Impact report FY23 Deloitte Israel
Statement from CEO & Chair Welcome to our inaugural Impact Report! We are excited to share with you our firm’s first impact report, giving you an insight into how we live our purpose. Deloitte’s purpose is to make an impact that matters, on our people, our clients and our society. We believe our purpose breathes life into every step we take and every choice we make, and our financial accomplishments are only a part of how we measure our success. Making an impact on our community, to us, is more than volunteering or donating to our community. These are actions we take on an ongoing basis. However, we feel that we can do more, and we can leverage our strengths not only for our clients’ success, but also for our community’s growth and prosperity. For us, making an impact on our community is to leverage our skills, expertise and professional assets to drive meaningful change within communities. Making an impact is about helping civil society be stronger, more adept, and more resilient to face the challenges our community is facing and will face in the future. It is about channeling our professional capabilities into causes we can make an outsized difference. Making an impact at scale requires focus and dedication. It’s not the “one-off” event and it is not a singular donation to an important cause. Living our purpose at scale requires daily work. It requires priorities and requires an organizational discipline to translate priorities into action. That is why we have created our Purpose Office, joining many Deloitte member firms globally. Our Purpose Office is designed to turn our ambitions and priorities into action in a consistent and scalable fashion. As part of our approach to impact, we have established five “core commitments”, signaling our priorities and the areas we intend to focus on. This important inaugural impact report reflects do our part in making our society better, each day, action by action. I hope this report inspires you to make an impact that matters and live your purpose in your organization and in your community. | © 2024 Deloitte Israel & Co. 2
Prologue We were about to issue this report at the beginning of October 2023, when the devastating events of October 7th 2023 urged us to redefine some of our purpose activities for the months to come. In that moment that mattered to all Israeli citizens, we quickly adjusted our capabilities to support the Israeli community, our clients, and our people. The wide breadth of capabilities held by our people, alongside high motivation to contribute to the different fields requiring urgent attention, enables us to be of service in this time of national emergency and rebuilding. Our teams still support numerous national and social initiatives on the country’s path to healing and revival. We are supporting communities that were hurt on October 7th as they rebuild and raise again, assisting civil aid organizations, offering IT support to critical activities and infrastructure, helping navigate processes for receiving government aid and more. We are working with government offices, public sector bodies, civil leadership systems, NGOs and the local leadership of towns and villages on the frontlines, as well as companies and others impacted by these events. Beyond deploying the full arsenal of Deloitte capabilities, Deloitte Israel also donated significant sums to aid organizations and the Western Negev communities hurt on October 7th, and our people have been volunteering in a wide array of critical national undertakings. The Impact Report before you, summarizes the wide impact made by Deloitte Israel in fiscal year 2023 (June 2022 – May 2023), however, due to the significant and immediate response and initiative taken by our people at this time of great need, we also share with short summary of our activities during the Iron Swords War. These activities have illuminated the way for us, given us sparks of hope and charged us through the power of action. Donations: USD donated by Deloitte Firms to humanitarian causes including donating to United Hatzalah, working with Kibbutz Holit as they rebuild, and supporting families evacuated from their homes following the attacks. donated by Deloitte Israel to the Business Forum Fund dedicated to supporting victims of the October 7 events. 400,000 NIS 8 million 3 | © 2024 Deloitte Israel & Co.
Leveraging core capabilities to impact the community: Supporting our clients at the moments that matter Pro Bono services to “Israel Rises” to build a working model and create solutions to complicated issues. President’s House Public Engagement Bulit the emergency response line. ‘First Aid’ for volunteer and non-forprofit initiatives immediate support such as built the administrative requirements to receive immediate donation in support of relief efforts. Development of tailor made solutions to assist our clients with strengthening financial, operational or human-organizational resilience. Dedicated mini-site making information and recommendations easily accessible. Expanded the tax advisory team to help businesses receive grants, reparations, loans and benefits to help them survive. Client Help Center to give swift up-tothe-minute response to support clients with their immediate needs. Helping local businesses in the Western Negev to cope with severe cashflow challenges due to the war as well as support in navigating the bureaucracy of government restitutions. | © 2024 Deloitte Israel & Co. 4
Supporting urgent national needs Being HERE for our People Support packages for 220 employees drafted for active service and their families. Volunteering through the Purpose Office included activities and support for families displaced from their homes or caring for a wounded loved one, supporting agriculture and the armed forces, assisting in establishing commemoration websites and more. Helping Holit Kibutz rebuild together with partners from the Business Forum initiative. Offering various services through the journey of revival, and longterm economic thriving back home in the Kibutz. Well-being packages for all our employees including courses, lectures and gift cards, intended to offer tools for increased resilience of the body and mind. Grants for employees directly harmed by the October 7 events and ensuing war, living in the line of fire, or displaced from their homes. | © 2024 Deloitte Israel & Co. 5
What is an "Impact That Matters”? Creating a meaningful and lasting impact on our clients, our employees, and on society and markets has been defined as Deloitte's purpose around the globe. What it means may have changed over the years as we grew and developed during the changing times, but we remain stable and steadfast in our commitment to creating an Impact That Matters. Impact that matters means… “It’s about the Greater Good. That doesn’t mean we don’t look at the bottom line, but we evaluate ourselves based on the value we create for our clients, the pride our people have in working at Deloitte. It’s growing generations of market leading managers (at Deloitte or elsewhere), it’s facilitating our clients’ success however they define it, and it’s taking on projects with wide societal impact even if they are less profitable” “To engage each of our stakeholder groups in a distinctive way. To have employees that are proud to be at Deloitte, and clients that trust us and know that our work creates added value” Irena Ben-Yakar, CPO and Head of ESG Practice Ilan Birnfeld, Chairman and CEO | © 2024 Deloitte Israel & Co. 6
Yigal Brightman establishes the accounting firm Brightman and Co. and runs it for 22 years. A series of mergers and acquisitions strengthens the firm’s market presence in the accounting field. Deloitte chooses Brightman and Co. as its partner in initiating its business in Israel. This was the first global accounting firm, then one of “the big 8”, to enter the Israeli market. The firm established Enterprise Risk Services, a new organic business unit to address clients’ growing needs for risk management. 1972 1998-2008 2000 1994 Timeline of Development 8 | © 2024 Deloitte Israel & Co.
