EMEIA Financial Services Sustainability Report 2013

Building a better working world together

Building a better working world together

Contents

1 EY at a glance2 Letter from leadership4 Our commitment5 Performance snapshot

6 Our clients8 Focusingonthefinancialservicesindustry9 Embeddingsustainabilityincoreservices10Betterworkingbanking11Betterworkinginsurance12Betterworkingassetmanagement13Supportinginternationaldevelopment14Contributingtopublicdiscourse

16 Our people18Creatinghigh-performingteams19Empoweringourpeoplethroughprofessional

development22Valuingdiversityandinclusiveness(D&I)25Creatinglifelongrelationships26Achievingtherightbalance27Providingcompetitivepayandbenefits

28 Our communities31Investinginentrepreneurshipandinnovation34Empoweringwomeneconomically35Supportingthefutureworkforce36Planningforagreenerfuture

40 How we are organized and governed41Instillingandabidingbyprofessionalvalues44Rigorousapproachtoquality45Partnerremuneration

46 About this report47Definingtheboundariesofthereport47Determiningreportcontentandmateriality49Engagingwithourstakeholders50GRIsummarytable51Dataoverview52CorporateSustainabilitygovernancestructure53CSandD&Iteamstructure54Providingsustainabilityinsights56Minimizingourimpact

“AspartofVision2020,weareimprovingeveryaspectofEY,fromhowwerecruitourpeopletohowwemanageourknowledge.Wearesettingourselvesapartbycreatingthehighest-performingteamstodeliverexceptionalservicetoourclientsaroundtheworld.Theseimprovementswilltransformourorganizationaswebuildabetterworkingworldeveryday.”

Mark Weinberger EYGlobalChairmanandCEO

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EY at a glance

Globalheadquarters Countriesweoperatein

Countries:Belgium,ChannelIslands,France,Germany,Ireland,Italy,Luxembourg,theNetherlands,Portugal,Spain,Switzerland,UnitedKingdom

London

Peopleworldwide

175,000

People

7,727Offices

65Globalrevenues

US$25.8b

153

Offices

700

Our service lines

Advisory

Assurance

Tax

Transaction Advisory Services (TAS)

Our sector centers

Financial Services ► Banking&CapitalMarkets

► Insurance

► Wealth&AssetManagement

► Automotive

► Cleantech

► ConsumerProducts

► Government&PublicSector

► LifeSciences

► Media&Entertainment

► Mining&Metals

► Oil&Gas

► Power&Utilities

► PrivateEquity

► RealEstate

► Technology

► Telecommunications

EYiscommittedtodoingitspartinbuildingabetterworkingworld.Theinsightsandqualityserviceswedeliverhelpbuildtrustandconfidenceinthecapitalmarketsandineconomiestheworldover.Wedevelopoutstandingleaderswhoworktodeliveronourpromisestostakeholders.Insodoing,weplayacriticalroleinbuildingabetterworkingworldforourclients,ourpeopleandourcommunities.

Managingchangeanddrivingsustainablegrowthinthedynamicfinancialservicesmarketdemandsthevisiontoseeandactonissuesfromeveryangle.Ourfinancialservicesprofessionalsarelocatedinmajorgeographichubs— auniquestructurethatallowsustorapidlymobilizeanddedicatethemtotherightadvisory,assurance,taxandtransaction-relatedprojects.

EY Global EY EMEIA Financial Services (FS)scope of this report*

*Note: The content shared within this report relates to the EMEIA Financial Services region.

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Letter from the leadershipEY’scommitmenttosustainablegrowthisstrongerthaneveraswestrivetodoourpartinbuildingabetterworkingworld.

Aswelooktothefuture,ourVision2020strategy isset—butthejourneytoachievingourvisionisstillinprogress.Aspartofitsdevelopment,wehavebeentakinganin-depthlookathowtheworldischangingandwhereweseeourplaceinit.Wewanttobeanorganizationthatwillsetthepaceforhowourprofessionshouldservebothourclientsandthepublicinterestwithgreaterrelevancy,transparencyandaccountability.

Thehardpartisstilltocome.Ascompetitionfornewrevenues,newmarketsandnewservicescontinuestointensify,weknowthatsustainabilityisfundamentaltofulfillingourpotentialandimprovingbusinessperformance.Ourlong-termgoalsareambitious.Wewillstrivetoadviseourclientsonhowtomeetcurrentneedswithoutcompromisingtheabilityoffuturegenerationstomeettheirs.Bringingthisvisiontolifeisdependentuponourpeopleandtheactionstheytakeeveryday.

ThisreportisanoverviewoftheprogressthatEYEMEIAFinancialServiceshasmadeinthelastyear andourcommitmentsforthefuture.

Andy BaldwinGlobalHeadofFinancialServices

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The challenges financial services faceIn the wake of the economic crisis of 2007-08, financial services institutions have started making real changes to restore public confidence in the culture and ethics of the industry. This has been reflected in a move from simply reacting to criticisms to pursuing sustainability as an integral driver of growth.

Multiple external factors continue to influence this shift:

► Regulator, shareholder and consumer pressure for financial services institutions to demonstrate cultural reform is driving a wholesale review of how ethics and conduct are managed in these organizations.

► Increased stakeholder demand for transparency and accountability is driving the need for more effective sustainability assurance and integrated reporting.

► Consumer demand for products and services addressing environmental and social concerns is challenging conventional models and ways of doing business.

► Globalization, changing demographics (such as our aging population), finite natural resources and extreme weather events are creating new risks and opportunities across sectors.

Banks, insurance providers and asset management companies remain critical to the economy. That is why EY continues to invest substantial resources, and management attention, in supporting the financial services industry in addressing these challenges.

Sustainability as a driver of growthWhether auditing, consulting or working for the regulator, our primary goal is to make capital markets and their participants function better.

In today’s business environment, a concern for sustainability is no longer optional. Being sustainable is a legacy we intend to establish and continue for many generations, using the experience and knowledge of the past to make a better future.

Our interest in sustainable growth extends beyond our services and into our communities where we focus on supporting entrepreneurship, developing the future diverse workforce and championing the role of women in business.

The complexity of culture and commerce suggests there are no easy solutions to the challenges ahead, but we are committed to making progress — to being accountable for the things we control and using our influence to encourage others to do the same.

Our commitment to building a better working worldIn this report, we share the results of our fiscal year 2013 corporate sustainability efforts. We want to be transparent about progress against our goals — where we have met them, exceeded them or must do better.

I am proud of what EMEIA Financial Services has achieved and hope that reading this report inspires you to share our passion for creating positive change in the world through our clients, our people and our communities.

Andy Baldwin Global Head of Financial Services

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Our commitment

Webelievethateverythingwedo—everyserviceweprovide,everyinteractionwithaclientorcolleague—shouldmaketheworkingworldbetterthanitwasbefore.

Our clients

We advise our clients on how to meet their

current needs without compromising the

ability of future generations to meet

theirs

Collaboratingwithclients,wearecommittedtocreatingabetterworkingfinancialservicesindustry.Tothisend,weareinvestingin:

► Helpingorganizationsleveragetheirassetsandcapabilitiestodriveinnovationandsustainablegrowth

► Workingtoembedsustainabilityconsiderationsinourcoreservices—forpositiveeconomic,environmentalandsocialimpact

► Providingsustainabilityinsightsandcontributingtopublicdiscourseontheissuesthatmatter

Our people

Whenever people join us — and however

they progress their career with us — we

want their EY experience to last a

lifetime

WithinEY,ourEMEIAFinancialServices’Peoplestrategyis“bestinclass.”Itfocuseson:

► Creatinghigh-performingteamsthatexhibitaconsistentsetofvaluesandbehaviorsworkingacrossbordersandcultures

► Empoweringourpeoplethroughprofessionaldevelopmentandencouragingthemtofindtherightwork-lifebalance

► Embeddingdiversityandinclusiveleadershipintothewaywedobusinessandbuildlifelongrelationshipswithourpeople

Our communities

We are committed to fostering sustainable growth in areas where

we can have the greatest impact

Beyondourclientservices,wesupportentrepreneurship,economicallyempowerwomenanddevelopthefutureworkforce.OurEMEIAFinancialServicestargetsinclude:

► Ensuringatleast12%ofourpeopleparticipateinvolunteeringacrossourcountriesofoperation

► Investingatminimum1%ofourpre-taxprofitviacharitabledonationsandvolunteeringorprobonoprograms

► Reducingourcarbonemissionsassociatedwithairtravelby12%perfull-timeequivalent(FTE)by2015fromour2010baseline

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Performance snapshot

In FY13, EY was globally recognized as …

► Theworld’ssecondmostattractiveemployer,inUniversum’sbusinessrankings

► 57thinthetop100bestcompaniestoworkfor,Fortune Magazine—upfrom59thin2012

► AmongtheTopEmployersforWomen,The Times

► ATopCompanyforDiversity,DiversityInc’ssurvey,ranked4thoutof893companies

At a local level, our EY member firms were …

► [Netherlands]RatedNumber1accountancypracticeforstudentsandaccountancystarters,Memory Magazine

► [UK]AwardedTheProgressionAwardbyRace for OpportunityandrecognizedforourgroundbreakingBlackandMinorityEthnic(BME)LeadershipProgram

► [Germany]HonoredbyLogib-Dgovernment-sponsoredproject,fortransparentsalaryreportingandsensitivitytowardunconsciousbias

► [UK]Rankedinthetop30byTopEmployersforWorkingFamiliesforthethirdyearinarow

► [Germany]AwardedtheECOPROFITcertificateforenvironmentallyfriendlyoperationsinourEschbornoffice

► [ChannelIslands]AwardedtheKeepGuernseyGreenAwardandStatesofJerseyEco-ActiveBusinessAccreditation

► EYwasnamedastheleadingglobalbrandforsustainabilityservicesbyanalystfirmVerdantix.

► One-hundredpercentofourpeoplehaveundertakenethicsandcompliancetraining,comparedto97%thepreviousyear.

► Eighty-threepercentofprocurement-issuedcontractsincludedoursuppliercodeofconduct,comparedto80%thepreviousyear.

► Wehadnodatabreachesofclientprivilegedinformationorconfidentialdatalossesinthereportingperiod.

► Forty-onepercentofgraduatehiresand37%ofexperiencedhireswerefemale.

► Seventy-eightpercentofourpeopleagreethattherangeofexperiencesofferedbyEYsupporttheirdevelopment.

► Twelvepercentofourpeopleparticipatedininternationalworkplacements.

► Seventeenpercentofourpeoplevolunteered,and10%ofourpartnersserveasadirector,officerortrusteeofanot-for-profitorganization.

► US$5.5mincharitablecontributionsweredonatedacrossthe12marketsinwhichEMEIAFinancialServicesoperates.

► Carbonemissionsrelatedtoairtravelfell1%perfull-time-equivalentemployeefromthe2010baseline;however,thankstoacontinuedeffort,wehaveseena16%reductioncomparedwithlastyear.

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Our clients

We advise our clients on how to meet their current needs without compromising the ability of future generations to meet theirs

Contents

6 Ourclients8 Focusingonthefinancialservicesindustry9 Embeddingsustainabilityincoreservices10Betterworkingbanking11Betterworkinginsurance12Betterworkingassetmanagement13Supportinginternationaldevelopment14Contributingtopublicdiscourse

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Professionals dedicated to each service line

TAS 274Advisory 1,074Tax 2,748Assurance 2,948

42%

4%

15%

39%

8.2“I would recommend EY to a friend or colleague.”

0Never

10Always

We invest in long-term relationships with our clients and are proud of our responsibility in the marketplace. From the 2012–13 Assessment of Service Quality survey, our clients rated us 8.2 in this category:

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Our commitment to being an active contributor to the industries we serve, rather than a passive observer, ensures that we are working to tackle the challenges that are most important to those industries.

Focusing on the financial services industry

Market driversThere are three critical factors driving the importance of sustainability in our financial services clients’ agendas:

1. Crisis of trust across the industry requires focus on rebuilding reputations, including around socio-economic contribution

2. The financing requirement to deliver the transition to a low-carbon “circular” economy

3. Material unpriced social and environmental risks in asset portfolios and lending decisions

Emerging from the global financial crisis, the financial services industry continues to face unprecedented levels of change. But one thing is for certain: the industry is determined to learn from past failures and create a more sustainable approach to finance.

Financial services is pivotal to enabling sustainable growth across all sectors of the economy. However, until recently, the majority of financial services companies have not addressed sustainability as a strategic issue. This is changing.

► Business growth strategy: Companies are incorporating sustainability into their core business strategies and are reporting favorable results from “sustainable” initiatives.

► Government mandate: Mandatory corporate sustainability (CS) reporting is being discussed by the UK Government and the EU.

► International standards: Countries are starting to embrace sustainability guidelines and management guidelines such as ISO 26000.

► Sustainable solutions: Some companies are focussing on developing sustainable solutions to address social and environmental challenges impacting their operations.

Managing change and driving sustainable growth in the dynamic financial services market demands the vision to see and act on issues from every angle.

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Embedding sustainability in core services

Thefinancialservicesindustryisincreasinglyapproachingsustainabilityasastrategicissuethatpresentsmaterialriskaswellasnewbusinessopportunities.Weprovideanumberofservicestohelpourclientsprogressthesustainabilityagendawithintheiroperationsandcommercialmarkets.

Theseservicesinclude:

► Strategydevelopmentanddeliverymodelimplementation

► Sustainabilityriskmanagementandmitigation

► Compliancewithsustainabilitystandardsandregulation

► Supplychainfinance,reviewandtransformation

► Environmentalfinanceandimpactinvestingadvice

► ValuationofESGriskinassetportfolios

► Developmentofintegratedreportingapproachandcontrolframework

► Auditandrecommendationsfornon-financial/sustainabilityreports

► Sustainabilityimprovementtargetsandkeyperformanceindicators

► Auditandreviewofresponsibleinvestmentfunds

► Transactionandmicrofinancelendingmodels

► Sell-sideandbuy-sideduediligence

► Operationaltransactionservicesandpost-acquisitionintegration

► Corporatetaxaffairstransparencyanddisclosureadvice

► Customertaxtransparencydemand

► Cleantechand“greenproduct”taxbenefits

Advis

ory AssuranceTaxTA

S

Awards and recognitionEY was named as the leading global brand for sustainability services by the independent analyst firm Verdantix. This placed us above our direct competitors and other leading brands in the financial services sector for sustainability.

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BetterworkingbankingThebankingindustryisanintegraldriverandenablerofeconomicdevelopmentandgrowth,andassuchisheldtoaccountforitsowndirectimpacts,butalsotheimpactsofthosetheyfinance.Theglobalbankingcrisisseverelyimpactedstakeholderconfidenceinthebankingsystem,andrecentregulatoryandcomplianceissues,suchasLIBORandanti-moneylaundering,haveexacerbatedthis.

