SDG impact measurement background information

Our six-step SDG impact measurement method provides structural insight into our contribution to the SDGs. Below we describe the Responsible Business Simulator, the assumptions we make and the indicators we use. We also provide a visual representation to explain how threshold values and appreciation work.

Responsible Business Simulator

The approach underlying our SDG impact measurement is the Responsible Business Simulator (RBS). This approach and its accompanying tool, developed by PwC in cooperation with Nyenrode Business University, supports strategic decision-making by quantifying financial and non-financial information. This allows us to make informed decisions based on figures instead of gut feelings.

The RBS enables us to convert the results of indicators with different units (€, %, numbers) into one unit of measurement. This is how we arrive at impact scores for each SDG. Read more about the Responsible Business Simulator.

Assumptions in the method

Impact measurement provides insight into performance but has inherent uncertainties. For our SDG impact measurement, for example, we make assumptions about threshold values and also when we convert indicators to a single unit. Data availability is not always optimal either.

Threshold values

For each indicator, we select a threshold value to determine whether there is a positive, neutral or negative impact on the SDGs. Threshold values can be based, for example, on a sector average or a Dutch average. In cases where reference data are not available, we select threshold values based on the targets we have set for ourselves.

Conversion to a single unit of measurement

To convert indicators into a single unit of measurement, we apply an appreciation function. Each indicator is assigned a value between -100 and 100. For this we make assumptions, such as the form of the appreciation function (linear, parabolic, etc.) and the minimum and maximum value that an indicator can assume.

Availability of data

Impact measurement relies on the availability of data. In certain cases, there are limitations. For example, information on gender and cultural background is recorded on a voluntary basis. We cannot, therefore, guarantee that we are fully measuring the impact in these areas.

Appreciation graph for GHG emissions from non-recyclable waste

Greenhouse gas emissions from non-recyclable waste, in tCO2e/FTE. Visual representation produced by the Responsible Business Simulator.

Example of threshold value and appreciation

How do we apply thresholds and appreciation in our SDG impact measurement? This example, with visual representation, deals with greenhouse gas emissions from non-recyclable waste. We measure this in tCO2e/FTE – that is the number of tonnes of greenhouse gas emissions per employee.

In the visual representation, the appreciation is on the vertical axis and tCO2e/FTE on the horizontal axis. The threshold is set at zero, shown as a green dotted line. As we strive for zero emissions, impact is negative if emissions are higher than zero, and there cannot be a positive impact, as negative emissions are not possible in this case. This results in what we call ‘the lower the better’: lower emissions lead to higher appreciation, represented by the red line.

We set the minimum value of greenhouse gas emissions at zero tCO2e/FTE and the maximum value at 2.56 tCO2e/FTE. We base this maximum value on the Dutch average emissions in reference year 2019.

Indicators

For each SDG in our impact measurement, we determine a number of indicators. The current indicators and their definitions are included in the following overview.

SDG 4

4.1	Training equality Average training hours per FTE of female colleagues over average hours of training per FTE of male colleagues (#)
4.2	Training hours Average training hours per FTE by job level (#)
4.3	Evaluation score training Average evaluation score of internal training courses taken by PwC colleagues (#)
4.4	Education through PwC Academy Total hours booked on design, development and delivery of education to clients through the PwC Academy (#)
4.5	Evaluation score PwC Academy training Average evaluation score of clients on education delivered through the PwC Academy (#)
4.6	Academic education Number of PwC colleagues officially registered as teacher at academic educational institutions (#)
4.7	Engagements contributing to Education Total number of hours booked on (job) engagements for clients in the education sector (#)

SDG 5

5.1	Gender pay gap Difference in average salary between male and female colleagues (by job level) over average salary male colleagues (#) Difference in average bonus between male and female colleagues (by job level) over average bonus male colleagues (#)
5.2	People Engagement Index (PEI) PEI female colleagues over PEI male colleagues (by job level) (#)
5.3	Gender diversity Female colleagues in the workforce over total workforce (by job level) (%) Intake female colleagues over total intake (by job level) (%) Employee turnover female colleagues over employee turnover male colleagues (by job level) (#) Promotion rate female colleagues over promotion rate male colleagues (by job level) (#)
5.4	Gender diversity in leadership Female members of the Board of Management and Supervisory Board over total number of members in Board of Management and Supervisory Board (%) Female partners over total number of partners (%)
5.5	Gender diversity in (job) engagement teams Percentage of female colleagues on (job) engagements (%)

