Corporate Responsibility Report 2017 Corporate Responsibility 2 103 Report 2017 Table of Contents

Foreword 3 Media, Services and Education 55 About this Report 4 Creative Independence 57 Content Responsibility 60 Company Profile 5 Data Protection & Privacy 63 Corporate Management 11 Further Topics 65

Corporate Governance 12 Environment 67 Company Principles 15 Energy and Emissions 71 Risk Management 16 Paper 76 Compliance 17 Additional Environmental Data 79 Protection of Human Rights 17 Anti-corruption and Integrity 19 Society 81 Fair Competition 20 Donations, Sponsorship and Projects 82 CR Management 21 Help through Media and Services 86 Promoting Media Literacy 88 Organization 22 Stakeholder Dialogue 25 Additional Information 89 CR Topics 28 List of Relevant CR Topics 90 CR Risks 31 GRI Content Index 92 Employees 33 Production Credits and Contact 103 Fair Working Conditions 37 Learning 41 Diversity 44 Health 51 ← ← Corporate Responsibility 3 103 Report 2017

Foreword

Bertelsmann showed stronger growth, became At Bertelsmann, everyone is accountable for the more digital, more international and more diversi- implementation of corporate responsibility and fied in 2017. We also made good progress in our the further development of our corporate cul- strategy implementation. As we further develop ture – executives and employees alike. That’s why our company, we are guided by the values that our work focuses on the structures, processes have made Bertelsmann globally successful for and objectives that support the responsible decades. Entrepreneurial spirit and creativity drive actions of every individual. The many initiatives of us. We act in partnership and responsibly – in our our 119,000 employees worldwide are ­decisive, business dealings, and toward our employees, and the only way corporate responsibility can society and the environment. The following pages become part of a practiced corporate culture. explain how we take our responsibility seriously In this report, we explain how we reconcile our every day. economic goals with the social and ecological demands of our stakeholders. We hope you enjoy Sincerely, a stimulating read!

Thomas Rabe Immanuel Hermreck Chairman and Chief Executive Officer of Chief Human Resources Officer of Bertelsmann Bertelsmann PS: Bertelsmann has been contributing to the implementation of the 10 principles of the UN Global Compact for 10 years. This report also presents our annual progress communication.

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Bertelsmann’s corporate responsibility (CR) report- reporting is supplemented with sustainabil- Due to the inclusion of additional companies in Foreword ing has followed the guidelines of the Global Report- ity information on the Bertelsmann corporate data collection, and on the basis of new findings About this Report ing Initiative (GRI), the world’s leading standard for website. from the recent data collection, the presentation of sustainability reporting by international companies the previous year’s environmental data has been Company Profile and organizations, since 2011. This CR report pro- In March 2018, Bertelsmann also published a adjusted. In addition, CO2e factors were retroac- Corporate Management vides information on the basic principles, focus top- Combined Non-Financial Statement as part of tively adjusted for the comparative year 2016. The CR Management ics and measures of CR Management at Bertelsmann its Combined Management Report 2017, which environmental indicators published in this report Group during the 2017 financial year. In individu- complies with the CSR Directive Implementation include all fully consolidated Group units. Data for Employees ally identified cases, the description of management Act ↗Bertelsmann Annual Report 2017, p. 40 – 44. units not participating in the collection was esti- Media, Services and Education approaches and concepts extends to the editorial mated. This approach was also used retrospectively deadline on March 30, 2018. The report’s content Scope of the Report and Data Collection in comparison to 2016, leading to an adjustment in Environment was selected based on a relevance analysis of cor- All fully consolidated subsidiaries were included the previous year’s data. Society porate responsibility topics at Bertelsmann carried in this CR report. You can find a list of these out with in-house and external stakeholders. The ­companies on the ↗Bertelsmann corporate website. Additional Information present sustainability report has been prepared in Deviations from the scope of this report are indi- accordance with the GRI Standards (2016; “Core” cated in the text. option). Bertelsmann’s previous CR Report and the Bertelsmann Carbon Footprint were published In early February, portions of the Arvato ­digital in October 2017. ­Bertelsmann’s GRI reporting marketing business were integrated into the also fulfills its obligation, as a UN Global Compact Bertelsmann Printing Group with retroactive effect signatory, to produce an annual Communication as of January 1, 2017. Data from the financial year GRI Content Index on Progress. The Group’s ­corporate responsibility 2016 have been adjusted accordingly.

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GRI 102-45, 102-48 Corporate Responsibility 5 103 Report 2017 Company Profile

Foreword About this Report As a media, services and education company, Company Profile Bertelsmann stands for entrepreneurship and creativity. Corporate Corporate Structure With eight divisions, the Group operates in about divisions Business Performance 8 Business Model and Value Creation 50 countries around the world.

Corporate Management CR Management Employees Media, Services and Education Environment €17.2 billion billion Society €2.6 Additional Information Group revenues Operating EBITDA

GRI Content Index

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Bertelsmann is a media, services and education Foreword company that operates in about 50 countries around About this Report the world. It includes the broadcaster RTL Group, the trade book publisher Penguin Random House, Company Profile the magazine publisher Gruner + Jahr, the music Corporate Structure company BMG, the service provider Arvato, the Business Performance Bertelsmann Printing Group, the Bertelsmann Business Model and Value Creation ­Education Group and Bertelsmann Investments, Corporate Management an international network of funds. The company had around 119,000 employees and generated CR Management revenues of €17.2 billion in the 2017 financial year. Employees Bertelsmann stands for creativity and entrepreneur- ship. This combination promotes first-class media Media, Services and Education content and innovative service solutions that inspire Environment customers around the world. Society Corporate Structure Additional Information www.bertelsmann.com Bertelsmann owns 75.1 percent of shares in RTL Group and a 75 percent stake in Penguin Random House (previous year: 53 percent). GRI Content Index Gruner + Jahr, BMG, Arvato, the Bertelsmann Printing Group and Bertelsmann Investments You can find an overview of Bertelsmann’s share- ← ← are wholly owned by Bertelsmann. holdings on the ↗Bertelsmann corporate website.

GRI 102-45 Corporate Responsibility Company Profile 7 103 Report 2017

Business Performance

Foreword Revenues by Division in € millions About this Report 2017 2016 (adjusted) Company Profile Germany Other countries Total Germany Other countries Total Corporate Structure RTL Group 2,266 4,107 6,373 2,205 4,032 6,237 Business Performance Penguin Random House 250 3,109 3,359 266 3,095 3,361 Business Model and Value Creation Gruner + Jahr 964 549 1,513 959 621 1,580 BMG 33 474 507 31 385 416 Corporate Management Arvato 1,521 2,302 3,823 1,568 2,195 3,763 CR Management Bertelsmann Printing Group 957 724 1,681 971 738 1,709 Bertelsmann Education Group 1 188 189 – 142 142 Employees Bertelsmann Investments – – – – – – Total divisional revenues 5,992 11,453 17,445 6,000 11,208 17,208 Media, Services and Education Corporate/Consolidation (152) (103) (255) (142) (116) (258) Environment Continuing operations 5,840 11,350 17,190 5,858 11,092 16,950 Society Additional Information Bertelsmann’s geographic core markets are West- Bertelsmann is striving for a faster-growing, more market-entry barriers, and ­scalability. The educa- ern Europe – especially Germany, France and digital, more international, and more diversified tion business is gradually developed into the third the United Kingdom – and the United States. portfolio. The businesses Bertelsmann invests in earnings pillar alongside media and services. The GRI Content Index Bertelsmann is also strengthening its involvement should have long-term stable growth, global reach, Group strategy comprises four strategic­ priorities: in growth markets such as China, India and Brazil. stable and protectable business models, high strengthening the core businesses, driving the ← ← Corporate Responsibility Company Profile 8 103 Report 2017

Foreword Consolidated Revenues by Region in percent Revenues by Category in percent About this Report Company Profile 6.6 (PY: 6.7) 34.0 (PY: 34.6) 35.3 (PY: 34.0) 13.8 (PY: 13.0) Other countries Germany Services Rights and licenses Corporate Structure Business Performance 25.2 (PY: 27.1) 20.5 (PY: 20.8) Own products and Business Model and Value Creation United States merchandise Corporate Management 13.4 (PY: 13.2) France CR Management 18.7 (PY: 18.3) 6.8 (PY: 6.4) 25.7 (PY: 25.9) Other European countries United Kingdom Advertising Employees Media, Services and Education Environment Society digital transformation forward, developing growth Ediciones B, the publishing business of Spain’s Additional Information platforms, and expansion into growth regions. In Grupo Zeta media group; RTL Group bought up the 2017, the following acquisitions represented major remaining shares in SpotX Inc., further expanding steps in executing the strategy: BMG took over its ad-tech business; and Bertelsmann increased the BBR Music Group; Penguin Random House its stake in Penguin Random House to a ­strategic GRI Content Index strengthened its publishing businesses in three-­quarters majority by ­taking over another Spain and Latin America with the acquisition of 22 percent of shares from ­Pearson. ← ← Corporate Responsibility Company Profile 9 103 Report 2017

Business Model and Value Creation

Bertelsmann’s origins lie in the media industry. by the diversity of the content they produce and brochures – using offset, gravure and digital print- Foreword Today the company is active in three lines of busi- distribute, good networks of creative talent and ing presses by third-party manufacturers. The most About this Report ness: media, services and education. Digitaliza- content producers are a key success factor. important raw material used in the CD, DVD and tion plays a central role in the strategic direction Blu-ray replication business is polycarbonate. Company Profile of the company as a driver of new trends, through Services: Companies from a wide variety of Corporate Structure innovations in production technology, changes industries rely on Bertelsmann’s portfolio of solu- Education: With its digital education and range Business Performance in media consumption and the way people learn. tions, including telecommunication providers, of services focusing on the health and technology Business Model and Value Creation Bertelsmann has a widely ramified supply chain energy suppliers, banks and insurance compa- sectors, Bertelsmann is shaping work-related Corporate Management with only a few main suppliers, including paper and nies, as well as e-commerce, IT and Internet pro- learning in the 21st century. The business models energy suppliers. Most of the services it purchases viders. At the core of this segment are services in the education segment are based first foremost CR Management are creative or other services rendered by humans. Bertelsmann delivers to the end customers of its on the combined deployment of highly qualified Employees clients (“B2B2C services”). Typical support services employees and innovative technology. Media: Bertelsmann’s media businesses are based include CRM solutions, marketing, IT logistics and Media, Services and Education on the production or acquisition of high-quality financial services. These services combine a variety Environment information and entertainment content – the basis of resources: staff resources, technology, and the for creating audiovisual formats, books, maga- use of natural resources in the form of energy and Society zines, music products, and online services. With materials. While hardware and standard software Additional Information the exception of books and music, these products are sourced from third-party suppliers, software contain advertising as well as editorial content – an solutions for specialized applications are also devel- important source of financing beyond the revenues oped in-house. In its print operations, Bertelsmann from sales and distribution. All these products are processes materials like paper and ink to produce GRI Content Index distributed physically or digitally, directly or through media and advertising products for business cus- service providers. Because media businesses live tomers – typically books, catalogs, magazines and ← ← Corporate Responsibility Company Profile 10 103 Report 2017

Broadcast

Content procurement Distribution and Aggregation Audience and production monetisation

Foreword Content Reach About this Report Commercials for ­Products Company Profile Advertising ­ and Services revenue Corporate Structure Business Performance TV Channels and Business Model and Value Creation Video on-demand Technical Access Corporate Management Platform ­ to content revenue CR Management Employees Generic broadcast value chain Media, Services and Education Environment Example: TV Broadcasting RTL Group. The goal is to offer content wherever the develop and structure their program lineup with Society RTL Group is a leader across broadcast, content audience wants to watch it – on various platforms a wide variety of genre formats (including news, Additional Information and digital, with interests in 57 television chan- and devices. With operations in 30 countries, the entertainment shows, fictional series, reality TV for- nels and 30 radio stations, content production global network of Fremantle Media is responsible mats and live sports broadcasts) to shape their chan- companies around the world, and rapidly growing for more than 12,500 hours of programming a year nel brand identities. Their main source of income is digital video businesses. The production, aggrega- and distributes over 20,000 hours of content world- the sale of advertising airtime. GRI Content Index tion, distribution and monetization of profession- wide. In addition, RTL Group’s families of channels ally produced video content is the core business of produce or commission local content. The channels ← ← ← Corporate Responsibility 11 103 Report 2017 Corporate Management

Foreword About this Report In line with the recommendations of Company Profile the German Corporate Governance Code, Corporate Management Bertelsmann stands for responsible Corporate Governance corporate governance. Shared values Company Principles Risk Management and principles guide the Group’s 100% Compliance business conduct. familiy- and foundation-owned shares CR Management Employees Media, Services and Education female Environment nationalities on the Society executive board Additional Information 6 Supervisory board 1 of 5 members GRI Content Index

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In addition to all applicable legal regulations, Legal Form and Statutory Bodies objectives, setting the strategic direction of the Foreword Bertelsmann’s corporate management is based Bertelsmann’s legal form is that of a partner- Group, developing management, and conduct- About this Report on the recommendations of the German Corporate ship limited by shares (KGaA). The statutory ing corporate planning and financing. The Exec- Governance Code, which sets internationally and bodies of Bertelsmann SE & Co. KGaA are the utive Board provides the respective Supervisory Company Profile nationally recognized standards of good and General Meeting, the Supervisory Board and Boards with regular, prompt and comprehensive Corporate Management responsible corporate governance. Bertelsmann ­Management SE as a general ­partner. reports on all matters relevant to business devel-

Corporate Governance Bertelsmann SE & Co. KGaA and Bertelsmann opment and strategy implementation, planning, Company Principles Corporate Governance Management SE each have their own ­Supervisory financial and earnings position, the risk situation, Risk Management Boards. The duties and responsibilities of the indi- and risk management. This ensures compliance Compliance The German Corporate Governance Code in the vidual bodies are clearly defined in each case and with the provisions of law and corporate guide- version dated February 7, 2017, sets out key statu- are strictly separated from each other. Simultaneous lines within the Group. CR Management tory requirements concerning the management and membership on the Executive Board of Bertelsmann Employees monitoring of German listed companies and con- Management SE on the one hand, and on the The members of the Executive Board bear joint tains relevant standards for good and responsible ­Supervisory Board of Bertelsmann ­Management SE responsibility for overall management. Matters Media, Services and Education corporate management. Its recommendations and or the Supervisory Board of Bertelsmann SE & of fundamental significance and matters con- Environment suggestions, in addition to the applicable provisions Co. KGaA on the other, is not permissible. cerning the spheres of responsibility of a num- of law, form the basis for corporate governance ber of Executive Board members are addressed Society at Bertelsmann. Bertelsmann SE & Co. KGaA is a Responsibilities and Committees by the overall Executive Board. Notwithstand- Additional Information capitalmarket-oriented company but is unlisted. The general partner, Bertelsmann Management SE, ing this overall responsibility, the individual It is not, therefore, subject to the statutory requirement represented by its Executive Board, is respon- members of the Executive Board manage their to issue a formal declaration of compliance as per sible for independently managing the company. departments as part of the duties stipulated by GRI Content Index section 161 of the German Stock Corporation Act. The duties consist of determining the corporate the overall Executive Board.

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In addition, the Executive Board has established Foreword Shareholder Structure the Group Management Committee (GMC), which About this Report advises the board on important corporate strategy and development matters and other issues that Company Profile Executive Board affect the Group. The GMC, which had 16 members Corporate Management in 2017, is comprised of all members of the Executive Bertelsmann Management SE Corporate Governance Board, as well as executives who represent key (General partner) Company Principles businesses, countries, regions, or selected Group- wide functions. 19.1% Risk Management The Mohn Family Compliance Capital In the 2017 financial year, women comprised CR Management one-fifth of the Executive Board (20 percent, Bertelsmann 100% Verwaltungs- ­previous year: 17 percent) and 33 percent (pre- Management Employees Voting rights gesellschaft vious year: 31 percent) of the GMC. The average (BVG) Media, Services and Education age of Executive Board members was 50 years Foundations 80.9% Environment (previous year: 50 years), and the average age of (Bertelsmann Stiftung, the GMC members was 54 years (previous year: Reinhard Mohn Stiftung, Capital Society BVG Stiftung) 53 years). The Executive Board members have Additional Information worked for the Group for an average of 18 years Bertelsmann SE & Co. KGaA (previous year: 17 years) and have served on the Executive Board for an average of 6 years (previ- GRI Content Index ous year: 4 years). All members of the Executive

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Board were German (previous year: one non-­ The Supervisory Board of Bertelsmann Manage- Board members were German; 36 percent (previous Foreword German member), and 27 percent of the GMC was ment SE has formed an HR Committee and a year: 33 percent) were non-German. About this Report non-German (previous year: 31 percent). ­Program Committee, and the Supervisory Board of Bertelsmann SE & Co. KGaA has formed an Audit Company Profile Tasks and Decision-making Processes and Finance Committee and a Working Group of Corporate Management The Supervisory Board of Bertelsmann SE & Employee and Management Representatives. The

Corporate Governance Co. KGaA supervises the management of the Audit and Finance Committee of the Supervisory Company Principles business by the Bertelsmann Management SE Board of Bertelsmann SE & Co. KGaA addresses, Risk Management and uses its extensive information and control among other things, the accounting process and the Compliance rights for this purpose. In addition, the Supervi- effectiveness of the risk monitoring and risk man- sory Boards advise the Executive Board on stra- agement system, the internal control system, and CR Management tegic matters and significant transactions. The the internal auditing system. It also addresses mat- Employees Executive Board and Supervisory Board work ters of compliance, in particular the effectiveness in close, trusting cooperation and are there- and proper functioning of the compliance organiza- Media, Services and Education fore able to reconcile the demands of effective tion and related topics of integrity within the Group, Environment corporate governance with the need for rapid and reviews the non-financial reporting. decision making. Fundamental matters of the Society corporate strategy and its implementation are In the 2017 financial year, women comprised Additional Information discussed openly and voted on in joint sessions. 21 percent (previous year: 20 percent) of the Super- The shareholders of Bertelsmann SE & Co. KGaA visory Board. The average age of Supervisory Board and Bertelsmann Management SE exercise their members was 57 (previous year: 58), and 64 per- GRI Content Index rights and vote at the respective General Meetings. cent (previous year: 67 percent) of the Supervisory

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Company Principles

As stated in the corporate constitution, among the In addition, Bertelsmann has defined a Sense of The company principles are Foreword prerequisites for a corporate culture in which Purpose. Expressed in the triad “To Empower. available for download: About this Report ­employees, management and shareholders work To Create. To Inspire.” it provides orientation for together successfully, respectfully and in a spirit of the Group’s staff and partners. ↗Bertelsmann Essentials Company Profile trust, are common goals and shared values – which ↗Bertelsmann Code of Conduct Corporate Management are summed up in the Bertelsmann Essentials: part- Bertelsmann supports the nership, entrepreneurship, creativity and corporate Corporate Governance UN Global Compact: Company Principles citizenship. To ensure that they reflect the changes in our company, its businesses and their environ- Risk Management ↗The 10 Principles of the UN Global Compact Compliance ments, the Bertelsmann Essentials are ­subject to critical review and development. A ­revision pro- CR Management cess was initiated in 2017. Employees The Bertelsmann Code of Conduct, a binding Media, Services and Education guideline for law-abiding and ethically responsible Environment conduct in the company, defines standards for responsible conduct toward business partners and Society the public, as well for interpersonal conduct within Additional Information the company. Everyone in the company – including the Executive Board and the Supervisory Board – is obliged to adhere to the principles stipulated in it GRI Content Index →Compliance, p. 17.

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Risk Management

As a global corporation, Bertelsmann is exposed to significant risks year by year, from the profit ­center Foreword a large number of risks, including legal and regu- level upward. The risks are compared to risk man- About this Report latory risks. The company has set up a risk man- agement and control measures to determine the agement system (RMS) for the early identification, net risk position. Both one- and three-year risk Company Profile evaluation of, and handling of internal and exter- assessment horizons are applied to enable the Corporate Management nal risks. Its aim is to identify material risks to the timely implementation of risk response measures.

