SUSTAINABILITY REPORT FISCAL YEAR 2022 #BDOSustainabilityNOW BDO LATVIA | OCTOBER 2023
01.INTRODUCTION
02.STRATEGY
04. SOCIAL
03.ENVIRONMENTAL
05. GOVERNANCE
TABLE OF CONTENT 01. INTRODUCTION
02. STRATEGY
03. ENVIRONMENTAL
About this report
Why
Our story so far
Foreword
Drivers of change
Our strategy
BDO Latvia at a glance
Our roadmap
Our objectives
Sustainable development goals Materiality
Our goals
04. SOCIAL
05. GOVERNANCE
Our story so far
Our story so far
Our strategy
Our strategy
Our objectives
Our objectives
Growth & Development
Wellbeing Inclusive diversity SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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ABOUT THIS REPORT Introducing the BDO Sustainability Report, our first-ever sustainability report covering the fiscal year 2022. This report details our sustainability initiatives, accomplishments, and goals, showcasing our commitment to social and environmental priorities. In 2022, the ongoing impact of the COVID19 pandemic, rapid technological advances, growing environmental concerns, and Russia's military aggression in Ukraine, marked by tensions and potential global repercussions, collectively forced companies to rapidly adapt and adopt dynamic strategies to sustain their operations amidst a complex and evolving landscape.
Given that the report is currently in its early stages, we are faced with a constraint in terms of comparative metrics. This, however, presents an exciting opportunity for growth: in the upcoming years with a dedicated committee and more grounds for comparison, we expect to witness more precise assessments and the positive impact our efforts will have on our stakeholders. In this report, we highlight our commitment to the U.N. Global Compact, promotion of the U.N. Sustainable Development Goals, and adherence to the Global Reporting Initiative 2021 Universal Standards.
Amidst this backdrop and the importance of addressing climate change, BDO Latvia is redefining its traditional approach to sustainability.
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FOREWORD Building a sustainable future together For BDO Latvia, sustainability is not just a checkmark on an agenda; it is the essence of a thriving organization. Our commitment is to be a driving force for positive change, advocating for sustainable practices that leave a meaningful impact on the lives of our clients, employees, and communities. We also prioritise sustainability with our client-focused approach, particularly collaborating with clients to understand their challenges and identifying opportunities for sustainable practices. Early on in my leadership role, our management not only prioritized traditional understanding of value but also recognized the vital connection between client needs and sustainability. We understood that by putting these aspects front and center, we could create a powerful foundation for driving positive change not only within our organization but also in the broader context of sustainability. Now, our dedicated teams passionately embrace these values, driving us to seek innovative and sustainable solutions in all our work. Let's work together to build a future where sustainability is a source of pride, a legacy of our journey towards a brighter and more sustainable tomorrow.
VITA LIBERTE BDO LATVIA MANAGING PARTNER SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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02.STRATEGY
03.ENVIRONMENTAL
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FOREWORD In today's landscape, the era of regarding sustainability as a mere "nice to have" attribute has long passed; it has evolved into a must-have. Both customers and the public at large are now acutely attuned to ecological and social sustainability, primed with comprehensive insights into cause-and-effect dynamics. In this context, companies are striving for pioneering best practices to gain a competitive edge that will eventually become the standard. BDO Latvia is committed to sustainability, recognizing that our commitment sets an example and contributes to a collective journey for other enterprises. RAIVIS JANIS JAUNKALNS HEAD OF AUDIT AND ASSURANCE, SWORN AUDITOR, BOARD MEMBER
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BDO LATVIA AT A GLANCE OUR VISION & MISSION
OUR VALUES
BDO’s vision is to be the leader in exceptional client service. This is not about reinventing our profession’s approach to service, but rather about delivering our services exceptionally well – and delivering that high quality consistently in every office, every country and every territory where we are present, with a positive impact on people, society and environment as a result.
Our company values help us ensure that all our employees are working towards the same goals. Our culture is essentially built on three core values. In their DNA, our employees commit themselves to be direct, responsible and courageous
BDO is an ambitious & dynamic service organisation that wants to be attractive for both entrepreneurs and employees, hence our mission ‘let’s grow together’.
Let’s grow
together
DIRECTNESS We value open and honest communication. We encourage our employees to express their thoughts and ideas candidly, fostering an environment of transparency and trust. Directness allows us to address challenges head-on and find effective solutions.
RESPONSIBILITY Taking responsibility for our actions is fundamental to our culture of trust. We hold ourselves accountable for our commitments, whether to our clients, colleagues, or the broader community. Responsibility means delivering quality work, meeting deadlines, and fulfilling our obligations.
COURAGE We believe in the power of courage to drive innovation and progress. It's about having the boldness to tackle difficult tasks, explore new opportunities, and embrace change. Courage enables us to take calculated risks and lead with confidence, even in the face of uncertainty.
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BDO LATVIA AT A GLANCE OUR SERVICES
OUR LOCAL PRESENCE
BDO Latvia is an internationally active consultancy company with a solid reputation in financial services (Audit & Assurance (including ESG), Tax & Legal, Accounting & Reporting) and complementary, specialised advice to support clients towards futureproof and sustainable growth (Advisory).
At BDO, we find it important to be close to our employees and clients. Organisations always have a single direct point of contact and a BDO office in direct proximity.
It does so by, among other things, guiding them in ESG services strategy exercises, digital transformations, process optimizations, change and sustainability tracks, sustainable finance, financial advisory, mergers & acquisitions and risk management.
