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2023 Corporate Sustainability Report
about the report
FTI Consulting’s 2023 Corporate Sustainability Report highlights our approach to addressing our company’s unique environmental, social and governance characteristics through our related programs, policies and commitments.
Proactively identifying and addressing ESG risks and opportunities is a key component of sustaining our strong growth trajectory and maintaining our license to operate. We are pleased to share our continued progress with our stakeholders.
In 2023, we maintained our focus on retaining and supporting the best professionals and investing in our talent throughout their careers, reducing our emissions intensity per employee as we grow and empowering our people to do good in our communities.
“The key underlying driver of our multiyear growth trajectory at FTI Consulting is that we do not sit still; we invest actively in our clients, our people and our communities to ensure we are developing, growing and making a difference.”
Steven H. Gunby President and Chief Executive Officer
Our 2023 ESG Highlights
environment
Governance
Talent Development & Employee Engagement
Diversity, Inclusion AND Belonging
Corporate citizenship
reduction of square footage
and energy consumption
per employee1 compared
with 20192
Increased percentage of real
estate portfolio, as measured
by square footage, powered
or offset by 100% renewable
energy from 36% in 2022 to 44%
-46%
Completed the transition of
100% of data storage servers
in our North America and Europe,
the Middle East and Africa
regions to the cloud
Reduced emissions
intensity per employee1 by
45% from 4.90 MT CO2e3 in
20192 to 2.71 MT CO2e
Featured topics
1.
Our Environmental Sustainability Journey
2.
Supporting Our People and Communities
We are taking steps to reduce our environmental footprint across multiple high-impact areas of our business, including our work toward our ambition of reaching net-zero greenhouse gas (“GHG”) emissions by 2030.
In line with or broader business strategy, FTI Consulting prioritizes efficiency and sustainability as it relates to our company’s real estate. We have enhanced our focus on moving into workspaces that are more efficient and sustainable. In 2023, FTI Consulting either opened or relocated 11 offices, with each incorporating sustainability-related features.
As a professional services firm with no manufacturing or product distribution activities, FTI Consulting operates with a relatively small environmental footprint. Our focus areas of environmental impact are employee travel, corporate leased office spaces and non-hazardous waste.
Our Dubai office has invested in motion sensor lights and a recycling service, and eliminated single-use plastics. The building is cooled using chilled water.
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FTI Consulting and its professionals are committed to doing our part in addressing climate change and reducing our emissions intensity per employee as we grow.
As a professional services firm, our business is driven by our people. FTI Consulting is committed to fostering a culture where our employees feel supported personally and professionally.
“Investing in our people and providing them with the opportunity to grow is at the heart of our company and, I believe, imperative for our firm’s success. To that end, we are focused on programs fostering continuous growth and development, diversity and inclusion, and corporate citizenship.”
Holly Paul
Chief Human Resources Officer, Washington, D.C.
Talent Development
Hiring great talent is the first step of developing future leaders; advancing their skills, charting career progression paths and supporting our people throughout their career milestones are vital to our firm’s success.
“As someone with no background in consulting, I was overwhelmed at first. Learning is a process, and at FTI Consulting, you can learn and expand outside of your comfort zone.”
Laura Murcia Obregon
Director, Bogotá
TALENT DEVELOPMENT
Diversity, Inclusion AND Belonging
FTI Consulting’s Diversity, Inclusion and Belonging strategy consists of four distinct and complementary pillars, each designed to be amplified with a designated goal, multiple firm-based commitments and tactical applications to provide for accountability and implementation.
“I am actively involved with employee resource groups here at FTI Consulting, and I can personally attest to how this has positively impacted my career. My engagement has sharpened my professional networking skills, which is invaluable for career advancement and business development opportunities.”
DIVERSITY, INCLUSION AND BELONGING
Corporate Citizenship
FTI Consulting is committed to making a significant and long-lasting impact, far beyond the work we do for our clients. Our Corporate Citizenship Program empowers our professionals to leverage their unique expertise to solve problems and build resilience in our global and local communities.
“Applying our expertise through pro bono to organizations to help create impact, assist in solving complex issues and advance vital work is one way we can be a force for good and give back to the communities where we live and work.”
CORPORATE CITIZENSHIP
At FTI Consulting, we are committed to pursuing excellence for our stakeholders and managing governance risks and opportunities. We strive to uphold best-in-class policies and practices for compliance, business ethics and professional conduct, all of which are essential in providing our clients with confidence that they can rely on us as they navigate their most complex opportunities and challenges.