Corporate Governance Group in good time, so that countermeasures can Risk assessment is the product of the estimated Company Principles be taken and the risk can be monitored. Risks are negative impact on Group free cash flow should the Risk Management defined as possible future developments or events risk occur and the estimated probability of occur- Compliance that could lead to a negative economic forecast rence. The RMS, along with its component, the or target deviation for Bertelsmann. In addition, internal control system, is constantly undergoing CR Management risks can negatively affect the achievement of the further development and is integrated into ongoing Employees Group’s strategic, operational, reporting and com- reporting to the Bertelsmann Executive Board and pliance-related objectives, and its reputation. Supervisory Board. Corporate and Divisional Risk Media, Services and Education Management Committee meetings are convened Environment The risk management process is based on the inter- at regular intervals to ensure compliance with nationally accepted frameworks of the ­Committee ­statutory and internal requirements. Society of Sponsoring Organizations of the Treadway Com- Additional Information mission (COSO) and is organized in subprocesses For a review of CR risks, see →CR Risks, p. 31. of identification, assessment, response, ­control, communication and monitoring. A major element GRI Content Index of risk identification is a risk inventory that lists

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Compliance

To avoid violations of laws and regulations, At Bertelsmann employees, business partners and Foreword Reporting Channels for Suspected directives, and company guidelines, the third parties always have the opportunity to ask Misconduct About this Report Bertelsmann Executive Board created a com- questions; to use confidential and secure channels pliance organization. It appointed a Corporate to express concerns about possible misconduct; Company Profile Compliance Committee (CCC) and established an and to make suggestions for improving compliance Corporate Management ­Integrity & Compliance program. The ­Integrity & processes. Contact points include the Integrity & ­Compliance department is subordinated to the Compliance department, an online whistleblowing Corporate Governance Discuss locally Contact the Corporate Center Company Principles CCC and advises and supports it. The head of system ↗www.reportconcerns.com and external Risk Management the ­Integrity & Compliance department reports ombudspersons appointed by Bertelsmann. All Compliance to the head of the Corporate Legal Department reports submitted are being investigated to ensure and Chair of the CCC. The latter, in turn, reports adequate response to compliance violations. CR Management to the Chairman and CEO of Bertelsmann, who is Employees responsible for matters of compliance within the Protection of Human Rights Use the Internet-based Consult the Executive Board. This organization reflects the Bertelsmann has declared the protection of human system Ombudsperson Media, Services and Education relevant standards for compliance management rights within the company and in the supply chain to Environment systems that contribute toward mitigating risks be a priority. Bertelsmann is committed to the prin- in various ways. Its basic elements include the ciples of the Universal Declaration of Human Rights Bertelsmann sets binding human rights standards Society Bertelsmann Code of Conduct, the ↗Bertelsmann and the United Nations Global Compact, the United in the company as well as in the global supply Additional Information Supplier Code of Conduct, the compliance guide- Nations Guiding Principles on Business and Human chain, which must be adhered to by all employees lines, risk analysis, consultation, communication Rights, and the International Labor Organization (ILO) and business partners. Key corporate guidelines and training measures, whistleblowing systems, core labor standards. Ensuring fair working conditions that address the issue of human rights and codify GRI Content Index and case management. is an integral part of Bertelsmann’s corporate culture. these standards are:

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>> The Bertelsmann Code of Conduct is the their contract with Bertelsmann. In the event Foreword “We respect the dignity and guideline for legal and ethical conduct. It is of breaches of the Supplier Code of Conduct, individual rights of employees About this Report binding for every employee worldwide, within Bertelsmann reserves the right to make appro- the company and toward business partners priate responses corresponding to the severity and third parties with whom Company Profile and the general public. Everyone in the com- of the breach, which may include contract ter- we have business relations.“ Corporate Management pany – employees, the Executive Board and mination. Bertelsmann Code of Conduct Corporate Governance Supervisory Board – is obliged to adhere to the >> The Executive Board Guideline on Anti- Company Principles principles stipulated in it. The Code of ­Conduct corruption & Integrity mandates an appro- Risk Management is not only a guide to appropriate decision priate due diligence process when selecting Compliance ­making, but also provides information about business partners, and the incorporation of the the options for seeking advice in the company, Bertelsmann Supplier Code of Conduct into all CR Management and for confidentially and securely expressing contracts with third parties. It also requires an Employees concerns about possible misconduct. appropriate monitoring of third parties for the >> The Bertelsmann Supplier Code of Conduct term of the contract. Media, Services and Education obligates business partners that work for, with association and the right to engage in col- Environment or on behalf of Bertelsmann to observe mini- In the following, several specific human rights lective bargaining, in accordance with appli- mum compliance and ethics standards that cor- issues are discussed, mainly in connection cable laws and regulations, for employees of Society respond to the Bertelsmann Code of Conduct. with safeguarding of fair working conditions Bertelsmann companies as well as those of busi- Additional Information Bertelsmann also requires its business part- →Fair Working Conditions, p. 37. ness partners. At Bertelsmann violations of this ners to pass these minimum requirements principle may be reported via the aforementioned along their own value chain to any third par- The Code of Conduct and the Supplier Code whistleblowing channels, both by employees and GRI Content Index ties they may use (subcontractors, etc.) to fulfill of Conduct­ reaffirm the right to freedom of by third ­parties.

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GRI 102-41 Corporate Responsibility Corporate Management 19 103 Report 2017

Bertelsmann does not tolerate child and forced intranet. In an international context, the topic of Bertelsmann complies with all applicable national Foreword labor, and expects its business partners to share antidiscrimination was addressed in a Group-wide and international anti-corruption regulations. Brib- About this Report this position. The Code of Conduct and the ­Supplier e-learning designed to build employee awareness ery and corruption, as well as conduct that could Code of Conduct contain accordingly explicit of the issue and advise them of their rights. harm the company’s assets or those of business Company Profile prohibitions. In addition, individual Bertelsmann partners or third parties, is strictly prohibited. Corporate Management Group companies as well as Bertelsmann itself Anti-corruption and Integrity

Corporate Governance have issued statements in accordance with the Corruption and bribery hinder the development One of the 10 principles of the United Nations Company Principles UK ­Modern Slavery Act that condemn all forms of of the economy, deter investors and contribute Global Compact, which Bertelsmann has sup- Risk Management modern slavery, coercive and child labor, exploita- to the persistence of poverty in many countries. ported as a signatory since 2008 →Guidelines and Compliance tion, and discrimination, and present measures to For this reason, many countries have tightened ­Partnerships, p. 24, is decisive action against cor- prevent these human rights violations. their anti-corruption laws in recent years. In the ruption. By reporting in accordance with GRI, CR Management event of infringement, executives and employees, Bertelsmann also fulfills its obligation to state, Employees The Code of Conduct and the Supplier Code of as well as the company itself, may face consider- in an annual ­Communication on Progress, what Conduct contain a clear prohibition of discrimina- able consequences under criminal and civil law, anti-corruption measures were taken →About this Media, Services and Education tion and intimidation. In addition to the aforemen- such as imprisonment, fines, confiscation of prof- Report, p. 4. Environment tioned reporting channels, AGG contact persons its, exclusion from tendering procedures and the have been appointed at all German locations. revocation of permits. Business customers are Both the Bertelsmann Code of Conduct and the Society Employees can contact them in the event of sus- also increasingly demanding evidence of ­effective Bertelsmann guidelines expressly prohibit all forms Additional Information pected breaches of Germany’s General Equal Treat- anti-corruption compliance measures as a pre­ of corruption and bribery. This prohibition also ment Act (AGG). Employees are informed about requisite for cooperation. Responsible manage- applies to all third parties that work for, with or on their rights under the AGG by means of brochures, ment must therefore also include measures to behalf of Bertelsmann, as stipulated in the Supplier GRI Content Index posters and information provided on the company prevent corruption. Code of Conduct.

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The Executive Board Guideline on Anti-corruption &­ The topic of corruption prevention is globally The quantitative survey of and reporting on Foreword Integrity specifies detailed principles and rules managed and further developed by the Integrity & e-learning training measures on anti-corruption About this Report of conduct for complying with applicable reg- Compliance department. will be continued in 2018. ulations. Along with instructions for dealing Company Profile with officials, and guidelines for the granting or Major anti-corruption results in 2017 included: Fair Competition Corporate Management accepting of gifts in the context of business rela- Bertelsmann is committed to the principle of fair

Corporate Governance tions, it prescribes appropriate due diligence >> Advising executives and employees on the competition and condemns antitrust violations Company Principles processes in dealing with third parties. It also subject of anti-corruption; and anti-competitive behavior. The company takes Risk Management describes the reporting channels for suspected >> Adoption of the revised Executive Board Guide- action against any contravention. An extensive Compliance violations and seeking advice, as well as other line on Anti-Corruption & Integrity; training program (face-to-face training, online train- prevention and control measures. The Bertelsmann >> Training on anti-corruption & integrity for ing for refresher courses) is designed to prevent CR Management Supplier Code of Conduct requires Bertelsmann managers and employees covered by the antitrust violations. Employees business partners that work for, with or on behalf nomination criteria, by means of a new of the company to comply with the same strict e-learning; Media, Services and Education anti-corruption rules. The Executive Board Guide- >> Establishment of an obligation by local man- Environment line for dealing with alleged compliance viola- agement to communicate the respective tions anchors an obligation to report suspected guidelines; Society violations of the prohibition against corruption to >> Processing reports of suspected violations Additional Information the Bertelsmann Corporate Center. In addition, related to anti-corruption; an Executive Board Guideline on the compliance >> Reporting of measures taken as well as organization and the role of compliance officers case ­indicators to the Executive Board and GRI Content Index was adopted in 2017. ­Supervisory Board in the Compliance Report.

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Foreword About this Report Thematic focuses, stakeholder dialogue and Company Profile cross-divisional networks are the defining hall- Corporate Management marks of Bertelsmann’s Corporate Responsibility CR focus CR Management Management. topics Organization 13 Stakeholder Dialogue CR Topics CR Risks Employees internal and Media, Services and Education 10 Environment external years of being Society stakeholders a signatory to Additional Information interviewed the UN Global >150 Compact GRI Content Index

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Responsible conduct – in business, toward developing objectives in selected areas, and imple- Communications and employee representations. Foreword employees, in society and in dealing with the menting the CSR Directive Implementation Act. CR&DM also handles the Group’s CR reporting, its About this Report environment – is firmly anchored in Bertelsmann’s stakeholder dialogue on relevant CR topics, and corporate culture. The Bertelsmann Essentials in-house networking and consulting projects on a Company Profile Organization codify citizenship as a core value for all the com- wide range of CR topics. In the field of Diversity Corporate Management pany’s executives, employees and sharehold- The Bertelsmann CR Council, chaired by the Chief Management, the department works to ensure CR Management ers. In its corporate responsibility management, Human Resources Officer (CHRO), regularly brings diversity-friendly framework conditions, and acts Bertelsmann pursues the goal of reconciling its together senior officers from various corporate divi- as a change agent and support resource for the Organization commercial interests with the social and environ- sions and functions. Together, they work to advance Group’s divisions in promoting employee diversity Stakeholder Dialogue mental concerns of its internal and external stake- the strategic development of CR at Bertelsmann, and →Diversity, p. 44. CR Topics holders. ensure the perspective of the businesses is considered. CR Risks Subject-specific objectives and measures on particu- In the spirit of the decentralized company struc- Employees Strategic Development lar CR topics are frequently developed or prepared by ture that has evolved at Bertelsmann over the Bertelsmann is constantly working on the strate- cross-divisional working groups and networks. decades, the principle of delegating responsibility Media, Services and Education gic evolution of its CR management. The focus is on applies for CR implementation across the Group: Environment transparency regarding relevant CR topics, Group- At the Group level, the Corporate Responsibility & Because Bertelsmann’s local Managing Directors wide CR objectives, dialogue with relevant stake- Diversity Management (CR&DM) department, a cen- know their businesses and the social and ecolog- Society holders, and coordination and collaboration across tral staff function of the HR executive portfolio, coor- ical environment they operate in best, specific CR Additional Information the Group’s divisions. In 2017, the spotlight was on dinates and supports the work of the CR Council. measures and projects are locally implemented. further developing CR management approaches It does so in close cooperation with other Group Bertelsmann’s corporate divisions and companies and performance indicators, a relevance analy- functions such as Reporting, Risk Management, have their own structures and processes in place GRI Content Index sis involving internal and external stakeholders, Investor Relations, Legal, Integrity & Compliance, for this, in accordance with local requirements.

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Bertelsmann Corporate Responsibility Organization

Foreword Group Executive Board About this Report CEO Company Profile CHRO CFO Operational CEOs

Corporate Management Group Management Committee Preparation of Decisions CR Management Executive Board and Senior Executive Advisory Body Organization CR Council Stakeholder Dialogue Lead: CHRO Decisions CR Topics Divisional and Board Staff CR Risks Representative Advisory Board

Employees Recommendations Communication of Decisions Information Report Information Media, Services and Education Board Staff: Corporate Responsibility & Diversity Management Environment Development of Strategies and Measures Society Collaboration and Consultation Collaboration and Implementation Additional Information Corporate Functions e.g., HR, Legal, Investor Relations, Reporting, Divisions/Businesses GRI Content Index Communications, Employee Representations

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Guidelines and Partnerships of econsense, the German business sector’s Foreword Ratings and Rankings (selection) Bertelsmann has been a signatory of the United forum for sustainable development, since 2015. About this Report Nations Global Compact since 2008 and supports Bertelsmann is also active at the Group and divi- Corporate Score C+ (Prime) the Sustainable Development Goals (SDGs) of the sional level in the international Responsible Media Responsibility Company Profile Prime Oekom research CR Rating United Nations. Thus, the company commits to the Forum network. An overview of all member- rated by Media Sector Corporate Management objective of working with its ­employees, customers ships and collaborations is available online on the 2018 CR Management and suppliers to promote ongoing and sustainable ↗Bertelsmann corporate website. progress in the areas of labor standards, human Silver Organization rights, environmental protection and anti-­corruption Ratings and Rankings (52 out of 100 points) Stakeholder Dialogue measures. This report serves as the Communica- Bertelsmann participates in relevant non-financial EcoVadis CSR Rating 2017 CR Topics tion on Progress in which Bertelsmann reports ratings and rankings where its management of CR Risks on the measures achieved and planned in these non-financial matters is evaluated by third parties. action areas. Since 2011, the Group has based its In 2017, the company received, among others, a Average Performer Employees (59 out of 100 points) Corporate Responsibility reporting on the currently ­silver rating from ecovadis. Bertelsmann achieved Media, Services and Education Sustainalytics ESG Rating valid international guidelines issued by the Global “Prime ­status” in oekom’s Corporate Rating dated 2018 Environment Reporting Initiative (GRI) and has been reporting ­January 2018. in accordance with the GRI Reporting Standards Society Score C- (“GRI Standards 2016”) since 2017. (Above Program Average) Additional Information DISCLOSURE INSIGHT ACTION Carbon Disclosure Project In addition to numerous strategic partnerships Supply Chain Program and collaborations at the Group, divisional and 2017 GRI Content Index company level, Bertelsmann has been a member

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Stakeholder Dialogue

Through its business operations and other activi- Foreword Stakeholders at a Glance ties, Bertelsmann is in active and direct contact About this Report with people inside and outside the company: NGOs employees and their representatives, custom- Media Company Profile Competitors ers, suppliers, journalists, investors, political deci- Science Shareholders Corporate Management sion makers, and representatives of governmental and non-governmental organizations (NGOs) and Policymakers and regulatory authorities CR Management Employees associations. Organization International organizations CR ratings and certification agencies Stakeholder Dialogue Bertelsmann prioritizes dialogue with stakehold- CR Topics ers who have a strong influence on the company’s Business partners Media users and customers CR Risks business, social or environmental performance, Culture and the arts Capital market Employees or on the regulatory framework that governs its Applicants activities. The Group also seeks exchange with Society Media, Services and Education stakeholders who are significantly affected by its Environment economic, social or ecological performance. Society Interaction with External Stakeholders the Annual Press Conference on year-end results, transparency toward the capital market is of great Additional Information In its day-to-day business, Bertelsmann is in regular the communications accompanying the publica- importance for the company’s financial security contact with journalists, investors and customers tion of half-year and quarterly figures represent and independence. The Combined Non-Financial through its press offices, investor relations depart- proven formats for contact with media, journalists Statement published in 2018 was the first time GRI Content Index ment and service centers. Beyond daily press inter- and investors. Because capital market financing is that CR topics were reported in the Combined action and the many events Bertelsmann organizes, a major element in the Group’s financing strategy, Management Report for the 2017 financial year. ← ←

GRI 102-40, 102-42, 102-43 Corporate Responsibility CR Management 26 103 Report 2017

In addition, a structured survey of external stake- information. Positions are developed by in-house Foreword “We maintain proper and holders was conducted in 2017 to advance the working groups and through association and other About this Report strategic development of CR at Bertelsmann. organizational memberships, taking into account legally irreproachable external expertise. Company Profile relations with all government Since 2008, Bertelsmann has sought contact with Corporate Management young talent, especially among students world- In addition to functioning as a discussion forum, regulators and agencies.” wide, through the careers event, ↗Talent Meets think tank, database and committee of experts, CR Management Bertelsmann Code of Conduct Bertelsmann, where senior Bertelsmann represen- Bertelsmann’s liaison offices in Brussels and Berlin, Organization tatives discuss entrepreneurial challenges with out- and the divisional public affairs officers, introduce Stakeholder Dialogue standing students. policymakers to the Group’s various business mod- CR Topics els in the media, services and education sectors. CR Risks Dialogue with Policymakers Their activities include presenting Bertelsmann’s Employees The creative industry is an engine for economic digital businesses and the international media growth and jobs. To ensure the continuation of group’s cultural activities in its core markets. Media, Services and Education investment in high-quality creative and professional Environment content, Bertelsmann’s political lobbying efforts Bertelsmann SE & Co. KGaA is registered in the include championing strong copyright protection Transparency Register of the European Union and Society and a convergent media order in the digital age. is a signatory to its Code of Conduct. Additional Information Bertelsmann’s public affairs managers offer polit- Bertelsmann does not donate to political parties ical decision-makers access to expert dialogue →Donations, Sponsorship and Projects, p. 82. GRI Content Index partners within the Group, communicate the latest positions and facts, and provide helpful ← ←

GRI 102-43 Corporate Responsibility CR Management 27 103 Report 2017

Internal Dialogue Foreword Formats for Stakeholder Dialogue (selection) With regard to the Group’s internal stakeholder About this Report dialogue on corporate responsibility, the com- pany identifies relevant stakeholder groups – for Company Profile example, for helping determine Group-wide CR Corporate Management focus topics – based on the criteria of balance CR Management and diversity. Representatives from top manage- ment, administrative departments, and the oper- Organization ative businesses are involved, as are employee Stakeholder Dialogue representatives. Care is taken to ensure diversity CR Topics regarding management level, internationality, age Information Dialogue Surveys CR Risks and gender. > Group reporting, press relations > Talks with employees and > Bertelsmann Employee Employees > Response to requests from cus- in teams Survey Information on the various dialogue formats tomers, public authorities and > Customer service > Customer surveys Media, Services and Education the company regularly carries out to promote rating agencies > Association work > Stakeholder surveys > Conferences, panel discussions exchange with employees and their representa- Environment and workshops with science, tives can be found under →Employees, p. 33. academia, policymakers, etc. Society Additional Information

GRI Content Index

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GRI 102-43 Corporate Responsibility CR Management 28 103 Report 2017

CR Topics

It is particularly important to Bertelsmann to act Overall, 13 CR topics were identified: job security. Protecting employees’ privacy; fair Foreword responsibly wherever its value creation has an payment; and promoting a fair share of ben- About this Report impact on its stakeholders: in the company’s busi- >> Integrity & Compliance: Promoting behavior efits/appropriate participation in the ­company’s ness setting, regarding the quality of its media and consistent with the values and principles stated success. Company Profile services; toward employees; in society and toward in the Essentials and the Code of ­Conduct, >> Creative/Journalistic Independence: Encour- Corporate Management the environment. and building mutually trusting relationships aging creative production and editorial decision-­ CR Management with all employees, customers, business part- making while upholding editorial guidelines and Which CR topics are especially relevant for ners and government agencies, who count on values without interference from media owners; Organization Bertelsmann and its divisions? The 2017 Rel- Bertelsmann as a law-abiding partner. journalistic independence without succumbing to Stakeholder Dialogue evance Analysis involved personal interviews >> Antitrust Compliance: Promoting fair compe- any sort of political or economic influence. CR Topics asking more than 150 representatives from tition and preventing anticompetitive behavior. >> Paper: Sourcing paper from recycled materials CR Risks all relevant external stakeholder groups, as >> Data Protection & Privacy: Ensuring that and sustainably managed forests. Employees well as executives across the Group, for their customers’ confidential and personal informa- >> Intellectual Property & Copyright: Covers assessments of 21 pre-selected CR topics. The tion is handled in a secure and legally compli- topics such as product piracy, copyright, Media, Services and Education external stakeholders evaluated the impact of ant manner. patents, royalty payments, counterfeiting and Environment ­Bertelsmann’s business activities on the ­topics, >> Diversity: Recruiting and retaining a diverse illegal downloading. while the internal stakeholders assessed the workforce and providing equal opportunity to >> Learning: Fostering learning and training to Society business relevance. All external participants were all. Creating an inclusive corporate culture. tackle major entrepreneurial challenges with well- Additional Information interviewed personally using guided interviews. Valuing different perspectives as the basis for trained employees. Strengthening ­employees’ The CR&DM department summarized the results creativity and innovation. innovative capacity. in the new Relevance Matrix, which was then >> Fair Working Conditions: Ensuring decent >> Content Responsibility: Producing and deliver- GRI Content Index adopted by the CR Council. working conditions for employees, including ing an output that is fair and protects the rights

