Responsible Business Report 2023

Interactive PDF optimised for desktop

Contents

Click text to go to page

Introduction

Message from our Senior Partner and CEO

We have continued to make progress across our Responsible Business programme, which links together our diversity & inclusion, environmental and social impact aspirations.

It also reflects our desire to retain the best talent and improve gender diversity at all levels with entitlements that outstrip many of our competitors. It’s a comprehensive policy which provides a level of support that we feel will fast become the expected norm for parents in the workplace. Finally, many of our lawyers have carried out Pro Bono work this year, including the crucial work to support Afghan and Ukrainian refugees, joining other law firms in several initiatives which are winning awards and, most importantly, making a difference to the lives of people caught up in human tragedies. We provide support to our lawyers participating in our Pro Bono programmes by allowing them to count 60 hours towards their chargeable hour targets. All our colleagues (legal and non-legal) are encouraged to participate in responsible business activities and are provided with a 24- hour allowance for non-legal volunteering. Our Responsible 60 and the 24-Hour Challenge programmes provide clarity and encouragement for our people to support worthy causes by giving time and expertise. Our clients (and indeed all of us) operate in a hugely uncertain and volatile world and we believe that in this context, staying true to the principles of the UN Global Compact framework, of which we are a signatory, and maintaining our unwavering commitment to operating as a responsible business, is as crucial now as it ever was.

The two standout areas of progress involve the setting of market leading and ambitious SBTi (Science Based Targets) and near-term Net Zero commitments, and the launch of a significantly enhanced, globally consistent parental leave policy. Our Net Zero targets are bold because we want to ensure that rather than simply complying, we are industry leading, for the benefits that brings to the environment but also so that we can meet our people’s expectations and those of our clients. To continue to advise clients on the broad range of climate change-related risks they face, we believe that it is important to have strong Environmental, Social & Governance (ESG) credentials ourselves. This has led to changes in how we operate our business, manage our premises and our supply chain – where most of our emissions reside. As a result of setting these targets, we were able to negotiate an innovative Sustainability Linked Credit Facility (SLCF) with Barclays Bank which further incentivises us to reach our goals. We know our people want to see us set rigorous ESG standards that go beyond climate change. That’s why we introduced a bold parental leave policy. Gender-blind and offering 26 weeks’ full pay to new parents in any of our global offices, this forms part of our commitment to building an industry-leading culture that’s responsive to rapid social change.

Carolena Gordon Senior Partner +1 514 764 3664 carolena.gordon@clydeco.ca

Matthew Kelsall Chief Executive Officer +44 (0) 20 7876 5000 matthew.kelsall@clydeco.com

Introduction

Our 2023 global highlights

Our gender diversity across the firm *

Our performance

Our global reach

67 Offices *

26 Countries

27%

73%

Partners

Annual revenue growth £ 138.8m

Total fee income £ 788.6m + 5.7% organic growth

* including associated offices

59%

41%

9 New Offices*

1 New Associated office**

Fee earners

54%

46%

Revenue from outside the UK £425m + 15% on prior year

Total staff (inc. partners)

*Bangkok, Boston, Calgary, Milan; BLM offices: Belfast, Birmingham, Derry/Londonderry,Liverpool, Southampton, **Cairo; Strengthened ties in Santiago and Nairobi

Male Female

*Data as of 1 May 2023

Ethnic Diversity UK and US *

Revenue by region

Our people & culture

15.3 LatAm (9%)

100.0 APAC (7%)

4% All partners (incl. Salaried partners)

16% Total workforce

5500 Total staff

93.3 MEA (18%)

Revenue by region £, millions % YOY Growth

Lateral hires

363.6 UK (28%)

Partner promotions

3200 Legal professionals inc. 490 Partners

171.7 North America (21%)

44.7 Europe (18%)

Partner joining from BLM merger

*UK and US data as of 1 May 2023 % (from rounded figures)

Introduction

Awards, accolades, achievements & initiatives

Firm-wide initiatives

• Launched globally-consistent parental leave offering to all employees and partners with 12 months’ service, including access to 26 weeks fully paid leave, regardless of gender or parental role • Set Net Zero commitment to reduce our Scope 1 & 2 emissions by 80% by 2030 and our Scope 3 emissions by 50% by 2030 • Launched global Clyde & Co Cares campaign donating over 100,000 meals, more than double our target, to our charity partners • Award winning Afghan Pro Bono Initiative and Ukraine Advice Project have included collaboration with NGOs and other law firms to help refugees apply for resettlement

Awards

Accolades

Rankings

• The Times Best Law Firms 2023:

• Susie Abdel-Nabi, Stuart Miller, Richard Moody, Peter Macara, Thomas van der Wijngaart and Rob Wilson recognised by International Lexology 2022 Client Choice Awards • Eugene Tan awarded Lawyer of the Year, Legal 500 Southeast Asia and recognised as Litigation Star for Construction, Benchmark Litigation Asia Pacific 2023