Riga
We assist a wide range of clients, from large international companies and (family) SMEs to private individuals and have expertise in the public sector. More information regarding our different services can be found here:
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STRATEGY WHY DRIVERS OF CHANGE OUR ROADMAP
SUSTAINABLE DEVELOPMENT GOALS MATERIALITY OUR GOALS
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WHY Why have an ESG Strategy? At BDO Latvia, ESG is not only an ethical choice but also a strategic decision. We understand that the impacts of climate change are far-reaching and demand decisive action. We have embraced the importance of an ESG strategy for three core reasons: VALUE To our bottom line. We understand that including ESG factors in our business helps us create longterm value. By addressing these factors, we find ways to innovate and improve efficiency. This benefits our financial performance and makes us more competitive in a changing market.
IMPACT Positively. We're not just focused on our business goals; we're dedicated to making a positive impact on society and the environment. By prioritizing sustainability and social responsibility, we aim to address global challenges like climate change, social inequality, and ethical governance. Our goal is to contribute to a more sustainable and fair world through our actions. RISK Mitigation. We take a proactive approach to minimize risks related to ESG factors. By recognizing and dealing with environmental, social, and governance risks, we protect the well-being and stability of our community. Embracing responsible practices helps us prevent potential harm to our operations, stakeholders, and communities.
As part of BDO's mission, our aim is to establish a precedent, serve as a wellspring of motivation, and take decisive actions in pursuit of a future that is sustainable. SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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DRIVERS OF CHANGE Corporate Social Responsability
‘ESG’ - Environment Social Governance
QUALITATIVE
QUANTITATIVE & QUALITATIVE
! ACCESS TO CAPITAL
THREATS & OPPORTUNITIES
REGULATION & LEGISLATION
EVOLVING STAKEHOLDER REQUIREM ENTS/ EXPECTATIONS
Companies have to embed continuous consideration and improvement processes to adapt to external market drivers.
It is key to remain dynamic and agile since the drivers are constantly evolving.
SUSTAINABLE BUSINESS PRACTICES
TRANSPARENT
M EASURABLE
ACTION
HOLISTIC
HOLISTIC APPROACH, IMPACTFUL ACTIONS, DYNAMIC METRICS & PERFORMANCE DISCLOSURES
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OUR ROADMAP We take a stepwise approach and are determined to gradually becoming more and more ambitious by continuously improving our strategy and actions.
The aim is to grow and develop our sustainability movement year by year and to make sustainability a key part of the BDO DNA by 2026. Of course, we will not get there at once, so we defined how we can gradually evolve our process and reach our goal by 2026. The overview in the right shows in more detail how we want to continue our sustainability journey.
Set concrete goals and reshape the way we act and do business
Set a critical first step in implementing a sustainable strategy • Ambition of the sustainability core team
• Short-,mid-, & long-term goals and action plan
• First report communicated internally
• CSRD and EU Taxonomy aligned reporting
...
Ad hoc initiatives
09/2023
09/2024
09/2025
Be transparent to our stakeholders and understand their expectations
09/2026
Sustainability as part of the BDO DNA • Integrated in policies and procedures
• Management vision & short-term action plan
• Strategy is lived by the whole organisation
• Second report communicated internally & externally
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SUSTAINABILITY ACTION TEAM A Sustainability Action Team is the heart of our commitment to a sustainable future. This dedicated group of individuals plays a pivotal role in ensuring that our company operates in an environmentally and socially responsible manner. By coordinating and implementing sustainable practices, setting measurable goals, and fostering a culture of sustainability, our team not only reduces our environmental footprint but also enhances our reputation, mitigates risks, and creates opportunities for innovation and growth. In today's world, where sustainability is increasingly important to customers, investors, and regulatory bodies, our Sustainability Action Team helps us stay ahead of the curve, demonstrating our dedication to a brighter and more sustainable tomorrow.
RAIVIS JANIS JAUNKALNS HEAD OF AUDIT AND ASSURANCE, BOARD MEMBER
SABINE SMILTS ASSOCIATE
SIMANIS BROKS CHIEF TECHNOLOGY OFFICER
RIHARDS EDZUS REUTS SENIOR CONSULTANT
SAULCERITE EKSTELE SENIOR CONSULTANT
LAURA MEZSARGA ADMINISTRATOR
LINDA MIKELSONE ASSOCIATE
ANITA RUDZITE SENIOR CONSULTANT
ANNIJA MATISA MARKETING SPECIALIST
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SUSTAINABILITY ACTION TEAM WHY SUSTAINABILITY MATTERS TO YOU?
Sustainability matters because it's not just about feeling sorry for the animals who suffer as the first victims of our actions. It extends to the oceans where fish get trapped in plastic bottles and dolphins or seals become entangled in wires and cloth. It's also about the ozone hole, worsened by burning garbage. Setting an example matters; everyone may deceive, but Europe has the chance to lead the way, even as we acknowledge that we're not 100% green and must genuinely reflect on it. SAULCERITE EKSTELE, SENIOR CONSULTANT
Caring for sustainability in our workplace isn't merely an option; it's our duty. It offers us the opportunity to create a positive global impact while finding purpose in the meaningful task of shaping a more environmentally responsible future. RIHARDS EDZUS REUTS, SENIOR CONSULTANT
Sustainability isn't just about protecting the planet; it's about safeguarding our future and contributing to a world we're proud to leave for generations to come. SABINE SMILTS, ASSOCIATE SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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SUSTAINABLE DEVELOPMENT GOALS UN Sustainable Development Goals (SDGs) provide a unified language and goals, globally recognised, that business can align to. The SDGs were officially endorsed by 193 countries and 12,000+ companies have since signed up to the UN Global Compact, a movement aimed to mobilise companies and stakeholders towards achieving the goals.
End poverty in all its forms everywhere.
End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
Ensure healthy lives and promote wellbeing for all at all ages.
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
Achieve gender equality and empower all women and girls.
