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McKinsey & Company 

McKinsey & Company 

Background

McKinsey & Company is a global management consulting firm headquartered in New York City.1“McKinsey & Company,” Forbes, archived October 20, 2022.

The company was formed in 1926 by University of Chicago professor James O. McKinsey. In 1959, it opened its first international office in London.2“History of our firm,” McKinsey & Company. Archived October 31, 2022. Today McKinsey & Company has offices in more than 130 cities across 65 countries,3“Our Offices,” McKinsey & Company. Archived November 1, 2022. Archive URL: https://archive.ph/eObYE and has around 40,000 employees

According to McKinsey’s history web page, in 1989 the company took on “a major project directed at assessing the scope of and opportunity for resolving the greenhouse effect by assessing the financial consequences of taking action to combat global warming, and identifying possible international funding mechanisms.”4“History of our firm,” McKinsey & Company. Archived October 31, 2022.

An archive of the company’s website from 1997 states: “Everywhere our mission is the same – to help our clients make substantial and lasting improvements in their performance and to build a firm that is able to attract, develop, excite, motivate and retain exceptional people.”5“History of McKinsey & Company,” McKinsey & Company. Archived April 12, 1997. Archive URL: https://archive.ph/kWNvX

In 1990, McKinsey & Company established a think tank, called the McKinsey Global Institute (MGI), “to develop a deeper understanding of the evolving global economy.” MGI’s website states that the organization’s “mission is to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions.”6“About MGI,” McKinsey Global Institute. Archived October 31, 2022. Archive URL: https://archive.ph/jraab

McKinsey & Company and Tobacco

There are over 2,200 mentions of McKinsey & Company in the Truth Tobacco Industry Documents archive held by the University of California, San Francisco Library (UCSF Library).

2010s

McKinsey ended 66 years of consulting engagements with cigarette companies in 2021.7“How McKinsey Got Into the Business of Addiction,” The New York Times, September 29, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/UUsXz

According to a September 2022 article by investigative reporters Walt Bogdanich and Michael Forsythe of The New York Times, “as recently as 2016, more than 50 years after the surgeon general confirmed the link between smoking and cancer, McKinsey still saw merit — and profits — in continuing to help companies sell more cigarettes.”8“How McKinsey Got Into the Business of Addiction,” The New York Times, September 29, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/UUsXz

As late as 2019, McKinsey’s tobacco clients included Altria, Imperial Brands, British American Tobacco and Japan Tobacco International, The Times reported. Those four clients brought in at least $45 million in fees, with $30 million coming from Altria alone.9“How McKinsey Got Into the Business of Addiction,” The New York Times, September 29, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/UUsXz

In 2017, McKinsey worked with the e-cigarette manufacturer Juul, a company which later agreed to pay $438.5 million to settle government investigations into its marketing practices. McKinsey claimed its work with Juul concerned prevention of youth vaping.10Christina Jewett. “Juul Settles Multistate Youth Vaping Inquiry for $438.5 Million,” The New York Times, September 6, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/qdVjB

At the same time that it had tobacco industry clients, McKinsey also maintained contracts with the U.S. Food and Drug Administration, the agency that regulates tobacco industry products. The company claimed that these government contracts did not pose a conflict of interest because it never advised the agency on a specific drug, according to The New York Times.11Christina Jewett. “Juul Settles Multistate Youth Vaping Inquiry for $438.5 Million,” The New York Times, September 6, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/qdVjB

2017 A McKinsey partner was present at an October 2017 stakeholder event in London for the Foundation for a Smoke-Free World, a foundation supported by Philip Morris International (PMI).12(Press Release). “WHO Statement on Philip Morris funded Foundation for a Smoke-Free World,” World Health Organization, September 28, 2017. Archived November 4, 2022. Archive URL: https://archive.ph/YBmPF

2017 McKinsey partner Farhad Riahi was also present at the Foundation’s inaugural meeting of it board of directors, according to the meeting minutes. McKinsey & Company was also listed under “contractual obligations of the foundation” as having completed a “consulting project.” Riahi was also present at the stakeholder event, and commented on it during the board meeting.13“Minutes of the Inaugural Meeting of the Board of Directors” (PDF), Foundation for a Smoke-Free World, Inc., November 3, 2017. Archived .pdf on file at DeSmog.

