewable power capacity to
11,000 GW and double average annual energy efficiency improvements by 2030.
We also helped drive social impact by unlocking insight on adaptation and resilience.
Relevant publications include “Adaptation and Resilience Through Land Transport
Infrastructure Systems” to help communities impacted by climate change, the firstannual Sharm-El-Sheikh Adaptation Agenda implementation report for COP28, andadaption and resilience needs across finance, planning, food and agriculture, andhuman settlements. Finally, we hosted events and workshops on clean tech, green
jobs, and social banking; for the last of these, we launched our report Banks Can Deliver
Both Social Impact and Profits. Here’s How.

The World Economic Forum aims to build initiatives for cooperation and progress inthe public and private sectors. BCG is a strategic partner of the WEF.

World Economic
Forum

Rich Lesser, BCG’s global chair, is the chief advisor to the WEF Alliance of CEO Climate
Leaders, which this year supported three strategic initiatives: climate policy, the energy
transition, and decarbonizing upstream emissions. BCG is also a member of the Chief
Sustainability Officer Community and the Natural Climate Solutions Alliance.
In 2023, we contributed to protecting our planet through our work on projects suchas the race to net zero, technology for climate adaptation, and accelerating a justtransition. Our social impact practice launched two publications that ultimately
benefit people and communities: Tech for Climate Adaptation and Accelerating a
Green and Just Transition.

The WBCSD brings organizations together to shift the systems they work within toward
a more sustainable future. BCG remains a key partner on critical topics.

World BusinessCouncil for Sustainable
Development

In 2023, we supported initiatives focused on circularity, procurement, and avoided
emissions, which led to three key outputs: a protocol to help companies combat plastic
pollution; a series of masterclasses and articles to upskill corporates on topics such assustainable procurement, decarbonization, and net zero; and a white paper on how
avoided emissions can serve as an indicator of green leadership.
At COP28, we collaborated with WBCSD and the COP Presidency to launch the Action
Agenda on Regenerative Landscapes, which maps a path to sustainable agriculturethat would benefit 3.6 million farmers by 2030. With members across the food andagriculture value chain, as well as local governments and other stakeholders, theAction Agenda aims to create the transparency needed to unlock and scale up
sustainable agriculture over the years.

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INTRODUCTION

Driving Social Impact

DRIVING SOCIAL IMPACTPROTECTING OUR PLANETEMPOWERING OUR PEOPLE

2023 in Numbers

2.6K+ 56%

Delivered 1,000+ social impact casesin 2023, up 35% since 2022

$340 million invested in driving positivesocial impact in 2023, up 37% since 20223

hours we havededicated to social
impact in the past
decadeclients we supported
to drive social impact,
up 30% since 2022

BCG consultants
helped clients drivesocial impact

PROMOTING RESPONSIBLE BUSINESS PRACTICES

1M+ 550+of our largest clientswere involved in atleast one social
impact case in 2023

+35%
1,040
710

770

2020

2021

2022

BOSTON CONSULTING GROUP

2023
PROMOTING RESPONSIBLE BUSINESS PRACTICES | 2023 ANNUAL SUSTAINABILITY REPORT

3. This figure includes pro bono and low bono cases, investments in local social impact projects, and global social impact partnerships.

15

APPENDIX640

As the timeline for fulfilling the UN Sustainable
Development Goals (SDGs) ticked past its halfway
point, the world looked ahead to the achievementtarget date of 2030 with hope, along with the need forsome course correction.

By dedicating our time and resources alongside our clientsand partners, we believe that we can help catalyze change
where it is most needed and move SDG fulfillment fromaspiration to realization. In 2023, we identified six
accelerators for progress on the SDGs:

At BCG we believe that SDG fulfilment is both necessary
and possible. For that reason, we proudly reaffirm ourenduring and substantial commitment to societal impact.
In 2023, BCG contributed $340 million to help solve theyear’s most pressing social issues. We have now invested
more than $1 billion into driving social impact since 2020.

• A Digital Revolution That Leaves No One Behind.
Digital technology and data have the potential tomeaningfully advance social impact efforts.

2023 Highlights
In 2023, Social Impact and Climate & Sustainability
continued to be two of our fastest-growing practices. Not
including MDPs, 2,600 BCG employees used their expertiseto drive social impact.
We also reached an important milestone in 2023: over the
past decade, BCG has dedicated over 1 million hours to
supporting a broad range of social impact projects andobjectives across the globe. This figure includes pro bono work.
In a year of uncertainty, BCG stayed true to our belief thatsocial impact is critical, regardless of the tenor of thebusiness cycle. We played a major role in convening theprivate, public, and social sectors to accelerate progress on
the SDGs. We continued to provide humanitarian support
during major crises, both manmade and natural.

• Local Collaboration for Global Impact. Collaboration
is key, but it can sometimes proceed slowly. An approachthat emphasizes achieving a local impact first can help.
• The Power of the Private Sector. The private sector
can advance progress while also improving competitive
strength.
• Getting Creative to Close Financing Gaps. A
collective response from the financial ecosystem isessential to close critical gaps.
• Working to Bridge Social Divides. Public sector
organizations play a vital role in enhancing equity andequality for individuals, communities, and countries.
• Proactive Adaptation and Resilience. Communities
must transform themselves to increase their resilience tolocked-in effects of climate change.

2023 in Numbers$340M 1,000+ 550+
invested in solving urgent
social issues, up by 37%
since 20224

projects driving social
impact—a year-on-yearincrease of over one-thirdclients we supported todrive social impact, up
30% since 2022

4. This figure includes pro bono cases, investments in local social impact projects, and global social impact partnership.

BOSTON CONSULTING GROUPDRIVING SOCIAL IMPACT | 2023 ANNUAL SUSTAINABILITY REPORT16

To bring these accelerators to life, our social impact work
focuses on seven key areas:

Taking Stock While Plotting the Path Ahead
with Our SDG Accelerators• Economic Development. Accelerate the end of
extreme poverty and improve livelihoods by fostering
inclusive growth and opportunity.

We believe that true societal transformation requires
systemic change, innovation, and, crucially, collaboration.
These are essential ingredients in every BCG’s social
impact case or project—large or small. Whether it be at
the local level in one of our more than 100 offices aroundthe globe or on the biggest of stages, such as during United
Nations General Assembly week or COP, change happens
when we look past the status quo and work together.

• Global Health. Make health care more accessible topromote healthy lives for all.
• Food, Hunger, and Agriculture. Eliminate hunger,
increase food security, and accelerate agriculturaldevelopment.
• Education. Develop high-quality education and skills
support for all.
• Diversity, Equity, and Inclusion. Build more equitable
and inclusive businesses and societies.
• Humanitarian Crisis Action. Strengthen preparedness,
immediate response, and longer-term recovery.
• Climate Adaptation and Resilience. Safeguard
populations, and build climate-risk resilience.

BOSTON CONSULTING GROUP

This thinking underlies our optimism with regard to making
progress on the SDGs. As this pivotal stock-take year
progressed, our social impact work enabled us to identify
the six SDG accelerators for bringing SDG achievement
within reach. (See the sidebars “A Digital Revolution That
Leaves No One Behind,” “Local Collaboration for Global
Impact,” “The Power of the Private Sector,” “Getting Creative
to Close Financing Gaps,” “Working to Bridge Social
Divides,” and “Proactive Adaptation and Resilience.”)
The aim of all six accelerators is to help advance SDG
progress from goals to scalable plans—from potential toreality—thereby strengthening the means of
implementation and the Global Partnership for Sustainable
Development. By adopting this approach, we cancontribute to SDGs that have the largest societal impact aswell as to the systemic, collaborative change required todeliver SDG 17 (Partnerships for the Goals). Although thischapter primarily focuses on SDGs that drive social impact,
the pursuit of societal impact is often holistic. Therefore,
the examples presented here will also highlight secondary
contributions to planetary objectives where relevant.

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SDG ACCELERATOR

A Digital Revolution That Leaves No One Behind

SDGs in Focus

Technology has the potential to supercharge much-needed
progress toward SDG targets. BCG’s research shows that
digital solutions have already affected 70% of the 169 SDG
targets, but the impact can stretch far beyond individual
use cases. In fact, in comparing countries within the same
income group, we have found that advances in digital
infrastructure realize up to 40% faster progress on the SDGs.
The opportunities within digital are plentiful and areapplicable across many of the SDGs—from enhancing
digital public infrastructure to improving public service
delivery to breaking down access barriers through thepower of mobility and apps.
In 2023, the Learning Passport initiative directly enhanced
SDG 4 (Quality Education) by reaching 55 million learners
with digital education tools. (See “Case Study: Embracing
Digital Solutions for Education.”) Simultaneously, it indirectly
fostered SDG 10 (Reduced Inequalities) by ensuring inclusive
access to these resources, particularly for marginalized
learners. In addition, the collaborative efforts between
UNICEF and Microsoft, facilitated by BCG, exemplify thespirit of SDG 17 (Partnerships for the Goals) by uniting
diverse entities to achieve a common educational mission.

BOSTON CONSULTING GROUPDRIVING SOCIAL IMPACT | 2023 ANNUAL SUSTAINABILITY REPORT

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Case Study
Embracing Digital Solutions for Education

Partner’s Challenge
In an increasingly digital age, a digital divide continues to
exacerbate inequality across the world. Globally, 1.3 billion
children do not have access to the internet, especially inlower- and middle-income countries and rural areas. The
inequity is further compounded by the fact that 127 million
children are not in school due to disasters, conflict, andother emergencies.
Learning Passport, a collaborative project of UNICEF,
Microsoft, and the University of Cambridge, uses digital
tools to tackle these daunting educational challenges. Its
goal is to reach 55 million learners over the next decade,helping to bridge the world’s educational inequalities andthe digital divide.
BCG’s Contribution
In 2019 and again in 2023, BCG helped expand Learning
Passport’s digital reach and impact. Key objectives that
BCG helped advance included the following:

Potential Unlocked
BCG’s strategy involves extending Learning Passport’s
digital reach to about 55 million users over the next
decade. This strategy is a testament to the power of digitaltransformation in education and contributes directly to
SDG 4 (Quality Education).
Digital Metrics and Impact. The expanded digital
metrics permit a broad view of platform usage, engagement,
and educational outcomes, addressing digital inequalities
in line with SDG 10 (Reduced Inequalities). The strategy
underscores the importance of digital access and equity in
education, particularly for marginalized learners.
Future Digital Insights and Directions. The postimplementation phase highlights the critical need foradaptable digital solutions in diverse educational contexts,aligning with SDG 17 (Partnerships for the Goals). The
success of Learning Passport in 33 countries offers a
blueprint for future digital educational initiatives.

• Digital Use Case Prioritization. Develop criteria toprioritize digital solutions for diverse types of learners,
emphasizing the hardest-to-reach groups.
• Digital Delivery Model Testing. Analyze and refine
digital delivery models in Mexico and India to overcome
expansion barriers and optimize digital resource
allocation.
• Digital Stakeholder Management. Strengthen
UNICEF’s capabilities in managing digital partnerships,
and enhance engagement with technology andeducation sectors.
Watch how UNICEF is bridging social divides withdigital tools• Digital Success Recalibration. Redefine digital
success metrics, including user engagement and digital
educational outcomes.

1.3B

127M

55M

children lack internet
accesschildren aren’t in school
because of crises in theirregionusers that Learning
Passport intends to reachover the next decade

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SDG ACCELERATOR

Local Collaboration for Global Impact

SDGs in Focus

We know from experience that collaboration is the key
to successful change. When it comes to critical global
priorities such as the SDGs, stakeholders can’t go far unlessthey go together—all of them. In regions of greatest need,
optimal impact depends on localized collaboration.
In-country collaborations—in which public, private, andsocial sector players join forces to tackle critical problems—
offer several powerful benefits. First, they encourage
stakeholders from a variety of groups to pool their resources,
especially financial resources, which in turn enables bigger
ambitions and amplified impact. Second, they invite
knowledge sharing, giving various participants—such as
funders, country organizations, and local communities—
the opportunity to bring their expertise to bear on
challenges and help strengthen outcomes. Third,
collaboration ensures that different organizations andinitiatives aren’t duplicating efforts. Fourth, and perhaps
most important, local collaboration typically allows
programs to maintain a sharper focus on the beneficiaryin question, leading to much greater effectiveness.

BOSTON CONSULTING GROUPOne example of how BCG addressed this problem in 2023
is our collaboration with UN Global Compact, in which wehelped our clients deliver progress for SDG 13 (Climate
Action) by assisting 50 CEOs in committing to impactful
climate measures at COP27. (See “Case Study: Collaboration
for Global Impact.”) The climate benefits of this work areclear, but the collaboration also facilitated progress on SDG
5 (Gender Equality), SDG 8 (Decent Work and Economic
Growth), and SDG 9 (Industry, Innovation, and Infrastructure)by helping to create a vision of inclusive, sustainable growth.
Finally, this effort also aligns with SDG 17 (Partnerships for
the Goals).

SDGs in Focus

Another example involves our work with one of the world’s
biggest nonprofit foundations. (See “Case Study: Creating
Value in and Altering Perceptions of Pastoral Communities.”)
It aimed to shift perceptions about pastoralists in Africa
from a view of that saw them primarily as passive aid
recipients to one that recognized them as dynamic
contributors to Africa’s growth. This work also contributed
to Sustainable Development Goals SDG 8 (Decent Workand Economic Growth) and SDG 10 (Reduced Inequalities).

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Case Study
Collaboration for Global Impact

Partner’s Challenge
The UN Global Compact identified a crucial need forcollaboration among African businesses to address global
and continental challenges. That meant bringing together
prominent African business leaders and their companies tocollectively identify and address the region’s pressing
issues, with the goal of providing leadership for broader,global impact.
BCG’s Contribution
In 2020 and 2021, BCG supported the Global Compact byhelping to develop its global strategy, including its strategy
for Africa, highlighting the unique role that the Compact
plays in convening leaders on key issues. One result of thatwork was a targeted approach to establishing the Africa
Business Leaders Coalition (ABLC). BCG’s strategic
foresight and operational acumen were instrumental inbringing together businesses that operated in more than
50 African countries, collectively generating $150 billion inrevenue and employing over 1 million people, thus
providing a genuine platform for effective regional
collaboration and global impact.
BCG’s role extended to devising the ABLC’s strategy andoperations and supporting the establishment of its
secretariat to ensure efficient coordination andimplementation of initiatives. This work included engaging
actively with ABLC members to reach accord on the“Africa Business Leaders’ Climate Statement,” which thecoalition unveiled at COP27 in Sharm el-Sheikh, Egypt,
and included commitments from more than 50 CEOs on
climate mitigation, adaptation, resilience, and finance, andon the just transition.
To enable progress on these commitments, BCG built anddelivered a learning program for ABLC CEOs and theirsustainability leads focusing on the “what,” “why,” and “how”
of fulfilling their pledges, while also creating a framework for
capturing actions that companies have undertaken.

BOSTON CONSULTING GROUP

Watch how the Africa Business Leaders Coalition is
working toward a greener, more equitable future

Potential Unlocked
The ABLC’s focus on climate action, particularly in thecontext of COP27, highlights the power of collaboration for
global impact. The work has already notched several
notable achievements:• Thirty-nine companies have set ambitious targets forrenewable energy use.
• Twenty-seven companies are actively decarbonizing theiroperations and transparently disclosing emissions data.
• Thirty-four companies are integrating climate risks into
their strategic planning.
These actions demonstrate the coalition’s commitment toproducing measurable impacts that benefit the region andcontribute to global sustainability and climate goals.
Going forward, the ABLC will continue to focus on climate
commitments, but it will also expand its activities into thearea of gender equality and explore other new focus areas.
The aspiration is to increase the coalition’s size, enhance
its role as a genuine and comprehensive pan-African force
for action, and amplify Africa’s voice in global forums.

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Case Study
Creating Value in and Altering Perceptions of Pastoral Communities

Partner’s Challenge
One of the world’s largest foundations, known for its longstanding commitment to agricultural development,
particularly in sub-Saharan Africa, embarked on an initiative
to improve awareness of the pivotal role that pastoral
communities play in Africa. The opportunity for positivesocial impact was considerable, as the work involved
enhancing pastoral communities’ economic resilience andlivelihoods by improving their access to markets, resources,
and support systems. Meeting the challenge required
addressing the data gap, debunking myths about
pastoralism, and thus paving the way to optimize their vitalrole in economic and food security advancements.
BCG’s Contribution
In collaboration with Strathmore University and the
University of Florida Livestock Systems Innovations Lab, BCG
conducted a comprehensive market analysis. Our findings
revealed eagerness for collaboration between pastoralists
and the private sector but also identified barriers, including
product-market misalignment and external market obstacles.
BCG’s analysis led to the identification of key leverage points,
including direct private sector collaboration and advocacy forgovernment support.
BCG’s strategy included two noteworthy programs:• Pathfinder Pilots. Working with companies to develop
business models that would benefit both companies
and pastoralists promised profitability and scalability. In
Ethiopia, a pilot Pathfinder project showcased a verticallyintegrated approach to streamlining the value chain.
• Platform Development. BCG, in collaboration with
Strathmore University, is supporting the African UnionInterAfrican Bureau for Animal Resources (AU-IBAR)
to launch the African Pastoral Markets Development(APMD) Platform. This initiative aims to integrate thepastoral private sector into Africa’s livestock markets,
supported by data-driven policy and investment
coordination.

BOSTON CONSULTING GROUP

$15M

to be allocated to pastoral communities
from 2022 through 2024

Potential Unlocked
The foundation allocated more than $15 million for2022 through 2024. Expected outcomes for the pastoral
communities include better-quality livestock supply,
improved livelihoods, and increased resilience to changes
that are beyond their control. For instance, in Kenya, theprogram could help increase pastoral household incomes
threefold and improve nutrition while reducing greenhousegas emissions.
The vision for the APMT initiative and Pathfinders includes
broadening the project’s scope to cover more areas andexpanding the coalition to create a comprehensive panAfrican entity. The initiative is in a strategic position toamplify Africa’s voice globally, fostering collaboration amongleading African companies and international partners.

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SDG ACCELERATOR

The Power of the Private Sector

SDGs in Focus

Achieving the SDGs without the private sector would be
impossible. Private sector involvement in social andplanetary issues, especially when the results are profitable,
can help provide the scale necessary to achieve our goals
on time. It can also serve as a source of significant
competitive advantage for companies.
Research shows that when companies invest appropriately
in sustainability issues that are material to their business,they can enhance shareholder returns by up to 5%,
increase revenues, and reduce their cost of capital. Whenthey go beyond compliance to societal contribution, they
are also in a better position to seize new opportunities
such as attracting the best talent, expanding into newmarkets, and mitigating risks.

BOSTON CONSULTING GROUP

Increased private sector investment permits faster change
and opens the way to provide or raise funds with the rigor
and diligence expected of for-profit organizations. The goal
is not to undertake a corporate social responsibility projectcapped by the restraints of a pro bono model. Long-lastingchange requires a shift in both mindset and operating
model—one that takes societal impact out of a nice-to-dobucket and instead integrates these considerations into thecore of the business.
Although there is still much to do in the private sector, wehave seen inspiring examples of progress across industries
and geographies. That’s why we’re proud to present a casestudy involving our work with a leading global retail group.
(See “Case Study: A Leading Retail Group and the Fight
Against Food Waste in Australia.”) Here, we collaborated
with our client to tackle food waste, delivering directcontributions to SDG 2 (Zero Hunger) and SDG 12(Responsible Consumption and Production). And given thecontribution of food waste to global greenhouse gas (GHG)
emissions, this initiative is likely to unlock second-order
benefits to SDG 13 (Climate Action).

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Case Study
A Leading Retail Group and the Fight Against Food Waste in Australia
Partner’s Challenge
A leading global retail group is tackling the critical issue
of food waste in Australia, which incurs an annual costof AU$36.6 billion to the economy. With 30% of fruits
and vegetables wasted due to surplus or failure to meetstandards, and with food waste contributing 8% to 10%
of GHG emissions, the challenge is both environmental
and economic.
Farmers frequently generate excess supply but lack thenecessary relationships with buyers and the necessarymeans to efficiently transact and ship their goods, resulting
in viable produce being discarded into landfills, even
as approximately 750 million people face food insecurity
globally. The retail group is extending its impact bycollaborating with suppliers to address this problem.
BCG’s Contribution
In collaboration with the retail group, BCG X embarked ona nine-month project to build a sustainable solution. This
involved creating a new business, a profit-for-purpose digitalmarketplace that enables the transaction, donation, andlogistical movement of wholesale produce, simplifying theprocess for farmers to sell or donate surplus goods.

Potential Unlocked
By the end of 2028, this new business model is projected toreduce upstream fruit and vegetable waste by 15%, cut GHG
emissions by 10%, and provide up to 370 million meals perannum to those experiencing food insecurity.
Enhancing the efficiency of food rescue operations, theplatform increases the availability of nutritious produce
for food rescue organizations, thereby reducing foodinsecurity and ensuring that more individuals have accessto essential nutrients. As of our most recent update in April
2024, this newly created enterprise surpassed 1 million
meals distributed and has successfully onboarded all major
food rescue organizations in the country. As the digitalmarketplace continues to add buyers and suppliers, it
expands its efforts to effectively cover the market andmaximize its reach and impact.

This platform covers three core services:• Match. Facilitate transactions among buyers and sellers
across Australia, providing opportunities to sell excess or
nonstandard produce.
• Move. Offer streamlined, cost-effective logistics
solutions for produce transportation.
• Amplify. Generate insights and foster connections forfood rescue innovation and policy change.

15%

10%

370M

projected reductionof upstream fruit andvegetable waste

reduction in greenhousegas emission

meals provided per annum
to those experiencing foodinsecurity

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SDG ACCELERATOR

Getting Creative to Close Financing Gaps

SDGs in Focus

Enormous amounts of funding are needed to meaningfully
advance the SDGs and indeed to achieve real progress
across our SDG accelerators. Although stakeholders havealready mobilized billions of dollars in this cause, theremaining gap is estimated at $3.9 trillion annually. But
the challenge is not just figuring out how to reduce theshortfall in funds; it’s also knowing how to deploy the funds
for maximum speed and impact.
The need for direct investment across many SDG focus
areas is clear, but we also see huge potential in blended
finance to attract and mobilize crucial private capital. If
actors across the investment ecosystem can harness theircreativity, the potential for new models is as exciting as itis essential. That why we’re proud to showcase our workwith a prominent US-based retail corporation that directly
contributes to SDG 17 (Partnerships for the Goals) throughthe finance it unlocks, and also provides co-benefits to
SDG 5 (Gender Equality), SDG 8 (Decent Work andEconomic Growth) and SDG 10 (Reduced Inequalities).
(See “Case Study: Empowering Minority- and WomenOwned Businesses for Sustainable Growth.”)BOSTON CONSULTING GROUPDRIVING SOCIAL IMPACT | 2023 ANNUAL SUSTAINABILITY REPORT

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Case Study
Empowering Minority- and Women-Owned Businesses for Sustainable GrowthPartner’s Challenge
In the US, structural inequality has raised barriers to thesuccess of underrepresented businesses. Aside from being
unjust, the situation deprives global economies ofopportunities to capture greater growth.
A prominent retail corporation that is committed tochampioning diversity, equity, and inclusion (DEI)
embarked on an initiative to further expand its programs
for accelerating the growth of underrepresented
businesses. The initiative builds on the retailer’sestablished workshop program and a comprehensive
diversity campaign.

$30M

directly invested in businesses toprovide access to capital, mentorship,and markets

BCG’s Contribution
To help our client, BCG first performed an assessment tounderstand what underrepresented businesses need inorder to unlock accelerated and sustainable growth. The
primary challenges we identified were access to capital,
access to markets and customers, and access tomentorship and expertise.
Informed by these findings, we helped design acomprehensive response that included the creation andlaunch of an innovative, jointly funded initiative with amulti-hundred-million-dollar investment aimed at
supporting underrepresented and underserved businesses.
The initiative is designed to accelerate the growth of suchbusinesses by directly investing $30 million to provide
access to capital, mentorship, and markets, complementing
and building on the corporation’s current diversity andinclusion efforts.
Potential Unlocked
BCG assisted the corporation in expanding its support
offerings to include access to capital and coaching to drive
toward sustainable and scalable business models.
This initiative, with a ten-year investment and return period,
will give underrepresented businesses access to critical andpatient capital, enabling them to grow sustainably. It also
marks a significant milestone, as the corporation became
one of the first retailers to directly invest in a comprehensive
effort of this sort.
Beyond financial support, the program also provides
underrepresented businesses with further access to asupportive ecosystem of partners that offer business strategy
assistance, financial guidance, and operational support.
Viewed as a whole, this case not only demonstrates how thecorporation addresses DEI in its supply chain, but also
exemplifies how a company can create a more equitable andsustainable future for people, planet, and community.

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SDG ACCELERATOR

Working to Bridge Social Divides

SDGs in Focus

Public sector organizations exert enormous influence on
the lives and livelihoods of individuals, communities, and,ultimately, countries. For that reason, BCG’s work withpublic sector clients and partners is of vital importance toour objective of overcoming social divides and enhancing
equity and opportunity for disadvantaged populations.
This year, we have been working around the globe on
various projects designed to improve equity and quality oflife across many dimensions.

SDGs in Focus

Meanwhile, our work for a Southeast Asian government tounlock finance from development finance institutions andprivate sector entities for key sectors such as automotive
and electronics. (See “Enabling Economic Growth inSoutheast Asia.”) In this instance, the second-order impactsof generating more economic growth contribute to SDG 1(No Poverty), SDG 5 (Gender Equality), SDG 9 (Industry,Innovation, and Infrastructure), and SDG 8 (Decent Workand Economic Growth).

From assisting in an effort to future-proof the workforce in
Puerto Rico to pulling the levers of growth in a Southeast
Asian country, these initiatives have the potential to bridgesocial divides while also unlocking prosperity and dialogue
between diverse actors. In Puerto Rico, we delivered on
SDG 4 (Quality Education) by transforming the educational
system through partnerships across the sector, and on SDG
8 (Decent Work and Economic Growth) by developing
additional skilled workers. (See “Case Study: A 21stCentury Workforce Strategy for Puerto Rico.”) Our work
also has potential long-term benefits for SDG 9 (Industry,Innovation, and Infrastructure) as these workers begin todeliver a more prosperous country.

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Case Study
A 21st-Century Workforce Strategy for Puerto RicoPartner’s Challenge
Puerto Rico faces a significant challenge in readying its
workforce to meet the needs of the 21st century. The region
has struggled to align educational outcomes with theburgeoning demands of businesses, particularly with regard
to roles in engineering and computer science. This gap stifles
economic growth and limits the capacity for innovation andsustainable development within the island’s communities.
BCG’s Contribution
We supported the Puerto Rican government in developing
and implementing a strategic plan that aims to turn Puerto
Rico into a top region for 21st-century talent. Achievingthat goal means adding 50,000 additional skilled workers
by 2033.

