Social Responsibility

Report 2018
Creating change that matters
 Welcome
to our Social
In this report
Responsibility People 6 Planet 29

Report
In this report, we share stories of the things
we are doing, beyond our client work, to
make a difference in society and describe
the ways we are working to strengthen our
own responsible practices.

We have organized these stories into four

sections, reflecting the challenges the world
faces and the opportunities we have to
make a difference.

Partnerships 40 Responsible practices 51

1 McKinsey & Company Social Responsibility Report 2018

 Foreword by Indeed, across all our client work, we have

Our social
an opportunity to help the world’s leading
Kevin Sneader institutions shape their impact on society. For
The need for business, government, and social- more than 90 years, our firm’s mission has been
sector organizations to work together to tackle to create “distinctive, lasting, and substantial

responsibility
the world’s most pressing societal challenges improvements in performance” for our clients.
has never been clearer. Protecting our planet, Today it is clearer than ever that we need to work
enabling meaningful work in our communities, with our clients to consider the full impact of our
and creating inclusive societies that honor our work together, not just on their performance,
diversity are fundamental. but on society as a whole.

Our firm has always sought to make a difference With this in mind, we have embarked on a journey
on the issues that matter—above and beyond our to engage 30,000-plus colleagues in a conversation
client work. This report contains many examples about our firm’s “purpose.” What has already
that bring this long-standing practice to life. emerged is a sense that what motivates us is a
You will read about how our people are giving commitment to make the world a better place—
back to our communities, how we have founded one client, colleague, and community at a time.
and supported non-profits to tackle top global
The stories in this report are a reminder of how
issues, and the steps we are taking to become
“Our firm has more environmentally sustainable and socially
that purpose is already being realized. Hopefully,
they also demonstrate why we are so proud and so
always sought to responsible in the way we do what we do every
day of the week.
willing to contribute our time, effort, and skills to an

make a difference Last year, as part of this, we became a

array of causes across the 130 cities in which we
operate. In doing so, we also give meaning to the
on the issues participant in the UN Global Compact. This belief that “what we do matters.” And never has

that matter.” report serves as our first Communication

on Progress, and through it we reaffirm our
that been more true or more necessary.

continuing commitment to its principles.

Yet for all that we have done, there is growing

recognition that our commitment to social Kevin Sneader
impact can and must be even deeper. Global Managing Partner
McKinsey & Company

2 McKinsey & Company Social Responsibility Report 2018

 Creating change Introduction We are also committed to running our firm
responsibly. We prioritize issues that are

that matters
McKinsey has a long-standing commitment to
most material to our firm and our work. These
social responsibility. In this report, we share stories
include diversity and inclusion, environmental
of the things we are doing, beyond our client work,
sustainability, ethics, data privacy and security,
to make a difference in society.
and supplier sustainability and diversity.
We’re working to increase economic opportunity
In this report, we are pleased to be able to share
by building skills and enabling work; to advance
stories and updates from 2018. We also recognize
gender equality, in the workplace and in society
that we are on a journey. Our people, across our
more broadly; and to build a world that is more
firm, are driving efforts to strengthen every aspect
environmentally sustainable.
of our social responsibility. We look forward to
Through our research, we seek to generate continuing to report on our progress.

600+
new thinking and to identify practical solutions,
providing a fact base for diverse stakeholders
to galvanize action.

“We believe we have Teams of consultants, designers, and data

scientists offer pro bono service to help non-
non-profits supported through pro bono

an opportunity, and
service, board membership, and volunteering
profits develop strategies and increase their

a responsibility, to
25,000
impact. Firm members also volunteer and serve
on the boards of non-profits, bringing insights
use our knowledge from our work to strengthen their governance
and our capabilities and help them grow.
graduates of Generation, the non-profit we
to help address the Generation and McKinsey.org, non-profits that
founded to tackle youth unemployment
we founded and support, allow us to share our
world’s most pressing expertise through innovative partnerships and help

0
challenges.” create solutions that can scale up quickly to tackle
global challenges.

net carbon emissions

3 McKinsey & Company Social Responsibility Report 2018

 Supporting SDGs and social
responsibility
sustainable While our work with our clients enables us to
support their efforts to further many of the SDGs,

development 17 1
our social responsibility efforts seek to advance
a subset of them.

The 17 Sustainable Development Goals 16 2 The SDGs we focus on reflect areas where we see an
(SDGs), adopted by United Nations Member opportunity to make a difference on these critical issues
States in 2015, capture an important vision 15 3 by deploying our capabilities and expertise, through
of how we can build a better world. The pro bono work, board service, and volunteering with
comprehensive goals include ending poverty, non-profits and through our research.
reducing inequality, and improving health and 14 4
These are gender equality (SDG 5), decent work and
education. They also address environmental
economic growth (SDG 8), responsible consumption
challenges, such as tackling climate change
and preserving natural environments. 13 5 and production (SDG 12), and partnerships for the
goals (SDG 17).
The SDGs also provide a framework for how
SDG 5:
companies can think about their social and 12 6 Gender
environmental impact as they seek to make a equality
positive contribution to improving the state of
11 7
the world. Taken together, the institutions we SDG 8:
serve—across the private, public, and social 10 8 Decent work and
sectors—touch all of the 17 goals.
9 economic growth

SDG 12:
Responsible consumption
and production

SDG 17:
Partnerships
for the goals

4 McKinsey & Company Social Responsibility Report 2018

 Helping clients Serving those who serve society
Our Public Sector Practice supports
Learn more about
our Social Sector

have social
Practice
governments to improve their productivity, the
delivery and implementation of vital services,

impact and the outcomes of their programs to better

the lives of citizens and foster economic growth.

As a global management consulting firm, Our Social Sector Practice works with
we help organizations across the private, donors, non-profits, and non-governmental
public, and social sectors make lasting organizations to develop and implement large-
improvements to their performance and scale solutions to persistent challenges in
realize their most important goals. areas such as education, public health, and
economic development. Learn more about
Every one of our clients has an impact on our Public Sector
Practice
society, whether it is through their products
or services, their workforce, or their supply
chain. Through our work with our clients, we
can help them shape their environmental and
social impact.

Our public- and social-sector clients are Working with clients to

directly addressing societal challenges. We embed sustainability
also help clients across sectors to address McKinsey’s Sustainability Practice leads
environmental sustainability. research on energy transitions, resource-
productive operations, the circular economy,
This report, however, focuses on our
and the future of mobility. Putting this
efforts outside of client work to give back
research into action, we help companies
to our communities through pro bono work,
Learn more about accelerate the transition to a low-carbon and
volunteering, and board service with our Sustainability
Practice
sustainable-growth economy by eliminating
non-profits.
waste, accelerating innovation, helping clients
scale, and focusing capital investments on
sustainability opportunities.

5 McKinsey & Company Social Responsibility Report 2018

 Planet Partnerships Responsible practices
People

People
People enable us to invest our expertise, time,
and resources directly in our communities to
advance employment and skills as well as gender
equality—challenges that have profound impacts
on individuals’ lives.

Our people are central to everything we do. We are

committed to building a diverse firm, fostering an
inclusive culture, and supporting our people in an
unrivaled environment.

In this section
Building skills and enabling work 7

Advancing gender equality 16

Fostering diversity and inclusion 23

6 McKinsey & Company Social Responsibility Report 2018

 Planet Partnerships Responsible practices
People

Building Supporting the SDGs

skills and
enabling work
Work is vital. It enables people to build fulfilling,
independent lives. Contributing to society in a
meaningful way is intrinsically linked to health and
happiness. For businesses, the availability of a
skilled workforce is critical. For governments, the 8
detrimental impact of unemployment, both direct
and indirect, can be huge.
SDG 8:
We have done considerable research; provided
pro bono and volunteer support for a range of
Decent work and
organizations; and also founded Generation, an economic growth
independent non-profit tackling unemployment,
Targets addressed for SDG 8
which has become the largest global program, by
–– Achieve higher levels of economic productivity
annual volume, in training and placing unemployed
through diversification, technological upgrading,
youth in jobs.
and innovation, including through a focus on
high-value-added and labor-intensive sectors

–– By 2030, achieve full and productive

employment and decent work for all women
and men, including for young people and
persons with disabilities, and equal pay for
work of equal value

–– By 2020, substantially reduce the proportion of

youth not in employment, education, or training

7 McKinsey & Company Social Responsibility Report 2018

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Shaping the MGI’s findings about

the effect of automation

future of work
on the philanthropic
sector were published
in Stanford Social
Innovation Review

McKinsey Global Institute (MGI), the business

and economics research arm of McKinsey,
launched its Future of Work research series in
2017. In its seminal report, A future that works:
Automation, employment, and productivity, MGI
estimated the pace and extent of workplace

55%
automation and its potential economic impact.

In follow-up reports, MGI has assessed the

number and types of jobs that might be lost and
gained under different scenarios and the impact increase in demand for
on workers, including shifting workforce skills technological skills by 2030
and the reskilling challenge.