Tobacco Tactics suggested “The Foundation employed management consultants McKinsey in organising an October 2017 stakeholder event in London,” however DeSmog was unable to confirm this detail.14“Foundation for a Smoke-Free World,” Tobacco Tactics. Archived January 15, 2019. Archive URL: https://archive.ph/cwkez

Farhad Riahi left McKinsey to work as the Chief Health, Science, and Technology Officer at the Foundation for a Smoke-Free World.15“Foundation leadership,” Foundation for a Smoke Free World. Archived May 14, 2018. Archive URL: https://archive.ph/stlSH

In 2016 McKinsey helped Altria develop ideas for marketing e-cigarettes, Bogdanich and Forsyth reported. “We are one team, working side-by-side,” McKinsey reportedly wrote in a slide deck prepared for Altria.16“How McKinsey Got Into the Business of Addiction,” The New York Times, September 29, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/UUsXz

1990s

McKinsey was working with British American Tobacco, according to documents in the Truth Tobacco Industry Documents archive.17“[Letter from N Davis to KL Chugh regarding interim report from McKinsey],” November 15, 1994. Retrieved from Truth Tobacco Industry Documents Archive held by the University of California, San Francisco Library. Bates No. 500030225-500030226.

1980s

Documents in the Truth Tobacco Industry Documents archive show that McKinsey was involved in strategic planning for Philip Morris in the 1980s. For example:

1960s

In the 1960s, McKinsey’s clients included R.J. Reynolds, Lorillard, Brown & Williamson, British American Tobacco, and Japan Tobacco International as well as Philip Morris.18“How McKinsey Got Into the Business of Addiction,” The New York Times, September 29, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/UUsXz

1950s

McKinsey’s consulting history with the tobacco industry began in 1956, when Philip Morris hired the consulting company to examine its manufacturing operation. McKinsey then advised Philip Morris on how to set up its research department.19“How McKinsey Got Into the Business of Addiction,” The New York Times, September 29, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/UUsXz 20“FIVE YEAR RESEARCH PROGRAM – MCKINSEY REPORT,” March 21, 1957. Retrieved from the Truth Tobacco Industry Documents archive at the University of California, San Francisco Library. Bates 1000304953-1000304956.

This study also “cited the development of ‘reconstituted tobacco,’ a manufacturing process that in subsequent years was shown to help achieve nicotine levels that researchers considered sufficient to ensure addiction.”21“How McKinsey Got Into the Business of Addiction,” The New York Times, September 29, 2022. Archived November 3, 2022. Archive URL: https://archive.ph/UUsXz

McKinsey & Company and Opioids

In 2021, McKinsey & Company agreed to pay $573 million to settle investigations into its role advising drug companies such as Purdue Pharma, on how to “turbocharge” opioid sales, The New York Times reported.22Michael Forsyth and Walt Bogdanich. “McKinsey Settles for Nearly $600 Million Over Role in Opioid Crisis,” The New York Times, Feb 3, 2021. Archived November 4, 2022. Archive URL: https://archive.ph/QA3yr

The lawsuits against McKinsey revealed more than 100,000 documents surrounding its work with drug companies. These documents are available at the Opioid Industry Documents archive held by the UCSF Library.23“McKinsey & Company Documents,” Opioid Industry Documents archive held by the University of California, San Francisco Library.

Maura Healey, attorney general of Massachusetts, told The New York Times that the investigation involved reviewing “thousands and thousands of documents and emails” that told “the story of McKinsey’s wrongdoing.”24Michael Forsyth and Walt Bogdanich. “McKinsey Settles for Nearly $600 Million Over Role in Opioid Crisis,” The New York Times, Feb 3, 2021. Archived November 4, 2022. Archive URL: https://archive.ph/QA3yr

“It’s always been about holding accountable those who created and profited off the opioid epidemic,” Healey said.

McKinsey’s public stance on the lawsuits was that “its past work was lawful,” and that it “denied allegations to the contrary.” However, upon the settlement of the lawsuits, global managing partner Kevin Sneader said: “We deeply regret that we did not adequately acknowledge the tragic consequences of the epidemic unfolding in our communities. With this agreement, we hope to be part of the solution to the opioid crisis in the U.S.”25Michael Forsyth and Walt Bogdanich. “McKinsey Settles for Nearly $600 Million Over Role in Opioid Crisis,” The New York Times, Feb 3, 2021. Archived November 4, 2022. Archive URL: https://archive.ph/QA3yr

Stance on Climate Change

Public Stance on Climate Change

Publicly, McKinsey has taken the threat of global climate change seriously.

According to its history page, in 1989 McKinsey took on “a major project directed at assessing the scope of and opportunity for resolving the greenhouse effect by assessing the financial consequences of taking action to combat global warming, and identifying possible international funding mechanisms.”26“History of our firm,” McKinsey & Company. Archived October 31, 2022.

