www.pwc.com
Corporate Responsibility Index
1 2 3 4
Chairman’s Where Responsible Community message 1 we stand 2 business 12 engagement 18 Our CR Performance 3 Growing our CR expertise 14 Capacity building 19 Stakeholder engagement 4 Solving important problems 15 Education programmes 21 Sharing our insights 16 PwC Foundation 23 Materiality 7 Our CR strategy 10
5 6 7
Environmental Diversity and Global reporting stewardship 26 Inclusion 32 initiative 36 Engaging our people 27 Greenhouse gas emissions 30 1 Chairman’s Message
Raymund Chao PwC Greater China Chairman
The kind of work that PwC does through our Corporate Responsibility programmes - engaging in the community, managing our environmental performance and helping our own people and clients behave in a more socially responsible way - is a really important part of who we are. Over several years our CR programme has evolved along with our business and I’m proud to see PwC recognised as a leader in this space, winning awards in the market as well as the attention and engagement of our people. Based on the successes of the programme to date, the value that I see it bring to the business, and the potential for it to bring even more value to our clients and communities, my leadership team has committed to doubling our funding for CR programme costs in 2016. This will enable us to make an even greater impact in the communities we live and work in. We have set ourselves longer term ambitions to help build a stronger and more trusted NGO sector in China and Hong Kong, enable our people to understand and point out the sustainability and CR related risks and opportunities that our clients are facing, and reduce our environmental impact through smarter and more efficient operations. In an increasingly disruptive world where the megatrends of urbanisation, demographic shifts, technological breakthroughs and climate change are colliding, we need to be equipped to navigate this disruption and thrive, both in business and in society more broadly. I’d like to thank the many organisations who we work with in our efforts to have a positive impact on society and the environment, and to especially thank our people whose dedication and passion to our volunteer programme allows us to go from strength to strength.
Corporate Responsibility 1 2 Where we stand
FindFind out out more more about about our our Corporate Corporate Responsibility Responsibility strategystrategy and and governance, governance, performance performance metrics, metrics, andand our our approach approach to tostakeholder stakeholder engagement engagement and and materiality.materiality.
2 PwC PwC China and Hong Kong CR Performance
KPI Unit FY2012 FY2013 FY2014 FY2015 FY2016 Responsible business Annual compliance confirmation % completion 100% 100% 100% 100% 100% Diversity & inclusion Number of partners No. of partners 457 497 507 529 546 Number of staff No. of staff 11,322 11,759 11,565 12,259 14,328 Female partners % female 30% 30% 30% 31% 31% partners Female partner admissions % female 32% 29% 41% 38% 18% partners “I would recommend PwC as a great % favourable 64% 65% 67% 72% 75% place to work” “I am proud to work at PwC” % favourable 70% 70% 71% 75% 79% Total training hours ‘000 Hours 1,481 1,461 1,241 1,391 1,524 Average number of training hours Hours 126 119 103 109 102 per person Environmental stewardship Electricity consumption ‘000 kWh 14,426 15,155 15,128 15,197 15,828 Air travel ‘000 km 101,724 99,896 108,922 122,848 128,617 Purchased paper tonnes 733 642 664 711 825 “I am satisfied that PwC is responding % favourable 71% 73% 74% 79% 81% appropriately to address the impact of our business activities on the environment” Community engagement Charitable donations - staff and US$ 657,178 806,788 561,932 868,107 951,286 partners Charitable donations - firm US$ 425,535 1,037,562 780,985 771,353 718,849 Number of volunteers* No. of staff and 2,061 2,188 2,259 2,393 3,045 partners Volunteer participation rate* % participation 17% 18% 18% 19% 20%
Number of volunteer hours* Hours 17,953 20,321 19,938 19,869 29,176 Number of skilled volunteers No. of staff and 57 104 236 250 362 partners Number of skilled volunteer hours Hours 621 2,396 2,847 3,445 6,236 “I am satisfied with the actions PwC is % favourable 80% 79% 79% 83% 84% taking to be socially responsible” * includes all general and skilled volunteering activities
Corporate Responsibility 3 Stakeholder engagement
Engaging with our stakeholders is essential for us to understand local stakeholders’ needs and create the value they’re looking for. This insight also helps us to create a picture of stakeholder views that we use to inform our decision making, and ensure our reporting is relevant and responsive.
Stakeholder groups and basis for engaging Clients Our clients are vital to the firm’s success, and can have a direct interest in our CR performance and our impact in the market more broadly. NGOs We engage and collaborate with community organisations to understand local needs and how we can partner with them on solutions. CPA institutes Playing the role of regulators to our industry, it is vital to understand what is most important to them, and the role they see the industry has in addressing these issues. PwC staff and partners As a service business, the voice of our people is vital. They interact with each other, the business, our clients and communities, so we engage and collaborate with them to help achieve our CR strategic priorities. Media Have an interest in what large companies do in CR and have the ability to influence views in this area. Suppliers Suppliers are increasingly looking down their value chain to determine the CR impacts of their clients.
4 PwC Insights from stakeholder interviews Our continuing focus on education and NGO capacity building is considered to be appropriate and well aligned with PwC’s core business, and our overall network purpose to build trust in society and solve important problems. In particular our efforts to increase the amount of skills-based volunteering for our people is seen as a strategic priority by many stakeholders we spoke with. “It’s important to engage clients and the business community more broadly, to tackle social issues. Not many professional services organisations are doing this - there is room for someone to really stand out in this area and take the lead. PwC is one of the players with the potential to do this.” -PwC client Our ambitions for 2020 were also very well received and many stakeholders commented positively on the importance and relevance of those, as well as the relatively high level of ambition they represent. Being stakeholders who are credible, trusted and knowledgeable about corporate responsibility, social issues and sustainability, they also identified the importance of setting appropriate parameters and performance metrics for these goals, which we will continue to develop and refine. Observations from our internal focus groups highlighted the importance of CR as a way of engaging all staff, providing additional meaning, value and skills to their career. Many innovative ideas were suggested, and some are already starting to be implemented, for example increased messaging through popular social media channels like WeChat and Facebook. “Experience with the PwC CR team is very enjoyable - everyone is so supportive and constructive. They are always open to listen to what we want, are flexible and sensible, and give good advice and feedback. They respect us and always want to think of our organisation as well as our beneficiaries. In my experience, PwC is the best partner we’ve had in 10 years. It’s hard to find such a good team!” -PwC strategic charity partner
Corporate Responsibility 5 Stakeholder surveys & interviews Defining our approach In 2015 we conducted in-depth interviews with 7 In preparing our FY15 CR report, we adhered to external stakeholders, internal focus groups with the four GRI principles for defining report 37 of our people, and received a total of 646 content: - materiality, stakeholder inclusiveness, responses to our online stakeholder survey. sustainability context and completeness. We conduct this stakeholder dialogue every two years. The results shared here are from our FY15 Online 646 CR report. We consider the sustainability context in which we operate on an ongoing basis to help determine the sustainability issues which are most relevant to our business. This includes evaluating our PwC people 37 business and community relationships, the evolving nature of our industry, the geographical location, legal environment and political framework where we operate, as well as other regional and local trends. We invite a broad range of our stakeholders to External complete an online survey to identify the most stakeholders 7 material sustainability aspects in a systematic and replicable way, allowing comparisons across reporting years and across stakeholder groups. Full results from this process are available in our materiality assessment. This includes a list of the top five material issues per stakeholder group, linked through to information on how we are addressing each of those issues. In FY15 we also conducted in-depth interviews with selected key stakeholders to enhance the level of dialogue and obtain feedback on PwC’s CR performance in China and Hong Kong, and their views on the direction and impact our CR programmes can and should have. Find more details in the next page.