The firm expands its services beyond financial advisory with the establishment of consulting service lines, offering its clients comprehensive and holistic suite of services with practical strategic solutions. Those new solutions which strengthen our consulting offering were evolved both organically and acquired by a set of acquisitions along this period. Deloitte Israel combined with Deloitte US. A combination based on shared values and strong business potential. This move materialized on the rational of bridging between the Israeli Innovation Ecosystem and Global corporate clients, has become a major benefit for the clients in Israel and worldwide as well as the biggest professional playing field for the talent. Deloitte Israel is a fast-growing business utilizing both organic growth and M&A to create our diverse portfolio of Advisory and Consulting services spanning strategy, people and talent, technology and tech solutions. We seek to continue diversifying our services and portfolio so that we can truly offer any CXO the precise suite of services for end-to-end solutions. 2012- 2019 Today 2019 | © 2024 Deloitte Israel & Co. 9
Our Shared Values Our Shared Values are a set of core principles that guide our collective behavior. They set the expectations we have for one another and define how we, as stewards of Deloitte, should behave. They provide common ground to unite us across cultures and geographies. And, importantly, they help us to earn the trust and respect of our key stakeholders. Lead the way Deloitte is not only leading the profession, but also reinventing it for the future. We’re also committed to creating opportunity and leading the way to a more sustainable world. Serve with integrity By acting ethically and with integrity, Deloitte has earned the trust of clients, regulators, and the public. Upholding that trust is our single most important responsibility. Take care of each other We look out for one another and prioritize respect, fairness, development, and well-being. Foster inclusion We are at our best when we foster an inclusive culture and embrace diversity in all forms. We know this attracts top talent, enables innovation, and helps deliver well-rounded client solutions. Collaborate for measurable impact We approach our work with a collaborative mindset, teaming across businesses, geographies, and skill sets to deliver tangible, measurable, attributable impact. | © 2024 Deloitte Israel & Co. 10
Our Purpose Strategy Our Commitments: In June 2022, we established the Purpose Office under the leadership of our new Chief Purpose Officer – Mrs. Irena Ben-Yakar, leader of Deloitte Israel’s ESG practice. The Purpose team is tasked with integrating our values and purpose throughout our business, instilling our Why among all of our stakeholders as a driving force and integral part of doing business. In order to focus our efforts, the interdisciplinary and diverse team leading the Purpose Office has constructed a consolidated strategy centered around five core commitments to be achieved in three pillars, or spheres of activity – Internally, with our clients, and for society at large. For each commitment, a set of goals and aspirations has been set so that our impact may be directed and relevant, as well as measurable to enable continued improvement. Taking our Purpose a Step Further Climate Change & Sustainability Diversity, Equity, and Inclusion Responsible Business Conduct Institutional Trust Education& Workforce Development | © 2024 Deloitte Israel & Co. 11
Climate Change & Sustainability The imperative for action on climate change and building a more sustainable future for the wellbeing of current and future generations includes everyone from individuals to organizations and governments. We at Deloitte see this as part of our purpose and seek to promote and advance a sustainable and net-zero future by advising our clients in their transitioning into a low-carbon future, engaging the Israeli sustainability ecosystem and empowering our people to take individual action while incorporating sustainability values in how we run our own operations
Sustainability in Internal Operations We "walk our talk": the way we advise our clients on their sustainability transformation, is the way we are leading this transformation internally. This year, our efforts to improve our environmental performance focused on the firm’s fleet and waste management as we continue to develop plans for further action. Transitioning the company fleet to all electric or hybrid vehicles Reducing office waste Reduce direct emissions Operate “green offices” 48% of the fleet is currently fully electric or hybrid, and we committed to transitioning to a 100% electric/hybrid fleet by 2026 Deloitte IL is aiming to operate on a “paperless” basis in the next couple of years. This year, we started addressing waste in the office kitchens, rolling out recycling bins in all our facilities as well as initiating a “green kitchen” pilot – eliminating single-use dishes and cutlery and installing dishwashers. This will be expanded in the coming year, especially through our new Hubs in Rishon LeZion and Ra’anana, in which an extensive waste management program was designed. As part of the Deloitte Global Network, Deloitte IL has committed to contribute its part to the Global net-zero goals. Our total FY23 scope 1 and 2 carbon footprint is 1,260 CO2-e, and we purchased Renewable Energy Credits totaling 1.78 million KWh to offset the emissions of our entire scope 2 energy consumption. We continually monitor these and other parameters and core performance indicators as we formulate plans for improvement. The two new offices to be opened in FY24 are located in LEED certified buildings to ensure they incorporate green building practices. Impact Report | Climate Change & Sustainability 13 | © 2024 Deloitte Israel & Co.
