JOINING TOGETHER TO SAVE THE ENVIRONMENT

JOINING TOGETHER TO SAVE THE ENVIRONMENT

JOINING TOGETHER TO SAVE THE ENVIRONMENT EARTH DAY

April 2021

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INTRODUCTION

In 1990 a global Earth Day was organised, which was observed by some 200 million people in more than 140 countries. Since then, Earth Day has been international in scope. By the early 21st century, Earth Day’s many activities included raising awareness about a number of growing environmental concerns, especially the threat of global warming and the need for clean renewable energy sources. Indeed, in 2016 the international Paris Climate Agreement was emblematically opened for signatures on Earth Day. Although in 2020 and 2021 many of the planned marches and other activities for the 50th anniversary celebration of Earth Day were cancelled or forced online because of the COVID-19 pandemic hasn’t prevented some big, influential names continuing to get behind the message Earth day seeks to recognise.

First celebrated in 1970 on the 22 April Earth Day is now an annual event around the world in more than 193 countries. The purpose of Earth Day is to celebrate the planet's environment and raise public awareness about pollution through the holding of rallies, conferences, outdoor activities and service projects. In the decades leading up to the first Earth Day, Americans were consuming vast amounts of leaded gas through massive and inefficient automobiles. The industry produced large amounts of smoke and sludge with little fear of the consequences from either the law or bad press. Air pollution was commonly accepted as the smell of prosperity. US Senator Gaylord Nelson, a junior senator from Wisconsin, became concerned about the deteriorating environment in the United States and inspired by the student anti-war movement, Senator Nelson wanted to infuse the energy of student anti-war protests with an emerging public consciousness about air and water pollution.

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In 2020 Sir David Attenborough called for a ‘stop to the damaging stuff’ as he noted that saving the planet is within our grasp. The 94-year-old natural historian and broadcaster is the public face of a landmark study by the British government into biodiversity loss and its economic impact. In a video message, he said: “Suddenly, saving our planet is within reach. We have a plan. We know what to do. Stop the damaging stuff, roll out the new green tech, stabilise the human population as low as we fairly can, keep hold of the natural wealth we have currently got, and we'll have built a stable, healthy world that we can benefit from forever.

We now have a choice to create a planet that we can all be proud of, our planet. The perfect home for ourselves and the rest of life on Earth.” Today, Earth Day is not only a day to increase awareness of environmental problems but it’s also become a popular day for many communities to gather together and clean up litter, plant trees, or simply reflect on the beauty of nature. The 22 April 2021 will mark the 51st anniversary of this special day. Typically, Earth Day is assigned a different theme or area of focus each year; this year’s theme is ‘Restore Our Earth.’

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EARTH DAY TIMELINE / HISTORY

2020 Earth Day marked 50 years with global activations that aim to mobilize a billion

people worldwide for transformative action for our planet.

2000 Earth Day leverages the power of digital media to build millions of local conversations across more than 180 countries.

1970 The first Earth Day mobilizes 20 million Americans to call for increased protections for our planet.

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2021 Earth Day #Restoreourearth.

2010 Earth Day Network launches A Billion Acts of Green® and The Canopy Project. Earth Day 2010 engages 75,000 global partners in 192 countries.

1990 Earth Day goes global, mobilizing 200 million people in 141 countries.

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FACTS ON CLIMATE CHANGE

MOST OF THE INCREASE IN GLOBAL TEMPERATURES SINCE 1950 HAS BEEN CAUSED BY HUMAN ACTIVITY While there are some causes of climate change that are natural, like volcanic eruptions, the reason we are facing a climate crisis now is because of human activity. The main causes of climate change through human activity include, burning fossil fuels for energy, intense farming and agriculture to produce meat and crops and removing forests and trees to make space for other land uses. All of these activities release greenhouse gases that trap heat in the atmosphere, causing the global temperature to rise.

THE AVERAGE TEMPERATURE OF THE EARTH IS DETERMINED BY THE GREENHOUSE EFFECT

Greenhouse gases are gases that trap heat in the atmosphere. When the sun passes through the atmosphere, the greenhouse gases absorb the radiation and prevents the heat from leaving the atmosphere. This is known as the greenhouse gas effect. Without greenhouse gases, the average temperature on Earth would be far too cold to sustain life. However, when we add more greenhouse gases to the atmosphere through human activity, this causes more of the sun's energy to get trapped in the atmosphere, heating up the Earth and causing global warming. Greenhouse gases include Carbon Dioxide (CO2), which is usually produced by burning fossil fuels, and Methane (CH4), which is produced by livestock like cows when they digest food.

