2019 CORPORATE SOCIAL RESPONSIBILITY UPDATE Table of Contents 3 LETTER FROM OUR EXECUTIVE CHAIRMAN 21 CONTENT & PRODUCTS 4 OUR BUSINESS 26 SOCIAL IMPACT 5 OUR APPROACH AND GOVERNANCE 32 LOOKING AHEAD 7 ENVIRONMENT 33 DATA AND PERFORMANCE FY19 Highlights and Recognition ........ 34 12 WORKFORCE FY19 Performance on Targets .............. 35 FY19 Data Table ..................................... 36 18 SUPPLY CHAIN LABOR STANDARDS Sustainable Development Goals ......... 39 Global Reporting Initiative Index ......... 40 Intro Our Approach and Governance Environment Workforce Supply Chain Labor Standards Content & Products Social Impact Looking Ahead Data and Performance 2 LETTER FROM OUR EXECUTIVE CHAIRMAN through our Disney Aspire program, our nation’s At Disney, we also strive to have a positive impact low-carbon fuel sources, renewable electricity, and most comprehensive corporate education in our communities and on the world. This past year, natural climate solutions. I’m particularly proud of investment program, which gives employees the continuing a cause that dates back to Walt Disney the new 270-acre, 50+-megawatt solar facility that ability to pursue higher education, free of charge. himself, we took the next steps in our $100 million we brought online in Orlando. This new facility is This past year, more than half of our 94,000-plus commitment to deliver comfort and inspiration to able to generate enough clean energy to power hourly employees in the U.S. took the initial step to families with children facing serious illness using the two of the four theme parks at Walt Disney World, participate in Disney Aspire, and more than 12,000 powerful combination of our beloved characters reducing tens of thousands of tons of greenhouse enrolled in classes. We believe education is the key and our expertise in creativity and technology. Last gas emissions each year. to opportunity and by enabling our employees to April, Walt Disney Imagineers unveiled the first pursue their educational goals, we help to put their suite of experiences, murals, and interactive art at Our progress is addressed in more detail in this career goals within reach. Texas Children’s Hospital in Houston, the largest report. While we have made great strides in many children’s hospital in the country, and efforts are areas, there is still much work to be done and ROBERT A. IGER, We’re also committed to ensuring that more underway to roll out the program in additional many things to accomplish. We must continually Executive Chairman, women, minorities, and other underrepresented hospitals in the U.S. and around the globe. push ourselves and our company further. I have The Walt Disney Company groups have the chance to contribute in personally challenged our leaders across Disney At Disney, we are proud to be one of the most meaningful ways, in all areas of our business. In 2020, the Disney Conservation Fund will to apply the same creativity, ingenuity, and admired companies in the world, respected Diversity and inclusion remains a top priority celebrate its 25th anniversary. Over the past quarter dedication they bring to our world-class media and not just for what we create, but also for how we for our company, and in 2019, we launched century, the Fund has directed $100 million to entertainment businesses to improve our programs conduct ourselves as responsible citizens. To and deepened our investment in a number of save wildlife and protect our planet, awarding and services and to advance our environmental and this end, our measures of success include our programs intended to expand opportunities grants to nonprofit organizations and leading social commitments – because our achievements in impact on the environment and efforts to protect for underrepresented storytellers in film and conservation efforts around the globe. We’ve also these areas are equally important to the success of our planet, how we operate our businesses, our television. We strengthened our internal networks inspired millions of people to take action in their our company and to the world we live in. contributions to local communities and other for diverse communities within Disney’s workforce communities. For example, in 2019, in honor of worthy causes, the value we place on diversity and as well, and we will continue to support these Disney’s The Lion King, we launched the “Protect We remain grateful for the strong support of our inclusion, and our commitment to the well-being and other similar endeavors. It’s vitally important the Pride” global conservation campaign, focused employees, stakeholders, and guests, and look and advancement of our employees. that our teams, along with the stories we tell on protecting and revitalizing the lion