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On the Cover: With ivory poachers slaughtering nearly 100 African elephants every day, several Vulcan initiatives focus on protecting this iconic animal from the threat of extinction. Contents Protecting the Health of our Planet 7 Conserving Wildlife 15 Tackling Ebola 21 Investing in African Communities 25 Supporting Arts and Culture 29 Re-imagining the Learning Experience 33 The Power of Collaboration 38

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Page 1: Contents Sound Kelp Aquaculture ... and database. Images: (Above) ... Voter Approval to Protect Endangered Species. The

On the Cover: With ivory poachers slaughtering nearly 100 African elephants every day, several Vulcan initiatives focus on protecting this iconic animal from the threat of extinction.

ContentsProtecting the Health of our Planet 7

Conserving Wildlife 15

Tackling Ebola 21

Investing in African Communities 25

Supporting Arts and Culture 29

Re-imagining the Learning Experience 33

The Power of Collaboration 38

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Paul G. Allen named his company for Vulcan, the Roman god of fire.According to myth, Vulcan was tossed from the heavens as a child and grew up as a strong, freethinking outsider. That spirit of independence fueled Vulcan’s approach as a blacksmith and helped him forge works no one else – not even the gods – thought possible. As a company, Vulcan works to discover, develop and enable smart solutions for some of the world’s toughest challenges.

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Ideally, all of these approaches reinforce each other. Consider our work to protect Africa’s savanna elephants, which are currently falling prey to poachers at a rate of one every 15 minutes. To begin, we partnered with leading conservationists and elephant experts to launch a pan-African aerial survey. Together, we developed unique data-tracking technology and flew hundreds of thousands of miles to learn how many elephants are left, where they live and migrate, and where poaching is taking the greatest toll. Early data helped identify Tanzania as one poaching hotspot, information that spurred officials there to strengthen anti-poaching patrols and crack down on ivory smugglers.

Meanwhile, closer to home, we led the successful campaign to pass I-1401, a 2015 Washington State ballot initiative that banned trade in 10 endangered species and animal products, including elephant ivory. The new law has become a model for other states including Hawaii and Oregon, both key entry points for trans-Pacific trade in illegal, endangered animals.

Finally, we’ve been working to engage the public in the fight to save the elephants and other endangered species

through storytelling, by producing the award-winning documentary Racing Extinction, as well as three new elephant-focused films—including one about the illegal ivory trade—scheduled for release in 2016.

We don’t expect to solve the poaching crisis immediately, or alone. Nor do we expect to be able to fix climate change, restore ocean health or prevent pandemics overnight. These are all big, complex challenges that will only yield to concerted and persistent work by many people. But as this report documents, we at Vulcan aim to do our part, serve as catalysts and leave the world a better place.

At Vulcan, we are guided by several core beliefs. First, we believe in the importance and power of data and technology, because we can't fix what we haven't measured.

Second, we are committed to pursuing smart policy reform, because without policies we can't drive systemic change. That’s why we partner with – and sometimes push – officials and governments to develop and implement new policies and, where necessary, pursue strong enforcement.

Third, we work hard to engage and educate the public because determined citizens are often the ultimate catalyst for change.

Paul G. Allen, Founder and Chairman of Vulcan Inc.

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Protecting the Health of our PlanetDue to a rapidly warming climate, overfishing, acidification and pollution, our world’s oceans are in peril. Vulcan is working to address these challenges before it’s too late.

Image: Overfishing of sharks is a large but poorly understood problem. Vulcan is exploring the scope and impact of this loss.

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PROTECTING THE HEALTH OF OUR PLANET

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Sea Around UsMore Comprehensive Data on Global Fish Catch

Overfishing is a serious problem. Addressing this requires accurate data on how many fish there are, what type and quantity are being caught, and what level of fishing is sustainable. With Vulcan’s support, the University of British Columbia’s Sea Around Us program is making such data more available to researchers, policymakers and enforcement officials.

17 countries implemented work plans incorporating Sea Around Us data

3 countries implemented new policies to improve management of their fisheries

9,000+ visitors to the Vulcan-built website find easy access to data every month

30% of global catch is under-reported, according to estimates

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Global FinPrint Shark CensusAnswering a Deep Question

We know the world’s sharks are in trouble, with more than 100 million killed every year —twice the sustainable rate. But little is understood about how such apex predators support coral reefs and adjoining ecosystems. The Global FinPrint project, using Baited Remote Underwater Video (BRUV) cameras, allows researchers to count sharks and study the health of more than 400 reef ecosystems.

