Heidrick & Luts International, Inc. (HSII): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico da pesquisa de executivos globais, Heidrick & A Luts International, Inc. fica na encruzilhada de desafios globais complexos, navegando em uma intrincada cenário de transformações políticas, econômicas e tecnológicas. Esta análise de pilões revela as dimensões multifacetadas que moldam o posicionamento estratégico da empresa, revelando como um de primeira linha A potência de aquisição de talentos se adapta a mudanças de mercado sem precedentes, tensões geopolíticas e dinâmica da força de trabalho em evolução. Mergulhe profundamente nos fatores externos críticos que influenciam a capacidade desse líder de recrutamento internacional de conectar talentos excepcionais a oportunidades de liderança transformadora em diversos ecossistemas globais.

Heidrick & Luts International, Inc. (HSII) - Análise de Pestle: Fatores Políticos

Empresa de pesquisa de executivos globais operando em vários países

Heidrick & As lutas opera em 35 países a partir de 2024, com presença significativa em mercados politicamente diversos.

Região	Número de países	Nível de risco político
América do Norte	3	Baixo
Europa	15	Baixo médio
Ásia -Pacífico	10	Médio
América latina	5	Alto
Médio Oriente & África	7	Alto

Impacto potencial das tensões geopolíticas

As tensões geopolíticas afetam diretamente os mercados de recrutamento executivos, com desafios regionais específicos:

• Tensões comerciais EUA-China que afetam o recrutamento do setor de tecnologia
• Mudanças regulatórias europeias após o Brexit, impactando a mobilidade de talentos
• Instabilidade política do Oriente Médio, criando volatilidade de recrutamento

Regulamentos governamentais que afetam a aquisição de talentos transfronteiriços

Custos de conformidade regulatória para aquisição internacional de talentos:

Região	Custo de conformidade (anual)	Licitação de trabalho Complexidade
Estados Unidos	$250,000	Alto
União Europeia	$180,000	Médio
China	$300,000	Muito alto

Navegando ambientes políticos complexos

Estratégias de mitigação de riscos políticos implementados entre os mercados:

• Experiência jurídica local em 22 países
• Equipe dedicada de avaliação de risco político
• Sistemas de monitoramento geopolítico em tempo real

Despesas de adaptação do cenário político: US $ 4,7 milhões em 2023 para infraestrutura global de gerenciamento de riscos políticos.

Heidrick & Luts International, Inc. (HSII) - Análise de Pestle: Fatores Econômicos

Dependência econômica global

Heidrick & A receita das lutas em 2023 foi de US $ 745,1 milhões, com uma correlação direta com o desempenho econômico global. Os serviços de pesquisa executiva e consultoria de liderança da empresa estão criticamente ligados a padrões de gastos corporativos.

Vulnerabilidade econômica

Indicador econômico	Impacto no HSII	2023 desempenho
Orçamentos de contratação corporativos	Impacto de receita direta	Receita total de US $ 745,1 milhões
Crescimento global do PIB	Potencial de expansão do mercado	3,1% de crescimento global projetado
Gastos corporativos multinacionais	Demanda de serviço	US $ 412,3 milhões da pesquisa executiva

Análise do modelo de receita

Em 2023, Heidrick & Lutas geradas US $ 332,8 milhões da liderança consultoria, representando 44,6% da receita total. O modelo de receita da empresa é altamente dependente dos gastos discricionários de empresas multinacionais.

Oportunidades de mercado emergentes

Região	Taxa de crescimento do mercado	Receita potencial
Ásia-Pacífico	4.5%	US $ 187,6 milhões em potencial mercado
América latina	3.2%	US $ 124,3 milhões em potencial mercado
Médio Oriente	3.8%	US $ 98,7 milhões em potencial mercado

Fatores de risco econômico

• Incerteza econômica global
• Gastos corporativos reduzidos
• Possíveis impactos recessionários

A empresa O lucro líquido de 2023 foi de US $ 47,2 milhões, refletindo a sensibilidade de seu modelo de negócios às flutuações econômicas.