Watch how Puerto Rico is building a tech talent
ecosystem for economic development

We led the implementation of four transformative initiatives:• K-12 Lighthouses. Invest in pilot schools to provide
early career exposure and skill acquisition aroundcomputer science and applied technologies to prep
students for technical degrees and careers.
• Expansion of Short-Form Credentials. Support
and attract coding academies, bootcamps, and othershort-form credential providers to deliver training andemployment placement in high-demand roles.
• Workforce Service for Employers. Support newand existing priority employers in navigating all of theirtalent needs in Puerto Rico, from recruiting and hiring totraining and upskilling.
• Enhancing Higher Education Through Stackable
Degrees. Redesign bachelor’s degree programs to
update curricula and offer credentials throughout the
four- to five-year educational journey—for example,
certificates after the first year and associate’s degrees
after the second.

BOSTON CONSULTING GROUP

Potential UnlockedLess than a year into our concerted efforts, the impact
is palpable:• An executive order now mandates computer scienceeducation in high schools, a testament to the systemicchange underway.
• Hundreds of students are engaged in short-form
credential programs, equipping them with vital, marketrelevant skills.
• Recognizing the shift, top universities now offer dozens
of updated programs, including certificates and associatedegrees.
These strides are significant milestones toward unlocking
the full potential of Puerto Rico’s workforce, propelling theisland into a future where technology and talent synergize
to create a thriving socioeconomic landscape.
We can measure the initiative’s success through increased
interest in computer science careers among K-12 students,
through rising enrollment in educational programs, andthrough the placement of skilled workers in modern roles.
Continuous assessment and adaptation of strategies will
ensure the realization of this vision.

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Case Study
Enabling Economic Growth in Southeast Asia

Partner’s ChallengeCountries across Southeast Asia, including Cambodia, face
several macroeconomic challenges, including:• Infrastructure deficit in urban and rural infrastructure• Limited employment in higher-value add sectors such as
manufacturing• Slow economic recovery and growth following COVID-19.
BCG’s Contribution
Our approach in this example involved leading initiatives toprioritize and activate investment and financing pipelines,
spotlighting key opportunities for growth. In this regard, we
created long-term development roadmaps, upskilling
initiatives, and working tools and playbooks for future use.
Potential Unlocked
We project that our work will contribute to an inward
investment increase of $500 million in the automotive
sector and $1.6 billion in the electronics sectors, alongsidesignificant job creation.
The vision for sustained impact includes the following:• Large-scale job creation, especially for marginalized
communities, with more than 50% of new roles likely
to be held by women, leading to further economic
empowerment$500M
increased investment in theautomotive sector$1.6B

increased investment in theelectronics sector50%

of new roles in the targeted sectors
likely to be held by women• Increased exports and industrialization, fostering
economic growth• Higher national income and an overall reduction in poverty

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SDG ACCELERATOR

Proactive Adaptation and Resilience

SDGs in Focus

The risks posed by Earth’s changing climate are global andcut across all of our SDG accelerators. Vulnerable
populations, however, are especially likely to feel its
adverse effects. The good news is that by acting to increase
resilience, governments and corporations can ensure thatthey are prepared to safeguard populations andenvironments from climate risk, including extreme heat,floods, droughts, and rising sea levels. This is the goal of
BCG’s adaptation and resilience work.
The World Bank warns that climate change could force 130
million more people into poverty within a decade. This
prospect poses an obvious threat to further progress on theSDGs, and it demands a proactive, creative, data-backed
approach to managing today’s risks and increasing resiliencein the face of tomorrow’s. BCG’s social impact and climate
and sustainability teams excel at responding to challenges
that arise where people and planet concerns intersect.
For example, BCG was proud to partner with a Southeast
Asian government in 2023 to address this problem. (See“Case Study: National Adaptation Plan in Southeast Asia.”)This case study, involving work at a national scale, helped
to deliver SDG 13 (Climate Action) and SDG 17(Partnerships for the Goals). But working at such a highlevel has many systemic co-benefits too, such as
safeguarding the assets of the region, in keeping with SDG
1 (No Poverty), and enhancing the climate resilience ofespecially coastal communities, an aspect of SDG 11(Sustainable Cities and Communities). Finally, ourintegrated approach to adaptation, which targets sectors
such as agriculture, is likely to contribute to SDG 15 (Lifeon Land).

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Case Study
National Adaptation Plan in Southeast Asia

Partner’s Challenge
Adaptation and resilience planning is high on the global
agenda. At COP28, participating governments agreed on the
Global Goal on Adaptation, reinforcing the urgent need for
all countries to increase their efforts and begin to
implement national adaptation plans (NAPs) by 2030. BCG
supported the development of the first NAP, working with aSoutheast Asian country that has extensive coastal exposure
and is highly vulnerable to the impact of climate change.

BCG’s Contribution
BCG applied an integrated adaptation and resilience
approach, powered by our Climate Impact AI, to develop amultihazard, multisectoral NAP. We supplemented thisNAP with a comprehensive implementation roadmap andknowledge toolkit to ensure effective execution across all
sectors and regions.

Over the past ten years, extreme climate events in the
country have inflicted economic losses and damage
equivalent to about twice the country’s education budget.
It urgently needed to develop a climate adaptation andresilience strategy to safeguard its citizenry, ecosystems,
and economy.

• Deploy climate science and analytics to enable datadriven decisions. BCG’s Climate Impact AI modeled
future scenarios to understand drivers of climate impact,
pinpoint the most vulnerable regions, and guide national
priorities and approaches to adaptation and resilience.

Guiding principles included the following:• Identify priority sectors to target adaptive capacity
for maximum impact. We developed cross-cutting
solutions for eight priority sectors, including agriculture,
population displacement, migration, and energy.
• Promote stakeholder involvement through a collaborative
approach. We conducted more than 20 engagementswith over 300 representatives from academia, civilsociety, local organizations, and the private sector,
driving collective ownership of the NAP process.
Impact Realized
The development and implementation of the NAP will
enhance the nation’s resilience to climate change. In one
region alone, it will contribute to safeguarding 200,000 lives
and $2 billion in physical assets. This best-in-class NAP
serves as an example for other nations to follow as they
accelerate their adaptation and resilience efforts, cementing
the country’s status as a world leader in this area.

8

200K

$2B

priority sectors identified

lives safeguardedin physical assets safeguarded

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The Importance of Community Impact
Large-scale transformational impact is clearly a priority forour social impact teams, but we do not undertake global
efforts at the cost of forgoing local community-focusedwork. Projects of the latter type are important for tangible
impact and often involve collaboration with local partners
that have vital context and expertise about the specificchallenges confronting marginalized groups, communities,
and geographies.
A good example of our efforts in this area is our North
America Center for Inclusion and Equity, which continues
to partner with leading organizations to help build inclusive
cultures, deliver social impact, create business value, anddrive measurable and sustainable change.
BCG partnered with the Capital One Insights Center tobetter understand the conditions necessary to boost thewealth-generating potential of business ownership forBlack and Hispanic entrepreneurs. We conducted surveys
with more than 1,000 current and former business owners
and residents in Richmond, Virginia, and engaged in onthe-ground conversations with 21 community organizations
that provide support to local business owners.
The challenges we observed were significant, but we also
identified a clear path for change. The research suggeststhat the public and private sectors can support minority
business owners by offering increased access to startup
and growth capital, a more coordinated local businessecosystem, and greater access to capabilities and expertise.
Our recommendations help ensure access to resources,
empowerment, success, and wealth generation.

The Power of Collective Action forSocial Impact
BCG’s extensive network of clients and partners uniquely
positions us to drive impact where it’s needed. The role wecan play as a convenor at our own events or as acontributor to others’ events is important in helping us
connect with public, private, and social sector leaders thatshare the same goals as us: advancing progress of the
SDGs. Often, BCG’s expertise across many practice areas
helps us turn bold ideas into exponential, holistic impact,
as detailed on page 12.

PREPARE Call to Action to the Private Sector
At COP28, US Special Presidential Envoy for Climate, John
Kerry, and USAID Administrator, Samantha Power,
announced that BCG had responded to the U.S. President’s
Emergency Plan for Adaptation and Resilience (PREPARE)
Call to Action—a growing coalition of 31 major private
sector players committed to advancing adaptation andresilience in developing countries. As part of its
contribution, BCG launched a study, From Risk to Reward:
The Business Imperative to Finance Climate Adaptation andResilience, written in collaboration with the Global
Resilience Partnership and USAID, that details the range ofopportunities and financial benefits available to the private
sector from financing adaptation and resilience. We
launched and presented the report at COP28 at the US
Center and at a technical panel. Insights from this report
are shaping how governments engage with the private
sector to mobilize financing globally, after being featured in
USAID Administrator Power’s recent climate speech to theprivate sector and other private sector campaigns.
Save the Children
BCG has been a proud partner of Save the Children since2006, collaborating on a wide range of strategic, operational,
and organizational issues. We have partnered with theorganization across many key social and planetary concerns,
including our collaboration to design an innovative digitalcompanion for children and caregivers in the aftermath of the
Ukraine refugee crisis. We also recently collaborated on ashort article about the impact of climate change on children’s
educational access: Harnessing Education to Build Climate
Resistance. Finally, BCG seconded two experts to Save theChildren in 2023, demonstrating our dedication to collaboratebeyond the boundaries of our firm to drive social impact.
World Economic ForumIn addition to the impact we deliver holistically with our
Climate & Sustainability practice, BCG has a long-standing
relationship with World Economic Forum (WEF) that goesbeyond engaging with the organization’s global gatherings,
such as the Annual Meeting in Davos and the Annual
Meeting of the New Champions in China. We are regularcollaborators across a broad range of topics, and our
projects are widely published. In 2023, our social impact
teams launched two publications with WEF: Tech for Climate
Adaptation and Accelerating a Green and Just Transition.

Our Social Impact practice’s contribution is unique. From ourposition as Principal Strategy and Action Partner at COP28
to our extensive event presence at UN General Assembly
Week and New York Climate Week, we fully recognize theimportance of connecting with the international community
to take stock of where we currently stand and where wecan progress together. Although the particular topic ofconversation may change, our commitment remains resolute.

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COP 28 and UN High-Level Champions
BCG was proud to serve as the Principal Strategy andAction Partner to COP28, the UN Climate Change
Conference, spanning not only topics related to nature,climate (including adaptation and resilience), and energy,
but also the ways in which we can deliver a just, equitabletransition. Although COP is primarily about climate change,
the outcomes drive significant positive social impact, too.
From a social impact perspective, COP28 saw us host andshare stages and agendas across many key topics.
On adaption and resilience, we observed growing global
momentum for the Sharm el-Sheikh Adaptation Agenda(SAA), the first global solutions agenda for adaptation andresilience to detail targets that the world must achieve by
2030 to enhance resilience for vulnerable people globally.
In addition to helping develop the SAA for COP27, as partof our ongoing collaboration with the UN Climate Change
High-Level Champions, BCG assisted in operationalizing
the SAA and report on its progress for COP28. We
contributed to the assessment of global progress throughengagement with 50+ public, private, and social sector
stakeholders. We also helped convene task forcescomprising 20+ major organizations to drive locally led
implementation of the Agenda. And we helped write thefirst annual SAA implementation report for COP28, whichcharted progress and identified key gaps in accelerating
adaptation and resilience action across food, water andnature, health, finance, and other areas. We also took adeep dive into the infrastructure system through apublication titled “Adaptation and Resilience Through Land
Transport Infrastructure Systems,” launched incollaboration with the UN High-Level Champions, thatexamines why a life-cycle-based approach is critical for
sectors such as transportation infrastructure.

Our work with the UN High-Level Champions builds on ourprevious work for COP27, where we explored adaptationneeds in four key areas:• 2030 Adaptation Outcomes for Adaptation andResilience Finance• 2030 Adaptation Outcomes for Adaptation andResilience Planning• 2030 Adaptation Outcomes for Food and Agriculture• 2030 Adaptation Outcomes for Human Settlements
BCG also hosted a number of events at regional climate
weeks and COP28 that convened major players from theprivate and public sectors to address the criticality of crosssector collaboration in advancing adaptation and resilience
action. This includes BCG’s flagship adaptation andresilience event, Planning Through to Action; the reportand event launch of the Southeast Asia Climate Adaptation
and Resilience Alliance, of which BCG is a co-founding
member along with the World Wide Fund for Nature(WWF) and ThinkCity; and an industry panel androundtable on adaptation and resilience for land transport
infrastructure.
In addition, BCG hosted events on social banking at which
we launched our report Banks Can Deliver Both Social Impact
and Profits. Here’s How and hosted a workshop andnetworking event alongside Barclays and Ceres, focusing
on how financial institutions can ensure just transitions
through cleantech financing and green jobs.

Munich - Platinion

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Articulating Our Impact to the WorldIn addition to driving impact through our client work and seat-at-the-table strategy, we amplify our impact via our
extensive thought leadership program. In 2023, we shared reports, articles, blogs, podcasts, and videos on topics, sectors,
and geographies across our seven impact areas:
Climate Risk and Adaptation and Resilience
We Can’t Meet the SDGs
Without Climate
Adaptation and Resilience

Financing Climate
Adaptation and Resilience
Is Good for Business andthe World

Safeguarding Coastal Cities
from Climate Change

Mangroves, Storm Walls,
and Other Ways to Protect
Coasts from Climate
ChangeThe Sustainable
Development Goals Matter
More Than Ever

Unveiling the Shadow
EconomyEmbedding Health
Equity into the Heart ofBiopharma

How Public-Health Leaders
Can Fight the Next
Pandemic

Economic Development

Global Health

The Future of Digital
HealthFood, Hunger, and Agriculture
COP28 Action Agenda on
Regenerative Landscapes:
Accelerating the Transition

Rethinking Collaboration toPower SDG Progress

Making Regenerative
Agriculture Profitable for
US Farmers

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Education and Skilling
Connecticut’s Unspoken
Crisis: Getting Young
People Back on Track

A Fair Chance for Job
Candidates with Criminal
Records

Ten Lessons for
Universities to Prepare
Students for Long-Term
Success

The Next Frontier ofWorkplace Culture

Diversity, Equity, and Inclusion
Breaking Down Funding
Barriers for Asian
American and PacificIslander EntrepreneursYour Workforce Includes
People with Disabilities.
Does Your People Strategy?

Women in Tech

Humanitarian Crises

BOSTON CONSULTING GROUP

How the Private Sector
Can Help Strengthen the
Global Humanitarian
SystemUnlocking the Potential ofPrivate Sector’s
Nonfinancial Contributions
to the Humanitarian
System

Improving Reporting andUniting Efforts to Close the
Humanitarian Funding andResourcing Gap

Bring Climate Adaptation
and Resilience into theCore of Humanitarian
Planning and Action

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INTRODUCTION

Protecting Our Planet

DRIVING SOCIAL IMPACTPROTECTING OUR PLANETEMPOWERING OUR PEOPLE

2023 in Numbers

projected reduction in
CO2 emissions by 2030,
implemented by ourclients with our supportclients that 4,300
BCG consultants
supported to protect
our planet

Delivered 1,500+ climate and sustainability
projects in 2023, up 56% since 2022
+56%
1,530
780

980

360
2021

2022

2023

Invested afurther $240
million into
protecting ourplanet in 2023
and are now
more than 1/3of the way to
our 2030 goalof $2 billion5

reduction in overall
emissions intensity by 2025,
a target that we remain on
track to achieve

$2B

$750
milliontargetby 20302030
targetInvestedsince 2020

BOSTON
CONSULTINGPROMOTINGRESPONSIBLE
PRACTICES| 2023 ANNUAL SUSTAINABILITY REPORT
5.
IncludesconsultingGROUP
support, external secondments, net
zero partnershipcosts, BUSINESS
and marketing
initiatives.

36

APPENDIX

2020

of our top 100 Energy
and Industrial Goods
clients took on climate
and sustainability cases~50%

PROMOTING RESPONSIBLE BUSINESS PRACTICES

1GT+ 700+ 70%

E

conomic headwinds, geopolitical upheaval, andgreater impacts from climate change formed the
backdrop against which business and government
leaders around the world faced tough decisions in 2023.
From the global stocktake at COP28, we also learned thatthe world is not making progress at the necessary speed
and scale on climate and sustainability. However, 2023 also
saw green technologies set new records. Global annual
renewable capacity increased by almost 50%, the fastest
pace in two decades, and deforestation in the Amazon fellby nearly 50% in 2023 compared with 2022.
In the face of these challenges and opportunities, BCG
continued to increase its focus with decision makers acrosssectors to deliver significant value for business, government,
and society—unlocking the potential of those who advancethe world. We’re proud to have continued supporting ourpartners in implementing action plans to reduce emissions
by more than 1 gigaton by 2030,6 which is equivalent to the
combined annual emissions of Germany and the UK.
In 2023, we continued to focus on the critical drivers forachieving net zero and sustainable systems. We partneredwith a multitude of industries, including high-emitting andhard-to-abate sectors, and collaborated with governments
and financial institutions. As technology and scienceenhanced our ability to understand and respond to climate
and sustainability challenges, our teams moved in step withthose developments to deliver new solutions across planetary
boundaries. We also collaborated with organizations to help
scale up their pioneering carbon removal technology.
Increasingly, our Climate & Sustainability practice focuses
on working with clients on end-to-end transformation,
supporting new business models that are sustainable andprofitable. In fact, we were recognized as a Leader inWorldwide ESG/Sustainability Strategy Consulting Services
in 2023 by IDC Marketplace, an eminent global vendor
assessor. According to its report, “BCG’s capabilities inaddressing the intersections of environmental and social
issues allows the company to deploy solutions that willencompass the holistic nature of corporate sustainability.”

BCG’s Climate & Sustainability practice was our fastestgrowing practice globally in 2023. We expanded its portfolio
to include more than 1,500 projects, an increase of morethan 50% since last year. In 2023, the practice worked with
700 clients, up from 240 clients in 2020. We feel a sense ofaccomplishment working with our diverse clients to develop
plans to radically reduce emissions, mitigate risk throughadaptation and resilience, and support the sustainability of
our natural resources and food systems. In 2023 alone, we
worked with roughly 70% of top 100 Energy and Industrial
Goods clients on climate and sustainability solutions, withsix core areas of focus Each focus area contributes toaccelerating the achievement of the UN Sustainable
Development Goals (SDGs). The SDGs in Focus sidebars,
found throughout this chapter, highlight how each casestudy does this.
• Sustainable strategy and transformation• Decarbonization• Sustainable operations• Food and nature-based solutions• Green technology• Finance and investingIn addition to these areas, we are developing our expertiseon the topic of green business building. This area will focus
on climate innovation, technology, and growth, shaping
business enterprise as a vehicle to solve climate andbiodiversity crises.

6. This figure is an estimate that uses best professional judgement. For clients where BCG has provided implementation support, it aggregates theemissions reductions projected by 2030.
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BCG is investing in promising cutting-edge solutions, too. So
far, our climate and sustainability-specific investments todrive climate action total $750 million of a $2 billion
commitment this decade. These investments, which are in
addition to investments that our Social Impact practice has
made, span key stakeholders shaping the sustainability
journey, including but not limited to global initiatives such as
CDP (formerly Carbon Disclosure Project), Science Based
Targets initiative (SBTi) and the World Economic Forum(WEF); the UN and other multilateral organizations; and, ofcourse, our diverse client base. We also demonstrated ourstrong belief in collective action through our ongoing
partnership with the UN High-Level Climate Champions,and by serving as the principal strategy and action partner
to the COP28 Presidency.
BCG recognizes the complexity of this work and theimportance of ensuring that we influence the planet in apositive way that aligns with the Paris Agreement’s goals.
We have embedded clear guidelines in the firm-wide
selection process that screens all prospective client work
at BCG to ensure that our work is in line with our climate
policies and will have a positive impact.
We also understand the need to balance environmental
concerns, such as emissions and pollution reduction, withsocial considerations, such as a just transition, gender
equity, energy access, and economic development. We willcontinue to refine our policies and approach as we deepen
our engagement. By treating our climate and sustainability
agenda as a North Star, we can help organizations
work toward a sustainable future for themselves while
also helping to secure the future of our planet. (See thesidebars “Sustainability Strategy and Transformation,”“Decarbonization: Unlocking the Path to Green Growth,”“Sustainable and Efficient Operations,” “Food and NatureBased Solutions,” and “Sustainable Finance and Investing.”)2023 Highlights
Center for Policy and Regulation
In March 2023, BCG launched its Center for Climate andSustainability Policy and Regulation to help clients navigate
policies and regulations that aim to accelerate the transition
toward a net zero, nature-positive global economy. The center
assembles experts who have deep insight into the complex
and dynamic policies and regulations reshaping industries,
scaling green technologies, and creating new value pools.
Quantis and BCG: One-Year Anniversary
Despite being a time of transition, the first year of Quantis asa BCG company included considerable growth and impact.
Acquired by BCG in September 2022, Quantis welcomed a
new leader, Allon Zeitoun, in September 2023. The purposedriven environmental sustainability company is uniqueamong its peers in focusing on building a planetary economy,
where nature and business work in balance. Quantis strives
to transform companies by using a holistic, science-based
approach that considers all planetary boundaries.

BOSTON CONSULTING GROUP

2023 in Numbers$240M
invested in protecting our planet in 2023,
putting us more than one-third of the way to
our $2 billion 2030 goal

1,500+
Climate & Sustainability projects worked on in
2023, a year-on-year increase of 56%

4,300
BCG consultants helped our clients protect
our planet40+
pro bono partnerships that we engaged in

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SDG ACCELERATOR

Sustainability Strategy and Transformation

SDGs in Focus

The landscape for conducting business has evolved. Firms
must craft sustainability strategies and inventive businessmodels that not only promise financial gains but also makea meaningful positive impact on the planet and on society.
BCG helps companies do just that, while building an
enduring competitive advantage.
Now, more than ever, a diverse group of stakeholders—
including investors, customers, employees, regulators, andpolicymakers—expect businesses to actively engage insolving issues such as climate change and economic
disparity. In response, business leaders must redefine theircorporate vision, diversify their portfolios, and reshape
their business models to advance on the path tosustainability. Embarking on this path not only spurs
innovation and value creation but bolsters the business’s
overall strength and capacity to adapt and thrive.
To learn more about our work, visit our Climate Change
and Sustainability landing page. In one instance, we helped
a company contribute to SDG 13 (Climate Action), as wellas to SDG 9 (Industry, Innovation, and Infrastructure), SDG
12 (Responsible Consumption and Production), and SDG
15 (Life on Land). (See “Case Study: Transforming Burgo
Group into an ESG Leader.”)

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Case Study
Transforming Burgo Group into an ESG Leader

Partner’s Challenge
The sustainability of our planet, well-being of its
inhabitants, and robustness of the global economy are
under threat because of unsustainable industrial practices.
This challenge is starkly evident in the forestry and paper
production sectors.

Watch how Burgo defined industry-leading
decarbonization targets

Burgo Group, a leading European producer of graphic
papers, specialty papers, and container board, recognized
the pivotal role it could play in advancing sustainability.
Despite already contributing positively by using residual
wood products, thus providing an economic incentive forforest growth, Burgo aimed to elevate its environmental
stewardship and become an ESG leader, acknowledging
the broader challenges of climate change andsustainability.
BCG’s Contribution
BCG stepped in to help Burgo realize its vision by
developing a comprehensive ESG strategy aligned with its
ambitions for sustainable operations. BCG’s expertise wasinstrumental in structuring a detailed roadmap forsustainable development across seven key areas, with apronounced emphasis on decarbonization.
This roadmap defined ambitious decarbonization targets
and facilitated establishing a dedicated organization within
Burgo for ESG management. BCG’s support helped Burgotransition from strategic planning to operational
implementation, particularly through the Grow 2030 plan,
which laid out multiple targets for transforming thebusiness model to a sustainable one.
Potential Unlocked
The collaboration has led to a significant shift towardsustainability within Burgo, positioning it in the vanguardof the industry’s move to a greener future. The structured
approach to ESG management and the focus on
decarbonization promote sustainable management offorests and reduce the company’s carbon footprint.
Through the Grow 2030 plan, Burgo is not only addressing
its environmental impact, but also opening the way forsustainable growth and value creation within theframework of sustainability. This partnership is a good
example of BCG helping to drive systemic change, enablingcompanies like Burgo to have a positive impact on people,
the planet, and the economy.

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SDG ACCELERATOR

Decarbonization: Unlocking the Path to Green Growth

SDGs in Focus

Decarbonization can deliver up to $26 trillion in economic
gains by 2030. BCG helps organizations deploy forwardthinking decarbonization solutions that boost sustainability,
support long-term growth, and aim to capture that value.
Companies need to remove carbon from their operations,manufacturing, product designs, and supply chains.
Government policies, such as the US Inflation Reduction Act
of 2022 and the European Green Deal, offer meaningful
incentives for large-scale decarbonization, conferring
significant advantages on companies that act now—withpotential for significant green growth.
To learn more about the services we deliver, visit our
Climate Change and Sustainability landing page. One
relevant example involves using climate action to help clear
a path to economic and social development through climate
action. (See “Case Study: Driving Economic and Social
Development Through Decarbonization.”) As with many
climate and sustainability cases, our contribution to SDG 7(Affordable and Clean Energy) and SDG 13 (Climate Action)is likely to support second-order benefits—in this case, to
SDG 8 (Decent Work and Economic Growth), SDG 9(Industry, Innovation, and Infrastructure), and SDG 11(Sustainable Cities and Communities).

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Case Study
Driving Economic and Social Development Through Decarbonization

Partner’s Challenge
Malaysia, like other nations, faces a complex challenge inmeeting its growing energy demands while addressing
adverse environmental repercussions. Like many othercountries, Malaysia relies for energy production on fossil
fuels that contribute to greenhouse gas emissions. The
country has steadily progressed toward more sustainable
and eco-friendly energy sources.
This transition is not solely an environmental imperative.
It represents a significant opportunity for Malaysia to drive
economic and social development, aligning with theobjectives of the UN’s SDGs.
BCG’s Contribution
To help our client, BCG first performed an assessment to In
2023, recognizing the urgency of these challenges, theMalaysian government partnered with BCG to develop the
National Energy Transition Roadmap (NETR). NETR isdesigned to accelerate the transition of Malaysia’s energy
system toward more sustainable, lower-emission, anddiversified energy sources.