• 80+ Band 1 practice rankings globally across Chambers and Legal 500

– Recognised as top three firm in England and Scotland for Insurance and Professional Negligence • External Advisor of the Year for our Insurance Regulatory & Investigations team awarded at Axco Global Insurance Award

• 40+ lawyers ranked as Star or Band 1 globally in Chambers

• 140 lawyers ranked as Leading Individuals or in the Hall of Fame globally in Legal 500 • 100+ lawyers recognised as Rising Stars, Up and Comers and Next Generation Partners globally across Chambers and Legal 500

• Achieved Mansfield Rule certification in the US and the UK

• Singapore Best Law Firms 2023 , The Straits Times

• Simon McConnell listed in Insurance Business Global 100 ranking, 2023

• Ranked in the top 75 employers Social Mobility Employer Index for the second time, at number 58

• Middle East International Law Firm of the Year , Chambers Middle East Awards 2023

• Our new Paralegal Academy was launched, the first of its kind as an alternative route into law

• Recognised as one of Canada’s Best Law Firms in Insurance by the Globe and Mail in 2023

• Launched Cyber One our new end-to-end international offering to help organisations manage and respond to cyber risk • Relaunched our online casualty innovation platform Clyde & Co Newton , a suite of innovative products to help insurers speed up casualty insurance claims handling

Introduction

Our global office network

Glasgow

Newcastle Aberdeen Edinburgh Manchester Birmingham London

Derry

Belfast Dublin

Liverpool

Guildford

Hamburg

Bristol

Munich

Southampton

Toronto Montréal

Kansas City

Düsseldorf

Chicago

Vancouver Calgary

Paris

Ulaanbaatar

Milan Madrid

Las Vegas

Boston

Orange County Phoenix Los Angeles San Francisco

Beijing

New York New Jersey Washington, DC Atlanta Miami

Cairo

Shanghai

Hong Kong Chongqing

Dallas

Denver

Abu Dhabi Dubai

Bangkok

Riyadh Doha

New Delhi

Mexico City

Caracas

Kuala Lumpur Singapore

Nairobi

Dar es Salaam

Rio de Janeiro

São Paulo

Brisbane

Johannesburg

Perth

Cape Town

Sydney

Santiago

Melbourne

Clyde & Co offices Associated offices

Introduction

Our Responsible Business Strategy

The Management Board monitor and oversee the execution of the strategy through global partner led steering committees for each of the three pillars. Each steering committee has the delegated authority of our Management Board to embed the strategies within each of our regions and to be responsible for delivery of the strategies. The steering committees monitor and report progress of each of the Regional Boards to the Management Board on a bi-annual basis. Given its broad impact and importance across the firm, it is treated as a cross-services initiative with key members of the firm’s senior management team involved in the steering committees alongside our partners. Each steering committee consists of several partners representing each of our regional teams together with a Management Board partner representative, a senior management representative (CEO or COO) and, respectively, our Head of Diversity & Inclusion, Head of Pro Bono & Social Impact, and Chief Sustainability Officer.

We are a dynamic, rapidly expanding global law firm committed to operating as a responsible business. This means progressing towards a diverse and inclusive workforce that reflects the diversity of our communities and clients, using our legal skills to support our communities through Pro Bono work, volunteering and charitable partnerships in the areas where we live and work, and managing and reducing our environmental impact. As a people business, we are committed to valuing everyone who works here, treating them as individuals and helping them flourish so they can fulfil their potential. The key areas of our Responsible Business Strategy are represented by the following three pillars: • Diversity & Inclusion

• Environmental Sustainability & Biodiversity

• Pro Bono & Social Impact

Introduction

Our alignment to the Sustainable Development Goals

End poverty in all its forms everywhere

Ensure healthy lives and promote well-being for all at all ages

Achieve gender equality and empower all women and girls

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Ensure availability and sustainable management of water and sanitation for all

Clyde & Co signed the UN Global Compact in 2018. We have committed to embrace, support and enact, within our sphere of influence, the core values in the areas of human rights, labour standards, the environment and anti- corruption. These core values make up the Ten Principles of the UN Global Compact. The Ten Principles provide a framework that helps businesses to understand how to operate, and the Sustainable Development Goals (SDGs) are an ambitious vision of what a business’s activities should work to achieve by 2030. In our Responsible Business Report for 2023 we share selected highlights of the activities undertaken to provide insight into our efforts to help achieve the SDG’s. Our Responsible Business Strategy aligns closely with 14 out of the 17 SDGs shown in bold.

Ensure access to affordable, reliable, sustainable and modern energy for all

Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

Make cities and human settlements inclusive, safe, resilient and sustainable

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Reduce inequality within and among countries

Ensure sustainable consumption and production patterns

Take urgent action to combat climate change and its impacts

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development

Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Introduction

Our business

Human rights and labour standards

We are an Accredited Living Wage Employer, meaning we have committed to pay all our employees a fair living wage. This commitment is also extended to contractors of the firm. We collect, report and publish data about the diversity make-up of our workforce in the UK, this information is publicly available through our website. We deliver training on ethics and integrity for all employees throughout our global network. We have implemented mandatory sustainability training for all members of our global procurement team in collaboration with AXA Climate School. Key individuals complete modern slavery training globally that we have identified as dealing with any aspect of procurement on behalf of Clyde & Co. We have implemented mandatory training on diversity and equality for all UK employees. This course addresses issues such as discrimination, unconscious bias, and harassment.