Our Board of Directors provides oversight and supports the firm’s continued efforts to operate sustainably and generate long-term value for our stakeholders.
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policies
Independent
non-employee
Chairman of the Board
Nominating, Corporate
Governance and
Social Responsibility
Committee provides
oversight of ESG matters
Annual election of directors by majority vote in uncontested elections, with director resignation policy
FTI Consulting is a participant of the United Nations Global Compact and supports the Ten Principles on
Human Rights, Labor, Environment and Anti-Corruption.
As a company, we support the United Nations 17 Sustainable Development Goals and strategically align with seven goals where we believe our expertise is best positioned to make a positive impact with our people, our clients and our communities. Within the report, we share a collection of case studies aligned with the Sustainable Development Goals through company-sponsored pro bono, client and corporate citizenship engagements.
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Our experts helped drive change by providing strategic counsel to a new independent human rights non-governmental organization, Justice and Accountability for Ukraine (“JAFUA”), which was established to campaign for a special international tribunal to enable genuine accountability for the crimes of aggression against Ukraine and its people following the February 2022 invasion.
Advancing International Accountability in Support of Ukraine
More ➔
The National Foundation for Centers for Disease Control and Prevention (“CDC Foundation”) selected FTI Consulting, in partnership with the National Forum for Heart Disease and Stroke Prevention, to develop a business case for employer engagement in hypertension prevention and control and disseminate the findings to employers.
More ➔
Hypertension Control: A Vital Business Investment
Throughout the year, colleagues across the world came together to raise awareness of global hunger through a number of company-sponsored community initiatives. FTI Consulting’s commitment to fighting food insecurity on an international level resulted in more than 50,000 meals packed and distributed to those in need of nutritious food.
More ➔
Providing Nourishment to Communities Experiencing Food Insecurity
4.5
4
3.5
3
2.5
2
1.5
1
.5
0
GHG Emissons1
Emissions Intensity per Employee2
0.75
0.31
4.15
2.39
Scope 1 and 2
Scope 3
2019
2023
~59% decrease in Scope
1 + 2 emissions3,4
~42% decrease in
Scope 3 emissions
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Mollie Hawkes
Head of Marketing, Communications & Investor Relations
Mollie.Hawkes@fticonsulting.com
Key Contacts
Nicole Madison Chan
Senior Director, Corporate Citizenship
Nicole.Madison@fticonsulting.com
Matthew Bashalany
Managing Director, Corporate Communications
Matthew.Bashalany@fticonsulting.com
Explore Our Past Corporate Sustainability Reports:
2022 Corporate Sustainability Report
2021 Corporate Sustainability Report
1 “Per employee” refers to FTI Consulting’s total employee headcount (excluding independent contractors), as reported in our Annual Report on Form 10-K for each applicable calendar year ended December 31 plus independent contractors as of December 31 of the applicable calendar year ended December 31. “Independent contractors” are defined as temporary resources who at times may travel on behalf of FTI Consulting for business purposes. See Appendix of the Corporate Sustainability Report for reconciliations of ‘‘employees, including independent contractors,’’ to ‘‘employees, excluding independent contractors,’’ for the applicable calendar year ended December 31.
2 2019 is representative of pre-COVID-19 pandemic in-office attendance, business travel and printer usage, as these emissions were repressed in both 2020 and 2021 due to COVID-19 pandemic restrictions on business travel and office occupancy.
3 MT CO2e stands for metric tons of carbon dioxide (CO2) equivalent.
Emissions Intensity per Employee
(MT CO2e/Employee)2,5
1 GHG emissions reported in this graph represent data for entities under operational control of FTI Consulting and its subsidiaries, which is consistent with the GHG Protocol.
2 “Per employee” refers to FTI Consulting’s total employee headcount (excluding independent contractors), as reported in our Annual Report on Form 10-K for each applicable calendar year ended December 31 plus independent contractors as of December 31 of the applicable calendar year ended December 31. “Independent contractors” are defined as temporary resources who at times may travel on behalf of FTI Consulting for business purposes. See Appendix of the Corporate Sustainability Report for reconciliations of ‘‘employees, including independent contractors,’’ to ‘‘employees, excluding independent contractors,’’ for the applicable calendar year ended December 31.
