Inspiring Change One Byone 2011 Accountability Report Table of Contents

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Inspiring Change One Byone 2011 Accountability Report Table of Contents INSPIRING CHANGE ONE BYONE 2011 ACCOUNTABILITY REPORT TABLE OF CONTENTS 3 INTRODUCTION 22 ONE CULTURE • Celebrating success one by one 4 OUR ACHIEVEMENTS • Who we are • Why we’re here 7 ONE RESPONSIBILITY • LoyaltyOne by the numbers • Never stop learning • A responsibility to inspire • Women in Leadership • Our accountabilities • Road maps to success • Engaging our stakeholders • Learning… at the next level • The value of flexibility 11 ONE ENVIRONMENT • A work environment that makes a difference • Working together for a healthier planet • Rewarding recognition Reducing our harmful impact • Keeping associates in the know • Our organizational carbon footprint • Survey says… engaged, very engaged • How we have helped reduce our carbon footprint • Our paper policy 30 ONE COMMUNITY • Purchasing Green Energy • Enriching relationships, building communities • Our Work at Home Program • Our new Volunteer Time-Off Program • Waste reduction • Canadian Red Cross Japan Tsunami and • Sustainable purchasing Earthquake Relief Adopting environmentally sanctioned facilities • Holiday Charity Drive • LEEDing the way • Walk for Kids Help Phone • Challenges • Alexandra Park Community Centre Enabling associates to live more sustainable lives • CommunityOne Day • We’re passionate about green • Motionball • The Green fleet • Moving forward • Eco-friendly entertainment Driving and inspiring change 34 AWARDS • Moving forward 36 ABOUT US • We help people make decisions that count • Our lines of business • Our international partnerships 38 GRI Content IndeX • Our GRI application level 42 FAST FACTS • LoyaltyOne AIR MILES • AIR MILES inTroDUCTion It’s great to be green Welcome to our 2011 Accountability Report. Here you’ll discover the many ways that we, as a business and as individuals, are living and breathing sustainability. Keep reading to see how we’re inspiring change one by one – at work, at home, and in our communities. This report includes all of LoyaltyOne’s office locations and five lines of business. The report does not include our international partnerships with the Brazilian loyalty program, Dotz, or the Indian marketing agency, Direxions. We considered all of LoyaltyOne’s sustainability impacts and selected those most relevant to our service- oriented firm and our stakeholders. In 2011, we continued to integrate sustainability into the core of our business priorities, make measureable improvements in our environmental performance and become recognized leaders in sustainability. As part of the reporting process, we welcome feedback. Please direct any inquiries to: Debbie Baxter Chief Sustainability Officer Hear from our CEO at LoyaltyOne Inc. [email protected] loyalty.com/accountabilityreport INSPIRING CHANGE ONE BY ONE 2011 ACCOUNTABILITY REPORT 3 OUR achieVEMENTS Highlights of our performance in 2011 Another year… many more reasons to celebrate! Here are a few highlights from 2011 to show you how we’re helping the environment, building communities, and inspiring change in everything we do. Note: 2010 numbers may have been adjusted due to a more thorough review of our carbon footprint profile and updated emission factors. INSPIRING CHANGE ONE BY ONE 2011 ACCOUNTABILITY REPORT 4 OUR achieVEMenTS Our commitments Business growth • Further integrated sustainability into core Evolved our AIR MILES for Social Change business priorities program to inspire Canadians to make • Increased the impact of charitable giving more sustainable choices AND better by creating an associate Cause Committee health choices to help us select a strategic cause • Culture committee defined a vision to guide Launched wellQ, which encourages our strategic framework to create a healthy, Canadians to take their medications vibrant environment, fostering collaboration properly and build a relationship with their and celebrating success pharmacy team through a combination of incentives and education Awards • Named one of the 50 Best Employers in Canada by Hewitt Associates for the second year in a row • Recognized as one of Canada’s Greenest Employers and one of Canada’s Greenest 30 Companies INSPIRING CHANGE ONE BY ONE 2011 ACCOUNTABILITY REPORT 5 OUR achieVEMenTS Work environment • Introduced Career Pathways, a comprehensive guide to career building to help associates grow their careers • Launched “Learn”, a new learning tool with access to over 6,000 online courses to give associates more opportunities to develop their skills • 94% of associates believe that LoyaltyOne makes the communities where it operates a better place to live and work Community • Raised more than $1,500,000 for charities like Motionball, Kids Help Phone, the Canadian Red Cross, the CP24 CHUM Christmas Wish