EY Achieves Highest Growth in Nearly Two Decades, Announces Record Global Revenue of US$45.4 Billion | EY
- US$3.2 billion invested in audit quality, innovation, technology and people in FY22 – part of a three-year US$10 billion commitment announced in FY21
- Over 81 million lives positively impacted through the EY Ripples corporate responsibility program
- Carbon negative status achieved in FY21, on track to achieve net zero ambition in 2025
- Looking ahead, EY leaders have made the decision to move forward with partner votes for the initiative to split into two separate multidisciplinary organizations
EY today announces combined global revenues of US$45.4 billion for the fiscal year ending June 2022 (FY22), an increase of 16.4% in local currency (13.7% in US dollars) . It was one of the most successful years in the organization’s history, with the strongest growth seen in nearly two decades attributed to the EY NextWave strategy of delivering long-term value to employees, to EY customers and society.
EY also today released its Value Realized report, a comprehensive annual report detailing financial performance; environmental, social and governance (ESG) efforts; and key areas of collaboration to generate social impact.
Carmine Di Sibio, CEO of EY Global, says:
“EY has achieved significant growth and continues to operate from a position of strength. I am proud that our growth is based on creating value for stakeholders, executed within the framework of the EY NextWave strategy. We have tremendous momentum right now, and growth means opportunity – for EY employees, customers and wider stakeholders.
Strong performance across all service lines
All EY service lines delivered strong revenue growth in FY22. The board experienced exceptional growth of 27.1% (local currency) and 24.5% (USD) to $13.9 billion. Strategy and transactions also saw significant growth of 25.4% (local currency) and 22.8% (USD) to $5.9 billion.
Insurance grew 8.9% (local currency) and 6% (USD) to $14.4 billion. Tax Services line revenue increased 10.5% (local currency) and 7.9% (USD) to $11.3 billion.
Continuous investment in innovation
This year, EY invested $3.2 billion in audit quality, innovation, technology and people, as part of a three-year, $10 billion commitment announced in FY21. This includes US$1 billion in a next-generation assurance technology platform – part of a sustained effort to deliver high-quality audits and respond quickly to changing expectations regulators, governments, standard setters, audit committees and boards of directors.
Growing investment in sustainability and technology training
In FY22, EY invested $300 million in training, delivering more than 59 hours of training per employee on average. The EY organization now offers over 250 learning accreditations – known as EY badges – across a range of disciplines: including artificial intelligence (AI), blockchain, impact entrepreneurship, supply chain, DE&I and sustainable business practices, in addition to technical training in accounting and taxation.
This year, EY announced two new master’s degrees in collaboration with Hult International Business School. The new qualifications – in Business Analytics and Sustainability – are open and free to all EY employees, alongside the EY Tech MBA from Hult. 95 people obtained an EY Tech MBA and 10 people graduated from the first class of the Master in Business Analytics this year. A total of 130 people have graduated from the Tech MBA and master’s programs. EY also opened EY Tech University in Palo Alto, California, offering programs on disruptive technologies for senior executives and clients.
Driving the sustainability program
EY went carbon negative globally in FY21, a major and significant step towards achieving the organization’s ambition to become carbon zero in 2025. EY continues to be carbon negative and remains on track to achieve this net zero ambition, with a 56% reduction in emissions. recorded in FY22, compared to the baseline established in FY19.
In addition to moving forward to become more sustainable, the EY organization is focused on building alliances and creating innovative ecosystems to address the world’s greatest climate challenges. EY people have provided EY Sustainability solutions to more than 3,000 clients, including technology solutions through alliances with Enablon, IBM, Microsoft and SAP.
In addition, EY has developed a specific methodology for providing assurance on non-financial reporting based on the internationally accepted standard on assurance engagements (ISAE 3000) published by the International Auditing and Assurance Standards Board (IAASB). The organization has also issued new guidance on auditing financial reports to help EY audit teams consider the effects of climate-related risks on financial statements.
A focus on EY employees
This year, EY evolved its approach to diversity and inclusivity by explicitly integrating equity. Now called Diversity, Equity and Inclusion (DE&I), it reinforces the organization’s commitment to creating an inclusive environment and breaking down barriers to equal outcomes so everyone can thrive. EY continues to be a purpose-driven organization with a culture strongly committed to DE&I.
In FY22, 35% of promotions to Partner, Principal, Executive Director, and Director (PPEDD) were women. Overall, there have been more than 2,400 promotions to PPEDD this year – the largest cohort ever for the EY organization.
To better understand and respond to the needs of EY employees and ensure hidden inequalities are uncovered and addressed, EY has expanded its Self-ID capabilities. This expanded range of choices that EY employees can complete under “personal information” allows EY to better understand the EY population, furthering EY’s commitment to fostering greater fairness in related areas. career development by monitoring and analyzing demographic trends and gaps.
Building a better world of work
EY’s global organization has set an ambitious goal of positively impacting one billion lives by 2030 through the EY Ripples corporate responsibility program. Since EY Ripples was founded in November 2018, over 81 million lives have been positively impacted, including 27 million lives in FY22. In FY22, total investments were to US$159 million in projects dedicated to strengthening local communities, with EY employees contributing more than 1.1 million hours to various initiatives and value-in-kind projects.
EY and Microsoft formed a Social Impact Alliance in FY22 to increase social equity in the digital economy and help millions of people enter or re-enter the workforce or build new businesses in the digital economy. ‘by 2025. Ongoing cross-sector collaboration with Unilever and the UK Foreign Commonwealth and Development Office (FCDO) through TRANSFORM has also had a positive impact on the lives of 6 million people from low-income households in 13 countries since 2015 .
The EY organization continues to work together to make progress on environmental challenges. EY has joined over 90 organizations in the Alliance to End Plastic Waste and has become a Carbon Call signatory to encourage more organizations to report their emissions regularly, transparently and comprehensively.
EY leaders have now recommended that the organization evolve into two separate multidisciplinary organizations. One would be a global network of multidisciplinary member firms dedicated to assurance, tax and advisory services with all the capabilities required to deliver high quality audits, serve the public interest and focus on the agenda and CFO sustainability; and the other would be a new global corporate entity comprising Consulting, Strategy and Transactions (SaT), the majority of Tax and Managed Services.
By taking this bold step, EY can better serve EY employees, customers and stakeholders in a unique opportunity to redefine the future of professional services. This move will create better and more dynamic career opportunities; people can learn more, take on new roles and explore different mobility options.
This would mean increased access to capital to reinvest in people and customer services and solutions, with a focus on the issues that matter most to customers and stakeholders.
It would also mean more choice for clients for audit and transformation services, and an even stronger focus on ESG priorities, as well as more opportunities to develop new corporate responsibility programs – such as co-investments in “green” projects – so that we can have an even greater impact in the communities in which we operate.
Both organizations will be values-driven and purpose-driven, and both will preserve EY’s strong culture and commitment to DE&I.
EY will now engage in more detail with EY partner firms, whose votes will determine whether we move forward.
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To watch EY Chairman and CEO Carmine Di Sibio discuss EY’s FY22 results, go here.