Potential Unlocked
The implementation of NETR aligns Malaysia with
relevant SDGs, contributing to global efforts to combat
climate change. The resulting increased use of renewableenergy resources is expected to reduce the country’s
carbon emissions.
Economically, NETR is likely to spur innovation andinvestment in the green technology sector, fostering new
industries and employment opportunities. NETR aims to
unlock $300 billion in capital flows in support of the energy
transition, with energy security as the cornerstone. The
initiatives that NETR highlights should lift GDP by 10% to
15% and create 350,000 jobs, with 70% of that additional
money flowing to low- to medium-income households.
The transition to cleaner energy sources also promises
improved air quality and health benefits, contributing to thewell-being of Malaysia’s citizens. And the development of amore resilient and sustainable energy system will enhanceenergy security, ensuring reliable and affordable energy

The approach enlists federal and state governments,
industry, the general public, and the international
community as participants. NETR identifies 50 policy-driven
initiatives aimed at reducing emissions in the energy sector
by 32% by 2050. Through NETR, Malaysia will focus on
improving energy efficiency; enhancing renewable energy
and bioenergy; reducing greenhouse gas emissions;greening mobility; accelerating innovation to commercializehydrogen and carbon capture, usage, and storage
technologies; and strengthening energy infrastructure.
NETR represents the culmination of five years of work that
BCG has done in Malaysia to support Malaysia’s transition
toward net zero.

50

350K

70%

policy-driven initiatives aimed
at reducing emissions in theenergy sector by 32% by 2050

potential jobs createdfor Malaysian citizensof additional money flowing
to low- to medium-income
households

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SDG ACCELERATOR

Sustainable and Efficient Operations

SDGs in Focus

Achieving sustainable operations isn’t just an endpoint
but a key element in a broader strategy to foster businessexpansion. Our approach involves collaborating with clientsto enhance the sustainability of operations. This includes
cutting emissions throughout the product life cycle,
advancing sustainable procurement and supply chain
practices, boosting operational efficiency, and shifting to acircular economy, all while generating value for the business.
While more information on our capabilities can be found at
our Climate Change and Sustainability landing page, a recent
example illustrate the way sustainable operations drives not
only SDG 13 (Climate Action), but SDG 7 (Affordable Clean
Energy) and SDG 9 (Industry, Innovation, and Infrastructure).
(See “Case Study: Paving the Way for Electric Trucks.”)

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Case Study
Paving the Way for Electric Trucks

Partner’s Challenge
Commercial vehicles are responsible for 50% oftransportation’s carbon emissions. Regulations andsubsidies in the US and Europe aim to stimulate the useof electric commercial vehicles, but adoption has beenslow, in part because of the high life-cycle cost of batteries.
A leading global manufacturer of battery cells, LG Energy
Solution, based in South Korea, entered the commercial
vehicle market with the goal of reducing prices and making
it feasible for truck owners to incorporate electric trucks
into their fleets.

50%of transportation-related carbon emissions
come from commercial vehicles

BCG’s Contribution
BCG worked with LG Energy Solution to develop a market
entry strategy to help it reach this goal. We investigatedand analyzed the unmet needs of OEM customers in themarket and built corresponding strategies, creating
solutions based on product lineups that would enhancecustomer satisfaction and economic viability from theperspective of total cost of ownership. We also helped thecompany develop operational strategies for customer
acquisition, facilitating matches with European customers
in particular.
Potential Unlocked
The work has allowed LG Energy Solution to reduce thelife cycle cost of batteries, expanding the options for truckowners as they enter the electric market. It has also
contributed to revenue stream diversification, establishinggrowth opportunities for the future.

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SDG ACCELERATOR

Food and Nature-Based Solutions

SDGs in Focus

Nature, biodiversity, and agriculture are intrinsically linked.
The planet’s ecosystems provide vital services that range
from agriculture to climate regulation to water storage andfiltration to air purification. The estimated value of theseresources exceeds $150 trillion annually.
Yet human activity continues to endanger the natural world.
We are in the midst of Earth’s sixth mass species extinction
event, and one-fifth of the world’s countries are at risk of
ecosystem collapse. Forward-looking companies understandthe compelling business case for building a nature-positive
operation, finding synergies between efforts to reduce adverse
environmental impact and efforts to increase business value.
At the same time, the challenges related to food systems
and security are complex and urgent. Climate change
threatens the food supply—along with the incomes of those
who grow crops or raise livestock. And workers, customers,
and shareholders are exerting pressure on companies toreduce their carbon footprint. BCG understands thesecomplexities and helps our clients address them through aholistic, systems-mapping approach.

BOSTON CONSULTING GROUP

Watch how OCP Group is leading the way in climate
and sustainability in the agricultural sector

To learn how BCG remediates, protects and regenerates
nature, including our holistic approach to agriculture, visit
our Climate Change and Sustainability landing page. In
addition, we are proud to showcase in the video abovesome of the work we did in 2023. Here, we provided
insights to help OCP Group contribute to SDG 7 (Affordable
and Clean Energy), SDG 13 (Climate Action), and SDG 12(Responsible Consumption and Production).

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SDG ACCELERATOR

Sustainable Finance and Investing

SDGs in Focus

The transition to a more environmentally sustainable,socially inclusive world will create unprecedented financing
opportunities and reallocation of capital flows. BCG works
with clients to build capabilities in sustainable finance andinvesting in order to capture this source of value andcompetitive advantage.
We work with financial institutions to develop enterprisewide strategies and operating models for delivering
sustainable finance and investing ambitions, and we help
them translate their net zero commitments into action. We
also work with corporate and investment banks to more
effectively pursue new sustainable finance opportunities.
You can find more information on our capabilities at our
Climate Change and Sustainability landing page. Besides
contributing to SDG 7 (Affordable and Clean Energy), SDG
13 (Climate Action,) SDG 15 (Life on Land), and thefinancially orientated targets of SDG 17 (Partnerships for
the Goals), pursuing sustainable finance opportunities will
deliver co-benefits to SDG 8 (Inclusive and Sustainable
Economic Growth) that will grow over time.

Watch how banks can play a role in creating positivesocial and planetary impact

At COP28, Douglas Beal, global lead of Social Impact andJust Transition in Financial Institutions at BCG, and Tom
Hall, global head, Social Impact & Philanthropy at UBS,
discussed how they’ve helped clients maximize theirimpact in a measurable way. (See the video on this page.)
Whether driving social impact or protecting our planet, thisrobust, scalable way of moving capital toward sustainability
goals is emblematic of BCG’s approach to sustainablefinance and investing.

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Client Story Showcase
The preceding case studies represent just a fraction of thework we delivered in 2023. For more examples, from strategy
to infrastructure, see the client story showcase below.

Leading the Way on Circularity

Building Infrastructure for the Future

Pioneering Sustainable Industrial Strategy

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The Power of Collective Action forPlanetary Impact
A critical part of delivering impact on climate andsustainability lies in collective action through partnerships
with major multilateral organizations such as the UN, as wellas in global initiatives such as Breakthrough Energy and theFirst Movers Coalition.
In supporting these partnerships, BCG draws on the fullbreadth of its expertise to deliver holistic solutions tocomplex problems. To see how we help partners such as theUN, COP28, World Business Council for Sustainable
Development, and WEF move from bold ideas to exponential
impact, see page 12.
At the same time, our Climate & Sustainability practicecatalyzes and magnifies the progress of these partnerships
in unique ways. These include pursuing efforts to protect
biodiversity, accelerate investment and innovation, andachieve a net zero future. When it comes to achieving
progress, we believe that there is strength in numbers. By
working together, we can break down barriers that are too
difficult or complex for any single organization to surmount.
For this reason, our partnerships are diverse: we work withgovernments, business associations, international NGOs,
and other members of civil society to drive action on a rangeof solutions. BCG contributes expertise through pro bono or
low bono engagements. The following is a snapshot of BCG’s
climate and sustainability partnerships.
COP28 and the United Nations
In 2023, BCG was proud to support COP28 as the gathering’s
principal strategy and action partner. In this role, we
provided strategic insight and analysis, sectoral and technicalexpertise, and action agenda implementation support across
such topics as renewables, hydrogen, climate finance, green
capital markets, decarbonization of heavy-emitting sectors,
food system transformation, and nature protection.
Among the highlights of our COP28 work was the Action
Agenda on Regenerative Landscapes—an initiative cochaired by COP28, the UN Climate Change High-Level
Champions, the World Business Council for Sustainable
Development, and BCG—which aims to accelerate thetransition to regenerative agriculture. BCG is also proud tohave supported COP28, IRENA, and the Global Renewables
Alliance on a report, Tripling Renewable Power and Doubling
Energy Efficiency by 2030: Crucial Steps Towards 1.5°C, which
outlines key enablers to achieve the COP28 Presidency’s
agenda to triple global renewable power capacity to 11,000
gigawatts and double average annual energy efficiency
improvements by 2030.
BCG has collaborated extensively with the UN High-Level
Champions on Climate Change since 2020, supporting
several priority initiatives and campaigns. Our work builds on
our ongoing commitment to the UN Framework Convention
on Climate Change, for which we also served as the exclusive
consulting partner at COP26 and COP27.

BOSTON CONSULTING GROUP

Breakthrough Energy Catalyst
Breakthrough Energy Catalyst is a novel platform that funds
and invests in project companies that utilize emerging
climate technologies to reduce emissions. The platform aims
to accelerate and scale the adoption of these technologies
worldwide and thereby reduce their “green premiums.”
BCG was a founding partner of Breakthrough Energy Catalyst
in 2021, and we continue to support its evaluation of new
decarbonization technologies and its efforts to understandhow best to remove barriers to their adoption. In 2023, we
evaluated approximately 20 emerging climate technologies(including thermal energy storage, green cement, and H2
pipeline infrastructure) to assess their GHG impact, theirneed for catalytic funding, and their readiness to scale, as
well as to identify which ones Catalyst should prioritize forinvestments, ultimately leading the organization to add a
new technology to its scope. This work is critical toidentifying, funding, and scaling technology solutions that will
enable the world to reach its climate targets. Together with
Breakthrough Energy Catalyst and Third Way, an American
think tank, we published multiple reports and analyses on
the competitiveness of clean technology in the US.
CDP
BCG and CDP, the world’s preeminent disclosure platform,
have a long-standing strategic partnership. We collaborate
on high-impact societal topics such as aligning the disclosure
framework with the International Sustainability Standards
Board, building CDP’s new global tech platform, andassessing which levers drive the greatest reduction inemissions. These joint efforts provide greater transparency
about what companies are doing to deliver on their climate
targets. We also partnered with CDP on efforts at New YorkClimate Week and COP28, as well as on initiatives that aim
to enable talent upskilling and growth. In addition, we
partner with CDP on thought leadership, yielding key
insights such as the power of supply chain decarbonization(supply chains generate 11 times the emissions of in-house
operations on average).
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First Movers Coalition
BCG is a founding member and lead knowledge partner of
the First Movers Coalition (FMC), a group of forward-thinking
companies convened by the US government (with the US
Special Envoy for Climate at the helm) and the World
Economic Forum. FMC aims to jump-start global demand for
critical emerging solutions by mobilizing the necessary
investments and lowering the associated costs.
Our efforts in support of FMC in 2023 included work toincrease demand, bring products to market, streamline
procurement, and build enabling ecosystems for industrial
decarbonization. We partnered with FMC to find ways toincrease investment in near-zero-emission products andservices and to encourage advance offtake agreements from
customers so suppliers can scale with certainty. In the twoyears since its inception, FMC has become the single largest
global clean demand signal, and its 96 members have madecommitments representing annual climate technology
demand of $16 billion, which is estimated to lead to annual
CO2e emissions reductions of 31 million metric tons.

Science Based Targets for Nature
Linked to SBTi, Science Based Targets for Nature (SBTN) is a
network of more than 45 organizations that aims to develop
methods and resources for setting and achieving naturerelated science-based targets for companies, and climateand nature-science-based targets for cities.
In 2023, BCG supported SBTN in launching the first-everscience-based targets for nature. We then partnered with
the network to implement the targets in 16 pilot companies
and to help develop new nature-related guidelines forfinancial institutions. In addition, we worked with SBTN andpilot companies to distil insights and lessons from the pilots
and to build a strategy for 2024.
Together, we organized and co-hosted workshops at the
London, Asia-Pacific, and New York Climate Weeks fororganizations looking to implement a nature-positive
approach. We also interviewed Erin Billman, SBTN’s
executive director, to share more about the origin andimpact of these new guidelines.

In 2023, we also collaborated on a series of papers with FMC
outlining the organization’s insights and impact: Fuelling the
Future of Shipping: Key Barriers to Scaling Zero-Emission FuelSupply, Surfacing Supply of Near-Zero Emission Fuels and Materials
in India, and “Harnessing Purchasing Power to Drive
Decarbonization.”

World Business Council for Sustainable Development
BCG’s partnership with the World Business Council for
Sustainable Development (WBCSD) spans multiple criticalsustainability topics, supporting the council’s aim to form a
global community whose members shift the systems theywork within toward a better future.

Science Based Targets initiative
BCG is proud to partner with the Science Based Targets
initiative (SBTi), an organization that drives ambitious climate
action in the private sector by enabling organizations to set
science-based emissions reduction targets. SBTi remains thegold standard for corporate climate commitments, as it sets
the rules for “what counts” as a credible climate target, and it
is one of the largest influencers of corporate climate action.

In 2023, we partnered with WBCSD and the COP28
Presidency to launch the COP28 Action Agenda on
Regenerative Landscapes, a flagship initiative designed toaccelerate the transition to regenerative agriculture. We also
supported WBCSD initiatives that focused on circularity,procurement, and avoided emissions, leading to three key
outputs in 2023: a plastics protocol aimed at accelerating
the transition to plastic circularity by introducing 60 plastic
metrics for companies to collect data on in order to comply
with impending regulations; a series of master classes andarticles on critical decarbonization levers to upskill WBCSD
members on topics such as achieving sustainableprocurement, preparing for net zero, reducing emissions,and conducting targeted interventions; and a white paper on
how companies can leverage avoided emissions as anindicator of green leadership.

In 2023, we partnered with SBTi to refine its Scope 3
requirements and guidance, to provide insights into thechallenges faced by financial institutions in their efforts to
update the industry’s net zero standard, and to support
foundational research and development into the role of value
chain mitigations. We also supported SBTi in streamlining its
own technical operating model and reviewing its strategic
direction with regard to measuring company performanceand target delivery. Our aim is to continue growing SBTi’sbase of committed companies, while also driving even greater
positive impact by helping them reach their climate targets.

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World Economic ForumAs a strategic partner of the World Economic Forum(WEF), we worked on a number of ongoing projects in
2023, including the race to net zero, technology for climate
adaptation, accelerating a just transition, green andsustainable development in China, and low-carbon
technologies for chemicals production. Rich Lesser, ourglobal chair, is a senior member and advisor to the WEF
Alliance of CEO Climate Leaders, and BCG is a member ofthe WEF Chief Sustainability Officer Community and the
Natural Climate Solutions Alliance.
Our work with the Alliance of CEO Climate Leaders in 2023
supported three strategic initiatives: providing policy
advocacy; increasing the alliance’s ambitions and action on
Scope 2 and the energy transition; and developing anaction plan for the alliance and its suppliers to decarbonize
Scope 3 upstream emissions. We also published The Stateof Climate Action, a report that complements the global
stocktake with a comprehensive view—across nations,
corporations, technologies, and financing—of the gap
between ambition and action on net zero.
We also partnered with WEF on AI for climate adaptation
and resilience, with the mission to accelerate development
and use of AI and advanced analytics in climate A&R efforts
to drive awareness, speed, scale, and cost efficiency of newtechnologies. Innovation and Adaptation in the Climate Crisis
explores data-driven and digital technologies that are
emerging as mission-critical tools for climate adaptation.
Another joint report, What Future for Climate and Trade? maps
future scenarios to highlight the interaction of climate
action, global trade, and economic growth.

World Wildlife Fund
In 2012, we began supporting the mission of Worlds Wildlife
Fund (WWF) to halt environmental degradation and build afuture in which people live in harmony with nature.
In 2023, we supported WWF on a number of projects
including developing a basin-focused strategy to unlock
investment in preserving key basins in the Amazon,
assessing the impact on nature of the energy transition,and supporting a global decarbonization framework forshipping. Our partnership also included supporting WWF at
the Convention on Biological Diversity (COP15) on a “New
Deal for Nature & People” to reverse nature loss by 2030.
We also delivered two key reports: Navigating the Waters:
Strategic Solutions for Water Resilience and Building a NaturePositive Energy Transformation. Thought leadership pieces likethese helped deliver major engagements, such as
roundtables at the UN Water Summit, New York Climate
Week, Africa Climate Week, and Asia Climate Week.
Finally, we seconded several BCGers to WWF in 2023,
demonstrating not only a commitment to driving planetaryimpact, but also a dedication to open innovation andadvancing systemic change beyond the boundaries of ourown firm.

Shanghai - Consulting team

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New Delhi - Aanya

BCG’s Internal Net Zero Roadmap

MeasureReduceRemoveImprove

We measure, analyze,
verify, and report our
climate impact on anannual basis

We have set science-basedtargets to reduce ouremissions intensity along
our value chain

We address our remaining
emissions by purchasing
high-quality carbon
credits

We engage experts, NGOs,
and standard setters tocontinually improve ourapproach2018 EMISSIONSBASELINE

2025 SCIENCE-BASEDTARGETS

2030 NET ZEROCOMMITMENTSSTAKEHOLDERS(NON-EXHAUSTIVE)

absolute Scope 1
and Scope 2 emissions
in 2018

reduction (per FTE) in
Scope 1 and Scope 2
emissions by 2025 vs. 2018

remaining emissions
removed with high-quality
carbon credits

553Kt

48.5%

31Kt

absolute Scope 3
emissions in 2018

BOSTON CONSULTING GROUP

92%

100%

reduction (per FTE) in
Scope 3 business travelemissions by 2025 vs. 2018baseline

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BCG’s Own Commitment to Net Zero andEnvironmental Sustainability
BCG drives climate action by unlocking our clients’potential to become climate and sustainability leaders. But
we also drive authentic sustainability action inside BCG.
This section outlines the progress we have made toward
our own internal environmental goals, as outlined in ourEnvironmental Responsibility Statement. This statement,
which we update each year, embodies our commitments
and principles and affects the way BCG operates every day.
Our internal sustainability program is overseen by the
Global Internal Sustainability Strategic Committee (StratCo) and chaired by BCG’s chief sustainability officer (CSO)David Webb. David has led the internal sustainability
program since 2022. Strat Co, established by BCG’s global
Executive Committee (our board equivalent), meets
monthly to ensure that we’re on track to meet both our
long-term and our near-term net zero targets.
While other Strat Co members have incentives tied toclimate-related topics, this is most comprehensively thecase for the CSO, who establishes climate objectives
annually; meeting those objectives directly impacts his
variable compensation. One member is Global Chair Rich
Lesser, who also serves as chief advisor to the World
Economic Forum Alliance of CEO Climate Leaders. Strat
Co’s two Executive Committee leaders have developed
fluency in the topic of climate action to help deliver thiselement of BCG’s business strategy. In addition, our CSO
regularly leads climate and sustainability engagementswith clients. For more information, see the “Governance”
section in the introduction to this report (page 8).
BCG drives climate action by unlocking our clients’potential to become climate and sustainability leaders. But
we also drive authentic sustainability action inside BCG.
This section outlines the progress we have made toward
our own internal environmental goals, as outlined in ourEnvironmental Responsibility Statement. This statement,
which we update each year, embodies our commitments
and principles and affects the way BCG operates every day.

BOSTON CONSULTING GROUP

To execute the program, the Strat Co formed the
Global Internal Sustainability Team, whose mandate
has three pillars:• Measure. Set baselines for carbon accounting, andmonitor and disclose progress.
• Reduce. Lower the firm’s carbon emissions and othernegative environmental impacts.
• Remove. Take away 100% of the emissions that we’reunable to reduce by 2030, using the most effective
nature-based and engineered carbon removal solutions.
Climate change is the most material environmental topic
for BCG. That’s why we have committed to achieving net
zero climate impact by 2030 and to becoming climate
positive thereafter, removing more carbon from theatmosphere than we emit each year.
We follow the GHG mitigation hierarchy by first avoiding
and reducing emissions within our value chain, and thencompensating for and neutralizing our remaining
emissions. We have set validated near-term science-basedtargets that aim to cut our GHG emissions intensity in halfby 2025. Our targets align with the most ambitious goal of
the Paris Agreement: to limit global temperature rise to
1.5°C above preindustrial levels. We have alreadysignificantly reduced our Scope 1 and Scope 2 emissions
and have established a clear decarbonization plan for our
Scope 3 business travel emissions.
In addition to reducing our GHG emissions, we have, since
2018, purchased and retired a volume of independently
verified carbon credits equivalent to our remaining
unabated emissions. As part of our journey toward net zeroclimate impact, we will transition our carbon credit
portfolio to 100% CDR credits by 2030. Our goals are to
support high-quality nature-based solutions and to help
pioneer the most promising technological solutions, suchas direct air capture (DAC) and storage.
In keeping with best practice, such as WWF’s Blueprint, wehave quantified and publicly communicated the price we
expect to pay to reduce, avoid, and remove emissions as
we work toward net zero. We expect to pay a blended
carbon price of $35 per metric ton in 2025, rising toapproximately $80 per metric ton by 2030. In 2023, ourblended carbon price was $18 per metric ton.

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2023 in Numbers

3

consecutive appearanceson CDP’s annual A List

100% 52% $18
BCG offices using 100%
renewable electricity
since 2019100% 45+of employees received
training materials on
the climate andenvironment topic

BCG offices with a green
building certificationof our carbon credit
portfolio consists ofhigh-quality carbon
removal projects

our blended carbon
price per metric ton

1.5K+
colleagues are BCG
Green Team members

BCG’s Mexico office

We recognize that requirements and expectations for
credible net zero strategies will continue to evolve with
scientific and technological developments and withongoing stakeholder engagement. An independent thirdparty entity verifies the accuracy of claims related to BCG’s
net zero program, including PAS 2060 carbon neutral
certification.7 As we progress on this journey, we willcontinue to learn and adapt our approach in collaboration
with experts, NGOs, clients, and other key stakeholders.

Although climate change remains the most material
environmental topic at BCG, we understand thatsustainability demands a holistic approach. For that reason,
we monitor and manage other topics too, such as energy,
water, and resource consumption. Given the localized,
office-specific nature of these topics, the Global Internal
Sustainability Team receives support in the form of bottomup change advanced by our local Green Teams. A networkof over 1,500 members across more than 100 offices,
Green Teams help drive gains in energy, water, and waste
sustainability while fostering a culture of sustainability
necessary to achieve our environmental ambitions.

7. Verified by EcoAct, our PAS 2060 company certification covers our full reported Scope 1, Scope 2, and Scope 3 GHG inventory, which are included
only in our business travel emissions target. The credits we currently purchase are a mix of avoided-emissions projects (such as projects toprevent deforestation), which aim to keep additional carbon from entering the atmosphere, and removal projects (such as reforestation andbiochar), which remove CO2 directly from the atmosphere.

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Further Reading
BCG’s Net Zero Strategy

Environmental
Responsibility Statement

The First Three Years of
BCG’s Net Zero Journey

CDP Climate Disclosure

Measuring Our Climate Impact
We have established a global carbon accounting system inaccordance with the GHG Protocol Corporate Standard,
and we independently verify our emissions against the ISO
14064-3 standard.8
We report emissions in metric kilotons of carbon dioxide
equivalent (KtCO2e). Our Scope 3 emissions boundary
includes business travel—our largest source of emissions—as well as purchased goods and services, capital goods,

employee commuting, and other smaller emissions
sources. Within our reported GHG inventory, for air travelemissions, we measure and include the climate impact of
GHG emissions from the combustion of fuel, as well as theimpact of non-GHG sources that have a radiative-forcing
impact.9 (See Exhibit 3.) A detailed description of our GHG
reporting methodology and Scope 3 reporting boundary isavailable in the appendix (page 96), followed by our Taskforce
on Climate-Related Financial Disclosures reporting.

Exhibit 3 - BCG’s Greenhouse Gas Emissions
DATA IN METRIC KILOTONS OF CARBON DIOXIDE EQUIVALENT (KtCO2e)
–27%
584

6
25

571

5

406

553

566

Source: BCG analysis.

2019

425

3

COVID-19 restrictions imposed
178

2018

3

4

153

174

150

2020

2021

Scope 1

Scope 2

403

422

2022

2023

3

Scope 3

Note: Numbers in this exhibit may vary from those reported in previous years as data is improved and updated.
8. We take an operational control approach to consolidating our carbon emissions inventory.
9. Although CO2 is a significant and crucially long-lived pollutant from aviation, it represents only about 50% of the total warming caused byflying. Other emissions from aviation, such as nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM), as well as indirect
factors such as the formation of contrails and clouds, contribute to effective radiative forcing (ERF). Following best practice, we account for
the non-GHG climate impact of aviation by multiplying the CO2 impact by 1.9, effectively doubling our flight emissions. We include nonGHG warming effects within our full reported GHG boundary. But in accordance with the Science Based Targets initiative (SBTi) aviation
sector guidance, we exclude them from our business travel target boundary. For the same travel target, we also include upstream well-totank emissions from the combustion of aviation fuel; however we do not include these in the full reported GHG inventory above. Please see
Table 1 on page 96 of the appendix for a summary of our full GHG inventory and target boundaries.
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Compared with our 2018 baseline, our 2023 emissions
were 27% lower in absolute terms and 59% lower on a
per-person intensity basis. Compared with absoluteemissions in 2022, our emissions in 2023 increased. The
increase in absolute emissions since 2023 is not surprising,
given the continued rebound from two years of COVID-19,
and we have accounted for it in our plans to achieve ouremissions reduction targets. Moreover, as discussed in thenext section, we have taken concrete action to remain on
track to achieve net zero climate impact by 2030.

Reducing Our Emissions Intensity
To achieve our goal of net zero emissions by 2030, we’refocusing on reducing our main source of emissions:business travel. At BCG, as at many other firms in our
industry, business travel makes up about 80% of total
emissions. We aim to cut emissions from business travel by
48.5% per employee by 2025, compared with our 2018
levels, setting one of the most ambitious targets in our
sector. SBTi has validated this target, giving us confidence
that the goal is both bold and achievable.
In 2023, our emissions intensity from business travel
was 62% lower than in 2018. We achieved this reduction
through a mix of strategies: approximately 50% fromaltering our travel habits and 12% from improvements inefficiencies.10 (See Exhibit 4.)

Exhibit 4 - Progress on BCG’s Scope 3 Business Travel Science-Based Target
Target: Reduce Scope 3 business travel emissions by
48.5% per YEARFTE by 2025 against the 2018 baseline year
INCREMENTAL
0

2018

2019

REDUCTION VERSUS 2018 (%)

9

2020

2021

2022

2023

60

62

COVID-19 restrictions imposed

20

40
48.5
60

80

82
87

100

Source: BCG analysis.

SBTi 2025 reduction target

Progress versus target

Note: FTE = full-time equivalent employee.

