Building on Our Values CORPORATE SOCIAL RESPONSIBILITY REPORT T. ROWE PRICE | 2014 Quick facts about our firm As of December 31, 2014 Headquartered in Baltimore, Maryland, with offices in ABOUT THIS REPORT Accountability and transparency are funda- 14 TABLE OF CONTENTS mental to our business and, we believe, countries around the world essential to building and maintaining trust Founded in 1 About this report and confidence in our firm. In line with 2 A message from our president 3 Our values our timetable of publishing comprehen- 1937 5 Conducting business responsibly sive Corporate Social Responsibility (CSR) 6 Managing portfolio risk Managing 8 Committed to reducing our environmental impact Reports biannually and updates in the inter- 13 Building financial capability in communities vening years, this report spans the 2014 $692.4 14 Inspiring wise financial habits calendar year unless otherwise noted and 16 Nurturing collaborations sparked by a common vision billion in assets 19 Empowering our associates is a companion to our T. Rowe Price 2014 Employing over 20 Enabling associates to excel Annual Report1 and 2014 Proxy Statement.2 22 Extending our values to the community The information in this report reflects both 25 T. Rowe Price Foundation 5,800 26 Building partnerships, empowering communities the U.S. and international operations of associates worldwide 31 About T. Rowe Price T. Rowe Price Group, Inc., with financial data 31 Leadership presented in U.S. dollars.3 Together, they T. Rowe Price, through its subsidiaries, 32 A collaborative approach to corporate governance is a global asset manager focused on 34 Fostering a culture of integrity and ethics communicate our overall performance as an delivering investment management 35 Engaging on key industry issues excellence and retirement services that 36 Rewarding associates, investing in our future investment management firm as well as how investors can rely on now, and over the 37 Ensuring next-generation leadership our business conduct affects the community long term. We provide separate account management, subadvisory services, an and the environment. array of mutual funds, and recordkeeping and related services for institutions, As we continue to strengthen and inte- retirement plan sponsors, advisors, and individuals. We believe that adhering to grate our CSR efforts, we invite your feed- our principles—putting our clients’ interests first; following an active, disciplined back and welcome you to e-mail us at investment process rooted in proprietary [email protected]. research; and nurturing a collaborative culture where experienced professionals share insights in pursuit of durable solutions for clients—leads to better outcomes for our clients. 1 www.troweprice.com/annualreport2014 2 http://trow.client.shareholder.com/financials.cfm 3 As of December 31, 2014. Corporate Social Responsibility 2014 | 1 A MESSAGE FROM OUR PRESIDENT OUR VALUES Building on our heritage of integrity and values Our values guide our behavior and They are also the foundation that shape our culture. They are embedded supports us to help our clients achieve Our firm has always engaged in our business guided by a set of values that in the principles and practices that their long-term investment goals. our founder, Thomas Rowe Price, Jr., set forth more than 75 years ago— have served us well since our beginning. values which set a foundation for everything we do. In our first Corporate Act with integrity Social Responsibility Report (CSR) in 2011–2012, we began to share the Cultivate “ At T. Rowe Price, CSR story of our longstanding commitment to honoring and affirming these Put clients first intellectual curiosity is part of our holistic values. Today, I am pleased to present our 2014 report. Our view of conducting In this report, we continue to tell the In an effort to extend the reach of benefited from $7.5 million in grants Values business the right story of our CSR efforts, including our these tools and resources, we engage through the Foundation. Embrace Pursue excellence dedication to conducting business with national partners to help us way —from our core Looking ahead, we are excited about differences and with passion responsibly for our clients; helping positively affect those most in need collaboration and humility operations to our the momentum of our CSR work and promote financial education for kids; in our communities. Last year alone commitment to the and giving back to our communities our initiatives continued to have a look forward to building upon our Apply disciplined through financial support, outreach, direct impact in many communities, accomplishments. Every day we strive thinking and process communities where and volunteerism. reaching over 750,000 children, parents, to continue our legacy of being a good we live and work.” and educators. corporate citizen—always guided by our Our approach to CSR reflects our belief core values. And, as one of the largest Renee Christoff, in the deep connection between our Throughout 2014 we also concentrated employers headquartered in Baltimore, T. Rowe Price, Head of Corporate Social Responsibility actions and the growth and develop- on improving our results in other we are especially proud to be an integral Our approach to corporate social responsibility ment of the communities where we live CSR focus areas, such as finding part of our hometown. We continue “If we take care of our clients, they’ll We believe that investing in the and work. We know that our conduct ways to use natural resources more to identify how the firm can provide take care of us.” Our founder, Thomas communities where we live and as a corporate citizen has an impact far efficiently and reducing our impact on resources to help address the city’s Rowe Price, Jr., articulated this prin- work goes hand in hand with our beyond our walls. the environment. Through programs urgent needs and long-term issues. We ciple decades ago, and we have been longstanding culture of putting aimed at making meaningful progress are committed to making a strong, posi- building on his vision ever since. our clients’ needs first. Our client-first philosophy attracts and with the help of our associates, we tive impact on the local community now associates who possess a desire to have made significant strides in waste and in the future. help others and who believe that being reduction and recycling. For instance, part of a community means giving and On behalf of our more than 5,800 though our associate population has CSR Focus Areas serving. Our people are the reason increased by 30% since 2010, we associates worldwide, thank you for we are able to successfully carry out a have increased recycling by 79% and your interest as we continue to share variety of community initiatives year after decreased landfill waste by 49% during our progress. year. I am proud to say that in 2014, that same time frame. over 50% of our associates volunteered Sincerely, over 60,000 hours to nonprofits in our Finally, in this report, I am pleased to communities and pledged over $1.5 share the work of the T. Rowe Price Conducting Business Building Financial Empowering Our million through our annual Workplace Foundation, which is funded by dona- Responsibly Capability in Communities Associates Giving Campaign. tions from the firm. We are exception- ally proud of the long-term impact the Building financial capabilities in our Foundation’s support has had in our James A.C. Kennedy communities is a cornerstone in our communities. From its earliest days, CEO and President, commitment to social responsibility. the Foundation has been committed to T. Rowe Price Group Using proprietary research, we develop advancing education, arts and culture, tools and resources that assist kids, civic and community endeavors, and parents, and educators in learning or human services. In 2014, nonprofits teaching basic financial concepts. 2 | BUILDING ON OUR VALUES Corporate Social Responsibility 2014 | 3 CONDUCTING BUSINESS RESPONSIBLY We protect the long-term interests of our clients, associates, and stockholders by integrating responsible processes and approaches throughout our business efforts. In this section, we’ll discuss our environmental, social, and governance (ESG) strategy and how it impacts related topics, including port- folio risk management, investment analysis, engagement with portfolio companies, and associate engagement. “ Environmental, social, and governance considerations are important to many of our clients when implementing their investment strategies. It relates to better governance, risk diversification, strong demographic trends, and climate change, as well as the increase in global prosperity. As we integrate ESG issues in our investment analysis and portfolio construction, The newest buildings on our Owings Mills, Maryland, campus are designed we help our clients meet their goals.” to be friendly to the environment, earning LEED Gold certification, while Wim de Ruijter, offering associates a comfortable, professional atmosphere for collaboration. T. Rowe Price Amsterdam, Relationship Management Mid-Europe Corporate Social Responsibility 2014 | 5 MANAGING PORTFOLIO RISK We engage with portfolio How external factors As a global investment manage- incorporating environmental, social, Our Environmental, Social, companies in a variety of ways influenced our ment firm, we recognize the and governance considerations into and Governance Strategy Engaging with companies, we consider Light engagement investment