HSII
2023
Sustainability Report
Our Swedish team restored the natural beauty of the
Stockholm archipelago by diligently picking up litter.
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
2
01
04
A Message
03
Sustainability
08
From Our CEO
Priorities
02
05
2023 Executive
04
Sustainability
10
Summary
With Clients
Partnering With Clients
11
Leadership Teams of
the Future
12
03
Social Impact
15
Sustainability
17
Publications
19
About Heidrick &
05
Struggles
Our Business Segments
06
Awards and Recognitions
07
06
Our People,
20
Culture & Benefits
Global Network of
21
Colleagues
How We Work
22
Total Rewards
24
Talent Management
and Development
26
Diversity, Equity
& Inclusion
30
07
Our Communities
36
Global Day of Service
37
Philanthropic Committee
39
08
10
Our Climate
Appendix
57
Strategy
40
GRI Index
58
Strategy & Approach
41
SASB Index
67
Energy & Emissions
TCFD Index
68
Management
42
Responsible Operations
45
UN SDGs
69
Celebrating Earth Week
47
Sustainability Data
73
09
Our Leadership
48
& Governance
Our Current Board
49
Sustainability
51
Governance
Ethics
53
Cybersecurity
54
and Privacy
Risk Management
56
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
3
A Message From Our CEO
Dear Stakeholders, I am proud to share our 2023 Sustainability Report. Having joined Heidrick & Struggles at the beginning of this year, I was thrilled to see the efforts already made to further our responsibility and commitments to our broader communities. This past year, we have made significant strides in advancing our sustainability initiatives which are detailed in the report.
Linking Sustainability to Strategy
To first take a step back, each of the seismic events we've seen across the past five years has reshaped the way leaders must lead - and changed how companies develop and enable leaders. The advent of GenAI has begun to reshape how companies organize and operate. Ongoing geopolitical dynamics have complicated international strategies for every client. And companies need to shape the next generation of leaders and access talent in new ways.
At a time of increasing societal and, in some cases, geopolitical divisions, the word "sustainability" itself is often misused and misunderstood. For self- evident reasons, sustainability is at the core of our strategy. The commitments we make to our clients, people and investors are predicated on our
dynamic durability as an enterprise. Clients partner with us for years - and in many cases decades; investors hold us accountable for generating value now and in the future; and our best colleagues lean in to grow the business across long careers.
This requirement of institutional durability demands that we access the best talent and enable them to thrive at work, and that we endeavor to help our communities and natural environment to thrive and flourish. Without a vibrant workplace, healthy communities and a healthy planet, we cannot operate at our highest potential. Nor will we be able to create the unmatched value for clients, colleagues, and shareholders that is at the core of our strategy.
Understanding that no single organization can create lasting, positive impact alone, we are dedicated
to helping our clients adapt to the shifting expectations businesses face. As leadership requirements evolve, organizations need assistance in cultivating, accessing, and empowering talent to drive sustainable outcomes. Existing leaders require bespoke support to adapt and grow their leadership approaches. This commitment is central to our mission, both within our organization and for our clients.
Our sustainability commitments extend along five dimensions:
Creating a high performing workplace through a culture of inclusion, collaboration, and excellence.
Uniting our teams and engaging our communities through philanthropy and outreach.
Driving efficiency in our operations and reducing our impact on the natural world.
Continuously innovating to support our clients' sustainability objectives.
Holding ourselves accountable to our responsible business policies and practices.
Disclosing with Transparency
Transparency is paramount in advancing our sustainability journey. This year's report demonstrates our commitment to transparent communication, helping stakeholders track our progress toward our goals and hold us accountable. In a step toward measuring and managing our environmental impact, we are proud to announce our first CDP disclosure in 2023, with continued reporting planned for 2024. Also, over the past five years, we have extended our emissions quantification and disclosure, improving data accuracy for benchmarking and future decision-making. This increased understanding of our emissions supports our preparations for a carbon reduction strategy to reach our science-based targets.
Thank You
Heidrick & Struggles is where the best people come to do their best work. A huge thank you to our passionate and innovative global team who are driving our sustainability efforts forward. Their dedication is instrumental in creating a lasting positive impact. We remain committed to fostering collaboration that advances these goals, and we look forward to sharing our continued progress with our valued stakeholders.
Tom Monahan
CEO, Heidrick & Struggles
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
2023 Executive Summary
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
4
Our People, Culture
Our Communities
& Benefits
86%
2,900+
of our employees participated in at least
hours volunteered on Global
one employee survey
Day of Service
Our Climate Strategy
B-
CDP Climate Change Score
SBTi
Our Leadership & Governance
38%
of our Board of Directors were women
25%
63%
of our colleagues were women
45
non-profit organizations supported on Global Day of Service
We have committed to setting near-termscience-based targets with the Science Based Targets Initiative (SBTi)
of our Board of Directors identified
as belonging to racially or ethnically un- derrepresented groups
27%
of our U.S. colleagues identified
as belonging to racially or ethnically underrepresented groups
DE&I
We developed a comprehensive, strategic roadmap to serve as the foundation for driving inclusion and collaboration in achieving our Diversity, Equity & Inclusion (DE&I) goals
2,220
miles raced in support of Rwandan women
2,000
meals provided to laborers in Dubai
38%
reduction in emissions intensity per employee since 2019
60%
of our office space globally is in sustainably certified buildings
40%
of the CEO and President's direct reports were women
SOC 2 Type II
attestation received
AI
We established an Acceptable Use Policy and cross-functional deployment team
Sustainability With Clients
Through our suite of integrated human capital solutions, we work closely with our clients
across the gamut of sustainability topics.
