Sustainability is as important to our clients as it is to PwC. So to ensure that we continue to provide advice on the very latest approaches and best practice, the past year has seen heavy investment in our Sustainability && Climate Change (S&&CC) practice.
A major part of this has been the acquisition of Sustainable Finance, an international advisory firm focused on environmental and social risk management in the financial sector.
PwC climate change campaign at Copenhagen airport
Malcolm Preston
Practice Leader, PwC Sustainability & Climate Change
Sustainable Finance was established in 2003 and helped develop the Equator Principles, the financial industry standard for managing environmental and social risks in project financing. Co-founders Leo Johnson and Matt Arnold have joined PwC as direct entry partners in the UK and US respectively.
The acquisition of Sustainable Finance follows the recent appointment of Malcolm Preston, a senior partner, as S&CC practice leader and the trebling in size of the firm’s sustainability and climate change team overall. In the last year, the team has worked on ground-breaking projects for both public and private sector clients, and it also works closely with the World Business Council for Sustainable Development and the Copenhagen Climate Council. In May, we launched an advertising campaign (pwc.com/climateready) to raise awareness of the issues that will be discussed at the next Global Treaty on climate change in December.
What began as a crisis for individual markets and institutions has now undermined the foundations of the entire global financial system.
The day after tomorrow is PwC’s thought paper on how the financial services industry will adapt to its new world with significant changes to its traditional models. The paper analyses the emerging themes as the fallout from the crisis continues and financial services providers grapple with a new environment.
The day after tomorrow
Jeremy Scott
Senior Financial Services partner
According to the paper, distinguishing features of the new landscape are an accelerated shift of economic power towards the East; a simpler, more transparent form of banking based on a more classic banking model; governments ‘inside the tent’, potentially raising significant conflicts of interest; a stricter governance structure based on national and international regulation and the need for sustainable business models that move financial institutions from survival to longer term strategies.
As with all broadcasters, the arrival of the digital age is having a profound effect on the BBC. Everyone, from TV producers to live broadcast teams, must transform the way they operate to secure their competitive position in the market in the future.

Under a backdrop of demonstrating public value and in a wider and more varied competitive marketplace, the BBC established the ‘Next Programme’ in 2007 – a business transformation programme focusing on the technology specialists in four different divisions who support both IT and broadcast infrastructure across the Corporation. As well as the realisation of savings, the objective of the programme was to standardise processes and systems across the four teams, and consolidate the divisions, resulting in a headcount reduction of approximately 20%.
As part of the Next Programme, PwC was appointed to help develop a business case around how technology consolidation could realise financial savings. On approval of the business case, PwC worked with the BBC to set up and prepare internal teams to drive and deliver the expected benefits. We then assisted the teams, and senior management, through the first year of implementation.
Year 1 target savings were exceeded and the programme is currently on target to deliver in years 2 and beyond.
England’s bid to host the 2018 or 2022 FIFA World Cup Finals was launched in May at Wembley by David Beckham, Wayne Rooney and members of the successful 1966 World Cup winning team. Members of the PwC team, including project leader and sports and leisure leader Julie Clark and Executive Board member Paul Rawlinson, were also at Wembley on the day and Paul explained why PwC is supporting the bid:
'Winning the bid to host the FIFA World Cup would be a fantastic boost to sport in this country and give a real lift to the economy. In addition to the obvious sporting benefits, we believe that hosting the 2018 World Cup will significantly benefit England’s economy.
The overlap between cities where we have an existing PwC office and strong presence in the local community and the likely stadia which would host matches in the tournament creates a real opportunity for everyone in our firm to get behind the bid. Since we announced our support for England 2018 there has been a real sense of excitement and anticipation amongst our partners and staff and a determination to do all we can to help bring the FIFA World Cup to England'.