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GLOBAL TEMPERATURES HAVE INCREASED BY ABOUT 1° CELSIUS IN THE PAST CENTURY Over the last 100 years, the average temperature on Earth has warmed by 1°C. In our day-to-day lives, we may not notice much of a difference if the temperature went up by one degree, but this temperature rise has had a significant impact on the planet. The temperature is continuing to rise, and the past five years are, collectively, the warmest years in the modern record. Currently, countries around the world are working towards the targets set out in the Paris Agreement which aim to keep the global temperature rise below 2°C and limit it to 1.5°C if possible. THE UNITED STATES IS THE SECOND LARGEST CONTRIBUTOR TO CARBON DIOXIDE (CO2) IN OUR ATMOSPHERE The US is home to only 4.4% of the world’s population, yet it is one of the biggest emitters of greenhouse gases. If everyone in the world burned fossil fuels and lived the way those in the US do, it would take four Earths to have enough resources for us all. Ireland’s greenhouse gas emissions are the third highest per capita in the European Union, and this comes mainly from agriculture, transport, energy industries and residential emissions. There are clearly different challenges all over the world for nations to start to tackle in respect of climate change.

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FACTS ON CLIMATE CHANGE

ARCTIC SEA ICE AND GLACIERS ARE MELTING

One of the most well-known effects of global warming is that sea ice and glaciers in the Arctic are melting. In 1910, the Glacier National Park in Montana in the United States was filled with approximately 150 glaciers. When the glaciers were recounted in 2017, this number had dropped to 26. This melting ice will cause rises in sea level, and will increasingly affect people in areas that depend on water from melting glaciers for their drinking water. AVERAGE SEA LEVELS ARE EXPECTED TO RISE BETWEEN 0.5 AND 1.5 METRES BEFORE THE END OF THE CENTURY As oceans continue to warm and expand, and land-based ice in Greenland, parts of the Antarctic, and mountain glaciers continue to melt, sea levels will rise. This will have an impact in many countries across the world, especially low-lying areas with high risk of extensive flooding. RAINFOREST DESTRUCTION IS A MAJOR CAUSE OF CARBON DIOXIDE RELEASE Trees and forests are known as 'carbon sinks', because they store carbon dioxide as they grow. When humans cut down rainforests or they are destroyed by wildfires, large amounts of carbon dioxide are released into the atmosphere. This contributes to the greenhouse effect and increases the concentration of carbon dioxide in the atmosphere, contributing further to global warming.

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CORAL REEFS ARE BEING DESTROYED In the last 30 years, half of the world’s coral reefs have died. Human activity, as well as increased temperatures, has contributed significantly to coral bleaching. When the water becomes too warm, the algae living in the coral's tissues leave. Algae provides the coral with most of its energy, and so it needs algae to survive. When the algae leaves, the coral becomes bleached and turns white or pale, leaving it vulnerable to disease. This impacts fish and other species that make these corals their home. Between 2014 and 2017, the bleaching of the Northern Great Barrier Reef, combined with the impacts of cyclones, killed around 50% of its corals. AS GLOBAL TEMPERATURES INCREASE, OUR SOCIETIES WILL FIND IT HARDER TO ADAPT TO THE CHANGES THIS BRINGS, AND SOME SPECIES ARE MORE LIKELY TO BECOME EXTINCT Climate change will increase existing risks and create new risks for both natural and human systems. These risks are not shared equally, and are generally greater for disadvantaged people and communities. Coastal areas will be vulnerable to sea level rise, and some vulnerable island nations like the Maldives could disappear completely. A large percentage of species face increased extinction risk due to climate change. For example, most plants cannot naturally shift where they live fast enough to keep up with current rates of climate change in most landscapes. Most small mammals and freshwater molluscs will not be able to keep up with these changes either.

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NEWS ON HOW THE ENVIRONMENT HAS CHANGE IN THE PAST YEAR

Notably, 2020’s temperature level was hit without it being an El Niño year, as it was in 2016. Across the globe, in nearly every country in the world, temperatures were above average, with Europe and Asia seeing their hottest years on record, and the planet’s oceans having their third warmest year to date. Even small changes in the average global temperature can lead to drastic extremes in certain regions, such as Phoenix’s 140 days above 100 degrees (F). In order to Restore Our Earth, climate change solutions must centre and benefit those most disproportionately impacted by environmental degradation and climate change.