population forward to continuing to work together on behalf and products we create, reflect the diversity of across Africa by raising awareness and contributing of these and other worthy causes. Our ability to do good in the world starts with our the world in which we live, because that is how $3 million to the Wildlife Conservation Network’s people. They are our most important assets, and we best serve our consumers and also because Lion Recovery Fund. Sincerely, we are committed to doing what we can to enable it helps us to attract an even more diverse pool their success, while celebrating and promoting of talent. And the variety of perspectives and Also last year, we advanced our environmental their unique talents and perspectives. We continue experiences makes for a better creative process commitments through a mix of investments in to invest in them and in their futures, most notably and a stronger team overall. sustainable design innovations, energy efficiencies, Intro Our Approach and Governance Environment Workforce Supply Chain Labor Standards Content & Products Social Impact Looking Ahead Data and Performance 3 OUR BUSINESS The mission of The Walt Disney Company is to entertain, inform, and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds, and innovative technologies that make ours the world’s premier entertainment company.1 STUDIO ENTERTAINMENT PARKS, EXPERIENCES, AND PRODUCTS MEDIA NETWORKS DIRECT-TO-CONSUMER & INTERNATIONAL 1 For convenience, the terms “Company”, “Disney,” “we,” and “our” are used throughout this report to refer collectively to The Walt Disney Company and the subsidiaries through which businesses are conducted. The acquisition of Twenty-First Century Fox, Inc. (subsequently renamed TFCF Corporation and referred to as “TFCF”) closed in March 2019. Intro Our Approach and Governance Environment Workforce Supply Chain Labor Standards Content & Products Social Impact Looking Ahead Data and Performance 4 OUR APPROACH AND GOVERNANCE CORPORATE SOCIAL As a diverse and global company operating RESPONSIBILITY AT DISNEY in many industries, we must consider a wide and complex set of CSR issues. Many At Disney, we are committed to operating an of the environmental and social issues honorable and socially responsible company. most significant to our business and our We believe corporate social responsibility stakeholders are discussed in this report, “We continuously challenge (CSR) represents a long-term investment including environmental sustainability, nature ourselves to ensure that our that serves to strengthen our operations and conservation, workforce practices, diversity competitiveness in the marketplace, enhance and inclusion, supply chain labor standards, actions, commitments, and risk management, attract and engage talented content and products, volunteering, and initiatives are directed to our From our beginnings as a cartoon employees, and maintain our reputation. Our charitable giving. Beyond this core work, areas of greatest impact and studio in the 1920s to today, Disney CSR strategy plays an important role in the we continue to build the company’s legacy proudly continues our legacy of current and future success of our company. It of providing comfort to those in need, and live up to both the heritage creating world-class stories and also serves to embolden our workforce, enrich inspiration and opportunity for those who want and vision of our company.” experiences for every member of our planet, and positively impact people to improve their world. the family. around the world. Christine McCarthy, Senior Executive Vice President Our approach to corporate social responsibility and Chief Financial Officer is built upon the company’s long and enduring legacy of engagement in our workplaces and communities and our actions to protect the environment. We continue to believe in operating our company with the highest standards of integrity. Intro Our Approach and Governance Environment Workforce Supply Chain Labor Standards Content & Products Social Impact Looking Ahead Data and Performance 5 GOVERNANCE CSR Oversight In addition to this report, many ESG issues Corporate social responsibility at Disney is are addressed in policies or disclosures on DIVERSITY ON OUR BOARD Corporate Governance overseen directly by our Chief Financial Officer, our corporate website. These include both The Board of Directors of The Walt Disney We are committed to operating our businesses in close coordination with our Chief Executive voluntary disclosures, for example our policies Company is currently comprised of nine with the utmost integrity and adopting Officer, Chief Human Resources Officer, related to political transparency, and required directors, recruited to provide