© Copyright: Acton Images
PwC: United for England’s World Cup Bid
Andy Anson is Chief Executive of England 2018:
In April this year, financial close was finally achieved on the Greater Manchester Waste PFI Contract and the associated Runcorn Energy from Waste project, an event delayed by at least 12 months as a result of the credit crunch.
PwC advised the sponsors on both transactions, working with Viridor Ltd and John Laing Investments Ltd throughout the three year long PFI tender process and, since 2007, with Viridor, John Laing and Ineos plc on the Runcorn Energy from Waste project. Worth some £3.8bn over 25 years, the transactions form the largest waste PFI contract in Western Europe, treating over 1.3 million tonnes of municipal waste a year.
PwC worked with the sponsors to raise £590m in project finance to fund investment in a variety of recycling, fuel preparation and energy generation facilities. Increasingly difficult conditions in the funding markets coupled with the exceptional complex nature of the transactions made financing hard to raise and meant that an innovative funding structure was needed. At financial close senior debt was provided by four commercial lenders, the European Investment Bank, the Greater Manchester Waste Disposal Authority and the Treasury's new Infrastructure Funding Unit – the first time this unit had supported a PFI transaction.
John Gibbs Partner, PwC Corporate Finance
Katy Cheung, an Audit senior associate, reflects on life through the eyes of a third-year graduate. Katy has a degree in Physics and Astronomy from Durham and currently works in our Newcastle office
'I first came to PwC on an internship, having been through the same assessment and recruitment process as a graduate. Before you start meeting with clients, you take part in a week's training at PwC’s own conference centre – and it’s this initial experience that really set the tone for me. PwC seems genuinely focused on developing its people – not only to be auditors but really equipping them for a life in business.
Katy Cheung
Kevin Nicholson
Head of Regions
'I've been supported through my ACA qualification, and alongside compulsory training there are courses you can be enrolled on if there is a gap in your knowledge. You are also expected to learn on the job and are constantly being coached by those more senior than you.
'Now three years in, I audit clients of various sizes and industries. Although the underlying job is the same, it's varied, as I'm always working with different people in different places and learning how different businesses work.
'The people here make it an enjoyable place to work. There’s a lot of good banter and there are social events throughout the year.
'As for the future, once I’m fully qualified I think I might start to look internally for a secondment in order to gain a different set of experiences. In that respect PwC offers some incredible choices, so you don’t necessarily have to look outside the firm to do something different.'
Heather Blumberg, currently on secondment to the Treasury from PwC, shares her experiences:
Heather Blumberg: Treasury secondment
‘I was originally brought in as a programme manager to design and set up the project structure. The responsibilities of the team include providing reports to the Treasury to help it make informed decisions on the APS, as well as liaising with other consultancies, banks, investment banks and various teams of lawyers.
‘We’ve been able to help the Treasury establish a Project Management Office that will continue to operate effectively long after the engagement has ended.
‘This has been an incredible learning opportunity. It’s a groundbreaking assignment for a high-profile client and it’s giving me the opportunity to manage a large team under incredible pressure.
‘I am a working mum and the firm has been very supportive, ensuring I have access to the numerous provisions available and that I am being “looked after” and managing to get some downtime.’
Now in its 23rd year, the annual PwC Pantomime acts as a development tool for PwC employees up and down the country. For the 200 people involved, it presents a unique opportunity to learn new skills outside the normal work environment, as well as to build personal networks across the firm. Time management is critical, but so are leadership, planning and communication. The Panto has built up over the years to be a professionally run society. Work on the new production starts as soon as the curtain has gone down on the previous year’s shows. Throughout the year those involved give up to 10,000 hours of their time to the development of the show, mostly at evenings and weekends, but each participant must also balance the demands of the production with their responsibilities at work. The ability of the Panto community to work under pressure as a team is highlighted by many as the secret of the show’s success. Those involved are drawn from across the firm and from all grades, each with a different skill and each prepared to help others with tasks varying from choreography to set building, marketing to voice-coaching.
In the limelight: PwC pantomime
Paul Rawlinson
Head of Markets and Industries
Brian Henderson, Dame for the 2009 show and Director of the 2010 show, has been involved for five of the past seven years: “Everyone in the show has a hidden talent that they don’t get to use as part of their day job. Whether cast, band or crew, I’m always impressed by the enthusiasm and commitment of the whole team. It’s a huge project run at a very professional level”.
Adam Mahomed was a senior crew member in 2009 and will be Stage Manager for 2010: “We organise a backstage tour for blind children who meet the cast, play the instruments and touch the props so that they have a better understanding of the show when they hear it. This is an emotional event for the company and it's hard to find a dry eye in the house. I think this sums up what pantomime is about – giving something back to the communities we serve”.
Amelia Goudie was an Assistant Producer and a Principal character in Sleeping Beauty last year. She comments on how the Panto has helped her in her day to day work: “It has given me the opportunity to gain skills and experience I have not so far been able to gain in my employment, including chairing meetings, something I had never done before, and also build up a network of contacts across the firm which make doing my job easier. It has also contributed to my development in terms of problem-solving and communication”. The 11 performances are the culmination of a year’s hard work planning, producing, auditioning and rehearsing. For three-time Musical Director, Julia Bowyer, it’s all worthwhile: “Being practically deafened by the wall of sound from 1,000 screaming, singing under-10s is an amazing feeling.”
“Back in the office, my colleagues are all very supportive, but can’t resist the obvious jokes: ‘Where’s the stapler? It’s behind you.’
The Panto is seen by over 9,000 people a year, mostly children from schools and charities. The performance in the theatre is also broadcast live to seven children’s hospitals around the UK and Ireland, where PwC employees join the ward staff to give out Panto activity packs, song sheets and games.
Glyn Barker, Vice Chairman, comments on the firm’s senior decision-maker programme, which brings together current and future leaders from the public and private sectors.
'Board members are facing greater challenges than ever before in terms of rising expectations, regulatory requirements and legal obligations. PwC is in a unique position to help. We have an unrivalled network with senior decision makers in the public and private sectors; contacts that have been built over many years of client service.