We are committed to ensuring that there is no modern slavery in our business or in our supply chains, and to acting ethically and with integrity in all our relationships. As such, we expect third party contractors and suppliers to comply with all applicable laws, statutes, regulations, and codes relating to labour, anti-slavery and human trafficking laws, including the Modern Slavery Act. Our people We apply the highest possible standards in the recruitment and employment of our people. We conduct due diligence on our prospective employees prior to them joining Clyde & Co. When recruiting, we comply with all local employment legislation and any applicable regulations. All our people are expected to comply with relevant laws and professional codes of conduct, as well as Clyde & Co’s internal Modern Slavery policy and other policies and procedures.

Introduction

Our suppliers

on our clients’ behalf are also in compliance with anti-bribery and corruption legislation, and that they have effective policies and procedures in place that are at least of the same standard as our own. We provide comprehensive information on the ABC policy and the Bribery Act on our Intranet. Our Risk team is always on hand to help with employee questions. We deliver training on financial crime, anti-money laundering and sanctions to employees in the UK, Europe, Asia Pacific, South Africa, and the Middle East, and provide supplementary video recordings to employees. We have a structured approach to delivering additional periodic training across our global network. Our whistleblowing policy ensures that no-one suffers any detriment because of reporting any breaches or suspected breaches of our anti-bribery policy. We aim to encourage openness and we will support anyone who raises concerns.

have a database of our first-tier suppliers to maximise co-ordination and control. We have moved suppliers onto a form of contract that requires them to comply with all local, national and (where applicable) international laws and regulations. We hold regular service reviews with tier one suppliers. We perform vetting and due diligence on new suppliers via our new third-party risk management solution Prevalent. This solution is used to screen prospective suppliers on a range of issues, including anti-bribery and corruption, modern slavery, and sustainability. Anti-bribery and corruption Clyde & Co is committed to conducting business fairly, honestly, and openly. We take a zero-tolerance approach towards bribery and corruption, and we act professionally and with integrity in all our business activities and relationships worldwide. In compliance with our antibribery and corruption (“ABC”) policy, we must ensure that people acting on our, or

Clyde & Co has long-term relationships with many of the businesses it engages to run its premises, such as catering and cleaning providers. We have a dedicated procurement team that collaborates closely with these suppliers to make sure that we do not make demands of them that may lead them to violating laws. We have a Code of Ethics, to ensure that our supplier relationships are based on professional, ethical, and transparent behaviour. We have introduced this year a Sustainable Procurement Policy which recognises that our procurement of goods and services has the potential to impact the environment, society, and economy. We are committed to operating sustainable procurement practices that uphold our values and contribute to a more sustainable future. Most of our suppliers are based in the UK and supply standard goods or services. We

02 Diversity & Inclusion

Diversity & Inclusion

Our approach & impact

Diversity & Inclusion

As part of our ongoing efforts to promote diversity in leadership roles, we have made a commitment to implement the Mansfield Rule in our US and UK offices. This rule, administered by Diversity Lab, encourages participating law firms to consider a minimum of 30% underrepresented candidates for lateral hiring, senior leadership positions, and business development initiatives. We take great pride in having again obtained Mansfield certification in the US and Mansfield Plus certification in the UK.

Celebrating difference has become one of the four key values at Clyde & Co (Annex 1), highlighting the significance we place on diversity and inclusion across the firm. We continue to make sustainable and meaningful progress by investing in enhancing diversity and acting inclusively. Following the creation of the Global Diversity & Inclusion Steering Committee, we have continued to evolve our strategic priorities and we also introduced ambitious goals to hold ourselves accountable. Our goals are designed to increase female representation in our partnership, in key leadership positions and on decision-making bodies.

Global female representation as of June 2021

Global female representation as of May 2023

Global goal

25% by 2025 30% by 2023 35% by 2025 40% by 2027

Senior Equity Partner

19%

19.8%

Equity Partner

29%

37.1%

Legal Director

43%

49.4%

50% by 2023

Diversity & Inclusion

Inclusion Networks

Our networks include:

• GECCO (Gender Equality at Clyde & Co) network focused on advancing gender equity • ACED (Achieving Cultural & Ethnic Diversity) network focused on cultural and ethnic diversity • Pryde & Co network focused on inclusion of LGBT+ colleagues and their allies • Our Enable network is a forum for our people who are interested and passionate about increasing accessibility • PACT (Parent and Carers Together) provides a forum for our people who are interested and passionate about promoting a balanced work- life and supporting the needs of colleagues with caring responsibilities

Our Inclusion Networks are colleague resource groups and provide a platform for people around the firm to identify the areas where they can drive change and help to advance the diversity agenda. Our Inclusion Networks continue to be critical change agents helping to advance our inclusive culture while also contributing to our celebration and awareness raising campaigns to mark dates such as International Women’s Day, Black History Month, Pride Month and others throughout the year.

