Responsible Business Report 2023

Further information


2. Strategy

Through engagement with key stakeholders across the business, including members of ExCo, we determined the impact of each of these risks, using the definitions from the Firm’s existing risk management framework. Since risks may become material over different timeframes, we assessed each risk according to the time horizons listed below: • Short-term – 12 months (aligned with management plans for principal risks) • Medium-term – 3–5 years (aligned to the strategic planning cycle) • Long-term – 15–20 years (aligned to partner average tenure; includes 2030 deadline for our near-term Science-Based Target)

The climate-related risks and opportunities facing the Firm are steadily increasing. In terms of financial planning alone, approximately 10% of our revenue in 2023 was contingent on meeting decarbonisation goals. We have worked with our sustainability partner, Accenture, to identify and assess our most material climate-related risks through a process of extensive engagement and research. First, we developed a longlist of 19 climate- related risks and nine opportunities. We then narrowed these down to six risks and two opportunities which were identified as high-scoring and/or strategically important. All risks are transition risks, i.e., they materialise during the shift to a low-carbon economy, rather than physical risks resulting from climate change.

• Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term • Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning • Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario

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