As we continue to adapt our business model, we’re finding
innovative ways to lower our travel-related emissions
without compromising the quality of our client services,building strong relationships, or altering our commitment
to improving our employee experience. To meet our
reduction target, members of a dedicated network ofchange agents—including managing directors andpartners (MDPs) and business leaders from every region,practice, business unit, and function—have helped develop
emissions reduction plans tailored to their specificgeographic and business contexts. We are now
implementing these plans across our organization.
Three years into our net zero commitment, we’ve foundthat achieving our goal requires a multifaceted approach.
Key strategies include adopting purposeful co-location
practices, rethinking how we organize events, enhancing
transparency and accountability, encouraging the use ofgreener travel options, and supporting the use of SAF.

10. Aviation efficiency gains are reflected in annual changes to the emissions factors that we use to calculate our climate impact.

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Cascading Carbon Budgets to Strengthen Accountability.
To strengthen our reduction program’s accountability, we
created carbon budgets in 2023 that align with decisionrights and a reduction pathway. This adaptation helped us
set clear yearly targets for regions, practices, andfunctions. Budget owners have begun deploying emissions
reduction initiatives tailored to their specific contexts,
allowing leaders to make tradeoffs to meet their objectives
consistently with BCG’s goals.
Accelerating the Adoption of Purposeful Co-location
Teaming Models. We have updated our models forengagement and teaming so that we more purposefully
co-locate and collaborate among teams and with clients.
We now actively involve our clients in defining a co-location
model for our projects, which helps us reduce emissions,improve productivity, increase flexibility, and maximize
value creation. Furthermore, we are embedding client
location as an additional factor influencing resourcing
decisions for our projects to minimize travel withoutcompromising on expertise and value creation. Finally,
we’re promoting the option of weekend stays at client sites
to reduce the number of trips taken during the project life
cycle. This option offers carbon savings and an improved
employee experience.
Evolving Our Approach to Internal Meetings andEvents. In addition to changing our approach to client
travel, we are committed to lowering our travel emissions
for internal meetings and events. For example, ourpractices are adapting the format, cadence, and location
choices for their meetings to lower emissions per
participant. This has helped them stay within their carbon
budgets. We have also adopted a new model for some ofour global and regional meetings and learning anddevelopment programs where new tools have helped
planners reduce emissions per attendee by approximately
40% to 50%. To support this model, event organizers areusing a CO2 optimizer tool that enables them to quickly
identify the meeting location that will generate the lowest
quantity of emissions, based on the attendees’ location.

Complementing these transparency instruments is a suite ofplanning tools. For example, our case emissions calculator
enables case leaders to quickly identify the most carbonintensive cases and model different scenarios that will haveless environmental impact. The aforementioned meeting
location optimizer tool enables large-event planners to
identify the best location for a meeting on the basis ofattendee location. This helps maximize participation while
minimizing emissions and financial cost. With suchspecialized tools, our teams can contribute to our net zero
goals without compromising other business priorities.
Promoting Greener Travel Modes. Besides being prudent
about travel frequency, we promote greener travel modes
whenever possible. For example, where viable, we try toincrease the proportion of trips taken by train instead of
airplane where available and appropriate. We are tracking
this shift, providing transparency, and nudging our colleagues
toward this behavior through our booking tools and policies.
Supporting the Use of SAF. BCG has been an earlymover in adopting SAF as a key component of our net zerostrategy. Our approach recognizes SAF’s potential to reduce
jet fuel’s life-cycle emissions by up to 100% compared withconventional jet fuel—and acknowledges the need topartner with the industry to scale up supply. In 2023, withtravel emissions still on track to reach our 2025 target, we
focused on strengthening partnerships and contributing to
the development of an efficient SAF emissions reductions
market. This included partnerships with accounting
standards and registries— in particular, through our
involvement in the Sustainable Aviation Buyers Alliance.

Creating Transparency and Accountability for Travel
Emissions. We have established internal reporting andmonitoring tools to provide transparency for each carbon
budget owner. Whether at the level of a region, practice,function, or business unit, all parts of the firm areprogressing toward their GHG emissions targets. Further,
we have deployed dashboards to enable all MDPs,
directors, and business and project leaders to track theirindividual and project travel emissions. The dashboards
help them understand the underlying drivers of emissions
and assess how theirs compare with those of their peers
within BCG, encouraging greener travel decisions.

Baku - Elyor

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Decarbonizing Our Direct Operations
Our direct energy (Scope 1) and electricity (Scope 2)
emissions are small relative to our Scope 3 GHG inventory.
Nevertheless, we have set a science-based target to reduce
Scope 1 and Scope 2 emissions by 92% per FTE by 2025
versus our 2018 baseline year, which the SBTi has validated.
In pursuing this target, we have taken decisive action to
reduce those emissions.
In 2023, our Scope 1 and Scope 2 emissions intensity was
95% lower than in our 2018 baseline year. (See Exhibit 5).
Of this reduction, approximately 82% came as a result ofshifting to renewable sources of electricity to power ouroffices. We achieved this by continuing to transition our
direct electricity supply to renewable tariffs wherever feasible
and by procuring unbundled energy attribute certificates toreach 100% renewable electricity for the remainder.11

A further 13% reduction resulted from reducing ourconsumption of natural gas within our offices for heating
and from shifting our leased car fleet toward hybrid andelectric vehicles. Hybrid and electric vehicles now represent
around 49% of our leased cars, compared to 39% in 2022
and 7% in 2018.
Having entered our Scope 1 and Scope 2 target zone for2025 already, we are now working to maintain this reductionof at least 92% per FTE while driving down larger emissions
sources, such as business travel, as discussed in theprevious section.

Exhibit 5 - Progress on BCG’s Scope 1 and Scope 2 Science-Based Target

REDUCTION VERSUS 2018 (%)

Target: Reduce Scope 1 and Scope 2 emissions by 92% per FTE by 2025 against the 2018 baseline year

20

40

60

80
86

89

92

92

100
2018

2019

2020
SBTi 2025 reduction target

2021

94

95

2022

2023

Progress versus target

Source: BCG analysis.
Note: FTE = full-time equivalent employee.

11. We seek to align the energy attribute certificates we purchase as closely as possible to the country and year of electricity consumption.

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Neutralizing Our Remaining Climate Impact
In 2023, continuing the approach we took in 2022, weinvested in high-quality carbon abatement solutions on thevoluntary carbon market. We focused on three objectives:• Make progress on our commitments of 100% carbon
dioxide removal (CDR) and more than 100,000 tons ofdurable CDR by 2030.
• Continue working to ensure the integrity and quality ofcredits, especially on nature-based solutions.
• Scale up our support of DAC, leveraging BCG’s full rangeof expertise.
While doing all this, we sought to compensate for ourannual emissions with a portfolio of independently verified
carbon credits that we purchased and retired.12 We
achieved carbon neutrality in our business operations forthe period January 1 to December 31, 2023, in accordancewith PAS2060 requirements.
We believe that transparency is the key to scaling up highquality solutions. With this as our guiding principle, we
comply with all relevant regulations and have an
independent third party verify all claims linked to BCG’s net
zero program.13 We also voluntarily disclose the carbon
credit type, quality, and blended cost of the credits wepurchase. We hope that more and more buyers will follow asimilar approach, thereby promoting a better-functioning
voluntary carbon market. For a detailed breakdown of ourcarbon credit portfolio, see Exhibit 6.14
2023 Progress
Realizing Our 2030 CDR Commitments. This year, we
successfully increased the share of CDR in our portfolio to52%, coming closer to our goal of achieving 100% CDR by2030 while also enhancing the quality of the projects we
supported, as discussed in the next section of the report. In
addition, we strengthened our expertise and internal
capabilities in hybrid CDR pathways, such as biomass
carbon removal and storage (BiCRS) and biochar. This led
to a tenfold increase in our CDR retirement from biochar tomore than 3,000 tons, both from the ramp-up of ourexisting partnership with NetZero Biochar in Brazil andfrom a new agreement with Exomad Green in Bolivia.
These accomplishments are reflected in our average credit
price, which rose to $18 per ton of CO2 to avoid, reduce,and remove our emissions.

Beyond increasing our durable removals purchases for 2023,
we built a strong pipeline of deals in the durable CDR space,
helping us to progress toward our FMC commitment topurchase 100,000 tons of durable removals by 2030. In
particular, we signed large DAC and storage deals (as notedin the previous section) and welcomed NextGen’s inauguralcontracts with 1PointFive (for DAC), CarboCulture (forbiochar), and Summit Carbon Solutions (for BiCRS),
expecting first deliveries by 2025. As a founding buyer of the
NexGen facility, we hope that these first deals will send astrong demand signal that buyers are ready and keen to
support the scaling of innovative high-quality removals today.
Working to Ensure the Integrity and Quality ofCredits. In 2023, the dynamics of the voluntary carbon
market became increasingly intricate, influenced by growing
demand for verifiable quality claims and new regulatory
frameworks. These dynamics make staying ahead of thecurve a key challenge for business to overcome.
Anticipating and recognizing these dynamics, we haveprioritized the creation of a comprehensive evaluation
framework that we believe is among the best in its class.
Our framework enables us to select nature-based carbon
removal initiatives, setting a future-oriented standard forbest practices. It leverages years of Global Internal
Sustainability Team experience, as well as BCG’s advisory
expertise and carbon removal knowledge. It also draws on
continuing engagements with retailers, project developers,
rating agencies, leading standard boards, and working
groups in which BCG participates, such as the VCMI Early
Adopters Program.
For example, we have a special preference for projects that
employ rigorous monitoring, reporting, and verification;
foster the population of native species; innovate throughnew technology; contribute to climate adaptation andresilience in local communities; and deliver fair andtransparent benefits to stakeholders.
We combine our evaluation framework with the expertiseof independent rating agencies.
We expect to leverage our project selection framework tosecure further multiyear procurement agreements and tosupport projects from an earlier stage of development.
Although 2023 showed that the voluntary carbon market
needs to improve in several important ways, we are doing
our best to select the highest-quality credits andtransparently share our portfolio composition. We aremonitoring best practices as we go, informing andstrengthening our evaluation framework over time.

12. To maintain carbon neutrality in accordance with PAS2060 standards, we purchase and retire a volume of independently verified carbon credits
equivalent to our full reported Scope 1, Scope 2, and Scope 3 GHG inventory (as enumerated in Exhibit 4). Our current portfolio is a mix of
avoided emissions credits and CO2 removal credits.
13. In particular, we are in compliance with California’s Voluntary Carbon Market Disclosures Act (AB 1305). We also disclose the pertaining entity,
project, carbon offset, protocol, and verification information for voluntary carbon offsets sold within California here.
14. All of the carbon credits we purchased and retired in 2023 were independently verified against the leading voluntary standards (including theGold Standard and VCS), which have been approved by the International Carbon Reduction and Offset Alliance.

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Increasing Our Support for DAC. Although the market
began paying increasing attention to DAC in 2023, we
noticed a gap in the understanding of the technology’s
long-term potential and associated tradeoffs—a gap thatwas preventing the ecosystem from scaling. We reflectedon how BCG could best help shift this paradigm, leading to
two key BCG initiatives in 2023.

BCG’s Net Zero Partners​

First, we gathered expertise from all across BCG, from
DAC technology experts to carbon markets specialists, andpublished an in-depth cost analysis and call to action. We
concluded that although the technology is very high-cost
today at its very small scale, it has strong potential to move
down the cost curve to $150 to $200 per ton of CO2e. If
it achieves removal costs in this range, DAC could play a
critical role in efforts to reach global net zero, offering
scalable, permanent, and verifiable CO2 removal. We
identified actions that suppliers, standards, companies, andgovernments should take to unlock the potential of DAC tooperate at much lower cost and at the scale of gigatons.

Second, we built a diversified DAC portfolio for our own
footprint, signed a 15-year partnership with Climeworks,
and developed new collaborations with 1PointFive andCarbonCapture Inc. (See Exhibit 6.)
Especially for DAC, we engage with our clients to drive
CDR innovation. This means directly supporting clean techdevelopers, but also helping clients to decarbonize andestablish a CDR portfolio. Since it is too early to know
which CDR methods will be the most effective, we remaincommitted to fostering innovation across the spectrum of
emerging CDR technologies.

We found that a key lever from buyers is the existenceof early adopters willing and able to support nascenttechnologies and thus provide the required catalytic
impact. This finding corroborated our preexisting carbon
removal strategy.

Exhibit 6 - 2023 Carbon Credit Portfolio Overview
2023 portfolio summary

425

COMMITTED TO HIGH-QUALITY CARBON CREDITS

13

KtCO2evolume of credits
purchased and retired

BBB

100%

minimum carbon
credit quality rating
by Sylvera1

projects supportedof our Sylvera-rated
projects rank in the
top 25% for quality

2023 portfolio breakdowns
Project type2022 portfolio
48%

52%

52%
Avoided-emissions projects

48%

Carbon dioxide removal projects

Technology type

1%
48%
REDD+

33%
Aﬀorestation/reforestation

Mangroves

16%

Soil carbon sequestration

3%

Biochar

UN Sustainable Development Goals alignment

6

5

9

6

6

6

4

10

6

1

0

3

11

1

9

0

0

Number of projects
Source: BCG analysis.
Note: REDD = reducing emissions from deforestation and forest degradation.
1

Sylvera has rated 72% of BCG’s portfolio volume as of March 31, 2024.

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Keeping Track of Key Environmental Topics
We know that sustainability demands a holistic approach,and we appreciate that we must consider our energy,
water, and resource use, too. To deal with the localized,
office-specific nature of these topics, our Global Internal
Sustainability Team enlists support from teams that
operate at a local level, including real estate, procurement,
and Green Teams.
Selecting Sustainable Offices
Our offices are a key contributor to our environmental
footprint. By improving energy efficiency, switching to
renewable power, and minimizing our waste and our water
consumption, we are making our offices more sustainable
worldwide. We target the highest environmental standards
for new offices and major renovations, and more than 45 of
our offices now hold a formal green building certification,such as LEED Platinum or BREEAM. To support
sustainable decisions across all BCG offices, we partneredwith a specialist sustainability firm to develop BCG’s green
office selection and fit-out standards, which cover a wide
range of environmental topics, from energy and water use
to selecting more sustainable office furniture.
Paris When It’s Sustainable
In 2023, our relocation of BCG’s Paris office to 75 Avenue
de la Grande Armée demonstrated our commitment toimproving the environmental and social sustainability of
our offices. The carbon-efficient redevelopment of the“L1ve” building, originally built in the 1960s, was a key
consideration in the selection process, complemented
by its achievement of prestigious green-building
certifications such as HQE Excellent, LEED Gold, and
WELL Gold.

Closing the Loop on Waste
Across our offices and operations, we aim to embed theprinciples of the waste hierarchy (avoid, reduce, reuse, andrecycle). For example, we avoid and reduce paper
consumption by applying paperless office principles, andwe increase rates of general office waste recycling byinstalling recycling facilities for all major waste streams
across all offices, to the extent possible. For our mostmaterial waste streams, such as electronic waste, we
partner with specialist companies that reuse components
to extend their life cycle and ensure proper recycling for all
nonreusable components. Owing to our relatively low
volumes of waste generation, we do not currently report
total waste volumes or set formal targets on this topic.
Engaging Our Employees in Our Climate Journey
We educate all employees and raise their awareness ofclimate and environmental issues, in addition to identifying
actions that they can take to contribute to BCG’s net zerocommitment. To complement the broad range of online
and in-person learning events that we host, we support
local action through our global network of Green Teams,
which has grown to more than 1,500 active members.
Distributed across our BCG locations, these teams focus on
designing and implementing initiatives to reduce ourenvironmental impact at the local office level. (See “CaseStudy: The Amsterdam Green Team: Veggie by Default.”)

The renovation’s ambitious circular economy approach—which avoided 394 metric tons of CO2 emissions by reusing
more than 81 metric tons of materials from the existingbuilding structure and façade—along with features such as
renewable energy rooftop solar panels and a geothermal
system, demonstrated that the renovator’s mission
matched ours.
Access to biodiversity-friendly terraces, an interior garden,
bike storage, and nearby public transport further alignedwith our environmental vision, while also promoting
employee well-being and community engagement. By
integrating BCG’s sustainable office fit-out standards andincorporating an array of work and communal spaces,
together with wellness-focused and inclusive facilities, we
helped foster a healthy and equitable work environmentthat supports the needs of our diverse workforce.
Collectively, these actions not only align with SDG 7(Affordable and Clean Energy), SDG 13 (Climate Action), and
SDG 12 (Responsible Consumption and Production), but also
support SDG 3 (Good Health and Well-Being), reflecting ourholistic approach to environmental and social responsibility.

BOSTON CONSULTING GROUPNew York - Malli

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CASE STUDY

The Amsterdam Green Team: Veggie by Default

Challenge
The BCGers in our Amsterdam office love to eat in theoffice canteen. But food choice has a large role to play inprotecting the planet. Besides contributing significantly to
global carbon emissions, agriculture can exert pressure onother parts of the ecosystem, such as the water supply.
With these considerations in mind, the Green Team in
Amsterdam asked, “Can we still eat great food but
manage the impact on the planet?”
Green Team Contribution
The Green Team knew the power of “status quo bias”—
people’s tendency to accept the default option. So they set
about making Amsterdam office canteen meals vegetarianby default.
Change isn’t easy. The team had to empathize with all theoffice’s stakeholders—including the cooks and thereceptionists who ordered the ingredients—and it also
learned that lacking animal protein doesn’t automaticallymake a food more sustainable overall. Much depends on
the use of sustainable agriculture. Nevertheless, theAmsterdam Green Team gained traction through veggie
cooking classes for the cooks, fun communicationmaterials, and direct connection with suppliers. Eventually,
these efforts helped the team receive final approval fromthe office lead.

BOSTON CONSULTING GROUP

Potential Unlocked
On September 1, 2023, Amsterdam’s canteen mealwent vegetarian by default, although people could
still order meat-based meals if they wished, thereby
ensuring inclusivity.
Assuming conservatively that they will reduce meat
consumption by 75% each year, which amounts to a savingsof around 1,000 kg, the Green Team estimates that theoffice will achieve a GHG reduction of about 50 metric tonsof CO2e annually. Although that is a local, office-size impact,
the team is proud of its contribution to SDG 6 (Clean Waterand Sanitation) and SDG 13 (Climate Action). Furthermore,
the team shared its story during a Green Team townhall,inspiring others and helping make sustainability the norm at
BCG. As sustainability becomes embedded in our culture,
we hope to see positive spillover effects across the rest of
our decision making and operations.

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INTRODUCTION

Empowering Our People

DRIVING SOCIAL IMPACTPROTECTING OUR PLANETEMPOWERING OUR PEOPLE

Johannesburg - Isme and Londani

2023 in Numbers

100% 100% 1.2M

our global headcount,a year-over-yearincrease of morethan 6%of employees haveaccess to health andwell-being support
servicesof employees haveaccess to personalized
career development
opportunities

PROMOTING RESPONSIBLE BUSINESS PRACTICES

32K

online learning
hours logged by BCG
employees

Attracting the best and most diverse talent
Racial or ethnic group representation in the US

Women representation

44%
39%
55%

New hires

Global headcountExecutive
Committee

EMPOWERING OUR PEOPLE | 2023 ANNUAL SUSTAINABILITY REPORT62

APPENDIX

Headcount

BOSTON CONSULTING GROUP

47%

Paris - Consulting teamO

ur dedication to fostering an environment
where every individual can thrive is rooted in ourcommitment to diversity, equity, and inclusion.
BCG aims not only to attract the brightest minds from amultitude of backgrounds, but also to nurture their talent.
In 2023, we continued to unlock the potential of ourpeople. Through our dedication to building a culture rooted
in fairness and belonging, we continued to build our
reputation as an employer of choice.

Attracting the Best and Most Diverse Talent
Our success depends on our ability to attract intellectuallycurious, collaborative, and accomplished individuals fromdiverse backgrounds. This applies to all talent, including
executives, experienced professionals, and new graduatesfrom around the world.
Our Talent Goals
To achieve our vision, we have set the following goals:

Driving Fair and Inclusive Recruitment
Inclusion is a top priority at BCG, and we strive to make ita central component of our recruitment practices. Inclusive
hiring draws candidates from a wide range of backgrounds,
encouraging them to apply and share their skills andexperiences.
Our Talent Acquisition team champions the advancementof gender diversity, for example, by striving to recruit abalanced gender mix and by improving the integration oflateral hires. BCG also works through career and campus
programs and partnerships to ensure that candidates fromunderrepresented backgrounds have the opportunity tolearn about and prepare for a career in consulting.
In addition, BCG provides global messaging guidelines
and ongoing unconscious-bias training for our interviewers
and recruiters. We outline the recruiting process to ourcandidates at the beginning of the journey and provide
feedback along the way. We also give them opportunities tolearn about our culture through experience programs and bymeeting BCGers, helping them make an informed decision.

• To attract talent by offering an unparalleled, innovative
Employee experience• To provide opportunities for intellectual challenges,
constant exploration, and accelerated learning• To create diverse, global teams that bring deep industry
and functional expertise to their work
• To tailor our recruiting process to each role, offering a
distinctive high-touch, high-tech experience, fosteringclose relationships with our top candidates as part of therecruiting process

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Providing a High-Quality Experience for Candidates
We engage candidates with highly personalized content.
We offer an innovative candidate experience throughvirtual tools that broaden BCG’s reach in the market,
encourage diverse candidate pipelines, maximize cost andrecruitment efficiencies, minimize our carbon footprint,
and yield sustainable headcount growth. These innovations
foster a more personalized candidate journey and a morestreamlined recruiting process. They have also resulted in a
52% reduction in total carbon emissions from recruitment
activities compared to the 2018 baseline, and a 72%
reduction in emissions intensity with BCG’s headcountgrowth taken into account.
Our virtual experience and internship programs offer
students from many disciplines and backgrounds firsthandexposure to leaders in business and society who aretackling critical challenges. Further, our HT2 (“High Touch,High Tech”) program, launched in the first half of 2023, has
yielded multiple benefits in applicant tracking andcandidate relationship management:

Strengthening Our Employer Brand to Reach a Wider
Talent PoolTo ensure that we continue to attract the best, mostdiverse talent, we developed several recruiting campaigns
to share BCGers’ authentic voices, introduce new online
resources to help candidates prepare for the recruiting
process, and deliver a more personalized experience on
our careers site.
We expanded our talent pool, continuing to drive diversity
and quality. We fully harnessed BCG’s employer brand andpositioning in the talent market, achieving 100% adoption
and engagement with our recruiting campaign, launched in
September 2022: Beyond is where we begin. These
initiatives have helped attract top diverse talent and haveprovided consistent messaging that articulates thepromises we make to our people and communicatesreasons to join, remain, and grow at BCG.

• Improved data and analytics and more streamlined
tracking systems increase the transparency of candidate
data, and globally aligned KPIs and dashboards enhancepipeline reporting.

In 2023, we maintained our leadership position innumerous external benchmarking programs. BCG received
recognition from platforms across more than 50 categories,
including Comparably’s Best Consulting Companies for
Career Growth, Culture, DE&I, and Leadership; Forbes’s
Best Employers for Women; Handshake’s Early Talent;
LinkedIn’s top score on its Disability Equality Index;
Glassdoor’s Best Places to Work; Time’s World’s BestManagement Consulting Firms; LinkedIn’s Top Companies;
and Vault’s Top Ranked Consulting Firm.

• Human-guided AI innovation in structuring automatedtasks increases work-life sustainability and reinforces afocus on BCG’s strategic priorities.

BCG Diversity, Equity, and Inclusion Awards• Seamless, consistent workflows empower users tonavigate every stage of the process with ease.

• Clear, aligned governance emphasizes straightforward
user access rights and enhances candidate pipelinemanagement.
• An elevated candidate experience provides greater
clarity about open roles, enabling candidates to join
BCG’s talent community and be considered for potential
future opportunities.

2023 in Numbers

32K

44%

47%

our global headcount, ayear-over-year increase of
more than 6%of our US employees are fromracial or ethnic minority groups,
including 55% of our new hiresof our global headcount and
39% of our Executive Committee
are women

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Working at BCG
People are BCG’s most important asset, and the firm has
always been committed to creating a best-in-classemployee experience. We aim to build an environment
where our employees do not just succeed but thrive.
BCG empowers the career development of its people withexpansive programs of learning and development, digital
support systems for growth and feedback, and a dynamic
global network of employees and BCG alumni. Each person
at BCG brings unique perspectives and ideas, and our goal
is to develop every individual’s extraordinary talent—to be
the best place for them to grow and succeed.
BCG offers its employees the opportunity to drive impact
through meaningful work in a supportive and inclusive
environment that encourages each person to embrace agrowth mindset and experience accelerated learning thatwill be of lifelong value.
2023 Highlights
In 2023, we continued to address the evolving needs of ourpeople by reinforcing and augmenting our offering acrossthe three pillars of our People Promise: meaning andimpact, people and culture, and growth and development.
Highlights include the following:• We expanded our Teaming@BCG offering beyond ourcase teams to improve the day-to-day sustainability andteam effectiveness of a broader employee base.
• We celebrated our firm’s 60th anniversary with locallysponsored and global events that showcased ourheritage, impact, and aspirations for the future.
• We introduced BLISS (Bias-Free, Leadership, Inclusion,
Safety, and Support), our first firmwide survey ofinclusion.
• We launched a new global online platform with practicalresources to support those working at reduced capacity
and to give employees a place where they can ask foradvice, share tips, and learn more about working at
reduced capacity.
• We announced investments in GenAI to upskill ourcolleagues and evolve how we work with one anotherand our clients.
• We held a series of global interactive information
sessions to provide greater transparency on the range ofelective modules available to our consulting staff as partof their career journey.

BCG’s Boston office

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Performance and Development Opportunities. Each
employee can take advantage of a personalized
performance and strengths-based development plan.
Employees have access to robust career and learning
discussions and tools that will enable them to grow anddevelop. Managers across the globe provide timely
feedback and a career review at least once each year.
Robust Employee Dialogue and Active Listening. We
encourage thorough dialogue between our people andBCG’s leadership, and we engage with our employees
formally at the local, regional, and global levels throughstaff meetings and town halls. We also have a number of
local works councils across the firm in which local BCG
leaders regularly take part. At the core of these initiatives
is a robust culture of participation and active listening that
extends across the firm.
We conduct a People Survey that gives employees anopportunity to provide feedback on their experiences.
Because we conduct the survey annually, we can trackprogress over time and ensure that we are acting on the
feedback received. As appropriate, we supplement thePeople Survey with an additional, shorter survey thatenables us to quickly take the pulse of employees on topics
that may be top of mind for them and to react to any
concerns or suggestions raised. Another valuable forum is
our Employee Input Panel, an opt-in network that gives
participating staff opportunities to provide feedback on
projects and initiatives that will affect their experience.

