Time For Profound Change

A New Era

In a transformative era, businesses confront challenges like environmental degradation, social disparities, and resource scarcity, prompting a strategic pivot towards sustainability. This shift moves focus from short-term profits to a broader commitment to environmental and societal well-being through sustainable practices.

Business Boost

Research shows that sustainability-focused organizations are more resilient to future uncertainties, including economic, environmental, and social disruptions. Success depends on fully integrating sustainability principles, from strong risk management to compliance with environmental and social standards.

Our Ambition

Radial pledges to set a new standard in the consulting sector by championing environmental, social, and governance (ESG) monitoring and disclosure.

Sustainable Finance Consulting

Foundation

Launched in April 2022, we are committed to integrating climate, societal, and enduring values into our strategic decisions. Despite the challenge of measuring ESG KPIs, our early adoption positions us to navigate these complexities effectively.

ESG Focus

Our ESG materiality analysis identifies key issues, guiding our actions for both business and community impact. Leveraging financial skills and Power BI, we’ve developed an automated ESG Controlling & Reporting system, enhancing collective data efforts within our ERP and Office 365 setup.

ESG Goals

Aiming for net-zero emissions, we focus on reducing emissions per employee. We support our team’s growth and well-being, ensuring client satisfaction, and adhere to governance standards like anti-bribery, cyber security, and fair pay.

Our Sustainability Goals

Radial has identified the following Sustainability Goals to be applicable to our business model:

We promote healthy lifestyles and well-being for employees and through client engagements.

We foster workplace diversity and support gender equality in business practices.a

We support educational initiatives and offer skill development and training services.

We enhance sustainable economic growth and decent work conditions in consulting and client businesses.

We advise on sustainable innovation and efficient infrastructure in client projects.

We work towards reducing inequalities within the firm and in advisory practices for clients.

We guide businesses in sustainable production and consumption practices.

We promote climate resilience and low-carbon strategies in all sectors.

Materiality Assessment

Evaluation

We conducted a profound materiality assessment in our 2022 ESG evaluation to identify key sustainability challenges for Radial.

Double Materiality

Utilizing the double materiality framework, we examined issues from both impact and financial perspectives. Our approach assessed how Radial’s operations affect society and the environment, and how external risks and opportunities could impact the company financially. This dual analysis ensures comprehensive stakeholder consideration.

Our Key ESG KPIs

Individual Coaching

Employee Satisfaction

Training and Education Hours

Gender Distribution

Gender Pay Gap

Employee Satisfaction

Management Pay Ratio

Client Satisfaction

Code of Conduct

Donations

Gender Distribution

Management Pay Ratio

Total Scope I – III Emissions

Emissions per FTE

Total Scope I – III Emissions

Emissions per FTE

Environmental

Emissions Overview

Our total emssions of 62.4 mtCO₂e, which equals 7.0 mtCO₂e per Headcount(PY: 15.9 mtCO₂e, which equaled 4.9 mtCO₂e per Headcount), are entirely Scope II or Scope III as we do not own assets such as buildings or vehicles. The majority of emissions (58.0 mtCO₂e) result from Scope III upstream activities, mostly business travel, purchased goods and services. Scope II emissions (3.9 mtCO₂e) result from purchasing electricity for laptops and other electronic devices.

Emissions by Scope (in mtCO²e)

Legend:

  • Scope II
  • Scope III
Emissions Context

The increase compared to the prior year from an absolute perspective is mostly related to the growth of the business and the team as well as the first full year of business. Excluding one-off effects, emissions per Heacount could have been reduced to 4.8 mtCO₂e per Heacount compared to 4.9 mtCO₂e in FY22. Through donations, Radial offset an equivalent of 64.0 mtCO₂e and therefore overcompensates net zero.

Emissions by Scope and Headcount (in mtCO²e)

Legend:

  • Scope II
  • Scope III
Emissions Category

Despite our ambition to limit business travels, as well as our achieved reduction of emissions per Headcount, travelling accounts for more than 52.8% of our total emissions (thereof, 40.2% airplane travelling, 6.4% non-company car travelling, and 6.2% overnight stays). A one-off effect in FY23 relates to the construction of new office premises in Munich accounting for 30.7% of our total emissions. Furthermore, cloud data traffic amounts to 4.1% of total emissions. The remaining approx. 12.4% of our total emissions relate to the production and the transport of goods, as well as the consumption of electricity and water due to our office premises.

