Creating shared value
www.pwc.com
The 2011 PwC China, Hong Kong, Singapore and Taiwan Corporate Responsibility report
Corporate Responsibility Report 2011 1
Governments, businesses and individuals all have a role to play in making sure we function in a sustainable way. The way to achieve this is by creating shared value. We put corporate responsibility (CR) at the heart of our business and strive to do even more every year.
This is our third annual publication focusing on PwC’s CR efforts. The previous two reports covered the PwC China, Hong Kong and Singapore firms. With the recent addition of PwC Taiwan to our group, this report now covers the PwC China, Hong Kong, Taiwan and Singapore firms. In line with PwC’s internal reporting procedures, this report covers the Financial Year 2011 (1 July 2010 – 30 June 2011).
During this reporting period, PwC made significant progress in our CR programmes across our four CR focus areas. Our community and environment programmes have expanded. We engaged many of our people in community volunteering for education and the environment, while also continually raising awareness of responsible behaviour towards our environment and our local communities.
PwC continues to measure its carbon footprint. This allows us to better understand our impact on the environment and how we can make significant reductions.
As part of our CR reporting process, we held significant dialogues with key Stakeholders, including representatives of our staff and partners, clients, suppliers and non- government organisations (NGOs). The results from these dialogues helped shape the content of this report, ensuring we produce a relevant document that accurately addresses our Stakeholders’ key priorities and issues.
This report addresses how PwC operates in the marketplace, treats its people, protects the environment and supports the community.
I am very grateful to all our Stakeholders who have contributed to this report and look forward to your feedback. I hope you will find it an enjoyable and informative read.
Message from the Chairman
Silas Yang PwC CaTSH Executive Chairman
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PwC Hong Kong
3,147Partners & Staff
PwC Taiwan
2,281Partners & Staff
2010 Green Procurement AwardTaipei Municipal Environmental Protection Bureau
We have
583partners
13,775staff
Caring Company Award Hong Kong Council of Social Services 2010-2011
About PwC – China, Hong Kong, Singapore and Taiwan
PwC China
7,007Partners & Staff
Top accounting firm in China for 8 yearsRanked by The Chinese Institute of Certified Public Accountants (CICPA)
PwC Singapore
1,923 Partners & Staff Most popular
employerPwC Singapore was ranked as the most popular among professional services firms in Singapore at the Top 100 Leading Graduate Employers event
Beijing 2,768 Shanghai 2,611
Chongqing 109 Suzhou 67
Chungli 46 Shenzhen 454
Dalian 94 Taichung 104
Guangzhou 504 Tianjin 161
Hsinchu 128 Tainan 74
Kaohsiung 69 Taipei 1,860
Nanjing 2 Xian 76
Ningbo 18 Xiamen 25
Qingdao 118 Macau 54
Corporate Responsibility Report 2011 3
MarketplaceContributing to the debate on corporate responsibility and promoting sustainable practices and good governance
EnvironmentBecoming an environmentally responsible organisation that inspires its people, clients and business partners to engage in sustainable business practices, and drives positive change in the community
Approaching corporate responsibility the PwC way
CommunityHarnessing the skills, goodwill and compassion of our people to support our charity partners and positively impact society
PeopleCreating a workplace environment in which our people are well supported and encouraged to develop to their fullest potential and perform their best
Successful organisations are those that fully integrate CR into their business strategy and operations, treating it as a serious channel for creating and delivering value. PwC’s management is committed to working across our teams to continuously push the boundaries of what CR means to us, so we can keep creating value and building our brand as a responsible organisation.
Joanne Oswin
PwC CaTSH Operations Leader,CR Committee Co-Chair
Approaching corporate responsibility the PwC wayAt PwC, we use a “four quadrant” model to take a broad view of what it means to be a responsible corporate citizen and help embed behaviours associated with corporate responsibility across our entire organisation.
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Corporate Responsibility Report 2011 5
Defining our corporate responsibility agendaListening to, and engaging our Stakeholders about what it means for PwC to be a responsible corporate citizen helps us do the right thing by our people, clients and our communities.