375m
Since 2017, MGI has published more than 50
reports on the future of work, going beyond
macro trends to implications for specific
geographies, sectors, and demographics, workers may need to switch
including women and minorities. occupational categories by 2030, up
MGI’s insights help frame and open up debates, to 14 percent of the global workforce
bring new thinking, and identify potential

$14.6tn
interventions on major societal issues. Armed
Read our latest
with the facts, we hope leaders around the world insights on the
Future of Work
will be equipped to make better decisions and
build a future of work that works for everyone.
in wages comes from activities that
are already technically automatable

8 McKinsey & Company Social Responsibility Report 2018

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Career-launching
jobs for young Watch stories
from Generation Generation’s approach

people
graduates around
Employers are identified before the program
the world
Read our research starts, so participants can be connected to work
that inspired right after graduating. In addition to teaching
Generation
Our research estimated that 75 million young technical skills, the program works with the
people were unemployed around the world, young people to foster the behaviors and mind-
even as 40 percent of employers could not fill sets that contribute to workplace success.
entry-level vacancies. Inspired by this finding,
Generation continually collects and analyzes
we founded Generation in 2014.
participant, employer, and program data. This
An independent non-profit, Generation has a allows it to identify problems early, to improve
two-sided mission: to help young people build the program in real time, and to prove to both
sustainable careers and to provide employers young people and employers that Generation
with the talent they need. At the end of 2018, delivers a positive return on investment.
Generation was working with employers,
governments, foundations, and other non-profits
in nine countries (and counting). It is already the
largest global program, by annual volume, that
trains and places youth into jobs.
WISE Award
In the past five years, McKinsey has committed
In 2018, Generation won a
$70 million to Generation, in the form of In countries where Generation is active, for
WISE Award for innovation
both financial and human resources. Today, example, McKinsey helps connect Generation
in global education.
Generation is a 280-person organization; to community and employer partners. In 2017,
McKinsey donates the time of an additional McKinsey received the Fundación SERES Award,
20 to 25 consultants. which honors businesses in Spain whose actions
improve society.

9 McKinsey & Company Social Responsibility Report 2018

 Planet Partnerships Responsible practices
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Generation
around
the world
As of December 2018 USA

Italy
Spain
Pakistan Hong
Kong Hong
Mexico Kong
India

25,000 66% 2–6x

Kenya Singapore

graduates in 25 different of graduates still employed after increase in earnings

fields across financial, health, one year; another 3 percent went after completing Generation
manufacturing, retail, and on to further education
technology sectors

81%
placed in jobs within 90 days
2,650+ $100m 90
employer partners; 84 percent said combined earnings of graduates cities, across 9 countries,
Visit Generation’s
website

of program completion Generation graduates outperform to date with Generation programs

their peers on productivity, retention,
and speed to promotion

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 Planet Partnerships Responsible practices
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Scaling “Generation graduates know how to

identify a customer, approach that
in Kenya customer, and bring them closer.
In 2015, less than a year after opening an office They are also helping to bring
in Nairobi, McKinsey colleagues helped make
Kenya one of Generation’s launch locations. By
Prudential into new markets.”
Julius Mulera
the end of 2018, the program had also attracted
Manager, Prudential Insurance, Kenya
the support of the US and Swedish aid agencies,
and Safaricom, a Kenya-based telecom and
communications company.

12,000
Kenya is by far the largest Generation program;
it accounts for almost half of all graduates, in 38
locations around the country. Generation Kenya
offers training and job placement in banking, financial graduates
sales, sewing machine operation, restaurant services,

87%
retail, and distribution. Today, between 10 percent
and 15 percent of all insurance sales roles in the
country are filled by Generation graduates.

The organization is also working with government-

placed in jobs
run technical and vocational education and training

72%
programs, embedding Generation’s approach into
existing workforce-development programs.

remain employed a year

after placement into a job

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Advancing for example, helps participants from a range of

non-STEM backgrounds, including teaching and

women in
tourism, get up to speed quickly. Additionally, 25
percent of graduates have a vocational credential

Spain
but are now entering jobs employers previously
believed required a university degree. One side
effect has been opening the door to technology
Generation began in Spain in 2015, as one of its careers to more women, who are less likely to have
first five locations. Youth unemployment, a long- STEM qualifications.

7%
time problem, was more than 40 percent (it is now
about 33 percent).

Employment in digital industries, however, was

growing. Generation saw an opportunity to train
of all digital-marketing
participants from non-traditional backgrounds for
vacancies in Spain are filled
these jobs. It started with digital marketing and
by Generation graduates
has added programs in Java web development and
robotic process automation (RPA).

Traditionally, only those with STEM (science,

technology, engineering, and math) backgrounds
were considered qualified for such jobs.
Generation training has proved that the pool is
46%
of graduates from Java developer “If I could have dreamed up the
much deeper. More than 60 percent of Generation program are women, compared
to national industry average
best-case scenario, this would
graduates entering these fields have a liberal
arts degree. The seven-week RPA program, of 20 percent women graduates have topped it. What we earn
now is a dignified salary that
allows us to dream.”
Isabel
Generation Spain RPA program graduate

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Developing Visit Qimam’s

website
Saudi Arabia: Qimam
Fellowship
young leaders In 2018, McKinsey and one of our alumni,
Annas Abedin, created the Qimam Fellowship,
an intensive 12-day training program that
Across the world, McKinsey colleagues deliver
includes one-on-one mentoring sessions with
leadership training and mentorship programs
senior leaders. The goal: to identify the next
for high school students, undergraduates, and
generation of leaders, among Saudi university
young professionals to help build future leaders
students, and to nurture that talent to help
for their countries.
shape a resilient future for Saudi Arabia. The
program is supported by 25 multinational and
national organizations and more than 100
leading executives.

13,000
“Qimam is a powerful combination of
a leadership program and counseling
sessions with senior industry leaders. We
applications for
are thankful for the executives who took
fellowship in 2018
the time to sit with us and give us advice,

50
which we can apply practically today.”
Mayada
Qimam Fellow

Qimam fellows
in first cohort

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370
continued
Indonesia: Young Singapore: Young
Developing young leaders Leaders for Indonesia Social Entrepreneurs
Established in 2008, Young Leaders for Launched in 2010, the Singapore International
Malaysia: Youth graduates now young leaders Indonesia (YLI) selects top Indonesian students Foundation (SIF) Young Social Entrepreneurs
Leadership Academy in business, government, to participate in a six-month program to develop (YSE) program inspires, equips, and enables
McKinsey colleagues established the and education leadership and professional skills. youth to start or scale up social enterprises in
Youth Leadership Academy in 2009 to help Singapore and beyond.

50+
YLI includes three leadership forums, McKinsey-
Malaysian university students develop the
led learning in problem solving, a personal McKinsey works with SIF to mentor YSE
skills to become effective national leaders.
project addressing a social issue, and a team teams. The mentors help the young
Over 12 weeks, participants attend intensive internship program with a partner organization. entrepreneurs evolve and refine their
capability-building sessions in communications social entrepreneurship Students learn from guest speakers and receive business models for the final pitch
and problem solving, led by McKinsey projects coaching from experienced leaders. competition for seed funding.
coaches. They undertake innovative social

838 1,000+
entrepreneurship projects, with mentorship
and coaching from leaders from both public
and private institutions. Many of these projects
continue to have social impact long after the high-performing undergraduates alumni in YSE network
program ends. have taken part in YLI

“YLI is a life-changing experience

that empowers students to be
future leaders through nurturing
80%
of winning social enterprises remain
mentorship, constructive modules, in business today
and valuable networking
Visit YLA’s
website
Visit YLI’s
website
opportunities.” Visit YSE’s
website
Juan O. Daniel
YLI participant and chemical engineering
student at University of Indonesia

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Creating jobs Growing SMEs

to create jobs
in South Africa The Meleza Growth Accelerator assists fast-
growth small- and medium-size enterprises
(SMEs) in creating jobs by expanding in high-
Tirelo potential sectors. McKinsey provides on-the-
In addition to our efforts to build skills
ground support and runs scale-up academies for
and equip future young leaders, we also
these SMEs. To date, it has worked with 21 SMEs
work to help create jobs, particularly in
to create 1,400 jobs. By the end of 2020, its
economies where unemployment is high
goal is to support 230 SMEs to produce another
and employment opportunities are limited.
9,500 jobs.
In South Africa, in 2018, McKinsey launched
the Tirelo program (Tirelo means “service”), Enabling small suppliers
with the goal of helping to address the Visit Thola
In partnership with a local tech business, we
Africa’s website
country’s unemployment challenge. Two founded the non-profit Thola Africa (which means
of its components are Meleza, which “Find Africa”), to create an e-commerce website
helps drive growth and job creation in the to help small, community-based suppliers grow
companies most likely to hire unskilled their business through access to a global online
unemployed workers, and Thola, an online sales channel. All proceeds from the Thola
sales platform to expand the reach and platform go to support and grow the participating
sales of small suppliers to help them grow “Not only is Thola using technology businesses. In its first year, Thola hopes to offer
and create more jobs.
in a practical way to give market more than 150 products, serve more than 1,000
customers, and help suppliers create 100
access to the ordinary entrepreneur, new jobs.
but it also takes our being, our
culture, to the world, contributing
toward human connectedness.”
Xoliswa Kakana
ICT-Works (local technology partner for Thola)

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Advancing Supporting the SDGs

gender equality
Gender inequalities remain entrenched in every
society. The disproportionate share of domestic and
caregiving responsibilities means women are often 5
unable to access the work they would like. In many
corporations and other organizations, including at
McKinsey, women are underrepresented in some
positions, particularly in leadership.

Through more than ten years of research, we

have established a compelling evidence base that
makes the case for gender equality. Through our
SDG 5:
global reach, we share our insights and convene
Gender
partnerships with decision makers who have the equality
power to make real change. Through our pro bono
Targets addressed for SDG 5
work with social-sector organizations, we address
–– Ensure women’s full and effective
economic empowerment and the challenges
participation and equal opportunities for
adolescent girls and young women face in
leadership at all levels of decision making
accessing education.
in political, economic, and public life

–– Enhance the use of enabling technology—in

particular, information and communications
technology—to promote the empowerment
of women

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Building the Read our latest

insights on
MGI’s Gender Parity Score (1.00 = gender parity)

economic case
gender equality

for gender
equality Western
Europe 0.67
Eastern Europe
0.74 and Central Asia
In 2015, the McKinsey Global Institute (MGI)
0.71
published its first Power of Parity research, North America, South Asia
Australia, and 0.44 0.61 China
which linked gender equality in society and gender (excl. India)
New Zealand
equality in work. It concluded that closing the
gender gap could add $12 trillion to global GDP 0.48
0.48 East and Southeast Asia
by 2025 in a “best-in-region” scenario in which all 0.62
Middle East and (excl. China)
countries match the progress toward gender parity India
North Africa
of the fastest-improving country in their region. 0.64

MGI identified 75 best practices—such as Latin America 0.57

financial incentives and support; technology
Sub-Saharan Africa
and infrastructure; the creation of economic
opportunity; capability building; advocacy
and shaping attitudes; and laws, policies, and

$12tn 95 240m
regulations—and detailed how the private sector
could contribute, both within their organizations
and through coalitions with others.