Assisting clients in transitioning into a low-carbon future Empowering Our People to Take Individual Action The global transition to a low carbon economy requires significant changes in operations and business models for many organizations and private sector companies. Alongside the significant risks of this transition, there are also opportunities for growth that is sustainable in terms of economic and environmental resilience. While the heavy lift on sustainability and climate change will inescapably be done by institutions, there are small things each of us can do to live a more sustainable life. We endeavor to empower the almost two thousand people working at Deloitte IL to incorporate sustainability in their daily lives though awareness building events and opportunities for action. Promoting Sustainability in the private sector The Deloitte IL ESG practice routinely engages with the largest companies in Israel, advising them how they can improve their environmental performance. With relatively minor local sustainability regulations, these companies’ pursuit of sustainability initiatives stems from a real understanding of the importance of sustainability, both from a strategic position and from a desire to make a positive impact. We help these companies lay the foundations for effective sustainability management, by assisting our clients to implement precise monitoring and reporting processes, developing holistic sustainability strategies and workplans, and advising regarding specific processes such as decarbonization, responsible procurement and climate-conscious investing. Accessing opportunities for sustainable transformation Often, organizations are unaware of supports and incentives they can get for incorporating sustainability into their operations or do not know how to access national and international innovation grants. Our advisors are well versed in these opportunities and routinely advising companies in raising the capital to elevate their sustainability performance or fund innovation. April Earth Month During Earth Month we ran an awareness campaign including inspiring talks from clean-tech companies and distributing guides with practical tips for making more sustainable choices such as on energy or smart consumerism. To turn awareness into action, our people received personalized tips for a more sustainable lifestyle and invited to commit to one small change they can make as part of their own personal journey toward. Sustainability inspired events Throughout the year the Deloitte IL “Green Team” has hosted events such as second-hand swap markets to facilitate putting sustainable choices into practice. Facilitating recycling Sometimes even the smallest hassles can be enough to create friction that prevents action. To make the little things just a little bit easier, recycling collection points are in place in all our kitchens, with additional waste collection points in our office spaces. Our recycling program includes paper, electronic waste such as batteries, plastic, metal, and cardboard packaging, bottles for deposit, and expired medicines collected in collaboration with a medical charity. Impact Report | Climate Change & Sustainability | © 2024 Deloitte Israel & Co. 14
Engaging the Israeli ecosystem to promote sustainability Throughout the year, we have sponsored several initiatives that were aimed at promoting technological solutions in the field of climate in Israel and abroad, by promoting Israeli start-ups engaged in the field. PLANETech Which leads the climate technologies ecosystem in Israel, by creating knowledge and tools, developing partnerships and promoting the implementation of technologies. The collaboration includes participation in significant events throughout the year and occasionally also sharing our Deloitte's in-depth knowledge on climate issues. Climate Solution Prize (CSP) | Partners Kick-off Toast at SNC A Startup Nation Central initiative, based on a competition between startups in 6 different categories in the fields of climate innovation. The competition’s goal is to raise awareness of innovate technological solutions for climate issues. As sponsors, we took part in the selection process of the start-ups and participated in the opening event for the competition, which was attended by the program’s participants. Hosting Climate and Sustainability Experts In May 2023, we hosted Deloitte experts from all over the world in the fields of climate & sustainability, who came to Israel to learn about the Israeli ecosystem and the climate technologies that are being developed in Israel, so that they could bring these solutions to their clients around the world. CASE STUDY New Office Hubs In 2024, Deloitte has opened two new hubs, office spaces that allow our people to work closer to their homes. These hubs opened in the One Thousand Complex (“Mitham HaElef”) in Rishon LeZion and in the Infinity Building in Ra'anana. Both these buildings are LEED certified - a testament to their environment performance and their high quality of working environment. The buildings are in areas with high accessibility to public transportation and are also equipped with charging units for electric vehicles. The offices also include private nursing areas for parents. From an environmental perspective, the offices will be equipped with lighting systems and electric products with high energy efficiency ratings. Advanced air conditioning systems will work efficiently to create a comfortable working environment, and systems will be in place to optimize and minimize water usage. Lighting and air conditioning systems will utilize sensors to detect the presence of employees and shut off when rooms are empty. The offices will have green kitchens which will include efficient dishwashers, as well as limited single-use utensils for people who keep Kosher or have other restrictive dietary needs. The offices will also run extensive waste recycling programs, providing solutions for different types of waste, including organic waste, packaging waste, bottles, cardboard, and paper. Impact Report | Climate Change & Sustainability | © 2024 Deloitte Israel & Co. 15
Diversity, Equity, and Inclusion The imperative for action on climate change and building a more sustainable future for the wellbeing of current and future generations includes everyone from individuals to organizations and governments. We at Deloitte see this as part of our purpose and seek to promote and advance a sustainable and net-zero future by advising our clients in their transitioning into a low-carbon future, engaging the Israeli sustainability ecosystem and empowering our people to take individual action while incorporating sustainability values in how we run our own operations.