One quarter of shark and ray species are threatened with extinction

At least 40 countries will be sampled over the course of the project; multiple locations in some countries

600 BRUVs have been deployed, and approximately 450 hours of video reviewed

More than 20 researchers and divers are contributing time and expertise

Images: (Opposite above) To understand the true state of fisheries we need to know how many fish are taken out of the sea. (Opposite lower) To better reflect total global catch, recreational and artisan fishing industries need to be included in estimates. (Far right) Global FinPrint not only counts reef sharks, but also provides data to improve our understanding of the link between abundant sharks and healthy reefs.

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Smart CatchChefs Committing to Sustainable Seafood

With more than 90% of the world's fisheries either fully fished or overfished, preserving marine life to assure stable fish stocks is more important than ever. Developed with chefs and for chefs, Vulcan’s Smart Catch program helps restaurants commit to buying and serving sustainable seafood.

80+ Seattle restaurants committed to improving their sustainable seafood menu

10% increase in sustainable seafood offerings at participating restaurants

93,000 plates of sustainable seafood sold by participating restaurants in the first three months

Seven major seafood suppliers agreed to meet Smart Catch criteria

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Images: (Opposite) Smart Catch chefs are generating a new appetite for sustainable seafood. (Below) Coral reefs are critical to the overall health of our ocean and coastal economies.

Paul G. Allen Ocean ChallengeAdaptation in the Face of Decline

Increasing CO2 emissions are making our oceans more acidic, which is killing coral and other ocean life. The Paul G. Allen Ocean Challenge called upon the scientific research community to explore solutions to this problem. We received a total of 36 concepts from seven countries; these were evaluated by an international panel of oceanographic experts. Six submissions were selected as Ocean Challenge finalists, and two projects received funding:

Human Assisted Evolution of Corals This five-year program is led by the University of Hawaii’s Institute of Marine Biology and the Australian Institute of Marine Science to bolster coral resiliency to increasing ocean acidity and temperatures.

316 corals manipulated and propagated to date

Puget Sound Kelp Aquaculture

This five-year program studies the potential of cultured kelp to absorb CO2 and reduce ocean acidity.

Kelp propagation facility completed

500 linear feet of line seeded with juvenile kelp

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Bureau of Land Management (BLM)Demanding Coal Leasing Accountability

It has been more than three decades since the U.S. Department of Interior's Bureau of Land Management (BLM) has studied the impact of the federal coal leasing program on our climate. Paul Allen pushed the BLM to prepare and review a Programmatic Environmental Impact Statement for the program that produces approximately 40% of the nation's coal supply.

Federal coal is estimated to generate 14% of all energy-related U.S. carbon pollution

In a decade, coal’s share of electricity production has dropped from more than 50% to less than 39% over the past decade

Roughly 40% of coal is produced from federal lands

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Smart City ChallengeTransforming Transportation to Reduce Carbon Emissions

American cities are major emitters of greenhouse gases, accounting for nearly 27% of U.S. emissions. Paul Allen is partnering with the U.S. Department of Transportation on the Smart City Challenge, a contest among mid-sized cities to demonstrate the feasibility of transitioning from carbon-fueled transportation systems to greener, more efficient alternatives.

Paul Allen is contributing $10 million and technical support to the program, with a focus on electrification of public and private transit

U.S. DOT is awarding $40 million to the winning city to integrate technologies - including self-driving cars, connected vehicles, and smart sensors - into their transportation network

Image: (Oppostie page) The debate is no longer about the reality of climate change, but about the most efficient and effective means to combat it. (Below) A Smart City is one that can reduce its carbon footprint by electrifying its transportation system using renewable energy.

Transportation is the #2 source of greenhouse gas emissions in the U.S.

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Conserving WildlifeWe are in a race against extinction. Since 1970, half of all the world’s wildlife has disappeared —most of that due to illegal killing, overfishing and loss of habitat. Unless we change course, many of our most iconic species may go extinct. Collaborating with partners around the world, Paul Allen and Vulcan are working to change that trajectory before it’s too late.

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Great Elephant CensusEvery Elephant Counts

On average, poachers kill an African elephant every 15 minutes – that’s tens of thousands every year. How many are left? Where do they live? And where are the poaching hotspots? Those are questions being answered by Vulcan’s Great Elephant Census, a pan-African aerial survey of the continent’s savanna elephants . What we've learned is informing conservation strategy. Beyond funding the survey, Vulcan has dedicated eight staff members to manage the project and develop its technology and database.

Images: (Above) The pan-African effort to count Africa’s remaining savanna elephants is the first in more than 40 years. Results in Tanzania and Mozambique were so alarming that governments immediately strengthened their enforcement and conservation efforts. (Opposite top) A strong bond between mother and calf. (Opposte bottom) An equivalent of 406 days of flight-time focused on surveying a landscape of moving animals.