McKinsey has presented the Power of Parity

could be added in 2025 if all countries studied by workers could be added through
research at more than 100 events, disseminated
countries matched their best-in- MGI, covering 93 percent higher women participation
the findings through mass and social media, and
region country in progress toward of the world’s women
advised leaders and organizations internationally.
gender parity

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Helping 64,000 279

The study has found that, on average, women
remain underrepresented at every stage of the

companies
talent pipeline among the companies surveyed. In
2018, at the entry level, women accounted for 48 employees surveyed in 2018 companies, representing

to promote
percent of employees, and then the percentage fell 13 million employees,
at every step in the career ladder—to 38 percent at completed the survey in 2018

women in
the manager level and 22 percent at the C-suite.

We have identified trends and best practices to

the workplace help companies turn good intentions into action,

including setting goals and tracking progress,
Representation in US companies by gender and race, 2018

Sr. manager/
using tools to reduce bias and requiring diverse Entry level Manager VP SVP C-suite
Since 2015, our annual Women in the Workplace director
candidate slates, holding leaders at all levels
report has given US companies and employees
accountable, creating clear guidelines for collegial
the information they need to advance women and
and respectful behavior, hiring women as cohorts
improve gender diversity. Conducted in partnership
to reduce isolation, and giving employees the
with LeanIn.org, 462 companies employing almost 36%
flexibility to fit work into their lives.
20 million people have participated in the survey. 46%
52%
In addition to publishing the research, we deliver 59%
In 2018, Women in the Workplace researchers 67% 68% White men
company-level insights to all participating companies,
surveyed more than 64,000 employees on their
often leading to robust follow-up analyses and
workplace experiences and interviewed women of 16%
conversations with senior leaders to help these
different races and ethnicities and LGBTQ+ women
companies improve their diversity strategies. 16%
in more depth. 13%
12%
31%
“As things stand, the number of women in management 9% 9% Men of color
27%
will increase by just one percentage point over the next 26%
Visit the Women 24%
ten years. By hiring and promoting women and men in the Workplace 19% 19% White women
website
to manager at equal rates, we could get close to parity 17%
12% 8% 6% 4% 4% Women of color
over the same ten years.”
Women in the Workplace, 2018 Note: Figures may not sum to 100%, because of rounding.

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Mobilizing Chefsache is recognized on both a German and

international level for promoting innovative ideas,

action to
including on modern leadership culture and the
design of effective flexible working models.

advance female A dedicated McKinsey team in Germany continues

to support Chefsache’s efforts to share best

leadership practices and experiences and educate leaders

through conferences, studies, reports, and articles
on the benefits of a better gender balance.
Germany: Chefsache
McKinsey is a founding member of Germany’s
Chefsache (literally “boss matters”). Started in
2015 with Chancellor Angela Merkel as its official
sponsor, Chefsache is a network of leaders from
German industry, science, media, and the public
and social sectors who are making gender
equality a priority.

In Germany, women hold just 11 percent of senior

management positions, and men outnumber
women 11 to 1 on the boards of the top 200
German companies. The members of Chefsache
believe that advancing women is fundamental
to the well-being of society and important to
German competitiveness.

Visit the
Chefsache
website

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continued
Australia: Male Today, MCC has more than 200 members from
Mobilizing action to Champions of Change all over the country, covering more than 750,000
advance female leadership Male Champions of Change (MCC) was launched
employees, in corporations, government, military,
academia, and sport. It informs research and
in 2010 to encourage male business leaders
Italy: Valore D in Australia to address gender inequality in the
shares best practices to promote gender diversity.
Its leaders have spoken at hundreds of business
Valore D (which means “Value Women”) was founded workforce. Two former managing partners of
forums, locally and internationally, addressing
by a group of 12 companies, including McKinsey, to McKinsey’s Australia office are members of the
subjects such as returning to work, flexible work
promote gender balance and inclusive cultures in MCC Founding Group and the current managing
patterns, everyday sexism, and backlash against
Italian businesses and across the country. Since its partner has been a strategic adviser to MCC
gender-equality strategies.
launch in 2009, Valore D has grown to more than since its formation.
200 member companies, representing two million MCC members commit to listen and learn from
employees and total revenues of $8.4 billion. each other, set targets for the representation of
women in their organizations, and report progress
In addition to offering dedicated learning and
through annual reports—68 percent of MCC
mentoring programs, Valore D provides a forum
members have achieved or improved gender
for companies to exchange best practices with
balance in key management personnel since the
one another and to work together to push women
Visit the Male first MCC report.
leadership to the top of the CEO agenda. Champions of
Change website
Valore D’s learning programs include “In the
“We’ve learned that driving impact
Boardroom,” a unique executive training program to
help prepare women for board membership. More
on gender equality requires a
than 50 percent of managers who participated in systemwide approach. Innovative
Valore D learning and mentoring programs had a actions led or supported by MCCs
career advancement within 18 months. over the past eight years are now
McKinsey colleagues continue to support Valore D as the norm among those wishing
mentors; by developing capability-building programs, Visit the Valore D to capitalize on the benefits of
website
such as the “C-Level School” to support women in diversity.”
the C-suite; and by serving on its board.
Elizabeth Broderick
Former Sex Discrimination Commissioner
in Australia and founder of MCC

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Addressing Girls Who Code

While jobs in computing are continuing to increase,

the gender gap fewer than one in five computer-science college

graduates in the United States is a woman. In the

in computer workforce, the gender gap is widening, with the

number of women computer scientists dropping

science from 37 percent in 1995 to 24 percent in 2017.

Girls Who Code (GWC) is a non-profit organization

founded in 2012 to close the gender gap in
Visit the Girls Who technology and provide girls with the skills and
Code website resources to access 21st-century opportunities.

Since 2015, McKinsey has supported GWC on a

pro bono basis, helping to build its strategic plan
and identify opportunities to increase its reach,
such as implementing programs for younger girls
and expanding the program to new geographic
areas. This has included a focus on reaching
historically underrepresented girls, including young
women who are Black or Latina or come from low-
income backgrounds.

Today, GWC has introduced new programs,

including after-school clubs for third to fifth
graders and a summer immersion program,
and expanded to Canada, India, and the United
Kingdom. It has served more than 185,000 girls,
and GWC alumni go on to major in computer
science and related fields at 15 times the US
national average.

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Enabling girls
to get education
Malala Fund
More than 130 million girls worldwide are not
in school, and the problem is particularly acute
in conflict zones, poverty-stricken regions, and
countries with legal or cultural barriers to girls’ Visit the Malala
Fund website
education. Malala Fund was set up in 2013 by
Malala Yousafzai—the target of an assassination
attempt by the Taliban in response to her public
campaign for girls’ education—and her father to
work toward a world where all girls have access to
12 years of safe, quality education.

A McKinsey team helped Malala Fund to map the expectation that all children receive education for “Malala Fund’s first five years helped bring
global education landscape and develop ideas for 12 years and playing a pivotal role in the $2.9 billion
girls’ education to the desks of leaders
its activities. It also helped craft the foundation’s commitment to girls’ education at the 2018 G7
around the world. I believe we can see every
early strategy and an operational plan. McKinsey Summit in Charlevoix.
colleagues Dominic Barton, former global girl in school in my lifetime—and every year
Malala Fund’s signature initiative, the Gulmakai
managing partner, and Lynn Taliento serve on we’re moving forward in pursuit of that goal.”
Network, invests in the work of educators and
Malala Fund’s board. Malala Yousafzai
activists in countries where girls face the greatest
In its first five years, Malala Fund helped deliver challenges to education. It also invests in training
increased funding and policy reform in support girl advocates around the world and highlights the
of girls’ education. This included persuading the stories of young activists through its popular digital
international community to formally adopt the publication, “Assembly.”

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Fostering Awards and recognition

diversity
and inclusion
We know from our own research—and from
our experience—the power that diverse teams
Working Mother NAFE The Times (of London)
can have. Inclusive teams that harness diverse
Top 10 in best companies for moms Recognized seven times since 2002 Top 50 Employers for Women
perspectives deliver better results. That is why,
every year since 2015 by National Association for Female (2019)
at McKinsey, diversity and inclusion are not just
Executives Top Companies for
moral imperatives—they are strategic priorities. Best companies for dads (2018)
Executive Women in the United States
We are dedicated to creating equal opportunities
for everyone, and we encourage diversity in all
forms, including age, gender, sexual orientation,
gender identity, disability, and socioeconomic
background.

It is in everyone’s interest—both clients and

colleagues—to have role models of all kinds and to
create an environment where everyone feels able
to bring their best and full self to work, every day.
Human Rights Campaign Vault
Foundation Top consulting firm for Diversity
Best Places to Work for LGBT & Inclusion in 2018 and 2019
Equality—perfect score in Corporate Learn more
about diversity
Equality Index every year since 2006 and inclusion
at McKinsey

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All In We have seen progress in representation of

women at all levels of our firm. Since 2014, the
Representation of women at McKinsey, 2018

representation of women in our global recruiting

Women at McKinsey has increased from 38 percent to 45 percent; in

45%
of new hires
Launched in 2014, our All In program seeks to help some offices, women account for the majority of
the firm achieve our aspirations for the hiring and new hires. Female consultants today are less likely

43%
advancement of women. to leave than they were in the past, and in many
of our offices, the attrition of women is lower than
Through our policies and practices, we strive to that of men. The number of female partners has
enable women at McKinsey to balance a full life risen 80 percent in three years. of all employees
with an exceptional career. We have introduced
best-in-class flexibility and parental-leave We recognize that we have more to do—women
programs, inclusive leadership and unconscious- make up just 13 percent of senior leadership 13% of senior leaders1
bias training, and a global initiative to ensure roles, for example—but we are committed to
women are well sponsored. our aspiration that women be well represented

19%
of Shareholders Council2
at all levels and have an exceptional experience
We also have global programs to recruit female at McKinsey. 1
Top 6%, as defined by UN Women HeForShe.
candidates. Participants in our Next-Generation 2
McKinsey’s governance body.
Women Leaders events, started in 2012, explore
the importance of women in leadership and refine
their own leadership skills. Our Next-Generation
Women Leaders Award offers recipients a
Organizations we partner
scholarship toward the cost of college tuition
or other professional-development activity and
with to advance gender parity
mentorship from McKinsey consultants.