Ensure availability and sustainable management of water and sanitation for all.
Ensure access to affordable, reliable, sustainable and modern energy for all.
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
Reduce inequality within and among countries. Make cities and human settlements inclusive, safe, resilient and sustainable.
Ensure sustainable consumption and production patterns.
Take urgent action to combat climate change and its impacts.
Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
Strengthen the means of implementation and revitalise the global partnership for sustainable development.
halt biodiversity loss.
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01.INTRODUCTION
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MATERIALITY
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ENVIRONMENT
DEFINING OUR FOCUS POINTS, ROADMAP AND OBJECTIVES As some of the most material topics are strongly related, we decided to cluster them. This resulted in the focus areas: carbon neutrality, growth and development, wellbeing, inclusive diversity, corporate governance and responsible leadership, partnerships and community investments and last but not least exceptional client services. In this way, we developed a clearer focus on which topics we as a company should concentrate on via the materiality analysis.
SOCIAL
BDO LATVIA SUSTAINABLITY
To embed sustainability and sustainable thinking in the heart of the company and allow for real actions and efforts to take place on all our focus areas, a roadmap and action plan for each of the 3 axes and the corresponding focus points were developed.
GOVERNMENTAL
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MATERIALITY DEFINING OUR MATERIAL FOCUS POINTS MATERIALITY ANALYSIS
Our internal stakeholders, i.e. our leadership team and employees, were represented via the sustainability core team and ambassadors who were involved in a materiality survey. To capture the expectations of our external stakeholders and make sure their interests are covered, a media and trend analysis was used.
High
HIGH M ATERIALITY
SDG12: Decrease usage of paper
Importance of BDO on the topic
As sustainability is a broad concept, we have made the decision to focus our efforts on the most relevant (material) topics for us as a company. We define material topics as the topics that are most important to our stakeholders and where we as BDO can have a substantial impact on.
M EDIUM M ATERIALITY SDG12:Reduce our carbon footprint
LOW M ATERIALITY
SDG12: Increaseour green participation initiatives SDG8:Promote diversity and inclusion SDG4:Charitable contributions and support to students
The materiality analysis resulted in the matrix shown right.
SDG9: Client satisfaction
SDG1 & SDG15: Social initiatives for the common good SDG16: Regulatory Compliance
SDG11:Internal Risk Management and Resilience
SDG7 & SDG12: Reduce our utilities volume SDG8: Responsible Operations
SDG16: Anti-Money Laundering Compliance
SDG8: Decrease employee turnover
SDG8: Continous investment in employee development
SDG8:Pro-bono work for entities withsocial
SDG16: Tax Compliance
Low
Low
Importance for our stakeholders
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
High
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OUR GOALS AREA
ENVIRONMENTAL
GOAL
KEY PERFORMANCE INDICATOR FOR 2024
CORRESPONDING UN GOAL
Decrease usage of paper
Reduce amount of paper ordered from currently 15 packs per month to 12 per month
SDG 12
Reduce our carbon footprint
Increase sustainable commute or remote working choices by 5%
SDG 12
Reduce our utilities volume
SDG 7, 12
Pro-bono work for entities with social
Reduce water and electricity consumption by 10% Implement at least 3 eco friendly projects throughout the year, including one mandatory tree planting event Implement 4 pro-bono projects yearly (1 per each service line)
Social initiatives for the common good
Organize 1 annual animal shelter visit, donate food, clothing and toys to orphanage
SDG 1, 15
Charitable contributions and support to students
Provide monetary support to "Jauno Mākslinieku gada balva" of 2000€ Provide monetary support to “K.Dišlera Tiesu procesu izspēles”
SDG 4
Increase our green participation initiatives
SOCIAL
SDG 12 SDG 8
Become a member of Latvian Diversity Charter
Promote diversity and inclusion
Even the workload – 80% utilization rate for higher-ranked employees Achieve 85% rating in employee satisfaction survey
SDG 8
Continous investment in employee development
Dedicate at least 40 hours in employee training per employee per annum
SDG 8
Decrese employee turnover
Decrease turnover by 5% achievieng 35% turnover rate
SDG 8
Client satisfaction
Achieve Net Promoter Score at least 80% in all service lines Increase the percentage of repeat clients
SDG 9
Regulatory Compliance
Ensure timely publication of our Transparency report in Latvian and English within XX months after financial SDG 16 year-end
Anti-Money Laundering Compliance
Conduct thorough CDD for 100% of high-risk customers and achieve a 100% completion rate for AML training among relevant employees
SDG 16
Tax Compliance
No overdue tax debts for either of the companies
SDG 16
Internal Risk Management and Resilience
1) Number of identified risks 2) risk levels (high, low, intermediate) 3) evaluate communication of those risks to stakeholders
SDG 11
Responsible Operations
Measure the level of compliance with the company's code of conduct and ethical guidelines - 1) employee surveys 2) incident reporting, 3) internal audits. Receive the highest rating from organizations we are under SDG 8 control – Ministry of Finance, the Latvian Association of Sworn Auditors and BDO Global.
GOVERNMENTAL
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ENVIRONMENTAL OUR STORY SO FAR OUR STRATEGY OUR OBJECTIVES
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OUR STORY SO FAR Recognizing the significance of our collective roles in preserving our planet's resources, we underscore the importance of responsible actions to ensure a sustainable future.
At BDO Latvia, we've embraced environmental responsibility through a dual approach.
CORPORATE ETHOS ETHICS AND CULTURE
ECO-ENGAGEMENT PROGRAM
At BDO Latvia, we prioritize environmental responsibility as part of our culture. We encourage employees to participate in eco-friendly activities through training, reducing their carbon footprint, and aligning their daily choices with our ecovalues. For instance, we've significantly reduced paper usage in the past year through departmental competitions to minimize waste, reflecting our commitment to a green corporate culture.