Heidrick & Luts International, Inc. (HSII) - Análise de Pestle: Fatores sociais

Crescente demanda por liderança diversificada e recrutamento executivo inclusivo

De acordo com o Relatório de Diversidade 2023 da McKinsey, as empresas com equipes executivas de diversidade de gênero têm 25% mais chances de alcançar a lucratividade acima da média. Heidrick & As estatísticas de posicionamento da diversidade de 2023 de Lutes revelam:

Categoria de diversidade	Porcentagem de colocação
Mulheres em funções executivas	34.6%
Minorias raciais/étnicas	22.3%
Executivos LGBTQ+	5.7%

Mudança de dinâmica do local de trabalho com modelos de trabalho remoto e híbrido

O relatório de tendências da força de trabalho 2023 do Gartner indica que 82% das empresas implementam modelos de trabalho híbrido. Heidrick & Os dados de colocação executivos da Slutles mostram:

Modelo de trabalho	Porcentagem de colocação
Posições totalmente remotas	37%
Posições híbridas	53%
Posições no local	10%

Ênfase crescente na competência cultural na colocação de executivos globais

Colocação executiva internacional por região em 2023:

Região geográfica	Volume de colocação
América do Norte	48%
Europa	27%
Ásia-Pacífico	18%
América latina	7%

Adaptando -se a mudanças geracionais nas expectativas da força de trabalho e nos estilos de liderança

Distribuição de colocação de liderança geracional para 2023:

Geração	Porcentagem de colocação executiva
Baby Boomers	22%
Geração x	45%
Millennials	31%
Geração z	2%

Heidrick & Luts

Aproveitando a IA e o aprendizado de máquina para avaliação e correspondência de talentos

Heidrick & As lutas investiram US $ 12,4 milhões em desenvolvimento de tecnologia de IA em 2023. O talento de AI da empresa corresponde aos processos de plataforma 87.543 perfis de candidatos mensalmente, com uma melhoria de 64% na precisão do alinhamento do solo candidato.

Métrica de tecnologia da IA	2023 desempenho
Investimento de IA	US $ 12,4 milhões
Perfis de candidatos mensais processados	87,543
Precisão correspondente a solo candidato	Melhoria de 64%

Transformação digital de processos de recrutamento e pesquisa executiva

A adoção da plataforma digital aumentou 42% em 2023, com US $ 8,7 milhões alocados para atualizações de infraestrutura digital. O uso da plataforma de recrutamento on -line cresceu para 73% do total de processos de recrutamento.

Métrica de transformação digital	2023 dados
Aumentar a adoção da plataforma digital	42%
Investimento de infraestrutura digital	US $ 8,7 milhões
Porcentagem de processo de recrutamento on -line	73%

Investimento em análise de dados avançada para triagem de candidatos

O investimento em tecnologia de análise de dados atingiu US $ 5,6 milhões em 2023. Os algoritmos de triagem preditiva da empresa analisam 129.876 pontos de dados candidatos mensalmente, reduzindo o tempo de triagem de candidatos em 37%.

Métrica de análise de dados	2023 desempenho
Investimento de análise de dados	US $ 5,6 milhões
Pontos mensais de dados candidatos analisados	129,876
Redução de tempo de triagem candidata	37%

Desafios de segurança cibernética em lidar com dados sensíveis de recrutamento executivo

Os gastos com segurança cibernética aumentaram para US $ 4,3 milhões em 2023. A empresa experimentou 12 tentativas de violações de dados, mitigando com sucesso todos os incidentes. Os protocolos de criptografia agora protegem 98% dos dados sensíveis de recrutamento executivo.

Métrica de segurança cibernética	2023 dados
Investimento de segurança cibernética	US $ 4,3 milhões
Tentativa de violações de dados	12
Cobertura de criptografia de dados sensível	98%

Heidrick & Luts

Conformidade com as leis trabalhistas internacionais e os regulamentos de recrutamento

Heidrick & As lutas opera em 34 países com diversos requisitos de conformidade legal. A Companhia mantém uma estrutura abrangente de conformidade global, abordando regulamentos regionais específicos de trabalho.

