TTEC 2024 Impact and Sustainability Report
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Contents
Introduction Social
Governance
Environmental
Indexes
Awards
Task Force on Climate-related Financial Disclosures This section details TTEC’s actions in line with implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Both strategically and financially, TTEC is committed to using commercially reasonable efforts to enhance energy efficiency in its facilities when delivering services. TTEC allocates resources to invest in new technologies and infrastructure upgrades that support its sustainability goals. By proactively managing climate-related risks and leveraging opportunities, TTEC aims to enhance its resilience, reduce costs, and drive long-term growth, thereby aligning its business strategy with global sustainability efforts.
In assessing the company’s climate-related risks and opportunities, the Board, armed with the information shared by the committees, also engages with key subject matter experts (SMEs) at the Company to gain deeper understanding of TTEC risk assessment methodologies and mitigation planning. As part of its oversight of TTEC strategy development and execution, the Board considers. TTEC climate-related risks and opportunities and engages with management to make sure they are appropriately reflected in the company’s strategy. Role of Management TTEC management, through its risk and internal audit functions, conducts a periodic (at least every two years) comprehensive, global enterprise risk assessment focused on key strategic, financial, operational, regulatory, and emerging risks in the business, including climate-related risks and opportunities. In assessing these risks, TTEC incorporates sustainable business strategies into its business plans to mitigate risk and leverage opportunities specific to climate stewardship as further outlined in our Climate Change and Environmental Responsibility policy.
TTEC generally defines the threshold for “financial material impact” to be 5% to 10% of total revenue. As it relates to business strategy and the useful life of an organization’s assets or infrastructure, TTEC considers: • Short term as fewer than three years • Medium term as three to five years • Long term as more than five and up to 10 years TTEC may consider this material financial threshold and these time horizons when considering climate-related risks and opportunities. Overall, acute and chronic physical risks, transition risks related to policy and legal issues, technological and market changes, are identified as potential risks to be considered by the Company.
Governance
Board Oversight The TTEC Board of Directors has an oversight responsibility for TTEC’s climate-related risks and opportunities, as well as the impact and sustainability/ESG initiatives specific to climate stewardship and environmental sustainability. The Board delegates to its Nominating and Governance Committee the annual impact and sustainability/ESG goals oversight and the committee works with management to establish the company’s annual ESG priorities and disclosure reporting standards. In reviewing the company’s annual ESG priorities, the committee makes sure that management places equal emphasis on TTEC social, governance, and climate-related objectives and that such objectives align with the ESG materiality assessment that the Company performs and updates from time to time. The committee periodically (at least twice annually) monitors the progress that the Company makes against such goals and shares the information with the Board for further input. The Board also delegates to its Audit Committee the enterprise risk assessment and risk management oversight, including the climate-related risk assessment and mitigation opportunities monitoring. The committee works with management to oversee a periodic (at least once every two years) comprehensive enterprise risk assessment as part of TTEC’s enterprise risk management (ERM) program, including climate-related risk assessment. The committee periodically (at least twice annually) reviews with management the progress being made against agreed risk mitigation priorities. The committee informs the Board about progress being made and how it impacts the business.
Risk Management
TTEC TCFD Scenario Analysis TTEC management, through its risk and internal audit functions, conducts a periodic (at least every two years) comprehensive, global enterprise risk assessment focused on key strategic, financial, operational, regulatory, and emerging risks in the business, including climate-related risks and opportunities. In assessing these risks, TTEC incorporates sustainable business strategies into its business plans to mitigate risk and leverage.
Overall, TTEC identifies a number of potential climate related opportunities involving:
• resource efficiency • energy sources • resiliency of the organization
Strategy
Resource efficiency is identified as an opportunity in the short and medium term. Diversification of energy sources is identified as an opportunity in the medium term as is the resiliency of the organization’s business strategy. Business, Strategy, and Financial Planning Climate-related risks and opportunities influence TTEC’s business operations, strategic planning, and financial management. The Company recognizes that regulatory changes and physical risks can disrupt operations and increase compliance and operational costs. To mitigate these risks, TTEC integrates climate considerations into its enterprise risk management processes, ensuring that potential climate impacts are addressed.
Short, Medium, and Long Term Climate Risks TTEC is expanding its understanding about climate related risks and opportunities specific to its business. In 2023, the Company started working with a consulting partner that specializes in climate related risks and the TCFD framework to educate senior management and prepare executives for the analysis the Company must undertake to assess and quantify its climate-related risks and opportunities over the short, medium, and long term. As part of its periodic enterprise risk assessment exercise, the Company identified weather risks specific to TTEC’s key delivery locations, cost of energy and other utilities, and availability of qualified labor in locations that may be impacted by climate change.
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