3 HFCs, or refrigerant gas losses associated with office operations, are not included in FTI Consulting’s publicly reported 2023 emissions Scope 1 inventory. We are currently evaluating if HFCs are relevant to our business operations and our operational boundary. If so, we expect to revisit our Scope 1 emissions inventory and targets, where feasible.
4 The breakdown of Scope 1 and 2 emissions intensities are as follows: Scope 1: 0.00 (2019), 0.01 (2023) and Scope 2: 0.75 (2019), 0.30 (2023). Ongoing emissions assessments and data collection undertaken in 2024 identified leased vehicles in our possession, primarily leased by businesses acquired between 2019 and 2022. Scope 1 emissions data for years 2019 through 2022 have been calculated to reflect leased vehicles emissions and can be found in the Appendix.
5 MT CO2e stands for metric tons of carbon dioxide (CO2) equivalent.
CASE STUDY
Hypertension Control: A Vital Business Investment
The National Foundation for the Centers for Disease Control and Prevention (“CDC Foundation”) selected FTI Consulting, in partnership with the National Forum for Heart Disease & Stroke Prevention, to develop a business case for employer engagement in hypertension prevention and control and disseminate the findings to employers.
our contribution
FTI Consulting developed a comprehensive evidence base on the prevalence, health impacts and costs of hypertension, as well as insights on employer interventions.
The team designed a customizable budget impact model to quantify the healthcare and productivity costs of hypertension based on industry and employee population characteristics.
Our experts hosted a webinar attended by more than 50 employers of varying sizes across a number of industries to disseminate the business case and share actions taken by leading organizations to prevent and manage hypertension.
our impact
FTI Consulting’s budget impact model and research revealed the extensive impact of hypertension costs across the workforce, as well as significant healthcare disparities, and called for employers to be the catalyst for change to promote equitable well-being for their employees.
The tools created by our team put important data in the hands of employers and trusted partners to help inform decision making and evaluate interventions that improve the health of their workforce.
FTI Consulting, along with the CDC Foundation, continues to lead virtual sessions to disseminate the findings at business coalition and collaborative meetings across the United States, including the National Hypertension Control Roundtable.
“Hypertension, while readily treatable, is prevalent across the workforce and often associated with other health conditions. We were pleased to partner with the CDC Foundation to create clear data on the financial consequences of the condition, making it easier to build a future economic case to prioritize preventative care and reduce risk.”
Meg Guerin-Calvert
Senior Managing Director, Washington, D.C.
X
our contribution
Throughout the year, colleagues across the world came together to raise awareness of global hunger through a number of company-sponsored community initiatives:
In Boston, we sorted nearly 15,000 pounds of donated food with the Greater Boston Food Bank, representing 12,500 nutritious meals distributed to families in need during the winter.
Colleagues from Brussels partnered with Serve the City on multiple occasions to package and distribute food, essential items and warm clothing to those experiencing homelessness.
Our Mexico City office collected essential items and monetary donations for victims of Hurricane Otis, one of the strongest storms in the region’s history, to be delivered to Banco de Alimentos México, a nonprofit network made up of 57 food banks.
Across the United States, colleagues packaged more than 35,000 meals with Rise Against Hunger, feeding 160 students for an entire school year and supporting the organization’s effort to alleviate hunger worldwide through nutritious meals.
Our Singapore office stocked donations at The Food Bank Singapore, an organization fighting to end food insecurity by rescuing wasted food for redistribution.
Colleagues from Minneapolis and St. Paul packaged approximately 720 meals for children in Haiti with Feed My Starving Children, a nonprofit dedicated to providing food to children experiencing severe malnutrition.
our impact
FTI Consulting’s efforts to fight food insecurity on an international level resulted in more than 50,000 meals packed and distributed to those in need of nutritious food.
CASE STUDY
Providing Nourishment to Communities Experiencing Food Insecurity
LAQUITA JEWETT
Managing Director, New York
Conflict, economic shocks and climate extremes are contributing to an unprecedented food crisis worldwide. More than 333 million people across the globe faced acute levels of food insecurity in 2023 and did not know where their next meal would come from. This constitutes a staggering increase of almost 200 million people compared with pre-COVID-19 pandemic levels.1
“I am incredibly grateful to be part of the FTI Consulting team that came together to make a significant impact for Rise Against Hunger. As we stood side by side, filling bags with nutritious ingredients, I witnessed the power of teamwork and compassion. Colleagues from different practice groups, backgrounds and levels worked seamlessly, driven by a common purpose: to alleviate hunger. Our FTI Consulting family demonstrated that when we unite, we can achieve remarkable things.”