Key areas of interest
Based on the outcomes of the dialogue, we have developed a materiality index, using the top three issues identified by each group of Stakeholders.
Materiality of issues to business
Imp
orta
nce
of
issu
es t
o ex
tern
al s
take
hold
ers
Environmental strategy Carbon footprint
Paper consumption
Recycling
Community investment
Employee volunteering
Pro bono services
Employee security & wellbeing
Talent attraction & retention
Training & development
Inclusion & diversity
Behavioural change - PwC Experience
People engagement in CR activities
Maintaining exceptionalethicalstandards
Data security
Anti-corruption, anti - bribery measures
CR strategy & targets
Client satisfaction
Water use
Listening to our Stakeholders
149 representatives gave us their feedback
We would like to extend our appreciation to our partners and employees, our clients and our business partners, and other groups and individuals who have contributed to the dialogue. Your input was invaluable. We hope you enjoy reading the report, which has taken your feedback and comments into consideration, in addressing our plans for the future.
66 participated by telephone or by submitting a completed questionnaire
83 attended group dialogue sessions
Marketplace Strategy
PwC is committed to responsible business practices, contributing to the debate on CR and promoting sustainable practices and good governance
• Engage in the public agenda on a sustainable economy
• Provide sustainability solutions for our clients
• Encourage a sense of CR amongst the business community
STAKEHOLDERS ISSUES
Our Stakeholders identified the following key marketplace issues
• Maintaining exceptional ethical standards
• Anti-corruption and anti-bribery measures
• Data security
• CR strategy and targets
• Client and supplier satisfaction
Our future is dependent on the speed at which we are able to adapt to socio-economic changes caused by the world’s rapid development. We need to invest in business approaches which create shared value for society by enabling the economy to thrive and to bring positive change to the environment. PwC wants to play an active part in facilitating this process.
Ernest Ip China & Hong Kong Territory Senior Partner
Marketplace
At PwC, being a good corporate citizen means being responsible in everything we do in the marketplace. We ensure that our relationships with our Stakeholders in the marketplace give them the value they are looking for. Having a strong CR strategy, including related targets, which we hold ourselves accountable to, is an important part of this.
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Corporate Responsibility Report 2011 7
Maintaining exceptional ethical standards
Part of our impact on the marketplace is in promoting trust and transparency in the capital markets, and in order to do that our own ethical standards are always a top priority.
We adhere to all Certified Public Accounting Institute regulations. Through active membership in these institutions in our markets , we contribute to the running and development of the accounting sector.
PwC has strong anti-bribery and anti-corruption processes in place. Related training is compulsory for all staff and in 2011, close to 100% of staff and partners completed this training.
Client satisfaction is important to our Stakeholders and essential to our business. We continue to deliver value to our clients through following the PwC Experience behaviours.
Our entire strategy is dedicated to delivering high quality services and creating value for our clients.
Delivering the value our clients are looking for
Embedding sustainable values in the marketplace
Reporting on social and environmental issues has become more important as consumers, investors and other Stakeholders increasingly demand greater transparency in all aspects of doing business. Through the services of
our Sustainability and Climate Change (S&CC) team, we are able to provide our clients with sustainability-related services to help them deal with the significant sustainability challenges they face.
Data security is also of paramount importance to PwC. We have clear and strictly implemented policies around:
• access to our office areas and IT systems,
• safe storage of sensitive papers,
• disposal of confidential materials (including recycling), and
• dissemination of confidential materials.
People
In today’s world, successful companies are distinguished from lesser ones by their capacity to deliver more value to more people in more ways. The PwC Experience captures our fundamental goals, to treat our clients like people and our people like clients, and to build trusted relationships so that we can create greater value for our clients and one another.
This is what being a good corporate citizen means to us.
Gautam Banerjee PwC Singapore Territory Senior Partner
STAKEHOLDERS ISSUES
Our Stakeholders identified the following key people issues
• Employee safety and well-being
• Training and development
• Talent attraction and retention
• Behavioural change linked to the PwC Experience
• Diversity and inclusion
Our CR people strategy aims to create a workplace environment where people are supported through the challenges of a demanding industry, feel valued for the work they do and are provided with the opportunities to develop to their fullest potential.