Diversity & Inclusion

Clyde & Co’s new parental leave policy enabled me to spend a significant period of quality time with my daughter at a really important time in her development. I now have a closer relationship with her than I would have had if I hadn’t been able to spend that time with her. As a family, now that my wife, who is also a solicitor, and I are both back at work and our daughter is in nursery, the policy has helped to ensure that we split things like nursery drop-offs and pick-ups and bedtimes equally between us, which probably wouldn’t have been the case if I had just

Family Leave Offering

Further elements of the offering include:

• Ten days fully paid leave for fertility treatment • Four weeks fully paid (before 20 weeks pregnancy) pregnancy loss leave for women or anyone suffering a pregnancy loss directly and up to 26 weeks’ paid leave after 20 weeks pregnancy for all, regardless of gender • Up to 12 additional weeks’ paid leave for parents with children in neonatal care • Consistent access to back-up childcare provision and five days emergency leave a year • Parental transition coaching and parental leave sponsors for fee earners Employees were also entitled to retrospective eligibility for those already on, or who had recently returned, from parental leave. We have seen 33% of women and 37% of men who are eligible for the retrospective leave take it up.

In May 2023 we launched a globally consistent parental leave offering available to all employees and partners across the firm following 12 months’ service. The offering includes access to 26 weeks fully paid leave, except where local legislation allows for more, regardless of gender or parental role. The policy replaces previous maternity and paternity leave entitlements to provide a consistent, cohesive offering to all. In addition, the offering seeks to provide our colleagues with greater, more inclusive support when they become parents, more effective support as they transition back to work and consistent support as they balance ongoing work and family care.

had two weeks of leave when she was born. It is great that Clyde & Co has taken a lead in this area and hopefully other firms will follow suit.

Chris Kerr Legal Director, UK

Credit: Chris Kerr

Diversity & Inclusion

10,000 Interns Foundation

Anne-emmanuelle Kouadio Diversity, Equity and Inclusion Coordinator

In Summer 2022 Clyde & Co welcomed five summer interns in our London office for eight weeks as part of the 10,000 Black Interns Programme, which aims to tackle the underrepresentation of Black heritage talent. This year, Clyde & Co doubled the intake and welcomed ten interns from this programme. Rebecca Ajulu-Bushell, CEO of the 10,000 Interns Foundation, says: We are sincerely grateful to Clyde & Co for their enthusiasm, warmth and desire to improve their involvement in our access programmes year on year. Clyde & Co have embraced our mission as active and committed members and have provided a wealth of meaningful internship experiences for our interns. We want to change the face of British business to reflect all talent and provide genuine access to opportunities for our interns to consider paths that might otherwise not be explored. We know that talent is everywhere, and we want to challenge people to understand that talent can look or feel different and come in different moulds. Companies that embrace this fact will triumph. We are dedicatedly impact-focused and are continually reassessing how our programmes can be best aligned with the internal priorities of our members to align and maximise outcomes for our interns. Conversations with Clyde & Co have helped to shape our recently launched Corporate Membership Scheme. We're so excited to see what we can continue building together in 2023/24.

Anne-emmanualle Kouadio is one of the interns from the summer 2023 programme and has joined the Diversity & Inclusion team at Clyde & Co as part of her placement year from university.

Anne-emmanualle says: I got involved with 10,000 Black Interns as I was deeply moved by the initiative which supported and addressed underrepresentation of Black talent in various sectors and this programme allowed them to enter spaces which might’ve proven difficult in the past. Being a Black student myself, I strongly resonated with their aim and having taken part in this extraordinary programme I believe this has been a transformative and valuable experience both personally and professionally. It has not only opened doors for me but empowered me with a network of peers, mentors and individuals who champion diversity and inclusion and has instilled in me a sense of purpose and resolve. 10,000 Black Interns has been a catalyst to fostering personal growth and driving my dedication to creating a more equitable future

for Black individuals in the workforce. Through my association with the 10,000 Black Interns, I was able to join Clyde & Co where I embarked on a series of projects that has influenced my professional Journey. In one specific project my primary focus revolved around an in-depth analysis of ethnic diversity data both within and outside the organisation. This aimed to establish clear benchmarks for enhancing the firm's Diversity & Inclusion objectives, presenting the firm's commitment to driving positive change. This experience has not only allowed me to contribute meaningfully to the firm's diversity goals but has also deepened my understanding of the critical role diversity plays in today's corporate environment.