Região	Regulamentos de conformidade	Orçamento anual de conformidade
América do Norte	EEOC, regulamentos da OFCCP	US $ 2,3 milhões
União Europeia	GDPR, leis de emprego local	US $ 1,8 milhão
Ásia -Pacífico	Códigos de trabalho locais	US $ 1,5 milhão

Requisitos de privacidade e proteção de dados em diferentes jurisdições

Investimento global de proteção de dados: US $ 4,7 milhões anualmente dedicados a manter a conformidade de privacidade de dados transfronteiriços.

Jurisdição	Principal Regulamento de Proteção de Dados	Medidas de conformidade
Estados Unidos	CCPA, HIPAA	Bancos de dados de candidatos criptografados
União Europeia	GDPR	Plataforma de gerenciamento de consentimento
China	Lei de Proteção de Informações Pessoais	Armazenamento de dados localizado

Considerações éticas em busca de executivos e colocação de talentos

Heidrick & Lutas mantém um Código ético rigoroso com tolerância zero para práticas discriminatórias.

• Treinamento anual de ética: 100% obrigatório para todos os funcionários
• Mecanismos de relatório de violação ética
• Conselho de Revisão de Ética Independente

Navegando estruturas legais complexas para recrutamento executivo transfronteiriço

Equipe de conformidade legal de 42 advogados especializados que gerenciam complexidades internacionais de recrutamento.

Desafio legal	Estratégia de mitigação	Gastos legais anuais
Regulamentos de visto de trabalho	Apoio legal de imigração especializada	US $ 1,2 milhão
Contratos de emprego internacional	Modelos multi-jurisdicionais padronizados	$890,000
Conformidade de compensação transfronteiriça	Serviços de consultoria de compensação global	$750,000

Heidrick & Luts International, Inc. (HSII) - Análise de Pestle: Fatores Ambientais

Foco crescente na sustentabilidade e no recrutamento de liderança de ESG

Em 2023, Heidrick & As lutas relataram que 27% das pesquisas executivas estavam focadas nos papéis de sustentabilidade e liderança de ESG. O mercado global de recrutamento executivo de sustentabilidade foi avaliado em US $ 1,2 bilhão.

Ano	ESG Pesquisas de liderança	Valor de mercado
2023	27%	US $ 1,2 bilhão

Responsabilidade corporativa na seleção de executivos ambientalmente conscientes

O Relatório de Sustentabilidade de 2023 da Companhia indicou que 65% das colocações executivas consideraram as credenciais ambientais como um critério de seleção crítico.

Consideração de critérios ambientais	Percentagem
Colocações executivas com triagem ambiental	65%

Aumentar a demanda de clientes por líderes com experiência em gestão ambiental

Os pedidos de clientes para executivos com habilidades de gerenciamento ambiental aumentaram 42% em 2023, com os setores de tecnologia e energia liderando a demanda.

Setor	Aumento da demanda
Tecnologia	47%
Energia	45%
Aumento geral	42%

Reduzindo a pegada de carbono em operações globais de recrutamento

Heidrick & Lutas comprometidas em reduzir as emissões operacionais de carbono em 35% até 2025, com as atuais práticas de recrutamento virtual economizando cerca de 22.000 toneladas métricas de CO2 anualmente.

Alvo de redução de carbono	Economia de CO2 de recrutamento virtual atual
35% até 2025	22.000 toneladas métricas/ano

Heidrick & Struggles International, Inc. (HSII) - PESTLE Analysis: Social factors

You need to understand that the social landscape is fundamentally reshaping the C-suite, and this shift is a major tailwind for Heidrick & Struggles International, Inc. (HSII), but it also introduces new reputational risks. The demand is not just for leaders; it's for leaders with a specific, modern skillset-namely, expertise in Environmental, Social, and Governance (ESG) and the ability to manage a distributed, tech-centric workforce. The firm's strong 2025 performance, with Q3 net revenue hitting $322.8 million, up 15.9% year-over-year, shows they are capturing this demand.

Growing focus on Environmental, Social, and Governance (ESG) expertise drives demand for specialized board and executive roles.

