Appendix A: WEF IBC Index

GOVERNING PURPOSE

Setting purpose 

The company’s stated purpose, as the expression of the means by which a business proposes solutions to economic, environmental, and social issues. Corporate purpose should create value for all stakeholders, including shareholders.

Refer to section: We are part of the BDO Global Sustainability Movement

QUALITY OF GOVERNING BODY 

Governance body composition

Composition of the highest governance body and its committees by: competencies relating to economic, environmental, and social topics; executive or non-executive; independence; tenure on the governance body; number of each individual's other significant positions and commitments, and the nature of the commitments; gender; membership of under-represented social groups; stakeholder representation.

Refer to section: Our governance structure 

STAKEHOLDER ENGAGEMENT 

Material issues impacting stakeholders

List of the topics that are material to key stakeholders and the company, including how topics were identified and how stakeholders were engaged.

Refer to section: Engagement and material ESG topics

ETHICAL BEHAVIOUR

Anti-corruption

Total percentage of governance body members, employees, and business partners who have received training on the organization's anti-corruption policies and procedures, broken down by region.

Total number and nature of incidents of corruption confirmed during the current year but related to previous years; and

Total number and nature of incidents of corruption confirmed during the current year, related to this year.

Discussion of initiatives and stakeholder engagement to improve the broader operating environment and culture in order to combat corruption.

Refer to section: Anti-corruption commitment 

Protected ethics advice and reporting mechanisms

A description of internal and external mechanisms for:

1. Seeking advice about ethical and lawful behaviour and organizational integrity.
2. Reporting concerns about unethical or unlawful behaviour and organizational integrity.

Refer to section: Ethics and whistleblower policy 

RISK AND OPPORTUNITY OVERSIGHT

Integrating risk and opportunity into business process

Company risk factor and opportunity disclosures that clearly identify the principal material risks and opportunities facing the company specifically (as opposed to generic sector risks), the company appetite in respect of these risks, how these risks and opportunities have moved over time and the response to those changes. These opportunities and risks should integrate material economic, environmental, and social issues, including climate change and data stewardship.

Refer to section: Risk and opportunity oversight

CLIMATE CHANGE

Greenhouse gas emissions

For all relevant greenhouse gases (e.g., carbon dioxide, methane, nitrous oxide, F-gases, etc.), report in metric tonnes of carbon dioxide equivalent (tCO₂e) GHG Protocol Scope 1 and Scope 2 emissions.

Estimate and report material upstream and downstream (GHG Protocol Scope 3) emissions where appropriate.

Refer to: Emissions breakdown

TCFD implementation

Fully implement the recommendations of the Task Force on Climate-Related Financial Disclosures.

Refer to section: Metrics and targets

NATURE LOSS 

Land use and ecological sensitivity

Report the number and area (in hectares) of sites owned, leased, or managed in or adjacent to protected areas and/or key biodiversity areas (KBA).

BDO Canada will continue to prioritize climate change in this report. It is our intention to enhance our environmental disclosures as we mature along our sustainability journey. 

FRESH WATER AVAILABILITY

Water consumption and withdrawal in water-stressed areas

Report for operations where material, mega litres of water withdrawn, mega litres of water consumed and the percentage of each in regions with high or extremely high baseline water stress according to WRI’s Aqueduct Water Risk Atlas tool.

Estimate and report the same information for the full value chain (upstream and downstream) where appropriate.

DIGNITY AND EQUALITY

Diversity and inclusion (%)

Percentage of employees per employee category; by age group, gender, and other indicators of diversity (e.g., ethnicity).

Refer to section:  Our 2023 diversity snapshot

Refer to section:

Appendix E - Our workforce metrics

Pay equality (%)

Ratio of the basic salary and remuneration for each employee category by significant locations of operation for priority areas of equality: women to men; minor to major ethnic groups; and other relevant equality areas.