In addition to making sustainability a core value, we've created a unique Eco-Engagement program to demonstrate our commitment. This program, part of our comprehensive environmental initiatives, includes annual activities like reforestation and clean-up drives. Through active participation in these initiatives, our employees help fulfill our promise to protect the environment for future generations.
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OUR STORY SO FAR OUR TREE PLANTING AND SEA SHORE CLEANING EVENTS THROUGHOUT THE YEARS
"Year after year, our tree planting and sea shore cleaning events garner more and more support from the inside and out. We want a greener, cleaner planet and we want to be driving the change in this regard."
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01.INTRODUCTION
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OUR STRATEGY MISSION
5 FOCUS AREAS
Our goal is to become carbon-neutral and produce zero waste by 2028. We aim to create a harmonious relationship between our operations and the environment, setting an example for sustainable practices in the industry.
1
Paper Reduction: We are dedicated to minimizing paper consumption by embracing digital alternatives and promoting responsible printing practices, contributing to a greener future.
2
Energy Conservation: We're committed to energy efficiency, which means adopting technologies and practices to use less energy and reduce our environmental impact.
3
Streamlined Waste Management: Innovative waste management approaches drive us to minimize waste generation, maximize recycling efforts, and actively contribute to a circular economy.
APPROACH To reach our main goal, we'll focus on implementing sustainable practices regarding across our organization. This includes reducing paper use, saving energy, and improving waste management.
Our work contributes to the following SDGs
4 5
Carbon Footprint Reduction: We are steadfast in our efforts to achieve carbon neutrality, working diligently to reduce our carbon footprint and mitigate our impact on the environment. Reforestation Initiatives: Committed to nurturing our planet, we engage in reforestation projects to restore ecosystems, enhance biodiversity, and combat climate change.
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01.INTRODUCTION
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OUR OBJECTIVES
ACTIVELY CONTRIBUTE TO ENVIRONMENTAL PRESERVATION THROUGH MINIMUM 3 ECOFRIENDLY PROJECTS
MINIMIZE OFFICE ENERGY CONSUMPTION BY MONITORING ENERGY USAGE ON A MONTHLY BASIS
GRADUALLY ACHIEVE A PAPER-LESS OFFICE MONITORING PAPER ORDERS AND ACHIEVING 0 PAPER BY 2028
Our aim is to launch three eco-friendly projects annually. In 2023, we completed two projects, planting over 2,000 trees.
After identifying our annual energy consumption at 22,159 kWh, we are actively strategizing to achieve a 10% reduction by 2025.
After identifying our paper usage at 468 kilograms of paper, we are committed to reducing this by ordering 13 paper packs per month instead of 15.
1. By the beginning of 2024, plan all green initiatives. Identify suitable areas for planting, considering ecosystem restoration and biodiversity enhancement. 2. Engage employees and local communities in reforestation efforts through volunteering, tree planting and educational events. 3. Implement a monitoring system to track the number of projects and their impact over 2024 (i.e. number of planted trees)
1. Conduct an energy audit to identify areas for energy-saving opportunities. 2. Gradually replace all traditional light bulbs with eco-friendly alternatives. 3. Install automated lighting system in the office kitchen and conference rooms to reduce the electricity used. 4. Monitor energy usage and evaluate the impact of the transition on our carbon footprint.
1. Facilitate remote work options to reduce paper dependency for in-office tasks and introduce quotas for printing per individual. 2. Embrace paperless meeting practices by providing agendas and materials digitally, and encouraging participants to bring electronic devices for notetaking. 3. Opt for digital invoices, order confirmations, and communications. SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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OUR OBJECTIVES
OPTIMIZE WASTE DISPOSAL PRACTICES AND IMPLEMENT A 360 RECYCLING SYSTEM BY 2025
CULTIVATE SUSTAINABLE COMMUTING PRACTICES THAT REDUCE CARBON EMISSIONS BY MINIMUM HALF OF PERSONNEL BY 2028
IMPLEMENT WATER-SAVING INITIATIVES TO ACHIEVE A 20% DECREASE IN WATER CONSUMPTION BY 2025
BDO Latvia currently educates employees on proper waste sorting practices and the significance of recycling. 1. Set recycling targets and switch to biodegradable materials gradually per department. 2. Implement a comprehensive waste sorting system to separate paper and glass from other waste streams. 3. Regularly review waste management practices to ensure compliance.
Currently we produce 11.918 tonnes of CO2 emissions. Our goal is to reduce this number by 2 tonnes per year. 1. Promote walking, cycling, carpooling, and the use of public transportation 2. Organize bike-to-work challenges or events, providing facilities such as bike storage for employees who choose to cycle. 3. Acknowledge and reward employees who consistently choose eco-friendly commute options through recognition programs and incentives.
Currently our water usage stands at average 264m3, which we plan to decrease within the next two years. 1. Identify processes that can use recycled water, such as cooling systems or cleaning, and implement systems to recycle and reuse water. 2. Conduct a comprehensive audit of water usage across facilities to identify areas of high consumption and potential inefficiencies. SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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OUR CARBON FOOTPRINT A carbon footprint is like a measurement that shows how much carbon dioxide (CO2) and other greenhouse gases we release into the air when we do things like driving cars, using electricity, or making products. These gases are a big part of what causes climate change and global warming. So, when we talk about someone's "carbon footprint," we're basically talking about how much they contribute to the problem of climate change by releasing these gases into the atmosphere. The goal is to reduce our carbon footprint to help protect the environment.
