Corporate Citizenship Sustainability, Simplified.

Strategies for impact Re-visioning corporate community investment for a bigger bang

March 2014

Overview of this morning:

. Results from ‘Funding Impact’ research . What does this mean for corporate community investment? . How leading companies are refocusing for impact • KPMG: Our community strategy • Barclays: Developing a global community strategy • Jaguar Land : Our global CSR Strategy . Q&A

Sustainability, simplified 2 Understanding the Impact Landscape: LBG and NPC Joint Research Background

• The first research paper on funder attitudes to impact. • LBG’s first joint research with NPC.

Sustainability, simplified 4 Key Findings 1. Across all funder types - measuring impact is seen as useful and important 89% 88% Impact Impact measurement measurement makes funders makes charities more effective more effective

Focus on measuring plan to increase overall impact has 82% impact measurement 75% increased in past 5 years in next 3 years

Sustainability, simplified 5 Key Findings

2. Funders are supporting grantees to increase impact measurement

25% provide no 57% funding Think funders should provide funding for impact

measurement 52% Work with grantees to decide what to measure

Sustainability, simplified 6 Key Findings

3. Challenges to impact measurement: for funders and grantees

Not knowing what to measure Lack of resources/funding to measure impact Impact measurement not linked to overall funding strategy Not knowing how to measure

Solutions

‘Discussions with grant holders ‘Shared measurement approaches about how they can measure for funders/grantees’ impact’ ‘Discussions with other funders ‘Training and guidance on how to about approaching impact develop measurement tools’ measurement’

Sustainability, simplified 7 Spotlight on corporate funders

63% rate evidence of impact as extremely important in the application process as compared to 45% of other funders

32% provide no funding for impact measurement compared to 22% of other funders

82% plan to put more focus on measuring their own impact over the next three years compared to 71% of other funders

Sustainability, simplified 8 Typology of funding

Ease of using impact measurement

Targeted funding Single goal Responsive funding - Clear social needs orientated funding - Flexible funder with funded - Working towards categories of funding - Outcomes within that goals in a clearly loosely defined are determined by defined area - Often high ratio of applications - Normally proactive, grants to staff - Fund a mixture of looking for charities - Funds applications applications in, and to fulfil key outcomes that people submit proactively sought identified by strategy grants

Flexibility

Sustainability, simplified 9 What is needed to improve practice

For charities For funders For the sector

• More capacity • Wider use of • Development and building measurement to use of platforms to develop approaches share learning and approaches • More explicit funding • Development and for impact use of shared measurement measurement techniques

Sustainability, simplified 10 What does a focus on impact mean for corporate community investment?

Sustainability, simplified 11 Focus Goals Measurement

Sustainability, simplified 12 Using impact to shape our community strategy 25 March 2014 Charlotte Rogers CR Manager Community investment strategy

Issue Using our greatest 2012-2014 annual 2013 skills and community targets resources to: Poor employability skills Improve We aim to provide direct 6137, and knowledge of work for employability support to help improve the 130 people from employability* of 5000 disadvantaged groups secondary school students and 180 people from socially excluded groups. Poor access to Improve access to We aim to recruit 25% of 29% professions for young our profession students from disadvantaged people from lower socio- backgrounds onto our school economic backgrounds leaver programmes. Challenging conditions for Strengthen We aim to directly support 968 many local communities community 1,200 organisations to because of continued organisations strengthen. economic and social pressures

© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated 14 with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved. It’s not just what you put in

© [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated 15 with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved. What next?

1. Improving data collection 2. New programmes fund impact measurement 3. Moving to focus on outcomes and collectively describing impact 4. Strategy review and stakeholder engagement Community outcome:

Our improving employability programme last year supported over 6,100 young people and over 130 socially excluded adults to improve

their employability.

This includes employees talking to over 1,950 young people about the skills needed to work for us. We have delivered employability workshops to 1,070 students and adults and 86% improved their awareness of the skills employers require.