Increasedregulationandfocusedeffortonrebuildingtheindustry’sreputationhasgonesomewaytorestoringconsumerconfidenceinfinancialservices,asshowninourlatestGlobalConsumerBankingSurvey.However,whilethebankingenvironmenthasstabilized,recentyearshavealsoseentheemergenceofnewmarketentrantsandapproachestofinance.

AscompetitionintensifiesandcostsofregulationimpactROE,banksneedtoadaptinordertosurvive.Traditionalbankingmodelswillneedtobereplacedwithmodelsthatreflecttheconsumerdemandfortransparency,includinginformationontheenvironmentalandsocialimpactsofbankingoperations,andoffersustainableandethicallydrivenproducts.Bankswhodonotadaptwillbeovertakenbynewentrants,andthereforeinnovationanddifferentiationarecritical.

Small,innovativeplayershavebeguntodevelopandtakemarketsharefromtraditionalplayersinarangeofareas,includinglendingandpayments.Thisincludespeer-to-peerlending,whicheffectivelydisintermediatesthelendingprocess,providinghighratestosaversandlowerratestoborrowers.Italsoincludesmobilepayments,which,whencoupledwith“storedvalue”functionality,canrepresentanalternativetobanks.AsEY’sGlobal Banking Outlook: 2013–14 pointsout,retail,technologyandtelecommunicationsfirmsareleveragingtheirfootprint,expertiseandcustomerbasetoexpandtheirbankingandpaymentservices.Thesecompetitorsremainsmallcomparedwithbanksbutaredemonstratingtheabilitytogrowextraordinarilyquickly.Banksmayinturnchoosetoacquire,orpartnerwith,theseinnovators.

Whilebanksrespondtoregulatoryrequirementsandtheirstakeholders’demands,theywillseektogeographicallyrepositiontheirbusinessestotakeadvantageofthelong-termdemographicandsocialreshapingoftheworld’spopulationandconsequentgeopoliticalinfluences.Manyestablishedbanksarenowstartingtooffermicrofinanceloansandmobilebanking,whichofferasustainablewaytosupporteconomicdevelopmentinrapid-growthmarketsbyengagingruralcommunities.Banksthatsucceedinthesemarketsbyactingsustainablywillbenefitfromincreasedmarketshareandpotentiallyimprovedpublicperception.

OurEMEIAfinancialservicesteamrecentlyconductedaseriesofinterviewsandfocusgroupstodiscusswayswecanhelptheindustrygetbackontrack.Suggestionsrangedfromprovidingreviewsofbanks’businessstandardsandpracticestofacilitatingthedialoguebetweenbanks,industrybodiesandregulators.However,therearetwoothermajorsustainabilitytopicsforbankstoconsider.Thefirstisthesocialvalueofbanking,whichistheessenceof“betterworkingbanking”—whatbanksshouldbedoingwithinandbeyondtheirday-to-daybusinessfunctions.Thesecondisfinancingalow-carboneconomy,whichcomesunderthebiggerheadingofimpactinvesting.Thisformofinvestingoverlapswiththeassetmanagementindustryandmeasurestheenvironmentalandsocialreturnoninvestment,alongsidetraditionalfinancialreturns.

“Astheindustryadaptstoanewfutureandsustainablemodelsforgrowth,fixingitsreputationwillbeamajorpartofthatprocess.”

Robert Cubbage, EMEIABanking&

CapitalMarketsLeader

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BetterworkinginsuranceInsurersareconstantlyre-evaluatingtheirproducts,servicesandsalestechniquestoaccountforanewtypeofcustomerandmarketplace.Partlybecauseofaprolongedperiodoflowinterestratesandinvestmentreturnssince2008,thefinancialstrengthofbothlifeandnon-lifeinsurershasbeenchallenged.Insuranceprovidershavehadtoincreasethepricesoftheirproductsasaresult,andthis,inturn,hasaffectedthequantityandtypeofproductsthatconsumerspurchase.

EY’s2012GlobalInsuranceCustomerSurveyofmorethan8,500consumersoflifeandnon-lifeinsuranceproductsinEuropeidentifiedthat,ifinsurerswanttoenjoysustainablegrowthandrebuildstakeholdertrust,theyneedtobecomeascustomer-focusedasotherconsumerbusinesses.Customersarewilling—andindeedprefer—tobuymorefromcompaniestheytrustandthatmakeserviceconvenientforthem.Atthesametime,theyexpectcompaniestodeliverandtorewardtheirloyalty.Inordertocultivatelonger-termrelationships,insurersneedtodomoretoearncustomers’loyalty.

Insurerscannotignoretheimpactthatclimatechangeandnaturalcatastropheshaveupontheirproducts,servicetocustomersand,ultimately,theirprofits.AndreasFreiling,EMEIAInsuranceLeader,saysthat“theinsuranceindustryisimpactedbyanever-changingsetofchallengesresultingfromclimatechange,andcompaniesarehavingtoadapttheirpremiumsandproductsaccordingly.”AccordingtoSwissRe,thefloodingthataffectedlargeareasofcentralandeasternEuropeinJune2013createdoveralllossesofUS$18b,withinsuredlossesestimatedatUS$4b.Theinsuredlosseswerehigherthanthe2002floodsinthesameregion,whichcosttheindustryoverUS$2b(US$3batcurrentprices).TheJunefloodingranksasthesecondmostexpensivefreshwaterfloodeventonsigmarecords,butisadistantsecondtothe2011ThailandfloodwhichledtoinsuredclaimsofoverUSD16b.

Aswellasadaptingproductstotheimpactsofclimatechange,insurancecompaniesaresteppinguptheireffortstoaccountforclimatechangeintheirinvestmentstrategies.However,itremainsthelarge-scalecompanies,withampleresources,thatareleadingtheway.Forthemajority,thecomplexanddispersedsupplychainsthattheyoperatewithinmakeplanningadifficultandcostlyprocess.

“Today’senvironmentcallsforbettermanagementofsustainabilityrisks,customerinnovationandmasteringthedemandsofregulatorychange.”

Andreas Freiling, EMEIAInsuranceLeader

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BetterworkingassetmanagementChangingpopulationdemographicsrepresentastrategicopportunityforassetmanagerswiththerightcapabilities.Governmentsandcompaniescontinuetotransferlongevityrisksontoindividuals,spurringrapidgrowthindefinedcontribution(DC)schemes.ThemovetoDCschemeshasbeencoupledwith“auto-enrollment,”thoughthispolicyismoreadvancedinAsiaandAustraliathaninEuropeandtheUS.Auto-enrollmentinvolvesemployersautomaticallyplacingemployeesintheirpensionschemes,butwiththeoptionfortheemployeetooptout.

Themarketforat-retirementorpost-retirementinvestment—“decumulation”—remainsunderdevelopedinmanycountries.Webelievethatassetmanagershaveauniqueopportunitytoaddresstheseshortcomingsbycreatingmoreflexiblesolutions,whichcouldopenalargeandpotentiallyvaluablemarket.Apartfromportfoliode-riskingforinvestorsnearingretirement,mostfirmsremainheavilyfocusedonpre-retirementinvestment.

Recentfinesleviedformis-sellingofproductshighlightthelackoftransparencyandconsumerunderstanding.Thereareanumberofcostsandfeesrelatedtoproductsthatareoftenovercomplicatedandseldomunderstood.Theindustryneedstoprovidegreaterguidanceoncostsandinvestmentrisks.Integratingenvironmental,socialandgovernance(ESG)informationintofinancialreportswillgosomewaytowardachievingthis,andleadingprovidersarealreadydoingso.WearehelpingclientstoincludeESGindicatorsintheirfinancialstatementsandofferingadviceonpolicydefinition,lendinggovernanceandriskmitigation.

Theassetmanagementsectorisalsoaddressingsustainabilityrisksbyfocusingonsociallyresponsibleinvestingandimpactinvesting.Theprinciplesofresponsibleinvestinghavebeenaroundforsometime,andESGanalysisisbeingincorporatedintomoreandmorecompanieseachyear.“Investordemandforsustainable,responsibleandethicalproductscontinuestogrowsignificantly.However,thishastobebalancedagainstconsistentperformanceofthoseproducts,”saysRoyStockell,EMEIA&Asia-PacificWealth&AssetManagementLeader.Thekeyistoensurethatinvestinginaresponsible,ethicalandsociallyimpactfulwaygivestheorganizationortheindividualacommercialadvantage.

“Investordemandforsustainable,responsibleandethicalproductscontinuestogrowsignificantly.However,thishastobebalancedagainstconsistentperformanceofthoseproducts.”

Roy Stockell, EMEIA&Asia-Pacific

Wealth&AssetManagementLeader

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SupportingtheWorldBankGroupEYsharestheWorldBankGroup’sviewthatgovernmentsaroundtheworldincreasinglyneedtoinvestininfrastructuretosupportpovertyreductionandsocialprogressinordertoachieveeconomicgrowth.Ifsuchinvestmentisstructuredproperly,itcanalsobeanagentofchangeinaddressingthemostsystemicdevelopmentchallengesintheworldtoday:socialstability,rapidurbanization,climatechangeadaptationandmitigation,naturaldisasters,andglobalissuessuchasfoodandenergysecurity.

WehaveworkedwiththeWorldBankGroupin58countries,manyofthemfrontiermarkets,helpingtocreatesolutionsaimedatjobcreation,governmentreform,aideffectiveness,sustainability,gender,climatechange,infrastructuredevelopmentandinformationtechnology.And,together,wehavemadeadifference.

SomeexamplesofourworkwiththeWorldBankGroupinclude:

► NationalPaymentSystemmodernizationattheCentralBankofCongo

► AssistancetotheBankofMozambiqueintheimplementationofInternationalFinancialReportingStandards

► ExternalauditoftheEmergencyBankingSectorReformProjectinIraq

► DevelopmentofthenewTunisianinvestmentcode

Weappreciatehowgovernments,corporateentities,multilateralandnot-for-profitorganizationsareworkingtosolvecriticalissuesinthedevelopingworld.Weaspiretoaddvaluetotheireffortsbyprovidingarangeofcustomizedservices,suchassocialduediligence,grantmanagementplanningandsocialimpactassessment.

EYhasalsoconductedavarietyofauditsofexternalaidprogramsandprojectsfundedbytheEuropeanCommissionfromtheEuropeanDevelopmentFund.WeconductedforensicauditstoprovidesupporttotheCommission’sfraudinvestigationsandperformanceauditstoreviewtheeconomy,efficiencyandeffectivenessofprograms.

OnbehalfoftheCommission,wesupportedthedesignandinitialimplementationoftheMediterraneanSolarPlan(MSP)acrossAlgeria,Egypt,Israel,Jordan,Lebanon,Morocco,SyriaandTunisia.WealsoanalyzednationalenergypoliciesandinterviewedstakeholderstoformulaterecommendationsonhowanMSPmaybedevelopedandeffectivelyimplementedintheregion,takingintoconsiderationtheproject’ssustainabilitybenefitsanditsattractivenesstoprivateinvestors.

Supporting international development

Awards and recognitionPatricia Jackson, Head of Financial Regulatory Advisory, has been included in Financial News’ 100 most influential women of 2013. In particular, she is recognized for her contribution in the areas of banking risk and prudential regulation. She also chaired the Institute of International Finance working group investigating the causes of the financial crisis.

Awards and recognitionEstablished in 2013, the EY Global Financial Services Institute brings together academics and industry practitioners to develop solutions to key issues facing financial services today. The institute’s publication, The Journal of Financial Perspectives, received accreditation from the American Economic Association after just one issue.

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Weunderstandourobligationtocontributetopublicpolicyandengagewiththewidercommunity.Weuseourglobalreachandourrelationshipswithclients,governmentsandnot-for-profitorganizationstocreatepositivechange.

CollaboratingwithexternalorganizationsWeactivelyengagepolicymakerstopromotereformsthatcontributetoincreasedinvestorconfidence,betterauditsandstrengthenedcorporategovernance.

Onaglobalscale,wecollaboratewithorganizationssuchastheWorldBank,theInternationalFinanceCorporation,theUnitedNations,theWorldBusinessCouncilforSustainableDevelopmentandtheWorldEconomicForumtopromotesustainabledevelopment,combatcorruptionanddefendhumanrights.

Atacountrylevel,weworkwithorganizationsthatunderstandtheirlocalmarketsandaddvaluetopublicpolicydiscussions.OnesuchexampleistheUNGlobalCompact(UNGC)networkinSpain(ElPactoMundialdelasNacionesUnidas).EYhasbeentheirauditorforseveralyearsandhasprovidedthisserviceonapro-bonobasissince2012.AsasignatoryoftheUNGC,EYmaintainsanactiverelationshipwithitsmembers.IsabelGarro,anEMEIAFinancialServicesalumnifromourinsurancebusiness,isnowtheManagingDirectorfortheUNGCSpanishNetwork.

Thankstoourscaleandglobalreach,theconnectionswemakeallowustoplayasignificantroleinconveningandparticipatingindiscussionsonimportantissuesthatarecentraltobusinessasawhole.Theseincludeaccountingstandardsfortheprivateandpublicsectors,wherewehavebeenvocalinoursupportofInternationalFinancialReportingStandardsandInternationalPublicSectorAccountingStandards.IntheUK,forexample,weprovidedevidencetotheParliamentaryCommissiononBankingStandards’PanelonTax,AuditandAccounting,aswellasevidencetothePublicAccountsCommitteeinconnectionwiththeirreviewoftheUKtaxsystem.

TheGuardianSustainable FinanceHubEYsponsorstheGuardianSustainableFinanceHubwiththeaimofraisingawarenessof,andpubliccommentaryon,sustainabilityissuesforthefinancialservicesindustry.

Thehubistheonlyonlinenewsplatformfocusedonsustainablefinanceandfeaturesaseriesofthought-provokingarticles.Topicscoveredrangefromtheroleofthefinancialsectorindecarbonizingtheeconomytotheimpactofclimatechangeoninsuranceproducts.

Inaddition,subject-matterexpertsfrombothEYandindustryparticipateinlivedigitalQ&Asessionstoaddressquestionssuchas“Howistheagingpopulationimpactingpensionfunds?”

Contributing to public discourse

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Shaping the next generationToday,overhalfoftheworld’spopulationisunder30,andyoungpeoplehavetheopportunitytobethecatalystsofsustainablechange.AtEY,wewantouryoungpeopletobecomeresponsiblebusinessleadersoftomorrow,soweprovideamultitudeofopportunitiesforthemtoworkwithexternalorganizationsthataremakingadifferencetotheworkingworld.

GlobalShaperscommunityOverthepast15years,wehaveworkedwiththeWorldEconomicForum(WEF)toshapefutureeconomicdevelopmentandshareinsightswiththeworld’smostinfluentialbusinessleaders,politiciansandacademics.WearealsoproudtosupportandencourageourpeoplewhoworkwithWEFatanindividuallevel.TheGlobalShaperscommunityisanetworkof274city-basedgroupsledbyyoungpeople,or“Shapers,”agedbetween20and33.PaulettevanOmmen,CorporateResponsibilitySeniorConsultantfromEYNetherlands,iscuratorofthehub.