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GRI 102-43, 102-44, 102-46 Corporate Responsibility CR Management 29 103 Report 2017

Bertelsmann CR Relevance Matrix

Relevant CR topics very high 1 Integrity/Compliance Foreword 1 13 5 12 2 Antitrust Compliance About this Report 6 4 2 9 3 Data Protection/Privacy Promotion of Media/ 10 8 21 Supply Chain 3 Digital Literacy 15 11 Company Profile Compliance 4 Diversity Community Investment 17 Access to Content/ 5 Fair Working Conditions 14 Corporate Management Digital Divide 7 Energy/Emissions 19 6 Product Safety/ Creative Independence 18 Responsible CR Management Labeling 16 Water/Waste 20 Marketing 7 Paper Organization 8 Intellectual Property/Copyright Stakeholder Dialogue 9 Learning CR Topics 10 Content Responsibility CR Risks 11 Employee Participation Employees 12 Health Relevance for Stakeholders Relevance for Media, Services and Education 13 Anti-Corruption/Bribery Environment Society Additional Information

GRI Content Index intermediate ← ← ← intermediate Business Relevance very high

GRI 102-44, 102-46 Corporate Responsibility CR Management 30 103 Report 2017

and interests of readers, viewers, listeners and reason, the non-financial performance indicators Foreword users, including minors and other vulnerable are not used for the management of the Group About this Report groups. (cf. section “Value-Oriented Management System”). >> Employee Participation: Involving employees ↗Bertelsmann Annual Report 2017, p. 8. Company Profile through employee representatives, employee Corporate Management surveys, performance reviews, as well as CR Management employee suggestion schemes. >> Health: Providing a secure, safe and healthy Organization environment for all employees. Stakeholder Dialogue >> Anti-Corruption & Bribery: Committing to CR Topics and ensuring processes to prevent all forms of CR Risks corruption. Employees Corporate responsibility topics, including non-­ Media, Services and Education financial performance indicators, are not imme- Environment diately relevant to business and therefore not part of ­Bertelsmann’s value-oriented management Society ­system, which revolves around revenues and oper- Additional Information ating result among other things. Due to the ­current limits of measurability, no directly quantifiable statements can be made on relevant interdepen- GRI Content Index dencies and value increases for the Group. For this

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GRI 102-44 Corporate Responsibility CR Management 31 103 Report 2017

CR Risks

A number of non-financial risks associated with the company’s business activities, business rela- due to lack of training, increased illness, or Foreword CR topics are relevant for Bertelsmann. These risks tionships, or products and services exist but are increased staff turnover. Developments in About this Report can arise from the company’s own business activi- not very likely to have serious impacts. The follow- media and social policy, such as in the area of ties or from its business relationships, and can affect ing risk assessment focuses on these CR risks. press freedom, also contain potential risks for Company Profile the company or its surroundings and stakeholders. Bertelsmann’s businesses. Corporate Management CR Risks for Bertelsmann and its Surroundings >> CR Risks for Bertelsmann’s Surroundings: CR Management As defined in the German CSR Directive Imple- The fulfillment of Bertelsmann’s corporate mentation Act, the major non-financial aspects >> CR Risks for Bertelsmann: CR risks that may responsibility also has an impact on the com- Organization where risks can occur are related to environmen- arise from Bertelsmann as a company include pany’s surroundings, environment and stake- Stakeholder Dialogue tal, employee and social issues, respect for human increasing business customer requirements holders. Working conditions have a direct and CR Topics rights, and the fight against corruption and bribery. stemming from a range of non-financial topics, indirect impact on the well-being of employees, CR Risks For the 2017 reporting, taking all management and the nonfulfillment of which may result in reve- their individual opportunities and their family Employees control measures for these aspects into account, no nue losses. CR issues are increasingly subject environment. Bertelsmann’s business oper- significant risks were identified that are connected to statutory regulations, which can lead to non- ations also have a reciprocal relationship with Media, Services and Education with the business activities, business relationships, compliance penalties linked to loss of trust in the local communities where they operate Environment and products and services, and that are very likely various stakeholder groups. Disruption in busi- and with global society. Corruption, for exam- to have serious negative impacts on these aspects ness processes, such as bottlenecking in the ple, can impede economic development, con- Society ↗Combined Non-financial statement in the Combined procurement of paper or energy, can arise due tribute to the continuation and growth of Additional Information Management Report for the 2017 Financial Year, p. 41. to a resource scarcity. In human resources, risks ­poverty, and reduce the equality of opportu- may arise due to inadequate working conditions, nity. Regarding human rights, Bertelsmann’s Beyond this, however, risks associated with the CR with implications such as decreased employee journalistic conduct, its creative indepen­dence GRI Content Index topics relevant to Bertelsmann and connected with motivation and productivity, inadequate skills and its treatment of data affect the state of

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public information, freedom of opinion, self-­ Foreword determination and democracy. Specific to the About this Report environment, the use of resources such as paper influences the survival, development and Company Profile diversity of ecological systems, and with them, Corporate Management sustainable living conditions. The company con- CR Management tributes to global warming through the direct and indirect emission of greenhouse gases. Organization Stakeholder Dialogue Finally, all risks caused by Bertelsmann – and the CR Topics possible negative impacts on its environment – can CR Risks also cause risks for the company, affecting such Employees factors as reputation, attractiveness as an employer or business partner, litigation, and inclusion in “do Media, Services and Education not source” lists and indexes. Environment The concepts and measures used by Bertelsmann Society to counter these CR risks are described in the fol- Additional Information lowing chapters: →Employees, p. 33, →Media, Services and ­Education, p. 55, →Environment, p. 67 and →Society, p. 81. GRI Content Index

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Foreword About this Report Motivated employees who identify Company Profile with Bertelsmann and its values Corporate Management are the driving force behind CR Management >160 the company’s value, innovation Employees and growth. nationalities in the workforce Fair Working Conditions Learning Diversity Health

Media, Services and Education Environment 54% Society women in the 119,089 Additional Information workforce employees worldwide GRI Content Index

← ← Corporate Responsibility 34 103 Report 2017 Employees

Every day, some 119,000 people in more than ­honors the widely varying social, economic, regula- Foreword Employees by Division headcount 50 countries work to ensure Bertelsmann’s tory and cultural conditions where it operates. About this Report success, growth and continuous development. 2017 12,376 That’s why, for generations, the company has Increasingly today, employees – of all generations – RTL Group 2016 Company Profile 13,150 made responsibility toward its employees a priority. seek greater meaning in their work. To attract the Basis: employees Corporate Management Bertelsmann’s goal is to create a working environ- best talent, employers are expected to have and Penguin 10,615 on permanent ment of partnership for all employees. This aspiration convey a greater “sense of purpose.” Only when Random House 10,594 and temporary CR Management contracts, exclud- is firmly anchored in the core values of the Group’s employees identify with their company and its values 10,551 Gruner + Jahr ing trainees, as of Employees 10,877 corporate culture, the Bertelsmann Essentials. and strategic goals, are they able to actively imple- December 31. Fair Working Conditions ment and ensure that these goals are achieved. 733 BMG Learning Recruiting and Retaining the Best This is especially true in times of change. Follow- 597 Diversity For Bertelsmann, its employees are the key to the ing intensive, worldwide discussions with employ- 72,931 Arvato Health Group’s success. Because they develop new ideas ees, executives and shareholders, Bertelsmann 68,463 and offers daily, the company must create a moti- has defined its sense of purpose with the triad Media, Services and Education Bertelsmann 8,261 vating environment for them to be creative, inno- “To Empower. To Create. To Inspire.” Providing Printing Group 8,138 Environment vative and successful. This particularly includes ­employees with orientation, it conveys the pur- Bertelsmann 1,639 freedom, trust and respect. pose of their daily work. Society Education Group 1,488

Additional Information To be an attractive employer, retain employees long- Guidelines, Structures and Processes Bertelsmann 29 Investments 28 term and remain competitive, Bertelsmann promotes Human Resources (HR) work at Bertelsmann is 1,954 employee development, diversity, creativity and per- based on the company’s identity as ­codified in Corporate 3,099 GRI Content Index formance in fair and healthy working conditions. the corporate constitution and the Bertelsmann While aspiring to this worldwide, Bertelsmann Essentials. Supplementary regulations are set out in the 0 20,000 40,000 60,000 80,000 ← ← Corporate Responsibility Employees 35 103 Report 2017

Employee Distribution Worldwide headcount

Other European countries Germany 41,912 (PY: 42,884) 43,597 (PY: 43,136)

Foreword About this Report Company Profile Corporate Management CR Management Employees North America 13,423 (PY: 13,094) Fair Working Conditions Asia Learning 8,328 (PY: 8,637) Diversity Health

Media, Services and Education Central and South America Environment 4,848 (PY: 2,484) Africa Society 6,379 (PY: 5,518) Additional Information

Australia and New Zealand GRI Content Index 602 (PY: 681)

← ← Basis: employees on permanent and temporary contracts, excluding trainees, as of December 31. Corporate Responsibility Employees 36 103 Report 2017

Bertelsmann Code of Conduct, which is binding for all concept, with complementary reporting as well as include the heads of HR of the Group’s largest Foreword employees, as well as the Executive Board Guidelines supervisory relationships. This allows Group-wide companies or those with the largest number of About this Report on HR Work →­ Compliance, p. 17. HR topics to be implemented in accordance with the employees in a specified country. Executive Board’s decisions. Additionally, regular >> The Nomination & Compensation Committees Company Profile The Chief HR Officer (CHRO), manages human dialogue with employees and their representatives of the divisions and Corporate Center decide on Corporate Management resources in the best interests of the whole Group. As makes it possible to continually review workplace the implementation of remuneration and staff- CR Management head of the Corporate HR department, which sup- conditions, identify possible improvements and ing policies in their areas of responsibility. ports the coordination of tasks and development derive measures →Participation and Dialogue, p. 38. Employees of relevant HR policy, the CHRO cooperates closely

Fair Working Conditions with the HR directors of the divisions. Included Another important aspect of Bertelsmann’s HR Learning in the main areas of responsibility are developing work is the exchange of information in committees. Diversity the Group’s strategic HR agenda in collaboration Health with the HR ­Committee; fostering and promoting >> The HR Committee determines the basic intracompany partnerships; aligning management aspects of HR work in the interest of the Media, Services and Education development with the Group’s strategic priorities; entire Group. Its members include the CHRO, Environment managing the staffing and remuneration processes the heads of HR of the divisions, and senior for key Group positions, and ensuring the standard- executives from the Group’s Corporate HR Society ization and IT support of important HR processes. department. Additional Information >> HR Country Coordination Meetings are To ensure the coordination of procedures through- designed for cross-divisional coordination out its decentralized structure, Bertelsmann’s HR within a region and ensure the implementation GRI Content Index function is organized according to a “dotted line” of HR initiatives across the Group. Its members

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Fair Working Conditions

Bertelsmann strives to offer its employees fair frame- and specific Executive Board Guidelines on certain Foreword work conditions for their work, give them support ­topics, especially those on remuneration and the About this Report and provide orientation. In addition to the protection use of external employees. of human and personal rights →Compliance, p. 17; Company Profile partnership and trustworthy cooperation with In addition, there are external regulations, such Corporate Management employees and their representations, workplace as the standards of the International Labor Orga- CR Management safety, fair distribution of benefits, flexible working nization, the OECD Guidelines for Multinational arrangements, and fair treatment of freelancers and Enterprises and Bertelsmann’s voluntary commit- Employees external employees are key aspects of fair working ment in accordance with the UN Global Compact

Fair Working Conditions conditions at Bertelsmann. →Guidelines and Partnerships, p. 24. A working Learning group also addresses the topic of fair working 6.4 years Diversity Guidelines, Structures and Processes conditions. As the central contact for the vari- Health Responsibility for ensuring fair working conditions ous committees representing employee interests, Average Duration of Employment is decentralized, meaning it lies with the man- Bertelsmann’s CHRO heads this working group. with the Group in Years Media, Services and Education agement of the local businesses. Bertelsmann (PY: 6.5 years) Environment provides Group-wide framework conditions that Shaping Change Together enable local businesses to fulfill this responsibility. Digital transformation is changing the work Society Basis: employees on permanent and temporary contracts, Beyond statutory requirements, guiding prin- environment and every individual’s tasks. At excluding trainees, as of December 31. Temporary employees Additional Information ciples include Bertelsmann’s corporate princi- Bertelsmann, this process also includes the of RTL Group are not included. ples (Corporate Constitution and Essentials) and restructuring of several traditional businesses. Code of Conduct →Compliance, p. 17; collective Parallel to this, some parts of the company are GRI Content Index regulations (e.g., Group company agreements); being dismantled while others reorganize, expand

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or newly build. Seeing change as both a chal- Foreword Employees by Employment Period in percent lenge and an opportunity, the company’s man- About this Report agement seeks to shape those changes together with employees. Company Profile 2017 80% permanent 2016 78% Corporate Management Bertelsmann’s management works to ensure that employees are informed of change processes in 2017 20% CR Management temporary as timely a manner as possible and involves the 2016 22% Employees workforce and employee representatives at an

Fair Working Conditions early stage to collaboratively identify the best 0 10 20 30 40 50 60 70 80 90 100 Learning solutions. In many cases, the company exceeds Diversity the statutory requirements set out in provisions Women Men Health such as the German Works Constitution Act. For example, the country’s HR managers and works Basis: employee headcount on permanent and temporary contracts, excluding trainees, as of December 31. Media, Services and Education councils, with the involvement of local manage- Environment ment, have set up the ”BeWege” concept to actively support structural company transforma- Participation and Dialogue and mutual trust. Although as a media company Society tion. For businesses in structural decline with jobs Bertelsmann sees continual dialogue between Bertelsmann falls under Germany’s tendency pro- Additional Information at risk, affected employees receive early consulta- employees and company management as a funda- tections and is therefore free from statutory co-deter- tion at a Development and Transfer Center, where mental prerequisite to the company’s success. The mination requirements within its Supervisory Board, they can also develop additional qualifications for company practices a partnership-based approach. the company appoints five employees as mem- GRI Content Index new positions within the Group. This requires strong representatives, clear rules bers of the Supervisory Board of Bertelsmann SE &

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GRI 102-43, 102-44 Corporate Responsibility Employees 39 103 Report 2017

Co. KGaA on a voluntary basis. Four of the five are Employees are also involved in the development and Foreword “Ensuring fair working works council members, and one is a member improvement of working conditions through standard- About this Report from the Bertelsmann Management Representative ized HR tools (Performance and Development Dia- conditions is an integral part Committee. In addition, the workforce, ­managers, logues, Target Agreements, and Team Talks), as well Company Profile of our corporate culture.” employees with disabilities, and trainees have as the Bertelsmann Employee Survey. The Employee Corporate Management platforms for exchanging ideas, advancing ­topics Survey has been a key element of Bertelsmann’s Bertelsmann Code of Conduct CR Management and constructively voicing their concerns. One corporate culture of partnership since 1977. In 2016, proven format is the Bertelsmann Group ­Dialogue 89 percent of employees worldwide took advantage Employees Conference. In 2017, the sixth such confer- of this opportunity to participate. They anonymously

Fair Working Conditions ence took place. Around 60 Corporate Works ­ rated topics including their workplace conditions, Learning Council members from Bertelsmann, ­Mediengruppe work with supervisors and teams, opportunities for Diversity RTL Deutschland, and Gruner + Jahr met at training and development, and the communication Health Bertelsmann Unter den Linden 1 in Berlin for two of strategy and changes in the Group. Based on the days of discussion and consultation with mem- respective company and team results, managers and Media, Services and Education bers of the Group Executive Board including the employees jointly identify improvement potential and prerequisites for a sense of partnership between Environment CHRO. The dialogue focused on the future of draw up action plans. The next Group-wide employee employer and employees. Bertelsmann’s com- work and the role of works councils. In 2018, con- survey will be carried out in 2019. pensation system is designed to ensure compen- Society ference participants will continue to address the sation that is solely driven by market conditions, Additional Information topic in an overarching working group. As a result Remuneration and Participation in the function and performance, and makes no dis- of the Group Dialogue Conference 2016, partici- Company’s Success tinction based on gender. It is also important pants developed a Change Management Manual Consistent, transparent remuneration struc- to Bertelsmann to have employees participate GRI Content Index from the perspective of works councils. tures as well as material fairness are important in the company’s success. Employee profit

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GRI 102-43, 102-44 Corporate Responsibility Employees 40 103 Report 2017

participation in Germany is based on the same them as site, technical and organizational require- Foreword Number of Full- and Part-Time Employees, key indicators as the bonus payments for Exec- ments permit. Working-time models that focus on Germany in percent About this Report utive Board members and executives. The prof- results rather than physical presence, as well as it-participation scheme includes all the German trust-based working hours, are now widespread. 30 (PY: 29) Company Profile operations of the Group’s fully consolidated com- part-time Corporate Management panies apart from RTL Group and Gruner + Jahr. The flexibility requirements of a rapidly changing CR Management These and companies with external shareholders world of work also mean that knowledge and exper- have similar success and profit participation tise need to be sourced from outside the company to 70 (PY: 71) full-time Employees models adapted to local requirements. ensure satisfied customers during peak phases. The

Fair Working Conditions company relies on staffing agencies and employs Learning In 2017, a total of €105 million of the 2016 profits external personnel in addition to permanent employ- Diversity was distributed as part of such schemes (previous ees where the specifics of the tasks allow and require Health year: € 95 million). this. Bertelsmann defines external personnel as Basis: employees headcount on permanent and temporary self-employed persons, service providers and consul- contracts, excluding trainees, as of December 31. Media, Services and Education Flexibility and Fairness tants, or as agency staff who work for a Group com- Environment Participation in decision-making processes and pany. The employment of external personnel must be allowance for the greatest possible freedom con- in accordance with the company’s values. The Exec- Society tribute to employee loyalty and satisfaction. To sup- utive Board Guideline on the Engagement of Exter- Additional Information port a healthy work-life balance, this also includes nal Personnel requires standard processes to ensure offering employees flexible arrangements about compliance with legal requirements. This is supple- where and when they work. Bertelsmann strives mented by the Supplier Code of Conduct, which also GRI Content Index to offer modern working solutions and develops obliges service providers.

