It’s time to accelerate the pace of change · accelerate the . pace of change. ... others as we build trust in society and solve important problems – now and in the future. Our

September 01, 2018

It’s time to accelerate the pace of changePwC China’s FY19 Corporate Responsibility Report

2 | It’s time to accelerate the pace of change

“Now more than ever, we consider our role as a responsible business to be vital for shaping positive impacts for society at a scale that transcends boundaries and backgrounds. Corporate Responsibility (CR) is embedded in the very purpose of our business – building trust in society and solving important problems – and is a tangible demonstration of our values.

To solidify our commitment, in 2015 we identified a set of Corporate Responsibility ambitions to achieve by 2020. They aimed to enhance our societal impact, and ensure a consistent and long-term approach to our CR programme. I’m pleased to share with all our stakeholders that those 2020 CR ambitions have been achieved ahead of schedule, and this report highlights how these milestones have been reached.

A message from our Chairman

Raymund ChaoPwC Asia Pacific and China Chairman

We are investing in the future and growth of 15 million people, NGOs, and micro and social enterprises to help maximise their potential by June 2022.

While driving efficiency to reduce our absolute carbon impact, we commit to offsetting air travel emissions from July 2018 and to sourcing 100% renewables for our electricity consumption and offsetting residual energy use by June 2022.

I look forward to sharing our progress towards these goals over the next few years.

I would like to thank our PwC people for their contributions to society, through the work they do every day, and through our CR initiatives. With almost 19,000 people and a diverse ecosystem of valued stakeholders, together we can bring the best of PwC to collaborate with others as we build trust in society and solve important problems – now and in the future.

Our attention is now firmly focused on our 2022 global CR commitments:

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Table ofcontents

PwC at a glance .............................................................4

Stakeholder engagement and materiality .......................5

Strategy, governance and goals .....................................7

Social value of our services ..........................................10

Community engagement .............................................. 15

Environmental stewardship...........................................21

Our workplace ..............................................................28

Our CR performance at a glance .................................32

GRI Index ......................................................................34

Assurance statement ....................................................44


Our purpose is to build trust in society and solve important problems. In an increasingly complex world, we help intricate systems function, adapt and evolve so they can benefit communities and society – whether they are capital markets, tax systems or the economic systems within which business and society exist. We help our clients to make informed decisions and operate effectively within them.

This report refers to PwC Mainland China, Hong Kong and Macau which are member firms of the PwC network. PwC Mainland China, Hong Kong and Macau work together on a collaborative basis, subject to local applicable laws. Collectively, we have almost 19,000 PwC people including staff and partners.

We provide organisations with the professional services they need, wherever they may be located. Our highly qualified, experienced professionals listen to different points of view to help organisations solve their business issues and identify and maximise the opportunities they seek. Our industry specialisation allows us to help co-create solutions with our clients for their sector of interest.

We are located in these cities: Beijing, Shanghai, Hong Kong, Shenyang, Tianjin, Dalian, Jinan, Qingdao, Zhengzhou, Xi’an, Nanjing, Hefei, Suzhou, Wuhan, Chengdu, Hangzhou, Ningbo, Chongqing, Changsha, Kunming, Xiamen, Guangzhou, Shenzhen, Macau, Haikou.

PwCat a glance

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Stakeholder engagement

Our stakeholders are identified as any individual or organisation who can or would impact the sustainability of our business. This includes a wide variety of different stakeholders who we engage with through regular and ongoing dialogue as part of our everyday activities, gathering insights and feedback to better understand their needs.

We also conduct comprehensive stakeholder engagement every two years. To supplement the insights gathered previously from our clients, suppliers, NGOs and peak associations, in 2019 we conducted an online survey to understand any key changes to the views of two critical stakeholder groups – our staff and partners, and students.

Stakeholder groups

2019 stakeholder survey (# of respondents)

PwC Partners and Staff 3,049

Students, graduates and prospective employees 131

2017 stakeholder survey (# of respondents)

Clients 43

NGOs, not-for-profits, charities, community organisations and social enterprises 97

Suppliers 89

Others 97

Stakeholderengagement

and materiality

6 | It’s time to accelerate the pace of change6 | It’s time to accelerate the pace of change

Priority topicsThrough our stakeholder engagement, materiality matrix and desktop research we identified ten priority sustainability topics for PwC to action.

Materiality assessment

In 2019 we have updated our materiality matrix to reflect any changes in the importance of sustainability topics to our priority stakeholders. Survey results gathered this year from staff and students, graduates and prospective employees, have been combined with previous feedback from our clients, NGOs, suppliers, media, peak and regulatory associations and government, to analyse the importance of topics to our stakeholders.

Views gathered from our partners and directors have been used to understand the business perspective, which was then reviewed and validated with senior leadership. The final results are presented in the materiality matrix below.

• Employee wellbeing, security and safety

• Talent attraction and retention

• Client and supplier satisfaction

• Training and development

• Economic performance

• Data security

• Maintaining exceptional ethical standards

• Climate Change

• Diversity and inclusion

• Anti-corruption and anti-bribery measures

Importance of topics to the Business

Imp

orta

nce

of t

opic

s to

our

Sta

keho

lder

s

HighLow

Low

Hig

h

2019 Materiality matrix

Anti-corruption and anti-bribery measures

Capacity building for NGOs

Charitable donations

Client and supplier satisfaction

Climate change

Diversity and inclusion

Economic performance

Employee wellbeing, security and safety

Energy management

Maintainingexceptional

ethical standards Pollution

Pro bono

Sustainable purchasing

Talent attraction and retention

Tracking and managingour carbon footprint

Training and development

Data security

Transparency in our reporting

Volunteering

Waste and recycling

Water

These priority topics are addressed throughout this report and on the PwC website. Please refer to the GRI Index for details on the management approach for each topic, including links to relevant information within this report and on the PwC website.

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2020 Corporate Responsibility ambitions achieved early

In 2015 we identified the ambitions set out below to bring greater focus and accountability to our efforts in CR. We are pleased that each of these has been achieved by FY19, one year ahead of schedule.

Follow the links to read how we address our 2020 goals

Strategy, governance

and goals

Facilitate having 50% of our people engaged in community activities52% of our people participated in community activities in FY19, including participation in volunteering, pro bono and discounted social impact engagements, charitable fundraisers, and NGO awareness raising sessions.

Help build a stronger NGO sector in Mainland China and Hong KongSince FY14, over 1,500 NGO leaders have received our free governance, risk management or board training. Over 1,200 NGOs have completed our free online self-evaluation transparency check.

To be recognised as a leader due to the social value delivered through our servicesIn FY19, 83% of our people agreed that PwC drives positive societal change through the work we do every day.

Measure our economic, social and environmental impactInitial assessment completed and key CR metrics introduced in FY17, using PwC’s TIMM methodology.

30% reduction in carbon emissions per capita from FY11 baseline45% reduction per capita achieved in FY19 emissions (market-based method, inclusive of purchased renewable electricity). 29% reduction per capita achieved in FY19 emissions (location-based method)

Implement real-estate sustainability guidance across our operations in Mainland China and Hong KongGuidance implemented as part of PwC Third Party Code of Conduct since FY18, with 72% of our leased office space covered by LEED certification in FY19.


2022 Global Corporate Responsibility commitments

In 2018 PwC also set ambitious global targets for our community engagement and environmental stewardship programmes around the world. PwC China was among the first PwC member firms to formally adopt these commitments:

Our community programmes in China contribute to the above network commitment, and we have already sourced 100% renewable electricity and offset air travel and residual energy emissions from July 2018, ahead of the global target.