Deloitte as a mirror of Israeli society We see great value in a diversity of experiences and points of view among our people and strive to mirror the Israeli society’s diversity within Deloitte IL. As such, we are diligent in our commitment to create equal opportunities for candidates from all parts of the Israeli society. We promote diversity by reaching new audiences and areas, with an emphasis on the geographic and social periphery, and we foster inclusion - through dedicated programs and the institutionalization of processes with the intention that all our people will feel a sense of belonging bring their full identity to light. Diverse groups in our workforce include women in leadership positions, the Israeli Arabs, Ultra-Orthodox Community, employees of Ethiopian descent, people with disabilities, new immigrants (less than 5 years in Israel), LGBTQ+, employees over 45+ and employees from the geographical-social periphery. These diverse groups are generally underrepresented in the Israeli labor force, and we make a special effort to map and address their unique needs, to ensure that they can be and feel included and that they are valued for what they bring and for their skills and performance. Diversity in recruitment In our recruitment efforts, we actively seek suitable candidates from diverse backgrounds. This is taken into account in how and where we advertise new positions and how we source candidates including working with specializing organizations. In FY23, 28% of our employees belonged to diverse groups. Arab Society Significant strides were made in the last few years to bring in more Israeli Arabs to the firm in a proportion to their part in society, with close collaboration with Co-Impact organization. We continue working towards this goal with unique programs, both within the firm and to increase our engagement with potential candidates. Of a note is our collaboration with Co-Impact and the Intilaka (”leap” in Arabic) program for students. Ultra-Orthodox We are making fruitful efforts to enhance the representation of ultra-orthodox in Deloitte, by enabling unique adaptations such as kosher internet and food, suitable workspace, welfare adjusted activities and more. In 2022 we launched a new office in the city of Beit Shemesh, with collaboration of Beit Shemesh mayor and local NGO that support ultraorthodox employment, which look up to the local community, and nurture inclusion and impact. Israelis of Ethiopian descent Of a particular note is our collaboration with Olim Beyahad to increase the representation of Israelis of Ethiopian descent in the firm. The collaboration included an awareness raising an event, in which 50 participants took part. In addition, every candidate and new hire is jointly accompanied through the process by us together with Olim Beyahad and is supported during the first months in the firm to ease onboarding. Diverse groups are strongly represented throughout our workforce, including: 10% 7% 0.6% 2% Arab Society Ethiopian Descent Ultra-Orthodox Community New Immigrants (Ole Hadash) Impact Report | Diversity, Equity,and Inclusion | © 2024 Deloitte Israel & Co. 17
Support and mentorship for employees To give new recruits the best chances of success, we offer dedicated mentorship programs and training as well as ongoing support from the diversity and Talent team. Increase accessibility through geographical spread – The decision to establish offices in Nazareth, Beit Shemesh, northern extension in Kiryat Shmona and collaborating with Negev19 at Nirim-as a precursor to additional offices in the geographical periphery of Israel stems from the firm’s approach to diversity and inclusion. We realize that merely setting recruitment targets may not be enough, and thus seek for true integration in local communities. Establishing offices throughout Israel makes the firm more accessible to employees with different backgrounds and facilitates a gradual and adapted entry into Deloitte IL's work environment. Promoting work-life balance and DEI by enabling hybrid work as our employment model, with three working days from the office and 2 working days from remote. "Reaching different points on the map to increase our access and offer talent the comfort of working close to home” Encourage Cultural Pluralism We encourage open and ongoing conversations between management and employees and create structured opportunities for them to voice their feedback, needs and inputs so that we craft a better environment together. We note and celebrate the holidays and milestones of the different religions and cultures of our employees, encouraging sharing and genuine connection on all levels. DEI training for managers A DEI workshop with practical tools for managers who manage employees from diverse backgrounds, is held on a quarterly basis. In addition, 90 managers participated in a webinar dealing with inclusion as part of the Global Manager Milestone, our managers training program. Accommodations for the unique needs of UltraOrthodox employees Welfare events and adapted communication channels address the specificities and needs of the ultra-orthodox lifestyle throughout the firm. Of a distinction is our new Beit-Shemesh Office that is specifically designed with this purpose. LGBTQ+ Awareness We invest in increasing awareness of the rights and challenges of our LGBTQ+ people through lectures, panels, participation in conferences, internal media communications and pride month celebrations. Multi-cultural awareness among our people Hiring is only the first step in creating a successful and diverse team. It is at least equally important to create a culture of inclusion and pluralism. To this end we do several activities: Yigal Dor, Deputy CEO Impact Report | Diversity, Equity,and Inclusion 18 | © 2024 Deloitte Israel & Co.
