Social Responsibility Report

Social Responsibility Report 2018

Creating change that

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We believe we have an opportunity, and a responsibility, to use our knowledge and our capabilities to help address the world’s most pressing challenges.

In this report, we share stories of the things we are doing, beyond our client work, to make a difference in our communities and for our

Issues we’re

Building skills and enabling work

Work is vital. It enables individuals to build fulfilling lives. Businesses depend on a skilled workforce. We are studying the changing nature of work, we have founded a non-profit to tackle unemployment, and we support a range of non-profits that are addressing employment and skills.

By 2030,

375

workers may need to retrain for different occupations

Shaping the future of

The McKinsey Global Institute (MGI) has studied workplace automation, its potential economic impact, the number and types of jobs that might be lost and gained, the impact on workers and the reskilling challenge. Its Future of Work research helps frame and open up debates, bring new thinking, and identify potential interventions.

75

million

of employers

unemployed

can’t fill entry-level vacancies

Generation: Career-launching jobs for young

Inspired by our research on the education-to-employment gap, we founded Generation—an independent non-profit tackling youth employment. At the end of 2018, Generation was operating in 90 cities across nine countries. It had recorded 25,000 graduates, with 81 percent placed in jobs within 90 days of program completion, and 66 percent of graduates were still employed after one

Partnership

Supporting business-led social impact across US

Business leaders are coming together and using their knowledge and capabilities to tackle social issues, including jobs and skills. McKinsey has helped convene and support these partnerships in a dozen major US cities.

Advancing gender equality

Gender inequalities remain entrenched in every society. Through McKinsey’s research, we are establishing compelling economic and business cases for gender equality. We also act in partnership with others to advance women in the workplace and in

$12 trillion

could be added to global GDP by 2025 if we close the gender gap

Action

Capturing the power of parity

MGI’s Power of Parity research has linked gender equality in society and gender equality in work. Its insights have informed the approach companies—and countries—can take to deliver gender parity.

Enabling girls to receive an

McKinsey has helped Malala Fund to craft its strategy and operational plan to realize Malala Yousafzai’s vision of a world in which all girls have access to 12 years of safe, high-quality

Our firm

Women at McKinsey

We know from our research—and from our experience—the power that diverse teams can have. At McKinsey, women make up 45 percent of new hires and 43 percent of all employees. However, we recognize that we have more to do: women make up just 13 percent of leadership roles. Our All In program seeks to help our firm achieve our aspirations for the hiring and advancement of women.

45%

43%

of our new hires are women

of all our employees are women

Building environmental sustainability

The world faces a critical moment in tackling the challenges of climate change, environmental pollution, and responsible use of resources. We are creating an evidence base and putting this research into action through pro bono support of environmental non-profits and, most recently, through the work of McKinsey.org.

12 years

to limit the effect of climate change, according to United Nations body, the Intergovernmental Panel on Climate Change

Developing sustainability insights

For more than ten years, McKinsey’s greenhouse-gas-abatement cost-curve framework has framed emissions-reduction opportunities and investment needs. Today, our research is focused on four themes: energy transitions, resource-productive operations, the circular economy, and the future of mobility.

Photo credit: Tompkins Conservation

The world generates

3.5 million

tons of solid waste every day

McKinsey.org: Rethinking recycling

McKinsey.org is developing new solutions to build recycling systems that will put all waste to productive use for the benefit of communities and the environment, with pilots in Bali and Buenos Aires.

Barrio 31, Argentina

25%

recycling rate after 5

Our firm

Managing our environmental

We are committed to minimizing our own impact on the planet, including our global greenhouse-gas emissions, the largest component of our environmental footprint.

0

87%

net carbon emissions

renewable electricity

environmental initiatives

We have achieved this by reducing emissions where possible and investing in reduction projects to offset the

We are committed to using 100 percent renewable electricity by 2025. In 2018, McKinsey became the first global consultancy to join RE100, a coalition of organizations committed to this goal.