6 PwC Materiality Our materiality assessment approach At PwC, CR is about doing the right thing, and being a catalyst for change. ‘Doing the right thing’ is our way of addressing all of those material issues identified by our stakeholders that are internal to our organisation, and over which we have direct control. ‘Being a catalyst for change’ refers to our responsibility to address those material issues identified by our stakeholders that are external to our organisation. The table below lists the top five issues identified by each stakeholder group and categorises their boundary as being internal, external or both.
Top five issues and their boundaries by stakeholder group
Clients Internal External Reference Page Data security ● ● Reference (Page 12) Embedding sustainability into our ● Reference (Page 15) client services Skills based volunteering ● ● Reference (Page 19) Corporate responsibility strategy and targets, including environment ● Reference (Page 10) and community Building trust and transparency in capital ● Reference (Page 19) markets and civil society
CPA institutes
Internal External Reference Page Training and development Reference 1 (Page 14) ● Reference 2 (Page 37) Maintaining exceptional ● ● Reference (Page 12) ethical standards Talent attraction and retention ● Reference (Page 32) Anti-corruption and Reference 1 (Page 12) ● ● anti-bribery measures Reference 2 (Page 37) Building trust and transparency in capital ● Reference (Page 19) markets and civil society
Media
Internal External Reference Page Maintaining exceptional ● ● Reference (Page 12) ethical standards Building trust in capital markets and Reference (Page 19) civil society Corporate responsibility strategy and targets, including environment ● ● Reference (Page 10) and community Talent attraction and retention ● Reference (Page 32) Transparency in our reporting ● Reference (Page 37)
Corporate Responsibility 7 NPOs Internal External Reference Page Skills-based volunteering ● ● Reference (Page 19) Pro-bono / deeply discounted ● ● Reference (Page 18) services to NPOs Engaging our people in Reference 1 (Page 18) corporate responsibility ● Reference 2 (Page 27) Reference 3 (Page 12) Charitable donations ● Reference (Page 23) Building trust and transparency in ● Reference (Page 19) capital markets and civil society
PwC staff and partners
Internal External Reference Page Talent attraction and retention ● Reference (Page 32) Employee security, ● safety and well-being Training and development Reference 1 (Page 14) ● Reference 2 (Page 37)
Paper consumption ● Reference (Page 30) Engaging our people in Reference 1 (Page 18) corporate responsibility ● Reference 2 (Page 27) Reference 3 (Page 14)
Suppliers
Internal External Reference Page Training and development Reference 1 (Page 14) ● Reference 2 (Page 37) Engaging our people in Reference 1 (Page 18) corporate responsibility ● Reference 2 (Page 27) Reference 3 (Page 14) Maintaining exceptional ● ● Reference (Page 12) ethical standards Data security ● ● Reference (Page 12) Building trust and transparency in ● Reference (Page 19) capital markets and civil society
8 PwC CR materiality matrix FY15
aintainin e eptional et i al stan ar s nti orr ption anti bribery eas res ransparen y in o r reportin ata se rity il in tr st in apital ar ets an i il so iety be in s stainability into lient ser i es rainin e elop ent n a in o r people in CR a ti ities alent attra tion retention ployee se rity ellbein Responsible pro ren ent CR strate y tar ets Client satis a tion i ersity in l sion oll tion r CR reportin n a in in or al sta e ol er ialo e ro bono ser i es ner y ana e ent an rene ables ater ateriality o iss es to e ternal sta e ol ers Carbon ootprint li ate an e C aritable onations aper ons ption ills base ol nteerin aste an re y lin eneral ol nteerin
ateriality o iss es to b siness
Validation of the stakeholder survey results by management is the final step in defining our material issues. We do this by checking that the issues identified by our stakeholders are complete and accurately reflect the scope and boundary of our CR strategy. The results of our 2015 stakeholder engagement are depicted in the materiality matrix diagram above. Issues which are most material to our external stakeholders are plotted further up the vertical axis, while those most material from an internal business perspective are plotted further along the horizontal axis. For transparency, the materiality matrix also includes those issues which did not rank in the top five for any stakeholder group.
Corporate Responsibility 9 Our CR strategy
The Corporate Responsibility PwC Foundation Committee
The Corporate Responsibility Committee, chaired The PwC Foundation is governed by six partners by the PwC China and Hong Kong Operations across PwC China and Hong Kong. These PwC Leader, comprises PwC China and Hong Kong’s Foundation Trustees meet regularly to oversee Leaders for the North, Central and South China the Foundation’s strategy, progress and use of markets; Government and Regulatory Affairs; funds. The Trustees report to the CR Committee. Human Capital and Diversity & Inclusion. The Committee oversees our overall CR strategy and meets regularly to provide guidance on implementing CR policies. It also reviews the progress of CR including the PwC Foundation and the Environmental Sustainability Steering Group. The CR Committee reports periodically to the Territory Management and Executive Boards.
Global Corporate Environmental Responsibility Sustainability Board (GCRB) Steering Group
The GCRB comprises leaders from the largest The Environmental Sustainability Steering Group PwC member firms, regional corporate reports to the CR Committee. It’s responsible for responsibility leaders and sustainability subject developing and implementing programmes and matter experts. Joanne Oswin, PwC China and initiatives aimed at reducing our operational Hong Kong Operations Leader and CR Committee carbon footprint and creating an environmentally Chair, is a member of the GCRB. In keeping with conscious working culture. best practice, the board also includes an external independent advisor. The Board comes together every quarter to provide governance, oversight, input and direction to PwC’s corporate responsibility global strategy in alignment with the overall business strategy and to be the forum for alignment across the PwC network.
10 PwC Our ambition for 2020
In 2015 we conducted comprehensive stakeholder engagement activities with our CR Committee, Management Board and other external stakeholders to set the longer term ambitions of our CR programme. Below are the outcomes from that process.
Community Responsible business engagement
Be recognised as a leader due to the value added Help build a stronger NGO sector in China; and from embedding CR into our services. As we have 50% of our people engaged in CR. develop and implement the strategies and initiatives necessary to realise this, we will provide updates on our progress in our future CR reporting. Environmental stewardship
Implement real-estate sustainability guidance, setting requirements for all future office relocations and refurbishments.
Corporate Responsibility 11 3 Responsible Business
We create value for business and our communities by using our core skills, services and thought leadership to help build trust and solve important problems. We’ve also invested in a CR training so that all our people understand the sustainability risks and opportunities many of our clients are facing, and can help them act on these
12 PwC In FY16 all of our partners and staff completed independence, ethics and compliance training
As a leading professional services firm, we have committed ourselves to creating value for business and society by using our core skills, services and insights to help build trust and solve important problems. As the world continues to change around us at an ever-increasing pace, our core values of quality, independence, ethics and integrity are crucial to ensuring that everything we do is part of the solution.