The market is demanding that companies integrate purpose with performance, making ESG competence a non-negotiable trait for senior leadership in 2025. This isn't just a compliance issue anymore; it's a core business strategy. The rising expectation for companies to align with international sustainability benchmarks means boards are actively seeking executives who can embed sustainability into the business model, not just report on it.

This trend directly benefits Heidrick & Struggles, as it drives new, high-fee searches for specialized roles. The firm's ability to find leaders who can navigate the intersection of profitability and ESG objectives is now a key differentiator. It's a classic supply-demand imbalance: the supply of truly experienced ESG leaders is low, so the search fee potential is high.

Talent shortage in high-demand tech and digital transformation sectors continues to inflate salaries.

The scarcity of great leadership talent in digital and technology remains a top risk to organizational health in 2025. The demand for highly specialized skills in areas like Artificial Intelligence (AI) and cybersecurity is significantly outpacing the available supply. For example, job postings seeking AI skills increased by a staggering 81% in 2024-2025, while cybersecurity postings rose by 33%. This shortage is a massive driver of executive compensation inflation, which translates directly into higher placement fees for executive search firms.

Here's the quick math on the talent crunch:

• Professionals with in-demand AI/cyber skills earn 20-30% more compared to similar roles without those skills.
• The US alone is projected to have a shortage of over 1 million tech professionals.
• Companies are differentiating rewards, with 47% globally offering specific programs for digital talent, often including higher base pay and cash bonuses.

This is a seller's market for top tech executives, and Heidrick & Struggles is positioned to capitalize on the resulting bidding wars and premium search mandates.

Shifting employee expectations require new leadership profiles focused on hybrid work and company culture.

Hybrid work is the new standard in 2025, forcing a fundamental evolution in leadership style. The old-school, presence-based management model is dead. Leaders must now be highly flexible, empathetic, and results-oriented to manage distributed teams effectively. This shift has expanded the required skillset for executive search candidates, with emotional intelligence and digital fluency becoming essential traits.

The stakes for getting this right are high. According to one survey, 78% of high-performing employees would consider leaving a company if the work policies were not flexible enough. This means clients need leaders who can foster culture and cohesion in a hybrid environment, which is a new and complex search mandate that favors sophisticated firms like Heidrick & Struggles that offer leadership consulting alongside executive search.

The new leadership profile must demonstrate:

• A management style built on trust, emphasizing outcomes over physical presence.
• Proficiency in using digital tools for hybrid collaboration.
• A people-centric approach that prioritizes mental health and well-being.

Increased public interest in executive pay disparity creates reputational risk for high-fee placements.

Executive compensation remains a highly contested issue in corporate governance in 2025, and this scrutiny extends to the firms that place and advise these executives. The mandatory disclosure of the CEO-median worker pay ratio, while sometimes criticized for its utility, keeps the issue in the public eye. For a group of low-wage firms, the average CEO-worker pay ratio widened to 632 to 1 in 2024. This extreme disparity fuels public and investor backlash.

For Heidrick & Struggles, the risk is indirect but real: every high-profile, high-fee placement with a large pay disparity increases the client's risk of a failed "say on pay" vote. When shareholder support for compensation falls below 80%, the risk of directors losing their seats in a proxy contest can double. Since the firm advises on compensation and places the executives, a placement that quickly leads to a governance crisis can damage their reputation as a trusted advisor. This forces the firm to be defintely more strategic about both the placement and the compensation structure.

Social Factor Trend	Impact on HSII's Business (2025)	Key Metric/Data Point
Growing ESG Expertise Demand	Drives new, high-value search mandates for specialized board and C-suite roles.	ESG is a central corporate strategy; demand for leaders who can integrate sustainability.
Talent Shortage in Digital/Tech	Inflates executive salaries and, consequently, executive search fees, boosting revenue.	AI job postings up 81% (2024-2025); AI/Cyber professionals earn 20-30% more.
Shifting Employee Expectations (Hybrid Work)	Requires new, complex leadership profiles (empathy, digital fluency), increasing demand for leadership consulting services.	78% of high performers would consider leaving due to inflexible work policies.
Executive Pay Disparity Scrutiny	Creates reputational risk for high-fee placements that result in governance backlash.	Shareholder support below 80% on pay can double director seat loss risk.