Business outcome: 80% of volunteers that provided feedback felt they had improved their communication skills through volunteering © [year] [legal member firm name], a [jurisdiction] [legal structure] and a member firm of the KPMG network of independent member firms affiliated 16 with KPMG International Cooperative (‘KPMG International’), a Swiss entity. All rights reserved. Developing a Global Community Investment Strategy Karen Derbyshire Evolution of Barclays Community Investment From a heritage of reactive charitable giving, Barclays now has a single, unified global strategy that provides a strong foundation to effectively drive social and business impact

‘Go-To’ Bank

Banking on Building Young Change Futures

2004 2006 2008 2009 2010 2011 2012 2013 2015

Embed CI KEY THEMES Launch of 2015 CI strategy and Disparate UK- strategy pillars focused CI within Banking On Programmes Enterprise Employabilit Regions Brighter Skills y Skills Futures

Looking after Local Financial Communities New Regional Skills Governance Charity Begins At Work Model

18 | Global Investment Committee Meeting | 25 February 2014 Internal use only Strategic Review Process & Next Steps

Pre-2010-2011 2012-2013 2014 and beyond • 3 key themes but very • Created strategy with • Consistent broad singular goal – 5 Million communications Young Futures • No unified, global • Consistent employee method of measuring • Three key skills- programmes globally impact focused investment • Increasing global pillars centered around • Continue to embed perspective and young people investment pillars and strategy in regions and presence but still UK  Employability centric share best practices  Enterprise • Set objectives • Skills-based employee  Financial Skills engagement • Strategic Review: • Governance structure opportunities Research & Analysis • Global and  Interviews - internal local/regional stakeholders and partnerships external perspectives • Global, robust  Benchmarking and measurement market research &evaluation framework  External Advice  Internal Surveys 2 | Barclays Community Investment | October 2013  Firm strategy and business priorities Lessons and Challenges Barclays continues to evolve and refine its Community Investment strategy, ensuring that we maximize the impact of our Community Investment programmes Learnings and Next Steps from Barclays Strategic Review

• Understand business priorities and larger firm strategy • Benchmarking and industry landscape • Set iconic goals and narrow focus areas but allow regional flexibility – global vs. local partnerships • Internal stakeholder buy-in o engage Community Investment colleagues globally from start and o secure top-down senior business leader support • M&E and importance of ROI – “investments” over “donations” • Establish infrastructure – clear definitions, templates, systems, etc. • Build out consistent communications and messaging globally

4 | Barclays Community Investment | October 2013 Corporate Citizenship knowledge series

25th March 2014

Jaguar : our global CSR strategy

Laura Vickery Global CSR Manager Jaguar Land Rover

Jaguar Land Rover

• Jaguar Land Rover was formed in 2008 when Tata purchased Jaguar Cars and Land Rover from

• Headquartered in the Coventry area and is the largest premium automotive business in the UK

• UK’s largest investor in automotive R&D and engineering

• 190,000 people supported through the supply chain, dealer network and wider economy

• 425,000 vehicles sold in 2013 (up 19%)

• 80% of production exported

22 UK Footprint Manufacturing & PD Facilities

Halewood Whitley Land Rover Freelander • Global headquarters and Evoque • Design and Engineering Centre

Gaydon Castle Bromwich Design and Engineering Jaguar XF, XF Centre Sportbrake, XJ, XK and F- TYPE EMC Wolverhampton State-of-the-art advanced Engine Solihull Manufacturing Centre Range Rover, Range under construction Rover Sport, Land Rover (£500m) Discovery,

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Overview of the Global CSR Fund

• The Global CSR Fund – first introduced in April 2013 - now forms the back bone of JLR’s Global CSR Programme and is a key part of the company’s 2020 sustainability vision and roadmap.

• The centrally managed Fund is available for regions to initiate and run projects all across the world in conjunction with markets, to meet the ambitious goal of creating opportunities for 12m people by 2020. Specifically:

(i) to improve the lives of 10 million people, and (ii) to advance the knowledge of 2 million young people

• Projects should fit within one (or more) of the following four themes:

1. Education inspiring and educating the workforce of the future 2. Environment protecting and enhancing nature’s resources for future generations 3. Humanitarian & Health improving the well-being of poor and marginalised communities 4. Design, Technology & Talent promoting innovation, nurturing talent & enabling creativity

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Global CSR Fund Project breadth

China: CYDF JLR Hope School: Rebuilding communities

UK: Asia-Pacific: 1.Education Korea: Road Safety Partnerships: Schools challenges 2. Red Cross: : ChildAid network (with Community JLR Germany) resilience/home Education & schooling for support orphans 3. Grass roots Rugby (Hitz): Using sport for social change.