Building trust in society Sharing insights
NGOs increasingly see the importance of building Working with diverse clients every day, we have public trust in order to attract long term the benefit of thinking about business challenges partnerships and funding. and opportunities from different perspectives. Thought leadership is our way of sharing these To help address this issue, PwC China and Hong perspectives and continuing Kong has provided training sessions on best the conversation. practices in governance and transparency for leaders from around 600 NGOs, 70 of these NGOs have taken part in a more detailed mentor Growing our CR expertise programme with PwC specialists since FY13. Around 85% of the NGO leaders in the FY16 China and Hong Kong sessions reported that they Our clients told us that embedding sustainability can use what they have learned to improve their into our core services was highly important to organisations. them. Our Think Corporate Responsibility e-learning module, completed by over 75% of our people in FY16, provides an overview of the sustainability and CR issues affecting businesses, and how we can help our clients to respond.
Solving important problems
Quality work is fundamental to delivering value to our clients, capital markets, investors, and other stakeholders. It is the base on which we’re built. From audit and assurance services, to business forensics and sustainability services, our everyday work aims to build trust in society and solve important problems.
Corporate Responsibility 13 Think Corporate Responsibility
Growing our CR expertise The training covers a number of sustainability and corporate responsibility related issues, Our Global Think Corporate Responsibility including examples of how these are already e-Learn raises awareness of the impact of global affecting businesses. Topics include business megatrends on our business and the businesses of ethics, paying taxes, energy uncertainty, raw our clients. The focus of this e-Learn is to material scarcity, climate change, sustainable strengthen our people’s knowledge and products, ecosystems and biodiversity, water understanding of how we can embed CR issues scarcity, human rights and labour standards, and and opportunities into the work we do every day, quality of life. while stimulating a sustainability mindset in which everyone can confidently articulate the business impacts of sustainability, consider social and environmental risks for our clients and be able to identify new value adding opportunities. In FY16, we launched a customised version of this training tailored for China and Hong Kong markets. Over 75% of our staff and partners took the training.
14 PwC Solving important problems
Everything we do - from the smallest interactions to the most public of statements - has the potential to make an important and lasting impact. Each and every day our people interact with our clients in a way that helps them enhance and sustain the value of their business, for the benefit of stakeholders. That is why quality work is fundamental to delivering value to our clients, capital markets, investors, and other stakeholders.
Sustainability and climate Our services change services
We’re creating new client services, using our Just as we see our corporate responsibility distinctive skills and expertise to help others strategy as key to our ability to achieve important build more transparent, responsible businesses. objectives, many of our client organisations do as We’ve developed Food Supply and Integrity well. Our Sustainability and Climate Change services, to help businesses address the issues practice engages with companies to provide a associated with an erosion of public trust in the range of services to help them create and protect food industry. Our services across the food value business value by more efficiently using natural chain include building trust through food safety capital, and building resiliency as the effects of compliance, reducing susceptibility to food fraud environmental change take hold. The most agile risks, traceability and supply chain integrity, and companies will anticipate these changes, create crisis management for when things go wrong. new products and services, and turn their ethical, social and environmental expertise and ‘Total Impact Measurement & Management’ credentials into competitive advantage. (TIMM), the framework we’ve developed with our clients to provide the total perspective on We offer a broad range of tax, advisory and business impact, helps businesses turn corporate assurance services that can help clients responsibility into ‘business as usual’, and making understand which issues will have the greatest informed business decisions based on the total impact for their business, form a coherent positive and negative societal impacts they have. strategy to address them, and provide support through the often complex organisational changes needed to put a strategy in place.
Corporate Responsibility 15 Sharing our insights
At PwC, we engage both our people and the market more broadly about sustainability risks and opportunities, and share our knowledge, research and insights to increase the level of understanding and engagement about a particular issue. This stimulates further consideration of how the issue may affect a business or an industry, and provides a platform for others to consider the Megatrends best approach to address it. The five global mega trends continue to advance Working with diverse clients every day, we have - demographic and social change, shift in the benefit of thinking about business and economic power, rapid urbanisation, climate sustainability challenges and opportunities from change and resource scarcity, and technological different perspectives. Thought leadership is our breakthroughs. Where they collide, we are seeing way of starting a dialogue to share those insights. remarkable opportunities to drive solutions. Whether through formal papers, articles, digital channels, events and forums or face-to-face interactions, thought leadership at PwC is about exchanging ideas and exploring the issues that matter most to our clients and stakeholders. The UN Sustainable Development Goals 70% of Driven by the United Nations, the SDGs are a set businesses plan to of global goals that governments adopted in embed the SDGs 2015. They will look to society, and business in within 5 years. particular, for help to achieve them. We’ve developed a range of publications, research insights and interactive tools to explore the role of business in achieving the SDGs.
16 PwC Recent publications
Corporate Responsibility 17 4 Community Engagement
We create value in our local communities by using our people’s time, skills and experience to make a lasting difference. Our flagship Strengthening Donor Communications programme is key to our goal of helping build a stronger NGO sector in China and Hong Kong. Our programme also includes other skills-based and staff-led volunteering, and strategic charity partnerships.
18 PwC Capacity building
Our community engagement focus is on using our people’s professional skills to help NGOs or individuals. Our network purpose is to build trust in society and solve important problems, and in Corporate Responsibility we have an ambition to help build a stronger NGO sector in China and Hong Kong by 2020. Our flagship Strengthening Donor Communications FY 16 Training: programme is one of the key ways we seek to achieve our ambition, providing capacity building to NGOs in the areas 61 PwC volunteers of governance and reporting - skills which are core to our business, and critical for a resilient and trusted NGO 250 NGO leaders trained sector. This programme brings together government departments, academia, non-profits and other responsible 250 volunteer hours businesses to share knowledge and enhance the conversation on these issues.
FY 16 Mentor Programme: We believe that having an understanding of good governance and transparent reporting, and being able to apply both of these, is key to building trust and mentors 57 strengthening donor communications to secure access to sustainable funding and partnerships. 26 NGOs mentored In FY16, following the previous two years, PwC continued 481 hours to deliver trainings and mentor programmes to NGO and Foundation leaders in Hong Kong, Beijing, Shenzhen, and Shanghai, focusing on the areas of management & risk 82% mentee NGO leaders said control, impact measurement, as well as good governance the training content is very useful to and boards. These trainings aimed to raise NGO’s their NGOs awareness of the importance in how to manage and control risks, how to measure the impact of projects, and how an 85% NGO leaders reported they effective board should function, so they could better used what they learned in the training communicate their organisation operation with donors, and mentoring to positively impact stakeholders and the public in order to build trust and their NGOs attract more sustainable funding. PwC mentors were engaged, bringing positive business impact for the firm (increases in skills & networks reported)
Corporate Responsibility 19 In addition to the flagship Strengthening Donor Communications programme, we also promote youth mentorship and capacity building programmes to our staff. We worked with ENACTUS in being the business advisor for university students on their social entrepreneur projects, and designed a work based capacity building programme for ethnic youth in Hong Kong with our charity partner TREATS.