Heidrick & Struggles International, Inc. (HSII) - PESTLE Analysis: Technological factors

You need to see the technology landscape not just as a cost center, but as the core engine for productivity and a critical differentiator in the executive search game. The traditional reliance on a Rolodex is dead; the new reality is that Artificial Intelligence (AI) and data analytics are now the foundation of competitive advantage, but they introduce significant cybersecurity risks that demand continuous investment.

Here's the quick math: if your competitors are using AI to predict a CEO's departure before the board even suspects it, your firm must be doing the same for your clients. This isn't a future trend; it's the 2025 operating mandate.

Artificial Intelligence (AI) and machine learning tools streamline candidate sourcing and matching processes, increasing analyst efficiency

Heidrick & Struggles International, Inc. (HSII) is actively investing in technology and analytical tools to boost the productivity of its professionals and enhance client impact. This is a necessity because Artificial Intelligence (AI) is fundamentally reshaping the executive search industry in 2025, moving beyond simple keyword matching to 'smarter candidate sourcing.' AI algorithms can analyze thousands of profiles in seconds, identifying candidates whose qualifications, and even soft skills, align precisely with a role's requirements by studying language patterns and digital footprints.

The firm is leveraging these digital tools to increase operational productivity, enabling broader market coverage and servicing untapped white space opportunities. This shift allows analysts to focus on high-value activities-like assessing cultural fit and building relationships-instead of manual screening. Honestly, any recruiting firm not fully embracing AI for initial candidate identification is leaving money and speed on the table.

Cybersecurity risks in handling sensitive client and candidate data necessitate continuous investment in IT infrastructure

The nature of HSII's business requires handling highly sensitive, non-public information-everything from C-suite compensation to confidential succession plans and proprietary client data. Protecting this data is a strategic imperative, especially as global cybersecurity spending is projected to surge to approximately $212 billion in 2025.

The threat landscape is escalating, with the average global cost of a data breach reaching $4.88 million in 2024, a 10% increase from the prior year. This means the cost of a security lapse is rising faster than general inflation. For HSII, continuous investment in IT infrastructure is non-negotiable to maintain client trust and regulatory compliance. The firm needs to ensure its internal security posture is as strong as the cybersecurity leadership talent it places for clients.

• Global cybersecurity spending is projected to hit $212 billion in 2025.
• Average data breach cost in 2024 was $4.88 million.
• Investment must focus on protecting proprietary platforms like Heidrick Connect and Culture Connect.

Digital transformation consulting services, a key growth area, are highly dependent on HSII's internal tech capabilities

The Heidrick Consulting segment, which includes leadership assessment and culture shaping services, is a crucial growth engine for the firm and is highly dependent on its proprietary technology platforms. These services are increasingly delivered as 'digital solutions' for Leadership Assessments and Team Acceleration. The growth in this area is clear in the 2025 financial results:

The firm is doubling down on digital transformation, integrating advanced technologies to enhance client solutions like digital assessments. What this estimate hides is that the consulting business's ability to scale depends entirely on the stability and sophistication of its proprietary Web-based systems, such as Culture Connect, which is integral to the culture-shaping process.

Segment	Q1 2025 Net Revenue	Q2 2025 Net Revenue	Q3 2025 Net Revenue	Q2 2025 YoY Growth
Heidrick Consulting	$27.6 million	$31.2 million	$32.8 million	16.6%

Competitors use advanced data analytics to predict executive turnover, pressuring HSII to innovate its own platform

The competitive pressure from other firms leveraging data analytics is intense. Predictive analytics is no longer a niche tool; its adoption in HR is projected to exceed 80% of companies by 2025. Competitors are using machine learning to forecast future workforce trends, including executive turnover, by analyzing factors like engagement scores, performance metrics, and tenure. This capability allows them to proactively approach companies with retention strategies or pre-vetted replacement candidates.

This pressure forces HSII to continuously innovate its own platform to offer predictive insights that go beyond simple search. Organizations that leverage data analytics for workforce management see a 5% increase in employee retention rates, which is a powerful selling point for a consulting firm. The firm must defintely ensure its own data models can anticipate client needs-like a key executive departure-before the client even realizes the risk. This requires a shift from reactive search to proactive, data-driven advisory.