People Strategy
To create a workplace environment in which our people are well supported and encouraged to develop to their fullest potential and perform their best.
• Equip our people with the skills to work effectively; invest in training and development
• Establish a culture where inclusion, diversity and our corporate values make our people proud to be part of our organisation
• Create a work environment that supports the health, safety and well-being of employees
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Corporate Responsibility Report 2011 9
When we asked a sample group of staff and partners what were the CR-related topics they were most concerned about, the top issue was employee safety and well-being. We recognise that in the professional services industry, a great deal is demanded of our people. Particularly during peak work seasons, our people work long hours for extended periods of time. This is a major concern for our business and an important one to understand so that we can do something about it.
In the past year, we focused on eliminating unnecessary overtime and creating a better sense of well-being amongst our people. Partners are encouraged to:
• allocate teams more efficiently throughout the year,
• create better engagement plans,
• communicate more with managers and staff to understand what the work needs are, and
• to bring work forward when possible to alleviate workloads during the peak season.
Creating a supportive environment
Our We Care programme was set up in 2004 in China and Hong Kong and continues to reinforce and support PwC’s caring culture. Throughout the year, We Care offers health talks, health tips, flu vaccination and health check-ups to help our people maintain their health.
To encourage a healthy lifestyle, Wednesday is also designated as Fruits Day in Singapore-partners and staff get fruit delivered to their workstations.
Similar initiatives exist in PwC Taiwan, including free or subsidised annual health checks, seasonal flu vaccination programme for all employees, and tips for maintaining a healthier lifestyle.
64% of our total people are women, and women make up 29% of the partnership across our firms
Learning and Development programmes-1,570,068 hours of training
Generation Y (Gen Y) now makes up over 70% of our workforce
Having 600 of our people participating in the PwC’s Forest project gave a true statement of how passionate they are about protecting the environment. We need to match this passion with PwC’s commitment to Think Green and Lead the Change.
Albert Hsueh PwC Taiwan Territory Senior Partner
Environment
STAKEHOLDERS ISSUES
Our Stakeholders identified the following key environment issues
• Environmental strategy
• Carbon footprint
• Paper consumption
• Recycling
• Water use
Environment Strategy
Think Green – Lead the Change
Our vision is to be an environmentally responsible organisation that inspires its people, clients and business partners to engage in sustainable business practices, and drives positive change in the community.
• To reduce our environmental impact
• To inspire, educate and engage our people in creating a sustainable working environment
• To raise awareness about sustainability with our clients and business partners
• To engage communities to become more environmentally sustainable
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Corporate Responsibility Report 2011 11
Our impact on the environmentOur greatest impact is CO2 emissions from business travel and from the use of our premises.
39%
7%Overnight
Accommodation
41%
8%
Purchased Paper
Air Travel
Energy Consumption
5%
Car Travel
Total emissions per territory, by emission source
Aggregated total emissions by source for China, Hong Kong, Singapore, Taiwan
CO2 Emissions (t) China Hong Kong Singapore Taiwan
Energy Consumption 8,385 4,963 1,226 2,075
Purchased Paper 1,533 968 279 274
Overnight Accommodation 671 217 251 733
Air Travel 10,372 3,224 1,823 2,128
Car Travel 2,323 235 819 198
Total per territory 23,284 9,607 4,399 5,408
TOTAL 42,698
Earth Hour – lights out across CaTSHOur offices across CaTSH once again switched off the lights for Earth Hour 2011.
Following a communications campaign in China, Hong Kong and Singapore, around 1,500 PwC employees vowed to make at least one change to reduce their carbon footprint, ranging from using public transportation to bringing their own mug to work. PwC Taiwan sent out various internal communications to raise employees’ awareness of energy saving and environment protection.
Green journeyOur green journey began in 2007 when we completed a high level estimate of our environmental impacts. We have since extended this assessment to include all of our territories – China, Hong Kong, Singapore and Taiwan, and created a more detailed analysis of our greenhouse gas (GHG) emissions.