Diversity & Inclusion

Australian Reconciliation Action Plan

North America Women’s Initiative

We take seriously our responsibility to take meaningful action towards reconciliation with Aboriginal and Torres Strait Islander peoples and communities. Our RAP provides practical actions that drive our contribution to reconciliation both internally and in the communities in which we operate. As a leading global provider of legal services, we have a responsibility to use our skills and resources to make a meaningful contribution towards reconciliation, in particular through our Pro Bono matters. It includes commitment to action on a number of fronts, including better policies to recruit and support Aboriginal and Torres Strait Islander employees and supporting Aboriginal and Torres Strait Islander businesses through procurement activities. We are committed to the implementation of the deliverables in our Reflect RAP and to our Firm’s continuous improvement as a part of our reconciliation journey.

In May 2023, the Australian Firm proudly launched its inaugural Reconciliation Action Plan (RAP), a Reflect RAP, as part of National Reconciliation Week. Our Reflect RAP lays the foundations for our reconciliation initiatives and provides a strong platform for our collaboration with Aboriginal and Torres Strait Islander peoples, organisations, and communities to further the cause of reconciliation. Since 2006, RAPs have enabled organisations to sustainably and strategically take meaningful action to advance reconciliation. Based around the core pillars of relationships, respect and opportunities, RAPs provide tangible and substantive benefits for Aboriginal and Torres Strait Islander peoples, increasing economic equity for supporting First Nations self-determination. Facilitation of our RAP is steered by our RAP Working Group (RWG), comprising partners and staff from across our Australian offices. We have created individual working groups within the RWG that focus on the three core pillars of our RAP, to provide a solid foundation on which we can build and exceed the commitments in our RAP.

Founded in 2018, the North American Women's Initiative (NAWI) is an Employee Resource Group (ERG) dedicated to attracting, promoting, and supporting female attorneys through business development initiatives and internal and external programming. The initiative provides external opportunities for women to expand their reach and build their brand. For the more than 130 female lawyers in North America at Clyde & Co, the Initiative is committed to celebrating their achievements and providing the necessary support and empowerment for their, and the Firm's, continued success. It aims to achieve this by increasing participant’s understanding of: • Business development opportunities available to utilise along with what good business development activity looks like (not a one size fits all) • The necessary elements for career progression at Clyde & Co, along with the various resources available to our female lawyers to help them define and achieve success • The type of work our female lawyers do throughout the North American region in order to continue to support one another's practices An annual survey follows each cycle to evaluate and measure the success of the initiative.

Diversity & Inclusion

Our diversity demographic data

Count Me In campaign

By the end of the UK campaign, we obtained an average of 12% increase in completion across all our demographic questions, equivalent to an increase of over 6000 data points (see Annex 3 for a breakdown of the diversity demographic data for the UK). Currently, our demographic data varies per region and as we continue to roll out the campaign across the rest of the firm, we will look to improve not just the response rates but the type of demographic data we collect, taking into consideration local requirements around the collection and processing of this type of data.

Ensuring that our Firm appropriately reflects society is important to Clyde & Co, and understanding our workforce demographics is, undoubtably, one of the critical first steps in further developing a diverse and inclusive workplace. The monitoring and use of information about the diversity of our workforce can assist us with this goal. In summer 2023 we launched the Count Me In campaign which is focused on increasing the self-ID demographic data of our colleagues. We began the campaign in the UK this year to support one of our regulatory requirements to submit the diversity of our workforce to the Solicitors Regulation Authority.

Diversity & Inclusion

Gender

Female representation in senior roles between 1 May 2019 – 1 May 2023

The following graph shows how female representation in our three most senior roles categories has changed over the last five years. As of 1 May 2023, we have exceeded expectations in meeting our global target of a 35% representation of female Equity Partners and Equivalents by 2025, specifically hitting this target in the UK and Europe regions. We are also on a positive track to meet our next target of 40% female representation by 2027. Furthermore, we have met our Legal Director female representation targets in most regions, namely APAC, Europe and the UK. Globally, we are 1% away from meeting our 50% target. Naturally, we are focused on progressing the remaining regions towards the same representation targets. Similarly, we are indeed conscious that we have further progress to make in respect of Senior Equity Partner female representation, to meet our target of 25% representation by 2025. Please see Annex 2 for a breakdown of our female representation by region.

49%

48%

46%

37%

34%

31%

29%

27%

20%

19%

17%

2021

2020

2023

2022

2019

2021

Legal Directors and Counsel

Equity Partners, Salaried Partner & Equiv

Senior Equity Partners

Before D&I strategy

After D&I strategy

Diversity & Inclusion

Ethnicity

We currently report on our ethnicity data in the UK and the US only.

US Ethnicity data (as of 1 May 2023)

Mixed or multiple ethnic groups

Hispanic or Latino

Role group

Asian

Black

Other

White

Cannot be provided Cannot be provided Cannot be provided

79%

Fee earners

Business Services

14% 12%

65%

8% 9% 3%

73%

Total

UK Ethnicity data (as of 1 May 2023)

Mixed or multiple ethnic groups

Prefer Not to Say Cannot be provided

Role group

Arab

Asian

Black

Other

White

8% 1% 2% 1% 87%

Fee earners

Business Services

Cannot be provided

9% 4% 3%

83% 1%

<1% 8% 3% 2% 1% 85% 1%

Total

Response rate: 81%

Diversity & Inclusion

Looking forward

Action and impact will remain at the heart of our approach ensuring we continue to move at pace. Throughout 2024 we will continue to invest in programmes and projects which tackle key issues. In particular, we will focus on talent development programmes and community outreach initiatives aimed at building the most inclusive Firm which harnesses the diversity of our people.