More details can be found in the community and environment sections of this report.

We are investing in the future and growth of 15 million people, NGOs, and social and micro enterprises to help maximise their potential by June 2022.

While driving efficiency to reduce our absolute carbon impact, we commit to offsetting air travel emissions from July 2018 and to sourcing 100% renewables for our electricity consumption and offsetting residual energy use by June 2022.

Skills & Education

Driving efficiency

NGOs

100% renewable

Social & micro enterprises

100% air travel offset

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Overall governance structure

Our local governance structure consists of a Board of Partners, Management Board and Executive Board.

The Board of Partners is a committee of 12 elected partners, in addition to our Chairman, which has oversight of the local business and its operations. The Management and Executive Boards comprise of the Chairman and partners appointed by the Chairman.

Corporate Responsibility governance structure

• The CR Committee: The committee comprises of PwC China Market leaders, Human Capital and Diversity & Inclusion leaders. The Committee oversees our overall CR strategy and meets regularly to provide guidance on implementing CR policies. It also reviews the progress of CR programmes including the PwC Foundation. The CR Committee reports periodically to the Management and Executive Boards, and is chaired by Elton Huang – Central China Markets Leader and Shanghai Office Lead Partner, Entrepreneurial and Private Business Leader.

• PwC Foundation: Is governed by six partners across PwC China. These PwC Foundation Trustees meet regularly to oversee the Foundation’s strategy, progress, use of funds, and provide regular updates to the CR Committee.

• Global Corporate Responsibility Board (GCRB): Comprises leaders from the largest PwC member firms, regional corporate responsibility leaders and sustainability subject matter experts. The Board comes together every quarter to provide governance, oversight, input and direction to PwC’s CR global strategy in alignment with the overall business strategy and to drive alignment across the PwC network.


Some examples of how we’re helping our clients to create more sustainable business models include:

Sector-wide low carbon strategyAgainst a backdrop of increasing diplomatic emphasis after the Paris Agreement, PwC was commissioned to look at low carbon scenarios for the Hong Kong construction sector through to 2030. A strategic review evaluated ways in which the sector could play its part in helping Hong Kong transition to a low carbon economy. We consulted local stakeholders and designed a series of low carbon mitigation measures around the provision of existing measures. This ultimately led to a strategy document with comprehensive action plans and analyses for the sector.

Strategy on the Sustainable Development Goals (SDGs)We’ve helped a university to respond purposefully to the challenges identified by the United Nations Sustainable Development Goals, by developing a sustainability strategy and action plans aligned with the 17 SDGs.

At PwC, we’re committed to finding thoughtful, inclusive and technology-driven solutions to some of society’s toughest challenges, and we’re doing this every day as part of the work we do. We collaborate with private sector, government, education and industry players to drive positive outcomes for our communities and the environment, through our professional services dedicated to sustainability and social impact.

Creating sustainable solutions

Our Sustainability and Climate Change practice engages with organisations to help them create and protect business value. We offer a broad range of tax, advisory and assurance services that can help clients understand which issues will have the greatest impact for their business, form a coherent and integrated strategy to address them, and provide support to implement that strategy.

Social value of our services

Taskforce on Climate-Related Financial Disclosures (TCFD) Scenario AnalysisWe have supported a large utility client with identifying the most material risks and opportunities posed by climate change to the future of its business. We also identified scenarios to form the basis of their climate-related disclosures, and provided recommendations to prepare for the evaluation of financial implications of climate change.

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Sustainable financeAlongside the consultation from Hong Kong Stock Exchange on ESG and the Hong Kong Securities and Futures Commission Strategic Framework for Green Finance, PwC has supported the regulators by conducting a survey to gauge industry views on climate risk. The outcome will inform recommendations for the future of sustainable finance in Hong Kong.

Environmental, Social and Governance (ESG) investmentThe United Nations Principles for Responsible Investment (UNPRI) outlines four primary ways of integrating ESG into investment processes. PwC worked with a Private Equity firm to help identify the most suitable approach to build risk management around the UNPRI. We refined investment policy and procedures to identify and manage assets that are exposed to ESG risks, and designed ESG reporting frameworks for the firm.

Environmental, Health and Safety (EHS) due diligenceWe help our clients during mergers and acquisitions to identify material EHS risks caused by historical operations that may impact proposed deals, provide suggestions for the corresponding risk management, and, if required, further estimate the potential cost of remediation. We can also perform environmental site assessments to investigate any contamination risks and liabilities, for example through sampling and analysing subsurface soils, surface water and groundwater.

Beverage container deposit return schemePwC is supporting an evidence-based Positioning Statement that identifies pragmatic options for managing single-use beverage packaging within the Hong Kong context, and supporting the industry to liaise with stakeholders including government, industry, legislators, and the wider community on making the recommendations a reality.

83% of our people agree PwC delivers positive societal change through the work we do every day.


Supporting green development along the Belt and Road

The Green Investment Principles (GIP) were developed to catalyse green investment along the Belt and Road. A prerequisite to this reallocation of capital is improvement in the management of environmental and social risks for the investments in the Belt and Road region. PwC is supporting a working group set up by the GIP Secretariat to exchange knowledge, engage stakeholders and promote the implementation of GIP. This working group will focus on work around “Environmental and Climate Risk Assessment.”

The investment in energy, infrastructure and manufacturing may ‘lock-in’ high carbon pathways for the future and potentially be harmful to ecological systems. The Belt and Road Initiative has received attention on this matter. Investors are very likely to be exposed to transition and physical risks due to shifting global and regional environmental and climate policies and technological changes. It is critical they identify, evaluate and manage environment and climate related risks. Despite acknowledging these risks, the financial sector still faces many challenges in assessing these risks in practice including data availability, lack of consistency and robust methodologies.

The objectives set by the working group are:

• To identify, share, promote, and where necessary, develop a toolbox of risk assessment for financial institutions to identify and measure environmental and climate risks at the project, portfolio, and strategic levels.

• To enhance the capacity of financial institutions on risk management especially related to the Belt and Road region.

• To develop guidance material for the implementation of phase 1 and 2 of the GIP.

• To model responsible investment behaviour and promote sustainable economic and social development in the Belt and Road region.

PwC’s contribution will include support to curate a set of risk assessment tools for use by signatories, including an online tool to assess environmental and climate risks at the project level to help early stage investment and business decisions. This will be an example to show the methodology and factors associated with environmental and climate risks.

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Using technology to enhance Hong Kong’s food support services

FOOD-CO is a centralised technology platform for food support services in Hong Kong, run by St. James’ Settlement and supported by the Social Innovation and Entrepreneurship (SIE) Fund.

The platform connects food outlets and individuals wishing to donate surplus food with pre-approved food-support NGOs. Food donations are processed and made available to individuals in need through an interactive map. The platform also helps to match individuals with volunteering opportunities at food assistance organisations.

Identifying opportunity gapsSince launching in 2016, FOOD-CO has identified several key challenges in further improving the food-support sector in Hong Kong:

• 3,600 tonnes of food waste was disposed to landfill on a daily basis in 2016, but the sector needs to know which entities along the supply chain they should target to raise large-scale food donations, and approach them directly.

• Bulk food surplus donations have been more common than anticipated, however scalable and on-demand logistical support including warehouse and transport is critical to ensuring timely delivery of food items to those in need.