SCOPE 3 Other indirect emissions from value chain SCOPE 2 Indirect emissions from purchased energy
BDO LATVIA EMPLOYEE CARBON FOOTPRINT
11.918 tonnes of CO2
In order to calculate a crucial category of our Scope 1 emissions we used an internal survey for each employee's carbon footprint, considering their commuting method, remote work days, and emission factors and which summed the overall CO2 emissions of our employees' commute.
SCOPE 1 Direct emissions from your operations
Emissions you can control Emissions you can influence
FOR THE CAPTURE OF 1 TONNE OF CO2 EMISSIONS 50 TREES MUST GROW FOR ONE YEAR
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OUR CARBON FOOTPRINT Although only 17% of our employees use personal vehicles, they contribute to 65% of BDO Latvia's total carbon footprint. Car sharing emissions nearly match those from public transport, even though there are 40% fewer employees using this mode of transportation. Approximately 34% of our employees commute to work by either biking or walking, indicating a strong eco-friendly mindset within our staff.
How BDO Latvia employees get to the office 17%
Contribution to yearly Carbon emissions Personal vehicle
65%
27% Personal vehicle
Public transportation
21%
Public transportation Car-share
Car-share
14%
Bicycle
7%
Walking
Bicycle
0%
Walking
0%
3% 47%
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01.INTRODUCTION
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OUR CARBON FOOTPRINT 30% of our employees stated they would be interested in bike-parking spots closer to office. By creating such spot we could reduce our carbon footprint by 4 tonnes.
80% of our employees stated they would support a “Paper-Free BDO”. Considering the majority of surveyed employees feel comfortable with transitioning towards a paperless work environment we will pursue a new strategy that will hold each department accountable for their paper usage and simultaneously accommodate our employees’ needs. How can we achieve this? The four key steps to “Paper-Free BDO”: 1. Assess each department's paper usage to understand why and where it's prevalent (work-flow analysis, survey on paper habits, paper tracking) 2. Propose digital and viable options that maintain or improve quality (optimize digital viewing, implement accessibility features, E-Readers)
3. Roll out solutions incrementally, starting with pilot projects. 4. Announce a final transition date with adequate training and support.
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01.INTRODUCTION
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SOCIAL OUR STORY SO FAR OUR STRATEGY OUR OBJECTIVES GROWTH & DEVELOPMENT WELLBEING INCLUSIVE DIVERSITY
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OUR STORY SO FAR
"Sustainability initiatives in a company not only foster a healthier environment but also nurture employee wellbeing, creating a harmonious and purpose-driven workplace."
EVA PLAVEJA BDO LATVIA HR DIRECTOR
Our social responsibility program has two key focuses: Inward Impact, where we prioritize employee well-being and growth, and Outward Impact, where we work to uplift communities and promote sustainability. This dual-direction ensures a 360 degree approach to social responsibility.
SUSTAINABILITY SUSTAINABILITYREPORT REPORTBDO BDOBELGIUM LATVIA |FISCAL |FISCAL YEAR 2022 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR STORY SO FAR OUTWARD IMPACT
COMMUNITYENGAGEMENT We actively volunteer. Our employees engage in various volunteering initiatives, including mentoring students, leading workshops for underserved communities, and extending support to local charities, particularly "K.Dišlera Tiesu procesu izspēles."
ARTS AND CULTURE EMPOWERMENT YOUTH DEVELOPMENT We led the nationally known "Young Artists Award" which contributes 2000€ yearly to Young Artists and invests into the future art generations. We not only invest but also participate in local art programs, galleries, and cultural events, promoting creativity and providing opportunities for artists to showcase their work and inspire the community.
Our collaborations range from ELSA Organization to active presence in the BA School where we offer mentorship, career guidance, and skill development programs, helping young individuals build a strong foundation for their futures.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR STORY SO FAR INWARD IMPACT
HEALTH-CENTRIC WORKPLACE Employees at BDO Latvia have a discounted access to gym facilities "MyFitness", dedicated Health Days, access to workshops and seminars that focus on physical, mental, and emotional well-being. At BDO our staff are always encouraged to run either the yearly marathon or engage in other exemplary sport activities. Beyond these initiatives, we encourage a healthy lifestyle by providing wholesome fruits to promote physical wellness.
SKILL DEVELOPMENT FLEXIBLE WORK All our departments provide the opportunities for staff to pursue either department-direct certifications such as ACCA in the Assurance Service Line or the Bar Exam at our legal team, or indirect certifications which allow our employees to choose training programmes and courses of their choice to pursue continuous learning opportunities. In their application for company-covered courses xxx% received full-waiver approval.
Our employees are encouraged to work 2 days a week remotely, where each department has adjusted its flexibility policy to the employees' and service line needs. Our employees often find themselves working remotely, even on different continents, as we value their contributions regardless of location.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
PRO BONO PROJECTS THE CHILDREN'S HOSPITAL FOUNDATION The Children's Hospital Foundation takes care of the children's health through raising help from general public. They are a reliable partner to children, their parents, our state, medical staff and general public. Since late 2022, our audit team has been honored to work closely with the Children's Hospital Foundation, fostering a rewarding partnership. The Foundation's unwavering dedication to improving the lives of children deeply aligns with our values, making our collaboration particularly fulfilling. We have provided comprehensive audit services to ensure financial transparency and integrity, witnessing the Foundation's positive impact on the community. Open communication and a shared commitment to excellence have characterized our partnership, making our audits efficient and effective. We are excited about our future collaborations, as we work together to support the Foundation's mission and improve pediatric healthcare.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
PRO BONO PROJECTS THE CHILDREN'S HOSPITAL FOUNDATION Last year, BDO Latvia celebrated a significant milestone – its 15th anniversary. To commemorate this achievement, we decided to make it a special occasion by organizing a charity auction dinner. Understanding the importance of nurturing a safe and supportive environment for the next generation, we approached the Children's Hospital Foundation with an idea to host a charitable event. The goal was to raise funds that would be dedicated to improving the health and daily lives of children.