X
88% acceptance rate for experienced hires and 81% acceptance rate for campus hires
training hours logged, with an average of 12 training hours per employee
professionals were promoted, a record number
professionals completed leadership training courses
1,500+
81,000+
1,500+
Held 60+ virtual and in-person diversity, inclusion and belonging events globally
increase in historically underrepresented minority Senior Managing Directors compared with 2020
increase in female Senior Managing Directors compared with 2020
80% of our Named Executive Officers and 58% of our Executive Committee represent diverse groups
45%
26%
Corporate Citizenship Champions who volunteer to lead corporate citizenship initiatives in their local office
charitable organizations supported through the company’s Corporate Citizenship Program
contributed in pro bono service, a record number
hours of volunteer service completed
200
1,200+
7,400+
100% independent Board Committee membership
of directors are racially diverse
of Board members are independent directors
of directors are female
89%
22%
33%
May Carpenter
Senior Director, Chicago
Lars Fæste
Europe, the Middle East and Africa Chairman, London
2023 Highlights
An FTI CONSULTING REPORT
3.
Governance,
Compliance and
Business Ethics
4.
Our Commitment to the United Nations Sustainable
Development Goals
As FTI Consulting’s Atlanta office relocated, a portion of the office furniture was reused and repurposed, and 100% of energy consumption is now offset by Renewable Energy Credits.
Our Paris office features open-planned pods made from sustainable materials and is equipped with LED lighting and recycling stations. There are also five terraces that grow biophilia and are maintained using recycled rainwater.
Related Content
ESG & Sustainability Client Services
Corporate Citizenship
Diversity, Inclusion & Belonging
Governance
Careers
Insights
For more information on the FTI Consulting Board of Directors, including our board composition and key director statistics, please visit our Proxy Statement.
1 GHG emissions reported in this graph represent data for entities under operational control of FTI Consulting and its subsidiaries, which is consistent with the GHG Protocol.
2 “Per employee” refers to FTI Consulting’s total employee headcount (excluding independent contractors), as reported in our Annual Report on Form 10-K for each applicable calendar year ended December 31 plus independent contractors as of December 31 of the applicable calendar year ended December 31. “Independent contractors” are defined as temporary resources who at times may travel on behalf of FTI Consulting for business purposes. See Appendix for reconciliations of ‘‘employees, including independent contractors,’’ to ‘‘employees, excluding independent contractors,’’ for the applicable calendar year ended December 31.
3 HFCs, or refrigerant gas losses associated with office operations, are not included in FTI Consulting’s publicly reported 2023 emissions Scope 1 inventory. We are currently evaluating if HFCs are relevant to our business operations and our operational boundary. If so, we expect to revisit our Scope 1 emissions inventory and targets, where feasible.
4 The breakdown of Scope 1 and 2 emissions intensities is as follows: Scope 1: 0.00 (2019), 0.01 (2023) and Scope 2: 4.15 (2019), 2.39 (2023). Ongoing emissions assessments and data collection identified leased vehicles in our possession, primarily driven from recent business acquisitions. Scope 1 emissions data for years 2019 through 2022 have been updated to reflect leased vehicles emissions and can be found in the Appendix.
5 MT CO2e stands for metric tons of carbon dioxide (CO2) equivalent.
$10.5M
1 World Food Programme
Wells Fargo has since regained most of its market capitalization (approximately $210 billion as of January 2022), and it remains one of the largest banks in the United States.
Execution
These reforms helped the bank avoid criminal prosecution and were referenced in its $3 billion settlement with the U.S. government in February 2020.
Recommendations
Wells Fargo’s Board of Directors report, with numerous citations to FTI Consulting’s work, was publicly issued and led to wide-ranging reforms of Wells Fargo’s internal practices.
Diagnosis
The Impact
As part of this investigation, the team met with dozens of attorneys, including Wells Fargo’s in-house counsel and several firms representing Wells Fargo. FTI Consulting’s professionals also presented findings and responded to requests from attorneys at numerous government agencies, including the SEC, civil and criminal divisions of the DOJ, and the California Attorney General’s office.
Result
Wells Fargo’s Board of Directors issued a report into Wells Fargo’s sales practices based on FTI Consulting’s and Shearman & Sterling’s findings. FTI Consulting conducted over 50 interviews and analyzed consumer bank data from millions of accounts to uncover underlying issues ranging from decentralized processes to poor corporate culture.