• Small- and medium-sized operators are well placed to provide neighbourhood food support services; however, 54% of those reported the lack of a stable pool of volunteers has been one of their main operational difficulties.

• Holistic impact measurement will be helpful for service development and funders’ support; however, there has been a lack of empirical evidence on the role of food assistance services in combating food security and poverty.

PwC’s involvementPwC’s role is to assist FOOD-CO and SIE Fund in making sure the intermediary platform is complementing current food support services and not overburdening any existing systems. We do this by acting as an independent assessor, conducting stakeholder interviews and research to assess the effectiveness of the initiative and identify improvements to make the platform more efficient, robust and sustainable.

Based on our findings, innovative solutions have been developed to address the above challenges, securing further funding from SIE Fund for FOOD-CO 2.0. These include e-coupons for hot meals, co-sharing warehouse space, research on the supply chain of food surplus, an industry-wide advocacy campaign, and longitudinal research on the effectiveness of food support services as a poverty alleviation measure.


Helping young people in Hong Kong prepare for the future

Each year, around 15,000 to 26,000 young people in Hong Kong do not have a well-defined career pathway and are looking for support to make the first step into their future.

In general, young people in Hong Kong have a high percentage of further education attainment but limited career advancement pathways. According to statistics from the Education Bureau (2016), around 15,000 to 20,000 students each year struggle to find a desirable career pathway upon graduation from tertiary institutions. Another 5,100 enter the workforce (full time or part time employment) immediately after completing the DSE diploma. Meanwhile, since the implementation of the New Senior Secondary (NSS) curriculum, over 1,000 university students drop out from tertiary studies every year because they realise they have made the wrong decisions on academic discipline and would like to revisit their choices to pursue a different path.

Using technology to equalise access to career advicei-am.hk is a one-stop portal and mobile app with supporting offline outreach activities and counselling. It provides personalised career information and guidance services for young people aged between 15 and 29, through equalising access to information and social capital.

This programme intends to enable them to have an aspirational and positive outlook of their future by broadening their academic and career horizons. The i-am.hk portal supports young people to make career decisions in light of globalisation, technology disruption and interrelationships between other life domains including individual competencies, aspirations, work-life balance, family and social relationships.

Leveraging digital and social media channels, this programme will engage individuals in a manner relevant to their needs, interests and future trends of the economy through both online and offline engagements.

PwC’s involvementPwC’s role is to assist i-am.hk portal to focus on serving the academic and career advisory and counselling needs of the participants while complementing existing services made available by other NGOs. We do this by acting as an independent assessor, conducting stakeholder interviews and research to assess the effectiveness of the programme and identifying further improvements in view of the dynamic and changing needs and context of the students.

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Through our community investments we share our greatest asset - the skills, knowledge and talent of our people – to support communities where people and business can thrive. We are doing this through the development of innovative transparency tools for the NGO sector, investing in education and capacity building and through volunteering in our communities.

As we move forward, our focus will continue to be on sharing our professional skills to help solve societal challenges in our communities, with a focus on sharing digital, technology and the supporting skills people will need to participate and thrive in the digital world.

801NGOs reached

84%of our partners and staff agree that PwC drives positive societal change through our community initiatives.

7,786General volunteers

27Social and micro enterprises reached

USD

707,685Charitable donations – firm (cash and in-kind)

USD

688,845Charitable donations – staff and partners

610Skilled volunteers

32,180Individuals reached

Volunteer participation rate

Communityengagement

FY11

12%

FY17

39%

FY18

51%

FY19

45%


Raising education standards in rural China

In line with our global community ambition to invest in the future of individuals to help maximise their potential, PwC is helping to address the inequalities in China’s education sector. In 2019, we identified a new charity partner to scale up our community investment and narrow the skills gap that arises from unequal distribution of education funding.

Adream Foundation is a non-profit organisation focusing on quality education, systematically providing effective products and services for schools, including Adream Center multi-media classrooms, along with a series of 36 courses and in-depth teacher training.

We are working with Adream to help students in rural and underserved communities, developing curriculum and materials that improve educational outcomes. In November 2019 with support from the local government at Midu, Yunnan, we built four Adream Center classrooms equipped with tablet computers, books and multimedia learning tools for local students.

The new curriculum PwC helped Adream to develop will benefit tens of thousands of middle school students annually, helping to increase their proficiency in financial literacy. Addressing this critical gap in the current education system will ensure the next generation have the right skills to make sound financial decisions. In FY19, 200 teachers delivered this new course to classes in 97 schools, benefiting over 11,700 students.

In 2019 we also supported Adream through our annual charitable fitness tournament “One Step One Dream.” 6,586 PwC staff and partners contributed 676 million steps, raising more than 400,000 RMB to build four Adream Centers.

The curriculum broadened the horizon of our grade 7 students, who found out that money could be managed in so many ways, and spending could be well planned in advance.

Teacher.

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Promoting entrepreneurial spirit

Entrepreneurship and innovation are now seen as key drivers to job creation, economic growth, and the realisation of social gains, which makes the incorporation of entrepreneurship essential to sustainable social and economic growth.

Enactus China, one of PwC China’s strategic charity partners, brings together a diverse network of university students, academic professionals and business leaders, committed to using the power of entrepreneurial action to shape a better, more sustainable world.

Within PwC, we also encourage a culture of intrapreneurship, creating an environment for our people to experiment their ideas, try new things and be innovative and creative. Sharing these common views, our partnership with Enactus China is aligned with our global community ambition to invest in the future of individuals to help maximise their potential. This programme enables our people to share their professional skills and rich experiences at work and in life with the next generation of students.

We recruit PwC employees who possess professional experience and specialised knowledge to become business advisors for Enactus college students’ social innovation project teams, and to be judges in Enactus’ National Competition where those student teams compete. Our volunteers also act as mentors to senior or graduate students who are seeking to improve their interview and job search skills.

Through the programme, I find the creativity and innovation mindset of university students today is inspiring. They are really excellent!

PwC volunteer.

Through different programmes such as students’ social project consulting, project mid-term evaluation and capacity building in career development and PwC volunteers have been dedicated to empowering our college students, and thereby to the empowering of future social and younger generation development.

Cathy Ren, General Manager of Enactus.

240 PwC volunteers participated in Enactus programmes in FY19, contributing over 1,550 hours of their time and empowering over 3,400 students. Since our collaboration with Enactus began five years ago, more than 670 of our staff and partners have volunteered, collectively contributing nearly 6,500 volunteering hours.


Enhancing financial literacy of our youth

Financial literacy empowers people to manage their finances and make important financial decisions in a more effective way. PwC has partnered with La Violet Education Consultants Limited (LVE), a Hong Kong social enterprise with a vision to encourage teenagers to learn and strengthen their connections with society, and explore their own life goals and values. By utilising the firm’s core strength, we aim to help younger generations gain the financial management skills needed for today, and the capacity to adapt to changing needs in the future.

With support from PwC, LVE developed the Financial Planning with Creativity programme in 2018, to help improve the financial competencies of local junior secondary students. This programme involves school talks and interactive workshops. In FY19, 15 school talks were held in the academic year benefitting over 3,500 students. The topics covered include household income, individual expenses, debts, savings and tips for making smart purchase decisions.

A series of in-depth interactive workshops were also provided to six schools benefitting over 100 students. During these two-hour workshops, students played a character with a job, wage, debts, monthly spending and financial goals.