Learn more
about Women
at McKinsey

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People

Recruiting We recruit at historically Black colleges and

universities (HBCUs) in the United States. In 2018,

diverse talent
we saw the highest number of applicants we have
ever received for undergraduate roles from HBCUs.

To promote diversity in gender, ethnicity, Last year, McKinsey piloted a leadership program
socioeconomic background, and sexual orientation, for LGBTQ+ college students in New York, and we
we look for different ways to reach people who are looking to expand the program to other offices.
might otherwise not consider McKinsey. In addition, McKinsey has expanded its work with
the North America LGBTQ+ partnership ROMBA
In the United States, our dedicated recruiting (Reaching Out MBA) to other regions.
programs have increased the representation of Black
and Hispanic individuals in our graduate recruitment.

In our Freshman Diversity Leadership Academy,

Black and Hispanic college freshmen from all over the

35%
United States build their leadership, communication,
and team problem-solving skills and learn more about
McKinsey and management consulting.

increase over two years in North

America in new hires who identify
as LGBTQ+, Black, or Hispanic

10%
of 2019 undergraduate recruits in
North America identify as LGBTQ+

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Promoting to an inclusive environment. We anticipate this

number will increase rapidly as new Conscious
Read more
about the Black
Black Economic Forum
McKinsey Black Network, one of our affinity

inclusion
Economic Forum
Inclusion trainings are rolled out across the networks, conceived the idea behind the
firm in 2019. first Black Economic Forum, which we
Our policies also encourage inclusion. Where hosted in partnership with the Executive
We promote affinity and community groups
legally permissible, our benefits policy allows Leadership Council and Beta Iota Boulé,
to foster connection, mentorship, and
same-sex domestic partners to join our benefits to address the inequities facing the Black
professional development, including GLAM
plan. In countries that apply discriminating tax workforce, strengthen the earning potential
(for LGBTQ+ colleagues); the McKinsey Black
treatment to domestic-partner benefits coverage, of families, and improve philanthropic
Network; Access McKinsey (for colleagues with
McKinsey employees receive tax assistance to support within communities.
disabilities); Parents of Special Children; and
redress any disparity. Where available, McKinsey’s
US networks for Hispanic colleagues and
benefit plans cover gender-reassignment surgery,
Asian and Asian-American professionals.
medical counseling, and hormonal therapy.
We invest heavily in learning and development
across McKinsey, including tailored leadership-skills
training and professional-development courses for
The Alliance
colleagues from underrepresented groups.
GLAM is a vibrant global network of more
We embed principles of inclusion into all our than 800 LGBTQ+ colleagues with a
leadership-development and learning programs community of supporting “allies” in excess
from day one. Our performance-review and of 4,000. Extending its efforts beyond
promotion processes also recognize qualities of McKinsey, in 2018 it convened The Alliance,
inclusive leadership. We have also implemented a which brought together more than 115
global set of best practices around sponsorship. private-, public-, and social-sector LGBTQ+
leaders from 19 countries to discuss the
Since mid-2017, about 3,000 colleagues have
inclusion and diversity agenda not just on
participated in Conscious Inclusion workshops,
Read more about a personal level and in their organizations
which help colleagues with using inclusive The Alliance
but also in work and society more broadly.
language, understanding different perspectives,
confronting biases, and learning how to contribute

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Reconciliation ongoing opportunity, through cultural awareness

training, to learn about Indigenous culture,
Visit First
Australians

in Australia
Capital’s website
history, and personal stories and the challenges
Indigenous people face. We have also established
an internship program for Indigenous students,
In Australia, Aboriginal and Torres Strait Islander with our first Indigenous intern and scholarship
people, who comprise 3 percent of the country’s winner joining us later in 2019.
population, experience an unemployment rate
McKinsey is working to ensure the inclusion of
three times as high as the general population. They
Aboriginal and Torres Strait Islander–owned
also face hardships in obtaining career training and
businesses in our procurement process. We have
funding for starting and expanding businesses.
negotiated several contracts with Indigenous
McKinsey’s offices in Australia worked with suppliers and aim to meet our target of 3 percent
Reconciliation Australia to create a Reconciliation of addressable spending by 2020.
Action Plan to support the country’s ongoing
process of reconciliation and economic
empowerment to combat these inequalities.

We supported First Australians Capital, an

organization that assists in capacity building and
funding for Indigenous businesses, to expand the
organization’s ability to coach Indigenous business “First Australians Capital was a very new
owners and fund their companies. We also helped start-up organization with a huge mission and
them develop Black Ops, a shared-services limited resources. The McKinsey team worked
function that offers human resources, legal, alongside us and helped shape and refine our
accounting, finance, and other services that many
strategy and execution plan so our small team of
Indigenous business owners struggle to access.
Visit Supply five could work with more than 200 businesses in
As part of our efforts to foster diversity and Nation’s website
a sustainable and scalable way to build economic
inclusion, our colleagues in Australia have the
independence in our community.”
Jocelyn King
CEO, First Australians Capital

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People

Supporting Parents at McKinsey

We want to support our people as they start and

our people raise families, to help them balance their personal

and professional responsibilities.

As part of our commitment to building a We offer a variety of flexibility and parental-leave

diverse firm and fostering an inclusive culture, programs. Take Time gives consultants the option
we strive to support our people. to take an extra five to ten weeks off between
projects. Pace enables consultants to stay in their
current role longer, thus reducing the pressure to
fulfill requirements for their next role. There are
also part-time programs and opportunities for
short- or long-term rotations.

My Experience Generous and flexible leave benefits are available

McKinsey’s My Experience program is designed to for birth, non-birth, and adoptive parents;
support employees holistically—mind, body, and coaching and support is provided by a dedicated
purpose—so that they can bring their whole selves mothers’ network; and a “phase back” option
to work every day. Happier and healthier people helps employees transition back to work after
not only perform better but also feel supported parental leave.
and are able to enjoy a better work-life balance.

The My Experience program covers topics

related to health and wellness, including exercise,
nutrition, sleep, mindfulness, work-life balance,
and life coaching. Initiatives that offices have
introduced include holding regular exercise
classes in the office, changing to healthier food
options in the cafeteria, offering a mindfulness
retreat, and inviting experts to present tips on
getting more and better sleep.

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Planet

Planet
The world faces a critical moment in tackling
the challenges of climate change, environmental
pollution, and responsible use of resources. Our
planet supports our lives and our work. We all have
a role to play in protecting it for future generations.

We recognize our responsibility to operate

sustainably, and we seek to use our assets to
support others who are working to improve
the environment.

In this section
Supporting sustainable development 30

Managing our environmental footprint 34

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Supporting Supporting the SDGs

sustainable
development
The effects of global warming and climate change,
including the increased frequency of extreme
weather events, along with other environmental
12
challenges such as urban air pollution, waste
management, and plastics in our oceans are
threatening communities, and ecosystems, across
the world. Disadvantaged populations are often
the worst affected. SDG 12:
We believe economic growth and environmental
Responsible
sustainability are compatible; economic growth is consumption
necessary to provide the capital and innovation and production
necessary for long-term sustainability, and,
Targets addressed for SDG 12
likewise, long-term economic growth depends
–– By 2030, achieve the sustainable
on a healthy environment.
management and efficient use of
Over the past decade, we have sought to develop natural resources
an evidence base and set of analytical tools to
–– By 2030, substantially reduce waste
enable sound decision making about sustainable
generation through prevention,
development. We have also put this research into
reduction, recycling, and reuse
action, through pro bono support of environmental
non-profits and, most recently, through the work
of McKinsey.org.

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Shaping the knowledge partnership with the World Economic

Forum, McKinsey analyzed the performance of

debate on
114 countries’ energy systems and their readiness
for a transition to a lower-carbon future. Our

sustainability
insights on renewable technologies help
companies develop scalable solutions in areas
such as wind, solar, energy storage, and carbon
For more than ten years, McKinsey’s research capture, sequestration, and use.
has provided a fact base on emissions-reduction
The McKinsey Center on the Future of Mobility
opportunities and their associated costs and
has developed detailed forecasts on electric-
investment needs. Our global greenhouse
vehicle adoption, ride sharing, connected
gas-abatement cost curves remain an iconic
vehicles, and autonomous operations and the
touchstone for a fact-based framing of the
environmental impacts for the major changes
opportunities and challenges ahead. Today, our Read the latest
underway. A 2019 report indicated that seamless insights from our
research is focused on four themes—energy Sustainability
urban mobility systems—in which boundaries
transitions, resource-productive operations, Practice
among private, shared, and public transport would
the circular economy, and the future of mobility.
be blurred—could be cleaner, more convenient,
Our research on the benefits of a circular and more efficient than the status quo, reducing
economy demonstrates how businesses can travel times by 10 percent and lowering
improve the management of resources, design greenhouse gas emissions by up to 85 percent.
products to eliminate waste, and maximize
the recycling of products, components, and
materials in use. One 2018 report found that
recycled plastics could offer the chemicals
industry a profit pool of as much as $55 billion
a year worldwide by 2030.