BDO is committed to fair, equitable pay and has developed important processes and measures that enable pay equity. Our compensation is internally equitable and designed to meet the following three guiding principles: 

• Competitive across our relevant markets.

• Recognizes outcomes and is differentiated based on performance. 

• Supported by clear communication and transparency.

We are also in adherence with provincial pay transparency legislation (for example, the Pay Transparency Act in British Columbia).

Wage level (%)

Ratios of standard entry-level wage by gender compared to local minimum wage.

Ratio of CEO’s total annual compensation to median total annual compensation of all employees (excluding the CEO).

As part of our ongoing commitment to pay equity and fair practices, a regular wage assessment is performed. We can confirm that all BDO Canada personnel are paid above the applicable jurisdiction’s minimum wage.

Risk for incidents of child, forced, or compulsory labour

An explanation of the operations and suppliers considered to have significant risk for incidents of child, forced, or compulsory labour. Such risks could emerge in relation to:

a) type of operation (such as manufacturing plant) and type of supplier.

b) countries or geographic areas with operations and suppliers considered at risk.

We understand the important role we play in creating and upholding a responsible business ecosystem. 

We are committed to upholding human rights and instilling ethical practices through our procurement strategies.

HEALTH AND WELL-BEING

Health and safety (%)

The number and rate of fatalities due to work-related injury; high-consequence work-related injuries (excluding fatalities); recordable work-related injuries, main types of work-related injury; and the number of hours worked.

Fatalities and work-related injuries are not tracked as the risk of accidents in BDO’s business is low.

An explanation of how the organization facilitates workers’ access to non-occupational medical and healthcare services and the scope of access provided for employees and workers.

Refer to section: Health and well-being

SKILLS FOR THE FUTURE

Training provided (#)

Average hours of training per person that the organization’s employees have undertaken during the reporting period, by gender and employee category (total number of trainings provided to employees divided by the number of employees).

Refer to section:  Appendix F - Skills for the future

Average training and development expenditure per full-time employee (total cost of training provided to employees divided by the number of employees).

EMPLOYMENT AND WEALTH GENERATION

Absolute number and rate of employment

1. Total number and rate of new employee hires during the reporting period, by age group, gender, other indicators of diversity and region.

2. Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity and region.

Refer to section: Appendix E - Our workforce metrics

Economic contribution

1. Direct economic value generated and distributed (EVG&D), on an accruals basis, covering the basic components for the organization’s global operations, ideally split out by: revenues, operating costs, employee wages and benefits, payments to providers of capital, payments to government, and community investment.

In 2023, BDO Canada generated revenues of $986,824,271, up 13.3% from 2022. A significant portion of these revenues were used for employees’ wages and benefits, and compensation to the owners. 

Payments to providers of capital and the government were deemed not applicable for BDO Canada.

Refer to section: Community impact

2. Financial assistance received from the government: total monetary value of financial assistance received by the organization from any government during the reporting period.

This disclosure was not deemed applicable to BDO Canada.

Financial investment contribution

1. Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company’s investment strategy.

This disclosure was not deemed applicable to BDO Canada.

2. Share buybacks plus dividend payments, supported by narrative to describe the company’s strategy for returns of capital to shareholders.

COMMUNITY AND SOCIAL VITALITY

Total tax paid

The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable VAT and other sales taxes, employer-paid payroll taxes, and other taxes that constitute costs to the company, by category of taxes.

This disclosure was not deemed applicable to BDO Canada. However, we have outlined the many ways in which we invest our time, expertise, and resources into supporting our local communities for the betterment of society. 

For more information, refer to section: Community impact

INNOVATION OF BETTER PRODUCTS AND SERVICES

Total R&D expenses ($)

Total costs related to research and development.

We track our research and development (R&D) expenditure in an effort to quantify our contribution to innovation and highlight the value of our investments. In 2023, we invested $3,087,257 in innovation initiatives, including internal system investments and consulting services associated with our ongoing modernization efforts. This is a 54% increase since 2022.

Refer to section: Innovating for growth