Career Mobility. Various job mobility opportunities giveour people special motivation and options for growth.
BCG’s Global Career Framework encourages growththrough exploration across topics, practices, and locations.
We also curate personalized career development plans forour employees, including learning sessions, project
opportunities, and coaching. We support employee
development by offering structured mobility programs,
posting vacancies on our internal jobs board, andhighlighting senior business services leadership roles
through a quarterly all-staff email, as well as by sharing
openings with alumni and posting openings externally.
Affiliation and Fun. Part of our commitment to providing
a best-in-class employee experience involves offering
opportunities to have fun and meet colleagues outside
normal business interactions. These include events such as
holiday parties, retreats, and community service days,
which give our staff occasions to connect and to build andrenew friendships. BCG teams are finding creative ways tobalance the need to be together with the importance ofmanaging and reducing carbon emissions.

Teaming at BCG. We continue to pioneer models that
foster effective teaming across the firm. With coaching,leadership activation, and engagement at scale, BCG
supports teams in adopting behaviors and best practices
that the firm has codified through leadership alignment,
stable team rhythms, psychological safety, and a growthmindset. About 115 BCG teaming coaches work with caseand business services teams at any given time, embedding
teaming best practices in learning journeys across allseniority levels. The impact is clear: more than 85% saythat they experience psychological safety within theirteams and that they feel encouraged to continuously learn
and develop.15
Flexibility. BCG’s employees need flexibility andadaptability in the workplace, even as they respond to thedemands of our clients and business. Our global Flex@BCG
framework describes different ways of working flexibly acrossthe firm and enables employees to navigate the options
available to them. All employees can request time off for
personal matters or for a particular passion, and all have aright to request part-time work. In addition, all employees
who become parents are eligible for parental leave. Finally,
to increase day-to-day flexibility, we continue to add newtools, enablers, and programs and pilot new technologies.

Johannesburg - Ama

15. 2023 People Survey.

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2023 in Numbers

100%

100%

of employees received an annual
performance review and haveaccess to personalized careerdevelopment opportunities16

of employees have access tohealth and well-being services
through our Wellbeing@BCG
framework

Ensuring Fair and Equitable Pay

Diversity, Equity, and Inclusion

Ensuring fair and equitable pay for employees is part of
BCG’s commitment to an inclusive workplace. Ourcompensation function manages BCG’s global pay
practices, using tools and frameworks that support pay
equity and operate without bias or discrimination. We
develop salary and incentive structures on the basis of
local market pay data as well as information about the roleand skill set that each position requires. Our pay levels arehighly competitive and greatly exceed minimum wage
requirements, including in the US, where the hourly pay of
all regular employees exceeds $20 per hour.

Addressing diversity, equity, and inclusion (DEI) is a moral
and business imperative. As our own researchdemonstrates, fostering an inclusive culture is essential toattracting and retaining the best talent from all
backgrounds. Teams of people with diverse backgrounds
and experiences are more innovative and better able tosolve the world’s toughest problems. Organizations thatcommit to and invest in DEI are well positioned to navigate
the challenges of a rapidly changing business landscapeand generate better ideas to contribute to long-termsustainable growth.

To reinforce our commitment to equitable pay, we review
compensation regularly, taking into account factors such as
an individual’s proficiency, experience, and level of
performance, as well as the location of the role. We comply
with all applicable pay equity laws and regulations, such as
the UK’s Gender Pay Gap reporting requirements. In
addition to our legal requirements, we apply more rigorous
standards—for example, ensuring that BCG pays above aliving wage in all markets.

To create exceptional value and impact, we seek to attract
the best, most diverse talent in the world, and we promotea fair and inclusive workplace in which all employees thrive.
We have a responsibility to advance fairness, dignity, andbelonging in our workplace, our client work, and our world.
Diversity and respect for the individual have been corevalues at BCG for years, and we don’t compromise on
these values regardless of where we operate. That’s why
we’re proud to publicly commit to DEI. We strive to provide
an inclusive environment where all of our employees canflourish. To advance this agenda, we focus on threestrategic pillars: inclusion and equity, accountability, anddedication to shaping the global societal agenda.
Inclusion and Equity
BCG is deeply committed to building an equitable andinclusive culture that maximizes the benefits of having
employees with a wide range of experiences and identities.
Our research has shown that feelings of inclusion are criticalto employee happiness, well-being, motivation, andretention. In 2023, we conducted our BLISS survey with allof our staff to establish an inclusion baseline. We will repeat
the survey regularly to determine where we need to improve.

16. All employees with sufficient reviewable time within the calendar year receive annual reviews.

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67

Awareness and Education. We continue to expand ourofferings of required and optional DEI training to support
our teams and leaders throughout their careers at BCG.
Every newcomer to BCG receives mandatory,
comprehensive DEI training that introduces our core values
and diverse networks. We embed DEI principles across ourportfolio of professional development modules, including
leadership and communications. Our “conscious inclusion”
initiatives and DEI-focused events, local and global, help
ensure that diversity, equity, and inclusion are not justdiscussed but authentically practiced. This approachhighlights our commitment to making diversity a driving
force for innovation and success.
For example, since 2020, we have partnered with the
Groundwater Institute to create an immersive learning
experience that increases understanding of structural
racial inequities and works to change systems and improveoutcomes. To date, more than 800 BCGers haveparticipated.
In addition to offering these training programs, we
maintain a BCG-curated, on-demand library of shortcourses, TED talks, and books on DEI topics, all of which
are available to all staff.
Mentorship and Affiliation. Mentorship andsponsorship are critical to enabling success, particularly
for individuals from underrepresented and/or historicallymarginalized backgrounds. Accordingly, we haveestablished mentorship and affiliation programs across theglobe and for a wide variety of identities, including (butnot limited to) women, members of the LGBTQIA+ andAccessAbility communities, and individuals from racialand ethnic minorities. These programs aim to ensure thatmembers of our diversity affinity networks have support
and guidance to succeed at BCG.
Complementing our mentorship opportunities, our highly
engaged affinity networks and communities provide
programming, conferences, and affiliation opportunities forindividuals with shared identities.17

Sharing Lived Experiences. Around the globe, regional
teams and local offices create programming andeducational initiatives on topics of culture and identity topromote allyship, raise awareness of ways to advanceinclusion in the workplace, and enhance psychologicalsafety. Inclusion Accelerators—local office committees
responsible for programming and education initiatives on
topics of culture and identity—exist in many offices andare responsible for driving an inclusive culture throughtargeted programming. Another initiative is Authentic
Conversations, a series of online and in-person panel
discussions on topics of culture and identity that give
employees an opportunity to share their lived experiences
so they can feel heard, respected, and supported.
Fair and Inclusive Recruitment. Our success depends
on employing passionate, open-minded people who
possess a range of expertise and experience and who
represent, among other dimensions, all genders, gender
identities, gender expressions, sexual orientations, races,
ethnicities, physical abilities, and neurodiversities. This
diversity enables us to represent the world we live in, toprovide fresh perspectives, to challenge established norms,
and to devise innovative solutions. It makes us stronger
and more successful in everything we do. Our recruitment
approach includes structured evaluation and interview
protocols that are designed to eliminate bias from therecruiting process, as well as global MBA fellowships fordiverse candidates at several business schools, andinternship opportunities for diverse students, includingBlack/African American, Hispanic/Latino, and Indigenous/
Native American/Alaska Native students in the US.
Equitable Career Landscape. We monitor performance
evaluation, retention, promotion, and compensation toensure that we have equitable practices across BCG.
Preventing Bias and Discrimination. We track andaddress any reported instance of harassment or
discrimination of any kind and have a global ombuds teamin place for employees to raise concerns with.

17. Our global affinity networks are AccessAbility@BCG, Pride@BCG, and Women@BCG. We also have many local networks and communities,
such as AsianDiversity@BCG, Black+Latinx@BCG, Bold@BCG, Christian@BCG, Colorful@BCG, Family@BCG, First-GenerationNetwork@BCG,
Flextime@BCG, Indigenous@BCG, Jewish@BCG, Kulcha & Ethnicity@BCG, Muslim@BCG, PeopleofColour@BCG, SocioeconomicDiversity@BCG,
and Veterans@BCG.

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Accountability
Our commitment to DEI starts with our most seniorleaders, including our CEO and Executive Committee, whoengage regularly on key DEI issues. Our Executive
Committee is 39% women.
Every function within the global People Team—including
recruiting, learning and development, and careerdevelopment—has a DEI scope and works closely with theglobal and regional DEI teams to ensure that our policies
and practices reflect our DEI mission.
We systematically track our global retention and promotion
data, and we aspire to have equal rates for men and women.
We also track retention and promotion data for otherdemographic groups in specific locations, where we cancollect the data. This year we initiated the Count Me In
campaign to collect additional demographic information
globally (consistent with our data privacy obligations as an
employer). Count Me In encourages voluntary selfidentification to help us better understand our workforce andinvest in DEI-related programs where they’re needed most.
Shaping the Societal DEI Agenda
Beyond our high-level focus on DEI practices within BCG,
we are committed to driving and shaping DEI in society
more broadly. We believe that we and our partners have acollective obligation to address and solve these complex
societal challenges to bring about meaningful change.

Watch how BCG exposed the dysfunctional system in
the US meant to support the young, old, and sick

Client Engagement. BCG’s Social Impact practicesupports clients’ efforts to enhance value creation andcompetitive advantage by creating more equitable andinclusive workplaces—and thereby increasing theprevalence of what we call socially transformative business. In
2023, we conducted more than 200 projects in equity andinclusion. Also, our North America Center for Inclusion andEquity celebrated its second anniversary in 2023.

External Partnerships. Partnering with leading externalorganizations allows us to extend the reach of ourknowledge and expertise, while learning alongside worldclass DEI leaders. (See page 76 for details on thesepartnerships.) In addition, our regional and local DEI teams
and offices work with many local organizations to advance
DEI in their communities.
Thought Leadership. BCG invests substantially inproprietary DEI research. In 2023, we published 25 DEI
articles with actionable recommendations to drive
improved outcomes for ourselves, our clients, and theworld at large. Topics included the importance of inclusion,
how companies can support people with disabilities, andtransgender inclusion. (See “Case Study: First-TimeInternal Rollout of BCG’s BLISS Survey.”)This work has had a broad impact. Our Trans@Workarticle was published in the Harvard Business Review. In
India, BCG served as knowledge partner to the G20
Empower Alliance, developing recommendations aimed
at accelerating women’s leadership and empowerment in
the private sector. In Singapore, BCG convened a businessroundtable to discuss our report Taking Diversity to the Next
Level in Southeast Asia and to consider how to collaborate toadvance DEI in the region. A White House Executive Orderthat expanded access to aid for dependent care cited our
research forecasting an estimated loss in US GDP of $290
billion a year from 2030 onward if the country fails to
address the crisis in the care economy. (See “Thought
Leadership” on page 75.)

BOSTON CONSULTING GROUP

Watch how BCG’s Center for Inclusion and Equity is
pursuing real talk and real action on DEI

How Grundfos Leveraged
Workplace Data to Advance
Diversity and Inclusion in
the Manufacturing Industry

Grameen America to
Support 80,000 Black
Women Entrepreneurs
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CASE STUDYFirst-Time Internal Rollout of BCG’s BLISS Survey

BCG’s Boston office

Challenge
Although many business leaders around the world share
the aspiration to create an inclusive workplace, most facechallenges in making it happen. They may be hindered byincorrect assumptions about employees’ needs andexperiences, and by a lack of robust and accurate
measurements of inclusion. These barriers can diminish
the effectiveness of initiatives aimed at SDG 10 (Reduced
Inequalities) and impede progress toward SDG 8 (Decent
Work and Economic Growth).
BCG’s Contribution
Inclusion for all is a commitment integral to BCG’s People
Promise and is deeply rooted in our organizational culture
and strategy. To address the global challenge of effectively
improving workplace inclusion, BCG has developed the
BLISS survey tool. Grounded in statistical research into thedrivers of inclusion and based on an external survey
conducted in 16 countries, BLISS quantifies inclusion andits impact on employee retention, happiness, and wellbeing. It is one element of the services that BCG offers
clients within our Social Impact practice.
We conducted the survey with our own people in order tounderstand our current inclusion landscape and identify
areas for improvement. The 2023 BLISS survey
establishes a baseline for measuring—and improving—
our culture of inclusion.

Potential Unlocked
BCG’s inclusion score ranks us highly among thecompanies that invest substantially in their employee value
proposition and DEI. The survey results also highlighted
various opportunities to continue advancing inclusion at
BCG, including the following:• Committing senior leaders to inclusion as a businesspriority• Providing senior leaders with training, so they have theskills necessary to enhance the inclusiveness of thefirm’s work environment• Supporting business units by collaborating with local
markets and functions to integrate and evolve inclusive
practices and programs
BCG complements its initial BLISS measurement with acomprehensive approach to inclusion, featuring employee
groups such as Women@BCG, Pride@BCG, AccessAbility@
BCG, Black+/LatinX@BCG, and First Generation. We also
employ multiple mechanisms to address concerns andfoster employee well-being, including Teaming@BCG(focusing on team norms and collaboration), regular
employee pulse checks, and an ombuds team. BCG’scommitment to psychological safety and bias-reduction
strategies in recruitment and performance management
further highlights our dedication to an inclusive workplace.
The BLISS survey, along with other inclusion initiatives,
reflects our dedication to driving systemic change insupport of SDG 8 to foster a more inclusive global economy.
Moreover, by adopting such methods ourselves, we gain
empathy and authenticity as we collaborate with clients toachieve the same outcomes.

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Italy - Lorenzo

Highlights from Global Affinity Networks

Sydney - BCG colleagues

Women@BCG
Around the globe and in all of our practice areas, business
units, and teams, Women@BCG seeks to increase thenumber, success, and satisfaction of women at the firm.
Our Women@BCG network supports women through robustand long-established programming aimed at expanding thefirm’s talent pools of women, educating leaders and staff,
offering customized development and sponsorship plansthat connect women with the firm’s most senior leaders,preventing bias in our internal processes, and facilitating
valuable connection and affiliation opportunities.
In 2023, Women@BCG saw continued strong gains by womenat the firm. Women now represent 47% of our overall
headcount and 46% of new joiners in entry-level associate
and consultant roles. Women also make up 39% of our
Executive Committee. Meanwhile, BCG has maintained equal
retention rates for men and women globally on both ourconsulting and our business services teams.

2023 in Numbers
2023

2022

2021

Women
overall

47%

46%

45%

Women
entry-level
consulting
hires

46%

41%

41%

Promotionand retention
rates forwomen andmen

Women also represent…

39%

24%

of our Executive
Committee

of our firm’s
leadership18

18. Leadership includes managing directors and partners and other senior leadership roles across BCG.

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2023 in Numbers

1,200+
members (excluding allies)

Pride@BCG
Pride@BCG, BCG’s global network for LGBTQIA+ employees
and allies, celebrated its 25th anniversary in 2023. BCG’scommitment to LGBTQIA+ rights is externally recognizedwith a 100% perfect score on the Human Rights Campaign
Corporate Equality Index since 2008. Further, the World
Economic Forum DEI Lighthouses 2023 Report featured
Pride@BCG as a highlight. A few key milestones in 2023:• Recruiting Diverse Talent. Pride@BCG has adopted
many cutting-edge initiatives to recruit LGBTQIA+ talentaround the world—including through flagship BCG events
such as PROUD 2024, an innovative, multiday, in-person
event for high-potential candidates from Europe, SouthAmerica, and Africa. We also participate in and sponsor
leading LGBTQIA+ conferences around the world, such as
EUROUT (UK), RISE (India), and ROMBA (US).
• Inclusive Culture and Psychological Safety. We
hosted numerous events, in person and virtually, toincrease awareness, and familiarize our staff with
LGBTQIA+ issues. This year, our programming andthought leadership emphasized the inclusion of thetransgender, gender nonconforming, and nonbinary(TGNCNB) community.

BOSTON CONSULTING GROUP

~50

countries supported through the network• Affiliation and Community. We hosted many inperson and virtual events to foster community andaffiliation for our members and allies, including multiple
events to celebrate 25 years of Pride@BCG.
• Professional and Personal Development. We offer
our members a bespoke Pride mentorship program. In
2023, we launched a pilot software solution to enhance
this offering, which we subsequently expanded.
• Societal Impact. In addition to launching two original
thought leadership reports on the subject area this year,
we hosted a DEI roundtable with senior executives fromSoutheast Asia, had BCG delegates speak on LGBTQIA+
DEI issues at the World Economic Forum’s annual
meeting in Davos, hosted LGBTQIA+ business leadersin Cologne, and continued to engage with leading
LGBTQIA+ nonprofits around the world.

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2023 in Numbers

1,400+
members and allies

AccessAbility@BCG
In 2023, we continued to advance BCG’s disability internal
inclusion agenda across three areas:~50

countries supported through the network• Affiliation. Our AccessAbility@BCG network continued
to play a key part in our disability inclusion agenda. As of
December 2023, we had more than 1,400 members andallies across 50 countries.
• Awareness and Education. We held two
companywide awareness and education campaigns in
2023. In May, we celebrated the one-year anniversaryof the launch of AccessAbility@BCG as part of BCG’s
global DEI agenda, holding an all-staff town hall hosted
by BCG’s global People chair and by Caroline Casey,
founder of the Valuable 500. In December, we ran amultichannel campaign highlighting International Day of
Persons with Disabilities, aiming to raise awareness andovercome the stigma of disability in the workplace.
• Equitable People Policies, Processes, andWorkplaces. In 2023, working with our global IT group,
we improved our workplace adjustments with a focus
on assistive software. In 2024, we will continue to
evolve the catalog of available software to enhance theoffer. We also held training sessions for AccessAbility@
BCG members on accessibility features that are partof the BCG stack (including Zoom and Miro), andwe will continue to offer regular trainings to improve
the tech experience for everyone. We rolled out our
Global Inclusive Office Design Guidelines, which define
accessibility criteria for all new offices and for thoseundergoing renovation. We use these guidelines, which
set a higher bar than local accessibility codes do, in
selecting sites and designing our offices.
In 2023, we published “Your Workforce Includes People
with Disabilities. Does Your People Strategy?”— BCG’s firstthought leadership on disability inclusion—following asurvey of nearly 28,000 employees in 16 countries. This
research reveals a significant disclosure gap for people withdisabilities and urges employers to invest in initiatives thatcan enable one-fourth of their workforce to feel happier,more included, more motivated, and more ambitious—allof which will lead to lower levels of attrition.

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Racial and Ethnic Diversity, Equity, and Inclusion
BCG continues to drive progress toward greater racial andethnic equity and diversity within and beyond BCG.

First Nations, People of Colour, and BOLD & Asian networks
in Australia and New Zealand, South Africa, and the UK,reflecting each market’s individual cultural heritage.

We expanded our racial and ethnic diversity affinity
networks in Europe, Australia, and Africa. For example,
BCGers have established the Kulcha & Ethnicity,

We also made progress on the six public commitments wemade in June 2020 to advance racial equity within andbeyond BCG’s US offices:

Commitment

Progress in 2023

1

Accelerate representation of Black BCGers,and further commit to making BCG a place
where all talent thrives.

9% of new hires identify as Black or African Americanacross our US offices, versus 6% in 2020.

2

Foster accountability by accelerating theclarity, ambition, and measurement of our goals.

Since 2020, more than 800 BCG employees haveparticipated in the Groundwater Leadership Program tobuild awareness of and accountability on racial equity. In
2023, we improved internal capabilities for tracking andsharing DEI metrics.

3

Strengthen our supplier diversity efforts,
increasing the number of minority- and womenowned businesses.

Our Supplier Diversity Program has demonstrated
progress, including a doubling in spending with Blackand Latinx suppliers.

4

Advance our clients’ pursuit of racial equity
through our Social Impact practice.

We invested in more than 130 racial equity projects to
help organizations address issues of racial equity.

5

Catalyze change by investing $100 million in
BCG talent resources over five years.

We deployed $90 million in BCG talent, including
personnel who have engaged in equity-focused projects
with public and private partners since 2020.

6

Donate $1 million over five years toorganizations that are leading change inracial equity.

We surpassed our goal to donate $1 million to racial
equity-focused organizations in the first four years of the
five-year commitment.

Our North America Center for Inclusion and Equity leads
our work with companies, governments, and social impact
organizations in that continent to build inclusive andequitable cultures, expand organizational diversity, anddrive systemic change while increasing business value andsocial impact.

2023 in Numbers

44%of employees in the US are
members of racial or ethnic
minority groups.

BOSTON CONSULTING GROUP

55%

of new hires in the US are
members of racial or ethnic
minority groups.

29%

of leadership in the US are
members of racial or ethnic
minority groups.

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Thought Leadership
In early 2023, we launched BCG’s BLISS survey, a researchtool for measuring inclusion in the workplace, discovering
the inclusion factors that matter most to employees, andidentifying groups at risk of low inclusion. This research has
led us to develop an ambitious thought leadership agenda

aimed at enabling business leaders worldwide to makeworkplaces more inclusive for employees of all identities
and backgrounds. The impetus for pursuing this agenda is
the positive impact that inclusion has on the happiness,motivation, ambition, and retention of employees.

2023 Research Highlights

BOSTON CONSULTING GROUP

Inclusion Isn’t Just
Nice. It’s Necessary.

The Next Frontier ofWorkplace Culture:
How Employers Can
Win on Mental Healthand Wellbeing

Your Workforce
Includes People with
Disabilities. Does Your
People Strategy?

Reinventing Childcare
for Today’s Workforce

Companies Are FailingTrans Employees

Strengthening theLinks Between
Business Ownershipand Minority Wealth
Building

Hiding in Plain Sight:
First-Generation
Professionals

Reaffirming DEI
Investment: Why It’s
Critical During
Turbulent Times

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Driving Change Through Partnership
We collaborate with organizations that are generating lasting
DEI impact across businesses and in the wider world:• The Conference Board. We sponsored conferences
to bring together corporate leaders to discuss solutions
and share best practices. We discussed how to
enable inclusion and adapt to employees’ needs andexpectations.

• Open for Business, GiveOut, OUTstanding(INvolve), and Partnership for Global LGBTIQ+
Equality. BCG partners with these organizations to
support and advance LGBTQIA-inclusive businessenvironments.

• The Female Quotient. We sponsored the Equality
Lounge at Davos and Cannes Lyons, where we
led discussion sessions on removing barriers toadvancement and increasing inclusion for women inbusiness.

• World Economic Forum’s Partnering for Racial
Justice in Business Initiative. We are a founding
member of this global coalition committed to creating
equitable and just workplaces for underrepresented
racial and ethnic employees and collectively advocating
for inclusive policy change.

• Women’s Forum for the Economy & Society. We
are a sponsor and knowledge partner of this group,
and we participated in its global conference in Parisin November with a plenary on inclusion and a panel
discussion about women in leadership.
• UN Women. We cohost a gender diversity roundtablewith UN Women in Denmark, presenting our thought
leadership and assembling leaders to share experiences
and best practices for advancing gender diversity.
• G20 Empower. We are a knowledge partner in thisalliance of private sector and government leaders thatjointly advocate for the advancement of women in
leadership positions in the private and public sectors.

• Management Leadership for Tomorrow. We
codeveloped the Black Equity and Hispanic Equity
at Work Certification Programs. We have achieved
silver certification in the Black Equity program andhave embarked on Hispanic Equity certification. We
are developing a comprehensive racial equity plan tocontinue to make progress on this front.
• The Valuable 500, Business Disability Forum, andDisability:IN. We partner with these organizations topromote disability inclusion.

BCG’s Diversity, Equity, and Inclusion Partners

23. Average for BCG employees who completed online modules.

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Employee Well-Being
Our VisionWellbeing@BCG is our holistic global framework and set of
guiding principles for supporting the delivery of healthbenefits and well-being solutions that are suitable for each
locale and are accessible to all employees and theirfamilies. Our approach is founded on the belief that people
should be physically and mentally well, socially motivated,in good financial health, and connected to their workplaceand community. Through this effort, we contribute to SDG 3:(Good Health and Well-Being).
We empower employees to take care of themselves, and we
support them at all life and career stages. Through ourglobal well-being microsite, learning platform, and employee
assistance program, we ensure that our people have accessto the support they need when they need it most. To that
end, we offer high-quality benefits and family support
programs, flexibility in how and when they work, time off torecharge and pursue personal interests, and extensive
opportunities for personal and professional development.
Our global well-being advisory function, part of our Global
Benefits Center of Expertise, provides expert advisory
services to local HR teams on all topics related to wellbeing, including creating, testing, implementing, andevaluating innovative solutions to bring value to our people.
2023 Highlights
We continue to develop our global well-being program,
Energize to Thrive. Through leading-edge research inhuman physiology and holistic health, this program offers asuite of opportunities, from interactive webinars anddiverse podcasts to engaging in-person events. It focuseson transforming daily routines into sources of energy andinspiration by creating habits related to recovery,
movement, nutrition, and self-regulation—all of which havebeen shown to support physical and mental well-being.
We have also built the four cornerstones of Energize toThrive into our continuous learning journeys so that all
employees can benefit from these essential well-being
skills and increase their work-life harmony. We enable
innovation and continuous learning in numerous ways,
including through micro-learning videos, data insights fromwearable technology, and support from health coaches.
This approach helps employees embed important insights
into their future ways of working.
Our Wellbeing@BCG virtual-learning series continues togrow. Launched in 2020 to support employees withpandemic-related emotional health challenges, theinitiative reached more than 8,100 participants in 2023
through 34 webinars. Participants provide importantevaluations and feedback that we use to continuously
enhance the program and inform topics of interest.

BOSTON CONSULTING GROUPThe growth of our MyBenefits platform at BCG is a key
part of our commitment to strengthening the employee
benefits experience. By the end of 2024, MyBenefits will be
operational in more than 40 countries This global
expansion underscores our dedication to providing
comprehensive health and well-being resources for all BCG
employees. MyBenefits serves as a central hub of
information and selection options for our diverse healthand well-being benefits.
Normalizing the Conversation About Mental Health
BCG is committed to fostering mental health awarenessand removing the stigma associated with it. We envision aworkplace where mental health is valued, promoted, andprotected just as physical health is. We want everyone tohave an equal opportunity to enjoy mental health andequal access to the support they need.
On World Mental Health Day (October 10, 2023), ourglobal People chair issued a message to all colleagues tohighlight the importance of prioritizing mental health andto promote the opportunity to complete the Everymind
Mental Health Champion Course. Open to all BCGers, thecourse encourages people to invest time in their own andtheir colleagues’ mental well-being.
Beyond our global efforts, we’ve ignited a series oftransformative local initiatives. In our North America
region, we are spearheading change through acomprehensive array of training and workshops designed
for individuals and senior leaders. These sessions range
from “Supporting Employee Mental Health” to “Soaring
Past Setbacks: Strategies for Building Resilience,” and they
include unique offerings such as “Personal Care Journey/
Journey to Find a Therapist,” “Getting Better Sleep,” and“Surfing Through Stressful Times,” which we havestructured to resonate with and empower our teams.
BCG also recognizes the unique challenges that diverse
groups face. That’s why we’ve launched targeted
workshops that focus on the nuanced intersections ofidentity, including mental health considerations for
LGBTQIA+ communities and communities of color. Eachinitiative is a step toward a more inclusive, understanding,and mentally healthy workplace that hears every voice andsupports every individual’s well-being.
For example, our Central Europe system provides BCGers
with an expansive mental health offering. In 2023, BCG
trained 10% of the firm’s core workforce in that region as
certified Mental Health First Aiders. This program educatedvolunteers to spot signs of people within their teamexperiencing mental health issues and to guide them toappropriate support. Reference materials include a “Mental
Health Master Guide,” which identifies internal and external
resources. The training series will continue in 2024.