“Shapersareunitedbyacommondesiretochanneltheirenergyandenthusiasmintobuildingamoresustainableandinclusiveworld,”saysPaulette.“Mypassionistocreateaworldinwhichpeopleusethepowerofentrepreneurshipandbusinesstomakeasocialandenvironmentalimpact.Therearesomanyimpactfulnot-for-profitorganizationsthatcanbenefitfromourskills,networksandexpertise.TogetherwithfellowShapers,wearecreatinganinfrastructuretoprofessionalizetheprocessofworkingwiththem.”

NextGenerationVisionWithasharedambitiontochampionthecompetitivenessofthefinancialservicesindustry,EYhasbeenamemberofTheCityUKsinceitsformationin2010.AndyBates,CorporateSustainabilityPartnerforourUKFSbusiness,isamonganumberofEYleaderswhositontheorganization’ssubcommitteesfocusedoncorporatesocialresponsibility,socialmobilityandenvironmentstewardship.

WearealsoactivesupportersofNextGenerationVision(NGV)—avisionthatChristellivanWykfromourFSAdvisorybusinesshelpedtodevelop.TheaimofNGVistodevelopasharedunderstandingofwheretheindustrystandstodayandformacollectivevisionamongyoungtalentforwhereitneedstobe(andhowitneedstochange)inthenext10to15years.

BonnInternationalSummerSchoolWorkingalongsidetheGermanInternationalCorporation(DeutscheGesellschaftfürInternationaleZusammenarbeit),EYhostedthe2013InternationalSummerSchoolonResponsibleBusinessinBonn,Germany.

Encouraginginternationalcooperationforsustainabledevelopment,thesummerschoolprovidesyoungprofessionalsfromallsectorswithaplatformtodiscussresponsiblebusinesschallengeswithleadingfiguresinsustainability,includingJohnRuggie,JohnElkingtonandPhilClothier.

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Our people

Whenever people join us — and however they progress their career with us — we want their EY experience to last a lifetime

Contents

16Ourpeople18Creatinghigh-performingteams19Empoweringourpeoplethroughprofessionaldevelopment22Valuingdiversityandinclusiveness25Creatinglifelongrelationships26Achievingtherightbalance27Providingcompetitivepayandbenefits

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HighlightsOverall gender breakdown Formal recorded learning hours

46hoursperemployee

2013 372,966 hours annually

2012 366,257 hours annually

46

17

Total female

39%Total male

61%

2013 39% female headcount

2012 37% female headcount

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Inthecapitalmarketsandeconomiccentersoftheworld,trustandconfidenceareabsolutelyessential.Ourworld- classteamsprovidereassurancethroughinsightandthedeliveryofqualityservices.

OurvaluesOurvaluesdefinewhoweareandremainthebedrockofourculture.Theyarethefundamentalbeliefsofourglobalorganization.Weare:

► Peoplewhodemonstrateintegrity,respectandteaming

► Peoplewithenergy,enthusiasmandthecouragetolead

► Peoplewhobuildrelationshipsbasedondoingtherightthing

Thegreatestassetwehaveisourpeople.Deliveringexceptionalclientservicedependsonadiversegroupofourpeopleworkingtogetherinanopen-minded,collaborativeculture.Wevaluethinking,learningandactingdifferentlysothateveryoneisempoweredtocontributetheiruniqueperspectives.

RecruitingnewtalentWevaluethepowerofdifferenceanddrawstrengthfromthediversityofourpeople.Weofferincentivestoourrecruitersforbringingintalentfromunderrepresentedareasandprovidetrainingforthoseinvolvedintherecruitmentprocess,i.e.,tomitigateagainstanyunconsciousbiasincandidateselection.Thisensuresourrecruitmentactivitiesfocusonattractingfutureleaders—peoplewhohaveaglobalmindsetandpromoteinclusiveworkapproaches.

Wealsohaverecruitmentinitiativesatacountryleveltoaddressanylocalsensitivities.Forexample,inEYSwitzerlandwehavemadeasignificantinvestmenttoattractmorewomentocareersinfinancialservices.Thisincludesfundingeventsaimedatwomen,ensuringthereisanequalrepresentationofmenandwomenatuniversityrecruitmentevents,settingkeyperformanceindicatorsforrecruitersandareferralcampaignfocusedonwomen.

41% Femalegraduates

59% Malegraduates

37% Female

experienced hire

63% Male

experienced hire

RetainingourpeopleWearekeentolearnhowwecanbettersupportpeopleduringkeystagesoftheircareersandhelpthemovercomethechallengestheyface.Lastyear,weimplemented“Listeningtoourpeople”surveysacrossallEMEIAFinancialServicescountriestogatherongoingfeedbackfromnewhires(toseehowtheyfeelsixmonthsin),recentpromotions(tounderstandhowtheyfoundtheirfirstyearintheirnewrank)andalumni(tounderstandwhypeopleleaveusandareaswecouldimproveon).

For more information on EMEIA Financial Services recruitment, see emeiafinancialservicescareers.ey.com

Creating high-performing teams

19

Webelievethatdevelopingourpeople’sskillsempowersthemtopursuearewardingandstimulatingcareer.EYandYou(EYU)isourcareerdevelopmentframework,designedtohelpourpeoplegettherightlearning,experiencesandcoaching.Learningmapssetoutalltheformallearningopportunitiesavailable,whileaseriesofinteractivecareerpathmapshelpourpeoplevisualizethevariousoptionsforbuildingtheircareer.

EYUnotonlyprovidesaconsistentframeworkfordevelopmentbutalsorecognizesthateveryoneisunique.EachEYemployeeisassignedacounselorwhomtheycanturntowithanyquestionsorconcerns.Irrespectiveofgender,100%oftheworkforcereceiveregularperformanceandcareerdevelopmentreviews.Counselorsalsohelpthemdeterminetheappropriateformallearningandexperiencesneededtoachievetheircareergoalsandprovidesfeedbackandencouragement.Thisnotonlysupportscontinualimprovement,italsoinformsmidyearandyear-endperformancereviews.

Formal recorded learning hours by gender

47hours per female

employee

46hours per male

employee

Awards and recognition ► World’s second most attractive employer

(Global), Universum: 200,000 students surveyed in the 2013 business ranking.

► 57th in top 100 best companies to work for (Global), Fortune magazine: Up from 59th in 2012.

► Number 1 accountancy practice for students and accountancy starters (Netherlands), Memory magazine: Awarded in 2012.

Empowering our people through professional development

20

“BeingpartoftheFSFutureLeadersprogramwasanexcitingandfulfillingexperience.Asapartnernow,Icansaywholeheartedlyhowmuchthisprogramhasfirstlyhelpedmereachthisgoalandsecondlyprovidedmewiththe

additionallearning,supportandexperienceIneededtooperateefficientlyatpartnerlevel.Moreimportantly,ithasbeenagreatjourneyonwhichImetpeopleIwillneverforget,withwhomIstaycloselyconnectedandsharesoundadvice.Ifullysupportthisprogramandhavenodoubtthatmanymorefutureleadersofourbusinesswillbenefitfromit.” Pascal Grange EYFSSwitzerland,AdvisoryPartner

DevelopingpeopletofulfilltheirpotentialWeknowthatinaperson’scareer,therearekeydevelopmentneedsandthatstretchingexperiences arerequired.WithinEMEIAFinancialServices,weprovideincreasedinvestmentattwoparticulartransitionpointswithinanindividual’scareer:movingintoamanagerroleandbecomingapartner.

OurAspireprogramtargetsourhigh-potentialseniorspopulationwhoarepreparingtobecomemanagers.Morethan170peopleattendedthetwo-daylauncheventthisyear.AswellastheopportunitytonetworkwithpeersfromacrossEMEIAFinancialServices,attendeesweregivenleadershipinsightsandpracticaladvicefromourpartners.Aspire’stwo-yeardevelopmentframeworkprovidesacombinationofcentralandlocalizedlearning,experiencesandcoachingonavarietyoftopicsincludingsustainability.

OurFSFutureLeadersprogramtargetsourhigh-potentialseniormanagersanddirectors.The18-monthleadershipdevelopmentjourneyequipsparticipantswiththeskillstheywillneedtoleadinaglobalfinancialservicesmarket.Inadditiontoformallearning,participantsreceiveregularpartnercoachingandon-the-jobexperience.Corporatesustainabilityformspartofthecurriculumand,aspartofthisyear’smarketleadershipchallenge,participantswillteamvirtuallyandworktodesignstrategiesforaddressingthesustainabilitychallengesfacedbythefinancialservicesindustry.

Thisinclusionofcorporatesustainabilityinourdevelopmentprogramsisonlypartoftheequation.WealsoholdaquarterlyFSSustainabilityExchange,aninteractiveteleconferencethatoffersourpeopletheopportunitytoengagewiththelatestnewsandcalltoaction.

21

CollaborationinactionCollaboratingacrossbordersanddisciplinaryteamsallowsEMEIAFinancialServicestodeliverholisticandintegratedsolutionsforourclients.Forexample,thecollaborationbetweenTaxandAdvisoryhasdevelopedintomultipleTaxPerformanceImprovement(TPI)initiatives.

“Throughcollaboration,ourTPIteamwasabletobringacommercialarticulationofwhytaxisimportantandrelevanttofinancechangeprograms.Historically,thetaximplicationsofsuchchangeshavenotnecessarilybeenthefirstthatcometomind,”saidAmitThaker,Manager,Tax,UK.

TheTPITeamisanexampleofthebenefitsofhavingaseparatebusinessdedicatedtofinancialserviceswitharesponsiveandmobileworkingculture.“MymostrecentprojectwasagreatexperiencebecauseIwasabletoleadtheprojectmanagementofficeofamajoradvisoryproject,eventhoughI’mnotfromatraditionalAdvisorybackground,”saidKelumKumarasinghe,Manager,Tax,UK.

AglobalmindsetWerecognizethattheultimatesuccessofEMEIAFinancialServicesreliesonourpeoplehavingaglobalmindset.Welooktoencouragethisviabothcross-borderengagementsandmobilityprograms.

Toensurethatwearematchingtherightinternationalopportunitieswiththerightpeople,wehaveintegratedasetofmobilityexperienceswithinourcareerdevelopmentframework.Forinstance,theEYVantageprogramexposeshigh-potentialmanagerstoentrepreneursinemergingmarketsandNewHorizonsenablesseniorstoworkabroadonathree-monthassignment.Therearealsosecondmentopportunitiesatacountrylevel,suchasGermany’sAuditPlusandSetSailinternshipprograms.

Withanumberofmobilityprogramsavailableacrossourservicelines,weaimtoconvertourresourceneedsintodevelopmentopportunitiesforourpeople—whilstincreasingvaluetoourclients.

”Thissecondmentallowedmetoreallybroadenmyhorizons.WorkingwiththeCorporateSustainabilityteambasedinPariswasanopportunityIjumpedat! Ilovedthechallengeofswitching

servicelines,goingfromaclient-facingroletoaninternalrole,inadifferentcountrywherethelanguageisn’tmyfirstandworkingoninterestingprojectsoutsidemynormalauditrole.IlearnedsomuchinthosethreemonthsandmetsomebrilliantpeoplefromacrossEMEIA.ItisanexperienceIwillneverforget.” Saibh McDonagh Kelly EYFSIreland,AssuranceSenior

12%ofourEMEIApeopleparticipateininternationalworkplacements

22

Recognizingthevalueofdiversityisastart,butthinkinginclusivelyisessentialtomakethediversemixwork.Ultimately,EMEIAFinancialServicesisconcernedaboutequalityandopportunity—makingsuredifferencesarecelebratedsothattalentedpeoplefromanybackgroundcanrisetothetop,andguaranteeingthatopportunitiestodevelopandadvanceareavailableforallfromdayone.

GenderdifferencesmatterDiversityisanimportantcomponentofoursuccess. TheEuropeanCommission’s“Womenineconomicdecision-makingintheEU:progressreport(2012)”suggeststhatcompanieswithagender-diverseboardperformsignificantlybetterthantheircompetition.Thisincludesa42%higherreturnonsales,66%greaterreturnoninvestedcapitaland53%higherreturnonequity.

Thefinancialservicesindustryasawholehasalowerpercentageofwomeninleadershippositionsthanmostotherindustries,andthesameistrueofEMEIAFinancialServicesatEY.Wehavemadeastrongcommitmenttodiversifyourleadership,andwearetakingfirmstepstoincreasediversityacrossdifferentlevels.Forinstance,EYUKhassetatargetof30%womenand10%blackandminorityethnic(BME)partnersby2015.

Wehavefurthertogo,soweareincreasingoureffortstomakeamorediversifiedleadershipareality.Ourregionalleadershipteamhasestablishedfivestrategicworkstreams(sponsorship,agileworking,leadershippipelinetargets,presenceinthemarketplaceandrecruitment).Eachworkstreamisledbyaseniorpartnerandfocusedonaddressingchallengesfacedbywomeninthefinancialservicesindustry.

EMEIAFinancialServicesalsoofferscareerdevelopmentprogramstargetedspecificallyathigh-potentialwomen.Ourflagshipprogram,Navigator,isaimedatfemalemanagersandnewseniormanagers.Itisdesignedtocreateopportunitiesforourwomentodeveloptheirnetworksandvoicesandtodiscusstheissuestheyfaceinprogressingtheircareerwithinanindustrythathasalowerpercentageofwomeninleadershippositions.

Awards and recognition ► Top Employers for Women (Global), The Times: EY ranked in the Top 50

► Top Company for Diversity (Global), DiversityInc’s survey: EY ranked 4th out of 893 companies

► Widening the talent pool — Progression Award (UK), Race for Opportunity: EY awarded in recognition of our groundbreaking Black and Minority Ethnic (BME) Leadership Program

Valuing diversity and inclusiveness

19%

13%

We are seeing promising developments as a result of our efforts. For instance, 19% of internally promoted partners moving into fiscal year 2014 are female — compared with 13% in the previous year.

23

PromotinganinclusivecultureHavinganinclusivecultureisvitaltous.Therearemorethan50differentnationalitiesrepresentedinourworkforce.Wecantrulysaythatitisthemixofourpeople,includingtheirdifferences,thatshapesourbusinesscultureandcontributestothesuccessofourorganization.

Weareconstantlylookingfornewandinnovativewaystoembedinclusivethinking.Researchtellsusthatweallhavebias.Ourbrainsareprogrammedtomakequickdecisionsbasedonpastexperienceandcurrentperceptions.Whenweareunderpressure(e.g.,workingtoadeadline),wearemostsusceptibletotheinfluenceofunconsciousbias—aswetendtogravitatetowardpeoplewhothinkinasimilarwaytous,ortosolutionsthathavehelpedussucceedinthepast.

In2013,wepilotedworkshopsforouraccountteamsoninclusiverelationships.Wealsohaveaweb-basedtrainingcourseonunconsciousbiasavailabletoallourpeople.Throughtrainingandbetterunderstandingofourownandotherframesofreference,weenableourpeopletoimprovethewaywework.