Equal gender representation in senior management This is a field in which we have been active and vocal for many years. Today 7 of the 13 members of the management committee. Empowering women for senior management roles Employees are offered multitude training programs and workshops designed especially, though not exclusively, for women and focusing on soft skills in preparation for enhancing their positions. Supporting working parents Returning from parenting leave can be daunting. We seek to make re-integration easier with a dedicated program – “momming back” helping new parents balance their responsibilities. 5 stars on the Maala DEI ranking 2023 We are happy to see that the significant efforts invested in Diversity, Equity and Inclusion are yielding results and we are thankful to have been recognized for this. Deloitte IL is the only professional services firm to achieve this acknowledgment, and we are honored to be leading the charge on this important issue. Multi-cultural awareness and DEI beyond our walls Gender equality throughout the organizational hierarchy As a leading organization and a large employer in the Israeli market, we recognize that we are able to affect change beyond our walls. We do this by a significant involvement in the conversation on diversity through participation in professional forums and conferences as well as extensive collaborations with non-for-profit organizations. Many of our leadership members are personally committed to increase diversity among employers and organizations in the Israeli market and volunteer as mentors or directors of programs and organizations working in this field. Woman PMDs Managers Deloitte IL team Impact Report | Diversity, Equity,and Inclusion | © 2024 Deloitte Israel & Co. 19 54% 54% 30% 57%
Senior Management Partners Managers Company-wide Woman Men Impact Report | Diversity, Equity,and Inclusion | © 2024 Deloitte Israel & Co. 20 cities, where there is a significant potential for suitable talent that may find it harder to comfortably integrate into our larger offices. Beit Shemesh has a large population of new immigrants who speak fluent English and can be invaluable for a global firm like Deloitte. As we aim to increase the number of employees from Ultra-Orthodox communities, the office in Beit Shemesh allows adjustments and a more conducive office atmosphere as well as physical proximity since commuting can be a significant barrier. This allows Ultra-Orthodox professionals to integrate into employment that suits their skills and potential, in a way that aligns with their values and beliefs with significant impact on the employees themselves, their families and society. CASE STUDY Offices in Nazereth and Beit Shemesh Deloitte IL operates six offices in Israel from Haifa in the north all the way to Eilat in the south (before the new Hubs). We see this geographical spread as an important part of our ability to reach both talent and clients representative of the Israeli society's full mosaic. This fiscal year we opened a new office in the city of Beit Shemesh that joins our office in Nazareth opened in 2017. These offices are an important part of our diversity strategy. The office in Nazareth strengthens the firm’s presence and connection to the Arab community both in terms of recruiting talent, and in terms of connecting to Arab-owned businesses. Our presence in Nazareth is important for both the talent we employ in this area as well as for providing our services to the Arabic businesses, being close to them, living their needs, understanding the culture and engaging with the local society. The office in Beit Shemesh faces the UltraOrthodox Jewish community. Opening the office there puts Deloitte IL in the heart of one of Israel’s youngest and fastest growing 57% 43% 54% 46% 30% 70% 54% 46%
| © 2024 Deloitte Israel & Co. 21 CASE STUDY Learning technology and analytics at the International Olympic Committee The Workforce Development Practice at Deloitte accompanied the International Olympic Committee in a pioneering project to establish a methodological and technological infrastructure for implementing learning technologies ecosystem and analytics strategy and dashboards, with the intention of extending those to the organizing committees of the Olympic games across the globe. The project defined the learning technology strategy, ecosystem and roadmap going forward as well as an extended strategic framework for measuring the effectiveness and efficiency of learning outcomes and developed a scalable POC that provides a full response to the Olympic Committee’s complex learning and measurement needs. The overarching goal was to provide the organizing committees’ employees of the Olympic games, in various cities across the globe, the skill sets needed for setting up, delivering and wrapping up the Olympic Games and related events. As one of the primary strategic goals of the Olympic Committee for 2025 is to promote diversity and inclusion through the Olympic Games (by making the Games accessible to countries and populations that could not host or participate in them in the past), the project focused on fully accessible, streamlined and measurable learning. Thus, less wealthy countries will be able to optimize their activities, skill and upskill their employees more efficiently, reduce costs, and harness more people to spread the unity and good that sports can bring and for which the Olympics so diligently carry the flag.