21 PwC volunteers participated in this programme during FY19, sharing presentations to classes at the schools about their experiences in financial management, and leading interactive workshops to coach the students in groups.

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In April 2018, together with eight other influential Chinese foundations and private corporates, we launched the “Evaluation Support Platform for Philanthropy.” This aims to develop the philanthropy sector by enacting and promoting evaluation standards, and cultivating professional evaluators.

Under the framework of this platform, PwC China volunteered to develop an NGO Risk and Control Management Framework that can guide NGOs to check and improve their internal governance and risks. The system includes more than 200 control points, leveraging internal control standards from business, and sector-specific fundraising and programme operation procedures. It intends to cover all types of foundations and NGOs, and provides professional guidance on organisational risk and internal control management for charities. Launched in late 2019, we anticipate this first-ever framework of its kind will help more NGOs to build public trust.

We also allocate resources to share our expertise with NGOs. Our strategic approach to pro bono, subsidised and discounted services focus on projects where we can put our unique skills and solutions to use helping NGOs and the communities they serve to reach their full potential.

Helping to build trust in the NGO sector

Delivering on our goal of building a strong NGO sector, PwC China is playing an important role in forging collaborations that build trust and enable NGOs to achieve greater impact. Transparency and good governance are crucial for the development of trusted NGOs and social enterprises. We support local NGOs by providing our time, skills, expertise and resources through a range of capacity building opportunities.

Since launching in 2016, our free self-evaluation transparency check tool has benefitted over 1,200 NGOs in China. The development of the tool was a collaboration between PwC, China Philanthropy Research Institute and China Global Philanthropy Institute. The tool works first by asking NGOs around 50 questions to help them better understand the level of transparency of their reports and external communications, and then providing possible improvement opportunities and best practice. Visit our transparency tool website.

Over 1,200 NGOs in China have benefitted from our online transparency check tool.

https://www.pwccn.com/zh/corporate-responsibility/ngo-risk.pdf

https://www.pwccn.com/zh/corporate-responsibility/ngo-risk.pdf

https://www.pwccn.com/en/about-us/corporate-responsibility/community-engagement/pwc-transparency-tool.html


Connecting and contributing to community

The Community Connections Programme supports our Hong Kong employees to connect with not-for-profit (NFP) organisations, and seek opportunities to serve the NFPs in board, committee or advisory positions. The programme is co-organised with five other financial institutions to leverage shared resources and NFP networks for greater impact.

In FY19, five Connections sessions were organised engaging 47 NFP and 80 corporate participants. Corporate participants start by volunteering with NFPs of interest to gain new perspectives on community issues and the operation of the NFPs. Many connections have been made through the programme with successful board appointments in the past few years.

To enhance the impact of the programme, directors training is also provided to corporate employees to prepare them to take on a role with one of the NFP organisations. PwC also offered a free training workshop for NFP participants, with topics covering social impact bonds and funding proposals. 114 individuals from corporates and NFPs attended these training sessions in FY19.

Community Connections programme is well conceptualised and well executed. I love the idea of introducing time-constrained employees who are interested in skills based volunteering to NFPs and this platform makes it easier to turn our intentions into actions. I really benefitted from this programme as I was introduced to Foundation for Shared Impact (FSI) which is full of like-minded people with passion and courage!

PwC volunteer.

Participating in Community Connections and other skilled volunteering activities also provides an opportunity for our people to develop their professional and leadership skills, and expand their network with NFP board and management teams.

Free governance, risk management or board training has been provided to over 1,500 NGO leaders since FY15.

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At PwC we respect the environment and are committed to understanding and reducing our impacts. Our approach to environmental management is influenced by our environmental guiding principles. Our focus in recent years has been to grow internal awareness and promote environmentally responsible behaviours as well as tracking and managing our GHG emissions. As we continue to enhance our programme, we are evaluating new ways to address the environmental concerns raised by our stakeholders, including how to minimise our waste and enhancing our energy management.

Environmentalstewardship

GHG emissions (tCO2e)

FY17

52,704

FY11

40,555

FY18

54,738

FY19

55,991

Electricity consumption

Heat consumption

Purchased paper

Overnight accommodation

Air travel

offsetting all scope 1, scope 2 (heat) and scope 3 (air travel) emissions

22.7%

6.5%6.5%

48.9%

9.9%

7.2%

Car travel

Electricity consumption (MWh)

FY17

16,264

FY11

13,762

FY18

16,299

FY19

16,030

100% renewable electricity 2022 goal

Switch to 100% renewable electricity

Some prior year data has been restated in FY19. Please refer to the GRI Index for more details.

https://www.pwccn.com/en/corporate-responsibility/environmental-guiding-principles-2017-flyer.pdf

https://www.pwccn.com/en/corporate-responsibility/environmental-guiding-principles-2017-flyer.pdf


Our Planet: Our Business

Businesses, governments and investors now recognise the dangers of a warming climate. But there is another, interrelated ecological crisis looming that is every bit as important. Loss of nature and biodiversity is also threatening the stability of our world. The collapse of nature and climate change will impact every business, the economy and humanity. What we do in the next decade will be critical to all life on Earth.

To demonstrate our purpose in action, PwC supported WWF to screen a new film inspired by the Our Planet Netflix series – Our Planet: Our Business during Green Week 2019. We hosted a global webcast on World Environment Day, and a number of exclusive preview screenings in Beijing, Hong Kong and Shanghai to engage our internal and external stakeholders. This has successfully provided a platform for clients, other corporates, social enterprises, charities and our people to explore together how business can solve the world’s most important environmental problems.

In addition to the screening events, a series of other internal communications and activities were organised to further engage our staff, including volunteering activities with local NGOs, focused on conserving and restoring our natural environment, and encouraging our people to make a personal pledge to support a more sustainable lifestyle.

The team at PwC has been championing this film since its inception, realising early on how important it is for business engagement on nature loss, alongside climate.

Colin Butfield, Executive Producer, Our Planet, WWF-UK

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Yunnan Reforestation Project

Yingjiang is recognised by WWF, Conservation International and BirdLife for supporting a rich and unique biodiversity, with many new species discovered in recent years. However, rapid expansion of banana and rubber plantations has degraded the land, posing a serious threat to the local ecosystem. In order to safeguard this hotspot, PwC sponsored a project to restore some key sites in order to enhance the conservation value of local forest and wetland ecosystems.

To engage our people in this initiative, we offered eight volunteers the opportunity to travel to Yingjiang for a five-day volunteering trip to visit the reforestation sites and understand more about the biodiversity values of the area. They have also volunteered in a school outreach activity to raise awareness of conservation with students.

It was unforgettable to climb over the old-growth forest and witness the trees sponsored by PwC on the top of the mountain which helps expand the forest coverage, and serve as a vital habitat to numerous species of birds and wildlife. This is very meaningful.

PwC volunteer.


Energy management

Since FY11, PwC has seen the growth of its business progressively decouple from its energy consumption. Through improvements in our operations, we achieved 40% reduction in our electricity intensity in FY19 compared to FY11 baseline. This trend is linked to a number of improvements in our operations, which allow us to reduce our impacts on the environment, and are aligned with our commitment to measure and manage our environmental impacts.

