About this reportScope of this report
This Integrated Annual Review is published by EY in the Netherlands. It relates to the fiscal year ended June 30, 2016. It is designed to bring together material information about our strategy, performance, prospects and governance in a way that reflects the economic, social and environmental context in which we operate. It was prepared in accordance with the framework of the International Integrated Reporting Council (IIRC). We present our financial statements separately.
This review discusses the activities carried out in the Netherlands by the entities Ernst & Young Nederland LLP, Ernst & Young Accountants LLP, Ernst & Young Belastingadviseurs LLP, Ernst & Young Actuarissen B.V., Ernst & Young CertifyPoint B.V., Ernst & Young VAT Rep B.V., Ernst & Young Real Estate Advisory Services B.V., Centre B.V., CFORS B.V., Integrc Netherlands B.V., EY Intelligence in Information B.V., EY Montesquieu Finance B.V., EY Montesquieu Institutional Risk Management B.V., Parthenon-EY B.V. and Stichting Ernst & Young Foundation. Ernst & Young Nederland LLP is the coordinating and facilitating entity of the Dutch EY organization but does not provide any services to clients. Ernst & Young Belastingadviseurs LLP has a strategic alliance with Holland Van Gijzen Advocaten en Notarissen LLP. Holland Van Gijzen accordingly falls within the scope of this review.
In this Integrated Annual Review we set out our vision and aspirations for the future. Such forward-looking statements can be recognized by the use of words such as aspire, strive, attempt and aim. These statements are subject to uncertainties, which is why our assurance provider cannot provide assurance on such forwardlooking statements.
GRI G4 Content Index
EY bases its Corporate Responsibility reporting on the fourth generation Global Reporting Initiative (G4) guidelines. The topics presented are consistent with our corporate responsibility policy and are based on a materiality analysis.
The GRI Index is published as a separate report on our website. The GRI G4 Content Index report has been prepared in accordance with the Comprehensive criteria. This report, including the GRI G4 Content Index, but excluding the in-control statement, was fully subject to both an internal audit by EY’s auditors and an external audit by BDO, EY’s independent auditor.
The Integrated Annual Review and the financial statements are also available in XBRL format. XBRL is a standardized means to communicate and exchange business information between business systems.
In addition to this report, Ernst & Young Accountants LLP publishes a Transparency Report. This is a statutory requirement for firms auditing the financial statements of public interest entities. The main topics included in the Transparency Report are governance, quality (policy and assurance), independence and remuneration policy.
All reports are available online on our corporate reporting website www.ey.com/nl.
Materiality determination process
We enhance transparency by disclosing our main issues and impacts in our Integrated Annual Review. In the previous year we had conducted an extensive stakeholder consultation in order to identify our material topics. Last year’s process elaborated on the analysis we had made in the previous year, and we decided to update, complement and sharpen our material topics. The process comprised the following four steps:
- Conduct desk research (internal and external documentation and meetings).
- Take FY 2014/2015 material topics as the basis and update in accordance with outcome of desk research.
- Finalize and validate with Board of Directors.
- Determine FY 2015/2016 materiality.
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) endorsed by the European Union.
Financial and non-financial information is derived from a variety of sources. Where possible, it is taken from existing systems and supplemented with information provided by the line managers responsible for the relevant area.
EY NL at a glance – reporting principles
|Finance||Combined||Total revenue: sum of revenues as disclosed in the financial statements
Operating cost ratio: operating expenses as disclosed in the financial statements as percentage of revenue
Profit for the fiscal year: Profit for the year as disclosed in the financial statements
Revenue by service line: allocation of revenues to service lines
Revenue by industry market segment: allocation of revenues to industry market segment
|Headcount by service lines||Combined||Year-end headcount|
|Headcount by rank and gender (ratio)||Combined||Year-end headcount|
|Headcount by age||Age per headcount at year end|
|People survey: engagement score||EYNL||Global People Pulse survey conducted by external party (IBM) across a range of topics relevant to our organization and our employees.|
|Retention rate top talent||Combined||Retention of people at end of financial year with personal performance scores of 4 and 5 over the previous financial year (on a scale of 1 to 5).|
|Value of our human capital||EYNL||We measured and monetized the following three aspects of Human capital:
|Assessment of Service Quality (ASQ)||EYNL||% recommendation score ≥ 7 of 196 clients headquartered or located in the Netherlands, on a scale of 1 (never) to 10 (always)|
|Quality Review engagements||EYNL||Internal reviews of engagements selected on the basis of risk, focusing on clients that are large, complex or of significant public interest. Primary goal of the review is to determine compliance with quality control systems, policies and procedures, professional standards, and regulatory standards. Is one of the remuneration criteria for partners.|
|Independence review partners||EYNL||Outcome of our yearly Personal Independence Compliance Testing (PICT) program This program tests compliance with personal independence confirmation requirements. In the FY 2015/2016 testing cycle, 46 partners and directors were tested.|
|Community engagement hours||EYNL||Community engagement hours consist of pro bono advisory, skills-based volunteering and CR staff hours.|
|Emission in tCO2 per FTE||EYNL||Total emission in tCO2 divided by the average total FTE including partners. For the 2015/2016 figures the latest known conversionfactors have been used. The comparable figures have been restated using the conversionfactors of 2015/2016.|
|Value of our natural capital||EYNL||We monetized our car travel, office energy consumption and air, train travel and waste using a Social Cost of Carbon (SCC), which we calculated based on literature of scientific organizations and institutions.|
Scope EYNL Ernst & Young Nederland LLP and subsidiaries, HVG Holland Van Gijzen Advocaten en Notarissen LLP and subsidiaries, combined aggregation of EYNL and HVG without elimination of any transactions between the two groups.