Heidrick & Struggles International, Inc. (HSII) - PESTLE Analysis: Legal factors

Stricter data privacy regulations, like the EU's GDPR, complicate the cross-border transfer of candidate information.

You're an executive search firm, so your core business is moving highly sensitive personal data-CVs, compensation history, performance reviews-across borders daily. This creates a significant compliance burden, especially with the European Union's General Data Protection Regulation (GDPR) setting the global benchmark. GDPR's extraterritorial reach means Heidrick & Struggles International, Inc. (HSII) must comply for any EU citizen's data, regardless of where the search is conducted.

The biggest headache is the cross-border transfer of data, which requires appropriate safeguards like Standard Contractual Clauses (SCCs) approved by the European Commission. If the firm fails to comply, the financial penalties are severe: up to €20 million or 4% of annual global turnover, whichever is higher. Plus, US state-level privacy laws, like those in California, are increasingly mirroring GDPR's strict requirements, meaning domestic compliance is also getting more complex. You defintely need a robust data map.

Non-compete clause enforcement varies by state (e.g., California vs. others), affecting talent mobility and search scope.

The legal landscape for non-compete agreements in the US is a patchwork, and it directly impacts how HSII can recruit and retain its own top consultants, and how it can poach executive talent. The Federal Trade Commission's (FTC) attempt at a nationwide ban was vacated in 2024, and the appeal was officially withdrawn in September 2025, leaving state law in control for now.

This creates a complex operating environment. States like California, North Dakota, Oklahoma, and Minnesota have total bans on non-compete agreements, which makes talent mobility high and restrictive covenants unenforceable. Conversely, other states allow them but impose salary thresholds. For example, in Colorado, a non-compete is generally only enforceable against an employee earning in excess of $123,750. This state-by-state variance means HSII must tailor every employment and non-solicitation contract to the specific jurisdiction, which is a huge administrative and legal task.

Jurisdiction	Non-Compete Status (2025)	Key Impact on HSII
California, Minnesota, North Dakota, Oklahoma	Effectively banned/void	High talent mobility; easier to recruit from competitors but harder to retain own staff.
Colorado	Restricted by salary threshold	Only enforceable for high-earning executives (over $123,750); limits use for junior roles.
Federal (FTC Rule)	Nationwide ban vacated (September 2025)	State laws remain the primary enforcement standard; no immediate blanket federal restriction.

Increased litigation risk related to discrimination and bias in the executive selection process.

Litigation risk is a constant for any firm involved in high-stakes hiring, but the nature of that risk is evolving in 2025. While a new Executive Order in April 2025 eliminated the use of 'disparate impact' liability in federal employment policy, making it harder to challenge systemic bias without proving intentional discrimination, the focus on intentional bias and new forms of bias remains high.

A major emerging risk is the use of Artificial Intelligence (AI) in the selection process. As HSII and its clients use AI for candidate sourcing, screening, and ranking, any inherent bias in the algorithm can lead to a discrimination lawsuit. Jurisdictions like New York City and the European Union are implementing laws that require proactive AI bias auditing, transparency, and governance. The firm's selection methodology-the core of its value proposition-is now a legal risk area, and you must prove your AI is fair.

Changes in employment law regarding 'gig economy' workers could impact their consulting model.

HSII operates a significant 'On-Demand Talent' segment, which generated 2025 Q3 net revenue of $50.9 million, an increase of 10.1% year over year. This segment relies on a consulting model that often uses independent contractors (gig workers). The legal challenge here is worker misclassification-the risk that a court or regulator will determine these contractors should legally be classified as employees.

Misclassification is costly because it triggers mandatory employer obligations, including:

• Paying for Social Security and Medicare taxes.
• Providing unemployment and workers' compensation insurance.
• Offering employee benefits like health insurance and retirement plans.