Across nearly 70 of our offices, Green Teams are leading more than 175 environmental initiatives to reduce our footprint and build awareness about environmental

Our

Investing in carbon-reduction projects

After a firmwide poll, we decided to focus our offset efforts on forestry and land use. Our offset projects not only absorb carbon but also provide additional benefits, such as safeguarding wildlife habitats and providing new livelihoods for local communities.

Partnering with

Poverty

Disaster relief

Across the world, our offices and our people work to support profits that are addressing some of the world’s most pressing social challenges. Through pro bono service, board membership, and volunteering, we use our skills and experience to strengthen their impact and help them grow.

600+

non-profits supported each year

Improving learning in Indian schools

Peepul and Pratham

McKinsey India has helped develop the growth strategies for two progressive non-profits in the education sector that are working to improve student learning: Peepul, which focuses on transforming education in government schools through whole-school transformation and teacher capacity building, and Pratham, which develops low-cost, community-driven solutions to improve the quality of learning.

35,000

58 million

students currently reached through Peepul’s programs

youth reached through Pratham’s literacy and vocational programs

Reforming foster care in the United States

Foster America

Foster America recruits, trains, and places midcareer professionals as fellows in the child-welfare sector through its fellowship program, with the goal of bringing the best skills to address the system’s biggest problems. McKinsey has worked with Foster America since its launch in 2016 to help develop its business plan, create criteria for selecting agency partners, and build a strategy for financial sustainability and growth.

38

$2.5 million

Foster America fellows placed across 11 states

in government contracts secured

Improving education for Syrian refugees

Lebanon

More than a million refugees have fled the Syrian conflict into Lebanon. Since 2015, McKinsey’s London and Middle East offices have partnered with local non-profits to provide and improve education for the hundreds of thousands of displaced children.

3,200

$3 million

children reached by school-improvement efforts

in grant funding secured to open a new school

Training community health workers for remote communities

Last Mile Health

Founded in Liberia, Last Mile Health works with governments to provide primary healthcare to the world’s most remote villages. McKinsey helped operationalize its Community Health Academy, which uses digital training tools to build the skills of community health workers and health-system leaders.

3,000

50%

community health workers across the world trained through the Academy

of Liberian community health workforce has access to the Academy’s digital tools

Responding to Mexico’s earthquake

Fideicomiso Fuerza México

Following the devastating September 2017 earthquake that affected Mexico City and its surrounding areas, Fideicomiso Fuerza México (FFM) was formed by business leaders to spearhead reconstruction efforts. A McKinsey team in Mexico provided support to FFM to help structure and manage its efforts, including developing an operating model for efficient decision making, coordination, and execution.

45,000

$23 million

Mexicans have benefited directly from FFM’s work

collected for reconstruction efforts

Helping London’s formerly homeless secure work

Work Ready Program

Developed by Thames Reach and McKinsey’s London office, the Work Ready Program provides support and skills development to those who have experienced homelessness to help them gain employment. Since its creation in 2013, Thames Reach has run the program several times each year, with volunteers from different organizations, including more than 200 McKinsey employees.

55%

2x

of participants secure employment or move into education or training

success rate of comparable programs

100+

communities served annually

Improving education for Syrian refugees

Reforming foster care in the United States

Training community health workers for remote communities

Improving learning in Indian schools

Responding to Mexico’s earthquake

Helping London’s formerly homeless secure work

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Helping clients have social

While this report focuses on our efforts to give back to our communities, we also work with clients that are addressing social challenges and building environmental sustainability.

Public Sector Practice

McKinsey’s Public Sector Practice supports governments to improve their productivity, the delivery and implementation of vital services, and the outcomes of their programs to better the lives of citizens and foster economic growth.

Social Sector Practice

McKinsey’s Social Sector Practice works with donors, non-profits, and nongovernmental organizations to develop and implement scale solutions to persistent challenges in areas such as education, public health, and economic development.

Sustainability Practice

McKinsey’s Sustainability Practice helps companies accelerate the transition to a carbon and sustainable-growth economy by eliminating waste, accelerating innovation, helping clients scale, and focusing capital investments on sustainability