Ourcountry-levelinternalnetworks,suchastheWomen’sNetwork,TheBlackNetwork,TheSikhNetwork,Parents’Network,LesbianGayBisexualandTransgenderNetworkandFarEastNetwork,provideadditionalsupportandaplatformforourpeopletoconnectwitheachother.WearealsomembersofexternaldiversityandinclusivenessorganizationssuchasWomeninBanking,OutontheStreet,GermanDiversityCharter,RaceforOpportunity,BusinessDisabilityForum,Employers’NetworkforEqualityandInclusion,30%Club,2%ClubandtheGayandLesbianEqualityNetwork.

“BeinganobservantJewhasitschallengesintheworkplace.Inparticular,therearestrictrestrictionsonworkinghoursonFridayafternooninpreparationfortheSabbath.Toorganizethisflexiblearrangement,Ihavetoinformpeopleinadvanceofmyneedtoleaveearly,andalsoofmywillingnesstoworkextrahoursduringtheweektocompensate.Iamgratefulthatmanagershavepermittedmetoflexmyhours—theycontinuetosupportmeinmeetingdeadlines,whilenurturingmydevelopmentandaccommodatingmyreligiousbeliefs.” Robert Rosenberg EYFSUK,Diversity&InclusivenessCoordinator

TheEYSikhNetworkWeaimtoprovideaforumwhereanyonecanopenlydiscussissuesthattheyface,aroutetoleadershipandaplatformtoraiseawarenessoftheSikhfaith.ThenetworkisnowthelargestcorporateSikhnetworkwithintheCityofLondon.Wehaveover

300internalmembersandapproximately700externalmembers.

ThenetworkhasconcentratedoneducationandquicklymadeanimpactnationallywithUKSikhorganizationsaskingtoworkwithus.OurnetworkistheonlySikhprofessionalnetworktobesupportedbyallUKSikhnetworks/gurdwaras.

Highlightsofthepastyearinclude:aseriesofSikhartlecturesdeliveredbyaninternationallyrenownedarthistorian;severalinvitationstoParliamenttosupportcentralfaith-relatedcauses;developmentofacoursewithaBritishcharityallowingattendeestolearnthebasicsofSikhhistory,musicology,philosophyandspirituality;andanefforttostrengthenourrelationshipswithalltheLondonuniversitiesandOxfordUniversitySikhsocieties.

“TheEYSikhNetworkhasconcentratedoneducationandquicklymadeanimpactnationallywithUKSikhorganizationsaskingtoworkwithus.Oureventsareattendbyacross-sectionofindividualsacrossallindustrygroupsandfaiths,andthebenefitstoEYhaverangedfrompublicityonnationalradiotorecruitmentofskilledindividualsthatweneedinordertoachieveVision2020.Icontinuetobeexcitedandpleasedtobeworkingwithagroupofsuchmotivatedandtalentedpeople.”

Amarjit SinghEYFSUK,Wealth&AssetManagementPartner

EYBlackNetwork“Wecannotunderestimatethepowerofnetworksinconnectingpeople,providingdevelopmentopportunitiesandcreatingclientconnections.EYBNdoesallofthatandmoretohelpourmembersreachtheirpotential.Ourworkwithexternalorganizationssuchaseducationalcharitiesalsoallowsustomakeanimpactwithinthecommunitieswhereweliveandwork.”

Errol GardnerEYFSUK,AdvisoryPartner

24

Movingfromcompliance toinclusionSincelate2009,EYFrancehasbeenrunninganinitiativetoincreasepeoplewithdisabilitiesintheworkingpopulation.WorkingincollaborationwithAgefiph(anassociationfortheprofessionalintegrationofpeoplewithdisabilities),weaimtomovebeyondthelegalrequirementofhiring6%ofpeoplewithdisabilities.AccordingtoThomas,aseniorconsultantandparticipantintheprogram:“Wehavebeenencouragedtouseourdisabilitytoouradvantage,openingupanewworldofpossibilities.Itmakesarealdifference.”Anotherseniorconsultantontheprogram,Julien,stated:“IhavebeenblownawaybythematurityEYhaveshowninintegratingdisabledpeopleintotheirwayofwork.”

DisabilityisalsoafocusareainEYItaly,whichalreadymeetsthelegalrequirementof7%andwantstomoveawayfromfillingquotas.Asaresult,itisnowworkingwithaleadingItaliannot-for-profitorganization,theSodalitasFoundation,whichhasworkedextensivelywiththeEUCommissioninall28membercountries.

Awards and recognition ► Workplace Equality Index (UK), Stonewall: EY ranked 6th in 2013 ranking of the top 100 public and private sector employers for Lesbian Gay Bisexual and Transgender (LGBT) staff

► Outstanding Employee Network Group of the Year (EMEIA), European Diversity Award: The EY Disability Working Group won this award in 2012

WehavefurtherstrengthenedourcommitmenttomakeinclusivenessrealforourpeopleandthewidercommunitybysupportingtheGayGamesandPrideeventsacrosstheworld.

Wewillonceagainbesponsoringthelargestdiverseamateursportingeventintheworld,theGayGames2014,whichisexpectedtodraw30,000visitors.EYparticipatedinanumberofPrideeventsacrosstheworld,includingtheUS,theUK,IrelandandSouthAfrica.Inparticular,EYUKhasbeenthenationalheadlinesponsorforNationalStudentPridesince2011,andwewerealsoheadlinesponsorforPrideLondon2013.

AnotherexampleofourcommitmentontheLGBTagendaisourinvolvementwiththeOutontheStreetSummit.Oneofthekeyissuesdiscussedattheeventwastheimportanceofseniorleadershipinvolvement—somethingEYisaimingtoachievethroughthereciprocalmentoring,aschemethatisbeinglaunchedinEMEIAFS.AlongsidepanelistsfromBarclaysandStandardCharteredBank,AndyBaldwin,EY’sFSGlobalManagingPartner,discussedglobalchallengesandregionalapproachesontheLGBTagenda.Inaseparatepanel,PavlosPapaefstathiou,amanagerinourFSAdvisoryteam,gavehisviewsonFSindustrycultureandtheimportanceofsponsorsand“out”seniorexecutives.

Lesbian,gay,bisexualandtransgender(LGBT)

25

Whensomeoneleaves—aseveryonedoesatsomepoint—ourconnectionwiththemremains.Wetakeprideinthefactthatmanyofouralumniwillbecomeleadersinacademia,government,thenot-for-profitsectororinthebusinesscommunity,whileotherswillplayaroleingrowingandsustainingneworganizations.

WevaluethecontributionsourpeoplemakeduringtheiryearsatEYandhopetheywillstayintouch,soweencouragethemtobecomeamemberofouralumninetworksocialnetworkingsites,alumnieventsandnewsletters.

InFrance,theEYalumninetworkhasover5,000membersandisgrowingby15%annually.OurUKFSalumninetworkhasbeenrunningfornineyearswithmorethan3,300alumnitodate.Bothnetworkswereestablishedwiththeaimofexpandingbusinessrelationshipsandprovidingtheopportunitytomaintaincontactwithformercolleagues.

OuralumniknowwhatittakestobesuccessfulatEYandprovetobeagreatsourceofreferrals.Inaddition,peoplewhochoosetoreturntoEYbringwiththemimportantinsightsandskillsobtainedelsewhere.WeareproudofthepeoplewhoreturntoEY.Infact,manypeoplearesurprisedtolearnthatMarkWeinberger,ournewGlobalChairmanandCEO,hasjoinedEYonfourseparateoccasions.

Creating lifelong relationships

Returning to EY with new insights“IleftEY13yearsagoandreturnedearlierthisyear.Havingjoinedtheorganizationin1988asagraduate,Iprogressedtopartnernineyearslater.AfterEY,ItransitionedtoindustryasCFOatCapgeminiandlaterbecameaboardmemberatAPG.

“Whileawayfromtheorganization,IneverlosttouchwithEY—whetherthroughcasualcatch-upswitholdcolleagues,formalEYalumnichannelsorcollaborationonprojects.Therefore,whentheopportunitycameup,oldmemoriescamefloodingback.Ididhavesomereservationsatfirst,buttwokeyfactorsensureditwasn’tlongbeforeIwassigningthecontracttoreturn.

“Firstly,Iwasbeingaskedtoreturnduringatimeofsignificantchange.TheVision2020strategyinstantlyhithomewithme.TheorganizationIleftbehindwastransformingintonotonlyaleaderinfinancialservices,butonewhichwastrulyconsciousaboutthefutureofbothfinancialservicesandthewiderworkingworld.MorespecificallyintheNetherlands,weareundergoingbigchangesasaresultofmandatoryauditrotation.Leadingourpracticethroughthischangeisabeautifulchallengeforme.

“Secondly,theysaythatyouneverforgetyourfirstlove.Thismayormaynotbetrue,butIcansayforcertainthatyouneverforgetyourfirstjob;25yearsagoIsteppedintoajobwhichledmealongapathtowardwhereIamtoday.TheaffectionformyformeryearsatEYplayedabigpartinmydesiretocomeback.”

André ten Damme EYFSNetherlands,AdvisoryMarketLeader

26

Ourpeopleworkhardtodrivebusinessresults,andwewantthemtohavebalanced,well-roundedlives.Wecannotdecideforeachindividualwhatthatbalancelookslike,becauseeveryonehasdifferentneeds.However,wedoaimtocreateaflexibleworkplaceandsupportourpeopleinachievingtheoptimalwork–lifebalance,sotheycanconsistentlyperformattheirbest.

Ourvisionistobecometheleaderinagileworkingpracticesfortheprofessionalservicesindustry.Forus,agileworkingmeansthatallemployeescanworkeffectivelythroughgreaterchoiceinhow,whenandwheretheywork.Wesupportbothagileday-to-day(informal)andfixed,longer-term(formal)flexibleworking,withtheprovisothatneithertheteamnortheclientshouldsufferinanywayasaresultofthearrangements.Wherefeasible,wewanttogivepeopletheopportunitytoworkthehoursandinthelocationthathelpsthemmaximizeperformance.

Beingfamily-friendlyWeinvestinpeoplethroughouttheircareerwithEY,andwearecommittedtoretainingthemthroughoutparentalleave,theirreturntoworkandbeyond.Weknowthatindividualsonmaternity,paternityoradoptionleaveexperiencesignificantchangesintheirlivesthatcanaffecttheiridentitybothatworkandathome.Thesechangescancreateparticularpressuresasindividualsmakechoicesrelatingtotheirworkandfamily.

ThatiswhywerundedicatedprogramssuchasMaternityCoachinginEY,whichensuresthatourpeoplefeelsupportedinthechoicestheymakeandhaveapositiveexperience.Asimilarprogram,TopParents,runsinEYNetherlandstopromoteyoungparents’awarenessoftheimpactachildmayhaveonthebalancebetweentheirprivateandprofessionallives,andbetweenbodyandmind.

AgileworkingGillLoftsisoneofmanyEYpeoplewho“flex”theirworkinghours.Inthepast,Gillworkedfour-dayweekssothatshecouldhaveonedayofftospendtimewithherfamily.Overtheyears,herchildrenhavegrownupandherrolehasexpanded,renderingtheoldarrangementunsuitable.Workingfive-day

weeks,GillnowleadsontheEMEIAFinancialServicesagileworkingpractice.Sheisastrongadvocateandleadsbyexample.

Gillisconfidentinsayingthat“agileworkingisnotaboutcost-cuttingorworkingfromhomeonceaweekbutisanessentialpartofemployeeengagement.” AnumberofEYclientsalsostressthatincreasedemployeeengagementisoftenoneofthebenefits ofadoptingflexibleworkingpractices.

Gillalsoemphasizestheneedfor“trainingmanagementteamstoanappropriateleveltounderstandboththebenefitsofagileworkingandhowtogetthebestofteammemberswhoareflexingtheirhours.”

Gill Lofts EYFSUK,HeadofAssetManagement

Achieving the right balance

27

Healthyforlife,healthyforworkEYplacesparamountimportanceonenhancingthevitalityandwell-beingofouremployees,sothattheycanconsistentlyperformattheirbestandprovidegreatserviceforourclients.Thelessonwecanlearnfromchampionshipsportsisnottoworkharder,buttobesmarterandmoreawareabouthowandwherewedirectourenergy.

ThisisthecentralideabehindourEmployeeAssistanceProgram(EAP),whichisglobalinconceptbutlocalinexecution.Morethan30countrieshavecountry-specificEAPs,17ofwhichprovidecounselingandlifestylesupport.Germany,Switzerland,theUKandIreland,forexample,workwithexternalorganizationstoprovideourpeopleandtheirimmediatefamilymemberswithafree,confidentialservice.Helpisprovidedwhethertheyareseekingchildcare,managingtheirpersonalfinances,copingwithafamilyproblemorpersonalissue,orjustdealingwiththeupsanddownsofeverydaylife.

Fit4theJobisayear-longprogramforboostingourpeople’shealthandwell-being,currentlyavailableinEYBelgiumandtheNetherlands.Participantsworkontheirpersonalhealth,learnhowtorecoverquicklyfromstressfulperiods,andtakepartincustomizedtrainingsessionsthataregearedtowardpersonaltargets.

Anotherprogramthatpromoteshealthandwell-beingistheMyHealthCountsinteractiveandonlineinitiativeintheUK.Thisinitiativehelpsourpeopleandtheirfamiliesunderstandhowlifestyleaffectstheirriskofdevelopinghealthconditions.Aconfidentialonlinehealthcoachoffersadviceonhowtotacklepotentialproblemsandachievehealthgoals.

Webelievethatourpeopleshouldberewardedforthecontributionstheymake,andwearecommittedtoprovidingcompensationthatrecognizesourhighestperformers.Eachyear,wecarryoutmarketresearchonrewardswiththeaimofprovidingacompetitivecompensationpackage.

Webelievethatitisintheinterestsoftheorganizationandconsistentwithourvaluesandculturetoensurethatwehaveafairandjustpaysystem.Wearefirmlycommittedtotheprincipleofequalpaybetweenmenandwomen,andalsobetweenethnicgroups,forcomparablework.Wethereforeconductannualequalpayreviewsandcommunicatetheresultstobusinessleaderssotheycantakeactionwhererequired.

Inadditiontocompensation,theTotalRewardspackageinEMEIAFinancialServicesconsistsofarangeofcareerdevelopmentopportunities,workandlifestylearrangements,andothertraditionalemployeebenefits(e.g.,privatehealthcareinsurance,companycars,occupationalhealthconsultant,carbonoffsetting,retirementplanning).Theseareaimedathelpingourpeopleachievesuccessinallelementsoftheirlivesandrecognizingthevaluetheybringtoourbusiness.

Awards and recognition ► With transparent salary reporting, increased

sensitivity toward unconscious bias and many other measures, EY Germany’s gender pay gap approach was honored as best practice in 2012 by a government-sponsored project, Logib-D.