Process
Our forensic accounting and data analytics experts examined millions of records spread across multiple platforms, looking back a decade and a half for relevant data.
Overview
Our Role
Wells Fargo shocked the nation when it announced it had fired 5,300 employees over several years for creating millions of fake customer accounts in a cross-selling practice to meet extremely aggressive sales quotas. Decades of reputational and brand value quickly evaporated as Wells Fargo made headlines for the size and scope of the sales practices and the subsequent resignations of both its CEO and COO. FTI Consulting and Shearman & Sterling were retained by a special committee of Wells Fargo’s Board of Directors to conduct an independent investigation and give the Board of Directors more clarity on what happened and the actions to take going forward to restore credibility with impacted stakeholders.
Situation
Facing one of the largest instances of alleged customer fraud in U.S. banking history, Wells Fargo’s Board of Directors engaged FTI Consulting and global law firm Shearman & Sterling to conduct an independent investigation into how these alleged events occurred and help restore the bank’s reputation and enterprise value.
FTI Consulting Insights
Help Wells Fargo Reform
and Recover
Wells Fargo
Case Study
The Impact
Our Role
Situation
Introduction
³ Aaron Katersky, “More funds recovered for victims of Bernie Madoff,” ABC News web site (Dec. 9, 2022).
Hertz successfully de-fleeted approximately 200,000 vehicles, facilitating the repayment of USD$4.3 billion in debt principal and sold its Donlen business for approximately USD$875 million.
Execution
Recoveries from the Madoff Recovery Initiative far exceed similar efforts related to prior Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered.³
Augmented compliance, quality and risk effectiveness:: Our team of experts optimized processes and strengthened risk management, achieving a 61% reduction in cases escalated by the Second Line of Defense (2LOD) back to the First Line of Defense (1LOD).
Transformed customer experience: FTI Consulting reduced case turnaround time by approximately 60%, significantly accelerating onboarding timelines.
Reduced cost and increased efficiency: By cutting the average case completion time by 48%, our team boosted operational capacity by 30 to 35%, driving down costs and enhancing productivity.
The Impact
With the Trustee, the teams investigated more than 16,500 claims, ultimately allowing more than 2,600.
Provided litigation support, including serving as expert witnesses, for more than 1,000 lawsuits, including two actions that reached the Supreme Court of the United States.
Result
The teams reconstructed books and records, determined amounts deposited and withdrawn from thousands of customer accounts and analyzed hundreds of millions of transactions.
Process
Policy and procedure integration: FTI Consulting’s experts developed a decision tree within an integrated workflow tool, translating policy and procedure requirements into actionable steps based on client entity type and services. Our team defined critical data elements to streamline workflow mapping and establish an AI model baseline.
Development of KYC execution platform: Our team standardized onboarding and lifecycle management across services with integrated processes, policies and data. They deployed accelerators, digitization and automation to meet compliance requirements and support customized reporting.
AI/ML-Driven analytics accelerators: Our FTI Consulting experts developed custom AI models to minimize human intervention in KYC and regulatory onboarding, utilizing data transformation tools such as Pandas, Apache Spark and Python. They created an AI agent to manage a two-way flow of information, automating tests, solving issues and executing actions with golden sources - single, authoritative sources of information to ensure that everyone has the same understanding.
Overview
Our Role
In December 2008, Bernie Madoff admitted that the Investment Advisory business within his firm was a Ponzi scheme, setting off his arrest and a chain reaction of events throughout the financial services world and philanthropic communities.¹
A Trustee under the Securities Investor Protection Act was appointed to liquidate Madoff’s firm and to recover the proceeds from his Ponzi scheme.²
¹ Securities and Exchange Commission v. Bernard L. Madoff, U.S. District Court S.D.N.Y. (Dec. 11, 2008).
² Securities and Exchange Commission v. Bernard L. Madoff, U.S. District Court S.D.N.Y. (Dec. 15, 2008).
Situation
Our client, a multinational bank, aimed to enhance its Know Your Client (“KYC”) program to combat fraud, corruption and money laundering. Recognizing the importance of effective KYC processes for compliance and risk management, the bank sought to digitize and streamline these processes to boost compliance, cut costs, reduce staff workload and enhance customer experience. The bank hired FTI Consulting to create and pilot an AI-driven platform to automate and improve the efficiency of the KYC refresh program.