2020 TIES FOR WARMEST YEAR ON RECORD According to NASA, 2020 effectively tied 2016 as the hottest year on record, with the global average temperature being 1.84 degrees Fahrenheit (1.02 degrees Celsius) warmer than the baseline 1951-1980 mean. “The last seven years have been the warmest seven years on record, typifying the ongoing and dramatic warming trend,” said Goddard Institute for Space Studies (GISS) Director Gavin Schmidt. “Whether one year is a record or not is not really that important – the important things are long-term trends. With these trends, and as the human impact on the climate increases, we have to expect that records will continue to be broken.”

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FINALLY, A CHANCE FOR ENVIRONMENTAL JUSTICE IN THE US

A more promising approach would be to reorganize the existing Environment and Natural Resources Division (ENRD) to put environmental justice front and centre. The National Environmental Justice Advisory Council should be charged with providing recommendations that can be pursued by executive action alone and propose amendments to the basic environmental statutes. The new focus on environmental justice in a reorganized ENRD cannot be permitted to languish like the Environmental Crimes section did as it struggled to find a coherent approach to defining and prosecuting environmental crimes. Consistent with this strategy would be a restoration of a private right of action under Title VI so that communities that are most burdened by pollution and other environmental hazards can speak for themselves and augment any efforts undertaken by the federal government. The EPA’s Office of Civil Rights can again become a partner in the long struggle to make environmental enforcement a struggle for justice. No Title VI settlement should be undertaken without a process for full consultation with the affected community and without providing a straightforward substantive remedy for Title VI discrimination. The administration can also reform the permitting process to ensure that environmental justice concerns are not raised only after the fact.

15 JANUARY 2021 The announcement of Michael Regan to head EPA is good news for environmental justice. Decades of experience with environmental regulatory schemes have demonstrated that unless equity and justice are at the heart of environmental policy, any efforts to restart the federal commitment to environmental protection will be only half complete. Many states have already recognized that environmental justice is a key component to reducing pollution, addressing the health effects of continuing and past pollution and providing for a just transition to a new energy economy. Now, the federal government promises to join arms with state and local advocates and give leadership to this effort. Beginning with an updating of Executive Order 12898 on Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, the new US administration must ensure that the basic regulatory infrastructure that dates back to the original Earth Day can address the concerns raised by the movement for environmental justice. A simple but fundamental beginning would be to get the agencies to dust off their strategic plans for implementing the Executive Order and bring them up to date. The proposal to create a new division in the Department of Justice that has as its mandate the pursuit of environmental and climate justice is a promising initiative, but likely a non-starter in the current legislative environment.

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Community consultation and prioritization of environmental justice concerns must be key to elements of any permitting process. Communities that are already burdened with a heavier pollution load should not be asked to take on more. Finally, the reality of climate change adds a dimension to achieving environmental justice that was not contemplated when the Executive Order 12898 was adopted. Environmental justice communities are and will continue to be the ones that disproportionately bear the burden of climate change. We cannot pretend this is not true, and we must act now with that knowledge in mind. The new US administration has expressed a commitment to achieve environmental justice while it reduces pollution and creates a just transition to a new green energy economy. Its actions on environmental justice can leave no community behind and we must hold the administration accountable to restore justice, equity, opportunity and the earth. With the appointment

of Michael Regan to lead the EPA, environmental justice may finally get its due.

In order to Restore Our Earth, climate change solutions must centre and benefit those most disproportionately impacted by environmental degradation and climate change.

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WHAT IS BDO DOING?

BDO offices are carbon-neutral, and is committed to driving down the carbon emissions and offset our carbon each year.

BEYOND COMPLIANCE BDO is a responsibly managed firm that aspires to exceed market expectations across all sustainability issues and goes beyond legal compliance to proactively reduce our environmental impacts. The firm’s goals are to reduce our overall carbon footprint by embedding environmental controls and practices into the daily management of the firm and thereby encourage positive behaviour from our staff to achieve a greener culture.

DOING WHAT’S RIGHT FOR ALL BDO are adopting these measures because the firm believe it is simply the right thing to do in this time of climate change. In addition, BDO also recognise several business benefits that will ensure the long term sustainability of our strategy. Efficient use of energy and resources can help to reduce costs as well as shrinking our environmental footprint. We see increasing levels of concern and sophistication around environmental issues from our clients and feel that proactively embracing this change is a key part of our commitment to exceptional client service.