The global gig economy is projected to reach $455 billion by 2025, and nearly 50% of the U.S. workforce is projected to be contingency workers in the next five years, making the classification issue a top priority. Legal precedents, such as California's efforts to reclassify gig workers, create a direct threat to the financial model of the On-Demand Talent business if the firm is forced to absorb the higher costs of full employment for a substantial portion of its contractor pool. The firm must be defintely vigilant on its contractor agreements.

Heidrick & Struggles International, Inc. (HSII) - PESTLE Analysis: Environmental factors

Client demand for Chief Sustainability Officers (CSOs) and ESG-focused executives is accelerating

You're seeing the Chief Sustainability Officer (CSO) role shift from a compliance checkbox to a core strategic driver, and that's a massive opportunity for Heidrick & Struggles International, Inc. (HSII). Our own research from February 2025 showed that a staggering 86% of the top 250 companies in Europe now have a dedicated CSO. This isn't just a European trend, but a global one, reflecting how companies are reframing sustainability from a cost center to a competitive advantage.

The demand isn't just for the C-suite, either. It's for a whole bench of leaders who can blend business acumen with deep sustainability expertise-what we call the 'green skills' gap. HSII is directly capitalizing on this through its dedicated Sustainability & Climate Practice, placing executives and board members who can genuinely integrate environmental, social, and governance (ESG) factors into their business model. Honestly, if you don't have a sustainability expert in the room, you're defintely missing a key risk signal.

HSII must manage its own carbon footprint, especially related to extensive global executive travel

As a global leadership advisory firm, a significant portion of HSII's operational risk lies in its Scope 3 emissions, primarily from business travel. We fly around the world to meet clients; it's the nature of the work. But that means we have to walk the talk on our own environmental impact. To manage this, HSII has set Science Based Targets initiative (SBTi) validated goals, aligning our reduction efforts with the 1.5°C pathway.

The firm aims to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 46.2% by 2030, from a 2019 base year. Plus, the most critical part: we are targeting a 55% reduction in Scope 3 GHG emissions from business travel and employee commuting per full-time employee (FTE) by 2030. Here's the quick math on our travel intensity:

Metric	2019 Baseline	2024 Value	Change (2019 to 2024)
Business Travel Intensity (MTCO₂e per FTE)	5.09	4.52	Down 11%
Total Scope 3 Emissions (MTCO₂e)	22,311	25,044	Up 12.2% (due to increased activity)

While total Scope 3 emissions increased in 2024 due to a post-pandemic surge in business activity, the intensity per employee actually decreased by 11% over the five-year period. Still, managing that total number as the business grows remains a constant challenge.

Investor pressure for transparent sustainability reporting influences corporate governance consulting

Investor pressure for transparent sustainability reporting is no longer a fringe issue; it's a core corporate governance matter. Institutional investors like BlackRock are demanding clarity on climate-related risks and opportunities, which directly impacts the composition and focus of a client's Board of Directors.

This pressure creates a dual opportunity for HSII. First, we must maintain our own high standard of disclosure, which we do by aligning our 2024 Impact Report with frameworks like the Task Force on Climate-related Financial Disclosures (TCFD). Second, we use our expertise to advise clients' boards on how to respond to these demands, linking environmental performance to long-term value creation.

• Advise boards on climate-competent director recruitment.
• Help clients structure governance to oversee ESG strategy.
• Provide consulting on aligning executive compensation with sustainability targets.

Climate change-related business risks create new consulting opportunities for C-suite advisory

Climate change isn't just an environmental risk; it's a financial one-think supply chain disruption, physical asset damage, and regulatory shifts. This complexity is driving significant growth in the firm's advisory services, as C-suites need help translating these macro risks into actionable business strategy.

The demand for this high-level, strategic environmental advisory is a key factor in the strong performance of the Heidrick Consulting segment in 2025. This segment, which houses much of the firm's advisory work on organizational structure and culture shaping around issues like sustainability, saw net revenue jump by 16.6% to $31.2 million in the 2025 second quarter and another increase of 17.6% to $32.8 million in the 2025 third quarter, compared to the same periods in 2024. This growth is a clear indicator that companies are paying for advice on climate risk. In fact, our client work in sustainability topics surpassed 300 engagements helping advance the sustainable economy in 2023, showing the scale of this advisory opportunity.