TREATS -Capacity building and mentoring programme for TREATS -Capacity building and mentoring programme for Ethnic youth (Project SHINE) Ethnic youth (Project SHINE)
20 PwC Education programmes
Many of our community engagement initiatives support education related programmes. In particular our key strategic NGO partnerships focus on migrant and left-behind children, as well as other minority groups that may experience disadvantage or inequality in accessing education. Wherever possible we promote the use of our skills when supporting education related programmes in the community. In FY16, we continued to organise two major educational programmes: Rural School Volunteer Programme (RSVP), and programmes for migrant children. The RSVP programme recruits PwC volunteers, travelling to targeted schools for one week, using their experiences and skills to bring new knowledge, and most importantly new horizon of the outside world to left-behind children at the schools in remote areas of China, etc. In our migrant children programmes, PwC volunteers accompany migrant children through outdoor field trips or indoor extra-curricular activities, to help them engage in the local community, as well as to broaden their horizons and build up self-confidence.
Corporate Responsibility 21 Quotes from participants
“I am so blessed to have such an opportunity “This was a great experience with secondary to join in an activity like this. PwC is taking students. I was happy to see their behaviour responsibility in community, and this activity change and an improvement in their social evokes our inspiration to take our responsibilities communication skills after a series of workshops.” in the community.” (2015 Together in Green Life Style (2015 Vibrant Communities Shanghai - Maker Faire Day 2) Summer Camp) - Tracy PL Lee, Tax - Hong Kong - Jessie X Sun, Assurance - Qingdao
“When we left the school, the children in Grade 3 “I thought this was a really meaningful activity. cried hard as they had bonded with the teachers. Looking forward to the next! Seeing how happy I think English have rooted in some of them. … the children were when we took them on the visit After class, we talked and shared problems we was a joyful experience for me.” confronted during teaching and worked together to solve them. I knew colleagues and made (2015 Field trip with migrant children to friends with them during the week in Henan. It is Guangdong Science Center) an amazing experience. I taught and I learned. I think I will take another chance to join.” - Jessica TJ Peng, Assurance - Guangzhou (2016 Henan RSVP trip)
“Getting to know my colleagues better and - Jane J Shen, Assurance - Beijing enjoying the scenery around in Shanghai was a great experience. I hope everybody can join this kind of social activity. We should do what we can “Great volunteering experience with lots of fun!”… and help more people in need!” “I learned about Hutongs and interacted with migrant children. That was a great experience for (2016 Shanghai “Egg” Walkathon) cultural immersion in local Beijing culture!”
- Bryan Wei, Assurance - Shanghai (2015 Hutong Treasure Hunt)
- Kevin Leng, Advisory - Shenzhen I enjoyed the voluntary event of making moon cakes with children. This brought joy to them and they could share the self-made moon cakes with “Collaboration…Wonderful…This is a fantastic their family to celebrate Mid-Autumn Festival. activity and I’m honoured to be part of it. It has brought a lot to me as being a judge.” (2015 Snow skin mooncake workshop with YMCA kids) (Become a 2016 Enactus Competition Judge)
- Natalie PK Lam, Tax/Private Client Services - Hong Kong - Venson Cheng, Shared Delivery Centre - Chengdu
22 PwC PwC Foundation
Total of US$1.69 million contributed in FY16
Total volunteering for FY16 3,045 29,176 PwC people participated in volunteering hours community activities
362 6,236 skilled volunteers skilled volunteering hours
81% increase in skilled volunteering hours since FY15
The PwC Foundation provides a channel for the firm and our people to donate to good causes. The majority of our firm’s donations go to our key USD 718,849 NGO partners and staff-led volunteering and PwC funding for key NGO partners and fundraising events. Our partners and staff give volunteering programmes generously every year, and contribute through fundraising events to further support the NGOs of their choice. This year, we also continue to donate USD 16,475 second hand laptops, and provide our meeting In-kind donations, including used laptops facilities to NGOs, which is a valued part of our and office facilities in-kind giving. USD 951,286 Donations from staff and partners
Total of USD 1,686,610 donated in FY16
Corporate Responsibility 23 PwC Foundation funded staff-initiated volunteering We support volunteering activities that involve our people, and by using our skills, time or resources we bring positive impact to the community. The programme themes for staff-initiated volunteering are not limited to our community engagement focus areas - capacity building and youth education. So we have seen a broad range of causes supported by our staff who have a particular interest or connection to these charities. In FY16, the PwC Foundation funded 64 staff-initiated volunteering events creating 1,941 volunteering opportunities for our staff. We would like to take this opportunity to thank our 3,045 volunteers! Below are some activity highlights:
PwC Volunteers in Beijing accompany disadvantaged children to a concert
Key NGO partners PwC has developed strategic partnerships with local NGOs, focusing on education and capacity building as key themes. These well-established partnerships provide multiple opportunities to collaborate in ways which are most meaningful and beneficial to all – through hands on volunteering, skills based volunteering, fundraising initiatives, pro bono and capacity building engagements. We also work together with many other local NGOs as part of our PwC Foundation funded, and staff-initiated, community volunteering activities.
24 PwC Chunhui Children’s Foundation Chunhui Children’s Foundation is the sister Foundation of Half the Sky Foundation (Now called One Sky), which PwC has supported since 2008 and is a major sponsor for its Youth Services Programme to help orphaned youth. We give our support through funding, volunteering and providing professional services. Chunhui Children provides model programs and caregiver training to enrich the lives of orphaned children and youth in China. In addition to funding, PwC offers pro bono services in strategic people planning, internal controls and tax advisory to Chunhui Children’s Foundation. Vibrant Communities Since 2006, Vibrant Communities (formerly called INCLUDED) has been doing essential work with migrant children and their families, particularly in the crowded margins of big cities, to break down barriers of informality and instability that deny migrants access to the wider opportunities and services of their cities. PwC’s partnership with Vibrant Communities funds its educational programmes and provides volunteers to help bring equal opportunities to migrant children and their families. TREATS TREATS focuses on social inclusion and integration for all, especially children and youth from disadvantaged backgrounds, by promoting understanding, acceptance, equal participation and embracing differences. PwC provides funding and volunteer support for a range of experiential learning, play and recreational activities which enhance self-esteem and life skills for the children from disadvantaged backgrounds. Yao Foundation Established by well-known basketball player Yao Ming in response to the devastating 2008 Sichuan earthquake, the Yao Foundation helps to rebuild earthquake resistant schools and organise annual basketball training programmes and games for Hope School students to enrich children’s curriculum. PwC supports its school rebuild programme and its annual Yao Foundation Hope School basketball game through funding and volunteering.
Corporate Responsibility 25 5 Environmental Stewardship
We recognise that our greenhouse gas emissions are our largest environmental impact, so we focus our efforts on measuring our emissions, improving our efficiency and engaging our people in environmentally responsible behaviours.