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Our Middle East system enhanced its holistic well-being
offering in 2023, too, focusing on mental well-being andsupport. This effort included, but was not limited to,
upskilling our employees with mental health qualifications,
hosting “Real Talk” sessions with senior Middle East
leadership to encourage open conversations and a
psychologically safe environment, piloting the use ofwellness coaches for our case team leadership, andbringing counselors into our offices at times of crises.

All employees have access to leading mental health andwell-being professionals through the Employee Assistance
Program and health insurance, and through extensive
well-being resources. Mental well-being continues to be a
top BCG priority for 2024, with even more focus on
psychological safety and Inclusion.

BCG in Numbers

100%of BCG employees have access toresources and services that span
the range of our Wellbeing@BCG
framework

8.1K+

employees participated in
Wellbeing@BCG virtual learning
sessions

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Learning and Development
We believe that strong learning experiences enhance
employees’ development, deepen their sense of belonging,and greatly increase their potential impact on our firm, ourclients, and the world.
We integrate learning into day-to-day work, offering
multiple delivery channels (in-person, virtual, online, andteam-based) to ensure easy access. This approach supports
each employee’s growth, from onboarding throughindividual skills aspirations and career progression, withformal, just-in-time, and on-the-job resources. We help our
people hone the skills they need to perform in their current
roles and to unlock their full potential for future growth.
This contributes to SDG 4 (Quality Education) and SDG 8(Decent Work and Economic Growth).
Our approach centers on four core elements:• Personalized Career-Step Educational Programs.
These multifaceted learning journeys use an array oftools and techniques, including in-person, classroombased learning and discussion, virtual live sessions,digital learning primers, and post-program individual orgroup coaching.
• An Extensive Repository of Internally Developed
Learning Resources and External Libraries.
We have more than 4,000 modules for foundational
skills and expert knowledge, as well as access to awide selection of external libraries—such as LinkedIn
Learning, GetAbstract, and TED@Work—that offer more
technical skills.
• Expertise-Building Accelerators. We rapidly build theexpertise of our employees across many different cohorts
and career steps on specific skill sets, using intensive,
targeted programs that typically combine digital learning
primers and classroom sessions. Like the other elementson this list, this initiative contributed to the 1.2 million
hours of learning that BCGers undertook in 2023.
• Dedicated Apprenticeship Model. Our apprenticeshipmodel builds on a growth mindset with quick and tightfeedback mechanisms. Our world-class learning anddevelopment offerings fuel this model in two distinct
ways: first, new managers and case leaders masterthe ability to provide timely, specific, and actionable
feedback; and second, we offer an extensive content
library, along with coaching opportunities, to effectively
support a learner’s growing command of the material.

2023 Highlights
Expanded Continuous Learning Journeys
We enhanced our learners’ timely access to needed
training and enabled them to continuously invest in theircore learning. More than 5,700 employees accessed
continuous learning journeys for their core learning
modules in 2023, taking advantage of a strong onboarding
start followed by self-paced, self-directed upskilling
experiences personalized to their core needs.
Strengthened Learning Experiences for Business
Services Staff
Building on the success of Teaming@BCG, which thefirm rolled out in 2022 to client-facing staff, we launched
the program for our business services team members inearly 2023.
Teaming@BCG codifies how we work at BCG. It compiles
team practices, behaviors, and mindsets that form ashared language that strengthens cross-team collaborationand communication. Most of our teams have successfully
deployed the Teaming@BCG approach, and we continue toinvest in the program through learning series and expert
coaching support.
In addition, we invested significantly in expanded learning
opportunities for our business services staff. Learners
across all levels, locations, and functions now have greater
access to formal learning, and new delivery methods haveenhanced the overall learning experience.
We also increased the number of learning programs thattarget role-specific expertise, invested in enabling our people
managers, and launched the first-ever Global Learning
Month, offering business services employees relevant
learning opportunities such as improving communication,
making better use of strengths, and boosting productivity.
We are investing in developing technical skills, such as
GenAI, and assessing how to leverage those technologies
responsibly. And learners have access to curated, self-paced
learning across a broad range of topics.
Increased Expertise on Critical Topics
BCG is committed to continuously developing andupdating our staff’s technical and digital skills in line withthe latest trends.
Chapter Journeys. This new learning offering targets
varying skill levels, from novices entering the world oftechnical and digital operations to employees masteringfoundational skills to experts who seek certification in thelatest technologies.

To ensure that our learning offering matches our
employees’ needs and the firm’s priorities, our Global
Learning Council sets priorities and regularly reports to the
Executive Committee and People Team leadership. The
Global Learning Council guides the evolution of ourlearning and development approach in response to new
business needs, BCG’s overall strategy, a varying anddiverse skills base, and employee demand.

Each of the seven self-paced Chapter Journeys includes a
combination of cutting-edge curricula created by our inhouse experts and externally sourced content. We categorize
the content by level of capability and complexity. The
external content comes from renowned platforms such as
LinkedIn Learning, O’Reilly, Udemy, and Cloud Academy.
This year, approximately 2,700 colleagues engaged with
Chapter Journeys.

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Credentials. We also offer opportunities for learners toearn certification in various areas, such as architecture,cloud, CRM, cybersecurity, human-centered design, ERP/
enterprise solutions, and data science. We partnered withCredly.com for internal recognition of mastery via
credentials, with more than 2,200 credentials conferred.
We also offer external certifications through AlliancePartners, which more than 700 employees now proudly
showcase on their LinkedIn profiles.
Technology and Digital Advantage Global Academy.
This offering launched in September 2023 and has
become a pivotal resource for enhancing technical anddigital expertise at BCG. As a central hub for self-paced
learning, it offers access to a diverse range of top-quality
content, including comprehensive overviews and in-depth
explorations of topics such as technology platforms(including ERP), deep tech, digital transformation, andcyber and digital risk. We’ve seen a surge of interest in theFundamental Tech Fluency credential, which is exclusive to
BCG and establishes a solid foundation in digital and tech
discussions, signifying the learners’ readiness to embark
on digital- and tech-focused projects.
AI and Climate and Sustainability. These topics are highbusiness priorities for our clients’ CEOs, and they represent
a critical opportunity and challenge for people globally. For
that reason, we are doubling down on our internal expertise.
We’re proud to offer a progressive learning approach withcomprehensive multimode journeys, from nudges for broad
audiences to credentialed expertise-building programs:• AI Academy. This program begins with introductory
instruction, followed by cohort experiences. At the end,
participants take part in the AI Accelerator, an eightweek, 20-hour program of self-paced learning, alongwith virtual sessions with a Harvard Business School
professor. This experience is in addition to the training
offered to all BCGers as part of our rollout of GenAI
tools. Such training has seen internal adoption rates
quickly reach and surpass 70%.

2023 in Numbers

1.2M
learning hours logged by
BCG employees

44hours of formal learning for client-facing
employees (excludes informal learning)88%of employees participated in
career step learning experiences• C&S Academy. The goal of the C&S Academy is to
upskill our staff on climate and sustainability issues.
Offerings include our nudge campaign, where we sharemicrolearning insights with all staff; cohort learningjourneys, to understand the business imperative of
climate and sustainability for BCG; our C&S Learning
Hub, which provides on-demand resources to staff;
our C&S Accelerator, a foundational training program
designed to educate the wider BCG population; and our
80-hour capstone stewardship programs, developed with
top universities (Cambridge, Columbia, and NanyangTech) and taught by leading professors. In addition, we
provide functional learning for internal professionalgroups, including finance and IT, to better serve theirunique skill sets.

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INTRODUCTIONDRIVING SOCIAL IMPACT

Promoting Responsible
Business Practices

PROTECTING OUR PLANETEMPOWERING OUR PEOPLE

Paris - Raphäel

2023 in Numbersof generative AI
projects were reviewed
by our Responsible
AI teamof our teams havecompleted businessethics training
programs

10% to 15% of ourannual capacity wasinvested in researchand development

20+ publications on Responsible AI in 2023

Global revenue generated (in billions)

Racial or ethnic group representation (%)

of employees havecompleted data privacy
and information security
training

PROMOTING RESPONSIBLE BUSINESS PRACTICES

100% 100% 100%

$12.3
2023

$11.7
2022
$11
2021

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APPENDIX

$7
2020

A

commitment to responsible and ethical practices
defines our approach to business and engagement.
We consider this long-standing commitment criticalto the success of our clients and our firm. We strive totransform business and society for the better, incollaboration with our clients and suppliers and in our own
operations, always guided by BCG’s values and purpose.

In 2023, as in prior years, 100% of BCG employees wererequired to confirm their understanding of the Code andagree to comply with its terms.19 Code training is
mandatory for all BCGers every two years, and we deliver
and track it via our online learning platform. Employees
who fail to complete the training will have access to their
BCG computer system blocked until they do.

BCG participates in the United Nations Global Compact(UNGC). We also commit to respect UN Guiding Principles
on Business and Human Rights, and we have maintained aperfect score in the Human Rights Campaign’s Corporate
Equality Index.

BCG’s Code of Client Service
According to BCG’s founder Bruce Henderson, the “mostimportant value of all, for each professional, must be
dedication to the task of optimizing client contribution tosociety.” The BCG Code of Client Service (BCCS) provides
a framework for global policies and processes to back ourlong-standing shared values and optimize the value wecreate for clients and society.

Our chief risk officer oversees our global risk team. In
2023, we continued to invest heavily in risk management
to improve our capabilities and expertise and to meet theneeds of all our business and client stakeholders

Corporate Culture and Responsible
Business Practice
BCG Code of Conduct
Our Code of Conduct sets expectations for the behavior of
all BCGers, complements the ethos underlying our UNGC
commitment, and serves as a bridge connecting our firm’svalues, policies, and norms to the actions of individuals.
The Code is designed to foster ethical decision making andpromote behaviors that meet the highest standards ofprofessional conduct.
The Code covers topics such as our commitments to ourclients, our employees, the firm, and society. It highlights theimportance of ethically providing client services, protecting
confidential information, managing actual and perceived
conflicts, enabling information security, competing fairly,
and maintaining a safe environment free of harassment anddiscrimination, together with a “speak up” culture thatencourages stakeholders to raise concerns. It underscores
our focus on achieving a positive and lasting impact onsociety. The Code also reaffirms our adherence to the laws
and regulations of the countries where we do business.
As a participant in the UNGC, BCG supports the Ten
Principles on human rights, labor, environment, and anticorruption, and the UN Guiding Principles on Business andHuman Rights. As reflected in the Code, we are committed
to incorporating the UNGC goals into the strategy, culture,and day-to-day operations of the firm.
Our Assurance & Advisory team, described further on
page 87, periodically assesses the adherence of BCG’s local
offices to the Code, as well as to global and local policies,
processes, and standards. Everyone at BCG confirms theiradherence to the provisions of the Code as a condition of
their employment and must reaffirm their compliance in a
written acknowledgment every year.

We regularly remind BCGers that a commitment to ourvalues and purpose entails considering not only the valueof our work for clients and society, but also any associatedrisk for clients, society, and BCG. Our aspiration, groundedin our company’s values and purpose, is to create a culture
committed to accountability, transparency, honesty,
humility, and continuous improvement. A key element of
the Code of Conduct, the BCCS underlines ourcommitment to lead with integrity as we serve our clients,
operate in our communities, and guide our teams.
The BCCS rests on six core principles that address different
dimensions of our firm’s work. (See Exhibit 7.) In practice,these six guiding principles underpin the BCCS and help
guide us in systematically identifying and evaluating
opportunities and risks—and mitigating those risks—throughout the case life cycle so that we live up to theaspirations of our founder. We recognize, however, thatwritten policies can go only so far in mitigating risk andthat our people, culture, and processes are critical toensuring that we optimize our contributions to society.
BCG also recognizes that our people sometimes encountergray zones, where the right steps may be unclear. Although
BCG empowers its case teams as its active first line ofdefense in risk management efforts, we also have robust
resources and processes to support our teams insocializing risk mitigation across the firm. BCG’s valuesfirst culture is supported by dedicated teams, managing
directors and partners (MDPs), other senior leaders, BCG’sbusiness functions, and regional and global governancebodies that aid in the implementation of the BCCS on
myriad client, supplier, and employee matters. Our people
are dedicated to supporting one another when navigatingcomplex questions and gray zones. “Grow by growing
others” is a guiding principle of our culture.

19. Because new people routinely join and depart BCG, and some of them may not have completed the training at the time of reporting, complianceis marginally under 100%.

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Exhibit 7 - Our Code of Client Service Defines Our Expectations andGuiding Principles Across Six Dimensions and Values

What types
of work wedo and wherein the world
we do itWho we work
for and how
we engage

The impact
our work canhave on otherclients andstakeholders

How we workwith third
parties

How wemanage andprotect
information

How we work
together andtreat eachotherSource: BCG.

BCG’s culture, supporting resources, and commitment to
the firm’s purpose of unlocking the potential of those who
advance the world require collective effort. In keeping withthat purpose, BCG regularly declines client work or otherrelationships that do not align with our values. Continuous
improvement in these areas requires strict alignment toadapt to the constantly changing world around us and toshape actions and choices that embody our commitment
to advancing responsible business practices.
Anti-Bribery and Corruption
BCG’s culture of integrity is upheld by a policy of zerotolerance for corruption. We consider this standard essential
for performing our role in society, as well as for preserving
our reputation as trusted advisors of our clients and as an
employer of choice for the best talent. Our policies are
consistent with the UN Convention Against Corruption.
The firm’s Anti-Bribery & Corruption policy is a key
component of both the Code of Conduct and the BCCS,
defining our commitment, expectations, and approach. All
BCGers are expected to abide by applicable laws, treaties,
and regulations that prohibit bribery and other corruption,
including the US Foreign Corrupt Practices Act and the UK
Bribery Act. Accordingly, BCGers must not, either directly
or indirectly through third parties, offer, attempt to offer,solicit, authorize, or promise any type of bribe or kickback
to obtain business or an unfair advantage. This policy
pertains to all members of the BCG community, including
MDPs, officers, employees, contractors, and others withwhom we conduct business. We also adhere to faircompetition regulations and all other laws in the countries
where we do business.
BCG’s Anti-Bribery & Corruption policy provides guidelines
for hospitality, gifts, and other forms of giving to external
individuals. BCG’s compliance and legal teams maintainclose and continuous engagement with the business,
providing support to employees as needed andencouraging them to seek guidance through appropriate
channels when faced with ambiguous situations.

BOSTON CONSULTING GROUPIn addition to completing our mandatory Code of Conduct
training, all new BCGers must complete an interactive
Anti-Bribery & Corruption learning module, which explains
our values, clarifies the principles of the policy, andprovides an overview of bribery and corruption risks andoffenses, as well as offering guidance on interacting withgovernment officials and on identifying and escalating
potential red flags. Moreover, this module contains
customized content that enables our leadership cohorts tofocus on scenarios and risks that are most relevant to theirroles. BCGers must also periodically participate inmandatory refresher training and, at key promotion points,
in live training sessions.
Our zero-tolerance approach to bribery and corruption extends
beyond our own employees to our contractors and suppliers,
as set out in a supplemental Supplier Code of Conduct. BCG
expects all third parties to operate in full compliance withall applicable laws and regulations at all times.
Human Rights
Respect for the individual is a core value at BCG, asreflected in our firm’s history, the BCG Code of Conduct,
and the BCCS. As noted previously, BCG participates in
the UN Global Compact (UNGC). We also commit torespecting the UN Guiding Principles on Business andHuman Rights, as stated in our Supplier Code of Conduct,
and we have maintained a perfect score in the Human
Rights Campaign’s Corporate Equality Index.
Given the nature of our industry and operations, the risk oflabor rights violations within our operations is relatively
low. In keeping with our values, we have zero tolerance forany use of child labor or forced labor practices. In all of ourwork, we uphold individual human rights withoutcompromise. Our respect for human rights includes a deep
appreciation of diversity. We provide equitable base pay
and award bonuses on the basis of performance andbehavior, both of which we monitor worldwide.

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BCG is a participant in the UNGC and has publicly
committed to adhering to the UNGC’s principles. Notably,
this commitment includes supporting and respecting theprotection of internationally proclaimed human rights andensuring that we are not complicit in human rights abuses.
The UNGC’s principles are derived from the Universal
Declaration of Human Rights and the International Labor
Organization’s Declaration on Fundamental Principles andRights at Work, both of which accord with BCG’s values.
We have identified that the following topic areas could
present salient human rights risks to BCG:20• Diversity, equity, and inclusion, including, for example,
equal treatment and opportunities for all, accessibility,
and measures against workplace harassment• Data privacy and information security• Working conditions• Corporate culture• Safety and security• Protection of whistleblowers• Sustainable procurement

The following example illustrates our response to humanrights risk. For us, as for other other firms in our industry,working with suppliers who do not adhere to fair labor
practices is a risk that could materialize. BCG expects
suppliers to share its commitment to human rights andequal opportunity, and we will not knowingly do businesswith any partner or supplier that violates our policies orstandards. Our BCG Supplier Code of Conduct defines
these expectations as minimum requirements for suppliers
seeking to conduct business with us. Further, our UK andAustralia Modern Slavery Act reports and NorwegianTransparency Act Statements explain our process forpreventing slavery and human trafficking in our businessand supply chain. Our global screening program vets
suppliers for sanctions, bribery, corruption, and negative
media as indications of each supplier’s historical behavior.
In 2023, specifically, BCG initiated a global program to further
strengthen the way we assess and manage environmental,social, and governance (ESG) risk throughout our global
supply chain; the priority was to roll out the program in the
UK and Germany—with a phased global rollout to follow by
end of 2024—that matches our values and ensurescompliance with existing and emerging ESG regulations.
These include Germany’s Supply Chain Due Diligence Act,and the and the EU’s forthcoming Corporate Sustainability
Due Diligence Directive. We also appointed a human rights
officer to monitor risk management, including for risks
related to human rights and the environment, among our
suppliers and in our own business globally.
Monitoring the effectiveness of our actions so far has taught
us that continuous improvement is key: horizon scanningand internal auditing helped us identify new regulatory
requirements, form appropriate responses, and embedthem into our human rights risk management process. To
learn more about how we identify, assess, act upon, andmonitor human rights risks, see “Raising Concerns andProtecting Whistleblowers” on page 85.
BCG is committed to ensuring that all of its employees areafforded all applicable rights under law, including the right tojoin labor unions, works councils, or other collective
bargaining organizations where applicable. Given the natureof our industry and our private partnership model, tradeunions, works councils, and collective bargaining agreements(CBAs) are not commonplace. In some regions, statutory
CBAs are applicable, and BCG remains compliant with these.
In addition, where country-level works councils exist, some
CBAs have been developed that may contain more favorable
conditions than the minimum legal requirement.

20. To identify these risks, we used a double-materiality assessment methodology, alongside our ERM processes.

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Raising Concerns and Protecting Whistleblowers
Although BCG’s culture is rooted in outstanding
professional standards, we acknowledge that at times
ethical dilemmas, difficult decisions, and behaviors
inconsistent with our Code of Conduct or other policies
may arise. BCG urges any individual to report concerns
about actual or suspected misconduct that may be inbreach of our firm’s values, business ethics, or policies, orthat may be against the law. This information also helps us
understand where potentially negative impacts on humanrights could emerge in our global operations, assess theseverity and likelihood of these risks, and mitigate thechances of their materializing in the first place.
We ask and encourage our people to adhere to the principleof “see something, say something” at all times. We support
this principle through the following process, whichaccommodates both internal and external stakeholders,
including suppliers:• Identify and Understand. Everyone at BCG is
responsible for reporting any known or suspectedviolations of our Code of Conduct, our policies, our values,
or any law or regulation. We follow a strict nonretaliation
policy and do not tolerate reprisal against any individual
who raises a concern in good faith. Our global training
includes reminders on the available channels for reporting
concerns, and it emphasizes the responsibility of each
BCGer to uphold our values. The information gathered
helps us assess and understand the potential negative
human rights impacts of our operations, evaluating theseverity and likelihood of these risks as part of our ongoingrisk assessment process.

• Assess and Monitor. Once someone raises a concern,
regardless of the channel they use to submit it, we
handle it with discretion and in confidence, subject to any
overriding legal or regulatory requirements. We address
all concerns appropriately and in accordance with ourinternal policies. Moreover, BCG promptly, independently,
and objectively investigates business conduct incidents,
including alleged corruption and bribery. This process
also allows us to continuously improve our human rights
impact assessment, adapting our strategies on the basisof the nature and frequency of the concerns raised.
• Review and Adapt. We review the effectiveness of ourreporting channels annually in several ways, including
through BCG’s annual People Survey—a critical input
to understanding how effectively we are supporting our
employees on our value proposition. It asks staff for
their honest opinions on topics related to BCG’s values,
reporting channels, and safety to speak up. Responses tothe survey are analyzed and shared with BCG’s Audit &Risk Committee (ARC) to identify areas of concern andmake improvements. The ARC specifically reviews theescalation thresholds for comments related to harassment
and takes targeted follow-up action in these areas. The ARC
receives quarterly high-level reporting of concerns through
BCG’s Ombudschannel and Speak Up Line. In addition to
mitigating risks, these insights enable us to improve ourhuman rights risk assessment processes over time.

• Report and Reflect. We believe that offering multiple
reporting channels provides the best opportunity for us tocapture issues or concerns. This includes our confidential
Ombudschannel ombudsperson program and our Speak
Up Line, both of which include anonymous reporting
features, are designed to prevent and identify misconduct,and support BCG’s aim to lead with integrity. BCG’s SpeakUp Line is a dedicated platform that allows BCGers andnon-BCGers—whether clients, suppliers, or other third
parties—to report concerns. The Speak Up Line addresses
elements of the EU Whistleblower Directive, including
maintaining minimum standards for communication
with the reporter, confidentiality and protection against
reprisal, and anonymous reporting features, including an
audio-based method of reporting. These channels not
only identify issues post hoc, but also enable our proactive
approach to human rights risk assessment.

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Taxation
Taxes are a key element of a corporation’s contribution tosociety. As such, BCG’s worldwide tax strategy remains a
cornerstone of our pledge to operate responsibly andsustainably. This commitment manifests in several coreareas, such as ensuring that our tax practices are inharmony with the Organisation for Economic Co-operation
and Development’s initiatives on international tax reform,
particularly in combating base erosion and profit shifting.
Our aim is not only to fully comply with our tax-related
obligations but also to maintain transparent interactions
with both tax authorities and our stakeholders. Inalignment with this ethos, we have implemented a transfer
pricing approach designed to help allocate our global
earnings across all of the countries we serve. Thismethodology underscores our dedication to contributing afair portion of taxes in every jurisdiction where we operate.

2023 in Numbers

100%of active full-time employees completed theannual acknowledgment of the Code of
Conduct, confirming their understanding ofand compliance with its terms21

100%

of BCGers have access to a confidential
ombudsperson channel where they canseek advice or report concerns

Global Risk Management
BCG’s Global Risk Management function is a trusted advisor
to the BCG community, enabling innovation and growth inour services, and helping navigate complex risk management
decisions, while supporting and protecting our people,
clients, and brand. Led by our chief risk officer, Global Risk
Management is made up of specialist teams acrosscompliance, data protection, enterprise risk management(ERM), assurance and advisory, information security, andsafety and security. Their job is to be ready for what mightcome next, both from inside and outside the firm, and topartner with other global functions and the frontline businessto proactively identify and holistically manage risks, applying
appropriate guardrails when necessary.
Our approach to risk management follows establishedframeworks and processes that align with best practices
and support our objectives and values as an organization
and as a global risk function. Central to that approach isthe fact that all BCGers are responsible for risk
identification and risk management. Our specialist risk
management teams work in partnership with our MDPs
and employees to proactively identify and manage risks
across our regions, practices, functions, and risk categories.
To foster ongoing engagement and partnership in identifying
and mitigating the key risk exposures facing our business, werely on a variety of initiatives:• Proactive management and assessment of our global risk
register through evaluation of various data sources andregular engagement with MDPs and other senior leadersof our firm
• Local and global commercial advisory processes tosupport case teams with client and topic selection andconflict management• A global risk and compliance node network comprised ofsenior leaders across our geographies who help embeda culture of risk management and participate in ourcommercial advisory processes• Internal risk reviews of BCG offices and functions every
three to four years• Full compliance with the ISO 27001 international
information security standard• Regular virtual and in-person training on various risk,
compliance, and information security topics—including
anti-bribery and corruption, conflict of interest, andcybersecurity—as well as cohort-specific training for
employees in senior positions• Alignment of BCG’s first double materiality assessment—
looking at the firm’s impact on both people and theplanet—with our global ERM system

21. Because new people routinely join and depart from BCG, and because some of them may not have completed the training at the time ofreporting, compliance is marginally under 100%.
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This last point will help BCG comply with ESG regulations,such as the EU’s Corporate Sustainability Reporting
Directive, in the future. Moreover, a number of voluntary
frameworks, including the Global Reporting Initiative andthe World Business Council for Sustainable Development,
consider it best practice.
The scope and effectiveness of BCG’s governance, risk
management, and internal controls receive independentand objective evaluation from our Assurance & Advisoryteam, as well as through our external auditor and industry
certifications. Internal risk reviews typically occur on athree- or four-year cycle, depending on the local risk
environment and the results of prior reviews.
In addition to conducting internal risk reviews, theAssurance & Advisory team leverages data analytics toenhance procedures, performing global functional andshared service reviews and geographic spot checks tovalidate that control changes are designed properly andoperating effectively. At the highest level, risk oversight isprovided by our CEO, Executive Committee, and Audit andRisk Committee—a committee of the board, along with an
external and independent senior advisor, that meets atleast six times each year to review the firm’s risk
management profile.