► EYhasbeenrecognizedasoneoftheTop30organizationsintheUKforworkingfamiliesforthreeyearsinarow.Thisisatestamenttoourfocusonpromotingaflexibleworkplace,andtothecontributionthattheEYParents’Networkmakestoensurethatfamilies,inallshapesandforms,aresupportedhereatEY.

Providing competitive pay and benefits

28

Our communities

We are committed to fostering sustainable growth in areas where we can have the greatest impact

Contents

28 Our communities31 Investing in entrepreneurship and innovation34 Empowering women economically35 Supporting the future workforce36 Planning for a greener future

29

ofEMEIAFinancialServicespeoplevolunteered

17%

US$5.5mcontributedacrossthe12marketsEMEIAFinancialServicesoperatesin

Volunteering Total community investment

hours9,495

30

Ouractivityinthisareafallsunderfourmainheadings:

First,werecognizethatentrepreneurscandrivegrowthinmanymarkets.Overthepastthreedecades,wehaveadaptedourexperience,industrycapabilitiesandresourcestoworkforentrepreneurial,fast-growthcompanies.WerecognizetheirachievementthroughourEntrepreneurOfTheYear™award,providepro-bonoservicesthroughtheEYVantageprogram,offerbusinessconsultingservicesatheavilysubsidizedratesthroughEnterpriseGrowthServices,andcreateanetworkofsupportthroughtheAcceleratenetwork.

Second,weseektosupportandeconomically empower women whoarecontributingtothehealthandstabilityofcommunities.EYisasignatoryoftheUnitedNationsWomen’sEmpowermentPrinciples,whichofferguidancetobusinessonempoweringwomenintheworkplace,marketplaceandcommunity.

Third,weknowthatbyhelpingyoung people toentertheworldofworkinameaningfulway,weareinvestinginandnurturingtheongoingeconomicwell-beingofourlocalcommunities.Ourpeoplevolunteertheirtimetocoach,mentorandteachunderservedstudents.

Andfourth,wearechallengingourselvestoworkinamoreenvironmentally sustainable mannerandtoreducetheimpactofouroperationsontheplanet.

Webelievethemostsignificantimpactwecanhaveonsocietyisbysupportingeconomicstabilityandsustainablegrowth.

10%

ofEMEIAFinancialServicespartnersserveasadirector,officerortrusteeat

86

not-for-profitorganizations

31

Weknowthatentrepreneurscantransformeconomies,driveinnovationandchangecommunities.Intheindustrializedworld,entrepreneurialbusinessescreatemorejobsproportionallythanlarge,establishedorganizations.Inthedevelopingworld,entrepreneurialorganizationsaccountfor90%ofallbusinessesandoftenrepresentacommunity’sbesthopeofliftingitselfoutofpoverty.

HelpingentrepreneursisoneofthemostpowerfulwaysthatEYcansupportourcommunities.ThroughtheEYEntrepreneurOfTheYearProgramandourVantageprogram,aswellasworkingwithglobalorganizationssuchasEndeavor,Kiva,PowerofYouth,OmidyarandtheNetworkforTeachingEntrepreneurship(NFTE),weareimprovingthelivesofanever-wideningcircleofpeoplewhoworkfor,selltoandareservedbytheirbusinesses.

Investing in entrepreneurship and innovation

FromentrepreneurtointrapreneurWealsoknowthatwecanlearnfromentrepreneurs.Webelievethatthemosteffectivewaytoteachouremployeestoinnovateistogivethemdirectexperienceofwhatitmeanstobeanentrepreneur.OneofthewaysinwhichweworktoachievethisisthroughtheEYVantageprogram(formerlyFSIntrapreneurprogram).Thispioneeringsustainabilityinitiativeseesourtopperformerscarryoutplacementsatfast-growthcompaniesinemergingEMEIAmarketssuchasEgypt,Greece,Jordan,Lebanon,SouthAfricaandTurkey.

TodelivertheVantageprogram,EYhasjoinedforceswithglobalnotfor-profitorganizationsEndeavorandPowerofYouth(POY).Throughanetworkofexperiencedbusinessleaders,EndeavorandPOYhelpleadingentrepreneursbuildthrivingcompaniesthatwillgoontogeneraterevenueandemployment.Bypromotinganentrepreneurialcultureinemergingeconomies,wecanhelpraiselivingstandardsandcreatesustainedeconomicgrowth.

Ouremployeesdonatetheirtimeintwoways:bycarryingoutsix-weekinternationalpro-bonoplacementswithentrepreneursorbyjoiningagroupofvirtualadvisorswhosupportshorter-termprojectsfromtheirhomeoffices.These“Vantageadvisors”usetheirprofessionalexpertisetohelpentrepreneurstacklekeychallengesaffectingthegrowthoftheirbusiness.

Whethertheentrepreneursneedtoimplementnewfinancialmanagementpractices,redesigntheirbusinessmodelordevelopamarketexpansionstrategy,Vantageadvisorsaimtoequipthemwiththeknowledgeandtoolstheyneedtothriveinanuncertaineconomicclimate.TheprogramalsoencouragesthegrowthofintrapreneurshipwithinEY’sownbusinessculturebygivingparticipantsfirst-handexperienceofwhatittakestobeaninnovator.

Lithuania India

Saudi Arabia

Egypt Greece Jordan

Leba

non

Sout

h Afri

ca Turkey

EMEIA Financial Services Vantage program participation summary since 2011

96Vantageadvisors

supportedentrepreneursinemergingEMEIA

markets

7,358pro-bono

serviceshours

Our impact

ForeverybusinessweworkwiththroughtheVantageProgram,ouraimistoactasacatalystfor15%compoundannualgrowthrate(CAGR)aboveprojection.FromanalyzingourfirstVantagecohort,sixoutofeightbusinessesshowedincreasedrevenueintheyearfollowingtheVantageplacement,withfourabove20%.Moresignificantly,threebusinesseshavesubsequentlygoneontoachieveincreasesofover100%revenuegrowthin2012fromthe2011baseline.

DemonstratingEYquality andvaluesAspartoftheEYVantageProgram,LeneSogaardtraveledtoSouthAfricatosupportShonaquip—asocialenterprisethatmakesmobilitydevices(e.g.,wheelchairs)forchildrenandadultsacrosssouthernAfrica.

Lenehelpedrestructurethecompanyandprovidedarobustlevelofcontrolbyinstallingnewoperationalprocessesandprovidedstafftraining.“Takingpartinthisprogramhasgivenmeskills,butmoreimportantlyithasgivenmetheconfidencetodealwithissuesinaninformedway,withtherightinformationandaprocess,”saysShonaMcDonald,FounderofShonaquip.

“Theexperiencehastaughtmehugelessonsinthevaluesandintegrityneededtorunabusinessofanysize—andbroughttolifewhytheEYvaluesaresoimportantandrelevanttoallemployees.IamsopleasedthatIwassupportedbymylocalmanagementandthatIwasabletodoitwithinthesecurityandsupportofEY.

“Beingabletosharemyknowledgeandskillstosupportabuddingentrepreneurhasbeenextremelyrewarding.Youhavetoadapttoeverythingnewinashortspaceoftime—anewcountry,newculture,newcompany.Allyouhaveconstantistheskillsyouhave,andImostcertainlyhaveusedeverythingIlearntatEYduringthisplacement.”

Lene Sogaard EYFSLuxembourg, Accounts&BusinessDevelopmentAssociateDirector

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Awards and recognitionThe EY Vantage Program was selected as a case study for our communication on progress report for UN Global Compact. The program was also eligible for the World Financial Innovation Award.

EntrepreneurOfTheYearAsthefirstandonlyglobalawardofitskind,EntrepreneurOfTheYearcelebratessomeofthemostsuccessfulentrepreneurswhohavedemonstratedexcellenceinareassuchasinnovation,financialperformanceandpersonalcommitmenttotheirbusinessesandcommunities.

Awardsaregiventomorethan500entrepreneursinmorethan140citiesin50countriesaroundtheworld.AtourannualWorldEntrepreneurOfTheYearAwards,webringtogetherentrepreneursrepresentingdozensofcountriesfromawiderangeofindustriesandbackgrounds.Theseentrepreneurshaveoftenbuiltsomeoftheworld’sleadingcompanies.

Amongthefinancialservicesentrepreneurstohavewontheawardin2012wastheoverallUKwinner,Markit,afinancialinformationservicescompanythatprovidescreditdefaultswapsservices.OtherfinancialservicesfinaliststhisyearincludeFrance-basedC2iSanté,BoosterAcademy,GérardPerrierIndustrie,GroupeAltera,Immoprêt,Invefi,MCAGroupandTratoSA;Poland-basedKRUKSA;andUK-basedBusinessGrowthFundPlcandLloydsDevelopmentCapital(Holdings)Ltd.

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SupportingbusinessesthroughEnterpriseGrowthServicesWerecognizethehugecontributionofsmall/mediumenterprises(SMEs)andsocialenterprisesinemergingmarketsandofferthemourconsultingservicesatheavilysubsidizedrates.OurEnterpriseGrowthServices(EGS)aimstohelpthesejob-creatingbusinessesimprovetheirproductivity,profitabilityandgrowthprospectssotheycanincreaseaccesstogoodsandservicesinpoorcommunities.

ProjectstypicallylastseveralmonthsandmakesubstantialchangestoSMEs’processes,governanceandinformationmanagement.Westrivetopermanentlyembednewwaysofworkingviaactivecoaching,skillstransferandchangemanagement.

Acceleratingstart-upentrepreneursStartingabusinesscanbeadauntingprospect.Turningafantasticideaintoatangibleproductorservicerequiresdedicationandcourage.Therearemanycomplexdecisionstomakeandobstaclestoovercome.SoourpeopleconceivedanddevelopedtheAcceleratenetwork.Itprovidesskilledsupporttosocialandstart-upentrepreneurs,offeringthemaccesstoeventsandlearningandsharingsessions.

Entrepreneurscanalsoworkone-on-onewithourpeople,clientsandalumni,whoserveasmentorsforthem.Acceleratementorsusetheirbusinessskillsandfinancialknow-howtoprovidea“businesshead”fortheentrepreneurstoshareideaswith,andtoofferchallengestotheirbusinessplanning.

ThroughAccelerate,ourpeopleareworkingwithafast-growingnetworkofentrepreneurs,championingsmallbusinessesthatwillgrowtheeconomy.Feedbacktellsusthat88%ofentrepreneursfelttheiron-the-jobperformancewouldimprove,and93%ofourpeopleinvolvedinAcceleratesaidtheexperiencehadapositiveimpactontheirowndevelopment.

Forexample,throughEGSwearehelpinganindustrialconsumablessupplierbasedinAccra,Ghana.AmultidisciplinaryteamfromEYUKandGhanaisassistingtheentrepreneurtomakesustainedreductionsintheirworkingcapitalandimprovetheirabilitytoforecastandmanagecash.Inaddition,EGShasprojectsrunningorabouttostartinUganda,SierraLeone,ChileandJordan.

WedonotmakeanyprofitfromourworkthroughEGS,andweabsorbtheprogram’soverheadcosts.Inaddition,ourpeoplemakesalarysacrificesduringtheirtimeontheprogram,andwechargefeessufficientonlytocovertheremainingcosts.

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Countrieslargeandsmall,developedanddeveloping,arepursuingeconomicgrowth,diversificationandjobcreation.Buttomakethishappen,theyneedtotapintoallthetalentintheirsocieties.Women,inparticular,havelongbeenoverlookedinmanymarketsasavitaltalentresource.

► Womenrepresentmorethanhalfoftheglobalpopulation.

► Theyownapproximately40%ofprivatelyownedbusinesses.

► Inmanysocieties,womeninvestupto90%oftheirincomeintheirfamiliesandcommunities.

EYhasastrongtrackrecordofworkingongenderinclusion,women’seconomicempowermentandentrepreneurship.DevelopmentAdvisoryServices(DAS),adedicatedteamthatprovidesprofessionalservicestothepublic,privateanddevelopmentsectors,hasdeliveredkeyengagementssuchas:

► Facilitatingthecertificationandvalidationofwomen-ledenterprisesforWEConnectInternationalinIndiaandBangladesh.

► WorkingwiththeInternationalFinanceCorporation(IFC)onagenderbaselineprojecttoidentifythenumberofwomen-ownedSMEsandassessingtheircreditgapin32countries.

► AscopingstudyofSMEfinanceforwomeninNepalforIFC.Welookedatfinancialandnon-financialbarrierstoaccesstofinanceandthecreditgapandrecommendednecessaryinterventionsandactivitiestofurtherdeveloptheirwomen-ownedSMEportfolio.

InternationalWomen’sDayOn8March2013,EMEIAFinancialServicesjoinedthousandsofpeopleacrosstheglobetorecognizeInternationalWomen’sDay.Wecelebratedthedaybyhighlightingtherolethatmicrofinanceplaysintheeconomicempowermentofwomen,andourmanagingpartnerhostedaneventwithmicrofinanceexpertsandexternalspeakersfromPlaNetFinance.TheeventraisedmorethanUS$20,000tohelpwomeninMadagascarcreatesustainablelivelihoodsfortheirfamiliesandwidercommunitiesthroughthePlaNetFinanceproject,BABEO.

EYCares—Madagascar’sCommunityEngagementTeam—recentlymetwithsomeofthe300femaleentrepreneursbenefitingfromthedonation.Thesewomenalreadyhadanincome-generatingactivitybutwantedtoimproveitsprofitability.Now,thankstotheBABEOproject,theycan.Alice,whoownsagroceryinMadagascar’scapital,Antananarivo,hasincreasedherprofitsby83%sincereceivingtrainingfromBABEO.“ThetrainingIreceivedtaughtmetokeepsimplifiedaccountsofmybusiness,andhowtouseacomputertodothis,”shesaid.

“Weknowthatoverthenextdecade,ifwetapintowomen’seconomicpotential,itwouldbetheequivalentofhavingaddedabillionindividualsinbusiness.Womenareournextemergingmarket,andweneedtocapitalizeontheirprovencontributionsandhelpthemsucceedintheeconomyatalllevels—inbusiness,atgrassrootsandinlocalcommunities.” Fleur Bothwick, OBE EY EMEIA Diversity & Inclusivity Leadership Director

Empowering women economically

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SmartfuturesforyoungstudentsSmartFuturesisa10-monthsocialmobilityprogramdesignedtounlockthecareerpotentialofbrightyoungstudentsfromlowersocioeconomicbackgroundsintheUK.Theprogrambuildsparticipants’awareness,confidenceandbusinessskills.Atthecoreoftheprogramisathree-weekpaidplacementatEYthatculminatesinstudentsworkingwithourteamsanddeliveringonrealprojects.

EachstudentisprovidedwithanEYmentorandisinvitedtoaseriesofalumnievents.Unlikemanyworkexperienceprograms,SmartFuturesisarealstepping-stonetowork,withjoboffersmadeto30%ofthe2012cohort.