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
5
About Heidrick & Struggles | Our Business Segments | Awards and Recognitions
About Heidrick & Struggles
We help our clients change the world, one leadership team at a timeĀ®. Heidrick
Our Values
Five primary values serve as the firm's foundation, building on the principles that have guided our employees' actions for 70 years. They have contributed to our ongoing success, helping us earn the respect of our peers in the industry and the organizations we serve. They also inform our commitment to operating sustainably
and responsibly.
Respect
Grow
Win
Always
Own
and value each
with our
as one
act with
the
individual
clients
firm
integrity
results
Our work spans
Fortune 1000 companies Major global organizations
Middle market and emerging growth companies around the world
Private equity firms
Government, higher education, and non-profit organizations
Other leading private and public entities
About This Report
This is Heidrick & Struggles' fourth sustainability report, covering how our services helped clients achieve their sustainability ambitions as well as our internal sustainability actions during fiscal year 2023, beginning January 1, 2023 through December 31, 2023, except where otherwise noted. This report was produced to align with globally recognized frameworks including the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) standard for Professional & Commercial Services, the UN Sustainability Development Goals (SDGs), and the Task Force on Climate-related Financial Disclosures (TCFD). It covers impacts within our corporate boundary - our global network of 61 offices in 30 countries. We welcome your feedback on this report and our sustainability initiatives, both internally and with clients. Reach out to our ESG Team at ESGTeam@heidrick.com.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," "could," "should," "will," "continue," and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance, and are subject to certain risks, uncertainties, and other factors, many of which are beyond our control and are difficult to predict. We describe risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, any of these forward-looking statements in our SEC filings, including our most recent Annual Report on Form 10-K and our subsequent reports on Forms 10-Q and 8-K. Except as required by law, we do not intend to update or revise any forward- looking statements as a result of new information, future events, or otherwise.
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
6
About Heidrick & Struggles
| Our Business Segments
| Awards and Recognitions
Our Business Segments
Executive Search
We partner with our clients - respected organizations across the globe - to help them build the best leadership teams in the world. Our consultants specialize in executive searches for Boards of Directors and the C-suite, including roles such as Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Digital Officer, and Chief Human Resources Officer as well as functional officer roles in areas like Information Technology, Legal, Risk, Compliance and Government Affairs, Social Impact, Marketing, Sales and Strategy, and Supply Chain and Operations. We
see heightened demand for executive searches related to Artificial Intelligence, Energy Transition, Healthcare & Life Sciences, Industrial Goods, Sustainability, and Technology.
On-Demand Talent
Through our leading On-Demand Talent services, we provide a transformational new way for our clients to quickly access flexible, independent talent options
to fulfill interim executive roles and high-impact project needs. We help clients quickly access distinct talent, expertise, and skills to solve a variety of short-term capability and capacity issues. Companies today are using On-Demand Talent to augment their leadership capacity in a wide variety of ways, including leading operational transformation projects, analyzing new business opportunities, driving profitability improvement programs, and implementing strategy. We are the biggest player in the U.S., growing in the UK, and, in 2023, we acquired Atreus Group GmbH, a leading provider of interim management in Germany.
Heidrick Consulting
We offer unique leadership advisory solutions and work with clients to make their businesses future-ready. Our success in this area comes from our deep understanding of effective leadership skills through projects with the world's premier companies. We develop more impactful leaders, aligning them and their teams around culture, purpose, and strategy to drive positive organizational change. We also support leaders in defining and implementing DE&I strategies. Working closely with our clients, we bring pragmatic solutions to create mindset shifts among leaders and teams. This helps drive performance change and deliver tangible, meaningful, and lasting impact. In 2023, we acquired businessfourzero, a London- headquartered consultancy specializing in developing and implementing purpose-driven change. This enables us to deepen our existing set of solutions and help our clients drive successful business transformations by linking purpose and strategy to leadership and culture.
Emerging Growth Initiative: Heidrick Digital
Heidrick Digital consistently innovates to meet the evolving needs of our clients. We offer unique digital solutions that address both traditional and emerging challenges.
Our flagship product, Heidrick Navigator is a comprehensive leadership intelligence platform. It combines Heidrick & Struggles' proven leadership expertise and AI-powered insights to aggregate relevant leader data across your organization to a single, integrated, real-time view offering companies a way to maximize their most important asset - their leaders. The platform allows our clients to assess, manage, and develop their leadership population at scale to achieve their business goals with the right leaders in the right roles.