The GHG data in the table above and environmental related data identified with a (^) throughout this report, have been subjected to certain limited procedures by the Firm’s Sustainability & Climate Change assurance practitioners, who were not involved with the preparation of this report. Nothing has come to their attention that causes them to believe that the GHG data and environmental related data is not properly prepared, in all material respects, in accordance with the Reporting Criteria as set out for this report, available at www.pwchk.com/home/eng/cr_index.html.
Community
At PwC we want to positively impact society. By further engaging our people as volunteers, facilitating giving, and building capacity for our charity partners, we can have a real impact on the communities we work in.
Nora Wu Human Capital Partner, CR committee Co-Chair
PwC staff and partners feel a long-standing sense of responsibility to support the communities in which we operate. We believe that it is the right thing to do, and that it brings benefits to us as individuals and as an organisation.
Community strategy
Leverage the skills, goodwill and compassion of our people to support our charity partners and positively impact society.
• Engage our people as volunteers with our community partners
• Facilitate giving and fundraising for our community partners, and in response to natural disasters
STAKEHOLDERS ISSUES
Our Stakeholders identified the following key community issues
• Community investment strategy
• Employee volunteering
• Pro bono services
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Corporate Responsibility Report 2011 13
PwC Foundation The PwC Foundation provides a channel for the firms in PwC CaTSH and our staff and partners to donate to charities. It also supports volunteer and fundraising events led by PwC people. US$988,385 was donated through the PwC Foundation and the China, Hong Kong, Taiwan and Singapore firms in FY2011 to fund charitable giving events.
Beyond charitable giving, we focus on a small number of strategic partnerships, which make up the majority of our community investment activities. We support our strategic charity partners through financial contributions and both skilled and unskilled volunteering.
Employee volunteeringIn FY2011:
Disaster reliefWhen disasters strike close to home and around the world, our people have been generous in donating funds to aid the recovery where it is needed, and we have systems in place to facilitate the donation process. We react to disasters in line with the interests of our people, and in consideration of our responsibility as an international organisation.
In 2011, PwC Foundation together with over 3,500 partners and staff in China, Hong Kong, Taiwan and Singapore raised more than US$ 345,000 for relief of the Japanese earthquake and tsunami disasters. Funds were directed to the Japanese Red Cross Society
2,528 volunteers
14,000 volunteer hours
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Volunteering activities at a glance
1
1 China Rural School Volunteer Programme
Through the Rural School Volunteer Programme (RSVP), we partner with different NGOs, sending small groups of volunteers to rural village primary schools for a week, leading fun, interactive classes in English, computer literacy, environmental awareness and physical education. A key focus is to share new ideas, inspiring students in rural areas to learn more. In 2011, five RSVP trips were arranged with 67 participants contributing over 2,500 volunteer hours. A total of 620 classes were delivered to 1,750 students. After the on-site visits, volunteers continue to keep links with the schools and students in their classes to provide support when requested. PwC also donated RMB 77,000 worth of books, classroom and sports equipment in 2011 in response to specific requests from the schools. As we develop relationships with each of the schools we visit, we’ll continue to identify areas where we can focus our efforts and measure our impact.
2 Singapore Overseas Community Programme
A partnership between PwC Singapore and the YMCA of Singapore, the Overseas Community Programme (OCP) is now in its fifth year. Every year, around 40 volunteers from PwC Singapore, often joined by volunteers from other firms, take part in the OCPs. This programme was further supported by our Singapore colleagues who raised funds to support the volunteers in their various activities.
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Corporate Responsibility Report 2011 15
3
5
43 Growing PwC’s ForestTo promote green thinking among
our people and to play our role in protecting the environment, we launched PwC’s Forest project in March 2011 in partnership with the China Green Foundation and the Agriculture, Fisheries and Conservation Department in Hong Kong. Nearly 40,000 trees were planted last year with the help of these partners and 600 PwC volunteers took part in ten events across China, Taiwan and Hong Kong. This will help remove around 900 tons of carbon dioxide on an annual basis. As we continue to grow PwC’s Forest across the region, this impact will also continue to grow. 4 Using our skills
PwC Taiwan has continuously provided assurance and tax services to more than 60 non-profit organisations. In 2009, the firm launched the Non-profit Organisation Financial Capacity Support Plan, a volunteer-based programme to help local charities strengthen their financial management systems. This year, 18 volunteers worked with seven NPOs representing a variety of worthy causes. PwC Taiwan also plans to collect related knowledge and information to publish a book for helping local charities strengthen their financial management system.