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OUR COMMITMENTS The environmental policy, outlines the key environmental impacts, targets and commitments. It’s endorsed at the highest level, personally signed by our Managing Partner, Paul Eagland, and will be reviewed and amended on an annual basis to ensure that BDO continually improve. BDO’s environmental management systems are ISO14001 certified. This ensures we have a robust annual assessment of those systems and our continual improvement is independently audited.

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WHAT ELSE IS BDO DOING?

 BDO UK has signed up to the United Nations Global Compact Agreement  Our latest Carbon Report provides a comprehensive view of our performance and action on environmental matters for our financial year ending 30 June 2020 – eight months of which was pre-C-19 and included a sizeable increase in our headcount. Highlights include: – We reduced our total emissions (-5%) and our emissions intensity per FTE (-28%) – We introduced a real-time sustainability reporting platform to help us track and reduce our energy consumption – We implemented schemes with local contractors to reduce the volume of waste going to landfill and our use of plastic packaging – More than half our offices are rated as either very good or higher – with six offices rated ‘excellent’ – according to independent sustainability consultants (known as our BREEAM rating) – We continue to maintain an important accreditation that recognises our ongoing commitment to reducing our impacts (known as ISO:14001:2015 Environmental Management System).  As we did for the first time last year, we will continue to offset our carbon as a firm through ClimateCare’s Gyapa cookstove project, working with independent sustainability consultant, Avieco. This means that BDO in the UK will remain carbon-neutral

 Our carbon commitments and offsetting have also unlocked another important milestone. We are now able to declare that all of our offices are a carbon-neutral environment. This is because we have achieved a Carbon Neutrality accreditation – known as PAS 2060 Specification – because of our demonstration of carbon neutrality and our implementation of effective climate change mitigation measures  We review supplier contracts for their environment and sustainability commitments  Where we have full responsibility for utilities in an office location (e.g. sole tenant in a building), we have switched to green tariffs for our energy  To support teams trying to reduce travel, we’ll keep investing in  With our new travel booking system, Egencia, we’ve made sure that you can see your carbon footprint for air travel. Later this year, you’ll also be able to see the cost to offset the carbon footprint for your flights, as well as the ability to compare the carbon footprint between air and rail to help you choose the most carbon efficient route technology to ensure we have the right kit and capabilities – such as Teams and more training

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 Rail ticket printers are no longer in use in our offices – approx. 90% of UK rail routes are now available on e-ticket through Egencia. Tickets can be collected at any UK train station for the 10% of routes not covered by an e-ticket option  Over 25% of the company car fleet used by our staff is now made up of Electric Vehicles. Electric Vehicle choice, infrastructure and battery capacity are developing rapidly so we are excited to continue to work with our fleet provider to ensure, and promote, the availability and choice of Electric Vehicles in our company car fleet available to staff. As the electric vehicle options expand, so too will we continue to expand our electric vehicle stock as a proportion of our fleet, while still providing our staff with their personal choice  For our staff car fleet, we have reduced our emissions cap from 110g/CO2 to 50g/CO2 with effect from April 2021. This will increase orders of pure Electric Vehicles or low-emission hybrids  You can now order and choose carbon-neutral BDO stationery  We have planted 300 trees in the UK as part of our Sunday Times Fast Track marketing partnership  Longer-term, the Leadership Team and U Board are working with internal and external experts to respond to regulatory changes and client opportunities or risks  Globally, BDO has appointed a Global ESG Lead, Henning Drager, with whom our UK team is working closely.

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WHO ARE BDO WORKING WITH?

 No single firm or individual can tackle climate change alone. The solution is collaborative  Our Senior Partner, Matthew White, has joined Chapter Zero, a climate forum for Board Chairs and Non-Executive Directors to ensure climate change appears on the agenda of every boardroom table this year  We are helping many clients succeed on a variety of sustainability projects, including the development of Circular Economy, forest protection technology and renewable power programmes  The accountancy and business advisory work we do to help companies operating in the Renewables sector to succeed is growing –and already impressive  Our partner, Marc Reinecke, has taken on the role as leader of BDO’s Global Renewables sub-sector, a team which is now receiving further attention and investment from across BDO globally

 In the UK, our Renewables sector team is genuinely multi-stream, with fees coming across Corporate Finance (led by David Bevan, with specialist renewables experience), Forensics, Audit, Tax and other  We partner with CleanGrowth, supporting tech start-ups find funding and a space to develop tech  Our Private Equity house relationships are important here, given specialist interests in investing in clean energy and infrastructure  Our Model Audit team is ranked #1 globally in the Renewables sector  We earned more fees from tax work from Renewables clients than other energy clients last year.