2023 Highlights
A key objective across Global Risk Management is to enable
all BCGers to navigate the risk landscape while protecting
and adding value for our clients, our employees, and thefirm. To support this objective, BCG invests heavily in risk
management to improve our capabilities and expertise andto meet the needs of our business and client stakeholders.
This effort includes investment in technology solutions todigitize the function and ensure that all BCGers have thesupport they need to identify and manage risk.
In 2023, our investments included technology to support
the System Commercial Advisory process, which governs
high-risk engagements for client, topic, and conflict choices,
as well as other key compliance processes.

2023 in Numbers

100%

100%

92%

of 2023 office reviews—
including internal risk reviews,
spot checks, and functional
advisory—were completed

for ISO 2700 certification
coverage for our Information
Security Management
Systemof BCGers explicitly
consider risk managementin their daily work

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Safety and Security
BCG commits to providing a safe and secure work
environment for our employees. Across the organization,
our safety and security programs foster the adoption ofbest practices, helping to safeguard the security and wellbeing of employees.
Our Global Security team of experienced professionals
partners with our offices, employees, and business teams
to build internal resilience and protect our employees andassets through a comprehensive range of programs
focusing on travel and workplace security.
Staying Safe on the Road
Given the nature of our work, travel poses the mostmaterial risk to our employees’ health and safety. Our
Global Security team monitors global trends and potential
threats in all locations where BCG operates. We adopt a
risk-based approach to ensure the safety of our staff
members during their travels.
Equipping our employees with advanced, real-time digital
tools that provide access to travel safety, security, and medical
support and enable immediate one-touch connectivity to our
24-7 response center is one of our key security strategies. This
allows employees to make informed decisions that safeguard
their well-being when traveling. For destinations where
elevated security threats exist, we have a rigorous pretravel
evaluation, planning, and authorization process overseen by
our Global Security Committee, which consists of BCG’s chiefrisk officer, our general counsel, a regional risk leader, and theexecutive director for security and sustainability. We partnerwith leading providers in the security industry to help ensurethat our employees have access to security and medical
support, regardless of their location.
Creating a Safe and Secure Workplace
BCG offices implement programs to ensure the health andsafety of our employees and visitors, adhering to BCG’s
physical security standards, which we fully revised andupdated in 2023. These standards set the benchmark forsecuring our buildings, offices, and operational processes.
Our offices are designed to maximize natural light and provide
ergonomic workstations, enhancing employee well-being andsafety. Promoting awareness of health and safety procedures is
integral to our approach and is a standard module in our newhire induction process. Employees visiting an office for the firsttime have access to specific local health and safety procedures.
Before establishing a new office, BCG conducts
comprehensive risk assessments to mitigate potential risks
to our employees and the firm. The Global Security teamplays an essential role in that work. As noted earlier, our
Assurance & Advisory team conducts regular reviews of all
BCG offices, typically on a three- to four-year cycle,
depending on the level of risk exposure. These reviews
include assessments of office safety and security protocols
and practices, reinforcing our commitment to creating safe
and secure workplaces across our global network.

BOSTON CONSULTING GROUP

Building Resilient Operations
Our global and local Incident Response Teams, led byexperienced MDPs and supported by our global team, areready to respond to adverse events swiftly and effectively.
They receive training and resources to reduce the impact ofsuch events on our people, operations, and assets.
In 2023, we enhanced our business resilience, incident
response capabilities, and disaster recovery processes withnew trainings and tools. BCG conducted simulation
exercises in every office, integrating insights from recent
global events and leveraging and embedding digitaldynamic response tools and processes that the firm
introduced in 2021 and 2022.
The Global Security team intensified its efforts in horizon
scanning and scenario planning to address the uncertain
geopolitical climate. In collaboration with local leaders andindustry experts, the team crafted scenarios, provided
leadership briefings, and established cross-functional security
working groups to ensure that BCG is thoroughly prepared fora wide range of contingencies. We continue to advance ourresilience programs to protect our people and assets.

2023 in Numbers

100%of new offices that opened in 2023 underwent
a physical security risk assessment

100%of new consulting staff completed ourmandatory travel safety trainingZerowork-related fatalities or highconsequence injuries

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Responsible Artificial Intelligence as aStrategic Priority
At the start of 2023, only a few short weeks after thelaunch of OpenAI’s ChatGPT, the entire world seemed tosuddenly become aware of the potential power and pitfallsof artificial intelligence (AI) and generative AI (GenAI).
As the year went on, we witnessed new and exhilarating
ways of creating text, images, and video; retrieving andanalyzing information; and interacting with chatbots inmore fluid conversation. At the same time, because of therapid and widespread popularity of GenAI tools, the public
became aware of the many risks posed by AI and GenAI,such as biased, toxic, and erroneous content. Government
officials seized the opportunity to approve new legislation,such as the EU AI Act, that has sweeping implications forthe commercial deployment of the technology. In thiscontext, the responsible design and implementation of AI
matters more than ever.
Our clients trust us to help them deliver transformative
business impact without inadvertently harming people,
communities, or the environment—or compromising
BCG’s core values. This is why BCG’s responsible AI (RAI)
program is crucial to our work and fundamental to ourclient engagements. By unlocking our clients’ potential toharness AI in a responsible way, we’re helping build
resilient digital infrastructure, promote inclusive andsustainable digitization, and fostering innovation.
Our chief AI ethics officer, Steven Mills, oversees BCG’s
RAI program and leads the implementation of our global
RAI policy. This policy is one component of BCG’s Code of
Client Service, which ensures that the work we do aligns
with our core values and purpose. Our AI Code of Conduct
further codifies BCG’s commitment to responsibly design,develop, and deploy AI systems both internally and withour clients around the world.
BCG’s RAI policy outlines a set of high-risk areas that
require additional review and approval. These areas involve
projects that could have a substantial positive impact onsociety and our clients but also pose a higher level of risk.
Proposals for such projects are reviewed by BCG’s
Responsible AI Team with crucial input from the
Responsible AI Council (RAIC), a global, cross-functionalgroup of senior leaders and experts who provide feedback
on each proposal, surfacing risks, defining mitigation
strategies, and creating guardrails. BCG also integrates the
Responsible AI Team into the firm’s processes for AI
software development to ensure that all mitigation
strategies are in place and that the RAIC monitors the
progress of each project over time. The Responsible AI
Team also scans for new risks and opportunities as they
emerge, helping to support excellence in the long term.

BOSTON CONSULTING GROUP

Johannesburg - Megan

2023 Highlights
BCG enhanced its AI literacy by conducting GenAI training
sessions for both technical and nontechnical staff, including
top executives and managing directors and partners. Thesesessions gave attendees the knowledge they needed toincorporate BCG’s RAI principles in the development andimplementation of GenAI projects, while also identifying
new and heightened risks associated with these tools.
To support the responsible use of GenAI, we established acomprehensive Generative AI Guidance page, providing
up-to-date best practices. This page also includes detailed
guidance and toolkits tailored for BCG teams using theenterprise version of ChatGPT for marketing content
creation and external chatbot development.
We also formed the GenAI Focus Group, a multidisciplinary
collective, to explore GenAI applications throughout BCG’s
global operations. This group is committed to evaluating
cutting-edge use cases according to the latest industry
standards for RAI, keeping abreast of regulatory changes,
and advising our leadership on necessary updates topolicies and procedures.
Following insights from the GenAI Focus Group, we refined
BCG’s RAI Policy to encompass the novel risks associatedwith GenAI tool usage. This process included unifying our
AI software review and development frameworks acrossthe RAI team, the Risk and Compliance team, and the AI
quality assurance team (DevEx).
Additionally, we reviewed all GenAI tool access requests,
establishing stringent guidelines for approved applications,particularly for high-risk cases, in line with BCG RAI Policy.
In response to the escalating demand for AI and GenAI
expertise within BCG, we increased the RAI Team’s
headcount threefold, underscoring our commitment toscaling our AI capabilities sustainably and ethically.

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2023 in Numbers

100%

100%

of GenAI projects werereviewed by the RAI Teamof high-risk cases were
given guardrails

Advancing Responsible AI Through Partnerships andThought Leadership
AI technology is evolving rapidly, which can increase thedifficulty of capturing its full value in a responsible way.
However, BCG’s expertise and partnerships with thoughtleading organizations has helped to unpack this complexity:• Global AI Action Alliance of the World Economic
Forum. The alliance is a multistakeholder collaboration
platform and project incubator designed to accelerate
the adoption of inclusive, trustworthy, and transparent
AI globally and across industry sectors. The alliancebrings together more than 100 leading companies,
governments, international organizations, nonprofits,
and academics united in their commitment tomaximizing the societal benefits of AI. With othermembers of this alliance, we are drafting Responsible AI
Stewardship for Investors (forthcoming).
• Responsible AI Institute. The institute focuses onproviding tools for organizations and AI practitioners tobuild, buy, and supply safe AI systems that are worthyof our trust. BCG provided input and feedback on RAI
Institute’s RAI Organizational Maturity Assessment(OMA) framework, its Conformity Assessment framework,
and its Accredited Certification Program. Together, we
published “Navigating Organizational AI Governance.”• MIT Sloan Management Review. This publication explores
how leadership and management are transforming
themselves in a disruptive world. It also helps thoughtful
leaders capture exciting opportunities and address thechallenges that emerge as technological, social, andenvironmental forces reshape how organizations operate,compete, and create value. BCG worked with MIT Sloan
Management Review (MIT SMR) to conduct innovative,
original research on RAI issues through global surveys
and in-depth interviews with leaders working at a rangeof companies, deepening our understanding of RAI
challenges and opportunities. One result was Building
Robust RAI Programs as Third-Party AI Tools Proliferate, areport produced with MIT SMR that shares our insights
and offers ways for organizations across the globe to
implement RAI at scale.

BOSTON CONSULTING GROUP

Key Publications on
Responsible AI
Navigating
Organizational AI
GovernanceIs Your Organization
Investing Enough in
Responsible AI?
‘Probably Not,’ Says
Our Data
Building Robust RAI
Programs as ThirdParty AI Tools
Proliferate

AI at Work: What
People Are Saying

Finding Your Way
Through AI’s
Regulatory Jungle

Responsible AI
Belongs on the CEO
AgendaPROMOTING RESPONSIBLE BUSINESS PRACTICES | 2023 ANNUAL SUSTAINABILITY REPORT90

Information Security and Data Protection
Data protection and security are fundamental to everyorganization because they reinforce trust and integrity,
which are vital for long-term success. In today’s digital age,
data is a valuable asset, and safeguarding it ensures theresilience and reliability of our operations. BCG’s robust
data protection measures and security controls
demonstrate our commitment to ethical practices and tosafeguarding confidential and personal data, in line with
our principles of sustainability.
For our clients, this commitment means that they can trust
us with their sensitive information, knowing that we willhandle it responsibly and securely. This trust fosters
stronger, lasting relationships, which are essential for
enduring business growth. Secure data management also
mitigates risks of data breaches, protecting our clientsfrom potential financial and reputational harm. By
safeguarding client information and navigating risks
adeptly, BCG fortifies its reputation and contributes to thestability and success of its clients, generating lasting
growth and innovation in the global business landscape.
From a societal perspective, prioritizing data security
contributes to a safer digital environment. Promoting aculture of respect and responsibility demands upholding therights and privacy of individuals. Furthermore, by settinghigh standards in data security, we strive to inspire otherorganizations to follow, thereby elevating industry practices.
We adhere to all local laws and regulations pertaining to
the protection of personal information and the rights andfreedoms of individuals. Protecting privacy and data isessential to preserving the trust of our clients andemployees. Our global privacy and data protection
program supports legal compliance and effective privacy
risk management in all countries where we do business.
BCG’s policies governing the use and protection of
personal information and confidential data cover global
data protection, privacy, personal data classification, dataretention, personal data breach notification, and employee
privacy policies, among others. We also provide guidelines
to help staff interpret these policies; these guidelines arebinding on every BCG employee and facilitate complianceacross our operations in all markets.

Warsaw - Monika

Data Protection
BCG’s Data Protection Office oversees our global privacy
and data protection program and reports to our chief risk
officer and general counsel. The Data Protection Officeserves as the contact point for data protection authorities,
handles internal and external data privacy requests,
provides advice on adherence to data privacy regulations,monitors compliance, and manages the network of local
data protection contacts. In partnership with our risk team,the Data Protection Office also administers BCG’s dataprivacy training and awareness program.
Specific procedures promote compliance with global
regulations. Among these procedures are the following:• Engagement with staff to identify and manage dataprotection risk
• Comprehensive records of how BCG processes
personal data
• Data protection impact assessments to determine
whether high-risk information systems have proper
controls in place to mitigate risks to individuals• Data-processing agreements with vendors, outlining
security and privacy responsibilities• Controls to reinforce the lawful transfer of data within
BCG and with BCG’s data processors• Methods to guarantee that BCG’s employees manage
personal data appropriately• Processes to escalate issues and notify our clients andthe appropriate authorities in the event of a personal
data breach• Dedicated staff to handle data access, correction, anddeletion requests
In 2023, all employees completed mandatory privacy andsecurity training. We developed these training modules tomake them an engaging learning experience.

BOSTON CONSULTING GROUPPROMOTING RESPONSIBLE BUSINESS PRACTICES | 2023 ANNUAL SUSTAINABILITY REPORT91

Sustainable Procurement

2023 in Numbers

BCG’s commitment to sustainability goes beyond theboundaries of our firm to include the suppliers we use. We
embed leading ESG principles in our procurement policy,
processes, and governance—not only to drive more value
for BCG but to unlock the potential of sustainability
practices more broadly.

100%of BCG employees completed the annualcompliance training22

Information Security
Information security and risk management hold paramountsignificance in today’s world, influencing not only individualorganizations but also global economies, societies, and theinterconnected fabric of the digital age.
BCG’s Risk Management function partners with
Information Security to adopt a structured approach in
identifying, evaluating, and mitigating potential threats
and vulnerabilities. It acts as a proactive shield against
unforeseen events that could disrupt operations, upset
financial stability, or tarnish reputations. Robust risk
management empowers organizations to foresee
challenges, make well-informed decisions, and allocate
resources prudently to mitigate potential losses.
Ultimately, information security and risk managementtranscend organizational boundaries, influencing
economies, driving technological advancements, andupholding the foundations of trust and reliability in adigitally dependent world. For BCG, these principles serveas the bedrock of excellence and integrity and ensure that
we are trustworthy stewards of our clients’ information.
BCG’s Information Security Risk Management (ISRM)
program safeguards BCG’s brand and intellectual property,
as well as employee and client information, from misuse,damage, and unauthorized access. We adhere to a
multilayer, proactive approach to reinforce theconfidentiality, integrity, and availability of information,
while maintaining cost-effective security that protects thefirm, our people, and our clients. We comply with allcontractual requirements, laws, and regulations related to
information security in the countries where we operate.
All information security policies and practices are risk
sensitized and follow the code of practices established by
the International Standard ISO/IEC 27002. We have received
ISO 27001 certification for our global Information Security
Management System and for all of our offices around theworld. We also ensure that we have necessary certifications
in local markets, such as Cyber Essentials Basic and Pluscertification in the UK and TISAX certification for offices inGermany, India, and the US. We employ best practices for
optimal management of business risks, while also focusingon people, processes, and technologies.

We define sustainable procurement as the management ofenvironmental, social, and economic impacts of an end-toend supply chain. BCG’s goals are to prioritize environmental
protection, make significant progress toward net zeroclimate impact, support social responsibility and diversity,and contribute to a more prosperous economy throughinnovation and financial inclusion in our supply chain.
To achieve this, we safeguard BCG by implementing risk
identification and mitigation processes. We conduct due
diligence and monitor suppliers to proactively identify andmanage any adverse impact on BCG, the planet, andsociety, and we ensure supplier compliance with regulatory
requirements. This approach helps BCG comply withregulatory requirements and allows us to meet thesustainability commitments we’ve made as a company.
For example, while ensuring we abide by laws concerning
human rights, we also integrate BCG’s commitment to net
zero in our overall strategy, adhere to the principles of the
UN Global Compact, and endorse the UN Guiding
Principles on Business and Human Rights.
BCG’s sustainable procurement strategy encompasses four
key workstreams:• Establish robust governance. We create acomprehensive framework, policies, and supplier codeof conduct to ensure strong governance and ethicalpractices that integrate ESG considerations and ensurecompliance with regulatory obligations.
• Ensure regulatory compliance. We integrate processes
that keep BCG compliant with evolving ESG regulations,such as Germany’s Supply Chain Due Diligence Act
and the EU’s anticipated Corporate Sustainability
Due Diligence directive. This effort includes ongoing
monitoring, reporting, and proactive risk management.
• Track and report supplier emissions. We gather
supplier-specific emissions data to more accurately
calculate and better manage the impact of our
supply chain.
• Expand the scope of reporting. We continue to build
on our sustainability reporting practices through thisannual sustainability report, as well as through carbon
and EcoVadis reporting. New efforts include supplierspecific emission reporting and reporting on ESG risks
and due diligence for new regulations.

22. Because new people routinely join and depart BCG, and some of them may not have completed the training at the time of reporting, complianceis marginally under 100%.
BOSTON CONSULTING GROUPPROMOTING RESPONSIBLE BUSINESS PRACTICES | 2023 ANNUAL SUSTAINABILITY REPORT92

Supplier Code of Conduct
Our Supplier Code of Conduct (SCoC) gives us a framework
for ensuring that our suppliers follow high standards ofbusiness practices. It offers a systematic approach todeveloping a sustainable and responsible supply chain andis included in all of BCG’s standard supplier contracts.
The SCoC establishes minimum requirements across four
broad categories: business practices and ethics; labor
practices and human rights; environmental regulations andprotection; and protection of assets, intellectual property,
and data. Within the SCoC, we affirm our commitment to
the UN Global Compact and our support for the Ten
Principles on human rights, labor, the environment, andanticorruption, and we state our expectation that our
suppliers will share our commitment to human rights andequal opportunity in the workplace.
The SCoC also provides a process for suppliers to reporttheir compliance or noncompliance, including a link to BCG’s
Speak Up Line, discussed on page 85. Suppliers and others
can use this line to file complaints or notices of violations
and/or noncompliance by suppliers. The SCoC also informs
suppliers of the range of potential BCG responses in theevent that a supplier fails to meet SCoC requirements.
Procurement Policy Framework
BCG is updating and developing policies and guidelines tosupport supplier life cycle management. They will reflect
BCG’s commitment to sustainable procurement and ESG
initiatives and will enhance our governance, compliance,and reporting efforts. The Supplier Governance Forum willcontinue to provide oversight of the policy framework andof BCG’s global supply chain.
The proposed framework will underscore our sustainability
mission and values to ensure that BCG and our suppliers
implement sustainable ways of working and follow bestpractices to ensure a balance among planet, people, andprofits. The policies and guidelines will include criteria for
BCG’s preferred suppliers, prescreening and ongoing
monitoring of suppliers, supplier assessments, and ESG
due diligence initiatives.

Supplier Screening and Monitoring
We screen new suppliers to identify any red flags, and wemonitor all current suppliers for concerns related tosanctions. We have established a protocol for raising red
flags and escalating issues when we find that suppliers
require additional screening. A periodic report shares thescreening results with relevant business stakeholders andinternal control groups to ensure effective ongoing
management of supplier-related risks.
US Supplier Diversity Program
BCG supports diversity and acknowledges the benefits ofinvesting in diverse businesses. We recognize the important
contributions diverse suppliers make in innovation while
creating job growth and sustaining our country’s economy.
Diverse suppliers bring agility and expertise to assist us in
supporting our customers and their missions.
Our program is geared toward strengthening our supplierbase in the US and offers a fair bidding process for all
suppliers to obtain sourcing opportunities within BCG. Our
program recognizes the need to develop a more robust
supplier database and encourages the use of businesses
owned by minorities, women, veterans, members of the
LGBTQ+ community, and other diverse supplier entities, aswell as small businesses. In 2023, 10% of our US supplierspending was with diverse suppliers. We continue to mature
our supplier diversity program and realize greater benefits
in partnership with our diverse supplier networks.
Supply Chain Regulation
In recent years, new sustainability laws, such as Germany’s
Supply Chain Due Diligence Act, demand higher standardsof supply chain management. BCG’s ongoing commitments
put us in a strong position to comply with these shifts inregulation. In 2023, we integrated any new laws into ourglobal strategy, identified and assessed in-scope suppliers,
and increased the size of our team to enhance how wemanage human rights issues in our supply chain. We willcontinue to adapt our approach to best meet regulatory
requirements and champion environmental and social
issues within our procurement practices.

Supplier Sustainability Questionnaires
Our standard supplier request-for-proposal template includes
a sustainability questionnaire. This gives us the opportunity
to promote awareness of our commitment to sustainability
in the supply chain, enable our sourcing teams to use
sustainability criteria to evaluate new suppliers, and improve
the quality of the data we collect to measure sustainability
commitments and the performance of new suppliers.
In line with our commitment to carbon neutrality, weevaluate all supply chain emissions (reported in our Scope
3 purchased goods and services and capital goods
categories). This data helps us make informed decisions
when selecting suppliers, and it enables us to reduce
emissions for specific supplier categories.

BOSTON CONSULTING GROUP

Singapore - Kashmira and Magno

PROMOTING RESPONSIBLE BUSINESS PRACTICES | 2023 ANNUAL SUSTAINABILITY REPORT93

2023 in Numbers

100%

100%

100%

of BCG’s supplier contract
templates include a commitment
to adhere to the Supplier Codeof Conduct

of BCG’s supplier request-forproposal templates include a
supplier sustainability
questionnaireof suppliers are monitored
for sanctions

2023 Highlights
BCG is committed to continuous improvement insustainable procurement. In 2023, we advanced oursustainability initiatives, embodying our commitment tosustainable business practices:• We achieved a Platinum rating in the EcoVadis suppliersustainability assessment, placing us in the top 1% ofcompanies assessed by the platform.
• We successfully collaborated with our suppliers toestablish reporting on diverse-supplier spending. We arealso working with individual BCG offices on local supplier
diversity initiatives.
• We initiated mandatory prescreening measures for
suppliers in higher-risk countries.
• We set the foundation to roll out new supplier risk
assessment tools in early 2024.
• We adopted tools for enhanced reporting and monitoringof supplier risk landscape.
We look forward to further integrating sustainability into
our processes and advancing our commitment tosustainable procurement in the future.

BOSTON CONSULTING GROUPPROMOTING RESPONSIBLE BUSINESS PRACTICES | 2023 ANNUAL SUSTAINABILITY REPORT

94

INTRODUCTIONDRIVING SOCIAL IMPACTPROTECTING OUR PLANETEMPOWERING OUR PEOPLE

Boston - Talent acquisition teamAppendix

PROMOTING RESPONSIBLE BUSINESS PRACTICESGreenhouse Gas Reporting Methodology
Task Force on Climate-Related Financial Disclosures (TCFD)
Performance Data Tables
WEF Stakeholder Capitalism Metrics Index
GRI Index

APPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT95

APPENDIXBOSTON CONSULTING GROUPGreenhouse Gas Reporting Methodology
BCG creates a greenhouse gas (GHG) inventory annually.
We take an operational control approach to defining ourreporting boundary and compile our inventory in linewith the requirements of the GHG Protocol Corporate
Standard, covering all material Scope 1, Scope 2, andScope 3 GHG emissions sources. Our GHG emissions
inventory is independently audited and verified against
the ISO 14064-3 standard.
Scope 1 and Scope 2 Emissions
We gather energy consumption data from our offices
globally. Where possible, we collect actual consumption
data from invoices, from landlords, or directly from energy
suppliers. When we cannot obtain this data, we use
industry benchmarks to estimate energy consumption on
the basis of occupied floor space. We follow the Scope 2
market-based accounting approach to account for ourpurchase of renewable electricity.
Scope 3 Business Travel Emissions
Business travel is our most material emissions source andmakes up the majority of our GHG inventory. Our businesstravel emissions include flights, hotel nights, rail, rental
cars, and taxis. To calculate those emissions, we use thedistances traveled per mode and class of transport and thenumber of hotel nights, as provided by our global travel
agent, and multiply the travel activity by the conversion
factors produced by the UK government. To account for
travel booked by individuals outside our travel agent
system, we apply a small uplift factor to flight, rail, andhotel emissions. For taxi emissions, since we do not have a
global record of all taxi journey mileage, we convert
expenses data into mileage using an external benchmark
dollars-per-mile conversion rate to estimate the total
distance traveled. We then look at the average emissions
intensity (gCO2/Km) for our largest taxi service provider toconvert the distance traveled to emissions.
Whereas all other emissions sources use the latest
available emissions factor set, DEFRA 2023, we calculated
our 2023 air travel emissions using the DEFRA 2022
emissions factors. Although it is most common to utilize
the factors that align with the reporting year, DEFRA has
confirmed that using factors from other years ispermissible if there is a reasonable justification for doing
so. The reason for this change is that the DEFRA 2023
emission factors rely on load factor data from 2021, when
the global aviation industry was severely impacted by the
pandemic, meaning that the calculated carbon intensity of
every passenger was far greater than usual. In comparison,
the DEFRA 2022 emission factors were generated on thebasis of 2019 data, from before the pandemic, andtherefore more accurately reflect 2023’s post-pandemic
travel patterns.

BOSTON CONSULTING GROUPFor air travel emissions calculations, we consider four key
components within our reporting:• Direct GHG emissions resulting from the combustionof fuel to power the aircraft, known as tank-to-wake(TTW) emissions• Indirect GHG emissions generated in the upstream
production and transportation of the aircraft fuel, known
as well-to-tank (WTT) emissions; the sum of WTT and
TTW emissions is referred to as well-to-wake or life
cycle emissions• Non-GHG emissions generated during the flight, suchas nitrogen oxides, sulfur oxides, and particulate matter,as well as the formation of contrails that contribute toeffective radiative forcing (ERF)• Emissions reductions from the purchase of sustainableaviation fuel (SAF)
Although the impact of aviation on the global climate
system clearly extends beyond the single effect of direct
GHG emissions, the science in this area is nascent and themitigation levers for addressing non-GHG factors remain
largely untested. Accordingly, we have adopted the following
recommendations from the SBTi Aviation Sector Guidance:• In reporting progress toward our science-based target(as detailed on page 51), we include both direct (TTW)
and indirect (WTT) emissions, but we currently exclude
non-GHG emissions.
• In reporting our full GHG inventory, and for our 2030
net zero strategy, we include direct (TTW) GHG and
non-GHG emissions. The conversion factors that we use
apply an uplift of 1.9 to the CO2 emissions to account for
the warming impact of non-GHG emissions.
In accordance with emerging best practices and guidance,
we report our emissions with and without the applicationof SAF reductions.

APPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT96

Other Scope 3 Emissions
To calculate supply chain emissions, we collect data on theeconomic value of purchased goods and capital goods, andwe multiply those figures by third-party emissions factors(tCO2e/$ spending) to estimate the full life cycle emissions.
For purchased services, we use supplier-specific scope 1
and 2 data from public CDP disclosures where possible andallocate these to BCG using a tCO2e/$ spending allocation
method. When supplier-specific information is unavailable,
we use industry and sector averages to estimate emissions
for the remaining service suppliers.
To calculate fuel- and energy-related activities that are notincluded in Scope 1 or Scope 2—such as WTT emissions
and transmission and distribution (T&D) losses—wemeasure our electricity and fuel consumption and apply
the relevant emissions factors. We estimate other, smaller
emissions sources—such as employee commuting, waste,
and upstream transportation and distribution—on thebasis of the best available data. In 2023, we included an
estimate of GHG emissions from remote working within theemployee commuting Scope 3 category.
Restatements
No significant restatements for historical emissions havebeen identified.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT97

Table 1 - GHG Emissions Inventory and Target Boundaries
EMISSIONS (KtCO2e)
CATEGORY

NET-ZEROTARGET
BOUNDARY

SBTI SCOPE
1 & 2 TARGET
BOUNDARY

SBTI SCOPE
3 TARGETBOUNDARY

2018

2023

DIFFERENCE(%)

Scope 1

Included

Included

N/A

6

3

–52%

Scope 2
(market based)1

Included

Included

N/A

25

0

–100%

Scope 2
(location based)

Excluded

Excluded

N/A

29

18

–36%

Included

N/A

Included

492

333

–33%

Direct air travel GHGs
(tank to wake)

Included

N/A

Included

214

144

–33%

Indirect air travel
GHGs (well to tank)Excluded

N/A

Included

44

30

–33%

Air travel GHG
emissions
reductions from SAF

Included

N/A

Included00–

Air travel non-GHG
impact2

Included

N/A

Excluded

191

128

–33%

Other business travelemissions sources3

Included

N/A

Included

43

31

–29%

Other Scope 3 sources4

Included

N/A

Excluded

106

120

+13

Total emissions(net-zero boundary)

584

425

–27%

Total emissions(net-zero boundary
including SAF
savings)5

584

425

–27%

Scope 3Business travel

1. We use a market-based approach to report Scope 2 emissions, which factors in the purchase of renewable electricity. In 2019, we shifted to 100%
renewable electricity for our offices and therefore report 0 KtCO2e Scope 2 (market-based) emissions.
2. Additional warming impacts generated during a flight, such as nitrogen oxides, sulfur oxides, and particulate matter, as well as the formation ofcontrails that contribute to effective radiative forcing.
3. Other business travel emissions include hotel nights, train travel, rental cars, and taxi journeys.
4. Other Scope 3 emissions include purchased goods and services, capital goods, employee commuting, fuel- and energy-related emissions, and waste.
5. In accordance with the WEF Clean Skies for Tomorrow guidance, we adopt a dual reporting approach, including and excluding emissions
reductions from the use of Sustainable Aviation Fuel certificates (SAFcs). In 2023, BCG did not use SAFcs.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT98

Table 2 - 2023 Carbon Credits Portfolio
TYPE

TECHNOLOGYLOCATION

PROJECT NAME

STANDARDID

VINTAGEVOLUME

HBD

BiocharBolivia

Exomad Green Concepcion 1

Puro432524

2023

3,000

HBD

BiocharBrazilNetZero-002-Lajinha

Puro141608

2023

370

NBR

ARR

BrazilFazenda Nascente
Do Luar Agroforestry
Project

VCS

VCS-2079

2015–2020

25,500

NBR

ARR

China

Guoluo Grassland
Sustainable
Management Project

VCS & CCBGold

VCS-2458

2016–2020

88,783

VCS & CCB

VCS-2370

2018–2020

14,240

NBR

ARR

China

Zhangye City
Afforestation
Project in Gansu
Province

NBR

ARR

India

TIST Program in
India

VCS & CCBGold

VCS-994

2017–2021

8,000

NBR

Mangroves

Pakistan

Delta Blue Carbon - 1

VCS & CCBGold

VCS-2250

2021

70,000

NBR

Soil carbon
sequestration

US

Indigo U.S. Project
No.1

CAR

CAR-1459

2018–2021

11,000

AVD

REDD+

BrazilAgrocortex REDD
Project

VCS &SocialCarbonVCS-1686

2018–201979,052AVD

REDD+

BrazilThe Purus Project

VCS & CCBGold

VCS-963

2019–2020

30,921

AVD

REDD+

BrazilThe Russas Project

VCS & CCBGold

VCS-1112

2019

11,341AVD

REDD+

Cambodia

REDD in Keo Seima
Wildlife Sanctuary  

VCS & CCBGold

VCS-1650

2018–201978,263

AVD

REDD+

Indonesia

Katingan Peatland
Restoration andConservation Project

VCS & CCBGold

VCS-1477

2018

4,326

424,796
Note: ARR = Afforestation, reforestation, and revegetation; AVD = avoided emissions; HBD = hybrid removals; NBR = nature-based removals; REDD =reducing emissions from deforestation and forest degradation. Volumes are expressed in kilometric tons of CO2e.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT99

Task Force on Climate-Related Financial
Disclosures (TCFD) Index
As a global company, BCG faces various physical andtransitional climate-related risks. Although we deem thelevel of risk to be low, it is important to understand thepotential long-term impact of these risks and take action to
mitigate them. In this section, we summarize our approachto managing climate-related risks and opportunities in linewith the reporting recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD).
We provide more detail on our approach to managing
climate-related risks and opportunities in our CDP Climate
Disclosure, available at www.CDP.net.
Governance
BCG’s Internal Sustainability Strategic Committee (StratCo.) oversees the development, implementation, andprogress of the firm’s sustainability strategy and net zerotarget, including oversight of climate-related risks withsupport from the Audit and Risk Committee. The Strat Co.,
which currently consists of BCG’s global chair, chiefsustainability officer, chief financial officer, and people
chair, meets monthly. All Strat Co. members have theirannual performance rating and remuneration tied to theinternal sustainability performance of the firm. The Strat
Co. is also supported by three Operations Committees,
which meet monthly to drive operational changes. Finally,
the Internal Sustainability Team, led by BCG’s chiefsustainability officer, David Webb, is responsible for the
day-to-day operation of the sustainability program.

BOSTON CONSULTING GROUP

Strategy
Although we have a thorough process in place to monitor
climate-related risks and our mitigation approach (seepage 101), we have not identified any risks that could havea substantive impact on our business. This is primarily
because we are a highly agile and resilient organization, ourvalue chain is not significantly exposed to climate-relatedrisks, we are not operating in a heavy emitting industry, andwe are not subject to substantive climate regulation orpolicy. In addition, we actively manage our own climate
impacts through our industry-leading net zero program.
Through our climate-related risk and opportunity
assessment, we determined that the opportunities linked
to the low-carbon transition far outweigh the risk. Given
the scale of climate adaptation and mitigation, we expect
demand for our climate services to continue to increase
and to come from an expanding range of sectors andindustries. To realize this growing opportunity, we continue
to invest heavily in our climate and environment work andhave pledged $2 billion over the next decade to enable ourteams to drive climate and environmental impact acrossgovernments, industries, NGOs, and coalitions, and toadvance global progress toward the Paris agreement.
When establishing our corporate climate strategy, we
conducted a scenario analysis to assess how to align ourbusiness with a 1.5°C trajectory, while taking into
consideration numerous transitional risks (reputational,
market, and technological). As a result, we have invested
heavily in business continuity measures to manage risks to
our core operations. For example, we mitigate businesstravel disruptions due to physical risks, such as extreme
weather, through business continuity planning andinvesting in hybrid and remote project team models. BCG’s
global orientation enables us to adapt readily to a wide
range of geographically concentrated risks, whether theybe physical (such as extreme weather events) ortransitional (such as new climate policy or legislation).
Furthermore, our ongoing investments in client
sustainability and in internal measures to achieve net zero
emissions help mitigate any reputational risks that might
have a substantive impact.

APPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT

100

Risk Management
At BCG, we have defined three processes for monitoringand managing climate-related risks as part of ourframework for enterprise risk management:• Climate Change Risk Assessment. First, we conduct
a climate change risk assessment (CCRA), which looks
at physical and transitional climate-related risks andopportunities across BCG’s value chain. We assess
the likelihood, impact, management approach, andeffectiveness of each risk across short-, medium-, andlong-term time horizons and under +1.5°C and +4°C
warming scenarios. We update our CCRA twice per year,
or as new global climate risks emerge, and our Strat Co.
reviews it annually.
• Enterprise Risk Management Integration. Second,
we review the output from the CCRA and integrate
it into the global enterprise risk management (ERM)
framework. We also share the output with the Audit andRisk Committee yearly, and we communicate the key
risks to the MDP group through the annual risk report.

Metrics and Targets
As explained in the strategy section on page 100, theincrease in client revenue from climate and sustainability
consulting projects presents the greatest opportunity to
BCG. Accordingly, we monitor and report the performanceand growth of our climate and sustainability client work. In
2023, we delivered approximately 1,500 climate andsustainability projects, a year-on-year increase of over 50%.
We also invested a further $240 million in planetary
objectives in 2023, in the form of cash or in-kind support.
In addition, we track our carbon emissions globally(reported on page 52) and our progress toward our sciencebased targets (reported on page 51). We also monitor thecost savings associated with achieving our emissions
reduction targets and the program costs associated withdelivering our net-zero strategy (including carbon credit
and renewable energy certificate purchases). We disclose
our implicit carbon price ($18 per metric ton in 2023),
which we expect could rise to approximately $80 per metric
ton by 2030.

• Local Risk Assessment. Third, the global safety andsecurity team is responsible for managing physical risks
to BCG offices, including chronic and acute climaterelated physical risks. In developing and maintaining
BCG’s business continuity and resiliency plan, the Safety
and Security team identifies relevant risks and develops
mitigation and resilience plans at the local level.
As explained in the strategy section above, although wehave a robust risk assessment process, we have not
identified any risks that could have a substantive impact on
our business.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT

101

Performance Data Tables
DRIVING SOCIETAL IMPACTTARGET

YEAR

2019

2020

2021

2022

2023

Number of societal impact client cases

–

–

562

916

1,381

1,758

2,271

Number of clients with a societal impact
case

–

–

327

501

691

855

1,001

Percentage of largest clients with asocietal impact case150%

Annually

–

52%

68%

72%

72%

Total investment in societal impact
initiatives ($millions)2

–

–

178

275

297

460

564

TARGET

YEAR

2019

2020

2021

2022

2023

Number of climate and sustainability
cases

–

–

170

360

780

980

1,530

Number of clients with climate andsustainability cases

–

–

120

240

450

520

705

Total investment in climate andsustainability initiatives ($millions)3$2 billion

2030

–

80

160

270

240

Share of BCG’s operations covered by PAS
2060 carbon neutral certification

100%

Annually

100%

100%

100%

100%

100%

Reduction in Scope 1 and 2 emissions per
full-time equivalent (vs 2018 baseline)

92%

2025

82%

90%

92%

94%

95%

Reduction in business travel emissions per
full-time equivalent (vs 2018 baseline)

48.5%

2025

10%

84%

87%

60%

62%

Electricity consumption from renewableenergy sources (%)

100%

Annually

100%

100%

100%

100%

100%

Proportion of carbon dioxide removal(CDR) projects in offset portfolio

100%

2030

30%

40%

44%

48%

52%

Employees receiving climate training
materials and communications (%)

100%

Annually

100%

100%

100%

100%

100%

PROTECTING OUR PLANET

Note: A dash in place of a data point in any cell of this table indicates either that no target or target year has been set or that data was notavailable to report.
1. BCG defines societal impact as any initiative that delivers positive social or planetary impact. To avoid double-counting, if one single projectdelivers both social and planetary impact, then it is counted as only one societal impact project overall. This explains perceived discrepancy
between total number of social impact, climate and sustainability, and societal impact cases. The same is true of clients.
2. BCG began tracking this metric in 2020. “Largest clients” refers to top 50 BCG clients.
3. Includes consulting support, external secondments, net zero partnership costs, and marketing initiatives.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT102EMPOWERING OUR PEOPLETARGET

YEAR

2019

2020

2021

2022

2023

Global headcount4––

21,00022,00025,00030,00032,000Global new hires5

–

–

–

–

7,000

10,0006,000

Representation of women globally40%

Annually

43%

44%

45%

46%

47%

Representation of women on the
Executive Committee

–

–

35%

35%

35%

33%

39%

Representation of women amongleadership6

–

–

23%

23%

24%

24%

24%

Representation of women among global
new hires

–

–

–

44%

48%

45%

51%

Representation of women among
entry-level hires to the consulting team

40%

Annually

36%

42%

41%

41%

46%

US headcount (racial and ethnic minority
representation)

–

–

38%

39%

42%

46%

44%

US leadership (racial and ethnic minority
representation)8

–

–

27%

27%

30%

30%

29%

US new hires (racial and ethnic minority
representation)

–

–

45%

51%

51%

51%

55%

Employment

GenderRacial and ethnic minorities(US only)7

4. Headcount includes permanent and temporary workers on BCG’s payroll but excludes contingency workers.
5. Permanent new hires only, not including temporary or contingency workers.
6. Includes MDPs and other senior leadership roles across BCG.
7. BCG is currently able to disclose race and ethnicity data only for our US operations. Legal restrictions prohibit BCG from gathering this data insome of our geographies.
8. Includes MDPs and other senior leadership roles across BCG.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT103

EMPOWERING OUR PEOPLETARGET

YEAR

2019

2020

2021

2022

2023

Veteran

–

–

2%

2%

2%

3%

2%

LGBTQ+9

–

–

4%

4%

5%

6%

6%

Disability10

–

–

2%

2%

2%

3%

4%

Average number of training hours perclient-facing employee11––

1 week

1 week

1 week

1 week44 hours

Average number of training hours per
business service team employee

–

–

–

–

–

–

17 hours

Attendance at career step training

–

–

89%

91%

92%

91%

88%

Percentage of employees with access tohealth and well-being support services

100%

Annually

100%

100%

100%

100%

100%

Percentage of employees receiving annual
performance reviews12100%Annually

–

–

100%

100%

100%

Percentage of employees with access topersonalized career plan

100%

Annually

100%

100%

100%

100%

100%

Other diversity indicators (US only)

Working at BCG

Note: A dash in place of a data point in any cell of this table indicates either that no target or target year has been set or that data was notavailable to report.
9. LGBTQ+ data may not be fully representative due to opt-in process and confidentiality.
10. Disability data may not be fully representative due to opt-in process and confidentiality.
11. Before 2023, learning was measured in weeks. From 2023, methodological refinements enabled reporting in hours.
12. BCG is able to report against this metric only since the launch of a new global performance review process in 2021.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT104

RESPONSIBLE BUSINESS METRICSTARGET

YEAR

2019

2020

2021

2022

2023

–

–

8.5

8.6

11

11.7

12.3

Employees who completed our Code of
Conduct and Anti-Bribery & Corruption
online training13

100%

Ongoing

100%

100%

100%

100%

100%

Employees who completed
acknowledgment of Code of Conduct andAnti-Bribery & Corruption policies14

100%

Annually

100%

100%

100%

100%

100%

Percentage of offices undergoing aperiodic internal risk review

100%

Ongoing

100%

100%

100%

100%

100%

Employees who completed our data privacy
and information security online training15

100%

Ongoing

100%

100%

100%

100%

100%

Employees who completed annual
acknowledgment of data privacy andinformation security policies16

100%

Annually

100%

100%

100%

100%

100%

Sourcing managers trained in sustainableprocurement topics

100%

Annually

100%

100%

100%

100%

100%

Spending with diverse suppliers (US only)

5%

Annually

–

2%

3%

4%

10%

Supplier contract templates that include aclause on adherence to the supplier codeof conduct

100%

Annually

100%

100%

100%

100%

100%

Supplier questionnaire templates that
include sustainability questions

100%

Annually

100%

100%

100%

100%

100%

New offices conducting a travel safety risk
assessment

100%

Annually

100%

100%

100%

100%

100%

New consultants completing our travel
safety e-learning17

100%

Annually

–

100%

100%

100%

100%

Revenue ($billion)

Sustainable procurement metrics

Safety and security metrics

Note: A dash in place of a data point in any cell of this table indicates either that no target or target year has been set or that data was not available to report.
13. All BCG staff are required to take this training. All staff completed the training when it was released, and all new hires are required to complete
it as part of their onboarding. Because new people routinely join BCG, and some of them may not have completed the training at the time ofreporting, compliance is marginally under 100%.
14. Because some active employees depart BCG, and some of them may not have completed the annual acknowledgment at the time of reporting,compliance is marginally under 100%.
15. All BCG staff are required to take this training. All staff completed the training when it was released, and all new hires are required to complete
it as part of their onboarding. Because new people routinely join BCG, and some of them may not have completed the training at the time ofreporting, compliance is marginally under 100%.
16. Because some active employees depart BCG, and some of them may not have completed the annual acknowledgment at the time of reporting
compliance is marginally under 100%.
17. The mandatory training was launched in 2020.
BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT105

WEF Stakeholder Capitalism Metrics Index
BCG is a signatory of the World Economic Forum’s
Stakeholder Capitalism Metrics. We actively encourage our
stakeholders and business partners to consider adopting
the WEF metrics for their own reporting. As not all metrics#

Core metric

are material for BCG, explanations have been provided
where necessary. In each case, we provide a link to therelevant section of this report where you can read more
about the topic.
Page reference

PILLAR 1: GOVERNANCE
1

Setting purpose

Purpose and values (page 7)

2

Governance body composition

Governance (page 8)
Performance data tables (page 102)

3

Material issues with an impact on stakeholders

Materiality (page 10)
Stakeholder engagement (page 9)4Anti-corruption

Anti-bribery and corruption (page 83)
Performance data tables (page 102)

5

Protected ethics advice and reporting mechanisms

Raising concerns (page 85)

6Integrating risk and opportunity into businessprocess

Risk management (page 86)

PILLAR 2: PLANET
7

GHG emissions

Measuring our climate impact (page 54)
Performance data tables (page 102)

8

TCFD implementation

TCFD index (page 100)
Performance data tables (page 102)

9Land use and ecological sensitivity

Not applicable1

10

Water consumption and withdrawal inwater-stressed areas

Not applicable2

PILLAR 3: PEOPLE
11

Diversity and inclusion

Diversity, equity, and inclusion (page 67)
Performance data tables (page 102)

12

Pay equity

Pay equity (page 67)
Diversity, equity, and inclusion (page 67)
BCG UK Gender Pay Gap Report

13

Wage level

Pay equity (page 67)

14

Risk for incidents of child, forced, orcompulsory labor

Human rights (page 83)
BCG Supplier Code of Conduct

15

Health and safety

Employee well-being (page 77)
Safety and security (page 88)

16

Training provided

Learning and development (page 79)
Performance data tables (page 102)

1. BCG uses a sector-level materiality screening tool to identify the most material impacts and dependencies on nature for our sector and subindustry. BCG does not own real estate and only leases offices in urban centers. That’s why our economic activities, such as infrastructure holding
processes, were not found to have a medium, high or very high dependency on ecosystem services or natural capital. For the same reason, we do
not apply medium, high or very high pressure on ecosystem services or natural capital either. Our double materiality assessment corroborates
these findings. Nevertheless, BCG commits to supporting programs that protect and nurture nature and biodiversity, as found in the “Keeping
Track of Key Environmental Topics” section (page 60). Here, we commit to annually reporting the number of offices we hold that have at least one
sustainability certification (e.g. LEED).
2. We have programs in place to promote water conservation in our offices. However, given that we consume very low levels of water, this is notconsidered a material topic.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT

106

#

Core metric

Page reference

PILLAR 4: PROSPERITY
17

Absolute number and rate of employment

Performance data tables (page 102)

18

Economic contribution

Performance data tables (page 102)
About BCG (page 6)

19

Financial investment contribution

Not applicable3

20

Total R&D expenses

Performance data tables (page 102)

21

Total tax paid

Taxation (page 86)

GRI Index
GRI 1: STANDARDSStatement of use

Boston Consulting Group, Inc. has reported inaccordance with the GRI Standards for the period(January–December 2023).

GRI 1 used

GRI 1: Foundation 2021

GRI 2: GENERAL DISCLOSURES
Disclosure2023 Response (page number)

2-1 Organizational details

Boston Consulting Group, Inc.
About BCG (page 6)
Governance (page 8)

2-2 Entities included in the organization’s sustainability
reporting

About this report (page 5)
BCG offices

2-3 Reporting period, frequency and contact point

About this report (page 5)

2-4 Restatements of information

No significant restatements required

2-5 External assurance

GHG methodology (page 96)
Governance (page 8)

2-6 Activities, value chain and other business
relationships

About BCG (page 6)
Industries
Sustainable procurement (page 92)

2-7 Employees

Performance data tables (page 102)

2-8 Workers who are not employees

Confidentiality constraints mean we are unable to report
all disclosures.

3.

As a privately owned partnership, BCG does not publicly disclose competitively sensitive financial metrics such as capital expenditure.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT

107

GRI 2: GENERAL DISCLOSURES
Disclosure2023 Response (page number)

2-9 Governance structure and composition

Governance (page 8)
BCG leadership

2-10 Nomination and selection of the highest governancebody

Governance (page 8)

2-11 Chair of the highest governance body

Governance (page 8)

GRI 2: GENERAL DISCLOSURES
Disclosure2023 Response (page number)

2-12 Role of the highest governance body in overseeing themanagement of impacts

Governance (page 8)
BCG leadership

2-13 Delegation of responsibility for managing impacts

Governance (page 8)

2-14 Role of the highest governance body in sustainability
reporting

About this report (page 5)

2-15 Conflicts of interest

Approach to risk management and oversight (page 85)
BCG Code of Conduct

2-16 Communication of critical concerns

Raising concerns (page 85)

2-17 Collective knowledge of the highest governance body

Governance (page 8)
Our team and expertise (page 37)

2-18 Evaluation of the performance of the highest
governance body

Governance (page 8)
Confidentiality constraints mean we are unable to report
all disclosures.

2-19 Remuneration policies

Governance (page 8)
Ensuring fair and equitable pay (page 67)

2-20 Process to determine remuneration

Governance (page 8)
Ensuring fair and equitable pay (page 67)

2-21 Annual total compensation ratio

Governance (page 8)
Ensuring fair and equitable pay (page 67)
Confidentiality constraints mean we are unable to report
all disclosures.

2-22 Statement on sustainable development strategy

Executive introduction (page 3)
Our vision and impact (page 12)

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT108

GRI 2: GENERAL DISCLOSURES
Disclosure2023 Response (page number)

2-23 Policy commitments

BCG Code of Conduct
BCG Supplier Code of Conduct
Environmental Responsibility Statement
Our code of conduct and supplier code of conduct
summarize our policy commitment, but confidentiality
constraints mean we are unable to report all disclosures.

2-24 Embedding policy commitments

Details on how we embed our policies are available in theapproach section of each chapter and material topic
covered within this report.

2-25 Processes to remediate negative impacts

Raising concerns (page 85)
BCG Code of Conduct
BCG Supplier Code of Conduct

GRI 2: GENERAL DISCLOSURES
Disclosure2023 Response (page number)

2-26 Mechanisms for seeking advice and raising concerns

Raising concerns (page 85)
BCG Code of Conduct
BCG Supplier Code of Conduct

2-27 Compliance with laws and regulations

Confidentiality constraints mean we are unable to report
all disclosures.

2-28 Membership associations

Our partner ecosystem

2-29 Approach to stakeholder engagement

Stakeholder engagement (page 9)2-30 Collective bargaining agreements

Employee dialogue (page 65)
Information unavailable. Collective bargaining agreements
are not commonplace; therefore, global reporting is
not available.

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT109

GRI 201: ECONOMIC PERFORMANCE
Disclosure2023 Response (page number)

3-3 Management of material topics

About BCG (page 6)
Governance (page 8)201-1 Direct economic value generated and distributed

Performance data tables (page 102)201-2 Financial implications and other risks andopportunities due to climate change

TCFD index (page 100)
2023 CDP Disclosure201-3 Defined benefit plan obligations and otherretirement plans

Working at BCG (page 65)
Employee well-being (page 77)

201-4 Financial assistance received from government

Confidentiality constraints mean we are unable to report
all disclosures.

GRI 205: ANTI-CORRUPTIONGRI 3-3 Management of material topics

Anti-bribery and corruption (page 83)
Materiality assessment (page 10)205-1 Operations assessed for risks related tocorruption

Global risk management (page 86)

GRI 205: ANTI-CORRUPTION

205-2 Communication and training aboutanti-corruption policies and procedures

Anti-bribery and corruption (page 83)
Performance data tables (page 102)
BCG Code of Conduct
BCG Supplier Code of Conduct

205-3 Confirmed incidents of corruption andactions taken

Anti-bribery and corruption (page 83)
Performance data tables (page 102)
Confidentiality constraints mean we are unable to reporton all of the required disclosures.

GRI 305: EMISSIONS
305-1 Direct (Scope 1) GHG emissions

Measuring our climate impact (page 54)
Performance data tables (page 102)

305-2 Energy indirect (Scope 2) GHG emissions

Measuring our climate impact (page 54)
Performance data tables (page 102)

305-3 Other indirect (Scope 3) GHG emissions

Measuring our climate impact (page 54)
Performance data tables (page 102)

305-4 GHG emissions intensity

Measuring our climate impact (page 54)
Performance data tables (page 102)

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT

110

GRI 305: EMISSIONS
305-5 Reduction of GHG emissions

Measuring our climate impact (page 54)
Performance data tables (page 102)

305-6 Emissions of ozone-depleting substances (ODS)

Measuring our climate impact (page 54)
Performance data tables (page 102)

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignificant air emissions

Measuring our climate impact (page 54)
Performance data tables (page 102)

GRI 401: EMPLOYMENT

3-3 Management of material topics

Working at BCG (page 65)
Attracting the best talent (page 63)
Materiality assessment (page 10)401-1 New employee hires and employee turnover

Attracting the best talent (page 63)
Performance data tables (page 102)401-2 Benefits provided to full-time employees that are notprovided to temporary or part-time employees

Working at BCG (page 65)
Employee well-being (page 77)

401-3 Parental leave

Working at BCG (page 65)

GRI 404: TRAINING AND EDUCATION
3-3 Management of material topics

Learning and development (page 79)
Materiality assessment (page 10)404-1 Average hours of training per year per employee

Learning and development (page 79)
Performance data tables (page 102)404-2 Programs for upgrading employee skills andtransition assistance programs

Learning and development (page 79)

404-3 Percentage of employees receiving regularperformance and career development reviews

Working at BCG (page 66)
Learning and development (page 79)

BOSTON CONSULTING GROUPAPPENDIX | 2023 ANNUAL SUSTAINABILITY REPORT111

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