“Whileworkingwiththeclient,mypresentationandtimemanagementskillswereputtothetest,andI’vecomealongwayfromwhereIwasatthestartoftheprogram.BeforeSmartFutures,IhadnoideawhatIwantedtodointhefuture.Thelastthreeweekshavebeenoverflowingwithinformationandcareerchoices.Sowhataremyplans?Iamdefinitelygoingtoapplyfortheschoolleavers’programwithEY,whereIwilldoanACAqualification,asIamworkingtobecomeanexternalauditor,”saysFahimHussain,SmartFuturesstudent.

Wearecommittedtodevelopingfutureleadersthroughourprogramstohelpyoungpeoplegaintheskillsandexperienceneededtosucceedintheworkplace.

Ourpeopleprovideleadershipskillstraining,extratutoring,mentoringandassistancetothenextgenerationofleaders.Ourgoalistosettheseyoungpeopleupfortheirlong-termsuccess,whichwillallowthemtosupportthemselvesandultimatelytoreinvestintheirfamiliesandcommunities.

Wedothisbygivingyoungpeopletheskillsandknowledgetomanagefinanceseffectively.Withgreaterfinancialliteracy,theyaremoreabletoplanforthefutureandtakecontroloftheirlives.Forexample,wesupporttheTraitd’UnionMulticampusMultiquartierssocialinclusionprogramrunbytheEMLyonsBusinessSchoolinFrance.Itenableshighschoolstudentstolearnmoreabouttheworldofbusinessandundertakefurthertrainingthatmightotherwisehaveseemedbeyondtheirreach.

Manyyoungpeopleneedsupporttojointheworldofwork.InMadrid,aspartoftheProyectoBarrios(NeighborhoodProject),wearehelpingtheunemployedinsomeofthecity’smostdeprivedareastodevelopskillsincludingIT,jobsearchingandCVwritingaswellasfinancialmanagement.

Itisnotonlyformalskillsthatyoungpeopleneedtosucceedinlife;confidenceandself-motivationarejustasimportant.IntheUK,theThinkForwardinitiativeweco-foundedhasdevelopedabespokementoringprogram,bringingtogetherourgraduateswithyoungpeoplemostatriskofbecomingaNEET(notineducation,employmentortraining).

Meanwhile,inBelgium,ourcolleaguessupporttheBorninAfricacharity,whichstimulatessocialandeducationaldevelopmentinchildren,strivingtodevelopwell-rounded,independentandsuccessfulyoungadultswhowillactasrolemodelsintheirAfricancommunities.

WevolunteerwithYoungEnterpriseSwitzerlandin165schools,usinginteractivegamestoteachprimaryandsecondaryschoolpupilshowtomanagemoney.

Similarly,ourpeopleinLuxembourghavesupportedSOSChildren’sVillageforthepast10yearsbygoingintoclassroomsandworkingalongsidechildrenonarangeofeducationalgames.

Supporting the future workforce

EY office in Eschborn, Germany

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Webelievethateveryonehasacontributiontomaketoreduceourimpactontheenvironment.Wearechallengingourselvestoworkinamoreenvironmentallyfriendlymannerandtofindnewwaystoreduceourcarbonfootprintandwastestream.

WorkingwithourClimateChangeandSustainabilityServicesprofessionals,wehaveestablishedaglobalmethodologyforcalculatingourenvironmentalimpacts.Wecontinuetorefineit,lookingtodevelopourmethodsandemploybestpracticestomakesurewehaveacredibleglobalfootprint,meaningfulgoalsandambitiousreductiontargets.

ContinuousimprovementonefficiencyWecontinuetoglobalizemanyofourcorebusinessfunctions,suchasrealestate,IT,travelandprocurement.Thisallowsustoimprovetheenvironmentalsustainabilityofouroperationsmoreconsistently.Forexample,ourglobalrealestategroupissystematicallyreducingenergyusageinourofficesaroundtheworld,andglobalITisinstallingtelepresenceinkeylocationstoreducetravel.Byengaginggloballywiththesegroups,weareabletosetglobalenvironmentalgoalsandmeasureprogress.

MeetingsandeventsarepartofourworkinglivesatEY.However,weunderstandtheneedtobalanceourdesireforpersonalinteractionwithourcommitmenttosustainability.That’swhywehavedevelopedourGlobalSustainableMeetingGuidelines,whichencourageourpeopletokeepsustainabilityinmindwhenplanningameeting,creatingawarenessaboutsustainabilityduringthemeeting,andincludingmeetingparticipantsinacommunityengagementactivity.

ReducingofficeenergyconsumptionWearechallengingourexistingbusinesspracticeswithinitiativestoreduceofficeenergyconsumption.TwoexamplesofthisareourofficesintheNetherlandsandGermany.

OurheadquartersinAmsterdamare10%moreefficientthantheDutchenvironmentaltargetsandaddressarangeofenvironmentalimpactsaswellasimprovingtheworkingenvironmentforouremployees.

LikewiseinGermany,theEYEschbornofficesaves74tonnesofcarbonannuallyfollowingtheimplementationofmoreefficientenvironmentalmanagementsystems.

Awards and recognitionThe EY office in Eschborn, Germany, has been awarded the ECOPROFIT certificate, recognizing its efforts in operating in a sustainable and environmentally friendly manner.

Planning for a greener future

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Carbon emissions associated with our air travel this year:

Werecognizethata16%reductiononairtravelCO2e/FTEfromthepreviousyearrepresentsgoodprogress.However,wearealsoawarethatthisisonlya1%reductiononthe2010baseline,whichour12%reductiontargetissetagainst.Forthatreason,weintroducedaseriesofinitiativesandcampaignsthisyeartoencouragebehaviorchangesamongourpeople.

6,634tCO2e

Note: Where it is not possible to obtain source data, data modeling is used to estimate EMEIA Financial Services carbon emissions.

Compared with the prior year, we were able to reduce our air-travel-related carbon emissions per full-time equivalent employee by

16%

An equivalent of

0.86tCO2e/FTE

2013 carbon emissions for EMEIA Financial Services

20,918Total carbon emissions

(inmetrictonnes)

Scope 2 Officeenergyconsumption

► Electricity ► Heat/steam

31%7%Scope 1 Directfuelusage

► Diesel ► Naturalgas

Scope 3 Businesstravel

► Airtravel ► Rentalcars ► Employee-ownedcars ► Railtravel

62%

FocusonbusinesstravelDuetothenatureofourbusiness,ourimpactontheenvironmentislesssignificantthanthatofmanyotherindustries.Nevertheless,werigorouslyassesstheimpactwedohaveandworkonreducingthis,whilestillgrowingasanorganization.

EMEIAFinancialServicesconducteditsfirstcarbon-footprintingexercisewithinEYin2010.Afterreviewingourimpactfromdirectfuelusage,officeenergyconsumptionandbusinesstravel,itwasclearthatbusinesstravelrepresentedthebiggestportionofourenvironmentalimpact.Thisisstilltruethreeyearslater.

Asahighlyintegratedfinancialservicespractice,weinevitablyrelyonairtravelforemployeemobility.Thismeansairtravelrepresentsoverhalfthecarbonemissionsofourbusinesstravel—contributingtoathirdofourtotalemissions.Weaimtogrowasanorganization,butwewanttodososustainably,whichiswhywehavesetatargettoreducecarbonemissions(CO2e)associatedwithairtravelby12%perfull-timeequivalent(FTE)employee,bythefiscalyear2015fromthefiscalyear2010baseline.

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ChangingbehaviorTohelpusbettermanageandreducethebiggestcontributortoourcarbonfootprint—airtravel—EMEIAFinancialServicesextendedairtravelcarbonemissions(CO2e)measurementandreportingin2013.Aspartofthequarterlycorporatesustainabilityscorecard,airtravelCO2eismeasuredandreportedtoprovideleadershipwithaclearviewofprogressandareasforimprovement.

InresponsetoCO2efigurespublishedinthescorecard,EYGermany’sfinancialservicesmarketleaderhighlightedtheamountofCO2ethatcouldbereducedifdomesticflightswerereplacedbyrailjourneys.UsingtheFrankfurttoMunichcommuteasanexample,theairtravelcampaignclearlyshowstheminimalcostandtimedifferencebetweendomesticflightandrailtravel:

€138–€609 (Economyclass)

€146 (Firstclass)

3hr 6min

3hr 10min (incl.traveltimetoairport/check-intime)

Similarly,EYSwitzerlandistakingconcretestepstoreduceitscarbonfootprint.Forexample,allflightstointernalmeetingshavetobeapprovedbytheheadoftherelevantbusinessunit,andanyflightstoseeclientsarecarefullyassessedanddiscussedwiththeclient.Furthermore,eachemployeereceivesahalf-faretravelcardfreefromEY,whichcanalsobeusedforprivatetravel.GiventhedistanceswithinSwitzerland,trainsareanidealmeansoftransportation,andthenewofficebuildinginZurichiseasilyaccessiblebytrain.

EffortsarealsobeingmadeatanEMEIAlevel:forexample,restrictionshavebeenplacedonnon-client-relatedtravelinthethirdquarterofthisfiscalyearand,asaresult,252fewertonnesofCO2 wereemittedthaninthesameperiodin2012.Thatistheequivalentof210returnflightsfromLondontoNewYork.

London

New York

210 return flights

WorkingwithclientstoreduceenvironmentalimpactAsasignatorytotheUnitedNationsGlobalCompact,wearecommittedtoimprovingourenvironmentalpractices.Weunderstandthatwecangenerateimprovementsnotonlyforourselvesbutalsoforourclients.Projectteamsareprovidedwithaguidecontaininginnovativeideasandexamplesofgoodpracticestohelpthemidentifywaystoembedenvironmentalpracticesinclientwork.

Ourprojectteamshavebeenincorporatingcarbonreductioninitiatives,suchasalterationstotravelpatterns.Oneexampleisthe3/1travelarrangement,whichinvolvesteamstravelingtoclients’sitesforthreeweeksandworkingfromhomeoratthelocalofficeonthefourth.Thisprovidesacostbenefittoourclients,savestimeforourpeopleandreducesbothourandourclients’impactontheenvironment.

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EmbeddingasustainablecultureAchievingourvisionofbuildingabetterworkingworldwouldnotbepossiblewithoutembeddingsustainabilitywithinourorganization.ThefollowinginitiativesareavailabletoFSpeopleacrossEMEIA:becominganEarthWatchambassador,submittingideastotheIdeasBankandbecominganeco-champion.

EarthWatchambassadorsSince2008,EYhasbeenworkingwiththeEarthWatchInstitute,aninternationalnot-for-profitorganizationengagingpeopleworldwideinscientificresearchandeducationaboutsustainableliving.Thisyear,EarthWatchambassadorsfromEMEIAFinancialServices—AlexAbrahams(UK),RobinSchlarb(Germany)andJostaKolkman(Netherlands)—traveledtoIndiaforaweek-longexpeditionhelpingtwoentrepreneurswithresearchintotheeffectsofclimatechangeontheHosurforest.

TheEYteamtookupthechallengeofdeliveringbusinessoptimizationsolutionsfortheTotagar’sCooperativeSalesSociety(betelnutandspicegrowers)andSahyadriParisaraVardhini(designersandmarketersofenvironmentallysustainableenergydevices).Ourteamalsohelpedtoenumerateandmapabout450treesintheregion.

SustainabilityDayEstablishedin2012,theEMEIAFinancialServicesSustainabilityDayisanawarenesscampaignthatpromotesskills-basedvolunteeringandsustainablebusinesspracticesacrossourmarkets.In2013,morethan400ofourpeopleparticipatedin20eventsandtookpartintheFSSustainabilityExchange—anall-employeewebcasthostedbyourmanagingpartner.TheFSSustainabilityExchangeraisesawarenessoftopicalsustainabilityinitiativesandprovidesanopportunityforourpeopletodiscusssustainabilityissueswithleadership.

Inadditiontoemployeedonationstolocalcharities,moneyraisefromthesaleofEYmerchandisewenttoKiva,amicrofinancecharitythatprovidessmallloanstohelpalleviatepoverty.

“Ihavepersonallyseencommitmenttocorporatesustainabilitygrowconsiderablyinjustafewyears.Notonlydoesthishelpeachandeveryoneofustogetmoreinvolvedandcontributeinavarietyofways,italsosendsthemessagethatanorganizationlikeEYisnotonlyconcernedaboutnumbers,butaboutpeopleandthecommunitytoo,”JosephPaulAkeley,SupervisingAssociate,Italy.

IdeasBankForthesecondyearrunning,EMEIAFinancialServicesconductedacompetitionengagingourpeopletocomeupwithoriginalandpracticalideastohelpEYreducetheenvironmentimpactofourbusiness.

Almost100ideasweresubmitted,rangingfromlocalinitiativesthatcouldbedisseminatedacrosstheregion,toEMEIA-wideideas,encouragingpeopletomakeadifference.

PresentingtoajudgingpanelthatincludedourFinanceDirector,MarketingManagerandHeadofCorporateSustainability,FSTaxexecutiveMadeleineSouthallstoodoutfromtherest.Herideawastochangetheprocessofstoringlargeamountsofpaperfilestoonlinemedia,suchas“E-rooms.”Thiswouldresultinsignificantsavingsonprinting,filingandtime.Theideaisnowbeingtakenforwardforimplementation.

Eco-championsWehavemanypeoplewhoarepassionateaboutreducingourimpactontheenvironment.Toharnessthispassion,peoplecantakeontheroleofeco-champion.Oureco-championsworktoincreaseawarenessandimplementinitiativeswithinourofficesandonprojectteams.OurUKofficehasenlistedvolunteersoneveryofficefloortobe“environmentchampions”toeducatetheirpeersaboutbestpracticesrelatedtoreducingwasteandenergyuse.

Ideas Bank winner: Madeleine Southall

EarthWatch ambassador: Josta Kolkman

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How we are organized and governed Contents

40Howweareorganizedandgoverned41Instillingandabidingbyprofessionalvalues44Rigorousapproachtoquality45Partnerremuneration

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Instilling and abiding by professional valuesAtEY,wefirmlybelievethatourprofessionplaysavitalroleinpromotingconfidenceinfinancialreportingandtheworld’scapitalmarkets.

Wealsounderstandthat,apartfromourpeople,ourreputationisourmostimportantasset.Oursharedapproach,globallyconsistentpoliciesandpractices,independenceprocessesandCodeofConductstrengthenourabilitytosetthebarforservicequality.

OurCodeofConductEY’sGlobalCodeofConductsetsoutourorganization’sstandardsandvalues.Itisaframeworkofethicalrulesandbehavioralguidelinesthatgovernhowweworkeveryday.ItunderpinsallourdecisionsandismonitoredbyanexternallyoperatedEYEthicshotline.Theseprinciples—whichareapplicabletoeveryonewithintheorganization,regardlessoftheirindividualrole,positionorpractice—fallintofivekeycategories:

1. Workingwithoneanother

2. Workingwithclientsandothers

3. Actingwithprofessionalintegrity

4. Maintainingourobjectivityandindependence

5. Respectingintellectualcapital

WeaskeveryoneatEYtomakeapersonalcommitmenttoabidebyourGlobalCodeofConduct.Ofcourse,havingasetofprinciplesisonlypartofthestory;whatreallymattersisensuringthattheyareembeddedwithinourcultureandenforcedateverylevelofthebusiness.Itismandatoryforallemployeestocompleteanti-briberyandanti-corruptiontraining.

