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 associated tool, developed by PwC in collaboration with Nyenrode Business University, supports strategic decision-making by quantifying financial and non-financial information. This enables us to make informed decisions based on numbers rather than gut feelings.

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

Assumptions in the method

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

Threshold values

For each indicator, we choose a threshold value to determine whether there is a positive, neutral or negative impact on the SDGs. Threshold values can, for example, be based on an industry average or a Dutch average.

Conversion to a single unit of measurement

To convert indicators to one unit of measurement, we apply a rating function. Each indicator is given a value between -100 and 100. To do this, we make assumptions, such as the shape of the valuation function (linear, parabolic, etc.) and the minimum and maximum value an indicator can take.

Data availability

Impact measurement depends on data availability. In certain cases, there are limitations. For example, information on gender and cultural background is recorded on a voluntary basis. Therefore, we cannot guarantee full measurement of impact in these areas.

Appreciation graph for Percentage of suppliers that have science-based targets for emission reduction

Example of threshold and valuation

How do we apply thresholds and valuation in our SDG impact measurement?

This example, with visual representation, covers our suppliers who have Science-based targets for emission reductions, and therefore our upstream impact on anthropogenic climate change. We measure this as a percentage of total suppliers.

The visual representation shows the rating on the vertical axis and the percentage of suppliers on the horizontal axis. The threshold is set at 50%, in line with the Science-based target initiative. The impact is negative if this percentage is below 50% and positive if it is above 50%. The percentage must be between 0% and 100%, as other values are not possible in reality.

Indicators

For each SDG in our impact measurement, we define a number of indicators. The current indicators and their definitions are listed 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	Education through PwC Academy Total hours booked on design, development and delivery of education to clients through the PwC Academy (#)
4.4	Evaluation score PwC Academy training Average evaluation score of clients on education delivered through the PwC Academy (#)
4.5	Academic education Number of PwC colleagues officially registered as teacher at academic educational institutions (#)
4.6	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 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

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]) (#)

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 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
13.5	Supplier science based targets Percentage of our suppliers that have science-based targets for emissions reduction
13.6	Energie Energy efficiency: energy consumption in buildings (heat, gas, electricity) in kWh per m2 during the reporting period Use of renewable energy: Energy from renewable sources (e.g. biomass, geothermal, solar, hydro and wind), purchased or self-generated, as a percentage of our total energy consumption (%) Renewable electricity generation: Renewable energy generated in kWh as a percentage of total energy generated (%) Use of renewable electricity: Percentage of total electricity consumption coming from renewable energy sources, purchased or self-generated. Definition of renewable electricity according to RE100 requirements.

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