As we move into 2024, our commitment to achieving our goals remains steadfast, while recognising the need to adapt to the ever-changing environment. Building upon the successes of the Count Me In campaign, we are dedicated to building our global data capability, empowering our Firm to make informed decisions. To ensure our progress is both measurable and meaningful, we will continue to monitor our performance. This entails robustly tracking our internal key metrics, while also benchmarking ourselves against industry standards. By doing so, we can hold ourselves accountable, ensuring that our efforts are not only aligned with our strategic objectives but also meeting and exceeding expectations.

Diversity & Inclusion

Affiliations & accreditations

In 2022, Clyde & Co was placed in the top 75 of employers in the Social Mobility Employer Index, ranked at number 58 . The Social Mobility Employer Index is the leading authority on employer-led social mobility schemes. It assesses and ranks the UK employers on the actions that they take to ensure they are open to talent from all social backgrounds.

Clyde & Co joined the Rare Race Fairness Commitment , which involves implementing a range of measures aimed at combating the career obstacles faced by black and other ethnic minority lawyers.

Clyde & Co joined the recently formed Legal CORE , a cross-firm collective aimed at tackling the underrepresentation of Black, Asian and minority ethnic groups in the legal sector.

Clyde & Co has been recognised by Insurance Business Australia as one of 19 companies to achieve the 5-Star Excellence Award for Diversity, Equity and Inclusion . The awards showcase companies in the insurance sector in Australia and New Zealand with the most effective DE&I programmes that are helping to foster change.

Clyde & Co adopted The Halo Code , the UK’s first Black hair code, which protects employees who come to work with natural hair and protective hairstyles associated with their racial, ethnic, and cultural identities.

Clyde & Co is also proud to have been recognised as Highly Commended for Culture and Diversity at this year's Partnership Bulletin Awards. The award recognised key initiatives and focuses, including Responsible 60 which enables fee-earners to engage with diversity and inclusion activities and have up to 60 hours of their time count toward billable targets. Clyde & Co similarly introduced the 24-Hour Challenge for non-lawyers.

Clyde & Co are signatories of the Mindful Business Charter , joining a range of businesses and professional service firms around the world in a collective commitment to address the avoidable stresses in our working practices and to promote healthier and more effective ways of working.

Together, these affiliations and accreditations reflect our unwavering dedication to fostering a diverse and inclusive environment, where every individual is valued, supported, and given equal opportunities to thrive.

03 Environmental Sustainability & Biodiversity

Environmental Sustainability & Biodiversity

Our approach & impact

Our programme encompasses:

Clyde & Co is committed to reducing our carbon emissions and limiting our wider environmental impact. We have set industry-leading near- term Science-Based targets to more than halve our emissions by 2030 and are committed to achieving Net Zero on or before 2040. We have established a clear time-phased roadmap to deliver on this commitment. Under our Environmental Sustainability & Biodiversity pillar we have proactively taken a leadership role in advancing the agenda both in, and in relation to, the legal sector. We are committed to operating our business in a responsible and sustainable manner and acting as an exemplar to the industry at large by demonstrating high ambition, high transparency and by contributing to thought leadership.

While nature has considerable resilience, there is a limit to how far that resilience can be stretched. No one knows how close to the limit we are getting. The darker it gets, the faster we're driving.

• governance and policy

• ambitious Net Zero commitments and the initiatives to deliver upon those commitments • transparent reporting, and disclosure, both mandatory and voluntary, and • leadership through our participation in relevant industry bodies

Douglas Adams, Last Chance to See

Environmental Sustainability & Biodiversity

Governance and policy

Our Environmental Sustainability & Biodiversity policy outlines our global priorities and approach, including our year-on-year carbon reduction targets, key impacts, KPIs and reporting, and principal decarbonisation initiatives, alongside our expectations of the role of our clients, people, and suppliers. In the last year we have created a dedicated Environmental Sustainability & Biodiversity team through the appointment of our first Chief Sustainability Officer and the recruitment of a Sustainability Manager. We expect to announce the appointment of a Sustainability Reporting and Compliance Manager in October 2023.