AI-Driven KYC Enhancement for a Global Bank
AI-Driven KYC
Case Study
The Impact
Our Role
Situation
Introduction
Hertz successfully de-fleeted approximately 200,000 vehicles, facilitating the repayment of USD$4.3 billion in debt principal and sold its Donlen business for approximately USD$875 million.
Execution
Judge Corley repeatedly referenced Professor Carlton’s testimony in her opinion criticizing the FTC expert’s analysis and acknowledged several post-transaction benefits noted in Professor Carlton’s testimony.
Recommendations
Improved the company’s accountability and responsiveness to regulators and equipped the legal department with the metrics they needed to address potential enforcement actions.
Enabled the company to enter a new direct-to-consumer lending business.
Positioned the company to drive a 3x revenue growth with a flat cost basis.
Original PE owner successfully exited midway through the transformation due to the value creation thesis supported by FTI Consulting.
Diagnosis
The Impact
FTI Consulting’s team of experts managed diligence activities and communications with financial and legal advisors and provided a temporary senior-level accounting resource, among other activities.
Result
FTI Consulting assisted with cash forecasting and liquidity management; oversaw vendor- and supplier-related matters; and prepared a quality-of-earnings report for the sale of Hertz’s Donlen subsidiary.
Process
The PE sponsor and company leadership engaged FTI Consulting to design a modern digital loan origination solution on a flexible, secure and scalable data platform that incorporated a suite of AI-enabled capabilities that automated activities, reduced the risk of fraud and enriched data analytics.
Our experts redesigned key business processes with regulatory and compliance considerations and developed a strategic roadmap to execute the transformation mandate.
FTI Consulting was further retained to manage the digital transformation office with the CEO, GC, CIO and COO across multiple workstreams involving six business units and eight technology partners.
Overview
Our Role
Hostess Brands, a leading sweet snacks company with iconic brands like Twinkies, Ding Dongs, Donettes, and Voortman, partnered with FTI to navigate communications around its transaction process, ultimately resulting in its acquisition by The J.M Smucker Co. for approximately $5.6 billion. FTI Consulting was initially retained due to increased leak risk related to a potential transaction. As Hostess ran a process and more parties became privy to a potential deal, the risk of a leak increased exponentially.
Situation
A leading fintech business, owned by one of the largest global Private Equity (“PE”) firms, was looking to embark upon a digital transformation to drive revenue growth and improve regulatory compliance. Their current technology, business processes and organization were outmoded and unable to support such transformational growth. By deploying an AI-enabled data platform and redesigned key business processes, FTI streamlined loan origination workflows, shortened the resolution path for consumer complaints, and equipped the legal department with the metrics they needed to address potential enforcement actions.
Tripling Revenue Growth Without Increasing Costs Through Digital Transformation
Tripling Revenue Growth
Case Study
The Impact
Our Role
Situation
Introduction
Judge Corley’s opinion relied on several recent challenges to vertical mergers where judges ruled for the defendants — United States of America v. AT&T Inc., DirecTV Group Holdings, LLC, and Time Warner Inc.; Federal Trade Commission v. Meta Platforms, Inc.; and the FTC ALJ opinion in In the Matter of Illumina, Inc. and Grail, Inc. — all of which are cases where Professor Carlton served as an economic expert for the merging parties.
Execution
Recommendations
In 2022, Colonial Pipeline received the Silver Anvil Award of Excellence from the Public Relations Society of America for its communications response to the ransomware attack and navigating a national crisis.
Secured Required Funding
Client was able to secure the required funding from its board based on the business case created by FTI Consulting
Return on Investment
$5.5 M cumulative ROI based on savings that are estimated to be realized over the next 5 years
33% growth of potential AML transactions through 2025
Increased Knowledge Base
Functional and technical stakeholders gained significant knowledge of the benefits from graph analytics enabled by machine learning.
Diagnosis
The Impact
FTI Consulting supported the company in the months following the event as it worked through the system hardening and data recovery phases, which included employee, customer and shipper notifications. The team also helped prepare the CEO to testify before two congressional committees about the company’s response to the ransomware attack.
Execution
The FTI Consulting team supported the development and execution of a crisis communications strategy, produced materials for company stakeholders, supported daily briefings to senior government officials in the White House and Department of Energy and managed the company’s media engagement, which included more than 1,000 inquiries.