Responsible Business Conduct Integrity, responsibility and accountability are core values incorporated into what it means to be a part of Deloitte. We take pride in our professional and ethical standards, and these standards are put into practice every day in our work. We strive to promote and advance responsible, accountable and transparent business conduct by acting as a beacon of ethical behavior and supporting clients to maintain high standards of responsibility in their own conduct.
23 | © 2024 Deloitte Israel & Co. Unwavering commitment to Integrity and Ethical Behavior We have a very simple principle here at Deloitte IL, and much is invested in making sure we follow through on it – “Do the right thing, the right way…even when no one is looking”. The behavior and actions of our people are guided by our Code of Ethics, which details the high ethical standards to which our people are held. We have robust internal processes to maintain independence, to promote integrity and to addresses misconducts, and our people undergo extensive training to make sure that they know what is expected of them and how to live up to it. Employees are also encouraged to take an active role in maintaining an ethical environment, and we expect our people to alert relevant staff of potentially proble¬matic behavior through dedicated channels, while guaranteeing non-retaliation. Integrity and ethics training – On average, each of our people participates in 11.3 hours of training on ethics, integrity, independence and compliance, as well as privacy and cyber and information security. Comprehensive trainings from onboarding and throughout the time at Deloitte IL reinforce the firm’s Code of Conduct, North Star and Values. Policies are presented in an engaging way including practical real-world scenarios so that our people will know how to translate principles into actions. Routine engagement to instill a culture of ethics – In addition to structured training, to keep these important issues top of mind, there are routine internal communications on ethics and integrity, independence, privacy and cyber security. We also run an annual survey to assess the level to which policies and procedure are internalized. Engaging with integrity and maintaining independence – Policies and procedures are in place to ensure compliance with applicable professional standards, laws and regulations relating to independence. These are based on the Deloitte Global Independence policy and all applicable (local and/or foreign) requirements and include providing our people with guidance, tools and additional support to be compliant and act with integrity in securing and delivering engagements. Client Acceptance and Continuance Procedures are designed to support informed decision-making processes of engaging with clients that meet our standards, and to assess our ability to deliver a high standard service, in compliance with all relevant and applicable professional standards, laws and regulations, including those relating to ethics, independence and conflicts of interest. Moreover, we seek to engage with management teams which we consider to act with integrity and in alignment with our shared values. Impact Report | Responsible Business Conduct 23 "Impact that matters is to support your people through their challenges and fears, so that they can overcome them, grow and shine." Adi Tal, Chief Risk Officer & General Counsel
Serve as gatekeepers “To train the next generation of professionals with a wide array of skills so that they act with professionalism and integrity wherever they go” Sharon Shtevi Cohen, Clients & Markets Growth Leader Audit leader We see our role as cultivators of confidence and trust in the capital markets. Our professionals, across our services, are committed to relentlessly raising the standards of quality, always acting with integrity, independence, and transparency. This is especially stressed in our Audit services, as auditors serve as an important gatekeeping and investor protection function. As institutional investors are often charged with managing the general public’s savings, our Audit services help transparency and provide the investors with a level of confident that the auditor has obtained reasonable assurance about whether financial statements are free of material misstatements. This is an important information from investors’ perspective that in considered in the decision-making process. Leverage bespoke technology for improved processes and insights Automation, analytics, and artificial intelligence to improved audit processes are integrated into our methodologies to give a streamlined audit experience that results in higher transparency and deeper insights. Deloitte Global’s bespoke audit platforms Deloitte Omnia and Deloitte Levvia have been recognized globally and are just two examples of how we integrate technological innovation into our work. Go beyond expectation Leveraging leading-edge technology, and a various skillsets, knowledge and experience to not just offer audit and assurance services of the highest quality, but to generate true value for our clients highlighting not just problems to be fixed but also opportunities for excellence. Impact Report | Responsible Business Conduct | © 2024 Deloitte Israel & Co. 24
Contribute to shaping the future of workforce Contribute to shaping the future of workforce Deloitte IL is often the first career step for Junior professionals. This gives us a responsibility, and the privilege, to contribute to establishing sound foundations for the rest of their career. We endeavor to do this in a way that equips them with the knowledge and skills they need, and the tools to navigate the conflicts inherent to their profession. We aim that Deloitte IL alumni be professional, exercise independent thinking, possess a versatility of skills, and be guided by integrity and client-facing conviction. Sound foundations and open discourse For both our CEO and our new youngest junior employee, we maintain open and candid communications, focusing on training our people to exercise their judgment and navigate their profession with conviction based on sound methodological footing. Our clients know that choosing Deloitte IL means they will get professionals who are always guided by their mission to support the long-term interests of their company. Career-long learning and development As part of the Deloitte Global Network, Employees at Deloitte IL, and especially professional who serve as “capital markets gatekeepers”, have access to the Deloitte Global Network’s curriculum of training on a variety of mediums. This supplements attentive “on the job development” and is enhanced with training that is oriented to the local business context. For example, audit professionals undergo 64 hours of professional training annually, on average. Advocating for Responsibility in Taxation Responsible Procurement As a rule, our tax professionals give advisory under a strict adherence to the principle that it must stand up to legal scrutiny as a certainty, and not on a “more likely than not” principle. We are glad to say this is a draw to many employees and clients who know they will get advice that their consultants can defend unreservedly. As part of the work plan for FY24, we aim to incorporate more principles of diversity in our procurement processes. As a first step, we have initiated a collaboration with the WeSource platform to facilitate procurement that takes diversity parameters into consideration. “Every member of the tax team start their day with a sense of purpose and end it with a smile and the pride of knowing they've made a difference” Alona Meron, Tax Leader Impact Report | Responsible Business Conduct | © 2024 Deloitte Israel & Co. 25
Education & Workforce Development For any organization, it can be said that it is only as good as its people. This is all the more true for a services firm. Our people’s skills, knowledge and creativity are the deciding factor in the value we can generate for our clients and the impact we can create. Within our firm, in the services we offer, and in our engagement with different communities, we seek to create opportunities for learning and developing professional excellence, and to promote careers that sustain wellbeing, and life-balance.