We also help companies and governments

navigate technological and regulatory disruptions
driving energy transitions. During a three-year

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Rethinking McKinsey.org has launched Rethinking

Recycling pilots in Bali, Indonesia, and Buenos
Learn more on
McKinsey.org’s

the recycling
website
Aires, Argentina, working in partnership with
community groups, social enterprises, local and

challenge
national governments, and consumer-goods
companies that use plastic.

Its goal is to develop a scalable model, with

The world generates 3.5 million tons of solid
demonstrated success that achieves near-100
waste every day, a figure that has increased
percent capture of recyclable materials, sharing
ten times over the last century and is growing
learnings and building momentum to scale
rapidly. Cities are struggling with overflowing
nationally and globally. Watch McKinsey.org’s
landfills and inadequate waste services. pilot in Buenos Aires

Organic waste is a major source of methane,

a greenhouse gas 28 times more potent than
carbon dioxide. Plastics wreak havoc on ocean
wildlife and release toxic chemicals into the
atmosphere when burned.

McKinsey.org—an independent non-profit

founded by McKinsey & Company—is developing
new solutions to build recycling systems that will “In its first five months, our pilot in
put all waste to productive use for the benefit of Buenos Aires’ informal settlement,
communities and the environment.
Barrio 31, has achieved a 25 percent
Its Rethinking Recycling approach encompasses recycling rate for dry recyclables, such
the whole waste stream. On the supply side, it
as plastics, paper, and glass—higher
is working to improve the quantity and quality of
than many US cities with decades-long
recycled material. On the demand side, McKinsey.org
is bringing together groups of manufacturers to find histories of recycling.”
ways to stabilize markets for recycled materials and Shannon Bouton
thus unlock investment. Global Executive Director,
Sustainable Communities, McKinsey.org

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Planet

Creating new years ago by Kristine Tompkins, former CEO of

Patagonia, and Douglas Tompkins, the founder of
“With the help of the McKinsey team, we were able
to demonstrate how nature-based tourism has the
national parks
North Face, works on issues related to conservation,
potential to provide economic and social benefits to
rewilding, and biodiversity in Chile and Argentina.
the people living in the 60 communities along the
in Chile McKinsey colleagues provided pro bono support
to Tompkins Conservation to develop a business
Ruta, and help fund the parks for the long term.”
Kristine Tompkins
model and funding structure to ensure that the
In 2018, Chile added ten million acres—an area President, Tompkins Conservation
parks would both be economically sustainable and
roughly the size of Switzerland—of new national Learn more on the
benefit the local communities along the Ruta. Our Route of Parks
parklands. The new acreage will serve as the website
analysis estimated that, correctly implemented,
cornerstone of the Route of Parks (or “Ruta”), a
nature-based tourism along the Ruta could
network of 17 national parks that will span 2,700
create more than 43,000 jobs and $270 million in
kilometers (1,700 miles) of scenic roads and
economic impact a year by 2030.
waterways across the country’s pristine wilderness.
In addition to the study, McKinsey provided ongoing
The expansion included a million acres donated
pro bono support to help develop a long-term
by Tompkins Conservation. This US-based non-
financing structure to ensure the conservation of
governmental organization, started more than 25
the parks and the socioeconomic well-being of the

43,000
60 communities along the Ruta. We believe that
engaged communities are more likely to become
active stewards of the parks, thereby securing their
long-term protection.
jobs could be created by the
Route of Parks

$270m
potential economic impact
10m
acres of new national
Learn more
on Tompkins
Conservation
website
Photo courtesy of Tompkins Conservation

annually by 2030 parkland in Chile

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Managing our 2018 highlights

environmental
footprint
100%
carbon neutral

87%
McKinsey is committed to minimizing the impact our
firm has on the environment. We seek to continually
strengthen our environmental policies and practices.

We are making efforts to manage, and reduce, our

renewable electricity
global greenhouse gas (GHG) emissions, the largest
component of our environmental footprint. We are

175+
also developing a global approach to managing our
material footprint, building on waste and recycling
initiatives underway in different offices.

environmental initiatives
led by Green Teams

Learn more
about McKinsey’s
environmental
sustainability

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Reducing We are exploring ways of reducing our travel,

mostly air travel to and from our clients,

our emissions
which accounts for more than 80 percent
of our emissions. New video-conferencing
capabilities, for example, enable effective

0
Greenhouse gas (GHG) emissions are the remote communication and collaboration.
largest component of our environmental
We are also working with our suppliers to improve
footprint. However, our firm today is carbon
the environmental impact of the products
neutral. We have achieved this by reducing
and services we purchase. In our commercial net carbon
emissions where we can and investing in
conversations with airlines, for example, we emissions (2018)
carbon-reduction projects to offset
make clear to them the importance we place
the remainder.

60%
on their actions to address emissions.
We have set targets to reduce our
Scope 1 and Scope 2 GHG emissions in
line with the level of decarbonization
required to limit the global temperature emissions-reduction target
increase to no more than two degrees by 2030 (Scopes 1 and 2 GHG
Celsius above pre-industrial levels. emissions)

90%
emissions-reduction target
by 2050 (Scopes 1 and 2 GHG
emissions)

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2018 greenhouse Market-based GHG emissions by Scope (thousand tCO2e)

2017 2018

gas emissions
800
Scope 1 16 16
Scope 2 29 5
600
Scope 3 735 767
We rigorously monitor and independently verify
Total 780 787
our greenhouse gas (GHG) emissions, following 400
the GHG Protocol and best practices, such as Note: Figures may not sum to total,
because of rounding.
including radiative forcing in emission factors
200
for air travel. In 2018, our total GHG emissions Scope 1: Direct emissions (eg, from
combustion of fuels in owned or
were 787,000 tCO2e (market-based). The
0 controlled boilers)
largest source of emissions was air travel, which 2017 2018
Scope 2: Indirect emissions from the
accounted for 83 percent of our emissions,
generation of purchased electricity,
followed by hotel accommodation.
heat, or steam

Despite the growth of our firm in 2018, we saw Scope 3: Other indirect emissions (eg,
no significant increase in our firm’s emissions. business travel, purchased goods)

This reflects the fact that our emissions from

purchased electricity decreased as we transitioned
Market-based GHG emissions per capita (tCO2e)
to purchasing renewable electricity.
2017 2018
Our emissions per capita decreased 11 percent, 30
Per capita 29.5 26.4
from 29.5 tCO2e per capita in 2017 to 26.4
25
tCO2e per capita in 2018.

11%
20

15
See our GHG
reporting 10
methodology
decrease in emissions 5
per capita (2018 vs 2017)
0
2017 2018

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Transitioning Renewable electricity, 2018

to renewable Non-renewable 
Renewable
13%
87%

electricity Learn more

about RE100

In 2018, McKinsey became the first global

consultancy to join RE100, a coalition of
organizations committed to using 100 percent
renewable electricity. We have committed to Renewable electricity mix, 2018
purchasing 100 percent renewable electricity
by 2025; we are now at 87 percent. Wind 50%
Hydro 37%
We do this by sourcing renewable electricity
Solar 13%
directly from our providers where we can and
Biomass 1%
working with our landlords in offices where
we do not have a direct relationship with the Note: Figures may not sum to total,
because of rounding.
utility company. Where this is not possible, we
purchase energy attribute certificates, such as
renewable-energy certificates (RECs), equal to
our consumption in those markets, to send a
demand signal and to support the development
of renewable energy.

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Investing Brazil Zimbabwe

in carbon-
Rainforest conservation Forest protection
China
In Brazil, McKinsey has invested The Kariba project area protects

reduction
Solar
in Envira Amazonia. This project almost two million acres on the
cookstoves
helps communities shift away from southern shores of Zimbabwe’s

projects cattle ranching and subsistence

farming—practices that have led
Lake Kariba. Home to four national
parks and eight safari reserves,
to damaging forest cutting—and the area forms a giant biodiversity
After a firmwide poll, we decided to focus
to other sources of income, such corridor. Residents who previously
our offset efforts on forestry and land use.
as planting acai, rubber, and other Colombia India cleared the lush rainforest to
These projects not only absorb carbon
cash crops. The introduction of Permanent Domestic make a living are now pursuing
but also provide additional benefits,
sustainable forest-management reforestation biogas sustainable farming, developing
such as safeguarding wildlife habitats
practices has helped to preserve community gardens, cultivating
and providing new livelihoods for local
local watersheds and improve fast-growing moringa trees as a
communities. South Pole, a leading provider
water quality while controlling cash crop, and beekeeping. The
of decarbonization solutions, monitors the
soil erosion. These practices are project also provides communities
effectiveness of these projects.
essential to protecting the habitat, Rwanda Thailand with infrastructure improvements
which is home to an incredible such as roads, wells, and health
array of wildlife—an estimated one Borehole Wastewater clinics. Since 2011, the Kariba
rehabilitation treatment
to two million different species, project has prevented more
including howler monkeys, than 18 million tons of CO2 from
freshwater dolphins, and macaws. entering the atmosphere and
The project has protected around helped 85,000 residents.
500,000 acres from logging.
Learn more about
Turkey
McKinsey’s carbon
offsets Landfill gas
capture

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Planet

Making our Green Teams

Across nearly 70 of our offices,

offices greener Green Teams are leading more

than 175 environmental initiatives
to reduce our footprint and build
How we operate our offices has an environmental
awareness about environmental
impact, through the resources they consume
sustainability.
and the waste they generate. We strive to locate
our offices in buildings with high environmental
standards, such as Leadership in Energy and
Environmental Design (LEED) Gold or Platinum
certification. We also work to make our offices
more energy efficient, including through
heating, ventilation, and air conditioning (HVAC)
optimization and the use of insulation, sensors,
and LED lighting.