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Learning

A company’s success is determined by its employ- offering lifelong learning programs is both a com- depending on their individual needs and organiza- Foreword ees’ qualifications: With this belief in mind, Reinhard mitment and a challenge for Bertelsmann. The bet- tional requirements. About this Report Mohn founded the Bertelsmann publishing compa- ter we do this, the more successful the business ny’s private vocational school back in 1962. This can be, and the more attractive it is for its workforce Bertelsmann University is a main department based Company Profile set the cornerstone for the Group’s present system and for the next generation of employees. Moreover, at the Corporate Center. It is led by the Chief Learn- Corporate Management of training in Germany and created the impetus for by doing so, the company contributes to individual ing Officer, who reports to the CHRO. The Execu- CR Management the establishment of a comprehensive system of job security and the stability of society. tive Board, Group Management Committee (GMC) corporate education. Major challenges such as the and HR Committee regularly discuss and review Employees Group’s progressive internationalization, the digital Structures and Processes the University’s orientation and activities. It is also Fair Working Conditions transformation of the media and services landscape, With four different campuses – Strategy, Leadership, supported by the Divisional Learning Committee, Learning and demographic change can only be tackled with Function and Individual – ↗Bertelsmann University which includes Learning and Development repre- Diversity excellently trained employees. Vocational educa- is the central learning organization for employees sentatives from the divisions. Health tion and training are a long-term investment in the and executives. It offers excellent learning content future, for both the company and its employees. and innovative learning formats that systematically Objectives and Results Media, Services and Education advance and develop the competencies and skills Bertelsmann University has defined three objec- Environment Bertelsmann University: Lifelong Learning of Bertelsmann’s employees and executives, world- tives in its efforts to support employee perfor- In a very dynamic environment, Bertelsmann builds wide and across all divisions. Examples include strat- mance: to build employee skills, strengthen the Society on dedicated and highly qualified employees and egy and innovation skills, leadership skills, digital company and leadership culture, and develop the Additional Information executives. The rapidly changing business environ- and soft skills, as well as specialist skills and foreign digital learning infrastructure. Progress is mea- ment constantly gives rise to new challenges for languages. Thanks to digital formats, the relevant sured, among other things, by the digitization rate all employees in their workaday routine. Helping content is available to every employee, and they (proportion of digital training hours). Digital train- GRI Content Index to ensure employees’ long-term employability by can choose when and where they want to learn, ing provides greater customizability, so learning

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objectives can, generally speaking, be achieved Foreword with fewer learning hours. Among other things, About this Report this led to a reduction in the number of training hours of all employees across the Group from Company Profile 405,924 (2016) to 358,200 (2017). The digitiza- Basis: all training data Corporate Management tion rate, however, rose from 23 percent (2016) to maintained on the digital HR platform “Peoplenet” CR Management 27 percent (2017). Participation in learning measures also increased. Other results for 2017 included: Basis for employees: Employees 358,200 27% employees on permanent and temporary contracts, Fair Working Conditions >> Further development of international pro- Total Training Hours Share of Digital excluding trainees, with Learning grams in the fields of leadership, strategy and Learning Hours access to the digital HR Diversity creativity (PY: 405,924) platform “Peoplenet” as Health >> Organization of strategic summits for the (PY: 23%) of December 31 global Finance, HR and IT communities Media, Services and Education >> Introduction of digital project management Environment certifications of vocational training offered at Bertelsmann. In With its nationwide offer, Bertelsmann is one >> Launch of a worldwide Data Science initiative Germany alone, the Group offers young people of the country’s largest apprentice-training Society in cooperation with Udacity industrial and commercial training options in more companies and is a protagonist in shaping the Additional Information than 60 different professions. In addition to tradi- vocational training landscape. One of the spe- Training in Germany: A Wide Range of Offers tional apprenticeship programs, this spectrum also cific challenges that must be addressed is the The diversity of businesses operated by Bertelsmann includes a variety of dual-study programs within future-proofing of training programs to prevail GRI Content Index companies is matched by the diversity and breadth the Group. in the intensified competition for highly qualified

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talent. This requires considering changes in the or to complete a part-time Bachelor of Arts or (“Be Welcome”), in which 15 young adult Foreword educational landscape, such as the growing ­Bachelor of Science degree at Bertelsmann. Of refugees from Syria, Iran and Iraq participated About this Report tendency toward academic degrees, as well as these, approximately 220 students are undergoing in 2017. structural changes like the digitalization of the industrial and commercial training at the Group’s Company Profile Group’s businesses. The better this works, the own vocational school. Corporate Management greater the company’s contribution to a future- CR Management proof society and to qualifying its people. The Objectives and Results integration of school-leavers without qualifications Vocational training at Bertelsmann is designed to Employees and young displaced persons also plays a role here. ensure a supply of well-qualified junior employees

Fair Working Conditions for the company’s various business fields, and to Learning Guidelines, Structures and Processes make it possible to fill vacancies via the in-house Diversity The Central Education department is responsible for job market. In 2017, the number of graduates in Health central training measures at the Gütersloh location. IT education increased by about 5 percent. Other It develops offers based on the company’s chang- results included: Media, Services and Education ing needs and requirements, and ensures that they Environment reflect the company’s values such as partnership >> Expansion of the range of digital learning con- and entrepreneurship. It also works closely with tent in vocational training and the Group’s own Society the works council and the managing directors and degree programs Additional Information HR managers of the training companies. >> Adaptation of some training and degrees to changing practical requirements In Gütersloh alone, more than 500 young people >> Continuation of the one-year qualification pro- GRI Content Index are taking the opportunity to learn a profession gram for young refugees in the Gütersloh region

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Diversity

For Bertelsmann, workforce diversity is a prerequi- heterogeneous teams contribute to a diversity has defined diversity as a focus topic in its corpo- Foreword site for innovation and long-term business success. of perspectives in their company – with positive rate responsibility efforts, and adopted a diversity About this Report With this in mind, Bertelsmann’s Diversity Man- implications for business processes and decisions. statement. Penguin Random House’s CR strategy agement team works to develop framework con- Diversity also strengthens employer attractiveness. also includes diversity as a focal topic. Beyond this, Company Profile ditions and processes that enable all employees to Diversity management helps to counter the risks Corporate Management optimally contribute their abilities, experience and resulting from demographic change. Additionally, CR Management potential toward the company’s success. it addresses the economic risks that arise when contracting governmental authorities require statu- Employees Diversity – the Business Case tory quota compliance in public procurement pro- “We are committed to equal Fair Working Conditions Diversity is defined by the variety of traits, charac- cesses, or with business partners having specific Learning teristics and attributes that make up an ­employee’s contractual requirements. opportunities and encourage Diversity identity. It includes sociodemographic factors such Health as gender, age, ethnicity/nationality and disabil- Guidelines, Structures and Processes a respectful and diverse ity, as well as sexual orientation, gender identity, The Bertelsmann Code of Conduct codifies the workplace in which each Media, Services and Education social background, religious affiliation, specific promotion of diversity by mandating respectful Environment abilities and ways of thinking. For Bertelsmann, and appreciative treatment of all employees. The individual’s unique value is diversity is among the keys to its economic suc- same is true for the Bertelsmann Supplier Code of Society cess. A varied and diverse workforce has a positive Conduct. The Executive Board Guideline on Princi- recognized and each person Additional Information impact on creativity, innovation and performance, ples of Hiring Policy also serves as a guideline for is treated with courtesy, as well as employee motivation. It enhances flex- addressing diversity. Furthermore, some divisions ibility and success in the different markets. With and companies have additional commitments and honesty and dignity.” GRI Content Index their individual skills, experience and viewpoints, concepts for diversity. For example, RTL Group Bertelsmann Code of Conduct

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Ratio of Female/Male Staff in percent Foreword About this Report 21 (PY: 20) 20 (PY: 17) 33 (PY: 31) Women Women Women Company Profile Corporate Management Group Supervisory Executive Management CR Management Board Board Committee Employees 79 (PY: 80) 80 (PY: 83) 67 (PY: 69) Fair Working Conditions Men Men Men Learning Diversity As of December 31 Health

Media, Services and Education Bertelsmann’s overall diversity strategy takes its Other relevant dimensions are disability, sexual Diversity Management (CR&DM) department, a Environment cue from new legal regulations regarding inclusion orientation and gender identity. central staff function, supports this process. It and equal opportunity, even when the company serves as an agent for impetus and change. It pro- Society does not fall within their scope. The Executive Board bears the strategic respon- vides in-house consulting and is a strategic part- Additional Information sibility for diversity within the Group. As role ner for Bertelsmann’s divisions and companies. The axiom of Bertelsmann’s diversity strategy, models, managers and HR managers have a par- CR&DM is supported by an international Diver- Business – Evolution – Focus, spotlights three areas ticular responsibility to demonstratively model and sity Working Group, with representatives from GRI Content Index of action: gender, generation and internationality. ­practice diversity. The Corporate Responsibility & the divisions and Corporate Talent Management.

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Ratio of Female/Male Staff in percent Foreword About this Report 15 (PY: 16) 32 (PY: 28) 54 (PY: 54) Women Women Women Company Profile Corporate Management Top- Senior- Employees CR Management Management1)2) Management1)2) Employees 85 (PY: 84) 68 (PY: 72) 46 (PY: 46) Fair Working Conditions Men Men Men Learning Diversity Basis: employees on permanent and temporary contracts, including trainees, as of December 31 Health 1) Top and senior management include those positions that are of particular importance because of their success-critical function and Media, Services and Education their strategic relevance for the Group’s continued transformation and the achievement of its strategic targets. Top management positions also include the GMC positions, but not the Executive Board positions. Environment 2) Basis: employees on permanent and temporary contracts, excluding trainees, as of December 31, with gender indication 2017 (91%), with gender indication 2016 (100%), limited comparability. Society Additional Information The Executive Board and the Group Management Representative Committee (BMRC), employee of decentralization, specific measures are imple- Committee (GMC) regularly address matters of ­representatives, and other committees at various mented in a division or company as most suitable GRI Content Index diversity – as do the Bertelsmann Management levels of the Group. In line with the Group’s policy to the business model.

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Gender-neutral Compensation Foreword Age Pyramid The equal treatment of men and women set out Employees worldwide in percent About this Report in the Code of Conduct explicitly applies to com- pensation. Bertelsmann’s remuneration policy is Company Profile to establish consistent remuneration structures >65 years Corporate Management in the Group. The design of the compensation 61–65 years system is intended to ensure that remuneration CR Management 56–60 years is exclusively driven by the market, function and Employees performance – and is therefore gender-neutral. 51–55 years

Fair Working Conditions Where explicit employment descriptions or com- 46–50 years Learning pensation exist, these are likewise completely 41–45 years Diversity gender-neutral. Men and women in compara- 36–40 years Health ble markets, in comparable positions and deliv- ering the same performance have equal earning 31–35 years Media, Services and Education opportunities. 25–30 years

Environment <25 years The Contribution of Corporate Talent Society Management 12% 10% 8% 6% 4% 2% 0% 2% 4% 6% 8% 10% 12% Additional Information Talent management is regarded as crucially import- Women Men Previous year ant in increasing diversity in top and senior man- agement. Employees are defined as “talent,” if they Basis: employees headcount on permanent and temporary contracts, excluding trainees, as of December 31. Temporary employees of GRI Content Index consistently deliver above-average performance, RTL Group are not included.

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have vertical potential and are willing to take Objectives and Results Penguin Random House UK has abolished a uni- Foreword on responsibility and be mobile, and thus wish Diversity Management at Bertelsmann pursues versity degree as a prerequisite for job applicants. About this Report to pursue cross-functional, cross-divisional and the objective of strengthening employee diver- international development. According to the sity at all levels of the organization according to Women made up 21 percent of the Supervisory Company Profile so-called “triple two” approach, leaders in top the priorities of gender, generations and inter- Board (previous year: 20 percent). One woman Corporate Management and senior management positions should ide- nationality. The proportion of women in each of sat on the Executive Board, which corresponds to CR Management ally have covered at least two functions, two the Bertelsmann ­talent pools (Top Management, 20 percent (previous year: 17 percent). The Group divisions and two countries in their professional Senior Management, Career Development) is to Management Committee had a total of 15 members Employees career. Talent Management measures primar- be increased to one-third. This was already con- (previous year: 16 members) and was very hetero-

Fair Working Conditions ily aim at increasing employee mobility and sidered in the 2017/2018 talent pool nominations. geneous. Its members represented five nationalities Learning expanding cultural, regional and professional At the divisional level, RTL Group has set the (previous year: six), and five of the members were Diversity experience related to functions, business areas objective of increasing the proportion of women in women (33 percent, previous year: 31 percent). Health and markets. top and senior management positions to at least 30 percent by 2025. As of December 31, 2017, At 22 percent, the 25 to 30 age group constituted Media, Services and Education In addition to systematically promoting broadening the proportion of female leadership in top man- the largest proportion of the total workforce on Environment the personal experience and skills that are a deci- agement positions at Bertelsmann was 15 ­percent Decem­ber 31, 2017 (previous year: 22 ­percent). sive factor in hiring and promotion, Talent Manage- (previous year: 16 percent), and in senior manage- The largest age group in top and senior manage­ Society ment also helps create transparency on diversity ment positions, 32 percent (previous year: 28 per- ment was 46 to 50; 29 percent (previous year: Additional Information within the company. In its top and senior manage- cent). 54 percent of all Bertelsmann employees 28 percent) of ­employees in top manage- ment target groups, it considers statistics relevant were women (previous year: 54 percent). In view ment positions and 29 percent (previous­ year: to Group recruiting and staffing policy, including of its objective of having its new hires reflect 29 ­percent) of employees in senior management GRI Content Index gender, age and nationality. the composition of Britain’s society by 2025, positions were 46 to 50 years old. 60 percent of

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Executive Board members were aged 46 to 50 Foreword Age Distribution in percent (previous year: 50 percent) and 40 percent were About this Report between 51 and 55 (previous year: 50 percent). Senior Supervisory Board1) Executive Board1) GMC1) Top Management2)3) Management2)4) On the Group Management Committee (GMC), the Company Profile 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 largest age group (33 percent) was between 46 and < 25 years 0 0 0 0 0 0 0 0 0 0 Corporate Management 50 years. In the previous year, the 51 to 55 age 25 – 30 years 0 0 0 0 0 0 1 0 1 1 group represented the largest group (31 percent). CR Management 31– 35 years 0 0 0 0 0 0 0 0 4 3 On the Supervisory Board, as in the previous year, 36 – 40 years 7 7 0 0 0 0 4 3 11 14 Employees the 51 to 55 age group formed the largest group 41– 45 years 0 7 0 0 7 13 21 26 22 25 Fair Working Conditions (29 percent, previous year: 40 percent). 46 – 50 years 14 0 60 50 33 25 29 28 29 29 Learning 51– 55 years 29 40 40 50 27 31 25 26 19 18 Diversity In the 2017 financial year, Bertelsmann and its 56 – 60 years 21 7 0 0 13 13 11 11 8 7 61– 65 years 7 13 0 0 13 13 5 3 4 3 Health companies had operations in about 50 countries around the world. Employees from more than > 65 years 21 27 0 0 7 6 4 3 2 1 Media, Services and Education 160 nations (previous year: around 150) worked Rounding differences may occur. for the Group. In the management bodies, distri- Environment 1) Basis: members of the bodies as of December 31 bution by nationality was as follows: The quota Society 2) Top and senior management include those positions that are of particular importance because of their success-critical function of non-German members on the GMC was and their strategic relevance for the Group’s continued transformation and the achievement of its strategic targets. Top manage- Additional Information 27 percent (previous year: 31 percent). All the ment positions also include the GMC positions, but not the Executive Board positions. 3) Basis: employees on permanent and temporary contracts, excluding trainees, as of December 31, with age indication 2017 (90%), members of the Executive Board are Germans with age indication 2016 (98%), limited comparability (previous year: one non-German member). On 4) Basis: employees on permanent and temporary contracts, excluding trainees, as of December 31, with age indication 2017 (77%), GRI Content Index the Supervisory Board, 64 percent (previous with age indication 2016 (80%), limited comparability

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year: 67 percent) of members were German and >> Launch of a project to implement the UN Con- Foreword 36 percent (previous year: 33 percent) were vention on the Rights of Persons with Disabilities; About this Report non-German. >> Establishment of the LGBTIQ employee net- work be.queer; Company Profile In Germany, the proportion of people with dis- >> Internal communication measures on diversity Corporate Management abilities in the company’s total workforce was issues. CR Management 4.9 percent­ (previous year: 4.7 percent). The topic of diversity was also addressed in Employees Other results of the centrally managed promotion of Bertelsmann’s divisions and companies in 2017:

Fair Working Conditions strategic and operational diversity in 2017 included: Learning >> RTL Group signed the Diversity Charter Lëtze- Diversity >> Further development of performance indicators buerg; Health for measuring diversity; >> Mediengruppe RTL Deutschland signed its first >> Concept development and piloting of “Smart inclusion agreement for people with disabilities; Media, Services and Education Decisions – Managing Unconscious Biases >> Penguin Random House U.S. established a Environment Effectively” training for managers; Diversity and Inclusion Council, whose work is >> Addition of the topic of diversity to leadership also supported by newly formed diversity com- Society training; mittees within the Group; Additional Information >> Concept development for a Demography Check >> Prinovis UK expanded its Leadership Excellence pilot project at a Gruner + Jahr company; program to include a module for managing >> Introduction of the Bertelsmann Exchange Initia- teams of employees from different backgrounds, GRI Content Index tive as a temporary employee exchange program religions, cultures and sexual orientations.

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Health

New ways of organizing work, digital ­technologies, system of needs, physical, psychological­ and Foreword “We will provide a healthy and accelerated workflows, heavier workloads and social resources, ability to cope, and personal safe workplace for our employees About this Report steadily increasing international pressure to goals. ­compete have an impact on the health of by complying with all applicable Company Profile ­employees. On top of these changes in working Objectives, Structures and Processes health and safety laws and stan- Corporate Management conditions, there is demographic change, which In 2012, with a view to creating a health-­promoting dards. Managers in particular must CR Management is ­accompanied by factors such as an aging work environment and preventing work-related ­workforce. As the retirement age rises, ­employees risks of disease, Bertelsmann and the Group Works ensure that appropriate health, Employees work longer and are faced with ever-increasing Council resolved to establish and expand a sys- safety and security practices and Fair Working Conditions demands in their jobs. tematic health management system at the German Learning sites. In the Group HR department, the Bertelsmann safeguards are in place to comply Diversity Preventing Risks, Designing a Healthy Workplace Health Management team has been put in charge with applicable laws and manage- Health An increase in chronic and mental health of this, and is coordinating the Germany-wide ­disorders, sickness absenteeism and the early health strategy and associated activities in collab- ment standards.” Media, Services and Education ­retirement of ­experienced employees are among oration with a Health Management strategy group Bertelsmann Code of Conduct Environment the challenges that arise from changes in the established at the Gütersloh location. modern working world. Bertelsmann wants to Society counter these developments at an early stage In addition, the Bertelsmann Health ­Community in measures. The Health Community also serves as Additional Information and has therefore invested in the health of its Germany, which comprises health experts, works a platform for systematic networking to establish ­employees for many years – because healthy, council chairs, supervisory board members, HR consistent standards at the German sites. motivated employees are essential to the managers and representatives for employees with GRI Content Index ­company’s ­success. Health is understood not disabilities, plays an important role in developing the Bertelsmann sets four minimum standards here: merely as the absence of illness, but as a complex health strategy and implementing the associated companies are to train their executives on the ← ← Corporate Responsibility Employees 52 103 Report 2017

subject of health, set up a working group on They include, besides the Occupational Safety Employees with Disabilities, and the Head of the Foreword health, inform their employees about health top- department, Company Medical Services, the Corporate Responsibility & Diversity Management, About this Report ics and services, and give them access to com- Bertelsmann BKK company health insurance (with are also represented in the Health Management pany social counseling. In 2017, quality criteria around 8,500 members in Germany), in-house Strategy Group. Company Profile were ­developed for each minimum standard, social ­services, and our Sports and Health department, Corporate Management which are to be introduced throughout Germany all of which in turn cooperate under the title “BeFit.” Results CR Management in 2018. The quality criteria specify which aspects The Occupational Safety team and Company At the end of 2017, the status of health manage- of the ­implementation of the minimum standards ­Medical Services advise Bertelsmann’s German ment at Bertelsmann in Germany was as follows: Employees are binding, which are recommended and/or companies regarding the implementation of occu-

Fair Working Conditions which are insufficient. To provide further support, pational health and safety tasks and standards >> 54 percent of Bertelsmann companies offered Learning a toolbox was developed that contains detailed required by the German Occupational Safety Act. their management training on “healthy manage- Diversity ­guidelines for setting up working groups, and a The Company Social Counselling team serves ment” (previous year: n.a.) Health checklist for healthy leadership. The medium-term about 65 percent of the companies in Germany >> 96 percent of companies have set up a health objective is to advance the internationalization of in ­matters relating to the personal sphere or the working group (previous year: 78 percent) Media, Services and Education ­Bertelsmann’s health management. workplace, as well as in health matters. Mean- >> 100 percent give their employees access to Environment while, the Sports and Health department offers information about company healthcare offers Exemplary Facilities and Services more than 10,000 employees at the Gütersloh site (previous year: n.a.); the Bertelsmann Health Society Networking plays an important role in success- an extensive company sports program with more website, which was set up in 2016 for this pur- Additional Information ful health management, as shown by the exam- than 250 sports and fitness classes per week. The pose, received around 16,000 visitors in 2017 ple of the Gütersloh site, where various bodies focus is on work-related and workplace-oriented (previous year: 13,000) have been working to promote health for many measures with a particular focus on back health >> 96 percent of companies offered their employ- GRI Content Index years. Since 2016, they have worked together and relaxation. The chairs of Bertelsmann’s Corpo- ees in-house social counseling (previous year: in the Health Management strategy group. rate Works Council and Group Representation for 87 percent) ← ← Corporate Responsibility Employees 53 103 Report 2017

To prepare for the introduction of a Group-wide health Foreword Standards for Health Management in Germany management system, pilot projects were initiated at About this Report RTL Nord, Arvato CRM and Arvato SCM. Following the 1 2 completion of the pilot project at RTL Nord, a survey of Company Profile participants in 2017 revealed significant improvements Corporate Management in job satisfaction and health. CR Management These measures were complemented with a wide Employees range of activities in the divisions, at the national and

Fair Working Conditions ­international levels. The following is a selection: Health competency is a necessary part of A permanent working group on health is established Learning all national leadership qualifications. in every Group company. Diversity >> In Germany, Arvato CRM Solutions has produced Health an occupational health management handbook 3 4 aimed at managers, employee representatives and Media, Services and Education members of local health working groups. Designed Environment as a reference book, work aid and supplier of ideas, the handbook explains the strategic ­management Society approach and contains a catalog of all health ­measures Additional Information available to employees at Arvato CRM Solutions.­ >> The human resources department of the Arvato CRM Solutions, together with Bertelsmann BKK and All Group companies ensure that employees have Every employee has access to in-house social GRI Content Index Arvato CRM Healthcare GmbH, ­continued the “Pre- informational access to in-house health and counseling. ventiometer” project in 2017. ­Supported by a digital preventive service offers. ← ← Corporate Responsibility Employees 54 103 Report 2017

health cockpit, individual health plans for the whole week. Approximately 1,200 ­employees Foreword employees can be developed on the basis of were reached through more than 33 internal About this Report selected health parameters and a discussion and external initiatives. In addition, numerous with a trained medical health coach. At Arvato Bertelsmann companies held their own action Company Profile SCM Germany, the ­“Gesundheit-bewegt-Team” days. Corporate Management organized action days for employees with work- CR Management shops on health topics. The average sick rate (number of sick days/target >> RTL Group has hosted the annual charity sports working days) at German Bertelsmann companies Employees event “Télévie Challenge” in Luxembourg was 6.7 percent in 2017 (previous year: 6.8 percent).