The company also claims credit for forming a “special initiative on climate change” in 2007 to “[inform] the climate-change debate by publishing the first global greenhouse-gas cost curve to rigorously compare the costs and abatement potential of hundreds of possible actions to reduce greenhouse-gas emissions.”27“History of our firm,” McKinsey & Company. Archived October 31, 2022.

In 2021, the company launched “McKinsey Sustainability, a client-service platform with the goal of helping all industry sectors transform to get to net zero emissions by 2050, and to cut carbon emissions by half by 2030.”

2020

Dickon Pinner, leader of McKinsey’s Sustainability Practice, co-wrote an article with several other McKinsey partners and associates that appeared in the McKinsey Quarterly, titled “Climate math: What a 1.5-degree pathway would take.”28Kimberly Henderson, Dickon Pinner, Matt Rogers, Bram Smeets, Christer Tryggestad, and Daniela Vargas. “Climate math: What a 1.5-degree pathway would take,” McKinsey Quarterly, April 30, 2020. Archived October 31, 2022. Archive URL: https://archive.ph/gZXpV

“Adapting to climate change is critical because, as a recent McKinsey Global Institute report shows, with further warming unavoidable over the next decade, the risk of physical hazards and nonlinear, socioeconomic jolts is rising. Mitigating climate change through decarbonization represents the other half of the challenge. Scientists estimate that limiting warming to 1.5 degrees Celsius would reduce the odds of initiating the most dangerous and irreversible effects of climate change,” they wrote.

“The good news is that a 1.5-degree pathway is technically achievable. The bad news is that the math is daunting. Such a pathway would require dramatic emissions reductions over the next ten years—starting now.”

2019

Dickon Pinner said in a session at the Aspen Institute’s Aspen Ideas Festival:29“Dispatch: climate breaking points at the Aspen Ideas Festival,” McKinsey Sustainability, July 30, 2019. Archived October 29, 2022.

“Climate change is not a 2050 issue, it’s not a 2030 issue, it’s happening today. In fact it’s been measurably happening over the last 40 years,” Dickon Pinner, leader of McKinsey’s Sustainability Practice, said in a session at the 2019 Aspen Ideas Festival held by the Aspen Institute.30“A festival of ideas, shaped by McKinsey insight,” McKinsey & Company, July 31, 2019. Archived October 29, 2022.

In response to charts in Pinner’s slide deck, Gillian Tett of the Financial Times posed a question to Pinner:31“Dispatch: climate breaking points at the Aspen Ideas Festival,” McKinsey Sustainability, July 30, 2019. Archived October 29, 2022.

“Have you tried to take this to Washington? Have you tried to take it to the White House?”32“Dispatch: climate breaking points at the Aspen Ideas Festival,” McKinsey Sustainability, July 30, 2019. Archived October 29, 2022.

Pinner responded:

“No. I think from our point of view, you know, we don’t really have a role to play on the policy side. I think where we think we can add value is by converting the science into numbers that expose the risk and put them in a form that decision makers can make decisions. Because we think the big issue here is around capital formation and allocation.” 33“Dispatch: climate breaking points at the Aspen Ideas Festival,” McKinsey Sustainability, July 30, 2019. Archived October 29, 2022.

Pinner also suggested that carbon capture and storage (CCS) and other technologies would assist in combatting climate change:34“Dispatch: climate breaking points at the Aspen Ideas Festival,” McKinsey Sustainability, July 30, 2019. Archived October 29, 2022.

“I think there’s a technology piece of the question here. I think maybe five, ten years ago, carbon capture and storage was seen as completely off the table. We’re seeing with a lot of technological interest around that, particularly in the United States. So, I mean, I think if you look at any of these IPCC forward curves, they involve a lot of capture and storage at the gigaton scale. The geology in the US actually allows you to do it. I think the geological capacity in the US is about 500 gigatons.”

New York Times reporters Michael Forsythe and Walt Bogdanich noted in their 2022 book, When McKinsey Comes to Town, that the Aspen Ideas Festival is partly underwritten by ExxonMobil. 35Walt Bogdanich and Michael Forsythe (2022). When McKinsey Comes to Town: The Hidden Influence of the World’s Most Powerful Consulting Firm. Doubleday.