40’000€ WERE COLLECTED IN DONATIONS
At the heart of our charity auction dinner was the opportunity for our guests to contribute to this noble cause. Those in attendance could choose to make donations while gaining access to a range of cultural and artistic events, both within Latvia and internationally. The options were diverse, from attending concerts and art exhibitions to experiencing sports events firsthand. Moreover, the auction featured an array of artworks created by talented Latvian artists, giving our guests the chance to acquire unique pieces while simultaneously supporting the growth of this important sector.
Our initiative not only celebrated our 15 years of existence but also underscored our commitment to making a positive impact on the community. It was heartwarming to witness the generosity of our guests and their eagerness to participate in this endeavor. Together, we not only celebrated our past but also invested in a brighter future for the children who will shape tomorrow.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
GROWTH & DEVELOPMENT TRAINING EXPENDITURE PER COMPANY
6050 12380
4000
20%
OF TOTAL EXPENDITURE SPENT FOR EMPLOYEE CERTIFICATION
TRAINING EXPENDITURE PER EMPLOYEE CATEGORY
BDO ASSURANCE
BDO LAW
BDO LATVIA 13842
TOP MANAGEMENT
TOTAL TRAINING EXPENDITURE LAST YEAR
22,430€
MID MANAGEMENT & MANAGEMENT
3078
SENIOR CONSULTANT
2982
CONSULTANT
2528
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
04. SOCIAL
03.ENVIRONMENTAL
05. GOVERNANCE
INCLUSIVE DIVERSITY EMPLOYER FACTS & FIGURES Here are the most important facts & figures
PERCENTAGE OF EMPLOYEES BY GENDER
PERCENTAGE OF EMPLOYEES BY AGE GROUP
PERCENTAGE OF EMPLOYEES PER EMPLOYEE CATEGORY BY GENDER
4%
11% 58% 39%
42%
74% 78% 46%
57%
43%
MANAGEMENT
Baby Boomers
1946-1964
Gen X
1965-1980
Millennials
1981-1996
Gen Z
1997-2012
26%
22% MID MANAGEMENT
SENIOR & JUNIOR CONSULTANT
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
WELLBEING At BDO, we want people to feel at their best. The wellbeing of employees is a priority because they are the heart of BDO. We support them in working to have a fulfilling life - not the other way around.
WE WANT TO OBTAIN THIS BY ACTIONS ON 3 LEVELS:
INDIVIDUAL OUR CURRENT STATUS At BDO we value our people, and we want to provide a friendly and personal working environment in which our people feel good. While our employee satisfaction metrics are high, our assurance figures are at lower standing which requires additional enhancement measures. EMPLOYEE SATISFACTION RATE BY DEPARTMENTS 79%
83%
83%
• Taking an active role with a focus on ownership for wellbeing insight and prevention
MANAGEMENT • Increasing trust and openness to make wellbeing even more open to discussion
81% 65%
• Maintaining focus on team cohesion
ORGANISATION
• Walking the talk • Anchoring belonging to our BDO organisation and fitting into our BDO culture, diverse actions
• Further broadening financial wellbeing vision • Ensuring our wellbeing approach is intertwined with our daily activities
TAX
BSO
LAW
ASU
BUSINESS SUPPORT SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
04. SOCIAL
03.ENVIRONMENTAL
05. GOVERNANCE
INCLUSIVE DIVERSITY FAMILY FRIENDLY COMPANY At BDO Latvia, we hold a deep regard for our staff members and their loved ones. Our commitment is reflected in an array of advantageous offerings designed to enhance the well-being of families and foster an equilibrium between professional and personal spheres. We firmly believe in supporting our employees through various benefits that facilitate a smoother family life while also nurturing a harmonious synergy between their professional and personal commitments.
KIDS’ PLAYROOM
€500 ALLOWANCE AFTER THE BIRTH OF A CHILD
We have a designated room at our workplace where employees' children can play safely if brought along to work.
We are delighted with new family members and provide a €500 allowance to help cover initial expenses.
KID'S PARTIES TWICE A YEAR AND GIFTS ON HOLIDAYS We celebrate the joys of family life by hosting kid's parties twice a year and providing gifts on holidays, creating memorable moments for employees' children.
FAMILY HEALTH INSURANCE We cover employees' health insurance policies and extend the opportunity to purchase insurance for their family members, ensuring security and care for everyone.
WEDDING BONUS
We offer a choice after weddings either two paid days off or a €500 bonus.
DAY OFF FOR HEALTH CHECK-UPS We focus on the well-being of our employees. We offer an additional day off per year for the employee to undergo health check-ups.
UNLIMITED REMOTE WORK DURING CHILD ILLNESS We offer the option to work from home so employees can dedicate time to their children for as long as they need.
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
INCLUSIVE DIVERSITY FAMILY FRIENDLY WORKPLACE To encourage all types of employers to care about their employees' ability to harmonize their private family and professional work life, since 2020 the Society Integration Fund has started to develop and implement the "Family Friendly Workplace" program. The goal of the "family-friendly workplace" initiative is to promote the development of a work environment culture in Latvia that is empathetic, humane, and understanding while offering tools for both the assessment of the existing work environment and financial assistance in the implementation of various support measures for employees. For a large part of society, the time spent at work occupies a significant part of life. Often, more energy is devoted to the fulfillment of professional duties, so combining work and family life can become difficult.
Therefore, caring for employees is one of the most important tools for managers to ensure the sustainable functioning of their organization.