Fair Working Conditions since 2005. In an indoor cycling event, some Learning 400 employees cycle as many kilometers as Bertelsmann companies in Germany also record Diversity they can in one day. The €55,000 raised in this data on accident statistics, taking into account Health way in 2017 were donated to the Fonds de la the workplace and road accidents that are sub- ­Recherche ­Scientifique for cancer research. ject to reporting requirements. The accident rate Media, Services and Education >> On World Health Day, Bertelsmann ­companies at in the reporting year 2017 was 19.1 accidents per Environment many locations organized action days. For exam- 1,000 employees (previous year: 18.2). ple, employees at Motorpress Ibérica in Spain, Society which is part of Gruner + Jahr, learned more Additional Information about healthy nutrition and took part in sports and exercise activities. In India, Bertelsmann employees from eight divisions and companies GRI Content Index were invited to participate in numerous fitness-, nutrition- and ­wellness-related activities for a ← ← Corporate Responsibility 55 103 Report 2017 Media, Services and Education

Foreword About this Report Bertelsmann wants to reach as many people as Company Profile possible with its products and services. The company Approx. 100 Corporate Management relies on creativity, customer orientation, diversity and editorial offices operated by CR Management quality. RTL Group and Gruner + Jahr Employees Media, Services and Education

Creative Independence Day by day Content Responsibility Data Protection & Privacy Further Topics >600 million Environment Society >1 billion books, e-books and audiobooks sold Additional Information people reached by Bertelsmann by Penguin Random House worldwide GRI Content Index

← ← ← Corporate Responsibility 56 103 Report 2017 Media, Services and Education

Media is simultaneously an economic and a ­cultural systematically aligns its offers to the needs of its with the divisions and companies. ­Cross-divisional Foreword asset and plays a role in the formation of public ­customers and, as digitalization increases, continually­ networks, programs and events promote ­synergies About this Report ­opinion. Bertelsmann takes the social ­responsibility ­develops and diversifies its own ­portfolio. The ­creativity and the exchange of best practices on specific that this implies seriously: for its business and and innovation of ­Bertelsmann’s employees, entre- ­topics related to the company’s product, content Company Profile ­journalistic activities, as well as the production and preneurs, authors and artists is the engine that drives and service responsibility. Beyond this, Group-wide Corporate Management distribution of content and formats worldwide. this ongoing ­development. policies and procedural and technical ­management CR Management In providing outsourcing, print and education systems have been implemented for some areas ­services, the company gives top priority to profes- Guidelines, Structures and Processes such as privacy and data security. Employees sionalism and customer focus, service quality, and In addition to the Bertelsmann Essentials, the Media, Services and Education the protection of personal information. Bertelsmann Code of Conduct specifies key prin­ciples for the responsible production and ­distribution of Creative Independence Creative, Customer-oriented, Diverse media and services that are consistent and binding­ Content Responsibility The Bertelsmann Essentials define entrepreneur- for all Bertelsmann companies. The company oper- Data Protection & Privacy ship and creativity as important guiding principles­ in ates under strongly regulated conditions, partic- Further Topics the manufacturing and distribution of media ­products ularly when handling customer data and making Environment and services. With its wide range of ­products and offers to potentially vulnerable groups. Compliance ­services, the company aims to reach as many people with legal requirements and the highest quality Society as ­possible, occupy top positions in its markets and ­standards is a matter of course for Bertelsmann and Additional Information make a positive contribution to society. Worldwide, is fundamental to the company’s­ success. the company’s media products aim to inspire ­readers, viewers and listeners, and enable our ­business partners Responsibility for the design of the media and GRI Content Index with future-oriented solution services. Bertelsmann services businesses is decentralized and rests

← ← ← Corporate Responsibility Media, Services and Education 57 103 Report 2017

Creative Independence

Creative or journalistic independence stands for aware of the responsibility it has toward the public Foreword “Editorial and journalistic indepen- a plurality of content, opinions and positions, in its role as an opinion-shaper, and handles this About this Report and presupposes the independence of the media responsibility with care. dence is the foundation of our in the production and dissemination of content. Company Profile publishing, broadcasting and news Bertelsmann interprets this independence in two Independence, credibility, reliability and diversity reporting activities.” Corporate Management directions: Inside the company, it means that our are crucial factors for the company’s media brands Bertelsmann Code of Conduct CR Management management does not attempt to influence the as they compete for the attention of media users decisions of artists, editors and program managers, and customers. These values also make the com- Employees or to restrict their artistic or editorial freedom. To the pany attractive for employees, writers, artists and Media, Services and Education outside, it means that the company does not give other creative talent. in to political or economic influence in its ­journalistic Creative Independence coverage and creative design, and complies with Guidelines, Structures and Processes Content Responsibility existing laws regarding the separation of advertising The Bertelsmann Code of Conduct defines freedom Data Protection & Privacy and editorial content. of speech and opinion, in the sense of editorial and Further Topics journalistic independence (freedom of the press), Environment Independence as a Competitive Advantage as a basic principle of Bertelsmann’s business Bertelsmann sees censorship and attempts at activities. In-house press freedom at Bertelsmann Society ­political influence-mongering in its international is guaranteed by the “Editor-in-Chief Principle”: Additional Information markets as a risk to its businesses, and resolute editorial decisions are the exclusive responsibility opposition to it as an opportunity. Regarding content, of the people in charge of the program and prod- maintaining independence from advertising business uct. This allows them to operate free from the GRI Content Index partners is a continual challenge. Bertelsmann is influence of the Group’s owners or management.

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Many companies and editors have also imple- as well as to share information, ideas and best >> Some 60 awards for Gruner + Jahr, including Foreword mented separate statutes to safeguard creative ­practice. An RTL Group representative heads this 27 prizes at the Art Directors Club for Germany About this Report and journalistic independence in the day-to-day working group. (ADC) Festival alone business. These focus primarily on journalistic Company Profile and editorial duties of care, respect for privacy, Results A selection of important prizes and awards for the Corporate Management dealing with representation of violence, and the The many awards that the company’s editors Group’s media and services can also be found on CR Management protection of minors. and creatives win for their products, formats and the ↗Bertelsmann corporate website. publications are indicators of the successful real- Employees Such topics are also part of our in-house training for ization of quality journalism and independent In addition, Bertelsmann’s companies advocate Media, Services and Education editors. Bertelsmann has two journalism schools program creation at Bertelsmann. In 2017, they for a diverse media landscape by awarding their that promote independent quality journalism: The included: own prizes, through sponsorship programs and Creative Independence RTL School of Journalism for TV and Multimedia by ­supporting external initiatives: Content Responsibility in Cologne, offering a two-year practical training >> A variety of ↗prizes and awards for RTL Group’s Data Protection & Privacy course for television editors, and the Henri Nannen programming, including the German Television >> RTL Group supports young journalists: RTL Further Topics School from the Gruner + Jahr, ZEIT and SPIEGEL Award in five categories for the channels Vox, Radio (France) sponsors the Jean-Baptiste Environment publishing companies, which teaches young people RTL Television and Nitro, and in four ­categories Dumas Grant, a competition for journalism stu- the journalistic craft for print and digital media. for the UFA film production company; the dents. Fondation M6 organizes the “Au-delà Society ­German Radio Award in two categories for des lignes” writing competition for detainees in Additional Information Representatives and experts from the Bertelsmann ­stations in which RTL Radio Deutschland owns French prisons. divisions also meet once a year in a cross-divisional a stake; and 461 Penguin Random House titles >> Penguin Random House is an active supporter working group to discuss matters relating to press on “The New York Times” bestseller lists, with and partner of PEN International and its local GRI Content Index freedom and editorial and journalistic independence, 61 reaching #1 centres PEN America and English PEN. PEN’s

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mission is to advocate freedom of opinion, help violations of press freedom and the persecu- Foreword marginalized groups to be heard and promote tion of journalists throughout Europe. Since About this Report social dialogue. In 2017, Penguin Random House 2005, Gruner + Jahr has also honored out- made an additional financial contribution to fur- standing work in German-speaking journalism Company Profile ther support PEN through employee and author with the ↗­Nannen Prize, which is awarded to Corporate Management memberships in the United States. As part of authors in the print and digital realm, as well as CR Management the long standing New York Creative Writing to ­photographers. Awards initiative, Penguin Random House Employees awarded a cumulative total of $2.6 ­million in Media, Services and Education prize money for college scholarships through 2017. In ­Britain, Penguin Random House contin- Creative Independence ued its ­WriteNow program to ­discover, mentor Content Responsibility and publish new writers from under-repre- Data Protection & Privacy sented social groups, including authors from Further Topics ethnic minorities and members of the LGBTIQ Environment community. Penguin Random House UK is also among the main sponsors of World Book Day. Society >> Gruner + Jahr is an official signatory to the Additional Information European Charter on Freedom of the Press and supports the European Center for Freedom of the Press and Media, founded in Leipzig in GRI Content Index 2015, which, among other activities, documents

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Content Responsibility

Bertelsmann wants to reach as many people as codes of national press councils; and within the privacy, the careful handling of sources – in Foreword possible with its creative products. This comes company by the Bertelsmann Code of Conduct. It ­particular social media sources – as well as About this Report with a responsibility to reflect on the repercussions commits Bertelsmann’s editorial staff to “respecting the clear separation­ of editorial and advertising­ of the content it produces and distributes, and to privacy and the responsible treatment of information, content. This update is partly a reaction to Company Profile protect the rights and interests of media users to opinion and images.” In some cases, other ­statutes the issue of misinformation and fake news. Corporate Management the greatest possible extent. A special responsibility regulate the handling of content responsibility at the To ­prevent the spread of fake news, at the CR Management applies to the youngest media users, because today’s divisional, company and editorial-department level. end of 2016, ­Mediengruppe RTL ­Deutschland children and young adults have long since lived in a The representation of social diversity, as well as set up an in-house team of experts to verify Employees world shaped by media. regulations to avoid discriminating or stereotyping ­user-generated content. This verification unit Media, Services and Education ­content, also play an important role. has since been expanded internationally into a Guidelines, Structures and Processes Group-wide team of ­journalists and ­information Creative Independence In accordance with the Editor-in-Chief Principle Example: RTL Group specialists. Beyond this, RTL Group has estab- Content Responsibility practiced at Bertelsmann, responsibility for the In addition to local laws and voluntary commitments, lished additional processes to ensure compli- Data Protection & Privacy production and dissemination of media content is RTL Group has its own ↗Newsroom Guidelines that ance with ethical standards. At Groupe M6, in Further Topics the sole responsibility of program managers, who steer the work of its editorial staff. The Guidelines accordance with the French law on ­strengthening Environment are free from influence from the Group’s owners or describe editorial duties of care, and include reg- media freedom, independence and diversity of local management in the company’s ­decentralized ulations on the protection of minors, impartial content, ethical standards are ­monitored and Society structure ­→Creative Independence, p. 57. Overriding­ reporting, the protection of privacy and how to analyzed by a new Ethics ­Committee ­created Additional Information principles and guidelines of media ethics­ are set by handle the representation of violence. in August 2017. A similar committee has national and international laws ­governing the press, been set up at RTL Luxembourg. In Germany, broadcasting and multimedia; by ­voluntary com- In May 2017, the Newsroom Guidelines were ­Mediengruppe RTL Deutschland also appointed GRI Content Index mitments to external guidelines such as the ethics updated in the areas of personal rights and a voluntary Media Advisory ­Council. The panel,

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with ­representatives from politics, ­culture, Child and Youth Protection Foreword “We are aware of and treat ­business and religious­ organizations,­ advises The purpose of media policies and laws is to About this Report ­Mediengruppe RTL ­Deutschland’s management ­protect minors through the review of media with care, the responsibility with special attention to diversity of opinion and ­content to determine any possible detrimental Company Profile that we as opinion makers, plurality of channels and products. effects on the development of children and young Corporate Management adults. If such an effect is suspected, ­various have toward the public.” Example: Penguin Random House ­distribution restrictions apply. The ­policies and CR Management Bertelsmann Code of Conduct Penguin Random House complies with all laws are intended to ensure that such media Employees ­applicable laws for the publication of content, content is only accessible to age groups with Media, Services and Education including regulations on defamation, privacy and the necessary maturity to put the possibly advertising. In the US and in Great Britain, Penguin ­disturbing or unsettling content into context and Creative Independence Random House has implemented a ­rigorous process it appropriately. Bertelsmann gives high Content Responsibility ­process whereby books containing potentially priority to the protection of children and young Data Protection & Privacy dangerous content are subject to legal review adults in the production and ­dissemi­nation of its Further Topics prior to publication. Furthermore, the publishers’ media content and complies with the ­relevant Environment ­editorial offices have standardized processes to ­requirements. These include broadcast time obtain written releases from private individuals restrictions as well as content and ­product Society whose personal information is included in a pub- ­labeling. ­Particularly in broadcasting­ divisions Additional Information lication. If the names or pictures of minors are to and companies, efforts are often made to go be used, parental consent is required. Penguin beyond the existing ­European and national Random House is current on media developments ­regulations, (e.g., the Audiovisual Media ­Services GRI Content Index and media-related laws. Directive).

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At Mediengruppe RTL Deutschland, the ­Standards & In France, as early as 1989, the channels of ­participate. Likewise, the EU initiative ­“klicksafe.de,”­ Foreword Practices department advises the ­editorial teams Groupe M6, part of RTL Group, developed a volun- sponsored by Super RTL, works to ­promote ­public About this Report on matters related to the protection of minors. tary labeling system for their broadcasted films – a awareness of safe Internet use through practical It ensures compliance with legal requirements system adopted and made obligatory in 1996 for programming and materials. The German broad- Company Profile and serves as the contact point for viewers and other French broadcasters by the Conseil Supérieur caster also supports – and has for 10 years – the Corporate Management ­regulatory bodies. de l’Audiovisuel. online search engine ↗fragFINN.de, which pro- CR Management vides children between the ages of 6 and 12 with Mediengruppe RTL Deutschland’s channels Promoting Media and Internet Literacy among a safe, child-friendly website to research topics Employees teamed up with other commercial program pro- Children and Young Adults that ­interest them. The Penguin Random House Media, Services and Education viders in 1993 to found the Self-Regulation Body In addition to passive measures to protect minors, ­publisher Dorling Kindersley offers a similar plat- of the ­Television Industry (FSF). The channels’ media providers at Bertelsmann also engage in form with ↗“DKfindout!” Children, and young Creative Independence Youth Protection ­Officers proactively submit youth ­various initiatives to actively promote media literacy­ ­people are increasingly using Bertelsmann’s Content Responsibility ­protection-relevant programs to the FSF’s inde- among children and young adults →Promoting­ services online on smartphones, tablets and PCs – Data Protection & Privacy pendent review groups prior to broadcast. The FSF Media Literacy, p. 88. Online media literacy, or which is why it is so important to keep develop- Further Topics reviews programs for suitability for minors and ­Internet literacy, is a particular focus of their efforts. ing technical solutions to protect minors, for every Environment makes a binding decision as to whether and at what RTL Group was a founding ­member of the EU’s platform. time a program may be broadcast. RTL ­Nederland “CEO Coalition to make the ­internet a ­better Society is affiliated with NICAM, a Dutch institute respon- place for kids” initiative, which develops ­specific Additional Information sible for the development and implementation of ­recommendations for handling digital media. These the ↗Kijkwijzer classification ­system which warns efforts are being continued in the “Alliance to ­Better parents and educators if a TV ­programme or film Protect Minors Online,” founded in 2017, in which GRI Content Index has content unsuitable for ­specific age groups. Super RTL and Mediengruppe RTL Deutschland

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Data Protection & Privacy

In the production and distribution of its media and identifying information, being handled in accor- Foreword “We collect, retain, use and ­services, Bertelsmann deals with customer data dance to legal requirements, and that the informa- About this Report every day. In the service segment ­particulary, many of tion be adequately protected against unauthorized transmit personal data and the world’s largest corporations entrust our ­company access, such as reading, alteration or deletion. Company Profile information in compliance with parts of their value chain, such as the manage- Corporate Management ment of supply chains or ­customer ­communications. Bertelsmann operates in a highly regulated environ­ with applicable law and CR Management Careful and confidential ­handling of personal data ment as pertains to handling customer data. In all also plays a decisive role in contact with media users. the core countries where Bertelsmann does busi- policy.” Employees Privacy is a ­fundamental human right. Accordingly, ness →Company Profile, p. 5, the protection of Bertelsmann Code of Conduct Media, Services and Education the company attaches great importance to protect- customer data is already required by law, and com- ing customer data and to privacy. pliance is a matter of course for the company. Creative Independence ­European ­legislators in ­particular are enforcing Content Responsibility Ensuring Compliance, Maintaining Trust ­further data protection regulations against the back- Data Protection & Privacy Data protection and privacy includes ­safeguarding ground of Economy 4.0. For instance, Europe’s Further Topics the personal information of a Group company's “General­ Data Protection Regulation” (GDPR) has Environment individual ­customers as well as protecting the per- been in force since May 25, 2018. This standard stip- sonal information about customers provided­ to a ulates heavy fines for ­serious infringements, mak- Society Group company by their partners. The intention ing violations not only detrimental to a ­company’s Additional Information is to safeguard the individual's right to determine ­reputation and adversely affecting trust among who is authorized to acquire what ­knowledge business customers­ and media users, but also about them, and when (right to informational resulting in substantial financial penalties. In view GRI Content Index self-determination). This includes personal and of tighter regulation, increasing customer audits

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and demands for regulation of liability issues are the individual companies. To ensure compliance security requirements, a systematic recording Foreword to be expected on the part of business partners. with the relevant German laws governing data of risks and the derivation of related mitigation About this Report For Bertelsmann, decisive management of data ­protection and privacy, the Group companies in ­measures. protection is therefore an investment in its own Germany have a data protection organization con- Company Profile business success. sisting of central data protection officers and local Objectives and Results Corporate Management data protection coordinators. The latter report to To ensure compliance with the GDPR, a Group- CR Management Guidelines, Structures and Processes the local management, as well as annually or occa- wide data protection management tool was rolled The rules and regulations that cover data ­protection sionally to the central data protection ­officers, who out in the third quarter of 2017. It addresses Employees and privacy include the Bertelsmann Code of Con- in turn report to the Bertelsmann Executive Board. the implementation of the documentation and Media, Services and Education duct, the Executive Board Guidelines on Information A similar organization with appropriate processes accountability requirements as stipulated by the Security and IT Risk ­Management, the Bertelsmann was set up for Group companies outside Germany GDPR, in addition to requirements ­regarding Creative Independence Cloud Policy, and, for the German­ companies in the in 2017. The central data ­protection ­officers are governance ­obligations. It allows for local Content Responsibility Group, the “Handbuch zum Konzerndatenschutz” supported by local data protection officers­ and adjustments with a view to ­country- and busi- Data Protection & Privacy (Group Data ­Protection Manual). The Executive Board company data protection coordinators from the ness-specific requirements. Alone in the divisions Further Topics ­Guideline on Data Protection is designed to ensure divisions and by other staff ­departments. that are subject to the GDPR, in 2017 around Environment consistent data protection management­ across the 30,000 ­employees were trained in data protection Bertelsmann Group. It fulfills the requirements of the An information security management system and privacy. That year, there were 73 complaints Society GDPR, which has largely replaced existing national (ISMS, based on the ISO 27001 industry standard) and filings involving data protection authorities. Additional Information ­legislation. that exists across the Group creates the technical No fines were imposed. framework for confidential data processing. The Responsibility for data protection and privacy is ISMS features a regular and structured survey GRI Content Index decentralized and rests with the management of to ensure compliance with statutory information