5 Running for CharityIn 2011, 1,217 of our people
across China, Hong Kong, Taiwan and Singapore took part in walks, runs and marathons to raise money for charity. Combining fundraising and leading examples of healthy lifestyles, our people collectively walked, ran and cycled thousands of miles, raising funds one kilometre at a time. Some of those runs included the UNICEF charity run in Hong Kong and the JP Morgan Corporate Chase Challenge in Singapore.
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Our corporate responsibility performanceThis table represents our progress against priorities we identified for 2011 and defines our key priorities moving forward.
Quadrant FY 2011 Priorities FY 2011 Update FY 2012 Key Priorities
Marketplace Develop a framework for robust, transparent public reporting on our CR programme
ONGOING
Reporting in line with GRI G3.1 guidelines
• Continue to improve CR reporting standards
• Continue to link relevant UN Global Compact principles to our CR and business strategy
• Showcase examples where PwC is active on thought leadership and debate in broad CR issues locally and globally
People Integrate CR themes into graduate recruitment and talent management programmes
ONGOING
Links to community and environment programmes were made during graduate recruitment and on-boarding process
• Identify and implement CR related opportunities for talent management and responsible leadership programmes
• Support the expansion of well-being initiatives within PwC
• Integrate deeper CR themes into the Graduate Recruitment process
Environment Measure our carbon footprint for FY 2011
ACHIEVED • Driving carbon reductions by enhancing the understanding of environmental issues and implementing possible carbon reduction initiatives
• Raising awareness and encouraging actions through people’s engagement in green initiatives
• Identify and develop opportunities to engage the student community in environmental initiatives to encourage more green action
Encourage people to be environmentally aware
ONGOING
A number of interactive awareness raising campaigns carried out
Continue to engage communities in green initiatives
ONGOING
Environmental messages embedded into community programmes
Community Expand on existing volunteer programme
ACHIEVED
The number of volunteers participating in our programmes grew to 2,500 in FY 2011
• Increase our volunteer participation rate to 20%
• Launch a formal skilled volunteering programme for our staff and partners
• Continue to provide support (including professional services) to our charity partners to better impact their own target groupsPilot skilled
volunteering projects to give our people the opportunity to use their skills while volunteering for charities
ACHIEVED
Two programmes were piloted in partnership with Talent Management
Continue to support charity partners to better impact their own target groups
ONGOING
Increased funding amounts to key charity partners and offered more volunteer and professional support
Corporate Responsibility Report 2011 17
CR KPIs for FY2011
Quadrant KPI Unit FY2011
Marketplace
Compliance Completion of annual compliance confirmation % 100
People
Workforce Partners No. of Partners 583
Staff No. of Staff 13,775
Diversity & Inclusion Female partners % Female partners 29
Gender ratio of newly admitted partners % Female partners 36
Employee satisfaction “I would recommend PwC as a great place to work” % favourable 49
“I am proud to work at PwC” % favourable 60
Learning & Development Hours in training time for staff & partners through Learning and Development
Hours 1,570,068
Average number of training hours per person Hours 109
Environment
Energy consumption Indirect energy consumption kiloWatthours 19,874,047^
Air travel Total distance travelled km 143,675,706^
Purchased paper Total purchased paper tonnes 728^
People perception “I am satisfied that PwC is responding appropriately to address the impact of our business activities on the environment”
% favourable 64
Community
Giving Charitable donations by staff and partners US$ 337,655
Charitable donations from PwC US$ 650,730
Volunteering Participation in volunteering events No. of staff & partners 2,528
Time spent by partners and staff in volunteering events Hours 14,000
People perception “I am satisfied with the actions PwC is taking to be socially responsible”
% favourable 74
(^) Please refer to page 11
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