LEED Certified offices> Our GHG emissions
26 PwC Engaging our people Employee participation is critical to reducing our environmental impact collectively as an organisation. We continually look for new ways to raise awareness and understanding of environmental issues, so that individuals can make better choices both in and outside the office. Our most recent employee survey showed that 81% of our employees are satisfied with our environmental performance, an increase of two Eco-markets percentage points since the previous year. Eco-markets took place in Beijing, Shanghai and Employee participation is critical to minimising Hong Kong for the second time, bringing together a the direct negative impacts of our business, and range of sustainable, organic and eco-friendly by pro-actively engaging our people in vendors within PwC offices. Participants browsed, environmentally responsible behaviours, we can taste-tested, learned about and purchased items play a part in influencing individual actions including organic produce, fair-trade food and inside and out of the office. drinks, recycled and upcycled goods, biodynamic wines, natural skin-care and cleaning products. Green Week Each year we celebrate Green Week at PwC China Through our eco-markets and Hong Kong with a week full of fun packed of we engaged over 1,200 engaging activities in the lead up to Earth Hour. In 2016 we had our biggest and best Green Week staff and partners to yet where we engage colleagues from all offices promote environmentally across China and Hong Kong. In addition to our responsible behaviours. daily communications from our Chairman and senior leaders about the importance of sustainability and other fun activities, we invited a number of guest speakers such as Green Monday, and our very own Food Security and Integrity Services to talk about food security and sustainable food sources as well as other sustainability/ environmental knowledge that could help us make a difference on a personal level and equip us with knowledge to help us add value to clients through our services.
Corporate Responsibility 27 PwC’s Forest PwC Think Green Fund Green Week also signals the start of our annual The Think Green Fund is a way for individuals to flagship environmental volunteering initiative, voluntarily contribute to environmental PwC’s Forest. This year 16 volunteering events protection. Through the Think Green Fund, we were held, with 795 of our people planting trees in provide an opportunity for managers and above 14 different locations in China and Hong Kong. to make donations to balance their carbon footprint from work-related air travel. All donations to the Think Green Fund are matched by the firm, and over HK$450,000 has been raised to date. Funds raised so far have been directed to plant trees in China and Hong Kong, and for the following projects: Netspring Green IT Classroom - China Netspring is a social enterprise that collects used laptops and PCs, refurbishes them and distributes them to schools in disadvantaged areas around China which have little or no IT infrastructure. They also provide software, training for teachers, student workshops and technical support for three years. PwC has sponsored two primary schools of XinCin Tang DongFeng Hong, located in the countryside around Nanchang, near Chongqing. Volunteers attended the schools, interacting with the students and sharing their IT skills and knowledge. This partnership helps to reduce e-waste, promote reusing, and provide valuable IT tools to those in need.
16 volunteering events were held 795 of our people planting trees in 14 different locations in China and Hong Kong.
28 PwC Urban Rooftop Farm - Hong Kong Some of the advanced features include: Our rooftop farm is installed and producing excellent crops at our Manulife Financial Centre • Air-conditioning with automated filtering location in Hong Kong, in partnership with and air purification system Rooftop Republic. Our dedicated staff volunteers • Work-space indoor air quality monitored care for the vegetable plots on a daily basis. by Well Accredited Air Quality With over 95% of Hong Kong’s total food supply Consultants, and results displayed in the imported, urban farming can contribute to a office and our online portal. Indoor healthy and sustainable lifestyle, bringing a air-quality results are consistently under range of benefits to the environment. Food is the China standard for PM2.5 and grown organically, without the use of chemical significantly better than the air quality pesticides and fertilisers, and fresh food can be reported outdoors. distributed from farm to table, reducing negative • Carpet and furniture products have been impacts from transport, processing produced according to LEED Gold Standard and packaging. Certification Efficiency in our buildings • Plants have been placed throughout Being an office based business, electricity office space consumption makes up a large portion of our • Water filtering system makes tap total GHG emissions profile. We are committed to water potable continually exploring ways to make our • LED lights throughout to reduce energy operations more energy efficient. During FY2015 consumption from lighting we continued to roll out a new fleet of laptops with greater energy efficiency, and replaced printers in our China locations with a smaller number of energy efficient multi-function devices. Other technology infrastructure improvements include consolidated IT servers and greater use of cloud technology. Our new premises in Shanghai also carry a lot of environmentally friendly features, and we have achieved LEED Gold Standard certification for each of the floors we now occupy at 3 Corporate Avenue, Shanghai.
Corporate Responsibility 29 Greenhouse gas emissions
Our approach Greenhouse gas (GHG) emissions represent the most material direct environmental impact of operating our business. We have a consistent strategic approach to measuring our GHG emissions across China and Hong Kong, allowing a clear picture of our emissions profile to be monitored. We seek to reduce our emissions in two ways: through infrastructure and equipment upgrades and improvements, and by engaging our people in more environmentally responsible behaviours. Since FY11 (our baseline year) we have been measuring and managing our carbon footprint in accordance with the WRI/ WBCSD Greenhouse Gas (GHG) Protocol. Detailed information about our approach is available on our website, please refer to our PwC China and Hong Kong GHG Reporting Manual and Criteria.
GHG Results Carbon emissions
Composition of GHG emissions FY16
7.9% S ope 1 31.9% S ope 3 8.5%
10.3%
S ope 2 10.4% 30.9%
le tri ity ons ption in l in losses ir tra el ope 90 ne or Controlle transport ars Car tra el in l in ta is an o ne ontrolle e i les r ase paper ope 14,164 r ase le tri ity erni t a o o ation eat ons ption eat ons ption ope 24,055 erni t o o ation a i ra el ir ra el r ase aper ease ttle s r ase le tri ity rans ission an istrib tion osses
30 PwC Carbon emissions Assurance approach As a firm that provides audit and FY16 GHG emissions per capita assurance services, we recognise the pivotal role that auditing can play in not only ensuring the reliability and credibility of data, but also in the learning and continual improvement 2.65 that is the result of audit processes. For both of these reasons, we have our GHG data for China and Hong Kong audited in accordance to ISO-14064-1 standard. Please refer to our PwC China and Hong Kong GHG Reporting Manual and Criteria on our website to learn more about our approach.