The Management Board monitors and oversees the execution of our Net Zero strategy. The Management Board delegates day-to-day responsibility to our partner led Environmental Sustainability & Biodiversity Steering Committee for: • embedding our Net Zero strategy throughout the firm, delivering on the strategy, and ensuring there is the investment required to do so • mitigating and managing climate-related risks and capturing climate-related opportunities, developing regional and global programmes • developing a rigorous engagement programme with suppliers and clients to address climate-related risks and opportunities in the value chain

• building the climate resilience of our Firm

Environmental Sustainability & Biodiversity

Ambitious Net Zero commitments

Our total footprint for 2019 was approximately 110,000 tonnes CO2e, which can be broken down into: • 4% Scope 1 & 2 emissions, encompassing energy use in our offices, and • 96% Scope 3, primarily business travel and emissions from purchased goods & services In January 2023 , our near-term Science Based Target was approved by the SBTi. This commits us to: • Reducing our Scope 1 & 2 emissions by 80% by 2030 against our 2019 baseline, and • Reducing our Scope 3 emissions by 50% in the same timeframe We plan to submit our long-term target for validation by the SBTi by the end of 2023. This target will deliver a 90% reduction in our emissions on or before 2040 with any residual emissions offset. This would qualify to be a Net Zero strategy approved by the SBTi.

The Science Based Targets initiative (SBTi) is a collaboration between CDP (formerly known as the Carbon Disclosure Project), the United Nations Global Compact (UNGC), World Resources Institute (WRI), and the Worldwide Fund for Nature (WWF). The SBTi defines and promotes best practice in science-based target setting, and independently assesses and approves companies’ targets. A greenhouse gas emissions target can be considered ‘science- based’ if the emissions reductions it requires are in line with keeping the global temperature increase at or below 1.5°C compared to preindustrial temperatures by mid-century (2050). Clyde & Co worked with Carbon Intelligence (now an Accenture company) to determine our baseline carbon footprint. The calendar year 2019 was taken as our baseline year, representing the final year of “business as usual” before the onset of the global COVID pandemic.

Cragg Estate, Northumberland, north-east England; Credit: Donnington Hospital Trust

Environmental Sustainability & Biodiversity

Carbon footprint reduction initiatives

Sustainability initiatives

There are three broad areas of decarbonisation that we are focusing on to deliver our Net Zero strategy: 1. Maintaining a low carbon and resilient supply chain : we are working to reduce the impact of our purchased goods and services by rationalising our global supply chain, supporting our suppliers

Our sustainability initiatives can be grouped into three categories, aimed at:

• reducing our carbon footprint

• addressing wider environmental impacts and

to measure and reduce their emissions, and incorporating sustainability requirements into procurement and due diligence processes.

• offsetting carbon through avoidance or removal projects

2. Using sustainable business travel : in August 2023 the Management Board approved the adoption of a global Guidance Note on Sustainable Travel. This guidance will be incorporated into the development of regional travel policies, emphasising the need to be smarter with travel choices. We are working with our Travel Management Companies globally to improve data collection and to prioritise sustainability over cost. 3. Operating energy efficient and low-carbon workplaces : we are working to transition away from the direct consumption of fossil fuels in our offices. As of May 2023, our UK offices run on 100% renewable electricity, and we will seek to replicate this across our global office portfolio. Where this is not possible, we will purchase Energy Attribute Certificates. Separately, we are commencing a global energy opportunity assessment programme aimed at reducing energy use in all our offices.

We often talk of saving the planet, but the truth is that we must do these things to save ourselves. With or without us, the wild will return.

David Attenborough

Environmental Sustainability & Biodiversity

Wider environmental initiatives

Sustainability champions In late 2023 we will be establishing a global Sustainability Champions network, to enable our people across the firm with knowledge or enthusiasm around sustainability to support our work and undertake locally and regionally appropriate projects. Waste & recycling As part of our internal engagement programmes, we are working to develop bespoke waste minimisation and recycling projects in each office. We are developing a Sustainable Consumption Policy to directly address the sourcing and use of consumable products across the organisation. Throughout 2024 we will be putting in place methodologies to capture waste metrics more effectively, allowing us to set quantitative waste reduction and recycling targets. Biodiversity & nature loss We are a member TNFD Forum a consultative grouping of institutional supporters who share the vision and mission of the Taskforce for Nature- related Financial Disclosures (TNFD) and make themselves available to contribute to the work and mission of the Taskforce. The recommendations of the TNFD launched on 18 September 2023.

We intend to incorporate TNFD disclosures alongside our Taskforce for Climate-related Financial Disclosures (TCFD) in our next reporting cycle. We have undertaken several biodiversity projects, including the installation of beehives on the roof of our London office, holding a series of clean-up activities across the UK and Europe, and the establishment of a forestry project in Northumberland in north-east England. We continue to develop our understanding of the impact of our business on biodiversity and nature. Climate awareness training In 2023 we ran a global climate awareness campaign for all our people which commenced on Earth Day, 22 April though to World Environment Day, 5 June. The campaign consisted of AXA Climate Brief videos explaining climate-related terminology and weekly blogs and digests on key challenges such as single use plastics, and how we could all change our behaviours so as to reduce negative impacts and make a difference. We are now developing structured and bespoke training for our people across all practice groups and business services, to equip all our people with the knowledge and skills they need to support our internal sustainability journey as well as those of our clients.

Environmental Sustainability & Biodiversity

Cragg Estate, Northumberland, north-east England; Credit: Donnington Hospital Trust

Climate change is here. It is terrifying. And it is just the beginning. The era of global boiling has arrived…It is still possible to limit global temperature rise to 1.5°C and avoid the very worst of climate change. But only with dramatic, immediate climate action.