Recommendations
Implemented a full analysis and validation of the financial institution’s current system capabilities and constraints both functional and technical
Created an in-depth functional and evaluation framework
Implemented project management and governance for POC environment and activities, which included coordination with business & IT (application, infrastructure, infosec, supplier management) teams, and product vendors, while identify the target state product
Created a success criteria and a scorecard
Recommended the best fit solution considering both internal financial services client input and our independent assessment/review
Created the functional target state and architectural blueprint
Created the business case with details on target state recommendations (functional/technical capabilities matrix, total cost of operations and cost-benefits analysis)
Created an implementation plan including timeline, sequence, high-level architecture and total cost to help our client operationalize the transformation process
Diagnosis
Our Role
MASMOVIL and Orange were under scrutiny and were required to meet the typical compressed timeframes and extensive internal document production obligations from the European Commission that are now a standard feature in merger clearance reviews. To fulfill the request from the authorities on time, the companies needed to implement a plan to enable rolling document reviews and productions, requiring around-the-clock work from the combined FTI Technology and counsel team.
To add to the complexity, there were also heightened sensitivities about the justification for withholding any documents due to privilege. The tight timelines made it difficult to review the documents for personal and privileged information fully, so the team needed to establish a high degree of quality control to identify privileged information and document why it was withheld from the production set.
Stakeholders within MASMOVIL and Orange selected FTI Technology for the full force of its merger clearance review experience and international capabilities across digital forensics and e-discovery for document preservation, collection and processing, as well as the ability to deliver comprehensive managed document review. Several parties involved in the transaction had worked with FTI Technology’s experts on previous matters and trusted the team to deliver successfully for the entire review.
Situation
FTI Consulting used machine learning and graph analytics to help a U.S. investment bank enhance its financial crime monitoring.
Financial Crime Compliance Advancement Enabled by Artificial Intelligence and Analytics
Financial Crime
Case Study
The Impact
Our Role
Situation
Introduction
Judge Corley’s opinion relied on several recent challenges to vertical mergers where judges ruled for the defendants — United States of America v. AT&T Inc., DirecTV Group Holdings, LLC, and Time Warner Inc.; Federal Trade Commission v. Meta Platforms, Inc.; and the FTC ALJ opinion in In the Matter of Illumina, Inc. and Grail, Inc. — all of which are cases where Professor Carlton served as an economic expert for the merging parties.
Execution
Recommendations
Judge Corley repeatedly referenced Professor Carlton’s testimony in her opinion criticizing the FTC expert’s analysis and acknowledged several post-transaction benefits noted in Professor Carlton’s testimony.
By providing a unified regulatory monitoring solution, we empowered the client with a centralized platform that served as a reliable 'single source of truth.' This ensured consistent compliance and enhanced the client's ability to navigate an ever-changing regulatory landscape and included supporting legal documents.
Our team was able to help improve the client’s engagement with regulators, streamline compliance processes and strengthen commercial and operational strategies.
FTI Consulting’s regulatory monitoring solution is AI-enabled, empowering organizations to efficiently deconstruct, summarize and compare regulations across different regions. The solution allows for seamless comparison with internal policies and facilitates natural language processing, enhancing the overall regulatory compliance process.
As a result, the client gained better control over regulatory risks, ensured adherence to laws across all markets and bolstered their overall reputation and strategic positioning.
Diagnosis
The Impact
Compass Lexecon’s economic analysis and expert testimony identified deal-specific benefits, including expanded access to Activision Blizzard’s gaming content, lower costs for gamers and increased incentives for investment in game development.
Result
Compass Lexecon expert, Professor Dennis W. Carlton, testified before the federal court that the FTC expert’s economic analysis was flawed, relied on unsupported assumptions, and failed to show that the transaction would lead to unfair competition and foreclosure of Activision Blizzard’s content from Microsoft rivals.
Process
FTI Consulting experts utilized a design thinking approach, collaborating closely with client stakeholders to co-create a tailored solution. This ensured that the platform balanced competing priorities and was rapidly implemented to meet critical needs.
A secure, high-performance infrastructure was built using Amazon Web Services (AWS) cloud-based solution, featuring single sign-on and robust capabilities to support the platform's resilience and efficiency.
FTI Consulting developed an agnostic AI infrastructure that leverages a proprietary Retrieval Augmented Generation (RAG) system. This infrastructure enables the use of multiple large language models (LLMs) and the development of AI agents tailored to meet incoming business requirements.