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
7
About Heidrick & Struggles | Our Business Segments | Awards and Recognitions
Awards and Recognitions
Employee Awards
Christina
Cary
Recognized by Women We Admire's
Top 50 Women Leaders of DC
Liz
Hayes
Recognized by Women We Admire's
Top 50 Women Leaders in Illinois
Cecilia
Nelson-Hurt
Recognized as one of the "30 Black Stars" and received the Impact Award at the Annual Spring Luncheon benefiting the Bottomless Closet
Jennifer
Wilson
Recognized by Women We Admire's
Top 50 Women Leaders of Dallas
Industry Awards
Forbes:
World's Best Management Consulting Firms
Private Equity Wire:
Best Recruitment Company for Operations & Finance in Europe
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Sustainability Priorities
Our Climate Strategy
Our Leadership & Governance
Appendix
8
All facets of sustainability - people, planet, and business practices - are embedded across our core values.
People are at the heart of all that we do. Clients partner with us to build future- ready leadership teams that create sustained value for their organizations and stakeholders. Internally, we're focused on fostering an inclusive and collaborative culture to bring out the best in our people and ultimately, drive high-performance. We are committed to strengthening our sustainability practices, prioritizing actions that
are significant to our operations and meaningful to our global network of colleagues, clients and communities we serve.
In 2022, we conducted a materiality assessment to identify and evaluate sustainability topics that impact our business. It involved seeking guidance from recognized materiality frameworks for our industry, holding interviews with
internal and external stakeholders to hear their concerns on material issues, and then orchestrating an internal assessment that compiled and analyzed this information.
The assessment helped us identify our six sustainability priorities:
Diversity, equity, and inclusion
Customer trust
Compensation and benefits
Employee engagement and management
ESG governance
Data security and privacy
Three-step approach for our materiality assessment
1. Identification of material sustainability topics that could impact the business
We leveraged leading external frameworks and ratings to determine our critical focus areas and identified 27 priority sustainability topics. This analysis provides context for concerns from individuals represented in our wide range of key stakeholder groups: investors, clients, peers, suppliers, finance partners, industry groups, ratings organizations, employees, and our leadership and board of directors.
2. Engagement with stakeholders
We conducted interviews with individuals from our key stakeholder groups and senior leaders at Heidrick & Struggles and administered an internal survey, which further uncovered how sustainability topics could impact our business.
3. Finalization of the material sustainability topics that impact our business
We assessed the weight of the impact of each sustainability topic on the company, considering stakeholder expectations and company relevance. This process led to the identification of our six most material sustainability topics.
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
9
Our key priorities will be continually reassessed to inform our sustainability strategy, guiding future assessment of risks and opportunities faced by our business. The priorities also reinforce the importance of the relationships we build with clients, employees, and the communities we work in. Human
Priority Area
Progress in 2023
Planned Actions in 2024
connection is at the core of our business. Maintaining strong relationships
with our stakeholders allows us to improve our work culture, better serve local community needs, and, most importantly, help our clients build world-changing leadership teams.
Heidrick & Struggles plans to conduct a double materiality assessment aligned with guidelines set by
the European Financial Reporting Advisory Group (EFRAG) in the second half of 2024.
This double materiality assessment considers both the impact of sustainability topics on our business as well as how our company impacts society and the environment. Performing an EFRAG-aligned double materiality assessment in 2024 will improve our understanding of our priority issues and support the building of management plans to address them.
Diversity, equity,
Compensation & benefits
Employee engagement
Data security & privacy
Developed a strategic roadmap to serve as the foundation for driving inclusion and collaboration in achieving our DE&I efforts
Aligned go-to-market approach across business lines to drive increased customer satisfaction
Established the Global Parental Leave Task Force and Health & Wellbeing Task Force
Created internal mobility guidelines to support employees' career growth
Committed to the science-based target initiative (SBTi)
Submitted first CDP disclosure
Updated policies and programs to follow global privacy regulations
Establish a success metrics scorecard
Strengthen the integration of our services and investment in talent and product to align with our clients' urgent needs
Create a strategy to implement recommendations from task forces
Conduct a job leveling exercise across business lines
Continue to review results from our voice of employee survey and develop strategies to address feedback
Submit near-termscience-based targets for approval Conduct a double-materiality assessment Continue CDP reporting
Develop AI governance program that complies with new regulations and existing privacy laws
A Message From Our CEO
Executive Summary
About Us
Sustainability Priorities
Sustainability With Clients
Our People, Culture & Benefits
Our Communities
Our Climate Strategy
Our Leadership & Governance
Appendix
10
Sustainability
With Clients
Enabling clients to perform at the highest level through future-ready leadership and impact strategies.
Our comprehensive talent and human capital
offerings enable our clients to build future-focused
"leadership teams. I'm incredibly proud of the
collective efforts and positive impact the firm has
had, and I am excited to see how we, in partnership
with our clients, can continue to help change the
world for the better.
"
Tom Murray
President
Disclaimer
Heidrick & Struggles International Inc. published this content on 13 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2024 19:32:01 UTC.