EYhasazero-tolerancepolicyconcerningunethicalorillegalbusinesspractices,andweavoidworkingwithclientsandsupplierswhosestandardsareincompatiblewithourGlobalCodeofConduct.Wehaveanopenandtransparentrelationshipwithregulatorybodies,includingtaxauthorities.

TheEYGlobalCodeofConductprovidesaclearsetofstandardsthatguideourmemberfirms’actionsandbusinessconduct.Memberfirmscomplywithapplicablelawsandregulations,andourvaluesunderpinourcommitmenttodoingtherightthing.ThisimportantcommitmentissupportedbyEYpoliciesandprocedures,includingthoseconcerninganti-bribery,insidertrading,dataprivacyanddocumentretention.

of our people have signed EY’s Code of Conduct

100%

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Chairman’s Values AwardTheChairman’sValuesAward(CVA)waslaunchedin2006tocelebrateourpeoplewhoepitomizethevaluesofEY.Ithashelpeduniteourorganizationanddemonstratehowourvaluesaresharedacrossbordersandcultures.Since2006,theprogramhasreceivedmorethan19,000nominationsandrecognizedover400ValuesChampions.TheFSOValuesChampionforthelastfinancialperiodisExecutiveDirectorKaiBraun,workinginAdvisoryatourLuxembourgoffice.Kaireceivedtheawardforthesupportheoffershisteamonbothaprofessionalandapersonallevel.

Onacceptingtheprestigiousaccolade,Kaisaid,“WinningaCVAis,ofcourse,agreatachievement,butformethemostimportantpartisthatthenominationsandfeedbackcamedirectlyfromthepeopleIworkwithonadailybasis—myteamandothercolleagues,bothlocalandinternational.”Whenaskedwhatittakestobeastrongleader,Kaisaidhistopthreeprioritiesare“leadingbyexample,beingyourselfandremainingopentocolleaguesateverylevel.”

Settingthe“toneatthetop”Settingtherighttoneatthetopisakeyresponsibilityofourseniorleadershipteams.Wecommunicatetoourpeoplethatqualityandprofessionalresponsibilitystartswiththem.Seniormanagementregularlyreinforcestheimportanceofperformingqualityworkandcomplyingwithprofessionalstandardsandourpoliciesthroughvariedformsofcommunication.Weplacespecialemphasisontheimportanceofconsultingwithcolleaguesandworkingcollaborativelywhendealingwithcomplexorsubjectivematters.Assessingthequalityofprofessionalserviceisaperformanceindicatorinevaluatingandrewardingallprofessionals,andweincludesustainabilityasacriterioninthatevaluation.

Ourapproachtoethicsandintegrityisembeddedin ourinternalcommunicationsandtrainingprograms(e.g.,onanti-corruption,unconsciousbias,dataprivacyandvalues).

Ourculturestronglysupportscollaborationandteamworkandplacesspecialemphasisontheimportanceofconsultationindealingwithcomplexorsubjectivematters.

TheimportanceofindependenceIndependenceisfundamentaltotheauditprofessionandmustexistinalldealingsbetweenEYmemberfirmsandtheirauditandassuranceclients.MaintainingEY’sindependenceispivotalforachievingauditquality.Formoreinformationrelatedtoauditorobjectivity,aswellasinformationrelatingtoclientacceptance,qualityreviewsandotheraspectsofourinfrastructure,pleaserefertotheTransparencyReport2012.

ThefightagainstcorruptionWeworkwithexternalnetworksandgroupstoraiseawarenessofandfightcorruption.Asaglobalbusinessleader,wejoinorganizations,suchastheWorldEconomicForum(WEF)andTransparencyInternational,tohelpfindwaystoaddressthesocialandeconomicchallengesofourtime.WeareasignatorytotheWEFPartneringAgainstCorruptionInitiative(PACI)PrinciplesforCounteringBribery,makingusoneofapproximately170organizationsthathavecommittedtostrengtheningeffortstocountercorruptionandbriberythroughPACI.Since2006,wehavesponsoredsomeofTransparencyInternational’smostwidelydistributedstudiestosupporttheorganizationinitsmissiontostopcorruptionandpromotetransparency,accountabilityandintegrityatalllevelsandacrossallsectorsofsociety.

EYisextremelypassionateaboutdisruptingglobalcorruptionandmakingadifferencebyraisingthecapabilitiesoforganizationstofindandpreventalltypesoffraud.Weemployarisk-basedapproachtothedevelopmentofanti-corruptionprograms.Implementingtherighttechnologyisavitalelementinaneffectiveprogram,includingrisk-basedreviewsofprocurementprocesses.Forexample,ourteamofcivilengineersandfraudinvestigatorsworktogethertodevisespecificteststoidentifyunusualpatternsoffinancialactivityrelatedtoconstructionprojects.Similarreportingcouldbedevelopedatacountryleveloverthelongerterm.

WeareproudofourcommitmenttoreducingbriberyandcorruptionandempoweringtheglobalcommunitythroughourcollaborationwiththeAssociationofCertifiedFraudExaminers(ACFE)andtheOpenComplianceandEthicsGroup.

Additionally,weareactivemembersoftheInternationalCorporateGovernanceNetwork,participatinginanumberofinvestorgroupsindifferentcountriestoraisethestandardsofcorporategovernanceworldwide.

Kai Braun

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DatabreachesWeknowthatthetrustourclientsplaceinusisvital.OurGlobalCodeofConductstipulatesthatallouremployeesaretorespectandprotectthepersonalandconfidentialinformationreceivedfromorrelatingtoEY,clientsorthirdparties.Our“ProtectingyourData”brochuresetsouthowweapproachdataprotectionandinformationsecurity.

Therewerenodatabreachesofclientprivilegedinformationorconfidentialdatalossesinthereportingperiod.However,likeotherlargeorganizations,wedoexperienceincidentsofsuspectedbreachestoourCodeofConductfromtimetotime.Whenanincidentoccurs,werespondpromptlytoinvestigate,takeremedialactionandprovidenotificationtotheaffectedpartieswhereappropriate.Asamatterofgoodsecuritypractice,wegenerallydonotdiscussthedetailsofspecificincidentsoutsidethecontextofnotification.

TrainingonprivacyanddataprotectionTrainingisgiventoallnewhiresandexistingpeople,andthereisafirm-wideongoingsecurityawarenesscampaign.AllEYmemberfirmsmustcomplywithEY’sglobalprivacypolicyandBindingCorporateRules.

procurement-issued contracts included the Supplier Code of Conduct

83%

StandardsforsuppliersOursuppliers’performanceandadherencetohighbusinessstandardsisanimportantandintegralpartofthevaluechainforEY.Wepromoteandexpecttheapplicationofhighlegal,ethical,environmentalandemployee-relatedstandardswithinourownbusinessandamongoursuppliers.EY’sglobalprocurementpolicyensuresourindependencewhendealingwithsuppliers,requiringustoevaluatetheimpactofourprocurementdecisionsandencouragesupplierstobesustainable—includingfullconsiderationofhumanrights.

EYalsooffersawidevarietyofsupplychainandoperationsservices,fromstrategy,designandplanning,toprocurement,manufacturinganddistribution.Withourmultidisciplinaryapproach,weareabletoadviseclientsontax,transaction,IT,riskandsustainabilityissues.EMEIAFinancialServicesiscurrentlysupportingaglobalbankandauditingitssecondaryandtertiarysupplierstocheckforhumanrightsbreachesandputtingpreventativemeasuresinplaceinhigh-riskareas.

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Allofourservicelineshavemadeacommitmenttoprovideexceptionalclientservice.Todeliveronthispromise,weareembeddingexceptionalclientserviceintohowwemeasurequality,ourpeople’sgoalsandevenourrecruitmenttechniques.

Providingexceptionalclientservicerequiresunderstandingclients’differentneedsandtailoringourservicesforthembasedontheirsizeandtheindustryinwhichtheywork.Wehavealwaysbeenourmostdemandingcriticandrecognizethatclientsatisfactionisfundamentaltothewaywedobusiness.Webelieveinmeasuringthepointsthatmattertoeachindividualclient,andwehaveagenuineinterestin,andcommitmentto,fosteringimprovements.

Tomakesurethatwemeetthehighstandardswehavesetforourselves,andthosethatourclientsdeserve,ourAssessmentofServiceQuality(ASQ)programisanimportantaspectofwhatsetsusapartfromourcompetitorsonthemarket.Throughtheprogram,anindependentEYteamgathersfeedbackfromourclientseitherthroughanintervieworbysurvey.

InterviewsareconductedbyseniorEYprofessionalswhoarenotinvolvedinservicedeliverytoensureanobjectivediscussionandfeedbackthatwecanbuildonandrespondto.Thisyear,clientsawardedusascoreof8.2whenaskedhowlikelytheywereonascaleof0to10torecommendustoacolleagueorfriend.

ASQdoesnotreplaceongoingservicedeliverydiscussionswehavewithourclients.Rather,itsupplementsthembyformallymeasuringhowyouviewthequalityofourservicesandoureffectivenessinmeetingexpectations.ListeningandrespondingtofeedbackistheEYwayofdoingbusiness.Webelievethatthisapproachtocontinuousimprovementallowsustobuildtrustandstrengthenrelationships.

Rigorous approach to quality

45

SignificantorganizationalchangesEYEMEIAFinancialServices hasexperiencednosignificantchangesintermsofownershiporstructureduringthe2013fiscalyearreportingperiod.

Partner remunerationPartnersandotherprofessionalsareevaluatedandcompensatedbasedoncriteriathatincludespecificqualityandriskmanagementindicators,coveringactionsandresults.

GlobalPartnerPerformanceManagement(GPPM)isagloballyconsistentevaluationprocessforallpartnersaroundtheworld.Itreinforcestheglobalbusinessagendabylinkingtheirperformancetowidergoalsandvalues.GPPMisanongoingcyclicalprocessthatincludesgoalsetting,personaldevelopmentplanning,performancereview,andrecognitionandreward.Itisusedasthecornerstoneofthememberfirms’evaluationprocesstodocumentpartners’goalsandperformance.Apartner’sgoalsarerequiredtoreflectvariousglobalpriorities,oneofwhichisquality.

Apartner’sgoalsarealsorequiredtoalignwithourVision2020strategyandreflectvariousglobalpriorities,suchasquality,exceptionalclientserviceandhigh-performanceteaming.

Specificqualityandriskmanagementperformancemeasureshavebeendevelopedtotakeaccountof:

► Technicalexcellence

► LivingEY’svaluesasdemonstratedbybehaviorsandattitude

► Demonstratingknowledgeof,andleadershipin,qualityandriskmanagement

► Complyingwithpoliciesandprocedures

► Complyingwithlaws,regulationsandprofessionalduties

► ContributingtoprotectingandenhancingtheEYbrand

Partnercompensationphilosophycallsformeaningfullydifferentiatedrewardsbasedonapartner’slevelofperformance,asmeasuredbytheGPPMprocess.Partnersareassessedannuallyontheirperformanceinquality,leadingpeople,operationalexcellence,andmarketleadershipandgrowth.Torecognizedifferentmarketvaluesfordifferentskillsandroles,andtoattractandretainhigh-performingindividuals,thefollowingfactorsarealsoconsideredwhencalculatingtotalreward:seniority,roleandresponsibility,long-termpotentialandmobility.

Instancesofnon-compliancewithqualitystandardsresultinremedialactions,whichmayincludecompensationadjustment,additionaltraining,additionalsupervisionorreassignment.Apatternofnon-complianceorparticularlyseriousnon-compliancemayresultinactionsthatincludeseparationfromthememberfirm.

46

Contents

46Aboutthisreport47Definingtheboundariesofthereport47Determiningreportcontentandmateriality49Engagingwithourstakeholders50GRIsummarytable51Dataoverview52CorporateSustainabilitygovernancestructure53CSandD&Iteamstructure54Providingsustainabilityinsights56Minimizingourimpact

About this report

47

BoundarylimitationsHeadcountinthemarketslistedthatarenotpartofEMEIAFinancialServicesarenotincludedinthescopeofthisreport.AlsoexcludedfromourboundariesarecompaniesthathavearelationshipwithEYbuthavenofinancialtiestoEMEIAFinancialServices.Therehavebeennosignificantchangesfromthepreviousreportingperiodinthescope,boundariesormeasurementmethodsappliedinthisreport.Inaddition,wearenotawareofanysuchmattersthatcouldsignificantlyaffectcomparabilitybetweenperiodsororganizations.

Determining report content and materialityIndevelopingthe2013sustainabilityreport,EYEMEIAFinancialServiceslistenednotonlytoourpeople,clientsandmemberswithinourownservicearea,butalsotostakeholdersfromotherEYmemberfirms.

ItisthegoalofEY’smemberfirmsgloballytoproduceasingle,consistent,cohesivesustainabilityreportinthefuture.Asafirststepinthisjourney,EY,atagloballevel,createdasustainabilityworkinggroup.Participantsfrommorethanadozenmemberfirmscametogethertodevelopastandardreporttemplate—abasereportfromwhicheachparticipatingcountrycouldproduceacustomizedreportthatreflectedspecificachievementsandimpactswithinitsservicearea.

Thesustainabilityworkinggroupengagedlocalstakeholdersfrommorethanadozencountriesasameanstoidentifytheperformanceindicatorsthatstakeholdersconsidermaterialandrelevantglobally.

EYispleasedtopresentthe2013sustainabilityreportforEMEIAFinancialServices(FS).Ourreportspansour2013fiscalyear,from1July2012to30June2013.Thisreportfollowsourpreviousreport,publishedin2012.Wearecommittedtoreportingannuallyonouractivities.

Defining the boundaries of the report

GeographicboundaryOurboundaryforthisreportencompassesEMEIAFinancialServices,whichincludesthoseworkinginfinancialservicesacrossBelgium,France,Germany,Italy,Luxembourg,theNetherlands,Portugal,Spain,Switzerland,UK,ChannelIslandsandIreland.

EnvironmentalboundaryWherepossible,ourcarbonfootprintwascalculatedinaccordancewiththeWorldResourcesInstitute/WorldBusinessCouncilforSustainableDevelopment’sThe Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard.WhereitwasnotpossibletoobtainFS-specificsourcedata,aheadcountliftwasusedfromourglobalcarbonfootprintreport.Forexample,asourFSandnon-FSheadcountshareofficespace,itwasnotpossibletodifferentiatecarbonemissionsotherthanthroughaheadcountlift.