66
Tampa S o Paulo
Florida, United States Brazil
The Tampa Service Center is sited in a building In April 2017, the São Paulo office started
with no recycling program. In 2018, our Tampa implementing a series of energy-efficiency Green Teams
Green Team introduced an initiative to recycle measures. These initiatives include upgrading

175+
plastic bottles, aluminum and steel cans, glass, the HVAC system, switching to LED lighting,
paper, and cardboard. They also launched a and installing motion sensors in lesser-used
campaign to encourage colleagues to reduce, areas. In one year, the office has seen a 28
reuse, and recycle. They expect 85,000 percent reduction in energy consumption.
aluminum cans, 38,000 paper coffee sleeves, environmental initiatives
and 9,000 plastic juice bottles will be diverted
from landfill and recycled each year.

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Partnerships

Partnerships
McKinsey has offices in 130 cities, from Abu Dhabi to
Zurich. These communities are home to our clients and
their customers, to our own people and their families.
We want them to be inclusive, sustainable, and
prosperous places to live and to work. We believe we
have an opportunity and a responsibility to deploy our
resources, our people, and our capabilities to give back.

Our offices and our people work to support non-profits

and build business-led partnerships for social impact in
their communities.

By doing this, we’re working to advance SDG 17,

Partnerships for the goals, which is about organizations
working together, across sectors, breaking down silos,
to advance the global goals.

In this section
Supporting non-profits 41

Supporting business-led city partnerships 48

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 People Planet Responsible practices
Partnerships

Supporting
non-profits
600+
non-profits
Supporting the SDGs
17
supported each year

Every year we work with more than 600 non-profits,

organizations that are addressing some of the
world’s most pressing social challenges. Through pro
bono service, board membership, and volunteering,
we strive to bring insights from our work to
strengthen their impact and help them grow.

Each McKinsey office forms its own partnerships,

reflecting the issues that colleagues are passionate
about and that matter locally.
SDG 17:
Partnerships
for the goals
Targets addressed for SDG 17
–– Enhance the global partnership for
sustainable development, complemented by
multistakeholder partnerships that mobilize and
share knowledge, expertise, technology, and
financial resources to support the achievement
of the sustainable development goals in all
countries, in particular developing countries

–– Encourage and promote effective public,

public-private, and civil-society partnerships,
building on the experience and resourcing
strategies of partnerships

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Partnerships

Improving Following a successful pilot in 2016 at a primary

school in Shatila refugee camp, the program has

education for
expanded to five more schools, reaching 3,200
children. The program is designed to be easily

Syrian refugees
scalable, with light-touch central involvement
and coordination, and aims to improve education
outcomes for thousands of children as the
Lebanon methodology is rolled out to other schools.

More than a million refugees have fled the Their work has also helped Basmeh & Zeitooneh
Syrian conflict into Lebanon. to secure a grant of nearly $3 million from
international donors to establish and run a school
McKinsey’s Middle East and London offices,
in the Bekaa Valley that will serve 750 children
determined to be part of the response to this
who would otherwise not be in school.
humanitarian crisis, recognized that hundreds of Visit Social Support
Society’s website
thousands of children had been displaced and
were receiving little or no schooling. Since 2015,
they have worked with non-profits in Lebanon to
provide education to these displaced children.

They have partnered with local non-profits

Basmeh & Zeitooneh (“basmeh” means
“smile” and “zeitooneh” means “olive”) and
Social Support Society to develop the School
Improvement Program, which addresses teacher
skill, school culture and management, and
curriculum and assessment.

Visit Basmeh &

Zeitooneh’s website

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Partnerships

Reforming founder Sherry Lachman and her team develop

their initial business plan, design interview tools for

foster care
fellowship candidates, create criteria for selecting
agency partners, and build a strategy to achieve

in the US
the financial sustainability that would enable it to
expand its operations.

Foster America has now partnered with 20

Foster America agencies in 11 states and secured more than
There are nearly half a million children in foster $2.5 million in government contracts. The
care in the United States. Many move from organization has placed 38 fellows to date and
placement to placement. Children who spend continues to receive more than 25 applications for
time in the system are more likely than those who every fellowship place, reflecting the demand from
don’t to experience trauma, homelessness, sex government partners and fellowship talent alike.
trafficking, and imprisonment.

Foster America, a San Francisco–based non-profit,

Visit Foster
recruits, trains, and places professionals in the America’s website
child-welfare sector through an 18-month fellowship
program. Foster America fellows bring skills in data
and technology, design and marketing, strategy and
planning, and finance that are needed to address
the child-welfare system’s biggest problems in new
ways. By providing skilled leaders to these agencies, “The team at McKinsey played an essential role
Foster America aims to transform the lives of in the launch of Foster America. They helped
vulnerable children and families.
build and test our program model. We now
McKinsey has worked with Foster America since have a financial model that will help us grow
the early stages of its launch in 2016. We helped
to scale and support many more vulnerable
kids and families across the country.”
Sherry Lachman
Founder and CEO, Foster America

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Helping London’s “The Work Ready Program, which Thames

Reach developed in partnership with McKinsey,
formerly homeless has become an important part of how we
support people into work. Its unique approach
secure work builds self-esteem and skills for those who
have often given up hope of finding work.”
Work Ready Program Catherine Parsons
More than 300,000 people are homeless in Director of Operations, Thames Reach

the United Kingdom, according to research by

homelessness organizations. One charity reports Visit Thames
Reach’s website
that, while more than 75 percent of its clients want
to work, only 10 percent are currently employed.

The Work Ready Program is meant to address

that problem. Developed by Thames Reach, a
non-profit that works to end homelessness in
London, and McKinsey’s London office, Work
Ready provides support and skills development to Since its creation in 2013, Thames Reach has
help those who have experienced homelessness run the program several times each year, with
to gain employment. volunteers from different organizations, including
more than 200 McKinsey employees. Of the more
The program focuses on building soft skills, such
than 300 participants who have completed the
as confidence, communication, and teamwork,
program, 55 percent have secured employment
along with work-related training. It is delivered in
or moved into education or training—more
partnership with businesses and public-sector
than double the success rate of the next-best
employers, who support the program and whose
comparable program.
employees volunteer to lead activities and
trainings and act as mentors.

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Preparing Colorado
youth for college
and careers
CareerWise Colorado
Non-profit CareerWise Colorado helps young people Visit CareerWise’s
in the state to combine academic learning with on- website

the-job skill training through innovative modern

apprenticeships. For businesses, this gives them a
hands-on role in developing talent with the skills they
need. For students, modern apprenticeship can be a
pathway to further education or a career-launching job.

The three-year curriculum begins with high school

juniors spending three days a week at school and “CareerWise uses McKinsey & Company’s
one and a half to two days working for one of the framework to attract partners and determine
program’s partner businesses. After graduation, they the proper way to coordinate our growth.
can continue to work for the business and may pursue It gives us a living planning and functional
higher education in parallel.
road map that McKinsey continually updates
A team from McKinsey’s Denver office worked with as we gather new insights in order to ensure
CareerWise to develop a financial framework to help
all stakeholders are informed and on task.”
the non-profit increase its income and expand its
Ashley Carter
apprenticeship program. This included using economic
COO, CareerWise
analysis to build a fact base to make the case to
potential employer partners and donors and working
with the board of directors to define CareerWise’s
growth strategy.

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Medical “The McKinsey team has served

as a strategic partner and trusted
The Academy harnesses the power of digital
training tools to build the clinical skills of

professionals
community health workers and the capacity of
advisor, providing the expertise we
health system leaders to build higher-quality
needed to advance our vision and
for remote
systems. A pro bono McKinsey team helped
expand the impact of our work.” Last Mile Health’s leadership team develop its

communities
Dr. Raj Panjabi business plan for the Academy.
CEO, Last Mile Health
Learners from 160 countries have already
Visit Last Mile
registered for the Academy’s first leadership
Health’s website
course with edX and HarvardX, and over half of
Last Mile Health Liberia’s national community health workforce
Around the world, one billion people lack access to has access to digital tools equipped with the
healthcare because they live too far from a health Academy’s e-learning platform.
facility. Last Mile Health works with governments Last Mile Health remains dedicated to extending
to build networks of community health workers the reach of the health system to the most remote
to provide primary healthcare to the world’s most communities. To date, it has trained more than
remote villages. 3,000 community health workers and nurse
The organization was founded in Liberia, where supervisors across the world.
more than 1.2 million people live in hard-to-reach
communities and often die needlessly from
preventable diseases such as pneumonia, diarrhea,
malaria, malnutrition, and complications from
childbirth. It played an instrumental role following
the 2014–16 Ebola outbreak in the country.

McKinsey has supported Last Mile Health’s CEO,

Dr. Raj Panjabi, to operationalize his vision for the
Community Health Academy, for which he was
awarded a $1 million grant as the recipient of the
2017 TED Prize.

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Improving Pratham
Pratham develops low-cost, community-driven
Peepul
Peepul is an education non-profit with the vision

learning in solutions to improve the quality of learning and

works with state governments to take them
that every child should receive a high-quality
education that enables them to reach their

Indian schools to scale. From its start in 1994 with a single

preschool in Mumbai, its work has evolved into a
potential. Peepul is transforming the quality of
education in government schools, through a
national network reaching 58 million children and focus on whole-school transformation, teacher
Two-fifths of the 250 million children worldwide
youth through literacy and vocational programs capacity building, and strengthening systemwide
who cannot read or write reside in India. With
in 23 Indian states, establishing Pratham as accountability and governance mechanisms,
260 million students currently enrolled in the
one of the top non-governmental organizations currently impacting 35,000 students.
K–12 school system, the Indian education
dedicated to fostering universal literacy.
population is large and has global significance, To propel Peepul’s growth, McKinsey developed
and the country today is mobilizing quickly to To support Pratham in its aspirations to double the a strategic plan and growth aspiration to help
improve student outcomes. number of children it reaches each year, McKinsey the organization realize its vision. We continue
developed a five-year growth strategy for the to provide ongoing support, including to support
McKinsey India supports two progressive non-profits
organization. Firm members also serve on the Peepul’s innovative work on district-level
in the education sector with their growth strategy.
board of the Pratham Education Foundation. transformation of the education system. Firm
members also serve on Peepul’s advisory board.