Glyn Barker
‘And within the firm we have leading experts in every aspect of Board responsibilities and corporate leadership. Our senior decision-maker programme brings together these two groups to share their experiences and learning.
'We also believe that PwC should play its full part in developing the next generation of Board members for the public and private sectors. We have a range of programmes focused on helping to prepare these future leaders.
'I know from the time I spend talking to senior figures that they value the chance to spend time both with their peers and with experienced partners from PwC to discuss some of the common issues they face leading large organisations. And alongside these meetings we regularly research and publish briefings on the latest trends and best practice.'
Substantial climate change over the coming years is unavoidable and although there is a clear need to take action, progress to date has been slow and its impact limited. Over the past year, PwC has been looking at how Concentrating Solar Thermal Power (CSP) could play an important part in both delivering energy security and addressing global greenhouse gas emissions.

With solar energy virtually unlimited in most parts of the world, CSP is one of the few currently available low-carbon technologies which could play a dominant role in the electricity sector over the next 40 years. It also provides tremendous opportunities to support economic and social development in developing countries.
To help us deliver on this ambition, PwC has formed Solar Potential – a working partnership with The Climate Group and the Potsdam Institute for Climate Impact Research. This partnership aims to accelerate the global uptake of renewable sources of electricity as a direct means of tackling climate change and energy security.
Over the next few years we will be working with organisations and governments around the world to develop a roadmap for delivering ‘solar potential’. This blueprint will help governments take direct and immediate action to move us to a lower carbon world.
As part of our commitment to work more closely with social enterprises around the UK, PwC provides bursaries and mentoring to a number of up-and-coming entrepreneurs at the School for Social Entrepreneurs (SSE).
SSE was set up in 1997 to provide training and opportunities to enable people to use their creative and entrepreneurial abilities more fully for social benefit. These social entrepreneurs are the lifeblood of the third sector, responding to unmet needs and new opportunities in innovative, robust and sustainable ways.
SSE runs practical learning programmes across the UK aimed at helping develop the individual entrepreneur and their organisation simultaneously. Whilst entrepreneurship can’t be taught, SSE helps people develop their own capacities in a supportive, collaborative environment.
PwC’s mentoring role is an opportunity for the firm to use its business knowledge and expertise to support the resourcefulness, drive and innovation of social entrepreneurs in the form of practical action.

Alastair Wilson
CEO, SSE
The Wildfowl & Wetlands Trust (WWT) is a leading UK conservation organisation which works to save wetlands for wildlife and people worldwide, and raise awareness of the issues that affect their survival. Founded in 1946 by the naturalist and artist, the late Sir Peter Scott, the WWT is the only UK charity with a national network of nine specialist wetland visitor centres.

Earlier this year PwC became a WWT corporate patron. Our membership will allow us to develop our environmental programme further by supporting WWT’s national network through our local offices. It also gives our staff an opportunity to support projects at WWT centres, to develop their team-building and leadership skills, as well as their understanding of the importance of the wetlands on climate change and ecosystems.
In June this year, a group of 50 PwC volunteers undertook vital work at the London Wetland Centre in Barnes, helping to remove the typha (bulrush), a prolific weed, from the centre's drainage waterways. They also painted fences, the bird hide and other wooden structures.
Martin Spray CEO of WWT, commented “We are absolutely delighted to have a partner as prestigious as PwC and look forward to developing a deep relationship with this organisation and their staff”.
This year saw the 75th anniversary of the Academy of Motion Picture Arts and Sciences and PricewaterhouseCoopers working together.
Since 1934, a select team of 12 partners from PwC (US) has counted the Academy’s Oscar ballots, hand-tallying the results and then delivering the sealed envelopes bearing the names of the winners on Oscar Night.
The two partners currently involved, Brad Oltmanns and Rick Rosas, have the dubious honour of being the only two people on the red carpet carrying briefcases. And to avoid the unthinkable, they even memorise the names of all the winners, just in case something should happen to the envelopes before the show.

Accountants to the stars
Despite the secrecy and security it hasn’t stopped people trying to find out the winners’ names before the announcement at the Oscar® ceremonies. Many stars, from Julia Roberts to Robin Williams, have in jest tried to find out who has won or grab the briefcase prior to the opening of the envelope to reveal the winner.
As part of the tradition, the intentionally low-tech process is designed to maintain the utmost secrecy and it’s been at the heart of PwC’s relationship with the Academy for 75 years, one of the firm’s most high-profile and enduring client relationships.
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