Ourcarbonfootprintcoversthefollowingthreescopes:

Scope 1

Directfuelusage

Scope 2

Officeenergyconsumption

Scope 3

Businesstravel

EmissionsassociatedwithfuelcombustionareincorporatedintoScope1.Thisincludesdieselandnaturalgas.EmissionsrelatedtoofficeenergyconsumptionareincorporatedintoScope2,regardlessoftheleaseagreement.Thisincludeselectricityandheat/steam.Emissionsresultingfrombusinesstravel,includingair,railandroadvehicles,areincorporatedintoScope3.

48

MaterialityTodeterminethematerialityofthesustainability-relatedissuesourstakeholdersraised, weconsideredthefollowingsources:

► EY’sVision2020purposetobuildabetterworkingworldandourstrategytodeliveronourvision

► AselectionofEYcountry-specificsustainabilityreportsfrompreviousyears

► Competitorglobalsustainabilityreportsavailableinthepublicdomain

► Workinggroupresearch,analysisandobservations

► Stakeholdersurveyresultsthatspancurrentandtargetclients;ourpeople(fromseniorleaderstonewrecruitstoalumni);andourcommunities(entrepreneurs,tradeassociations,stockexchangesandregulators,andnon-for-profitorganizationswithwhichwecollaboratewithinourcommunities)

Onceweaggregatedthedata,wedevelopedamaterialitymatrixthatforce-rankedthevarioussustainabilityissuesagainststakeholderinterestandrelevancetoourbusinessimpacts.Stakeholdersurveyresultsfromallparticipatingcountrieswereweightedequally,eventhoughthenumberofparticipantsmayhavevariedfromcountrytocountry.Internalandexternalstakeholderswerealsogivenequalweight.Keyperformanceindicator(KPI)ratingsweredeterminedusingasystemwhere0equalsnotimportant,50equalsimportantand100equalsveryimportant.Onthebasisofratings,weidentifiedthetopKPIsandalignedthemtoGlobalReportingInitiative(GRI)3.1Guidelinesthatourparticipatingcountrymemberfirmscouldreporton toreceiveanApplicationLevelBratingfromGRI.

ThematerialitychartshowstheselectedGRIperformanceindicatorsaccordingtotheirimpacts andstakeholderimportance.

Potential impact

Impo

rtan

ce to

sta

keho

lder

s

What’simportanttoyouisimportanttous

Hig

h

High

Low

Low

Laborrelationships

Compliance

Environmentalimpactsoftransportation

Sustainability-related subjectsincludedinemployeetraining

Occupationalhealthandsafety

Waste

Employeebenefits

Materialsused

Employee retentionrates

Supplier humanrights

Governance

Anti-corruptionClimatechangeandenergyefficiency

Responsible procurement

Employeetraining anddevelopment

Volunteering

Customerprivacy

Embeddingsustainability intoourservices Environmental

impactsofproductsandservices

Publicpolicy

Customersatisfaction

Marketshare

Equaloverallremuneration

High materiality

Medium materiality

Low materiality

Discrimination

Contributingto economic development

49

EY

1

2

3

Sust

aina

bilit

y su

rvey

cont

aining GRI indicators and EY-specific indicators to be rated

• Ene

rgy s

aved due to conservation and efficiency improvements

• Init

iative

s to re

duce indirect energy consumption (purchased electricity) and re

ducti

ons achieved

Current clients – Target clients

• Act

ions t

aken in response to incidents of corruption

Our

clients count on us to deliver exceptional

Our clients

clien

t service so they can grow and thrive.

development review

s, by gender • Percentage of em

ployees receiving regular performance and career • Actions taken in response to incidents of corruption

Entrepreneurs – Trade associations - Stock exchanges and regulators – Non-profit organizations

growth in areas w

here we have the greatest impact.

Our com

munities

We are com

mitted to fostering sustainable

• Energy saved due to conservation and efficiency improvements

• Initiatives to reduce greenhouse ga

s em

issio

ns (

from

pur

chas

ed

(purchased electricity

) an

d red

uctio

ns a

chie

ved

• Initiatives to reduce indire

ct en

ergy

cons

umpt

ion

electricity and business tra

vel) an

d red

uctio

ns a

chie

ved

• Energy saved due to conservatio

n and e

fficie

ncy

impr

ovem

ents

Partners and senior leaders – Client- a

nd non-cl

ien

t-ser

ving

empl

oyee

s –

New

recr

uits

, stu

dent

s an

d in

tern

s –

Alu

mni

experience is bette

r tha

n wo

rkin

g an

ywhe

re e

lse.

We want to

ensure

that

the

EY w

ork

Our p

eopl

e

1. How we engage with our stakeholders2. Why our stakeholders are important to us3. Key issues our stakeholders say are the most important

Engaging with stakeholders Ourapproachtothe2013sustainabilityreportreflectsEY’sstrategicambitiontostrengthengloballybutempowerlocally,toemboldenourstakeholderrelationshipseverywhereandtobecomethemostfavoredemployerinourindustry.Toachievetheseambitiousgoals,itisabsolutelyvitalthatwelistentoourstakeholders—ourclients,ourpeopleandourcommunities.Welearnwhatisimportanttothem,howtheyviewustodayandthepaththeyexpectustofollow.Theseinsightshaveadirectimpactonour

success.Theyenableustoidentifymaterialissues,includingrisksandopportunities;enhanceourapproachtorisk;andimproveourperformance.Assuch,weneedtounderstandtheirviews,adaptourapproachordirectiontoreflectourunderstanding,andcommunicatetheimpacttheirinputhas.Thediagramaboveindicateshowweengagewithourstakeholders,aswellastheirinterdependenceandinfluenceonourdecision-making.

50

Global Reporting Initiative (GRI) Index

Indicator Location1.1 2

1.2 3

2.1 Cover

2.2 1,4,9

2.3 1,52,53

2.4 1

2.5 1

2.6 44

2.7 1 9

2.8 1,47

2.9 47

2.10 5,9,13,14,19,22,24,27,32,36

3.1 47

3.2 47

3.3 47

3.4 53,56

3.5 47–49

3.6 47

Indicator Location3.7 47

3.8 47

3.9 36–37,47–48

3.10 51

3.11 47

3.12 50

3.13 50

4.1 52,54–55

4.2 2,52

4.3 22,51,54

4.4 18–19

4.5 44,27,29–39,51

4.6 41–42

4.7 22–24

4.8 2,5,27,37,41–43

4.9 41–44

4.10 41–44,51–53

4.11 41–45

Indicator Location4.12 4-5,14–15,

23–24,31–35,54

4.13

4.14 47–49,52–53

4.15 47–49

4.16 47–49

4.17 48–49

EC1 1,5,29,31–33,34,51

EC8 8–15,30–39, 51,54

EN1

EN2

EN3 36–38,51

EN4 36–38,51

EN5 36–38,51

EN6 36–39

EN7 36–39

EN16 37,51

EN18 36-39

Indicator LocationEN26 38–41

EN29 36–39

LA1 17,18, 23,51

LA2 51

LA3 26–27

LA10 17,19,51

LA12 19

HR2 43

HR4

SO2 41–43

SO3 41–43

SO4 42–43

SO5 8–12,14–15

SO8 42–43

PR5 5,7,44

PR6

PR8 43

PR9 SeeSO8

EYusestheGlobalReportingInitiative(GRI)G3guidelinesasafoundationforourreportingapproach.Forthelasttwoyears,wehaveconductedaninternalnon-financialaudittoassurethemeasuresdeclaredwithinthisreport,andchallengeourselvestoimprovebothourtransparencyandperformance.

TheGRIsummarytablebelowindicateswheretofindreportinformationcorrespondingtotheGRI’s3.1guidelines.OurcompleteGRIcontentindexisavailableonline.Formoreinformationabouttheseguidelines,pleasevisittheGRIwebsite:www.globalreporting.org.

51

Data overviewThissectionpresentsanoverviewofallquantitativeKPIsdiscussedwithinthisreport.

WorkforceFY13 FY12

Recruitment:

Experienced hires 775 982

Graduates 901 1,096

Internal transfers:

Inbound 231 222

Outbound 191 183

Assignments within EMEIA FSO 76 86

Attrition:

Leavers 1,444 1,335

Turnover 18% 18%

Alumni network:

UK FS alumni network 3,300 2,314

Employee engagement index:

Responded favorably 62% 60%

TraininganddevelopmentFY13 FY12

Learning and development:

Average hours of training per employee

46 52

Participants 8,059 7,053

Training hours 372,966 366,257

Leadership development:

Number of employees promoted to partner

23 18

External hire partners 21 21*

Employees participated in international experiences

12% 12%

Communityinvestment

FY13 FY12

Total community investment US$5.5m US$4.8m

Volunteering:

Volunteers (1,29217%) (84712%)

Total hours committed 9,495 9,449

Hours donated per volunteer 7 11

Partner commitment:

Partners serving as directors/officers/trustees

10% Notmonitored

* Restatement due to refinement of measurement

Operations FY13 FY12

Number of employees: 7,727 7,363

Countries 12 12

Locations 64 68

Full time 95% 95%

Part time 5% 5%

Diversity(FY13)Female Male

Recruitment:

Experienced hires 273 (37%) 473 (63%)

Graduates 369 (41%) 532 (59%)

Employee numbers:

Partner/director 114 (16%) 585 (84%)

Senior manager 349 (30%) 819 (70%)

Manager 470 (36%) 843 (64%)

Senior 889 (41%) 1,255 (59%)

Associate 1,167 (48%) 1,257 (52%)

Leadership development:

Number of employees promoted to partner

3 (13%) 20 (87%)

External hire partners 1 (5%) 20 (95%)

Learning and development:

Average hours of training per employee

47 46

Participants 3,017 5,042

Training hours 141,020 231,946

EnvironmentalperformanceFY13

CO2(t)FY12

CO2(t)

Carbon emissions:

Scope 1: Direct fuel usage 1,424 1,398

Scope 2: Office energy consumption 6,611 6,438

Scope 3: Business travel 12,883 17,134

Total carbon emissions 20,918 24,969

Air travel:

Total carbon emissions 6,634 7,574*

Total carbon emissions per FTE 0.86 1.02*

FY13MWh

FY12MWh

Energy usage by source:

Electricity 3,979.6 3,872.9

Natural Gas 341.8 335.1

Diesel 6.5 6.7

Total Energy Usage 4,327.9 4,124.7

52

Corporate Sustainability (CS) governance structure

CSSteeringGroupReportingtotheEMEIAFinancialServicesRegionalLeadershipteam,theCSSteeringGroupprovidesdirectiononlarge-scaleCSinvestmentdecisionsforEMEIAFinancialServices,includingmajoropportunities,complexmulti-countryinitiativesandmulti-yearcommitments.Itsmembersproviderepresentationacrossourservicelines,sectorsandmarkets.

SteeringGroupmemberssupporttheCSagendaintheirrespectivelocations.Theirresponsibilitiesinclude:

► Ensuringeffectivegovernanceandbudgetoversight

► ContributingtoCSstrategyandyearlyplanning

► ReviewingCSperformanceagainststatedtargets

Andy BatesPartner, Assurance

Netherlands

Remco BleijsExecutiveDirector,

AssuranceandAdvisory

Germany

Robert BoppSeniorManager,

AssuranceandAdvisory

Belgium

Christel WeyermeerschPartner,

Assurance

Luxembourg

Olivier CoekelbergsPartner,

Assurance

Switzerland

Thomas SchneiderPartner,

Assurance

Italy

Aldo M. RigamontiPartner,

Assurance

Margo BlondelAssistantDirector, CoreBusinessServices

Hermin HologanPartner, Assurance

Adolfo Zunzunegui RuanoPartner, Tax

Andreia ReisSeniorAssociate, CoreBusinessServices

United Kingdom

Channel Islands

France

Spain

Portugal

Ireland

Sandra DawsonPartner, Tax

53

CS and D&I team structureEY’sEMEIAFinancialServiceshasadedicatedandintegratedCorporateSustainabilityandDiversity&Inclusivenessteamwithfinancialservicesindustryexpertise.

Theteamworkswithstakeholderstofostersustainablegrowthaswestrivetodoourpartinbuildingabetterworkingworld—supportingourclientstomeetcurrentneedswithoutcompromisingtheabilityoffuturegenerationstomeettheirs.

Ourinterestinsustainablegrowthextendsbeyondourorganization’scommercialservices—wefocusonsupportingentrepreneurs,developingthefutureworkforceandchampioningtheroleofwomeninbusiness.

SupportingEY’sTalentstrategy,theteamisresponsibleforestablishingleadingpracticesandsupportingcontinualimprovementonbothCSandD&IforEMEIAFinancialServicesinternaloperationsandemployeeengagement.

Beth Knight HeadofCSandD&I

Dalida TahaProgramOffice

Strategic projects and campaigns,temporaryresourcepool,assignedasrequired

InternationalWomen’sDayCampaign

Non-financialaudit

SustainabilityDayCampaign

Local D&I/CS teams

(13 countries)

Virtual Job Board Projects

Alistair BanceVantageServices

Lead

Whitney HollisVantage

Coordinator

Shipra GuptaCSOperations

Lead

Jemima JeffersonD&IOperations

Lead

Robert RosenbergD&ICoordinator

Cora NgCSandD&IPerformance

ImprovementLead

PICoordinator

Reporting Team

Pavan Ramakrishna Environment

Preethi Venkatesh Community

Thejaswini Nagaraj Diversity

CSCoordinator

Contacts:Beth Knight+ 44 20 7951 7121bknight@uk.ey.com

Cora Ng+ 44 20 7783 0887cng1@uk.ey.com

Jemima Jefferson+ 44 20 7980 9214jjefferson@uk.ey.com

Alistair Bance+ 44 20 7951 4144abance@uk.ey.com

Mailbox:corporatesustainabilityfso@uk.ey.com

54

PublicationsWebelieveitiscriticaltoshareknowledgethatenablesbusinessestocontinuallyimproveintheirsustainabilityefforts.Weregularlypublishthoughtleadershiponthesustainabilitytopicsthatareimportanttothefinancialservicesindustry.

Recentpublicationsinclude:

Providing sustainability insights

The Path Forward Continues...

The European and Dutch financial sectors viewed from a

non-financial perspective

November 2012

The Path Forward Continues … The European and Dutch financial sectors viewed from a non-financial perspective

Tax transparency: seizing the Initiative Tax transparency

Seizing the initiative

ESG and impact investing: an emerging business driver

ESG and impact investing: an emerging business driver

Building the bank of 2030 and beyond: the themes that will shape it

Building the bank of 2030 and beyondThe themes that will shape it

55

Wearecommittedtoconveningthedebateandpromotingdiscussiononsustainability-relatedmatters.Ourwebcastsareopentoall,andpasttopicshaveincluded:

► Managingincentivesinrapid-growthmarkets

► Reporting,taxandregulatoryupdate:whatalternativeinvestmentcompaniesneedtoknow

► Remakingriskmanagementinbanking

► Environmentalsustainabilityinfinancialservices

To access our webcasts, visit ey.com/GL/en/Issues/Thought-center-webcasts

Providing sustainability insights

Webcasts

56

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