“The quality of education continues “We are fiercely ambitious about

to remain a challenge in India. improving the quality of education in
McKinsey has been a valuable India’s government schools. McKinsey’s
partner for Pratham as we have support helped us clarify our vision
grown and diversified to address and growth aspiration as we work
Visit Pratham’s
how foundational skills can be toward impacting half a million Visit Peepul’s
website acquired effectively and durably.” students by 2023 through 3,800 website

Rukmini Banerji schools and 14,000 teachers.”

CEO, Pratham
Kruti Bharucha
CEO, Peepul

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Supporting Responding to
Mexico’s earthquake
A McKinsey team in Mexico provided pro bono
support to help FFM structure the effort. It

business-led
designed an operating model that facilitated
In the aftermath of the September 2017
decision making and improved coordination and
earthquake that killed hundreds of people in

city partnerships
execution along key activities, while ensuring
Mexico City and surrounding areas, prominent
transparency by publishing details on its website.
business leaders formed Fideicomiso Fuerza
México (FFM), which roughly translates as “Mexico Additional materials and labor donated by
Effective partnerships can solve problems that
Strong,” to spearhead reconstruction efforts. construction companies further increased the
no single institution can.
impact of reconstruction work, while FFM spent
Led by Mexico’s Economic Coordination Council,
In many of the cities where we work, business only 4 percent of its budget on administration.
a leading business group, they have collected
leaders are working with local government to
more than $23 million toward reconstruction According to FFM, more than 45,000 Mexicans
address local problems, such as infrastructure,
efforts. FFM’s founders wanted to make sure have benefited directly from its work, which
education, job creation, and poverty reduction.
that the money committed was managed will be completed by January 2020. Today, FFM
McKinsey has actively supported many of
efficiently and transparently and that it brought resources have constructed 5,200 houses, 17
these partnerships.
the greatest possible benefit to the areas with schools, and 11 health clinics. They have also
the most need. been used to rebuild four cultural heritage sites,
four community centers, and four marketplaces.

“In the face of emergency, solidarity paired

with high standards of professionalism
and transparency that instill confidence
led us to achieve remarkable objectives
to help those most in need.”
Juan Pablo Castañon
Visit FFM’s website First President, Fideicomiso Fuerza México Trust
(in Spanish)

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Civic Greater Washington

Partnership: Maintaining
partnerships competitiveness

in US cities
The Capital Region from Baltimore, Maryland, to
Richmond, Virginia, is home to 10.3 million people
and the third-largest regional economy in the
In cities across the United States, business United States. There is significant demand in the
leaders are adopting a new model of partnership growing region for technology-savvy workers—
for civic action, coming together and using their and the infrastructure to support them. Led by the
knowledge, capabilities, and resources to help area’s leading employers and entrepreneurs, the
create better communities. McKinsey’s offices Greater Washington Partnership (GWP) develops
have played roles in convening and supporting regional approaches to solving transportation
these civic partnerships in a dozen major and digital-technology-talent problems.
American cities. McKinsey’s Washington, DC, office was a founding
member of the Partnership and conducted a
landscape assessment of the region’s workforce Visit GWP’s website

and economic-mobility challenges. One study

analyzed the existing supply and forecasts of
demand for digital-capable talent, which the
Partnership has used as the basis for its action
plan—working with local education institutions—for
digital-skills training.

McKinsey also served as a key adviser in the

development of the Partnership’s Blueprint for
Regional Mobility, the region’s first CEO-led
transportation strategy that, once implemented,
has the potential to unlock key bottlenecks and
enable seamless, multimodal transportation
connections from Baltimore to Washington.

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continued
Bay Area Council:
Civic partnerships Social and economic
in US cities sustainability
If it were a country, Northern California’s San
Charlotte Executive Francisco Bay Area would be the 19th-largest
Leadership Council: economy in the world, with a gross domestic
Intergenerational mobility product (GDP) of $748 billion. Since 2010,
In 2015, a group of more than 20 CEOs came the region has added 600,000 jobs.
together to form the Charlotte Executive
This economic vitality, however, has also brought
Leadership Council to support the city’s efforts
challenges in the form of high housing costs
to improve the educational and economic
and rising homelessness. The Bay Area Council,
prospects of Charlotte’s residents. Their open,
which includes CEOs and executives from 300 of
inclusive approach was designed to reach a Visit Bay Area
Council’s website the region’s largest employers, recognizes these
broad cross-section of the community and
pressures and is part of the effort to promote
improve economic mobility, where research had
long-term economic, social, and environmental
shown the city faced challenges.
sustainability in the region.
Since its inception, the Council has been
Since 1996, McKinsey has partnered with the
supported by McKinsey’s Charlotte office.
Bay Area Council Economic Institute to examine
McKinsey colleagues have worked with the The team also worked with the Council to “It’s essential that the Bay Area the region’s economic prospects and challenges.
Council to expand its employment and skills stimulate significant investment in affordable
have the best possible analysis of The team recently worked with the Council to
programs for young people, particularly for housing. In total, $203 million in public- and
both the promise and the perils address the acute housing shortage the region
technical and vocational jobs in the fields of IT, private-sector funds have been committed to is currently facing. Their report was the first fact
customer service, and healthcare, all of which support affordable housing since May 2018. of its accelerated economy. It was
base on homelessness in the region. It is enabling
are in high demand in the city. They helped wonderful to have the opportunity stakeholders across sectors to work together to
Generation launch in Charlotte and have plans
to work in partnership alongside improve access to affordable housing.
and funding in place to expand that program
McKinsey to leverage its deep
across more industries.
resources and expertise.”
Micah Weinberg
President, Bay Area Council Economic Institute

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Responsible practices

Responsible
practices
McKinsey aspires to meet the highest professional,
legal, and ethical standards. Our values reflect the
thinking of our founder, James O. McKinsey, and
of Marvin Bower, managing director from 1950 to
1967, who was a major force in shaping the firm.
Our values inform everything we do, from our
long-term strategy to how we serve our clients
on a day-to-day basis.

In this section
Upholding the highest ethical standards 52

Ensuring data privacy and security 55

Working with our suppliers 57

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Upholding the Client selection

We have introduced a Client Service Policy to

highest ethical guide our decisions on which clients we serve

and on which topics.

standards We assess the risks of every engagement

based on factors including the country, the
McKinsey is committed to working to protect institution, the topic, individuals, and operational
human rights, upholding international labor considerations (our “CITIO framework”). Based
standards, and opposing bribery and corruption. on our risk assessment, we may apply additional
In 2018, underscoring this commitment, we measures to manage risks. We may also decide
became a participant in the UN Global Compact. to step back from specific engagements. An
enhanced set of rules govern our work for public-
We have strict policies and professional
and social-sector and state-linked clients, where
standards that apply to every member of the
these risks may be higher.
firm. Any breach of these ethical standards
is subject to comprehensive investigation,
with appropriate action taken.

Every firm member has the right to raise

concerns about values, ethics, and professional
conduct without fear of retribution. In addition to
clearly defined internal channels, we have begun

100% 100%
a phased global rollout of a hotline, which will
provide internal colleagues with a mechanism
to confidentially and, where legally permissible,
anonymously raise concerns relating to potential
violations of the firm’s policies, professional of colleagues completed an annual of our offices held Values Days—
standards, and values. program of Professional Standards one day each year set aside
learning, including ethics, anti- to reflect together on what it
corruption, and risk management means to live our values
(in 2018)

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Human rights Human rights

Our Human Rights Policy sets out these
Discrimination and harassment
Our Discrimination and Harassment Policy makes

and labor commitments, along with the responsibilities

and governance arrangements:
clear our expectation that all firm members must be
able to work in an environment free from harassment
and discrimination.
Our firm is a meritocracy. We strive to create –– McKinsey strives to adhere to the principles
a work environment that supports, inspires, set forth in the UN Global Compact, the The policy expressly prohibits:
and respects all of our colleagues, applicants, Universal Declaration of Human Rights,
–– Any form of discrimination, harassment, bullying,
and clients. and the International Labour Organization’s
or other offensive conduct toward any individual
Declaration on Fundamental Principles and
As part of this, we are committed to upholding on the basis of race, color, religion, sex, sexual
Rights at Work.
internationally proclaimed human rights and orientation, gender identity, marital status,
internationally recognized labor standards. –– This includes firm members’ ability to agree pregnancy, age, disability, national or ethnic
We stand against the use of child, forced, or to terms and conditions of employment origin, military-service status, citizenship,
exploited labor, as well as forced or exploitative voluntarily without coercion and to freely or other characteristic
working conditions. We will not assist our clients end their employment on appropriate notice.
–– Any behavior that makes the work environment
in doing so in any way.
–– The policy applies to all firm members, and all hostile, intimidating, or offensive to colleagues
firm members are responsible for their own because of any characteristic listed above
actions and for the firm’s compliance with this
–– Any form of retaliation against any individual
policy. Any firm member failing to follow this
who in good faith reports a complaint under
policy will be subject to disciplinary action,
this policy or who assists in an investigation
up to and including separation from the firm.
The policy strongly encourages reporting of
–– Our global people function is responsible
all incidents of discrimination, harassment, or
for reviewing and reporting compliance with
retaliation, regardless of the offender’s identity or
the policy to the People Committee of the
position, with clearly designated reporting channels.
Shareholders Council (our firm’s equivalent
See our UK Modern
of a board of directors) on an annual basis. Individuals who are found to be responsible for Slavery statement
harassment, discrimination, or retaliation will be
Our UK Modern Slavery Statement, a country-
subject to disciplinary action, up to and including
level statement, further demonstrates our
termination of employment of the offender.
commitment to upholding these principles.