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Further Topics

Protecting Intellectual Property against the illegal dissemination of content. By Bertelsmann and its companies use a variety of Foreword Bertelsmann is a home for artists, writers and cre- doing so, Bertelsmann remains competitive as a ­principles and procedures for product ­labeling, About this Report ative talent across all fields. The company ­promotes media company and ­creates the prerequisites for reflecting the diversity of their products and their artistic development and, with it, their com- continuing to make long-term investments in new ­services. Especially relevant areas where ­labeling Company Profile mercial success. Bertelsmann’s businesses develop, products and ­services, attract new creative talent, is used include the protection of minors (e.g., in Corporate Management produce, transfer, license, and sell products­ and ser- and contribute to cultural and creative ­diversity. broadcasting →Content Responsibility, p. 60), as CR Management vices that are protected as intellectual property. For well as environmental and climate protection (e.g., Bertelsmann, the protection of intellectual property Product Safety and Product Labeling in paper procurement and recycling →Paper, p. 76). Employees rights is fundamental to its business ­success. For In their production and distribution of products and Product safety is a focus topic that plays a special Media, Services and Education this reason, the company is committed to a high level services, all Bertelsmann companies comply with role, as in the production of children’s books at of global copyright protection worldwide. The Group- legal requirements and the highest quality ­standards Penguin Random House adhering to the strictest Creative Independence wide Copyright Task Force with ­representatives of as a matter of course. The Bertelsmann Code of safety standards in connection with the manufac- Content Responsibility the relevant corporate divisions accompanies the ­Conduct codifies this as a binding principle: “We turing and production of its books, toys and related Data Protection & Privacy ­latest developments in copyright law and bundles are committed to providing our customers with products to ensure that all Penguin Random House Further Topics their ­positions in the form of joint papers. safe, high-quality products and services. Our prod- products are risk-assessed and safety tested for Environment ucts and services must not contain defects or unsafe such things as choking hazards and toxicity. Transferring copyright protection ­comprehensively ­features that could lead to the endangerment of Society and fairly from the analog to the digital world health or damage to property.” Responsibility for the Fair Marketing Additional Information plays an important role. Bertelsmann works ­protection of media users and customers, as well as The protection of media users – especially of ­proactively to build awareness regarding the compliance with related requirements, standards and minors – and the safeguarding of customers’ value of intellectual­ property, strengthen copy- commitments, is decentralized and rests with the privacy and data are essential for Bertelsmann’s GRI Content Index right ­protection in the digital world, and take action ­management of the individual companies. business activities. This goes also and especially

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for the advertising activities and ­marketing discourse about media products and content is Foreword “We do not knowingly ­communications of Bertelsmann’s ­companies. an ­explicitly ­encouraged and desired effect of the About this Report The Bertelsmann Code of Conduct specifies company’s own ­journalistic activity. One ­example is engage in or promote ­principles for this: “We do not knowingly engage Penguin Random House’s industry-leading ­support Company Profile in or promote misrepresentation or fraud in of Banned Books Week in the United States, when misrepresentation or fraud in Corporate Management the marketing or advertising of our ­products thousands of ­libraries, schools, bookstores and the marketing or advertising CR Management and ­services.” Beyond this, responsibility for community ­centers across the nation unite to cele- ­compliance with national and industry-specific brate the freedom to read and exercise the right to of our products and services.” Employees legal requirements and voluntary commitments do so without interference or censorship. Bertelsmann Code of Conduct Media, Services and Education in advertising and marketing lies with the local businesses. Creative Independence Content Responsibility In selling its products and services, Bertelsmann Data Protection & Privacy complies with local, national and international laws. Further Topics Products that are prohibited by law are not offered. Environment At the same time, Bertelsmann enshrines freedom­ Society of speech and opinion, as well as ­editorial Additional Information and journal­istic independence, as fundamental­ ­principles for the production and dissemination of its media products and content →Creative GRI Content Index Independence, p. 57. In this connection, public

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Foreword About this Report Bertelsmann’s environmental management focuses Company Profile on global climate protection and responsible, efficient 8% Corporate Management natural resource management. reduction in CO²e CR Management emissions since 2016 Employees Media, Services and Education Environment

Energy and Emissions Paper Additional Environmental Data 91% 34,600 MWh Society of paper from Additional Information recycled or from increase in the use of renewable energies with certified sources guarantees of origin since 2016

GRI Content Index

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Through its business activities, Bertelsmann enters controlling ecological effects of business activities­ are Foreword “We strive for environmentally a complex interrelationship with the ­environment. also increasing. As a result, Bertelsmann’s business About this Report This gives rise to a special environmental responsi- customers – particularly those of service businesses ­responsible procurement and use of bility for the company. Together with its employees, Arvato and the Bertelsmann Printing Group – expect Company Profile natural resources (energy, water, and in dialogue with its stakeholders, Bertelsmann effective environmental management that ensures or materials and land) in the production Corporate Management strives to use natural resources effectively and exceeds legal requirement compliance. and distribution of our products CR Management efficiently, and to reduce direct and i­­ndirect ­greenhouse gas emissions. Doing so is part of Bertelsmann is meeting these growing challenges and the performance of our services.” Employees the company’s overall efforts to minimize the with transparency on its environmental impact Bertelsmann Code of Conduct Media, Services and Education ­environmental impact of its production, business along the value chain. By combining the mea- and ­distribution processes. surement of energy and natural raw materials Environment procurement and use with effective energy and Energy and Emissions Transparency and Climate Protection environmental management, cost savings can be Paper Environmental and climate protection play a achieved in the short, mid and long term, while Additional Environmental Data ­crucial role in a future worth living. To reduce also reducing the company’s ecological footprint. negative impacts, Bertelsmann is actively commit- Such actions can also prevent interruptions to Society ted to environ­mental protection through the sus- ­production flow brought on by resource scarcity or Additional Information tainability orientation of its businesses. extreme weather events.

With increasingly limited natural resources, global Guidelines, Structures and Processes climate warming and a growing world population, Bertelsmann’s environmental policy and the GRI Content Index societal and regulatory demands for disclosing and Bertelsmann Paper Policy, initiated by the Executive

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Board, set the framework for the responsible use corporate divisions. Included are paper buyers, locations were calculated based on ­estimated Foreword of natural resources throughout the Group and for energy and environmental managers, logistic values. The results of the carbon footprint not About this Report environmentally conscious procurement of both experts and controllers who regularly exchange only provide transparency on ­Bertelsmann’s energy and materials. views on ­current environmental issues and best environmental and climate impacts and ecolog- Company Profile practices and maintain a dialogue with external ical performance, but also enable improvement Corporate Management As Bertelsmann is a decentralized organization, stakeholders. In addition, “be green” working group measures to be derived. In addition to the envi- CR Management operational responsibility for energy and environ- experts coordinate the Group-wide collection and ronmental data presented below, further infor- mental management lies with the management of reporting of environmental data. mation and explanations of the data and key Employees the Group’s individual companies. In addition to figure methodology will be available online at the Media, Services and Education cross-divisional objectives for reducing greenhouse Since 2008, Bertelsmann has regularly compiled ­↗Bertelsmann corporate ­website at mid-year. gas emissions ­→Energy and emissions, p. 71 and data on its Group-wide carbon footprint and on Environment for using paper →Paper, p. 76, many corporate energy, paper, water, wastewater and waste. The Energy and Emissions units set their own objectives for improving environ­ Corporate Center collects, aggregates and ana- Paper mental performance within the framework of local lyzes this environmental data from all divisional Additional Environmental Data management systems. Bertelsmann’s international companies and sites worldwide every year. The “be green” working group serves as a platform for current report shows the environmental data of all Society cross-divisional environmental commitment. fully consolidated Group companies. These were Additional Information determined by data queries from 451 locations and Headed by the Corporate Center’s department for 386 companies. While all production and logistics Corporate Responsibility & Diversity, which reports sites and the company’s own data centers were fully to the CHRO, the “be green” working group is included in the data collection process, the environ­ GRI Content Index comprised of representatives from Bertelsmann’s mental data for 6 percent of ­employees at office

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In Hamburg, G+J hosted a “be green In Estonia, Arvato CRM planted marketplace” where employees could 1,000 trees in cooperation with the get information on topics such as car State ­Center for Forest Management. ­sharing and waste avoidance.

In Singapore, Arvato SCM employees ­volunteered to clear trash from the Foreword In Mexico, Sonopress employees beach at Pasir Ris National Park on the were artistically active, organizing eastern part of the island. About this Report an art competition focused on environmental issues. Company Profile Corporate Management In India, a climate-friendly menu CR Management In Brazil, the Corporate Center called for a “No Printing Day”, to reduce was served at the Corporate Center and Bertelsmann India Investments Employees paper ­consumption. Books were also donated to the local community. to ­highlight the climate impact of Media, Services and Education dietary choices.

Environment Countries with be green day activities by Bertelsmann companies Energy and Emissions Paper Additional Environmental Data Be Green Day 2017 and environmental protection. Launched in 2010 waste and recycling, new mobility concepts, CO Society ² The Group-wide be green day campaign took by the “be green” experts, 2017 was the year savings and paper were the focus of attention in Additional Information place for the sixth year in 2017. Under the companies were invited to organize individual the various ­corporate ­divisions. The actions high- motto “Your commitment counts – Together for action days. From ­Mexico to Singapore, Estonia to lighted the many ways climate and environmental more climate and environmental protection”, Brazil – 20 countries in all – Bertelsmann employ- protection can be implemented, demonstrating 84 Bertelsmann locations took part in action days ees learned more about environmental issues that every ­contribution counts. The next be green GRI Content Index drawing ­attention to the importance of climate and took part in various activities. Topics such as day campaign is planned for 2019.

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Energy and Emissions

The environmental aspect of energy and emissions greenhouse gas emissions by 20 percent by 2025 This represents a significant decline of 8 ­percent Foreword is a focal point of cross-divisional cooperation on compared with 2014. As an intermediate step, compared with the previous year. Scope 1 About this Report environmental and climate protection. Although emissions are to be reduced by 10 percent by 2020. accounted for 261,900 tons (previous year: increasing digitalization is making Bertelsmann less 256,900 tons). The indirect CO e emissions from Company Profile ² dependent on limited natural resources, it is also The Bertelsmann Carbon Footprint, which comprises the ­purchase of energy (scope 2) amounted to Corporate Management increasing energy consumption for data manage- direct (Scope 1) and indirect (Scope 2) greenhouse 238,100 tons (previous year: 286,200 tons). Of CR Management ment. By exchanging experience in the Bertelsmann gas emissions, is the Group-wide benchmark for Scope 1 and 2 emissions, 56 percent are attribut- “be green” network, for example on the use of Bertelsmann’s carbon footprint and climate objec- able to power generation, 40 percent to the provi- Employees energy-saving technology and renewable energies, tives. Accounting is based on the Greenhouse Gas sion of heat and 4 percent to transportation using Media, Services and Education or working together on energy efficiency projects, Protocol (GHG Protocol) using the market-­based the company’s own vehicles. Specific ­emissions energy consumption and emissions can be reduced, methodology. CO² equivalents (CO²e) are reported. fell significantly in the year under review to Environment costs saved and expenditures reduced. As part of measuring environmental objectives, 29.1 ­metric tons of CO²e per €1 million in consoli- Energy and Emissions adjustments are made to account for portfolio dated sales (previous year: 32.2). Paper Objectives and Results changes. Effects from the sale and acquisition of Additional Environmental Data Bertelsmann supports the goal of the international Group companies are neutralized ­retrospectively The switch to renewable energies with guarantees community of states to limit global warming to each year and the basic data adjusted accordingly. of origin or renewable energy certificates and the Society below 2° C. In the 2016 fiscal year, the company The environmental indicators also include other selection of low carbon energy sources contrib- Additional Information calculated the company-specific contribution indirect greenhouse gas emissions (Scope 3), which uted significantly to the reduction in emissions. The ­necessary to achieving the < 2° C goal, taking into are not part of the objective. switchover­ of electricity purchases to suppliers with account the methodology of the Science-Based a high wind-energy share or hydropower contributed ­Target Initiative. Based on these analyses, In 2017, the Bertelsmann Carbon Footprint totaled to a reduction in emissions of over 20,000 tons CO²e GRI Content Index Bertelsmann aims to reduce its portfolio-adjusted 500,000 tons (previous year: 543,100 tons) of CO²e. at Arvato’s and Gruner + Jahr’s German businesses

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Greenhouse Gas Emissions by Scope Foreword About this Report Scope 1 breakdown in percent Scope 2 breakdown in percent breakdown in percent Company Profile Scope 3 Corporate Management 7 (PY: 8) 29 (PY: 28) 15 (PY: 13) 85 (PY: 87) CR Management 5 (PY: 5) 5 (PY: 5) Employee Fuel Electricity Heat Electricity Energy-related acitivities commuting Employees 5 (PY: 5) Media, Services and Education Business travel Environment 261,900 238,100 1,420,600 Tons of CO e Tons of CO e Tons of CO e Energy and Emissions ² ² ² (PY: 256,900) (PY: 286,200) (PY: 1,414,600) Paper 64 (PY: 64) 85 (PY: 85) Additional Environmental Data Heat Paper Society Additional Information Scope 1: Greenhouse gas emissions from sources owned by Scope 2: Indirect greenhouse gas emissions, generated Scope 3: Indirect greenhouse gas emissions from business Bertelsmann or its fully consolidated subsidiaries (such as by energy production at suppliers (e.g., emissions from the activities outside the company’s boundaries (e.g., emissions owned power and heat generation facilities, and company ­production of purchased electricity and district heat). from the production of purchased paper, business travel, or fuel vehicles). and energy used in the supply chain). GRI Content Index

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alone. The total use of renewable energies with Objectives for Scope 1 and 2 Emissions in metric tons of CO e Foreword ² guarantees of origin or renewable energy certifi- About this Report cates increased by more than 120 percent to almost 600,000 63,000 megawatt hours. Company Profile -12% -10% -20% Scope 1

Corporate Management All divisions contributed to this positive develop­ Scope 2 400,000 (market based) CR Management ment, with the Bertelsmann Printing Group ­recording the largest reduction in emissions. Objective Employees GGP Media, for example, switched its ­electricity 200,000 Media, Services and Education ­procurement completely to green electricity. ­Production declines and efficiency measures also Environment contributed to a reduction in energy-related green- Energy and Emissions house gas emissions. Emissions from RTL Group, 0 Paper Gruner + Jahr, Penguin Random House and Arvato 2014 2017 2020 2025 Additional Environmental Data were reduced significantly in some cases.

Society Comparing 2017 emissions to the base year 2014, Additional Information Scope 1 emissions rose slightly by 1 percent after portfolio adjustments and Scope 2 emissions fell long-term objective of -20 percent in emissions. The As part of Bertelsmann’s environmental data significantly by 22 percent. In total, the decline is milestone of a 10 percent reduction in greenhouse ­collection, the Scope 3 category reports indirect equivalent to 12 percent. This shows that the com- gas emissions, planned for 2020, was achieved for greenhouse gas emissions from the production of GRI Content Index pany has successfully embarked on achieving its the first time in 2017. purchased paper, energy-related activities (outside

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Scope 1 and 2), business travel and employee Bertelsmann Printing Group recorded a reduction­ Foreword Energy Consumption in megawatt hours ­commuting. in electricity and heat consumption due to the About this Report decline in production at some sites in ­Germany 2,000,000 For the paper purchased by Bertelsmann companies,­ and the United States, the implementation of Company Profile a total of 1.2 million tons of CO²e (previous year: numerous efficiency measures and the ­closure of Corporate Management 1.2 ­million tons) were reported for fiscal year 2017. a Sonopress site in the United States. At Prinovis 1,500,000 CR Management Scope 3 emissions from energy-related activities UK, however, higher capacity utilization led to an amounted to 68,200 tons of CO²e (previous year: increase in energy consumption. Lower consump- Employees 70,700 tons). Business travel generated 67,700 tons tion at Gruner + Jahr and ­Bertelsmann Education 1,000,000 Media, Services and Education of CO²e (previous year: 67,900 tons). Emissions from Group also contributed to the decline in reported the daily commuting of employees amounted to energy consumption. RTL Group reported a slight 500,000 Environment 72,900 tons of CO²e (previous year: 71,100 tons). increase despite the first-time inclusion of SpotX Energy and Emissions in the ­environmental data ­collection. ­Arvato’s 0 Paper Total energy consumption fell slightly year-on-year energy consumption rose significantly, particu- 2016 2017 Additional Environmental Data from 1,672,900 megawatt hours to 1,665,500 mega- larly due to new logistics locations. The first-time watt hours. Electricity consumption in 2017 dropped inclusion of Intervalor in Brazil also contributed to Society by 1 percent to 852,200 megawatt hours (previous an increase in ­electricity consumption. Electricity Heat Fuel Additional Information year: 860,600 megawatt hours). The use of heating and cooling rose slightly in 2017 to 732,500 mega- Fleet fuel use fell by 4 percent in 2017 compared to watt hours (previous year: 727,800 megawatt hours). 2016, from 84,500 to 80,800 megawatt hours. While Developments in the ­individual business segments almost all corporate divisions reported a decline, fuel GRI Content Index differ considerably. consumption increased slightly at Arvato.

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At 96.9 megawatt hours (per €1 million in con- >> Environmentally Friendlier Production: >> Impulse: The UFA production “Unter Uns” sets Foreword solidated sales), specific energy consumption in ­Prinovis UK, a member of the Bertelsmann a good example: in 2017 the series’ crew and About this Report 2017 remained below the previous year’s figure of Printing Group, received the silver award at the actors began using reusable cups and sustain- 99.1 megawatt hours. 2017 EEF Future Manufacturing Awards for ably produced thermos flasks instead of plastic Company Profile its efforts in reducing its carbon footprint and and paper cups. In addition, the use of a hybrid Corporate Management Other Selected Results for its environmentally friendly business pro- vehicle in conjunction with a power dispenser CR Management cesses. Also in 2017, the Random House in the series’ outside scenery sensitizes viewers >> Energy Savings: Approximately 1,200 mega- ­Publishing Group in Germany produced cli- to electric mobility. Employees watt hours of electricity was saved in Arvato mate-neutral books at selected publishers for >> Emissions Reduction: Since 2017, Arvato Media, Services and Education Systems’ ­Gütersloh data centers in 2017, the first time. In the year under review, emissions Financial Services, Mohn Media, the compared with the previous year. This saving, of 268,701 kg CO²e were offset by ­climate pro- Bertelsmann Corporate Center, Arvato CRM Environment which corresponds to the consumption of tection projects. and the ­Random House Publishing Group have Energy and Emissions 240 four-person households, was achieved by >> Renewable Engergies: More and more been offering their employees the opportunity­ Paper ­commissioning a new absorption chiller. Addi- Bertelsmann companies are using green elec- to lease a company ­bicycle at favorable terms. Additional Environmental Data tional energy ­savings were achieved by introduc- tricity. In 2017, the printing plant GGP Media and With this and ­numerous other mobility initia- ing ­energy-efficient IT at Arvato CRM’s sites the logistics site of Arvato SCM in ­Landsberg, tives, such as the annual Germany-­wide Fit-to- Society in Berlin and ­Tallinn. Penguin Random House among others,­ converted their electricity pur- Work campaign, Bertelsmann companies not Additional Information replaced more than 7,000 ceiling­ light bulbs chases to 100 percent green electricity. RTL City, only promote the health and fitness of their with LED lamps at its Broadway ­(New York) RTL Group’s headquarters in Luxembourg inau- employees but also contribute to climate pro- location. These bulbs not only consume less gurated in April 2017, is powered and heated by tection. energy, but are also more durable, made of non- a high-efficiency cogeneration unit and cooled by GRI Content Index toxic materials and are recyclable. thermo-active concrete and natural ventilation.

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Paper

Paper remains Bertelsmann’s most important purchased a total of 1.14 million tons of paper for Foreword “We seek the responsible, resource for its print media business. Printed its own use (previous year: 1.13 million tons). About this Report books, magazines, brochures and leaflets will The other ­quantities were provided to company efficient and considerate use continue to have a firm place in an increasingly printers by customers. Bertelsmann Printing Company Profile of paper in our entire value digitized media landscape. Still, ­conserving Group recorded declines in paper amounts due Corporate Management resources and avoiding waste play a major role to lower production volumes and at Gruner + chain.” for Bertelsmann all along its paper value chain. Jahr due to lower ­circulation ­figures in the print CR Management Bertelsmann Paper Policy Bertelsmann is committed to responsible paper media business. Office paper ­volumes in the Employees procurement that protect the forests ­invaluable other corporate ­divisions also declined. Penguin Media, Services and Education to climate protection and ­biodiversity. In their Random House recorded a slight increase due function as print service providers and buyers, to higher paper consumption­ in the UK publish- Environment companies in Bertelsmann’s service ­divisions ing business. Arvato also reported ­rising paper Energy and Emissions offer customers a comprehensive range of consumption, although ­packaging paper in par- Paper sustainably certified and climate-­neutral print ticular has not yet been fully recorded at some Additional Environmental Data ­products. logistics sites.