CO2 e
Corporate Responsibility 31 6 Diversity and Inclusion
“Inclusion gives us the license to be curious and open minded to new ways of thinking and diversity motivates the act of cross pollinating perspectives, experiences and ideas. Both concepts inspired us to challenge sameness by helping each other reach our full potential to deliver the most distinctive PwC Experience in everything we do.” Xing Zhou, PwC China and Hong Kong Diversity Leader
32 PwC In a marketplace without boundaries, diversity is Career confident a key driver for PwC’s business and leading 75% of females in China and Hong Kong say market position in China and Hong Kong. employers that offer mobility opportunities are Diversity and inclusion is a strategic business more attractive and similarly, 74% said it was a priority because talent diversity is a source of driving factor in keeping them with an employer. PwC’s market differentiation and competitiveness. We believe the best innovations The opportunity to complete an international come from diverse thinking, that is why our experience was a key factor that attracted me people agenda focuses on attracting and to my employer retaining the best talent from the widest range of profiles globally. We believe diverse talent and teams working together make better decisions and strengthen the delivery of our client promise in the PwC Experience - it is the combination of different perspectives, insights and skills that help us better understand clients’ changing needs and create value that is relevant to an evolving business climate. 75% Agree We embrace diversity and celebrate the unique qualities, differences and similarities among The opportunity to complete an international talent. We believe our quality of talent diversity experience is a key factor in me remaining has a direct impact on PwC’s purpose which is to with my employer build trust in society and to solve important problems. The richer our talent diversity, the wider the approach and coverage we have to positively impact world issues. The success of our people matter to us, their achievements reinforce PwC’s strength and presence in the region as the #1 professional services firm. We respect their aspirations and we are committed to their continued professional growth to become future influential role models to deliver on PwC’s purpose. 74% Agree
Engagement and success This year, our people have told us that they believe PwC is an inclusive work environment where individual differences are respected and valued,
scoring 78%, up 2% y-o-y
Corporate Responsibility 33 Total workforce headcount by region Approach and gender as at 30 June 2016 PwC’s diversity and inclusion strategy is closely aligned with our business ambition. We believe that an inclusive climate will unleash City Male Female the full potential of our people, therefore optimising the power of our Beijing 1161 2449 collective workforce to innovate and to deliver distinctive experiences in everything we do for clients and ourselves. Chengdu 109 576 A key area we focus on is enhancing organisational inclusion to create Chongqing 40 34 a workplace culture where diverse employees can feel safe to be their Dalian 26 93 whole selves. The culture we desire is one in which our people can Guangzhou 276 546 build relationships, share ideas and voice their perspectives Hangzhou 20 40 constructively without judgement or bias. We believe cultural Hong Kong 1670 2209 intelligence and dexterity are imperative business skills that will drive success in our interactions every day. Being open minded to views of Macau 16 40 the world with someone who thinks very different from us is a Nanjing 15 35 fundamental concept in our diversity and inclusion work. Ningbo 10 17 Our inclusion work is primary to four strategic dimensions in support Qingdao 54 111 of PwC’s continued expansion in the region, including: Gender, Shanghai 1515 2560 valuing differences, generations and culture. We also appreciate Shenyang 2 9 diversity and inclusion in other expressions and the value they bring to PwC. We are committed to extending our coverage to support the Shenzhen 246 537 professional growth of the widest range of talent. Suzhou 26 64 Tianjin 68 154 Wuhan 15 24 Xiamen 17 24 Xi’an 16 50 Total 5302 9572
Key initiatives reaching internal, external and social media audience:
An overview from Xing Zhou, PwC China A celebration message from Raymund PwC is committed to support HeForShe - a and Hong Kong Diversity Leader and China Chao, PwC Greater China and Chairman, on United Nation initiative to promote gender Insurance Leader, on findings from the International Women’s Day 2016 equality around the world thought leadership Modern mobility: Moving women with purpose
34 PwC Corporate Responsibility 35 7 Global Reporting Initiative
Our online report for FY2015 was developed following the Global Reporting Initiative (GRI) and is ‘In Accordance-Core’ with the GRI G4 guidelines. The GRI Index provides full details of our reporting criteria and links to relevant sections of this online report. This interim report serves as an update to our full FY15 report.
36 PwC GRI Index The information displayed in this section is the same as our FY15 report. Our FY16 report is an interim update only. We will publish a full GRI report with updated data for the reporting year FY17.
GRI Index Indicator description Reported Cross-reference or direct response Strategy and Analysis G4-1 Provide a statement from the most ● Chairman’s Message senior decision-maker of the organisation (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organisation and the organisation’s strategy for addressing sustainability. Organisational Profile G4-3 Report the name of the organisation. ● PwC China and Hong Kong G4-4 Report the primary brands, products, ● We are committed to delivering quality in assurance, tax and and services. advisory services. Our service offerings include accounting & payroll, audit and assurance, business recovery, capital market and accounting advisory, company secretarial, consulting, deals / mergers & acquisitions, forensic, internal audit, international assignments, IPO & capital markets, people & change, private client services, risk assurance, sustainability & climate change, tax and transfer pricing. G4-5 Report the location of ● We are located in these cities: Beijing, Shanghai, Tianjin, the organisation’s headquarters. Chongqing, Shenyang, Dalian, Xi’an, Chengdu, Qingdao, Nanjing, Suzhou, Wuhan, Hangzhou, Ningbo, Xiamen, Guangzhou, Shenzhen, Hong Kong, and Macau. Although no single location is considered an operational headquarters, our three largest centres in terms of workforce size are Beijing, Shanghai and Hong Kong. G4-6 Report the number of countries where ● PwC China, PwC Hong Kong and PwC Macau work together on a the organisation operates, and names of collaborative basis, subject to local applicable laws, and are countries where either the organisation together referred to as PwC China and Hong Kong. has significant operations or that are specifically relevant to the sustainability topics covered in the report. G4-7 Report the nature of ownership and ● PwC China, PwC Hong Kong and PwC Macau are made up of a legal form. number of separate legal entities, subsidiaries and joint ventures, all of which have been taken into consideration for this report. G4-8 Report the markets served (including ● We provide a broad range of business, government and private geographical breakdowns, sectors clients with the professional service they need, wherever they may served, and types of customers be located. Our highly qualified, experienced professionals listen to and beneficiaries). different points of view to help organisations solve their business issues and identify and maximise the opportunities they seek. Our industry specialisation allows us to help co-create solutions with our clients for their sector of interest. Industries we serve include asset management, automotive, banking & capital markets, communications, energy, utilities & mining, engineering & construction, entertainment & media, financial services, food supply & integrity, government & public services, healthcare, industrial products, insurance, pharmaceuticals, private equity, real estate, retail & consumer, technology, transportation & logistics. G4-9 Report the scale of organisation. ● Collectively, we have around 540 partners and 12,800 people in total based in our office locations listed above. Our combined revenues for PwC China and Hong Kong are considered commercially and competitively sensitive and have not been disclosed for this reason. Aggregated revenues for PwC firms globally and regionally are available in our PwC Global Annual Review 2015.
Corporate Responsibility 37 GRI Index Indicator description Reported Cross-reference or direct response G4-10 A. Report the total number of ● A. Permanent vs fixed term contract employee headcount by employees by employment contract gender (China, Hong Kong and Macau) as at 30 June 2015 and gender Male Female Total B. Report the total number of Permanent 4,472 8,136 12,608 permanent employees by employment type and gender. Fixed term 92 88 180 C. Report the total workforce by B. Full-time vs part-time employee headcount by gender employees and supervised workers (China, Hong Kong and Macau) as at 30 June 2015 and by gender. D. Report the total workforce by region Male Female Total and gender. Fulltime 4,559 8,196 12,775 E. Report whether a substantial portion Part time 5 28 33 of the organisation’s work is performed by workers who are legally C. Employee vs supervised worker headcount by gender recognized as self-employed, or by (China, Hong Kong and Macau) as at 30 June 2015 individuals other than employees or supervised workers, including Male Female Total employees and supervised Employees 4,564 8,224 12,788 employees of contractors. supervised 351 418 769 workers F. Report any significant variations in employment numbers (such as seasonal variations in employment in D. Total workforce headcount by region and gender as at 30 the tourism or agricultural industries). June 2015
City Male Female Beijing 949 2231 Chengdu 62 363 Chongqing 38 37 Dalian 25 89 Guangzhou 231 454 Hangzhou 11 31 Hong Kong 1527 1976 Macau 13 33 Nanjing 13 26 Ningbo 9 19 Qingdao 41 99 Shanghai 1323 2161 Shenyang 1 2 Shenzhen 204 424 Suzhou 19 53 Tianjin 58 133 Wuhan 17 24 Xiamen 11 24 Xi’an 12 45 Total 4564 8224
E. Little to no work is performed by workers who are legally recognised as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. F. During September and October of each year, a relatively high number of new joiners commence employment with PwC, most of whom are university graduates. This yearly seasonal fluctuation in our workforce is due to extensive graduate recruitment programmes aimed at attracting the best and brightest talent to PwC.