A Comprehensive Learning & Development Approach Our comprehensive learning and development approach is centered around the skills our people need to succeed in each stage of their career. As they develop their careers, whether at Deloitte or elsewhere, we hope employees take with them what they learned with us as a sound foundation. We see this as one of the most significant ways our impact can matter – to them personally and to the market. Learning in the flow of life On average employees at Deloitte Israel dedicated 38 hours to structured learning, and undoubtedly countless more utilizing the platforms available to them for independent learning. Starting right Dedicated Onboarding program for new employees during first 3 months in the firm sets the foundations for success with structured and informal learning as well as getting to know the firm and the relevant processes and systems. Personalized, well-rounded learning Each Deloitte employee has been assigned a learning journey tailored to their realm of services and industry focus, their experience level, position and personal capabilities. These learning journeys are built around 4 axes: professional, personal, management and Industry specific. Skills driven – Tech enabled The learning approach is enabled by an innovative, AI based Learning experience platform. Alongside content developed internally, the system interfaces with leading learning sites to offer over 2 million different content items so employees can further personalize their learning paths with deeper dives into professional topics, or with complementary training on hard and soft skills including tools and systems, time management, interpersonal communication, and more. Diverse learning channels for a diverse team Great mind think alike. But sometimes, they differ, and that's an important key to creativity, innovation and success. To accommodate the differences in how different people learn most effectively, learning is offered on a variety of mediums; written and recorded content for independent study, live sessions in person or online, specially developed (often gamified) tutorials, and content-based learning communities and forums. Impact Report | Education& Workforce Development 27 | © 2024 Deloitte Israel & Co. “In a nutshell – it’s our people. For us, it is growing professionals. Our investment in our people gives value to clients which is the immediate goal. Beyond that, it is clear to us that many employees will move on from Deloitte and take the fruits of that investment with them. It will not stay with us - and not only are we okay with that, we want it. This is part of our value to the Israeli economy” Sharon Katz, Chief People Officer
Wellbeing and Balance Alongside a Fulfilling Career We expect a lot of our people and so we want to create a working environment that facilitates wellbeing and to show them they are valued. To do this we offer a combination of flexible working conditions, benefits and company events. Supporting balance with flexibility Deloitte officially moved to a hybrid working model with the return to office work after the Covid-19 pandemic. This enables our people a higher flexibility. Our two new “hub” offices, set to open in central locations in 2024, will further enhance flexibility and enable employees to shorten commute times. Teamwork is invaluable, and so we take pains to maintain the team atmosphere and offer managers extensive support and training on managing hybrid teams. Health and wellbeing Employees have access to several health benefits, including subsidized extended health insurance (for employees with four years seniority as well as managers and above) and some weekly sport trainings. Mental health is as important as physical health, and some benefits are focused on this. For example, a subsidized meditation application or a several subsidized meetings with a mental health professional, and we can refer to further assistance as necessary. This year we held our wellbeing week with numerous opportunities for learning about different components of a healthy lifestyle as well as taking first steps to incorporate them into routines. Show our people our appreciation At various points throughout the year we take a moment to show our appreciation and take time out with corporate events or small tokens given to employees to mark important milestones (for example with birthday gifts or backpacks gifted to employees’ children when they first start school). Impact Report | Education& Workforce Development 28 | © 2024 Deloitte Israel & Co. Developing the leadership of the future Great emphasis is put on developing our Firm’s future leaders providing the right skill sets. Managers are supported from their very first steps with mentoring and training that address topics such as giving feedback, managing hybrid and diverse teams, effective communication, balancing the demands of work and family life, and tools for best connecting and serving clients. Hidden talents Dedicated “academies”, especially in tech implementations offerings, enable hiring and training talented yet experienced hires as certified professionals in a short period of time.