Investing in renewable energy

In FY19 we moved to 100% renewable electricity to mitigate the carbon emissions from electricity used in our offices. We sourced I-REC Energy Attribute Certificates (EACs) from accredited wind-power sources in China to cover all of our scope 2 electricity consumption. Our voluntary purchase, while relatively small, demonstrates corporate demand for renewables. PwC hopes to demonstrate leadership in the transition to renewables, provide a platform for future policy development, and inspire others. We also joined RE100 in 2018, an initiative of The Climate Group and Carbon Disclosure Project (CDP) to demonstrate our commitment to renewable energy.

Server virtualisation

Cooling and powering data centres consumes a lot of energy, so we are constantly searching for solutions and technology to be more efficient. To enhance our performance, we are constantly searching for solutions and technology to be more efficient. Since 2015, we have been introducing server virtualisation software in our data centres, with nearly 100% of our servers now virtualised. This reduces the number of physical servers needed, and hence reduces energy consumption.

Investing in green office spaces

Our procurement guidelines prioritise Leadership in Energy and Environmental Design (LEED) certified buildings for new offices and office relocations wherever possible. LEED is an internationally recognised green building certification that provides third-party verification that a building has been designed and built using strategies aimed at reducing energy and water usage, promoting better indoor air quality, and improving quality of life. Today 72% of our leased floor space is now LEED certified and/or located within LEED certified buildings.

40%reduction in electricity consumption per capita since FY11

PwC | 25

Carbon management

At PwC, we are constantly looking into opportunities to improve our energy and carbon performance.

Alternatives to air travel

Business air travel contributes the largest carbon impacts for our business, accounting almost 50% of our overall carbon emissions in FY19. It is important for us to explore new ways of connecting and building relationships, in order to reduce the number of journeys. Technological advancements have made remote connections easier – effectively connecting people in different geographic locations, reducing unnecessary business travel. Our FY19 carbon emissions from business air travel per employee has reduced by 26% in comparison to FY11 baseline.

Carbon offsetting

While our priority is reducing our absolute carbon impact, offsetting is an important part of our strategy to mitigate emissions which are unavoidable. Starting in FY19, we are supporting two carbon projects to offset all unavoided scope 1, scope 2 (heat) and scope 3 (air travel) emissions. PwC has strict quality criteria in place that underpin all of our carbon offset purchases.

Shanxi improved cookstoves, China

This fuel-switching improved cookstove project reduces Greenhouse Gases (GHG) by selling improved stoves that use excess corn agriculture residues. By substituting coal with renewable biomass, the project stoves reduce carbon emissions and reduce levels of exposure to indoor air pollution, arsenic and fluoride for end users. This project in Yangquan, Shanxi Province also helps by alleviating pressure on forests and energy resources, saving families money and time acquiring fuel, and providing employment for office staff and field technicians.

Meru and Nanyuki community reforestation, Kenya

Integrating reforestation to sequester carbon with community development activities, this community project based in the foothills of Mount Kenya, combines hundreds of individual tree planting activities and enables local communities to improve access to food and create additional sources of income beyond subsistence farming. In addition to generating revenue from the sale of carbon credits, the project provides training and facilities to improve crop production. Trees are grown to provide food, medicine and fuel.

45% reduction in carbon emissions per capita since FY11, including renewable electricity.


Waste management and recycling

Plastic recycling

Many office supplies are plastic and the vast majority end up in landfill or oceans. In 2018, we partnered with TerraCycle to collect our used and broken plastic stationery in every office location in mainland China, breaking down components into plastic pellets, then recycling this back into new products.

We are also supporting a plastic reduction campaign called the 10 Tonnes Challenge organised by V Cycle, a Hong Kong based social enterprise, to help collect plastic bottles for proper recycling. Benefits include upcycling the collected plastic bottles, educating the public about plastic reduction and recycling, and providing training and job opportunities for waste pickers and people with special needs.

Laptop reuse and recycle

Nearly all PwC’s partners and staff require a laptop to do their daily work. When the laptops reach the end of their first life, we refurbish them and donate them to support good causes. Since 2015, we have been partnering with Netspring to help fund the development of two Green IT classrooms for disadvantaged rural schools in Nanchong, Sichuan province. In FY19, 3,420 hours of IT lessons were provided to 67 students.

250laptops donated

in FY19

4,362laptops resold

in FY19

Coffee grounds recycling

Coffee grounds are a major source of organic waste in our offices. Every year, our Hong Kong offices generate around 2,000 to 3,000 kg of coffee grounds. Since 2015, PwC has been participating in the ‘Zero Grounds Coffee Campaign’ (ZGCC) organised by Eco-Greenergy - a social enterprise in Hong Kong, to recycle our coffee grounds. Coffee grounds collected from our offices are upcycled into planting pots, and part of the profit will support research and recycling technology; or fermented into compost and donated to various local organic farms.

For our remaining laptops, we resell them on the second-hand market, enabling us to extend their usable life. Where donation and reselling are not possible, we work with recognised service providers to help us recycle our laptops responsibly.

PwC | 27

PwC Rooftop Farm

The PwC Rooftop Farm was set up at our office in Hong Kong in 2015 to set a showcase for urban greening – connecting people with nature through participating in farm maintenance, and supporting sustainable living and organic farming. The farm also helps strengthen the connections between different individuals – both internally and externally through participating in farm maintenance, community visits of schools and other charities, food donations and charity fundraising sales. Our rooftop-grown vegetables have been donated to Pei Ho (Ming Gor) Charity Foundation, and lunch boxes prepared by Pei Ho Counterparts were sold at PwC offices in Hong Kong to raise funds. Donations received in 2019 were able to supply 2,000 free meals to homeless people and the elderly.


Our people are at the heart of our organisation and a fundamental element of our success as a firm. We are committed to attracting the best people to PwC and offering them exciting career and development opportunities so they can achieve their full potential and build a rewarding career, while delivering a truly distinctive service to our clients.

Total employees by gender Females in leadership positions

644Partners

18,211 Staff

Ourworkplace

80%of our partners and staff are proud to work at PwC

75%of partners and staff would recommend PwC as a great place to work

6,800

12,055

Male

Female

31%of partners are female

32%of partner admissions were female

PwC | 29

Wellness and Diversity

Our vision is

• To create a place where everyone can live well personally and professionally.

• To foster an inclusive culture where people take good care of themselves and one another.

• To cultivate an open mindset where differences are embraced so everyone can bring their whole self every day, in every way.

Our reimagined way of living well

We are committed to making PwC a place where everyone’s life is well lived. We see wellness as a dynamic and fluid continuum influenced by many interconnected aspects of personal and professional life. That’s why we have created our very own “Wellness Ecosystem” platform, where people can get the support they need anywhere anytime, to live healthily, work smart, and be socially connected and responsible.


Live healthily

Our Flexi Life Benefits initiative offers a wide range of additional health related services to our people, including dental, optical, health check-up and preventative vaccination, so whatever their wellness needs are, we have them covered.

Work smart

WeFlex is our new flexibility programme, a reimagined way of working that offers our people the flexibility as to when, where and how they work. It is based on trust, an understanding of what matters most to everyone and ensuring that the needs of our clients, teams and individuals are respected.

Socially connected and responsible

In China, six in every 100 people are affected by a form of disability. That’s why we collaborated with Beijing Chaoyang Disabled Persons’ Federation, to support their initiative to build 100 working bases within China that create new job and upskilling opportunities for the disabled. Our annual charitable step tournament called “One Step, One Dream” also provides a great way to raise awareness of the importance of staying active, while doing something positive for society.