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Anti-corruption
McKinsey opposes bribery and corruption in all Our Anti-Corruption Policy expressly prohibits
forms. We are committed to complying with the any form of bribe or kickback and provides
anti-corruption laws of all the jurisdictions in which guidelines for gifts, meals, hospitality, and other
we operate, including the US Foreign Corrupt areas of potential risk.
Practices Act (FCPA) and the UK Bribery Act. It sets out processes for reporting concerns,
Regular anti-corruption training and policy- ensures their confidentiality, and underscores
compliance certification are mandatory that all firm members have the right to raise
for all firm members as part of our annual ethical concerns without fear of retribution.
Professional Standards learning curriculum. The policy also sets out procedures for
accounting and record-keeping controls and
places responsibility for monitoring and testing
on the firm’s finance and internal audit
departments.

Any firm member failing to follow this policy

will be subject to disciplinary action, up to and
including separation from the firm, and may be
subject to proceedings brought by government
enforcement agencies.

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Ensuring data
privacy and
99%
of colleagues completed training

security courses covering data-privacy principles,

data-protection practices, and
cybersecurity behaviors in 2018
Throughout McKinsey’s history, our clients have

100%
trusted us with their confidential information;
protecting it is one of our core values.

This commitment has taken on even more

importance in the information age, where the
ability to collect and create data, particularly of colleagues received phishing
personal data, has become increasingly easy; training on a monthly basis
the value of analyzing this data has grown
increasingly powerful; and the regulatory
requirements and restrictions respecting
the processing of this data have become
increasingly complex.

We are committed to meeting the highest

standards of both data privacy and data security, In early 2019, McKinsey received a Guardians of
whether the data belongs to our clients, business Trust award, which honors leaders in information
partners, vendors, or firm members. security, recognizing our program of penetration
testing on firm and third-party applications using
crowdsourced ethical “white hat” hackers.

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continued
Data security it processes on behalf of McKinsey. In addition,
Ensuring data privacy Our information-security strategy focuses on the
our legal team ensures that all vendor agreements
and security people, processes, and technology that play a role
include appropriate representations and obligations
to respecting the protection, processing, and
in maintaining our clients’ trust and protecting
Data privacy our clients’ information by: (1) taking a risk-based
transfer of personal data.

We have implemented a global data-privacy approach to managing our digital assets, (2) having Our security operations center ensures a high level
program that builds on the requirements of the industry-leading information-security technologies of information security for McKinsey’s applications
European General Data Protection Regulation in place, and (3) ensuring our products and systems (internal and external), systems, and all related
(GDPR), currently the “gold standard” of data- are deployed with security built in. data by providing best-in-class security-incident
privacy laws. By following global best practices, we detection, analysis, containment, and mitigation.
Our objective is to implement best-in-class
meet our data-privacy legal obligations to individuals
defenses, including technical solutions,
and contractual commitments to our clients.
governance, and employee capability building. Employee training
Personal data is collected, accessed, used, and Systems and controls are designed to meet We require all employees to complete several forms
shared only on a strict need-to-know basis and only ISO/IEC 27001 standards, in combination with of data-security and -privacy training on a regular
as necessary to support the firm’s and our clients’ industry best practices. basis, including mandatory e-learning programs on
fair and lawful processing purposes. Data is deleted McKinsey’s confidentiality policies and practices.
An independent third party assesses McKinsey’s
when there is no longer a legitimate purpose for
information-security organization and its security We also have a mandatory gamified e-learning
retaining it, in accordance with applicable laws.
program every year based on the ISO 27001 module that raises awareness around data-
The data-privacy team provides firm members standard (v2013) and additional technical testing privacy principles, data-protection practices, and
with guidelines for protecting all personal data, of the McKinsey environment. cybersecurity behaviors. This simulation helps
including client data, in connection with the firm’s learners to identify high-risk situations, practice
We perform thorough assessments to evaluate
activities, such as recruiting, promotional events, taking risk-mitigating actions, and understand their
and validate the security controls in place for new
communications, and client engagements. responsibility in protecting the firm and our clients.
applications, systems, cloud environments, and
McKinsey has adopted a Global Data Protection third-party vendors. These assessments also In addition, we run monthly phishing campaigns to
and Privacy Policy that governs all client and firm confirm certain data-privacy requirements, ensuring help employees improve their ability to identify and
data-processing activities. This policy is reviewed on that each vendor applies adequate technical and handle phishing emails.
an annual basis, and all firm members are required organizational measures to protect personal data
to acknowledge the policy and confirm their
commitment to comply with the policy annually.

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Working with Supplier standards

Our sustainable procurement strategy helps us
Supplier diversity
We define “diverse suppliers” as small

our suppliers drive high standards of environmental and social

responsibility among our suppliers and more
businesses and companies owned by women,
people from minority ethnic groups, LGBTQ+
broadly across business and society. individuals, and veterans.
McKinsey holds its suppliers of goods and
services to the same high standards of social Our Supplier Code of Conduct reflects McKinsey’s While 40 percent of our US suppliers fall into
responsibility that it holds itself. We also strive values and expectations. Suppliers are required this definition, they account for just 11 percent of
to increase the diversity of our suppliers. to act ethically and with integrity. This includes our spending. This is because the majority of our
maintaining data privacy and security, embracing spending is on travel with large airlines and hotels,
inclusion and diversity, ensuring fair employment which do not to meet this definition. McKinsey is
and wages, reducing environmental impact, and actively looking at ways to increase the diversity of
providing working conditions that support safety, its suppliers.

90%
well-being, and health.

The code was finalized in 2018 and was rolled out

to our top suppliers, representing more than half of
our spending. These suppliers are in the process
of our top suppliers signed our new
of completing our certification process, which
Supplier Code of Conduct (or provided
includes a questionnaire about their environmental
similar codes governing the conduct of
and social responsibility policies and practices.
their own employees)
To date, 90 percent of these suppliers have signed

11%
the code or have their own codes of conduct that
provide similar standards. We are working to roll
out the code to all suppliers and to incorporate it
into an enhanced supplier vetting process.
of our spending is with diverse See our Supplier
Our standard contractual agreement with our Code of Conduct
suppliers (in the United States)
suppliers also sets out our expectation that
suppliers meet our standards for data privacy
and security, anti-corruption, and providing
equal employment opportunities.
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Appendix Greenhouse gas

reporting methodology
cars). When data was missing, extrapolations
were used. Scope 3 emissions are calculated
See our 2018 GHG
emissions reporting

based on mileage (air travel, ground

Our greenhouse gas (GHG) emissions are transportation), stay duration (hotels), and spend
calculated in line with the GHG Protocol, (purchased goods and outsourced activities).
covering material emission sources across
Scopes 1, 2, and 3. Scope 1 emissions include all
Market-based and
direct GHG emissions, such as emissions from
location-based reporting
combustion in owned or controlled boilers and
On page 36, we report emissions using a
vehicles; Scope 2 covers indirect GHG emissions
market-based approach. The table below
from the generation of purchased electricity,
provides an overview of our GHG footprint
heat, or steam; and Scope 3 encompasses other
using both a market- and location-based
indirect emissions, such as business travel,
approach. The market-based figures reflect
emissions from extraction of fuels and from
our procurement choices, such as renewable-
production of purchased goods, vehicles not
energy purchases via contractual mechanisms,
owned or controlled, outsourced activities, and
whereas the location-based figures reflect the
waste disposal.
average carbon intensity of the grids where our
Our methodology follows best practices, such as energy consumption occurs.
using internationally accepted conversion factors
and including radiative forcing in emission
factors for air travel. Our reporting covers all
material emission sources and complies with the
GHG emissions (thousand tCO2e)
criteria of South Pole’s Climate Neutral label.
Market-based Location-based
Our GHG footprint was independently verified
2017 2018 2017 2018
under the ISO 14064-3 standard.
Scope 1: Direct GHG emissions 15.8 15.7 15.8 15.7
Scope 1 and 2 emissions are calculated using Scope 2: Energy indirect GHG emissions 29.0 5.1 28.3 26.4
survey data covering 96 percent of our global Scope 3: Other indirect GHG emissions 735.0 766.6 735.0 769.6
office portfolio (energy consumption) and Total GHG emissions 779.8 787.5 779.1 811.7
mileage and fuel-consumption data (company Note: Figures may not sum to total, because of rounding.

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United Nations
Principle Section
Human rights 1. Businesses should support and respect the protection Upholding the highest ethical standards 52

Global Compact
of internationally proclaimed human rights; and
Working with our suppliers 57

Index 2. m
 ake sure that they are not complicit in human rights
abuses.
Upholding the highest ethical standards 52

Working with our suppliers 57

In April 2018, McKinsey became a participant in
the United Nations Global Compact (UNGC), a Labor 3. Businesses should uphold the freedom of association Upholding the highest ethical standards 52
and the effective recognition of the right to collective
set of ten principles covering the areas of human
bargaining;
rights, labor, environment, and anti-corruption.
4. the elimination of all forms of forced and compulsory Upholding the highest ethical standards 52
This report serves as our Communication on
labor;
Progress in implementing the principles of the
5. the effective abolition of child labor; and Upholding the highest ethical standards 52
UNGC and supporting broader UN goals. The
table shows where relevant content can be 6. t he elimination of discrimination in respect of Upholding the highest ethical standards 52
found in this report. employment and occupation.
Fostering diversity and inclusion 23

Environment 7. Businesses should support a precautionary approach to Managing our environmental footprint 34
environmental challenges;
Working with our suppliers 57

8. undertake initiatives to promote greater environmental Managing our environmental footprint 34

responsibility; and
Working with our suppliers 57

9. encourage the development and diffusion of Managing our environmental footprint 34

environmentally friendly technologies.
Working with our suppliers 57

Anti-corruption 10. Businesses should work against corruption in all its Upholding the highest ethical standards 52
forms, including extortion and bribery.
Working with our suppliers 57

59 McKinsey & Company Social Responsibility Report 2018

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