Reporting and disclosure

Carbon offset initiatives

We undertake mandatory disclosures in the jurisdictions in which we operate, including the Streamlined Energy & Carbon Reporting (SECR) and Energy Savings Opportunities Scheme (ESOS) in the UK and globally under the Taskforce for Climate-related Financial Disclosures (TCFD) . In the next reporting cycle, we will be undertaking additional disclosures under the European Union’s Corporate Sustainability Directive (CSRD). In addition, we undertake voluntary disclosures including EcoVadis Assessment, CDP (Carbon Disclosure Project) and the United Nations Global Compact. In the next reporting cycle, we will be undertaking additional disclosures under the Taskforce for Nature-related Financial Disclosures (TNFD).

In early 2023 we established the Clyde & Co Community Forest on the Cragg Estate in Northumberland, north-east England. Approximately one-hour drive from Newcastle, England, 6.2 hectares of woodland were planted with tree species carefully chosen to reflect those native to the area and enrich local biodiversity. This project aims to support organisations achieve their environmental goals, while restoring and protecting the Red Squirrel ecosystem zone. We have been working with Accenture to develop a strategy for carbon offsetting. Removal of our residual emissions from 2040 will be a provision of becoming Net Zero; as such, we are establishing the best way forward to develop a portfolio of projects that will enable us to meet this commitment while maximising the positive social and economic benefits. More details will be available in our Transition Plan which we plan to finalise and publish in the next year.

UN Secretary General, António Guterres

Environmental Sustainability & Biodiversity

Looking forward

We have already noted a number of actions which will take place in the next year under our various initiatives. Our industry-leading Climate Change Risk team continues to develop its offering, helping clients to understand their risks regarding climate change, prepare their business for future risks, and evolve in a way to capitalise on the opportunities created by the transition to a low carbon economy. Last year we launched our new “Net Zero Legal Audit” product which undertakes a comprehensive audit of our clients’ Net Zero statements, plans and emissions reduction activities to identify key areas of risk, and provide mitigation strategies and solutions. Last year we negotiated, and completed, a Sustainability Linked Credit Facility (SLCF) with Barclays Bank plc to replace a pre-existing traditional interest-based credit facility. We understand we are the first large firm to enter an SLCF in the legal sector, and we intend to supplement this next year with further replacement of our existing traditional credit facilities with sustainability linked credit facilities. We are delighted that our people around the world are becoming more environmentally conscious every day and taking action. We will continue to encourage local initiatives to tackle issues. We will implement longer term changes that will continue to reduce our impact on the environment.

Environmental Sustainability & Biodiversity

Affiliations & certifications

We are members of the Law Firm Sustainability Network (LSFN) , a non-profit organisation of US law firms and legal departments committed to promoting the benefits of environmental sustainability and corporate social responsibility within their firms and throughout the US legal sector.

We are a founding member, and currently the only law firm member, of the Coalition for Climate Resilient Investment (CCRI) . The CCRI is the first of its kind. Launched at the UN Climate Action Summit in 2019 as a private sector-led initiative, the CCRI have supported investors and policy makers to better understand and manage physical climate risks.

We are a member of the Insurance Development Forum . The IDF is a public/private partnership led by the insurance industry and supported by international organisations. The IDF was announced at the United Nations Conference of the Parties (COP21) Paris Climate summit in 2015 and was officially launched by leaders of the United Nations, the World Bank, and the insurance industry in 2016. The IDF aims to optimise and extend the use of insurance and its related risk management capabilities to build greater resilience and protection for people, communities, businesses, and public institutions that are vulnerable to disasters and their associated economic shocks.

We are an executive member of the Legal Sustainability Alliance (LSA) , an inclusive movement of UK law firms and associated networks, working together to take action to improve the environmental sustainability of their organisation.

We are members of the Australian Legal Sector Alliance (AusLSA) , an industry-led association in Australia working collaboratively to promote best practice sustainability commitments and performance across the legal sector.

We are a founding member of the Legal Charter 1.5 , a high ambition initiative – developed collaboratively – by a group of large private practice law firms, to shift thinking, and drive transformational change to mitigate the climate crisis.

We are signatories to the British Property Federation (BPF) Net Zero Pledge , an initiative designed to assist all BPF members decarbonise by 2050 at the very latest and to accelerate the transition to a Net Zero built environment.

We are a founding member of the Net Zero Lawyers Alliance (NZLA), an industry-led group of leading law firms, to accelerate the transition to Net Zero emissions by 2050 for all clients, suppliers, and other legal professionals.

We are signatories to the UK Legal Renewables Initiative , a commitment for members to switching their UK offices and premises to certified 100% renewable electricity by 2025; a target we achieved in 2022.

We are signatories to the Business Ambition for 1.5 campaign, a global coalition of UN agencies, business, and industry leaders, in partnership with the Race to Zero.

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61

Made with FlippingBook flipbook maker