Emissions by Category (in mtCO²e)

Legend:

  • Business Travel
  • Purchased Goods & Services
  • Purchased Electricity
  • Other
  • Leased Assets
  • Business Meal
  • Transportation & Distribution
Business Travel

As business travel accounts for more than 53% of our emissions, we are committed to further reduce travel whenever possible and choose trains or public transportation over other modes of transportation. Of 115,945 kilometers (PY: 34,500 kilometers) travelled, 37.6% (PY: 41.5%) were covered by train or public transportation. The increased airplane use, and the usage of rental cars were due to projects where alternatives would have led to disproportionate efforts.

Distance travelled in FY23 (in km)

Legend:

  • Airplane
  • Train/Public Transportation
  • Non-Company Car
Accommodations and Meals

108 hotel overnight stays (PY: 44) incurred and 465 individual business meals (PY: 236) have been consumed, mostly driven by business and team growth and the first full year of business.

Social

Gender Distribution

In terms of gender distribution, the gender quota improved to 77% men (8) (PY: 80% (4)) and 23% women (3) (PY: 20% (1)). This shift not only reflects our commitment to creating a balanced workforce but also highlights our efforts in fostering an inclusive environment where talent thrives regardless of gender.

Gender Quota in FY23 (in Headcount)

Legend:

  • Male
  • Female
Gender Pay Gap

There is no gender pay gap due to our internally fully transparent and rank-dependent salaries for all team members. This policy ensures that pay is commensurate with role and performance, not gender, contributing to a culture of fairness and equality.

Diversity

As a member of Charta der Vielfalt, we promote the recognition, appreciation and integration of diversity in our business culture.

Client Satisfaction

Client satisfaction is one of our central KPIs, also in the context of our team incentive system. In client satisfaction, we achieved an average rating of 4.9 out of 5 stars based on a total of 14 projects rated by clients in FY23.

Overall Client Satisfaction in FY23 (based on 14 ratings)

Team Member Satisfaction

We achieved 5 of 5 stars in employee satisfaction. Around 45 hours per FTE were invested in Learning & Development. Every team member has access to individual coaching, promoting mental health and personal development. Through our benefits with Belonio (“Deutschlandticket” and lunch subsidies), as well as Wellpass allowing access to various gyms and wellness centers, we foster a sustainable way of travelling and physical health for our team members.

Overall Team Member Satisfaction in FY23 (based on 8 ratings)

Charity

In FY23, Radial did not invest time from the team into charitable projects, mainly due to high team utilization and not available capacities. In FY 22, Radial team members invested 114 hours on charitable projects, mostly the Learning Lions initiative initiated by Prince Ludwig von Bayern.

Donations

Radial (including team members) donated a total of EUR 4,525 (PY: EUR 2,427) to charitable organizations as per the Radial Pledge.

Governance

ESG & Risk Management

Sustainability issues are firmly anchored in our corporate strategy and decisions. We have implemented risk management practices to identify, assess, and manage corporate risks continuously. Legal regulations and internal guidelines are strictly adhered to. This is supported by a money laundering check for every new client and following the highest data protection and cyber security standards.

Salary Transparency

The salaries of employees and the remuneration of management can be viewed transparently on our intranet. A disclosure agreement is signed as part of the employment contracts. The management pay ratio amounts to 2.2 as per 31 December 2023.

Outlook

At A Glance

We at Radial understand the profound impact that businesses can have on shaping a sustainable future. Our commitment to the SDGs is integral to our consulting practices, guiding us in fostering innovation, promoting equality, and driving sustainable economic growth. Despite being a small firm, we are dedicated to making a big difference, proving that size does not limit impact.

Green Policies

We are committed to integrating sustainable practices across all business operations, emphasizing renewable energy use, waste reduction, and eco-friendly materials procurement.

ESG Consulting

We provide expert ESG consulting, enabling companies to deeply integrate sustainability within their strategic and operational processes, through detailed assessments, strategic guidance, and hands-on support for implementing responsible and sustainable business practices.

Get to know us virtually

Call us at
089-4520-6630

E-Mail us at
hello@
radial.team

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Radial Consulting GmbH
Radial GmbH Wirtschaftspruefungsgesellschaft

Fuerstenstr. 11
80333 Munich
Germany