FTI Consulting enhanced data ingestion processes to provide the client with comprehensive legislative insights, including key dates and future developments relevant to their products, ensuring full visibility into the regulatory landscape.
Our team developed global and market-specific dashboards with geographical views, and established an automated notification system to keep stakeholders informed of regulatory updates, supported by a centralized repository for legal documentation.
Overview
Our Role
Our consumer goods client needed a unified solution for regulatory monitoring, creating a ‘single source of truth’ to manage the evolving regulatory landscape. This platform would ensure consistent compliance and support the company’s commercial and operational strategies.
By deploying a digital, data-driven, AI-enabled platform, the client aimed to improve engagement with regulators and ensure compliance with laws across all regions where it operates.
Situation
A leading international consumer goods company retained FTI Consulting to deliver an AI-enabled Regulatory Monitoring Platform as part of a broader monitoring program focusing on regulatory issues relating to their products and reduced-risk offerings, such as product regulation, packaging, advertising and usage restriction.
Regulatory Monitoring Platform: Centralizing Global Compliance
Regulatory Monitoring
Case Study
The Impact
Our Role
Situation
Introduction
¹ Luckin Announces the Substantial Completion of the Internal Investigation
² Luckin Announces the Substantial Completion of the Internal Investigation
³ https://www.sec.gov/news/press-release/2020-319
⁴ Luckin Coffee in $175 million class action settlement over accounting fraud
Luckin Coffee was delisted from Nasdaq and agreed to pay a USD$180 million penalty to the U.S. Securities and Exchange Commission³ in addition to reaching a USD$175 million settlement of shareholder class action claims.⁴
Execution
Documentary evidence confirmed that Luckin Coffee’s Chief Executive Officer, Chief Operating Officer and certain employees reporting to them actively participated in the creation of the fabricated transactions and attempts to hide them. Their employment was ultimately terminated.²
Recommendations
The Special Committee, Kirkland & Ellis and FTI Consulting were able to establish that the fabrication of transactions commenced in April 2019, and as a result Luckin Coffee’s net revenue was overstated by approximately RMB2.12 billion.¹
Diagnosis
The Impact
¹ Luckin Announces the Substantial Completion of the Internal Investigation
Over the course of the Investigation, the Special Committee, Kirkland & Ellis and FTI Consulting reviewed over 550,000 documents collected from over 60 custodians, interviewed over 60 witnesses, and performed extensive forensic accounting and data analytics testing.¹
Data & Analytics
Our Role
¹ Luckin Coffee's journey from hot startup to $5billion share wipeout
² Luckin Coffee's journey from hot startup to $5billion share wipeout
³ Luckin Coffee Announces Formation of Independent Special Committee and Provides Certain Information Related to Ongoing Internal Investigation
Luckin Coffee promoted itself as a technology-based domestic rival to Starbucks, bringing different business models and concepts to the coffee chain industry. After its maiden fundraising round the startup was valued at US$1billion making it one of the quickest firms to reach ‘unicorn’ status in China.¹
Luckin Coffee continued to grow rapidly and expanded to more than 4,000 stores by 2020.
An anonymous short-selling report cited by Muddy Waters alleged that Luckin Coffee was involved in an elaborate accounting fraud.² Luckin Coffee’s Board of Directors formed a Special Committee to undertake an independent investigation of the allegations. The Special Committee engaged Kirkland & Ellis as its legal advisor and FTI Consulting as its independent forensic accounting expert.³
Situation
When short-sellers alleged Luckin Coffee Inc., a US listed China-based company founded in 2017, of accounting fraud and employee misconduct, discredited public disclosures and questioned the overall health of the business, FTI Consulting was engaged by a Special Committee of the Board of Directors of Luckin Coffee as an independent forensic accounting expert to assist in an independent investigation into the allegations.¹
Trouble Brewing: Helping Luckin Coffee Uncover Fraud
¹ Luckin Coffee Announces Formation of Independent Special Committee and Provides Certain Information Related to Ongoing Internal Investigation
Luckin Coffee
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Supplemental Information (March 3, 2025): In the section titled “Climate-Related Opportunity Identification and Capitalization” (pg. 39), FTI Consulting states, “Moreover, our largest office in London is EMS ISO 14001 certified, powered by 100% renewable energy and is 100% climate neutral.” The basis for the “100% climate neutral” statement is that the Company offsets the emissions we produce by the electricity we consume.