38 PwC GRI Index Indicator description Reported Cross-reference or direct response G4-11 Report the percentage of total ● PwC employees are not covered by collective bargaining employees covered by collective agreements in China, Hong Kong or Macau. Although collective bargaining agreements. bargaining is increasing in general in these markets, collective contracts frequently ensure the employees receive appropriate payment and benefits, such as minimum legal labour standards. PwC employees on individual employment contracts enjoy conditions well above minimum legal standards and wages commensurate with market rates. G4-12 Describe the organisation’s ● As a service based business, our supply chain is limited and mainly supply chain. relates to leased office premises, utilities, travel, IT solutions and office equipment and supplies. The proportion of spend per procurement category is not materially relevant and this information is deemed confidential. As such, detailed information about our procurement spending pattern is omitted from this report. G4-13 Report any significant changes during ● No significant changes have occurred to the organisation’s size, the reporting period regarding the structure, ownership or its supply chain during the reporting period. organisation’s size, structure, ownership, or its supply chain. Commitments to external initiatives G4-14 Report whether and how the ● We address the precautionary principle by systematically managing precautionary approach or principle is the risks associated with the operation of our own business, as well addressed by the organisation. as understanding the unique risks and opportunities our clients may face in relation to sustainability issues. Our sustainability and climate change services offer a broad range of assurance, advisory and tax solutions to assist our clients with their sustainability concerns. We also share our knowledge and research through timely and relevant thought leadership publications, which aim to increase the level of understanding of a particular issue, stimulate further conversation amongst business and industry, and provide a platform for others to consider how these issues may be addressed. G4-15 List externally developed economic, ● PwC holds a broad range of voluntary memberships and environmental and social charters, associations locally and across the globe. Some examples of our principles, or other initiatives to which most prominent memberships and those related to sustainability the organisation subscribes or which and corporate responsibility issues are shown below. it endorses. Global PwC memberships • UN Global Compact (UNGC) • UNGC CEO Water Mandate • UN HeForShe • The Women’s Forum for the Economy and Society • World Business Council for Sustainable Development (WBCSD) • Global Reporting Initiative (GRI) • St Petersburg International Economic Forum • International Integrated Reporting Council (IIRC) • Asia-Pacific Economic Cooperation (APEC) • World Economic Forum (WEF) • World Water Forum • Consumer Goods Forum • Climate and Development Knowledge Network (CDKN) • Community Business Diversity and Inclusion in Asia Network (DIAN) • World Islamic Economic Forum • The World Bank Private Sector Leaders Forum PwC China and Hong Kong memberships • CSR Asia Strategic Partner • CSR Asia Community Investment Roundtable
Corporate Responsibility 39 GRI Index Indicator description Reported Cross-reference or direct response G4-16 List memberships of associations (such ● Global PwC memberships - strategic as industry associations) and national or • The Women’s Forum for the Economy and Society international advocacy organisations in which the organisation: • St Petersburg International Economic Forum • Holds a position on the • Asia-Pacific Economic Cooperation (APEC) governance body • World Economic Forum (WEF) • Participates in projects or committees • World Islamic Economic Forum • Provides substantive funding beyond routine membership dues • Views membership as strategic Identify material aspects and boundaries G4-17 A. List all entities included in the ● A. A full list of legal entities within the global PwC network, including organisation’s consolidated financial in China, Hong Kong and Macau, can be viewed here: statements or equivalent documents. http://www.pwc.com/gx/en/about/corporate-governance/ legal-entities.html B. Report whether any entity included in the organisation’s consolidated B. All entities listed for China, Hong Kong and Macau are covered financial statements or equivalent by this report. documents is not covered by the report. G4-18 A. Explain the process for defining the ● Materiality assessment report content and the Aspect Boundaries. B. Explain how the organisation has implemented the Reporting Principles for Defining Report Content. G4-19 List all the material Aspects identified in ● Materiality assessment the process for defining report content G4-20 For each material Aspect, report the ● Materiality assessment Aspect Boundary within the organisation, as follows: i. Report whether the Aspect is material within the organisation ii. If the Aspect is not material for all entities within the organisation (as described in G4-17), select one of the following two approaches and report either: • The list of entities or groups of entities included in G4-17 for which the Aspect is not material or • The list of entities or groups of entities included in G4-17 for which the Aspects is material iii. Report any specific limitation regarding the Aspect Boundary within the organisation
40 PwC GRI Index Indicator description Reported Cross-reference or direct response G4-21 For each material Aspect, report the ● Materiality assessment Aspect Boundary outside the organisation, as follows: i. Report whether the Aspect is material outside of the organisation ii. If the Aspect is material outside of the organisation, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified iii. Report any specific limitation regarding the Aspect Boundary outside the organisation G4-22 Report the effect of any restatements of ● Some greenhouse gas emissions information has been restated in information provided in previous reports, this report for the FY2011, FY2012 and FY2013 reporting periods. and the reasons for such restatements. Known process and system defects were corrected in FY2014 to more accurately calculate CO2 and other emissions. Previous year’s data has been recalculated for comparison purposes and restated. G4-23 Report significant changes from ● There have been no significant changes from the previous reporting previous reporting periods in the Scope periods in the Scope and Aspect Boundaries. and Aspect Boundaries. Stakeholder Engagement G4-24 Provide a list of stakeholder groups ● Stakeholder engagement engaged by the organization. G4-25 Report the basis for identification and ● Stakeholder engagement selection of stakeholders with whom to engage. G4-26 Report the organisation’s approach to ● Stakeholder engagement stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. G4-27 Report key topics and concerns that ● Stakeholder engagement have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Report Profile G4-28 Reporting period (such as fiscal or ● This report covers the FY2015 period (1 July 2014 - 30 June 2015) calendar year) for information provided. G4-29 Date of most recent previous report ● Our most recent previous full report was for the FY2013 period (1 (if any). July 2012 - 30 June 2013), while a summary update was provided online only for the FY2014 period (1 July 2013 - 30 June 2014) G4-30 Reporting cycle (such as annual, biennial). ● Annual
G4-31 Provide the contact point for questions ● Callum Douglas, Director, Corporate Responsibility regarding the report or its contents +86 (10) 6533 5772 [email protected]