ENVIRONMENTAL CHAMPIONS The Environmental Champions are a firm-wide group of people from all backgrounds and across various levels and Streams, all like-minded in our passion for improving our collective environmental awareness and the firm’s environmental impact. If you would like to join the environmental champions click here for more information, it would be great to get more people involved! Alternatively, you can join the ‘There is No Planet B’ Yammer group to share tips and ideas.

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EARTH DAY TIPS FOR YOU TO TAKE ENVIRONMENTAL ACTION YOURSELF

AVOID PLASTIC DISPOSABLES A one-time use plastic grocery bag takes 10–20 years to break down , and a throwaway water bottle can take up to 450 years to decompose . Other plastics that are a bit stronger can take up to 1,000 years!

BUY ORGANIC FOOD By buying organic food you will keep your body and the environment free of toxic pesticides.

SAVE ELECTRICITY Turn off lights when you leave a room and turn off switches when they are not being used.

RETHINK YOUR TOILETRIES It is estimated over 2 billion razors are thrown into landfills every year which is equivalent to 454 tonnes of plastic waste. There are now plastic free recyclable items available to help reduce this amount, from plastic free organic biodegradable hair ties , reusable bamboo cotton make-up pads , reusable glass dispensers with eco-friendly refills and zero waste eco-sustainable reusable razors .

VOLUNTEERING & DONATING There are several ways and charities you can volunteer with to help out the environment helping to plant trees and nurture flowers that can be enjoyed by the public. Or donate your old belongings instead of throwing them away old clothes, appliances, laptops, cell phones, and other items can use re-used.

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UNPLUG YOUR DEVICES One of our easiest Earth Day tips is to simply unplug your electronics when not in use. Devices left plugged in, even when turned off, still consume power , a negligible amount each day, but it adds up over the course of weeks and months.

ALWAYS READ LABELS Use environmentally-friendly ,

non-toxic cleaning products to avoid washing toxic chemical down the drain.

PAPER WASTE Change your paper bills , catalogues and magazines to online . Be more conscious of how much you print at work, is a printed out copy really needed. You’ll be saving trees and the fuel it takes for them to be delivered.

GO MEAT-FREE A vegetarian or vegan diet is much better for our environment on average a diet including meat requires 2.5 times more space or acreage compared to a diet for vegetarians and vegans. Even being meat-free one day a week can help to make a difference.

CARBON FOOTPRINT Calculate your carbon footprint and make changes to reduce it, it’s something we can all do to help the planet. Meal prep is one of the biggest ways in which you can help reduce your footprint. One in four car trips in the UK are under a mile , why not swap these for walking or cycling .

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EARTH DAY TIPS FOR YOU TO TAKE ENVIRONMENTAL ACTION YOURSELF

TAKE SHORTER SHOWERS Even though more than 70% of the Earth's surface is water, it is not all accessible for daily use! 96.5% of the Earth's water is salt water and roughly another 2.5% is inaccessible, meaning that only around 1% of all the Earth’s water is able to be used by us in any real sense.

MAKE USE OF YOUR GARDEN Try growing your own organic garden and fight food waste by composting .

RECYCLE WHAT YOU CAN Recycling is one of the best tips you can do to help the environment, and something everyone can be conscious of to make more of an effort. Avoid using things that can’t be recycled easily, and invest in reusable items like a water bottle , lunch box and coffee cups .

EAT LOCAL Eating locally is a great way to support local farmers and small businesses in your community and region.

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This publication has been carefully prepared, but it has been written in general terms and should be seen as containing broad statements only. This publication should not be used or relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained in this publication without obtaining specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any responsibility or duty of care in respect of any use of or reliance on this publication, and will deny any liability for any loss arising from any action taken or not taken or decision made by anyone in reliance on this publication or any part of it. Any use of this publication or reliance on it for any purpose or in any context is therefore at your own risk, without any right of recourse against BDO LLP or any of its partners, employees or agents. BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members' names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Conduct Authority to conduct investment business. BDO is the brand name of the BDO network and for each of the BDO member firms. BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the international BDO network of independent member firms. Copyright © April 2021 BDO LLP. All rights reserved. Published in the UK. www.bdo.co.uk

FOR MORE INFORMATION:

EMILY-ROSE HODGES +44 (0)207 893 3566 [email protected]