Actions on Climate

Forsythe and Bogdanich, writing in The New York Times, noted that McKinsey & Company has advised some of world’s largest carbon emitters:

“Among the 100 biggest corporate polluters over the past half-century, McKinsey has advised at least 43 in recent years, including BP, Exxon Mobil, Gazprom and Saudi Aramco, generating hundreds of millions of dollars in fees for the firm,” Michael Forsythe and Walt Bogdanich reported for The New York Times.36Michael Forsythe and Walt Bogdanich. “At McKinsey, Widespread Furor Over Work With Planet’s Biggest Polluters,” The New York Times, October 27, 2021. Archive URL: https://archive.ph/oPclu

Other clients named in the book include Qatar Petroleum, Chevron, and the Canada-based coal company Teck Resources, which produced metallurgical coal for steelmaking, operations that emitted “seventy-three megatons of carbon dioxide in 2019, the equivalent of about one-tenth of Canada’s total carbon dioxide emissions that year.”37Walt Bogdanich and Michael Forsythe (2022). When McKinsey Comes to Town: The Hidden Influence of the World’s Most Powerful Consulting Firm. Doubleday.

Forsythe and Bogdanich sourced the identities of McKinsey’s fossil fuel clients from “internal records, open-source material available on the internet (particularly in China), and interviews with current and former McKinsey consultants,” as well as a “list of companies from McKinsey internal records” that the reporters did not share in full.38Walt Bogdanich and Michael Forsythe (2022). When McKinsey Comes to Town: The Hidden Influence of the World’s Most Powerful Consulting Firm. Doubleday.

Funding

McKinsey & Company is a private company, and does not publicly report its revenues or net income. McKinsey is reportedly “the world’s largest and most profitable management firm” and “may have been a major driver in the gap between CEO and employee wages exploding by a factor of 10 since the middle of the [20th] century.”39Max Nisen. “How One Employee And One Consulting Firm May Be Singlehandedly Responsible for The Staggering Gap Between CEO And Worker Pay, Business Insider, August 14, 2013. Archive URL: http://archive.today/nfuOu.

According to The New York Times, McKinsey has advised at least 43 of 100 of the world’s largest corporate polluters, “including BP, Exxon Mobil, Gazprom and Saudi Aramco, generating hundreds of millions of dollars in fees for the firm.”40Michael Forsythe and Walt Bogdanich. “At McKinsey, Widespread Furor Over Work With Planet’s Biggest Polluters,” The New York Times, October 27, 2021. Archive URL: https://archive.ph/oPclu

Key Documents

Key People

On LinkedIn, McKinsey & Company states that it has more than 40,000 employees, and lists partners on websites for many of its offices in more than 65 countries.41“Our Offices,” McKinsey & Company. Archived November 1, 2022. Archive URL: https://archive.ph/eObYE

Partners

DeSmog reviewed McKinsey office web pages that listed partners. Some offices do not list partners, or do not have their own web pages, so the list below is not complete.

Click on country or city below to view individual partners as of 2022.

Search by partner name, country, city, or position below:

McKinsey Global Institute

Click on the category below to view names, or on a name to view all years the named person was was in that position. You can also filter by year in the upper left:

You can also search by MGI staff member below:

Actions

2019

McKinsey & Company reportedly distributed a video in Asia that boasted of increasing production at a coal company by 26 percent, according to a 2019 memo by departing McKinsey consultant Erik Edstrom that was reviewed by The New York Times.42Michael Forsythe and Walt Bogdanich. “At McKinsey, Widespread Furor Over Work With Planet’s Biggest Polluters,” The New York Times, October 27, 2021. Archive URL: https://archive.ph/oPclu

“It appears that McKinsey helped our client extract more, pollute more, for presumably a long time to come,” Edstrom wrote.

New York Times investigative reporters Michael Forsyth and Walt Bogdanich added:43Michael Forsythe and Walt Bogdanich. “At McKinsey, Widespread Furor Over Work With Planet’s Biggest Polluters,” The New York Times, October 27, 2021. Archive URL: https://archive.ph/oPclu

“Until now, McKinsey has largely escaped scrutiny of its business with oil, gas and coal companies because it closely guards the identity of its clients. But internal documents reviewed by The New York Times, interviews with four former McKinsey employees and publicly available records such as lawsuits shed new light on the extraordinary scope of that work.

“Among the 100 biggest corporate polluters over the past half-century, McKinsey has advised at least 43 in recent years, including BP, Exxon Mobil, Gazprom and Saudi Aramco, generating hundreds of millions of dollars in fees for the firm.”

Contact & Address

As of 2022, McKinsey & Company listed more than 160 offices on its website. View or search by region, country, or city below.

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