Corporate Responsibility 41 GRI Index Indicator description Reported Cross-reference or direct response GRI Content Index G4-32 A. Report the ‘in accordance’ option the ● A. This report has been developed following the Global Reporting organisation has chosen Initiative (GRI) and is ‘In Accordance - Core’ with the GRI G4 guidelines. B. Report the GRI Content Index for the chosen option. B. Reported in this GRI Content Index document. C. Report the reference to the External C. No external assurance has been performed over the data Assurance Report, if the report has contained within this report. been externally assured. Assurance G4-33 A. Report the organization’s policy and ● No external assurance has been performed over the data contained current practice with regard to within this report. seeking external assurance for the report. B. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. C. Report the relationship between the organization and the assurance providers. D. Report whether the highest governance body or senior executives are involved in seeking assurance for the organisation’s sustainability report. Governance G4-34 Report the governance structure of the ● Our CR strategy and governance organisation, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. Governance G4-56 Describe the organisation’s values, ● Code of conduct principles, standards and norms of behavior such as codes of conduct and codes of ethics. Environmental Performance Indicators Aspect - Energy G4-EN3 Energy consumption within ● Our performance the organisation. G4-EN4 Energy consumption outside of ● Our performance the organisation. G4-EN5 Energy Intensity ● 1,187 kWh per capita G4-EN6 Reduction of energy consumption ● 12% reduction in energy consumption (kWh) per capita since FY2011 baseline Aspect - Emissions G4-EN15 Direct greenhouse gas (GHG) emissions ● Greenhouse gas emissions (Scope 1) G4-EN16 Energy indirect greenhouse gas (GHG) ● Greenhouse gas emissions emissions (Scope 2) G4-EN17 Other indirect greenhouse gas (GHG) ● Greenhouse gas emissions emissions (Scope 3) G4-EN18 Greenhouse gas (GHG) emissions intensity ● Greenhouse gas emissions
42 PwC GRI Index Indicator description Reported Cross-reference or direct response G4-EN19 Reduction of greenhouse gas ● 15% reduction in greenhouse gas emissions (tCO2-e) per capita (GHG) emissions since FY2011 baseline Aspect - Products and services G4-EN27 Extent of impact mitigation of environmental ● Greenhouse gas emissions impacts of products and services. Aspect - Products and services G4-EN29 Monetary value of significant fines and ● To the best of our knowledge, there was no instance of total number of non-monetary sanctions non-compliance falling within this category. for non-compliance with environmental laws and regulations. Aspect - Transport G4-EN30 Significant environmental impacts of ● Greenhouse gas emissions transporting products and other goods and materials used for the organisation’s operations, and transporting members of the workforce. Social Performance Indicators Labour Practices and Decent Work Aspect - Training and Education ● G4-LA9 Average hours of training per year per Average hours of training by gender employee by gender and by Male 113 employee category. Female 112 Average hours of training by Line of Service Advisory 54 Assurance 149 Tax 63 Internal Firm Services (including Service 39 Delivery Centre) Average hours of training by grade Partners 48 Director / Associate Director (or equivalent) 29 Senior Manager (or equivalent) 49 Manager, Deputy Manager, Assistant Manager 67 (or equivalent) Senior Associate, Senior Consultant (or 107 equivalent) Associate, Consultant, Assistant associate (or 221 equivalent) Secretary, Other 2
G4-LA10 Programs for skills management and ● The following programs are in place: lifelong learning that support the • Funding support for external training or education continued employability of employees and assist them in managing career endings. • Provision of sabbatical periods with guaranteed return to employment through our existing career break program and genesis park program • Intended retirees are tracked and their retirement arrangements are discussed with related leaders, with specific plans and actions in place before they retire. • Retraining and staff redeployment are first considered for those intending to continue working (if made redundant) • Severance pay as regulated by law, with age and years of service both considered as required by law • Assistance on transitioning to a non-working life (eg due to illness, injury or retirement) is available as counselling through HR and through external vendors as part of our Employee Assistance Program
Corporate Responsibility 43 GRI Index Indicator description Reported Cross-reference or direct response G4-LA10 Percentage of employees receiving ● All employees receive regular performance and career development regular performance and career reviews through our comprehensive Performance, Coaching and development reviews per gender. Development framework. Aspect - Diversity and Equal Opportunity G4-LA12 Composition of governance bodies and ● Gender and age composition of governance bodies as at 30 breakdown of employees per category June 2015 according to gender, age group, minority group membership, and other indicators 30-50 yrs over 50 yrs Male Female of diversity. Board of 4 5 9 partners (PwC Ca TSH) Executive 1 7 6 2 Board (PwC Ca TSH) Management 3 9 10 2 Board (PwC China & HK)
Gender composition of employees by grade as at 30 June 2015
Male Female Partner 363 165 Director / Associate Director (or equivalent) 168 163 Senior Manager (or equivalent) 434 588 Manager, Deputy Manager, Assistant 675 1084 Manager (or equivalent) Senior Associate, Senior Consultant (or 1169 2245 equivalent) Associate, Consultant, Assitant Associate (or 1332 2379 equivalent) Secretary, Other (or equivalent) 381 1256
Gender and age composition of employees by Line of Service as at 30 June 2015
Under 30-50 Over Male Female 30 yrs yrs 50 yrs Advisory 817 752 41 731 879 Assurance 5707 1816 94 2728 4889 Tax 1110 754 71 601 1334 IFS 287 797 156 462 778
Society Aspect - Anti-corruption G4-SO04 Communication and training on ● 100% of employees, including all governance body members, anti-corruption policies and procedures. receive regular communications relating to anti-bribery and anti-corruption policies and procedures, as well as compulsory annual training. Information concerning anti-bribery and anti-corruption is also available to all clients and other business partners through external communications channels, and is a standard inclusion in all contracts and agreements. Our forensic accounting services can also provide the tools necessary for clients to implement robust anti-corruption and anti-bribery measures, as well as investigate any concerns they may have about corrupt or fraudulent activities taking place within their organisation.
44 PwC GRI Index Indicator description Reported Cross-reference or direct response Aspect - Compliance G4-SO08 Monetary value of significant fines and total ● To the best of our knowledge, there was no instance of non- number of non-monetary sanctions for compliance falling within this category. non-compliance with laws and regulations. Product Responsibility Aspect - Product and Services Labeling G4-PR5 Results of surveys measuring ● We perform independent face to face client feedback interviews with customer satisfaction. 89 firmwide CNHK priority clients on an annual basis. These interviews targeted at C-Suite focus on the clients’ experience of working with PwC across multiple service areas and are conducted by senior partners who have no direct relationships with the client, to ensure any feedback received is independent. Feedback is then shared with our client relationship partners and their teams, so that they are able to take immediate actions to improve client service levels. In FY2015, we achieved a 10% increase in total feedback coverage compare with FY2014. A key item covered during the interview process is to assess the client’s overall likelihood to recommend PwC to other business associates (i.e. client loyalty index). Our FY2015 score is 8.28 (where a rating of ‘10’ = highly likely to recommend and ‘0’ = highly unlikely to recommend). We continue to extend and deepen our reach across our client portfolio through online surveys. Online surveys complement face to face feedback interviews by obtaining perspectives from a broader range of clients and their representatives including middle management and key client representatives based overseas. In FY2015, 240 online surveys were conducted compared to 171 surveys in FY2014. Aspect - Customer Privacy G4-PR8 Total number of substantiated ● To the best of our knowledge, there is no instance of any complaints regarding breaches of substantiated complaints falling under this category. customer privacy and losses of customer data. Aspect - Compliance G4-PR9 Monetary value of significant fines for ● To the best of our knowledge, there is no instance of any significant non-compliance with laws and fines for non-compliance falling under this category. regulations concerning the provision and use of products and services.
Corporate Responsibility 45 www.pwc.com
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
© 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. HK-20160912-4-C11