Society Objectives and Results Bertelsmann has an established paper policy for Additional Information Paper consumption accounts for the largest share paper purchasing, in addition to its environmental­ of Bertelsmann’s total raw material consump- policy. As part of its Group-wide environmental tion. Compared to 2016, it fell slightly by about objectives, Bertelsmann aims to achieve a share 22,000 tons (-1 percent) to 1.83 million tons in of more than 90 percent recycled paper and paper GRI Content Index 2017 (previous year: 1.85 million tons). Bertelsmann from certified sustainable forestry for paper it

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procures by 2020. Sustainable sources include Foreword Paper Procurement in thousands of metric tons Objective for the Procurement of Paper recycled paper as well as paper of certified origin from Sustainable Sources in percent About this Report that meets the requirements of FSC®, PEFC™, 2,000 SFI® or comparable standards. The company 91% 90% Company Profile 100 is committed to certified sustainable forestry. 1,500 Corporate Management For example, no wood from primeval or pro- 80 60% CR Management tected forests may be used in paper production. 1,000 60 Bertelsmann also ensures that the paper used 40 Employees has the highest possible recycling content in 500 20 Media, Services and Education addition to certified wood fibers. 0 0 Environment In 2017, paper from sustainable sources accounted 2016 2017 2014 2017 2020 Energy and Emissions for 91 percent of the total volume purchased Total amount of paper Share of paper bought by Bertelsmann: Paper by Bertelsmann companies. This represents an Recycled Certified Additional Environmental Data increase of 5 percentage points over the previ- Paper bought by Bertelsmann: ous year (86 percent). Recycled Certified Other Objective Society Additional Information While printers and publishers in particular were able to reach the objective of 90 percent by The significant increase in sustainably procured well as to changes in customer ordering ­behavior. 2017, a number of Group units are still working securities since 2014 is partly due to the gradual In 2017, the share of FSC- or PEFC-certified on transparency and the further conversion of conversion of procurement and the increase in paper in self-procured volumes was 70 ­percent GRI Content Index their procurement sources. transparency and traceability of certified papers, as (previous year: 64 percent). The proportion of

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recycled paper was 21 percent (previous year: >> Mohn Media also further increased the share of Foreword 22 percent). sustainably procured paper. While the ­quantities About this Report procured in-house were almost entirely from Other Selected Results recycled fibers or certified virgin fibers, the Company Profile share of sustainable paper, including the Corporate Management >> Penguin Random House UK significantly quantities provided by customers, was over CR Management increased the proportion of sustainably 95 percent. ­certified paper from 85 percent to 92 ­percent. >> Since 2017, songwriters at BMG have been able Employees UK ­publishers are pursuing the goal of using to use the “MyBMG” app to view income from Media, Services and Education 100 percent FSC-certified paper by 2020. their titles. By dispensing with paper account Penguin Random House US has reached its statements, around 30,000 kilograms of paper Environment objective ahead of schedule, procuring was saved within one year. Energy and Emissions 100 percent of its paper from certified sources. Paper >> Gruner + Jahr was also able to increase the share Additional Environmental Data of certified paper by just under 10 percent, from 88 percent to over 97 percent, already exceed- Society ing its own objective of 90 percent for 2020. Additional Information >> Prinovis Germany once again reported an increase of 40,000 tons in certified paper ­volumes. This means that almost all paper pur- chased for the three German production sites is GRI Content Index FSC- or PEFC-certified.

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Additional Environmental Data

Data on water consumption, wastewater and waste Foreword Water Consumption and Wastewater in cubic meters volume are also collected Group-wide as part of About this Report the annual environmental data collection. Based on this data, trends and potential for improve- 5,000,000 Total volume of water extracted Company Profile ment can be identified. Due to the different Wastewater Corporate Management local ­relevance and regulation of water and waste 4,000,000 CR Management manage­ment, businesses mainly deal with these issues on the local level. 3,000,000 Employees 2,000,000 Media, Services and Education Water Consumption and Wastewater In the 2017 financial year, water consumption from Environment public supplies and the company’s own wells fell to 1,000,000 Energy and Emissions a total of 4.69 million cubic meters (previous year: 0 Paper 4.87 million cubic meters). This 4 percent decline 2016 2017 Additional Environmental Data can be attributed to, among other things, lower con- sumption at the Bertelsmann Education Group and Society the RTL Group. Gruner + Jahr consumed slightly Additional Information more well water, while ­Arvato’s water consump- tion increased significantly due to new locations In 2017, wastewater discharge decreased in line reporting for the first time. Water consumption in with the decrease in water consumption, by the other corporate divisions remained stable com- 1 percent from 3.93 million cubic meters to GRI Content Index pared with the previous year. 3.89 million cubic meters.

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Waste Breakdown of Waste in percent Foreword Overall waste volumes fell slightly by 2 percent to About this Report 314,600 tons in 2017 (previous year: 319,600 tons). While the figures remained largely unchanged in 4 (PY: 4) 96 (PY: 96) Company Profile waste for waste for most corporate divisions, the volume of waste disposal recycling Corporate Management reported at Penguin Random House decreased CR Management ­significantly by 17 percent. 314,600 tons Employees Only Arvato recorded an increase due to new foreign (PY: 319,600) Media, Services and Education locations. More than 96 percent of waste is recycled, the majority of it being paper waste from printing Environment plants and warehouses. The remaining waste is for Energy and Emissions disposal (4 percent). Hazardous waste accounted Paper for well below 1 percent of total waste. Additional Environmental Data

Society Additional Information

GRI Content Index

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Foreword About this Report Citizenship is firmly anchored in Bertelsmann’s Company Profile corporate culture. The Group aspires to make >3.4 million Corporate Management a valuable contribution to society with its books donated by Penguin CR Management products and services. Random House Employees Media, Services and Education Environment Society >100,000 Donations, Sponsorship and Projects Help through Media and Services >€20 million Promoting Media Literacy scholarships from the Additional Information funds raised for charity during learning and further RTL Group flagship events education platform Udacity

GRI Content Index

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Bertelsmann sees itself as part of society. As one of pay dividends for the company’s success by sup­ the company’s strategy. At the Group level, Foreword the four Bertelsmann Essentials, corporate citizen­ porting its “license to operate”; that is, ­enhancing Bertelsmann Corporate Communications is respon- About this Report ship is deeply rooted in the corporate culture and, the ­community’s acceptance of Bertelsmann. sible for donations and sponsorship. with it, the daily activities of the Group, its divi- Company Profile sions and companies. In this sense, Bertelsmann Donations, Sponsorship and In line with the principle of decentralization, Corporate Management strives to be a “good citizen” through its positive the divisions independently select sponsorship CR Management ­contributions to society. This also includes the Group Projects projects and donations, steered by the Execu- contributing its media, services and education­ tive Board Guideline and in coordination with Employees ­competence, the expertise of its ­employees, and Donations, sponsorship, funding for charitable Corporate Communications. The Chair & CEO Media, Services and Education financial assistance where help and support are ­projects and memberships are an expression of decides on one-off donations and sponsorships needed outside the company. responsible behavior and support Bertelsmann’s role ­exceeding €100,000, as well as regular commit- Environment as a good corporate citizen worldwide. Carefully ments exceeding €50,000. All commitments must Society Bertelsmann in Society planned and professionally implemented ­support be reported annually to the Group tax depart- As a media, services and education company, measures boost the company’s reputation and ment to ­fulfill related due diligence and compli- Donations, Sponsorship and Projects ­Bertelsmann’s activities are interwoven with anchor Bertelsmann as a responsible partner in the ance ­obligations with the Bertelsmann Executive Help through Media and Services ­societal development around the world. ­Society communities where it operates. Board. Group companies are also required to Promoting Media Literacy and our employees expect the company to define and document their donation activities and Additional Information play an active role beyond its own businesses. Guidelines, Structures and Processes sponsorship concepts and keep these documents ­Bertelsmann’s corporate social responsibility The Executive Board’s Guideline on Donations, for a period of five years. The general prerequi- efforts, on the Group, divisional and company Sponsorships and Memberships ensures that sites of the ­Executive Board’s Anti-corruption­ level, encompass a wide range of measures and ­support measures in the form of donations, ­Policy are thus complied with. Any cases of doubt GRI Content Index sponsor­ship programs that involve and develop sponsor­ship and membership comply with legal are coordinated and clarified with the ­Integrity & local communities. By the same token, these efforts and fiscal requirements and are consistent with Compliance department. ← ← ← Corporate Responsibility Society 83 103 Report 2017

Bertelsmann’s priorities for its corporate citizenship where its companies operate, giving prefer- Foreword “In the view of our shareholders, the activities, based on the Executive Board Guideline ence to ­organizations and initiatives in which About this Report on Donations, Sponsorships and Memberships, Bertelsmann employees are actively involved. possession of property creates an are as follows: The company also supports humanitarian disas- Company Profile obligation to the community. They ter relief efforts. believe that in a market economy Corporate Management >> Education, especially for socially ­disadvantaged a corporation derives its legitimacy CR Management groups and media-related issues (e.g., reading Bertelsmann does not donate to politicians, promotion, media literacy); ­political parties or organizations affiliated with from making a valuable contribution Employees >> Culture, particularly promoting cultural heri- parties. Similarly, it does not support organiza- to society.” Media, Services and Education tage and newcomers in fields closely associated tions and institutions whose fundamental posi- with Bertelsmann (e.g., literature, TV, movies); tion conflicts with liberal-democratic principles, Bertelsmann Essentials Environment >> Academic Research, especially on topics or which allow or imply discrimination against Society closely associated with Bertelsmann, such as people. Bertelsmann also does not engage in economic and social sciences, as well as media sports sponsorship. Donations, Sponsorship and Projects and communications science; Help through Media and Services >> Freedom in creativity and media, especially Objectives and Results Promoting Media Literacy freedom of expression and press freedom, Bertelsmann seeks to contribute to the future-­ Additional Information ­protection of intellectual property, content oriented development of its surroundings through responsibility, and editorial independence; donations, sponsorship and charitable activities, >> Networking activities with relevant stakeholders. while at the same time securing acceptance and a broad client base. The goal is to reach as many GRI Content Index As a good corporate citizen, Bertelsmann people as possible, create a positive impact on is especially committed to the locations society and increase Bertelsmann’s visibility. ← ← ← Corporate Responsibility Society 84 103 Report 2017

Selected donations and projects by thousands of items from the famous collection for the fifth time. Through the UFA Film Foreword Corporate Center ­documenting the history of Italian opera have Nights, the company seeks to contribute to About this Report been available for viewing and research via the the protection of German cinematic heritage >> Digitization of movie classics: As an interna- Collezione ­Digitale online ­platform. “Opera: by keeping cinematic masterpieces alive in Company Profile tional media company, Bertelsmann ­promotes Passion, Power and Politics” was the title of the public’s perception. Corporate Management the preservation and restoration of early cin- an exhibition on the ­history of opera presented >> Citizenship activities in the Gütersloh area: CR Management ematic masterpieces and is committed to by ­London’s renowned ­Victoria and Albert Bertelsmann supported the Gütersloh ­Theater, the ­digitization of its heritage. Bertelsmann Museum in 2017. Among other ­exhibits, it dis- local school libraries, and several schools and Employees ­presented the digitally restored silent film played sheets from the ­original score, libretto kindergartens in 2017. At Christmas, the Media, Services and Education “­Destiny” (­original ­German title: “Der müde and contract documents for Giuseppe Verdi’s company donated €25,000 to “Der Weg nach Tod”) by ­master ­director Fritz Lang as one “Nabucco” from the Archivio Storico Ricordi Hause”, a palliative care provider in Bielefeld, Environment of the highlights of the German film festival in Milan. for the 11th consecutive year. Bertelsmann Society “KINO! 2017” in New York. “Der müde Tod” >> UFA Film Nights: In August 2017, Bertelsmann also made in-kind donations to various organi­ was also screened at the ­2017 German Film and the RTL Group film production company zations, including more than 4,500 books. Donations, Sponsorship and Projects ­Festival in Paris. UFA presented the seventh UFA Film Nights in ­ Other highlights in 2017 included Blue Sofa Help through Media and Services >> Digital history of opera: Milan-based Archivio Berlin. On three evenings, early classics of events with authors Wladimir Kaminer and Promoting Media Literacy Storico Ricordi is one of the world’s most cinema history were shown in the open air, Christine ­Westermann at the Gütersloh Additional Information ­valuable privately-owned music collections. with live musical accompaniment. In the year ­Theater, and a visit by YouTube star Eskay to Since 2011, a project group from Bertelsmann of UFA’s centennial, the event also served as the ­Evangelisch Stiftisches Gymnasium high and the Ricordi team in Milan have worked part of the anniversary celebrations. In 2017, school. In 2017, Bertelsmann sponsored some on the indexing and long-term preservation of Bertelsmann, the Palais des Beaux-Arts event 245 organizations, associations and projects GRI Content Index the collection to preserve­ the archived mate- center (Bozar) and Belgium’s Cinematek also in Gütersloh with a total of approximately rials for posterity. Since December 2016, jointly hosted the UFA Film Nights in Brussels €265,000. ← ← ← Corporate Responsibility Society 85 103 Report 2017

Selected donations and projects by the has supported the integration of disadvantaged involved in a number of local public welfare Foreword divisions young people into the labor market through ­projects. Corporate Center Brazil ­employees About this Report financial donations, fundraising and ­volunteer volunteered at three organizations in São >> Aid projects in Hamburg: As part of its annual activities. In 2017, a total of approximately Paulo helping disadvantaged schoolchildren Company Profile Christmas Bazaar project, in 2017 Gruner + Jahr £34,000 GBP was raised and donated. and teens. The China Corporate ­Center spon- Corporate Management donated approximately €12,000 to five nonprofit >> Local donations: At its Baden-Baden site, Arvato sored the “Teach for China” initiative in ­Yunnan CR Management projects that work to improve cooperation and Financial Solutions donated more than €15,500 ­Province for the third consecutive year, donat- understanding in the Hamburg area. Since 2000, to six different social institutions in 2017. In ing €25,000 in 2017. "Philanthropy Day” was Employees €850,000 has been donated in this way. Gütersloh and Verl, where the company also has celebrated across Bertelsmann subsidiaries in Media, Services and Education >> Aid project in the Philippines: In 2017, Arvato branches, donations of over €20,000 were raised India where employees supported four NGOs Financial Solutions donated €30,000 to the during the same period and donated to four local with financial and in-kind donations. They also Environment global children’s aid organization Plan Interna- charitable organizations. raised a common pool of funds towards NGO Society tional Germany as part of its Christmas cam- >> Phonedation support network in Africa: projects supporting education and entrepre- paign. The donation will fund a project that Arvato CRM’s Phone Group set up a network neurship, gender equality, health and eco-­ Donations, Sponsorship and Projects fights child trafficking in the Philippines. to promote environmental and educational proj- efficiency. Both measures were among the Help through Media and Services >> “erlebe IT” Initiative: Arvato Systems sup- ects for children through voluntary activities and first CR ­projects carried out by the Corporate Promoting Media Literacy ported the Bitkom school initiative erlebe IT, donations. In 2017, 830 people volunteered to Responsibility Committee, which had been Additional Information which is dedicated to teaching digital skills in participate in 13 local initiatives such as collect- formed by representatives from all Indian schools through training courses and program- ing 2.2 tons of clothing and offering 600 school Bertelsmann divisions in 2017. ming workshops, by providing personnel and bags to children in need. financial support of €15,000. >> Citizenship in growth regions: Bertelsmann Measures to promote media literacy and reading GRI Content Index >> Support of “The Prince’s Trust”: As a patron subsidiaries and their Corporate Centers in are described under →Promoting Media Literacy, of the charity since 2014, Arvato UK & Ireland growth regions Brazil, China and India are p. 88. ← ← ← Corporate Responsibility Society 86 103 Report 2017

Help through Media and Services

Bertelsmann and its divisions support nonprofit Udacity announced more than 100,000 scholar­ “Save the Children” in support of Syrian refugee Foreword projects and initiatives around the world through ships, 75,000 of them in the EU. The offer children. In 2017, around €250,000 was raised About this Report media and public fundraising. In addition, some enables successful applicants to acquire addi- and total donations in the four years of the cam- Bertelsmann divisions and companies make tional IT qualifications in the form of Nano- paign exceed €1 million. Company Profile employee time and expertise available for corpo- degrees. An especially extensive scholarship >> Gruner + Jahr volunteering program: Since Corporate Management rate volunteering programs. program is funded by partners Google and 2008, employees and managers have volun- CR Management Bertelsmann, and is aimed at both employ- teered their time in the Gruner + Jahr Commit­ Selected Results ees and external talent. The European Commis- ment corporate volunteering program. For each Employees sion recognized the program with its “European day they take off to volunteer for a social or char- Media, Services and Education >> RTL-Spendenmarathon and Télévie: In 2017, the ­Digital Skills Award 2017.” ity institution, all employees can apply for another 22nd RTL-Spendenmarathon telethon, Medien- >> Volunteering activities at Penguin Random day of paid leave (up to three days per year). Environment ­gruppe RTL Deutschland’s main fundraiser, raised House: By the end of 2020, Penguin In addition, ­employees who donate their own Society approximately €9.2 million for charity. This Random House will make 250,000 working money to a project can apply for Gruner + Jahr to brings the total sum raised since 1996 to over hours available for employees to participate in make a matching donation of up to three times Donations, Sponsorship and Projects €161 ­million. Likewise, the Télévie fundraising ini- company-organized initiatives, or to volunteer the amount (€3,333 maximum).­ Help through Media and Services tiative, a collaboration with RTL Belgium and RTL with organizations they personally support. >> Online fundraising for a good cause: The Promoting Media Literacy Luxembourg, has raised more than €173 million >> “A Scarf for Life” campaign: In 2017, the online fundraising platform Omaze offers users Additional Information since 1989 for the Belgian Fonds de la Recher- Gruner + Jahr magazine “Brigitte” joined the the chance to win special prizes when they che Scientifique for the research and treatment world’s largest independent children’s rights donate for a good cause. The principle is simi- of cancer, especially leukemia. Over €11 million organization “Save the Children” in organizing lar to traditional charity auction formats, where, was raised in 2017 alone. the fourth “A Scarf for Life” campaign. It called for example, a meeting with an actor or a pro- GRI Content Index >> More than 100,000 Udacity scholarships: on people to buy or knit a scarf according to a fessional sportsman can be bid for at auction. In 2017, the learning and education platform provided pattern. For each scarf, €10 went to At Omaze, users can support projects with ← ← ← Corporate Responsibility Society 87 103 Report 2017

donations starting at just $10 and in return get >> Random House supports book installa- Foreword the chance to win a prize. The online platform tion at documenta 14: Random House About this Report reaches significantly more people and thus donated around 2,000 books for the docu- potential donors in this way. The start-up, in menta ­project “The Parthenon of Books” by the Company Profile which Bertelsmann Digital Media Investments ­artist Marta ­Minujín. A statement against book Corporate Management owns a stake, carried out more than 220 fund- ­banning and the persecution of authors, all the CR Management raising campaigns in 2017. donated titles have been or remain banned in >> Arvato debt counseling: Arvato Financial some countries. Employees ­Solutions has supported the Diakonisches Werk >> Online training for health workers in Haiti: Media, Services and Education in Nordbaden with an annual financial donation In 2017, the online education provider Relias of €10,000 since it established its debt counsel- implemented a pilot project to provide free Environment ing program in 2009. Arvato also provides its access to online tutorials for Haitian nurses, Society expert services and consultation. Other Arvato doctors and health workers. To date, more sites carry out similar volunteer activities on than 30 ­people have participated in the train- Donations, Sponsorship and Projects their own initiative. ing courses with around 1,000 patients profiting Help through Media and Services >> Free hotline for a good cause: Arvato CRM from treatment in Port-au-Prince. Aditionally, Promoting Media Literacy ­Solutions Italy has provided professional sup- the company, which is part of the Bertelsmann Additional Information port to the Dynamo Camp hotline free of charge Education Group, plans to make more than a since July 2017. The facility in Tuscany is dedi- quarter of its employees available to volunteer cated to recreational therapy for chronically ill at least one day in 2018, contributing $50 to children and teenagers. Arvato’s efforts enable each employee’s personal donations. GRI Content Index the Dynamo Camp staff to devote their time entirely to the children. ← ← ← Corporate Responsibility Society 88 103 Report 2017

Promoting Media Literacy

As a key skill of our time, media literacy has major organizations, which provide books to children >> Literacy Promotion: In 2017, Penguin Foreword implications for the education and development and teenagers. Since 2007 Gruner + Jahr has Random House India continued the “Penguin About this Report opportunities of children, adolescents and adults. been the main sponsor of “Buchstart,” a long- ­Readathon” and its “Book Gifting Journey” By promoting relevant education measures, espe- term early-childhood literacy initiative. The pub- to get people from different backgrounds Company Profile cially in literacy and reading, Bertelsmann makes lishing house also supports the Germany-wide excited about reading. To this end, the company Corporate Management an important contribution to societal development. “Lesestart” project run by the Stiftung Lesen donated books to partner organizations and CR Management The company is guided by the principle of help- (Reading Foundation). Prinovis UK continues held readings. In Brazil, Penguin Random House ing people to help themselves at an early stage, to support the “Vision for Literacy Business Grupo Editorial, together with the Foundation Employees because only those who actively experience, Pledge” initiative to promote literacy in the for the Support of Prisoners (FUNAP), launched Media, Services and Education explore and question, as children, what they can do United Kingdom. The company also joined its the “Reading to Reduce Sentences” project. with the media will be able to use it competently in charity partner “The Reader” in organizing a Additionally, monthly mentoring on literature Environment future – as active readers, and as technically savvy two-day “Storytelling Adventure” at an elemen- and the classics takes place at 12 state prisons Society and critical users. tary school in Liverpool. in São Paulo, with books also donated. >> Book donations: One important element in >> Digital literacy for children and teens: Donations, Sponsorship and Projects Selected Results promoting reading and literacy is providing free Bertelsmann companies take a variety of Help through Media and Services reading material. Bertelsmann’s most prominent approaches to helping children and teens use Promoting Media Literacy >> Reading days: Every year, Bertelsmann and its book donor is the Penguin Random House divi- digital media competently and responsibly. Additional Information divisions host numerous events for World Book sion. Its target is to donate more than 15 ­million ­Projects and initiatives in the field of digital skills Day on April 23, as well as for Germany’s Read- books to schools and educational programs by promotion for young media users are described ing Day. 2020, to promote reading among children in in greater detail in →Content Responsibility, p. 60. >> Reading initiatives: Among other things, need around the world. During the same period, GRI Content Index Penguin Random House supports the “First 3 ­million e-books are to be made available to Book,” “Save the Children” and “World Reader” schools and libraries in sub-Saharan Africa. ← ← ← Corporate Responsibility 89 103 Report 2017 Additional Information