The most visible benefits of implementing family-friendly employment principles: • • • •
higher employee loyalty; lower employee turnover and related costs; greater employee interest and productivity; in the long term - a better reputation of the employer and easier attraction of employees.
The implementation of such an approach also has indirect, but significant consequences for society, as it benefits all involved parties - the children of workers, parents, employers, and the entire society as a whole.
BDO Latvia is proud to be the member of this initative since 2022.
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
BDO YOUNG ARTISTS AWARD BDO Latvia, in cooperation with the Latvian Academy of Arts (LMA) and the Contemporary Art Center "KIM?" for the fourth year in a row, will announce the "BDO Young Artists Award" competition for young artists. This will be the fourth year that BDO Latvia announces the award for the support of young artists, thus promoting the traditions of culture and art patronage in Latvia. Last year, Liene Rumpe won the laurels with the art work "Ninja Exercises of the Painter", whose central issue was related to the theme of war and the visual culture of war. In 2021, the winner of the competition was Reinis Bērziņš, a graduate of the subfield of painting, with the work "///(((!"), and in 2020, the main prize was won by the artist Amanda Ziemele with a monotype from a series of works at the personal exhibition Neunauge, 2019, (Ekernforde, Germany). Winner of the award receives monetary support worth 2000€.
We focus on the well-being of our employees. We offer an additional day off per year for the employee to undergo health check-ups.
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR STRATEGY AND MISSION At BDO, our aim is to ensure that our employees experience their optimal well-being while at the workplace. This is the reason we foster an environment of open communication and continuous improvement. Every employee is provided with the necessary resources and assistance to create a customized path for their own growth, aligning with their individual and career-related requirements.
MISSION Our long-term goal is to enhance social well-being and community impact that support employees, entities with social benefit, and the broader community.
STRATEGY To reach our social long-term goal, we'll emphasize initiatives like creating a family-friendly workplace, investing in employee development, supporting health and wellness, and encouraging charitable contributions. Our aim is to create a positive and caring environment for our employees and the communities we serve.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
04. SOCIAL
03.ENVIRONMENTAL
05. GOVERNANCE
OUR OBJECTIVES Invest at least 40 hours per employee per annum in employee training and professional development.
1.
Increase community engagement initiatives by 3 new projects per annum.
2.
3.
Aim to decrease employee turnover by 5% by 2024 reflecting improved employee satisfaction and a positive work environment
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR OBJECTIVES
INVEST AT LEAST 40 HOURS PER EMPLOYEE PER ANNUM IN EMPLOYEE TRAINING AND PROFESSIONAL DEVELOPMENT.
• • • • •
Create tailored training programs for various roles and career stages. Work with industry experts and internal mentors to cover technical and soft skills. Measure training hours per employee and assess program effectiveness. Collect participant feedback for ongoing improvements. Reward employees who engage in professional development by sponsoring certifications or coursework, like ACCA or the Bar Exam.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR OBJECTIVES
•
AIM TO DECREASE EMPLOYEE TURNOVER BY 5% BY 2024 REFLECTING IMPROVED EMPLOYEE SATISFACTION AND A POSITIVE WORK ENVIRONMENT.
• • •
Use regular feedback methods like surveys or group discussions to learn about employee concerns. Look for common issues causing turnover in the feedback and take action. Analyze exit interview data to find patterns and reasons for turnover. Make improvements based on these insights, like addressing managerial problems or worklife balance.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR OBJECTIVES
INCREASE COMMUNITY ENGAGEMENT INITIATIVES BY 3 NEW PROJECTS PER ANNUM
• • • •
Host more community events or activities. Encourage employee volunteer programs. Partner with local organizations for community projects. Sponsor and support community events.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
GOVERNANCE OUR STORY SO FAR OUR STRATEGY OUR OBJECTIVES
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
04. SOCIAL
03.ENVIRONMENTAL
05. GOVERNANCE
INCLUSIVE DIVERSITY EMPLOYER FACTS & FIGURES Here are the most important facts & figures
PERCENTAGE OF EMPLOYEES BY AGE GROUP AND COMPANY BDO LATVIA
BDO LAW
BDO ASSURANCE 9%
6%
7%
21%
29%
41% 50% 44% 50%
43% Baby Boomers
1946-1964
Gen X
1965-1980
Millennials
1981-1996
Gen Z
1997-2012 SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR STORY SO FAR Our commitment to sound governance principles over the years unfolds through three strategic focuses:
1 2 3
ROBUST CONTROLS AND COMPLIANCE We've strengthened our foundation with internal controls and compliance measures, with an ethical culture for integrity. STAKEHOLDER TRUST AND TRANSPARENCY
Transparency is our cornerstone. We enhance stakeholder confidence through transparent reporting and open communication.
LEGAL ADHERENCE Our commitment to legal compliance is firm. By aligning with Latvian laws and the Anti-Money Laundering Act, we ensure a secure business environment and continually work on our regulatory understanding.
Our story reflects a journey marked by dedication, transparency, and accountability, and we're poised to continue writing the chapters of governance excellence.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR STRATEGY Our organization's mission and values shape our policies and governance strategy. We've considered global corporate governance principles, national and international ethical codes, and standards from professional institutes to craft our approach.
ETHICS & INDEPENDENCE: A PILLAR OF PROFESSIONALISM Maintaining integrity and impartiality is non-negotiable for us. Every BDO colleague adheres to strict independence policies and procedures, ensuring the highest standards in the provision of our services. To promote a culture of independence compliance and monitor its application, each BDO firm appoints an Ethics & Independence Leader.
OUR MISSION: Our long-term goal is to uphold strong corporate governance practices and ensure transparency in our operations while prioritizing client satisfaction.