Diversity and inclusion

At PwC, we respect and value differences. We know that when people from different backgrounds and with different points of view work together, we create the most value – for our clients, our people and society.

PwC Inclusion Index

Since 2015 we’ve been measuring and monitoring diversity and inclusion efforts across five aspects. Over that time we have made efforts to advance gender equality within the firm, and our Inclusion Maturity score has significantly improved to 82% in 2019. All leaders have made personal commitments to support diversity and inclusion, and gender equality has been closely monitored during the promotion and progression processes.

• Leadership team• Key roles selection process• Partner admission process

• Leadership training• Milestone training

• Talent attraction• Talent progression• Engagement

• D&I strategy• Leadership commitment• Adoption of inclusion index

• External profile• Client profile

Stra

tegy

& Leadership

InclusionMaturity Model

& Eng

agem

ent

Commitm

ent

& C

lient Focus

& Pipeline

Leadership Diversity

Attrac

tion

Pro

gre

ssio

nExtern

al Po

sitioning

Learning &Development

PwC | 31

HeForShe Challenge

When UN Women created the HeForShe initiative five years ago, PwC was proud to be one of the first corporate champions to sign up and endorse the movement. Since then, we have continued to strongly support the gender equality agenda, because we see equality as fundamental to bringing our purpose and our values to life in everything we do, every day.In late 2018, we launched the HeForShe Challenge to drive individual commitments. PwC China has achieved 64% towards our Male commitments target.


Training and development is a lifelong process. Training starts when an employee is hired, and continues throughout their career at PwC. We offer a variety of local, regional and international formal training and development courses, provided by our dedicated in-house learning and development professionals, and external education providers. On-the-job training, supervision and coaching are also part of our approach to managing professional development. Digital upskilling

Acquiring and deepening our digital acumen is an important investment, and PwC has rolled out a comprehensive digital upskilling programme for all of our people. This firm-wide learning initiative equips our people with a broad base of knowledge across a variety of domains including technology, data, analytics, AI, automation, blockchain and cyber security, which we believe are critical for all business people today, regardless of where they work. This digital upskilling strategy is a core business and people priority at PwC.

As part of the digital upskilling journey, we designed a three-month Digithon competition to engage our people in team-based learning, using online gamification to expand digital knowledge, with various challenges and learning resources. Formal training is also provided to everyone at PwC on our key data analytics processes and tools, allowing everyone to creatively apply these skills in their daily work.


Our CRperformance

at a glanceIn FY17 we conducted an initial assessment of the social, economic and environmental impact of our Corporate Responsibility programmes, leveraging our Total Impact Measurement and Management (TIMM) methodology. The results enabled us to identify specific metrics for our strategic areas of focus, set measurable goals and monitor our performance towards achieving them. We continue to measure and monitor a range of CR metrics annually, reported in the table below.

Summary of our KPIs Unit FY11 FY17 FY18 FY19

Our Workplace

Total headcount FY average 9,760 16,304 17,680 18,855

Number of partners FY average 403 585 612 644

Number of staff FY average 9,357 15,720 17,069 18,211

Female partners % female partners (as of 30 June)

29% 31% 31% 31%

Female partner admissions % female partners (as of 30 June)

34% 30% 34% 32%

Hours in training time through formal L&D programmes

1000 Hours 1,201 1,603 1,636 1,812

Average number of trainings hours per person

Hours 123 98 93 87

Completion of annual compliance

% completion 100% 100% 100% 100%

Recommend PwC as a great place to work

% favourable 47% 75% 73% 75%

Proud to work at PwC % favourable 56% 79% 77% 80%

Community engagement

Charitable donations - staff & partners

US$ 142,528 491,335 754,153 688,845

Charitable donations - firm (cash and in-kind)

US$ 556,130 622,941 751,132 707,685

Total number of volunteers* No. of staff & partners

1,208 6,325 8,989 8,396

Volunteer participation rate* % participation 12% 39% 51% 45%

PwC | 33

Summary of our KPIs Unit FY11 FY17 FY18 FY19

Community engagement

Total number of volunteer hours*

Hours 9,345 38,548 50,658 48,206

Number of skilled volunteers No. of staff & partners

not tracked 373 450 610

Number of skilled volunteer hours

Hours not tracked 7,858 8,539 9,589

Number of beneficiaries reached

Number of NGOs, social and micro enterprises, individuals

N/A N/A 11,277 33,008

PwC drives positive societal change through our community initiatives**

% favourable N/A 76% 74% 84%

PwC drives positive societal change through the work we do every day**


Environmental Stewardship

Energy consumption (heating and electricity)

MWh 20,044 26,529 27,927 26,264

Renewable energy MWh N/A N/A N/A 16,030

Carbon offset tCO2e N/A N/A N/A 31,478

Air travel (distance) 1000km 91,977 145,750 152,525 164,793

Paper consumption tonnes 688 598 628 560

Total GHG emissions tCO2e 40,555 52,704 54,738 55,991

Scope 1 tCO2e 91 89 77 65

Scope 2 tCO2e 14,408 17,200 17,517 16,779

Scope 3 tCO2e 26,056 35,416 37,145 39,147

GHG emissions per capita tCO2e per average employee headcount

4.16 3.23 3.10 2.97

PwC drives positive societal change through our environmental initiatives**


Note: *Includes all general and skilled volunteering activities**New questions added to PwC’s Global People survey added in FY17


GRI disclosure FY19 response and reference

General disclosures

Organisational profile

102-1: Name of the organization PwC at a glance

102-2: Activities, brands, products and services

Services

102-3: Location of headquarters Although no single location is considered an operational headquarter, our three largest centres in terms of workforce size are Beijing, Shanghai and Hong Kong.

102-4: Location of operations PwC at a glance

102-5: Ownership and legal form PwC China, PwC Hong Kong and PwC Macau are made up of a number of separate legal entities, subsidiaries and joint ventures, all of which have been taken into consideration for this report, and which collectively are referred to as PwC China throughout this report.

102-6: Markets served Corporate information

102-7: Scale of the organization Collectively, we have around 644 partners and 18,211 staff. Our combined revenues for PwC China are considered commercially and competitively sensitive and have not been disclosed for this reason. Aggregated revenues for PwC firms globally and regionally are available in our PwC Global Annual Review.

102-8: Information on employees and other workers

A. Average total number of employees by employment contract (permanent and temporary), by gender for FY19

Type of contract Male Female Total

Permanent 6,770 12,006 18,776

Temporary 30 49 79

Total 6,800 12,055 18,855

B. Average total number of employees by employment contract (permanent and temporary), by region for FY2019

Region Permanent Temporary Total

Mainland China 14,345 71 14,416

Hong Kong 4,368 8 4,376

Macau 63 0 63

Total 18,776 79 18,855

GRIIndex

https://www.pwccn.com/en/services.html

https://www.pwccn.com/en/about-us/about-us.html

https://www.pwc.com/gx/en/about/global-annual-review-2019.html

PwC | 35


General disclosures


C. Total number of employees by employment type (full-time and part-time), by gender for FY2019

Type of employment

Male Female Total

Full-time 6,791 12,028 18,819

Part-time 9 27 36

Total 6,800 12,055 18,855

D. Whether a significant portion of the organisation’s activities are performed by workers who are not employees.

Not applicable. The majority of work is completed by PwC employees.

E. Any significant variations in the numbers reported in Disclosures 102-8-a, 102-8-b, and 102-8-c (such as seasonal variations in the tourism or agricultural industries).