SDG 7

7.1	Energy efficiency Energy efficiency in buildings (in kWh per m2) Building energy (heat, gas, electricity) use per m2 during the reporting period
7.2	Renewable energy use Energy sourced from renewable sources (e.g. biomass, geothermal, solar, water and wind energy sources) either purchased or self-generated as a percentage of our total energy consumption (%)
7.3	Renewable electricity generation Percentage of total electricity use covered by renewable electricity generated by PwC (%)
7.4	Renewable electricity use Renewable electricity, generated within the EU market, reasonably close to the reporting year as confirmed in “stroometiketten”, reported with source, supplier and instrument information, as a percentage of our total electricity consumption. Nuclear electricity is excluded from renewable electricity (%)

SDG 8

8.1	Financial results Average yearly revenue growth per FTE over the past three reporting periods (%)
8.2	Well-being Well-being by gender, job level and cultural background: Percentage of sick leave (%) Percentage of colleagues with a favourable score* on the four PEI-related questions in the GPS (%) Percentage of colleagues with a favourable score* on the seven flexibility and well-being related questions in the GPS (%) * favourable score is 4 or 5
8.3	Digitisation and innovation Intake of colleagues with STEM profile (%) Percentage of revenue generated by wins impacted by BXT (%)
8.4	People involved in CS projects Hours booked on pro bono engagements (jobs) for social enterprises (and other organisations with the goal to create shared value [social, ecological and economic]) (#) Colleagues involved in engagements (jobs) for social enterprises (and other organisations with the goal to create shared value [social, ecological and economic]) as a percentage of the total number of colleagues (%)

SDG 10

10.1

GPS scores I&D
Percentage of colleagues with a favourable score on I&D in one group* over percentage colleagues with a favourable score on I&D in other groups for the following categories:

Job level (#)
Cultural background (#)
Age group (#)
Sexual orientation (#)

* favourable score is 4 or 5

10.2

Cultural diversity

Colleagues by cultural background over total workforce (by job level) (%)
Intake of colleagues by cultural background over total intake (by job level) (%)
Equality in employee turnover between colleagues with different cultural backgrounds (by job level) (#)
Equality in promotion rate between colleagues with different cultural backgrounds (by job level) (#)

10.3

Cultural pay gap

Average salary of colleagues with one cultural background and average salary of colleagues with other cultural backgrounds, over average salary of colleagues with other cultural backgrounds (by job level) (#)
Average bonus of colleagues with one cultural background and average bonus of colleagues with other cultural backgrounds, over average bonus of colleagues with other cultural backgrounds (by job level) (#)

SDG 12

12.1

Environmental impact of waste
GHG emissions from waste generated in operations per FTE during the reporting period (tCO2e / FTE)

*GHG emissions are not the only environmental impact from waste, but are used as an estimate. Other environmental impact includes land use, water and air pollution and contamination of soil.

12.2

Environmental impact of purchased goods
GHG emissions from purchased and capital goods per FTE during the reporting period (tCO2e / FTE)

SDG 13

13.1	GHG emissions Scope 1: Direct emissions from owned/controlled operations (tCO2e) Scope 2: Indirect emissions from the use of purchased electricity, steam, heating, and cooling (tCO2e) Scope 3: Indirect upstream and downstream emissions (tCO2e)
13.2	Carbon offsetting and removals Carbon offsetting (%) Total GHG emissions offsetted by PwC NL as a percentage of total GHG emissions emitted Carbon removal offsetting (%) Total GHG emissions offsetted by PwC NL through removals as a percentage of total GHG emissions emitted
13.3	Environmental spend Environmental spend as a percentage of internal carbon pricing (%)
13.4	Taking action on environmental impact GPS Score on Taking action on environmental impact

SDG 16

16.1	Integrity Complaints filed to the Complaints Committee (#) Notifications submitted to the Business Conduct Committee (#)
16.2	GPS score Leadership effectiveness (transparency) Percentage of colleagues with a favourable score* on the question 'The leaders I work with make a point of being transparent with information' in the GPS (%) * favourable score is 4 or 5
16.3	Reputation Percentage of favourable media coverage for PwC NL (%)
16.4	Stakeholder dialogue on purpose Percentage of stakeholders that consider PwC to contribute to a large or very large extent to its purpose (%)

SDG 17

17.1	Number of social enterprises supported Number of pro bono engagements for social enterprises (and other organisations with the goal to create shared value [social, ecological and economic]) (#)
17.2	Sponsorships by PwC Number of sponsorship agreements (#) Total contractual value of all sponsorship agreements (€) Percentage of long term (at least 3-years) sponsorships (%)
17.3	Investing in financial, volunteering and pro bono services GPS Score on investing in financial, volunteering and pro bono services
17.4	Thought leadership and partnership to help solving important problems GPS score on Thought leadership and partnership to help solving important problems