DATA PROTECTION & PRIVACY: SAFEGUARDING CONFIDENTIALITY AND COMPLIANCE In our role as a professional services provider, safeguarding client data is paramount. Our commitment to data protection is enshrined in our efforts to comply with the European General Data Protection Regulation (GDPR). Recognizing the significance of data privacy, we offer a suite of services to assist companies in achieving GDPR compliance, reinforcing our role as a data privacy service provider.
GLOBAL COLLABORATION FOR INDEPENDENCE ASSURANCE Operating across multiple jurisdictions, BDO maintains a worldwide database of restricted entities. This resource serves to prevent the engagement in prohibited non-assurance services or investment in these entities. Through the Global Independence and Conflict of Interest tool, BDO firms collaborate on service provision, ensuring alignment before client engagement.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR STRATEGY
ELEVATING INDEPENDENCE CHECKS IN BDO LATVIA In BDO Latvia, Independence and Conflict of Interest checks are meticulously carried out by our dedicated Independence Team. This practice enhances our ability to assess and monitor potential risks of Independence or Conflict of Interest issues, not only at the outset of a client relationship but also with every new project for existing clients.
INTEGRITY IN ACTION: OUR ONGOING COMMITMENT Our commitment to integrity, impartiality, and responsibility forms the cornerstone of our activities and client relationship s. Upholding the highest standards for independence is not only a professional obligation but also a reflection of our dedication to long-lasting client relationships.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
OUR OBJECTIVES Our commitment to sound governance principles is at the core of our business operations, ensuring transparency, accountabilit y, and trustworthiness.
OBJECTIVE 1
OBJECTIVE 3
OBJECTIVE 4
Prepare and publish a comprehensive Transparency report in both Latvian and English within 5 months after the financial year-end.
Aim to achieve 80% client satisfaction through our Client ConnectionSurvey based onNPS metrics.
Implement rigorous client selection processes to ensure we work withclients whose values align withours.
• Develop a structured feedback collection mechanism through surveys, interviews, and client interactions.
• Conduct diligent checks on potential clients to assess their credibility, financial stability, and adherence to regulatory requirements.
• Engage external experts to conduct an independent review of the report's content. • Disseminate the report through various channels to ensure broad stakeholder access.
• Create a dedicated team responsible for analyzing feedback and identifying actionable insights.
• Implement continuous improvement initiatives based on client feedback to enhance service quality.
• Establish a review panel to assess potential clients against the defined criteria.
• Utilize relevant industry databases and sources to verify financial stability.
OBJECTIVE 2 Conduct 4 number of corporate governance trainings yearly to ensure that employees are well-informed onCG. • Develop a diverse range of training modules covering corporate governance fundamentals.
• Utilize interactive workshops and case studies to enhance staff engagement and understanding. SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
03.ENVIRONMENTAL
04. SOCIAL
05. GOVERNANCE
INDEPENDENCE BDO doesn’t compromise on independence. Integrity, impartiality, responsibility are undisputable criteria to carry out our activities and to ensure a long-lasting relationship with our clients. Standards for independence are shaped by legislation, regulations, professional requirements and public expectations. Maintaining independence and appearance is a professional obligation to which all our professionals within BDO must adhere on a yearly basis. All our colleagues are required to comply with the independence policies and procedures which address professional and regulatory requirements related to the provision of our services, business and employment relationships, and financial interests. Each BDO firm also has an Ethics & Independence Leader to reinforce and promote the importance of compliance with independence and related quality control standards.
Given that we service clients that operate across multiple jurisdictions, BDO has a worldwide database of each BDO firm’s restricted entities, including listed companies and other public interest entities.
This database is readily accessible to all partners and staff with the objective of preventing the performance of prohibited non-assurance services or investments in these entities. The Global Independence and Conflict of Interest tool enables BDO firms to collaborate on service provision prior to client acceptance. Within BDO Latvia, Independence and Conflict of Interest checks are the exclusive prerogative of the Independence Team and are a mandatory step before accepting a project. In doing so, we are ensuring that the risks of any potential Independence or Conflict of Interest issues are more adequately assessed and monitored, not just at the start of a client relationship, but also at the start of every new type of project for existing clients.
We created and thoroughly follow an extensive ‘Know your client’ procedure.This is a policy, translated into a manual, that defines a structured procedure: before the acceptance of a client, a ‘know your client’ survey should be completed to prevent fraud or doing business with organisations who are acting in an unethical way.
SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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01.INTRODUCTION
02.STRATEGY
04. SOCIAL
03.ENVIRONMENTAL
CLIENT SATISFACTION & BUILDING EXCELLENT CLIENT RELATIONSHIPS The satisfaction of our clients is the first barometer of our activity.
The importance we attach to strong client relationships is also reflected in our new initiative – the Client Saytisfaction Survey. Although our clients are regularly asked on their perception of our services and our brand, we are implementing a new approach which allows for more accurate responses. Following the completion of our projects, we proactively administer specialized survey designed to gauge client satisfaction using the Net Promoter Score methodology. It not only provides us with input for the NPS score, but also specific qualitative feedback related to the type of solution offered and their overall perception of our brand. We aim to have this new procedure and survey in place by 2024 by covering: • Overall satisfaction • Questions regarding how our clients perceive BDO • Possibility to provide feedback/advicefor us
05. GOVERNANCE
BDO DNA Committed Being thoughtful about our professional standards and taking ownership of what we do
Pragmatic
To the point and hands-on while keeping complex matters simple
Personal
Close to our clients and to every one of our colleagues
0
1
2
3
4
5
6
7
8
9
10
Respectful Making everyone feel welcome, heard andvalued in a sustainable environment
Dectrators
Passives
Promoters SUSTAINABILITY REPORT BDO LATVIA |FISCAL YEAR 2022
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«The best way to predict the future is to create it» Abraham Lincoln