N. America: P.S Arts (Art/design in Australia: Red Cross underprivileged schools) Community resilience and Child Health Fund (education/health support to vulnerable children) Europe: Italy: Streets of Solidarity Overseas Portugal: Red Cross Kenya/SA: Life straw clean water: Health/environment/economic Happier Portugal Kenya Born Free: Bomas: Resilience & wildlife conservation Spain: Red Cross S.Sudan & Niger Red Cross: Clean water All 3: Skills dev’mt in S.Africa: Kingsley Holgate. Malaria net distribution: Health/economic Unemployed/vulnerable people. Red Cross: Integrated HIV & TB programme N’lds: Drive against Malaria Uganda Red Cross: Water sanitation Malaria net distribution: Health/economic 25

Global CSR Fund Project details and beneficiaries

Project Region Project location Sign-off? Theme

001/13 Drive Against Malaria Europe (Netherlands) Cameroon/CAR Completed Education / Humanitarian 002/13 Streets of Solidarity Europe (Italy) Italy Completed Humanitarian 003/13 Water Sanitation in South Sudan Europe (Austria) South Sudan Completed Education / Humanitarian Child Friendly City in NE India (ChildAid) Europe (Germany) India Completed Education / Humanitarian / Design 004/13 005/13 Access to Clean Water in Niger Europe (Ireland) Niger Completed Education / Humanitarian 006/13 For a Happier Portugal Europe (Portugal) Portugal Completed Humanitarian 007/13 Uganda water sanitation and hygiene Europe (Netherlands) Uganda Completed Education / Humanitarian 008/13 Premiership Rugby Community Prog (Hitz) UK UK Completed Education / Humanitarian JLR Hope School & Happy Sports China China Completed Education / Humanitarian / Design 009/13 010/13 Saving & Improving Lives (Kingsley Holgate) Overseas South Africa Completed Education / Humanitarian 017/13 Improving Employability in Spanish Families Europe (Spain) Spain Completed Education / Humanitarian 027/13 Lion Conservation (Born Free Foundation) Overseas Kenya/Tanzania Completed Environment 028/13 Integrated HIV/TB programme Overseas South Africa Completed Education / Humanitarian 030/13 Australian resilience emergency preparation Asia-Pacific Australia Completed Education / Humanitarian 031/13 Children's Health Fund N. America USA (New York) Completed Humanitarian 032/13 P.S. Arts N. America USA (California) Completed Education / Humanitarian 033/13 Support at home UK Red Cross UK UK Completed Humanitarian 034/13 Health in Sudan Europe (Switzerland) Sudan Pending Humanitarian 037/13 Road Safety in Korea Asia-Pacific Korea Completed Education / Humanitarian Total

26 Defining ‘Lives Improved’

As written in the CSR framework: “JLR expects the projects supported to deliver a positive impact on the people helped. It means doing more than simply making people aware of an issue but directly engaging with people to achieve a measurable change in one or more of the following areas:

Improving people’s skills or personal development (e.g. measuring the number of children with better engineering knowledge after completing a school challenge or completing an education activity);

Changing people’s behaviour or attitudes (e.g. measuring the number of people who are more energy efficient after an environmental campaign);

Improving people’s general well-being (e.g. measuring the number of people with access to clean drinking water as a result of a humanitarian contribution)”

27 What activity is eligible?

Eligible: Not eligible: • Projects must meet a clear community need, benefit the • Projects that focus on doing ordinary business community and have a lasting and positive impact responsibly (e.g. reducing JLR’s energy usage, protecting employee health an safety) • Projects must deliver measurable benefit in line with our social goals of advancing knowledge and improving lives • Pure brand promotion, general awareness raising or promotion driven sponsorship • Projects should align with existing JLR and brand programmes, where these exist • Where a brand promotion activity also includes an element of CSR activity (e.g. a commercial sports • Projects should be delivered in partnership with a not-for- sponsorship that includes funding for some grassroots profit organisation (charity, NGO, university, school etc) sporting activity), it is possible to apply for funding for the CSR element of the sponsorship • JLR aims to create an inclusive volunteering programme, so projects are encouraged to identify employee • Support for non-sustainable, political, religious or volunteering or engagement opportunities where relevant environmentally harmful projects. Furthermore, unrestricted charitable donations will not receive funding.

28 Discussion

. What makes a good strategy? . Can you deliver/measure impact without a strategy? . Can you measure everything OR how do you set limits? . How do you balance focus and meeting local community need?

Sustainability, simplified 29