• Supporting leaders as they step up CXO Next Generation labs, a proprietary Deloitte asset, are workshops for executives coming in C-level roles. In these workshops, these current and future leaders gain tools and guidance for taking their next big step and hit the ground running. • CXO Transition Lab Personalized Transition Labs offer newly promoted senior executives a moment to reflect and plan their next steps with guidance and structure, resulting in a 100-day plan This Global program. Such labs provided local leaders with the tools, insights and plans to transition into their significant new role smoothly. This is one way in which we draw from our global expertise and adapt techniques to the local Israeli market to drive local innovation and success. The next generation of leaders – We are happy to note that many Deloitte IL alumni continue their careers in key positions throughout the Israeli market. We hope they carry with them the foundations they set during their time at Deloitte IL. We are very proud to serve as a training ground for future industry leaders and this is a significant part of our impact and value to the Israeli market: a lighthouse of knowledge and expertise. Along the years, Deloitte’s experts in Israel and all around the globe, has published articles, surveys and reports, that equip our clients and colleagues with critical insights that may help them navigate future challenges and disruptions in the fields of business, technology, and disruptive trends. Some of the publications are periodicals reports, such as The Future of Work, The Millennials and GenZ Survey, Tech Trends, TMT Predictions, Industry Outlooks, Human Capital Trends, Digital Media Trends and more. For Deloitte IL, those insightful reports are breeding ground for evolving the knowledge and skills of the Israeli workforce, which in turn, looking forward to participating in the related webinars, events and roadshows. Helping Clients Navigate the Changing Landscape The world of work is changing quickly. Whether it is a global pandemic, financial crisis, disruptive technological change or military operation - we support our clients in navigating these changes so they and their people can thrive. We help organizations achieve resilience and maintain business continuity by helping them to understand the current situation - from strategic perspective and to create systems - that will support both current and future organizational needs. We provide clients – and the Israeli business ecosystem as a whole – key insights on rising trends, as well as analyses and recommendations on how to best adapt to these changes. We perceive those moments of truth – volatile business climate, times of crisis - as another opportunity. Linur Dloomy, Advisory Leader Supporting Managerial Excellence in Industry We are a services firm, and we promote managerial excellence. We believe our clients would attest to the value we create for them on a wide spectrum of topics that are on the management agenda. The significant number of returning and long-term clients is a further validation of that. We seek to go above and beyond with unique service offerings that can bring added value, thought leadership and community engagement. Impact Report | Education& Workforce Development | © 2024 Deloitte Israel & Co. 29 “We aim to support the resilience and business continuity of organizations in the private and public sectors with improved internal processes and risk management. It is protecting and representing the public interests, facilitating transparency, and advocating better governance”
Utilize our Strengths to Increase Workforce Participation Deloitte's local and global social action strategy focuses on leveraging the core capabilities of its people - consulting, guidance and support. Just as we advise and guide our clients to business success, so we aim to advise and guide adults and teenagers (women and men) towards successful participation in the workforce based on their skills and desire. To contribute to creating more equal opportunities, our focus is on closing knowledge and skills gaps among graduates and youth from the socio-geographic periphery of Israel. One of the ways in which we do this is through collaboration with associations that focus on social leadership. In FY23 Deloitte employees volunteered 1,128 hours in organizations promoting social mobility and equal opportunity, at an estimated value of $144,384. Those voluntarily work takes part during the working hours, according to our social impact policy and does not include personal volunteering activities. This figure does not include participation (under the Deloitte Policies) in NGO boards and advisory committees of non-for-profit organizations. Haifa Office and Ahava Youth Village Twice a week, employees come to the boarding school for kids and youth at risk, teach English and Mathematics. With this long-term relationship, the true value is in the meeting and bond created with the children. Think (Ta'asyeda) Often the barrier is simply lack of knowledge. Deloitte IL employees took part in bridging this gap in events led by Think, an organization that works to increase awareness of professional possibilities and the career paths that can lead to them. Horizon (masa el haOfek) An NGO aimed at equipping young adults just starting their career journeys with tools for integration in the workforce. Deloitte Israel hosted participants at the offices to talk about business, for “shadowing” days, and to meet our practice leaders for mentoring and advice. Impact Report | Education& Workforce Development 30 | © 2024 Deloitte Israel & Co. CASE STUDY Co-Impact – working towards adequate representation in the workforce Co-Impact is a nonprofit organization that focuses on integration of young professionals from Arab communities into positions in the private sector. Deloitte’s partnership with CoImpact is profound and significant, has started back in 2014 and thrive to those days. This partnership has yield significant increase in the representation of Arab employees at Deloitte Israel, established mechanisms, adapting processes and assimilating concepts for creating an organizational culture of diversity and inclusion. The profession that we as Deloitte Israel, gained in inclusion of our employees from the Arab communities, has provided the privileged to be part of impactful forums, council and ecosystems, such as presidential meetings, business council, professional forums, and more. "Impact that matters is what drives me—it's about leaving a mark that truly counts, whether it's by helping others, inspiring change, or making a difference in people's lives." Sigal Adania-Kapun Consulting Leaderr
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