Foreword About this Report Company Profile Corporate Management CR Management Employees Media, Services and Education Environment Society Additional Information

List of Relevant CR Topics GRI Content Index Production Credits and Contact

← ← ← Corporate Responsibility Additional Information 90 103 Report 2017 List of Relevant CR Topics

Foreword CR Topic at Bertelsmann GRI Aspects Boundary/Scope Basis: GRI Standards 2016 and Cf. GRI Standards Glossary 2016, p. 17 About this Report GRI Media Sector Disclosures Integrity/Compliance Company Profile Antitrust Compliance > Anti-competitive Behavior > Inside the company Corporate Management Data Protection & Privacy > Customer Privacy > Inside the company

CR Management Diversity > Diversity and Equal Opportunity > Inside the company

Employees > Non-discrimination > Inside the company, outside the company Media, Services and Education Fair Working Conditions > Employment > Inside the company > Labor/Management Relations > Inside the company Environment > Freedom of Association and Collective Bargaining > Inside the company, outside the company Society > Child Labor > Outside the company

Additional Information > Forced or Compulsory Labor > Outside the company

List of Relevant CR Topics Creative/Journalistic Independence > Freedom of Expression and Opinion > Inside the company, outside the company GRI Content Index > Content Production > Inside the company, outside the company Production Credits and Contact Paper > Materials > Outside the company

Intellectual Property & Copyright > Protection of Intellectual Property > Inside the company

Learning > Training and Education > Inside the company

← ← ←

GRI 102-46, 102-47 Corporate Responsibility Additional Information 91 103 Report 2017

Foreword CR Topic at Bertelsmann GRI Aspects Boundary/Scope Basis: GRI Standards 2016 and Cf. GRI Standards Glossary 2016, p. 17 About this Report GRI Media Sector Disclosures Content Responsibility > Marketing and Product Labelling > Inside the company, outside the company Company Profile > Content Dissemination > Inside the company Corporate Management > Media Literacy > Inside the company, outside the company

CR Management Employee Participation

Employees Health > Occupational Health and Safety > Inside the company Media, Services and Education Anti-corruption & Bribery > Anti-corruption > Inside the company, outside the company Further Topics > Energy > Inside the company, outside the company Environment > Water > Inside the company, outside the company Society > Emissions > Inside the company, outside the company

Additional Information > Effluents and Waste > Inside the company, outside the company

List of Relevant CR Topics > Economic Performance > Inside the company, outside the company GRI Content Index > Local Communities > Inside the company Production Credits and Contact > Public Policy > Inside the company

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GRI 102-46, 102-47 Corporate Responsibility Additional Information 92 103 Report 2017 GRI Content Index

Foreword General Disclosures

About this Report Disclosures Page/Comments UNGC¹ Further Information Company Profile GRI 101: Foundation 2016 Corporate Management GRI 102: General Disclosures 2016 CR Management Organizational Profile Employees GRI 102-1: Name of the organization 12 Media, Services and Education GRI 102-2: Activities, brands, products, and 6, 9, 10 ↗Annual Report 2017 (Entrepreneurship and Environment services Creativity) ↗Corporate Website: Company Profile Society GRI 102-3: Location of headquarters Gütersloh, Germany

Additional Information GRI 102-4: Location of operations 6, 7 ↗Corporate Website: Locations

List of Relevant CR Topics GRI 102-5: Ownership and legal form 12, 13 GRI Content Index GRI 102-6: Markets served 7, 9, 10 Production Credits and Contact GRI 102-7: Scale of the organization 6, 7, 8, 10, 55 ↗Annual Report 2017 (Financial Information), p. 5, 47

GRI 102-8: Information on employees and other 35, 38, 40 VI ↗Corporate Website: Employee Figures workers

GRI 102-9: Supply chain 9, 10

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Disclosures Page/Comments UNGC¹ Further Information

GRI 102-10: Significant changes to the 8 organization and its supply chain

GRI 102-11: Precautionary Principle or approach 16, 17, 19, 31, 32 ↗Annual Report 2017 (Financial Information), p. 29 ff. Foreword GRI 102-12: External initiatives 12, 16, 17, 24, 37, 59, 62

About this Report GRI 102-13: Membership of associations 24 ↗Corporate Website: Memberships and cooperations Company Profile Strategy Corporate Management GRI 102-14: Statement from senior 3 CR Management decisionmaker

Employees Ethics and Integrity

Media, Services and Education GRI 102-16: Values, principles, standards, and 15, 17, 18, 19, 36, 37, 44, 45, 57, 58, 64, 68, 69, 83 I-X ↗Corporate Website: Bertelsmann Essentials norms of behavior ↗Corporate Website: Bertelsmann Code of Conduct Environment ↗Corporate Website: Bertelsmann Supplier Code of Conduct Society Governance Structure Additional Information GRI 102-18: Governance structure 12–14 ↗Annual Report 2017 (Financial Information), List of Relevant CR Topics p. 136 ff. GRI Content Index Stakeholder Engagement Production Credits and Contact GRI 102-40: List of stakeholder groups 25 ↗Corporate Website: Stakeholder Dialogue

GRI 102-41: Collective bargaining agreements 18 III

GRI 102-42: Identifying and selecting 25 ↗Corporate Website: Stakeholder Dialogue stakeholders

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Disclosures Page/Comments UNGC¹ Further Information

GRI 102-43: Approach to stakeholder 25–28, 38, 39 ↗Corporate Website: Stakeholder Dialogue engagement

GRI 102-44: Key topics and concerns raised 28–30, 38, 39 ↗Corporate Website: Topics

Foreword Reporting Practice About this Report GRI 102-45: Entities included in the consolidated 4, 6 ↗Corporate Website: Subsidiaries and financial statement Participations Company Profile GRI 102-46: Defining report content and topic 28, 29, 90, 91 Boundaries Corporate Management GRI 102-47: List of material topics 90, 91 CR Management GRI 102-48: Restatements of information 4 Employees GRI 102-49: Changes in reporting none

Media, Services and Education GRI 102-50: Reporting periods 4

Environment GRI 102-51: Date of most recent report 4

Society GRI 102-52: Reporting cycle 4 annual Additional Information GRI 102-53: Contact point for questions 103 ↗Corporate Website: Contacts List of Relevant CR Topics regarding the report GRI Content Index GRI 102-54: Claims of reporting in accordance to 4 Production Credits and Contact the GRI Standards GRI 102-55: GRI content index 92–102

GRI 102-56: External assurance none

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Relevant topics

Disclosures Page/Comments UNGC¹ Further Information

GRI 201: Economic Performance 2016

Foreword GRI 103: Management Approach 2016 7, 8 I-X ↗Annual Report 2017 (Financial Information) (including GRI 103-1, 103-2, 103-3) ↗Annual Report 2017 (Entrepreneurship and About this Report Creativity), p. 11 ff. GRI 201-1: Direct economic value generated and 7, 81, 84, 85, 87, 88 ↗Annual Report 2017 (Financial Information), Company Profile distributed p. 45 f.

Corporate Management M1: Significant funding and other support 8 received from nongovernmental sources CR Management (ads etc.) Employees GRI 205: Anti-Corruption 2016 Media, Services and Education GRI 103: Management Approach 2016 17–20 X ↗Corporate Website: Anti-corruption (including GRI 103-1, 103-2, 103-3)

Environment GRI 205-2: Communication and training about 20 X ↗Corporate Website: Compliance Training anti-corruption policies and procedures Initiatives Society GRI 206: Anti-competitive Behavior 2016 Additional Information GRI 103: Management Approach 2016 17, 20 List of Relevant CR Topics (including GRI 103-1, 103-2, 103-3) GRI Content Index GRI 206-1: Legal actions for anti-competitive The Bertelsmann Annual Report contains more informa- ↗Annual Report 2017 (Financial Information), Production Credits and Contact behavior, anti-trust, and monopoly practices tion on this. p. 33 GRI 301: Materials 2016

GRI 103: Management Approach 2016 68–70, 76, 77 VII-VIII ↗Carbon Footprint 2017 (including GRI 103-1, 103-2, 103-3) ↗Corporate Website: Paper

GRI 301-1: Materials used by weight or volume 76, 77 VII-VIII ↗Carbon Footprint 2017

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Disclosures Page/Comments UNGC¹ Further Information

GRI 301-2: Recycled input materials used 77, 78 VIII ↗Carbon Footprint 2017 GRI 302: Energy 2016

GRI 103: Management Approach 2016 68–71 VII-IX ↗Corporate Website: Energy and Emissions Foreword (including GRI 103-1, 103-2, 103-3) ↗Carbon Footprint 2017 About this Report GRI 302-1: Energy consumption within the 71, 73–75 VII-VIII ↗Carbon Footprint 2017 organization

Company Profile GRI 302-3: Energy intensity 75 VIII ↗Carbon Footprint 2017

Corporate Management GRI 302-4: Reduction of energy consumption 74, 75 VIII-IX ↗Carbon Footprint 2017 CR Management GRI 303: Water 2016 Employees GRI 103: Management Approach 2016 68–69, 79 VII-VIII ↗Carbon Footprint 2017 (including GRI 103-1, 103-2, 103-3)

Media, Services and Education GRI 303-1: Water withdrawal by source 79 VII-VIII ↗Carbon Footprint 2017 Environment GRI 305: Emissions 2016

Society GRI 103: Management Approach 2016 68–71, 73 VII-IX ↗Corporate Website: Energy and Emissions (including GRI 103-1, 103-2, 103-3) ↗Corporate Website: Carbon Footprint Additional Information ↗Carbon Footprint 2017

List of Relevant CR Topics GRI 305-1: Direct (Scope 1) GHG emissions 71–73 VII-VIII ↗Carbon Footprint 2017

GRI Content Index GRI 305-2: Energy indirect (Scope 2) GHG 71–73 VII-VIII ↗Carbon Footprint 2017 Production Credits and Contact emissions

GRI 305-3: Other indirect (Scope 3) GHG 72–74 VII-VIII ↗Carbon Footprint 2017 emissions

GRI 305-4: GHG emissions intensity 71 VIII ↗Carbon Footprint 2017

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Disclosures Page/Comments UNGC¹ Further Information

GRI 306: Effluents and Waste 2016

GRI 103: Management Approach 2016 68–70, 79 VIII ↗Carbon Footprint 2017 (including GRI 103-1, 103-2, 103-3) Foreword GRI 306-1: Water discharge by quality and 79 VIII ↗Carbon Footprint 2017 destination About this Report GRI 306-2: Waste by type and disposal method 80 VIII ↗Carbon Footprint 2017 Company Profile GRI 401: Employment 2016

Corporate Management GRI 103: Management Approach 2016 33, 34, 36, 37 I, III, VI ↗Corporate Website: Employees (including GRI 103-1, 103-2, 103-3) CR Management GRI 401-1: New employee hires and employee Bertelsmann does not currently publish information VI ↗Corporate Website: Employee Figures Employees turnover on employee recruitment or fluctuation. This data, ­categorized by age, gender and region, is not yet fully Media, Services and Education available and of insufficient quality for publication. Environment GRI 402: Labor/Management Relations 2016 GRI 103: Management Approach 2016 34, 36–38 III ↗Corporate Website: Employee Participation Society (including GRI 103-1, 103-2, 103-3)

Additional Information GRI 402-1: Minimum notice periods regarding 38 III operational changes List of Relevant CR Topics GRI Content Index GRI 403: Occupational Health and Safety 2016 Production Credits and Contact GRI 103: Management Approach 2016 34, 36, 51–53 I, VI ↗Corporate Website: Health (including GRI 103-1, 103-2, 103-3) ↗Bertelsmann Health Website

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Disclosures Page/Comments UNGC¹ Further Information

GRI 403-2: Types of injury and rates of 54 injury, occupational diseases, lost days, and Bertelsmann does not report these figures by gender or absenteeism, and number of work-related with regard to freelance and external/third-party employ- fatalities ees, and does not provide any information on deaths. Due to the decentralized organizational structures in the field Foreword of occupational health and safety, this information is not centrally available at Bertelsmann. A central collection of About this Report this information is not currently planned. Company Profile GRI 404: Training and Education 2016 Corporate Management GRI 103: Management Approach 2016 34, 36, 41–43 I, VI ↗Corporate Website: Learning (including GRI 103-1, 103-2, 103-3) CR Management GRI 404-1: Average hours of training per year 42 VI Employees per employee Bertelsmann does not currently report these figures broken down by gender and other employee categories, since this Media, Services and Education information is not available centrally. Bertelsmann is con- tinuing to develop its data collection in this respect, and Environment plans to report on this in the medium term. GRI 404-2: Programs for upgrading employee 38, 41–43 ↗Corporate Website: Continuing Education Society skills and transition assistance programs Additional Information GRI 405: Diversity and Equal Opportunity 2016

List of Relevant CR Topics GRI 103: Management Approach 2016 34, 36, 44–48, 50 I, VI ↗Corporate Website: Diversity (including GRI 103-1, 103-2, 103-3) GRI Content Index Production Credits and Contact GRI 405-1: Diversity of governance bodies and 13, 45–50 I, VI employees GRI 406: Non-discrimination 2016

GRI 103: Management Approach 2016 18, 19 I-II, VI ↗Corporate Website: Anti-Discrimination (including GRI 103-1, 103-2, 103-3)

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Disclosures Page/Comments UNGC¹ Further Information

GRI 406-1: Incidents of discrimination and correc- Bertelsmann does not report case numbers, since such I-II, VI tive actions taken incidents are subject to special confidentiality require- ments. All reports of suspected compliance violations received are reviewed and examined in accordance with the procedures laid down in the Group Guidelines. If Foreword an infringement is confirmed, appropriate remediation measures are taken. Details on case categories, case About this Report numbers and total numbers of reports received are regu- larly reported to the Bertelsmann Corporate Compliance Company Profile Committee and the Executive Board. Further details on this are subject to trade secrecy provisions. Corporate Management GRI 407: Freedom of Association and Collective Bargaining 2016 CR Management GRI 103: Management Approach 2016 17, 18 I-III Employees (including GRI 103-1, 103-2, 103-3) Media, Services and Education GRI 407-1: Operations and suppliers in which 18, 19, 31 I-III the right to freedom of association and Environment collective bargaining may be at risk GRI 408: Child Labor 2016 Society GRI 103: Management Approach 2016 17, 18 I-II, IV Additional Information (including GRI 103-1, 103-2, 103-3)

List of Relevant CR Topics GRI 408-1: Operations and suppliers at 18, 19, 31 I-II, IV significant risk for incidents of child labor GRI Content Index Production Credits and Contact GRI 409: Forced or Compulsory Labor 2016

GRI 103: Management Approach 2016 17, 18 I-II, IV (including GRI 103-1, 103-2, 103-3)

GRI 409-1: Operations and suppliers at 18, 19, 31 I-II, IV significant risk for incidents of forced or compulsory labor

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MSD²: Freedom of Expression

GRI 103: Management Approach 2016 57, 58, 60 I-II ↗Corporate Website: Creative Independence (including GRI 103-1, 103-2, 103-3) ↗Corporate Website: Content Responsibility Foreword MSD²: Intellectual Property About this Report GRI 103 Management Approach 2016 65 I-II ↗Corporate Website: Protection of Intellectual (including GRI 103-1, 103-2, 103-3) Property Company Profile GRI 413: Local Communities 2016

Corporate Management GRI 103: Management Approach 2016 81–83 I ↗Corporate Website: Society (including GRI 103-1, 103-2, 103-3) ↗Corporate Website: Cultural Affairs CR Management GRI 413-1: Operations with local community 84, 85, 88 I ↗Corporate Website: Projects Worldwide Employees engagement, impact assessments, and development programs Media, Services and Education GRI 415: Public Policy 2016 Environment GRI 103: Management Approach 2016 26, 27, 83 I-X ↗Corporate Website: Public Affairs Society (including GRI 103-1, 103-2, 103-3) GRI 415-1: Political contributions 83 X Additional Information GRI 417: Marketing and Labeling 2016 List of Relevant CR Topics GRI Content Index GRI 103: Management Approach 2016 65, 66 I-VIII (including GRI 103-1, 103-2, 103-3) Production Credits and Contact GRI 417-1: Requirements for product and 65 ­service information and labeling

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Disclosures Page/Comments UNGC¹ Further Information

GRI 418: Customer Privacy 2016

GRI 103: Management Approach 2016 63, 64 I-II (including GRI 103-1, 103-2, 103-3) Foreword GRI 418-1 Substantiated complaints concerning 64 I-II breaches of customer privacy and losses of About this Report customer data Company Profile MSD²: Content Creation GRI 103: Management Approach 2016 56, 60, 61 I-II ↗Corporate Website: Content Responsibility Corporate Management (including GRI 103-1, 103-2, 103-3) ↗Corporate Website: Creative Independence

CR Management M3: Actions taken to improve adherence to 58, 60, 61 I-II content creation values, and results obtained Employees MSD²: Content Dissemination Media, Services and Education GRI 103: Management Approach 2016 58, 60–62 I-II ↗Corporate Website: Content Responsibility Environment (including GRI 103-1, 103-2, 103-3) ↗Corporate Website: Access to Media M4: Actions taken to improve performance in 58, 60–62 I-II ↗Corporate Website: Access to Media Society relation to content dissemination issues and results obtained Additional Information MSD²: Media Literacy List of Relevant CR Topics GRI Content Index GRI 103: Management Approach 2016 62, 83, 83, 88 I-II ↗Corporate Website: Media Literacy (including GRI 103-1, 103-2, 103-3) Production Credits and Contact M7: Actions taken to empower audiences 62, 88 I-II through media literacy skills development and results obtained

1) UN Global Compact. ← ← ← 2) Media Sector Disclosures. Corporate Responsibility Additional Information 102 103 Report 2017

Further GRI Standard Disclosures (Supplementary to “in Accordance, Core” Disclosures)

Disclosures Page/Comments UNGC¹ Further Information

GRI 102-15: Key impacts, risks, and 9, 16, 22, 28–32 opportunities Foreword GRI 102-17: Mechanisms for advice and 17–20 I-X ↗Corporate Website: Compliance concerns about ethics About this Report GRI 102-20: Executive-level responsibility for 12–14, 17, 22, 23, 36, 41, 45, 51, 64, 69, 82 ↗Corporate Website: CR Organization Company Profile economic, environmental, and social topics Corporate Management GRI 102-22: Composition of the highest 14, 48, 49 ↗Annual Report 2017 (Financial Information), governance body and its committees p. 137 ff. CR Management GRI 102-23: Chair of the highest governance 12 ↗Annual Report 2017 (Financial Information), Employees body p. 137 ff. Media, Services and Education Environment Society Additional Information

List of Relevant CR Topics GRI Content Index Production Credits and Contact

1) UN Global Compact. ← ← ← 2) Media Sector Disclosures. Corporate Responsibility Additional Information 103 103 Report 2017 Production Credits Contact

Publisher Photography Corporate Responsibility & Foreword Bertelsmann SE & Co. KGaA Sebastian Pfütze, Berlin, Germany Diversity Management About this Report Carl-Bertelsmann-Strasse 270 Phone: +49 (0) 5241-80-75021 33311 Gütersloh, Germany The representation of the world used in this report [email protected] Company Profile is simplified and does not claim to be true to scale Corporate Management Responsible or detail. Corporate Communications/ CR Management Marie-Luise Kühn von Burgsdorff Media Relations Head of Corporate Responsibility & Editorial deadline: March 30, 2018 Phone: +49 (0) 5241-80-2466 Employees Diversity Management [email protected] Media, Services and Education Project Lead and Head of Editorial Investor Relations Environment Thomas Hajduk Phone: +49 (0) 5241-80-2342 Society Manager Corporate Responsibility [email protected]

Additional Information Editorial Staff Recruiting Services List of Relevant CR Topics Lisa-Marie Heimes [email protected] GRI Content Index ↗www.createyourowncareer.com Production Credits and Contact Design and Production Territory CTR GmbH, Gütersloh, Germany

Professional Consultation akzente kommunikation und beratung GmbH, München, Germany ← ←