and more • Associates contributed 2,691 hours on CommunityOne Day • Put the focus on community building to maximize our charitable giving Environment • Reduced CO2 emissions by a total of 45% from 2010 to 2011 • Our Toronto Head Office achieved a 91% waste diversion rate • Expanded our sustainable fleet program for associate travel INSPIRING CHANGE ONE BY ONE 2011 ACCOUNTABILITY REPORT 6 one responsibiLITY A responsibility to inspire At LoyaltyOne, we recognize that every business has a critical role, and a responsibility, in creating a healthier environment and community. In 2011, we focused not only on how to act on these responsibilities, but how to integrate them into everything we do. We’ll do this by motivating our associates, continuing to reduce our impact on the environment and helping to build the communities in which we live and work. INSPIRING CHANGE ONE BY ONE 2011 ACCOUNTABILITY REPORT 7 ONE RESPONSIBILITY We also established a LOYALTYONE’S CORPORATE RESPONSIBILITY COMMITMENT Corporate Responsibility We are committed to making a difference. We will help others improve their potential, engage in and enhance our environment and create a meaningful impact by bringing Team and added specific people together in partnerships that deepen connections and change lives. performance measures and job descriptions. ONE Community ONE Environment ONE Culture This will help us ensure We will help improve We will reduce our own We will strive to create the social quality of life by footprint, and influence, an engaged workforce by sustainability is truly supporting programs that promote and demonstrate encouraging the efforts of integrated into the way spearhead community building changes in behaviour that our associates and supporting in the areas where we work inspire others to do the same. their health and wellness. we do business. and live. President & CEO Bryan Pearson Executive Leadership Team Our accountabilities We’ve put a strong governance structure in place to manage Chief Sustainability Officer our community-related, environmental, and cultural responsibilities. Community Environment Culture Associates It begins at the most senior level within the To support the Chief Sustainability Officer, we have company – our President and CEO, Bryan Pearson, assigned responsibility for overseeing each pillar of directs all of the company’s strategic activities and our activity to staff in our Corporate Responsibility serves as the Chair for LoyaltyOne’s Executive Team. Team. Ultimately, however, it is our associates who drive many of the environmental and social Next, our Chief Sustainability Officer, Debbie responsibility initiatives within LoyaltyOne. Baxter, reports directly to the Executive Leadership Team and is accountable for ensuring that our In addition, our Senior Vice President of Human commitments to corporate responsibility Resources, Sofia Theodorou, as part of the Executive are realized. Leadership Team, is accountable for ensuring that our commitments to create an engaged workforce and make LoyaltyOne a place where all associates can do their best work are met. INSPIRING CHANGE ONE BY ONE 2011 ACCOUNTABILITY REPORT 8 ONE RESPONSIBILITY Engaging our stakeholders We believe that building a foundation of mutual We define our stakeholders as individuals or understanding and collaboration with stakeholders organizations that can affect – or are affected by – is integral to our sustainability journey. We are our company. Based on this definition, our key committed to proactive management, open stakeholders are our associates, Collectors, communication and transparent reporting, which business partners, local communities and hold us accountable to continuous improvement leading sustainability organizations. and help us meet our goal of being a leader in the global loyalty industry. Examples of our engagement with key stakeholder groups: Associates Associate Engagement Survey Annual tool helps create and foster a culture of open communication and continuous improvement. Associate Panel Mechanism to share information and get feedback from associates on overall corporate programming, including sustainability. Town Hall Meetings Bi-annual meetings hosted by Executive Committee members provide associates with updates on important LoyaltyOne news, including sustainability topics. President’s Focus Groups Quarterly meetings allow our President to meet with associates in an informal setting and get their perspectives on the business and how it could be improved. Annual Environment Fair Annual event raises associate awareness about more sustainable products and services available through our Sponsors, Reward suppliers and Facility suppliers. Contests & Prizes Challenges issued throughout the year engage associates on corporate sustainability (e.g. internal contests to reduce office
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