During September and October of each year, a relatively high number of new joiners commence employment with PwC, most of whom are university graduates. This yearly seasonal fluctuation in our workforce is due to extensive graduate recruitment programmes aimed at attracting the best and brightest talent to PwC.

F. key assumptions and definitions include:

• Employee: individual who is in an employment relationship with PwC, according to national law.

• Employee numbers are expressed as employee headcount.

• All data provided is an annual average for FY19.

• Permanent: A permanent employment contract is a contract with an employee, for full-time or part-time work, for an indeterminate period.

• Temporary: A temporary employment contract is of limited duration, and is terminated by a specific event, including the end of a project or work phase or return of replaced employees.

• Full-time: Monday to Friday, 8 hours per day, 40 hours a week.

• Part-time: Working hours determined on a case by case basis, but will be less than that of a full time employee.

102-9: Supply chain PwC is a professional services firm and does not source raw materials or manufacture products. Our supply chain consists of the goods and services we procure to operate our business such as leased office spaces, utilities, travel, IT and recruitment solutions and office equipment and supplies.

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

Since 2017, PwC China has opened two new office locations in Shenyang and Haikou. There have been no material changes to our supply chain.



General disclosures


102-11: Precautionary Principle or approach

We address the precautionary principle by systematically managing the risks associated with the operation of our own business, as well as understanding the unique risks and opportunities our clients may face in relation to sustainability issues, including environmental impacts. Our sustainability and climate change services offer a broad range of assurance and advisory solutions to assist our clients with their sustainability concerns.

We also share our knowledge and research through timely and relevant thought leadership publications, which aim to increase the level of understanding of a particular issue, stimulate further conversation amongst business and industry, and provide a platform for others to consider how these issues may be addressed.

102-12: External initiatives Globally, PwC is committed to a number of non-binding, voluntary external economic, environmental and social initiatives, including:

• Supporting the development of the Natural Capital Coalition – offering a standardised framework to identify, measure, and value impacts and dependencies on natural capital.

• Signatory to the UN Global Compact (UNGC) since 2002 (read our Communication on Progress) and participant in the Sustainable Energy for All and CR Reporting and Transparency working groups.

• Helping the Sustainable Accounting Standards Board (SASB) develop and disseminate sustainable accounting standards.

• Member of the World Business Council for Sustainable Development (WBCSD). We contribute across multiple work streams, including co-chairing Action2020 and contributing to the Low Carbon Technologies Partnerships initiative (LCTPi).

• We’re helping the International Integrated Reporting Council (IIRC) develop their standards.

• Committed to the UN’s HeforShe campaign.

• Signatory of the World Economic Forum’s letter to the G20 in support of climate change disclosures.

• Signatory to The Business Roundtable Statement on the Purpose of a Corporation.

• Gold member of the Global Reporting Initiative.

• Member of the Alliance of CEO Climate Leaders.

• PwC China is a member of Asian Venture Philanthropy Network (AVPN).

102-13: Membership of associations

Globally, PwC is engaged in the following strategic memberships and associations: Strategic partner to the World Economic Forum (WEF), with a key role being played in the following WEF projects:

• Harnessing the Fourth Industrial Revolution to deliver the Sustainable Development Goals.

• The Impact of 5G on Mobility and Advanced Manufacturing.

• Climate Governance Initiative.

Knowledge Partner for the Asia-Pacific Economic Cooperation (APEC) CEO Summit

https://www.pwc.com/gx/en/about/corporate-responsibility/pwc-un-global-compact-communication-on-progress-2018.html

https://www.pwc.com/gx/en/about/contribution-to-debate/world-economic-forum.html

https://www.pwc.com/gx/en/ceo-agenda/apec/shaping-the-digital-future-in-asia-pacific-2018-19.html

PwC | 37


General disclosures

Strategy

102-14: Statement from senior decision-maker

A message from our Chairman

Ethics and integrity

102-16: Values, principles, standards and norms of behavior

Our purpose and values

Code of conduct

Governance

102-18: Governance structure Governance


102-40: List of stakeholder groups Stakeholder engagement

102-41: Collective bargaining agreements

PwC employees are not covered by collective bargaining agreements in China, Hong Kong or Macau. Although collective bargaining is increasing in general in these markets, collective contracts frequently ensure the employees receive appropriate payment and benefits, such as minimum legal labour standards. PwC employees on individual employment contracts enjoy conditions above minimum legal standards and wages commensurate with market rates

102-42: Identifying and selecting stakeholders


102-43: Approach to stakeholder engagement


102-44: Key topics and concerns raised

Materiality assessment

Reporting practices

102-45: Entities included in the consolidated financial statements

PwC China does not publish consolidated financial statements as this information is considered commercially and competitively sensitive. However, the following accurately describes the entities covered by this report:

A. A list of legal entities within the global PwC network, including in China, Hong Kong and Macau, can be viewed here

B. Entities listed for China, Hong Kong and Macau are covered by this report

102-46: Defining report content and topic Boundaries

The content of this report has been defined by applying the four reporting principles of Stakeholder inclusiveness, Sustainability context, Materiality and Completeness. We do this by considering our Stakeholder engagement survey results, desktop research including relevant national and international policies, and continual dialogue with our people, clients, business forums, charity partners and other stakeholders. Material topics have been identified in our Materiality Matrix, and topic boundaries for each material topic are included in our management approach disclosures within this GRI Index.

102-47: List of material topics Materiality assessment

https://www.pwccn.com/en/about-us/purpose-and-values.html

https://www.pwccn.com/en/about-us/code-of-conduct.html

http://www.pwc.com/gx/en/about/corporate-governance/legal-entities.html



General disclosures

Reporting practices

102-48: Restatements of information

In light of new data becoming available, some GHG emissions information for FY18 has been restated in this report. Updated GHG emissions data is shown in the data summary performance table.

102-49: Changes in reporting There have been no significant changes from the previous reporting periods in the Scope and Aspect Boundaries.

102-50: Reporting period This report covers the FY19 period (1 July 2018 - 30 June 2019)

102-51: Date of most recent report Our most recent previous full report was for the FY17 period (1 July 2016 – 30 June 2017), while a summary update was provided for the FY18 period (1 July 2017 - 30 June 2018) and is available for download from our website.

102-52: Reporting cycle Every two years a full report is prepared, and every other year a summary update is released online.

102-53: Contact point for questions regarding the report

Callum Douglas, Director, Corporate Responsibility +86 (10) 6533 5772 [email protected]

102-54: Claims of reporting in accordance with the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core option.

102-55: GRI content index Reported in this GRI content index.

102-56: External assurance PwC’s FY19 Scope 1, Scope 2 and Scope 3 GHG data has been assured to a reasonable level by Bureau Veritas. To review the results of this assurance, please refer to our assurance statement.

PwC | 39


200 – Economic standards

201 – Economic performance Material Topic – Economic performance

103-1: Explanation of the material topic and its Boundary

Impacts resulting from the direct economic value generated by PwC and distributed to stakeholders, including operating expenditure, wages and benefits for employees and contractors, and payments to providers of capital, governments and suppliers.

PwC also contributes to indirect economic impacts through provision of services to clients, such as changing the productivity of organisations, sectors or a whole economy, development in areas of high-poverty, jobs supported in the value chain, and expansion of operations in new and existing locations.

102-2: Activities, brands, products and services

Services

Our purpose and values

103-3: Evaluation of the management approach

Transparency report

201-1: Direct economic value generated and distributed

Confidentiality constraints prevent reporting of our revenues, operating costs, employee wages and benefits, payments to providers of capital, and payments to government. These disclosures are commercially and competitively sensitive, and have been omitted from our reporting.

205 – Anti-corruption Topics – Anti-corruption and anti-bribery measures, Maintaining exceptional ethical standards


Maintaining exceptional ethical standards is critical to building and maintaining trust, and we have comprehensive anti-corruption and anti-bribery measures in place. The boundary of this topic includes our people, our business, our clients and our wider community

103-2: The management approach and its components

Code of conduct


Transparency report

205-2: Communication and training about anti-corruption policies and procedures

Our performance

206 – Anti-competitive behavior Topic – Client and supplier satisfaction


Our clients and suppliers range from some of the world’s leading multinational companies to new and growing enterprises, from large family businesses and governments to NGOs and private individuals. In every case, our purpose is twofold: to help our clients find solutions to their important problems and to work with them, and our other stakeholders, to build trust in society.


Services

Third party code of conduct


Facts and figures

206-1: Legal actions for anti-competitive behaviour, anti-trust and monopoly practices

To the best of our knowledge, there have been no instances of legal action taken for anti-competitive behaviour, anti-trust or monopoly practices during the reporting period.


https://www.pwccn.com/en/about-us/purpose-and-values.html

https://www.pwchk.com/en/about-us/transparency-report-2019.pdf


https://www.pwchk.com/en/about-us/transparency-report-2019.pdf


https://www.pwccn.com/en/about-us/third-party-code-of-conduct.html

https://www.pwccn.com/en/press-room/facts-and-figures.html



Environmental standards

305 – Emissions Topic – Climate change


Environmental stewardship


Carbon management

Energy management


Our performance

305-1: Direct (Scope 1) GHG emissions

Our performance

305-2: Energy indirect (Scope 2) GHG emissions

Our performance

305-3: Other indirect (Scope 3) GHG emissions

Our performance

305-4: GHG emissions intensity Our performance

Social standards

401 – Employment Topic – Talent attraction and retention


Our talent management strategy involves attracting, inspiring, motivating, managing, developing and rewarding our people. The boundary of this topic encompasses our business but also impacts our ability to create value for our clients and the wider economy.


Careers


Our performance

401-1: New employee hires and employee turnover

A. Total number and rate of new employee hires during the reporting period, by age group, gender and region.

At PwC new employee hire data is tracked by grade level rather than by age group.

Mainland China Hong Kong Macau

Male Female Male Female Male Female

Partner 4 2 6 0 0 0

Director 7 7 7 2 0 0

Senior Manager

34 29 24 12 0 0

Manager 83 65 47 38 1 0

Senior Associate

265 303 142 128 0 0

Associate 1,132 2,043 320 416 5 8

Administrative 14 28 1 13 2 0

Specialist 37 267 0 0 0 0

Total 1,576 2,744 547 609 8 8

https://www.pwccn.com/en/careers.html

PwC | 41


401 – Employment Topic – Talent attraction and retention

B. Total number and rate of employee turnover during the reporting period, by age group, gender and region.

This information is considered commercially and competitively sensitive and has not been disclosed for this reason.

401-2: Benefits provided to full-time employees that are not provided to temporary or part-time employees

Benefits provided to full-time employees that are not provided to temporary or part-time employees.

Outlined below is an overview of PwC China and Hong Kong’s Benefits Package as it relates to full-time, temporary and part-time employees.

i. Life and accident insurance

Mainland China Hong Kong and Macau

Life and accidental death and disability insurance is offered to all staff including full-time, temporary and part-time employees.

Life and personal accident insurance is offered to all full-time and part-time employees. For temporary employees this is determined on a case by case basis.

ii. Health care


Medical insurance, influenza vaccination and health check-ups are offered to all staff including full-time, temporary and part-time employees. Maternity benefits are also offered to all female staff.

Medical insurance, influenza vaccination and health check-ups are offered to all full-time and part-time employees, and maternity benefits are offered to female staff. For temporary employees this is determined on a case by case basis.

iii. Disability and invalidity coverage


Coverage is offered to all Partners and Directors.

iv. Retirement provision


All staff are enrolled in a retirement scheme, and as per Chinese law, part-time employees who work less than 24 hours a week are expected to make their own payments towards their retirement schemes.

Except for exempt persons, all Hong Kong staff who work more than 60 continuous days with the firm are enrolled in a Mandatory Provident Fund. All full-time Macau staff are enrolled in a retirement scheme (Pension Fund) from the first complete month of work.

v. Stock ownership

Not applicable.

vi. Others

• Long service award

• Birthday leave



404 – Training and education Topic – Training and development


Technical and non-technical development initiatives for PwC people, through a combination of classroom learning, online courses, coaching and mentoring, and on-the-job training. The boundary of this topic includes our employees and the wider market place.





404-1: Average hours of training per year per employee

Our performance

404-3: Percentage of employees receiving regular performance and career development reviews

All full-time employees receive regular performance and career development reviews through our comprehensive Performance, Coaching and Development framework.

405 – Diversity and equal opportunity

Topic – Diversity and inclusion


Attracting and developing a diverse workforce, encouraging a respectful workplace that values differences, and engaging in thoughtful discussions externally to improve diversity and inclusion more broadly. The boundary of this topic encompasses our business but also impacts our ability to create value for our clients and the wider community.


Our workplace


Wellness and diversity

405-1: Diversity of governance bodies and employees

A. Percentage of individuals within the organisation’s governance bodies by gender and age.

Male Female

Management board and extended leadership team

84% 16%

B. Percentage of employees per employee category by gender and age.

Grade Headcount Gender

Male Female

Partner 3.4% 69% 31%

Director 1.7% 50% 50%

Senior Manager 8.5% 39% 61%

Manager 12.1% 36% 64%

Senior Associate 34.6% 35% 65%

Associate 36.8% 34% 66%

Administrative 1.8% 41% 59%

Specialist 1.2% 12% 88%

Total 100% 36% 64%

At PwC employee data is tracked by grade level rather than by age group.

PwC | 43


418 – Customer privacy Topic – Data security


The privacy and security of personal and business data — for our clients, employees, global operations and other business partners.


Code of conduct

Third party code of conduct


To address any data security incidents, we follow all appropriate legal requirements and internal procedures for disclosing these matters to affected parties and remediate circumstances that may have led to these situations arising. PwC does not report specific details of complaints for confidentiality reasons.

419-1: Substantiated complaints concerning breaches of customer privacy and losses of customer data

To the best of our knowledge, there have been no instances of substantiated complaints concerning breaches of customer privacy or losses of customer data during the reporting period.

GRI disclosure not applicable Topic – Employee well-being, security and safety


The mental and physical well-being of our people, their ability to find an individual balance between personal and working time, and to access relevant support as and when needed. The boundary of this topic includes our employees and our business performance.


Our workplace


Wellness and diversity

Non-GRI KPI: Wellbeing Index 73% – overall favourable response rate to 10 wellbeing related questions within the PwC Global People Survey.


https://www.pwccn.com/en/about-us/third-party-code-of-conduct.html


Assurancestatement

Copyright Bureau Veritas

PwC | 45




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It’s time to accelerate the pace of change · accelerate the . pace of change. ... others as we build trust in society and solve important problems – now and in the future. Our