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Surveying 20 countries

Team includes more than 90 scientists and seven NGO partners: Elephants Without BordersAfrican ParksFrankfurt Zoological SocietyWildlife Conservation Society

The Nature ConservancyIUCN African Elephant Specialist Group (data)

Save the Elephants (advisory)

More than 9,700 person-hours in the air – roughly 406 days

81 airplanes and 286 crew conducted the surveys

Flew more than 463,000kms

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Ivory DNA ProjectIdentifying Poaching Hotspots in Africa

Forty-one tons of illegal ivory from global large-scale seizures were reported in 2013, which accounts for only 10-20% of underground trade. To assist anti-poaching efforts, Vulcan funded a study by University of Washington's Dr. Samuel Wasser that uses DNA from confiscated ivory to identify its geographic source. Data revealed Africa’s two worst poaching hotspots, one spanning the border of Tanzania and Mozambique, and the other in Central Africa, where elephants are being killed at an industrial scale.

This information helped convict one of the largest ivory traffickers in West Africa and is helping the prosecution of a kingpin in East Africa. Dr. Wasser’s study, along with Paul Allen’s direct support of the Great Elephant Census, demonstrates the power of technology and better data to help protect iconic species.

Images: Rhinos (below) and pangolins (opposite lower) are two of 10 endangered species protected in I-1401. (Opposite page upper) New research uses DNA to identify where confiscated ivory comes from (Image by Julie Larsen Maher).

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Initiative-1401Voter Approval to Protect Endangered Species

The United States is the second-largest market (after China) for wildlife products from endangered species. A 2015 Washington State ballot initiative to ban the trade in and use of products from 10 endangered species was affirmed by an overwhelming majority of voters. The new law has become a model for other states, including Oregon and Hawaii.

28 local and national organizations endorsed the initiative

Citizens donated more than $1.6 million to match Paul Allen's initial contribution

70% of Washington state voters approved, including majorities in all 39 counties

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Tackling EbolaThe 2014 West Africa Ebola outbreak caught the world off guard, and created a desperate need for resources. Recognizing the enormity of the problem, Paul Allen committed $100 million to the Ebola response to fill critical gaps and support innovative solutions to get to zero cases. The Paul G. Allen Ebola Program collaborated with dozens of partner organizations and sought to apply learnings from the response to prevent future outbreaks from escalating into epidemics.

Image: The chilling realities of Ebola motivated Vulcan to take swift action to help stop the outbreak and become a partner in preventing future outbreaks.

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Paul G. Allen Ebola ProgramSwift Response to Reach Zero Cases

In 2015, our Ebola grant making funded immediate needs on the ground while also supporting longer-term recovery efforts, needs of survivors, and innovative solutions to disrupt the cycle of epidemics and shorten the time in which the world responds to health crises. Grants went to organizations such as eHealth Africa, the World Food Programme, the Foundation for Innovative New Diagnostics, Partners in Health, and the International Medical Corps.

We collaborated with infectious disease leaders, governments, philanthropic funders and NGOs. For instance, our partnership with the U.S. Department of State produced two state-of-the-art biocontainment units while grants to the World Health Organization supports research on viral persistence.

Images: Vulcan documentary Body Team 12 spotlighted the heroic efforts of one body disposal team that helped contain the epidemic, at great personal cost.

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Over 3 million beneficiaries were served

92,428 hygiene and relief kits were distributed to those in need

Over 1 million pounds of supplies were shipped

Our Tackle Ebola campaign mobilized public, corporate, humanitarian and political support, reaching more than 150 million people through online channels and events that raised awareness and funds. To generate even greater public engagement, Vulcan Productions partnered with RYOT Films on the creation of Academy-Award nominated Body Team 12, a film that follows the story of a female member of a Liberian-based body collection team in lifesaving work to remove the dead from loved ones homes for safe burials. The film captured the urgency and struggle within the country to prevent the spread of this deadly disease.

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Investing in African CommunitiesPaul Allen believes in the untapped potential and persistence of Africans to positively improve their communities. That’s why Vulcan is making impact investments focused on supporting entrepreneurial businesses whose scalable models hold promise for broad social impact.

Our work is focused on strengthening basic infrastructure —electricity, internet access and clean energy for cooking—in underserved communities.

Image: Livelihoods in Africa's rural communities can be improved by entreprenuerial businesses that create economic diversity.

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Off-Grid Solar ElectrificationRenewable Energy to Improve Lives

Energy poverty is a global problem that is especially prevalent in rural Africa, where less than 15% have access to electricity. Solar power that replaces kerosene not only protects the environment and improves human health, but helps generate new business opportunities. Electrification has also shown to increase annual incomes by 38%.

10 solar microgrids were in their first year of operation in Kenya as a pilot initiative in 2015

Images: Solar-power, broadband access to the Internet and mobile communications dramatically improve life in rural Africa.

New solar power is fueling businesses and positively impacting communities with 21,000 residents

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Affordable Internet Access Information is Power

Affordable Internet access has the potential to bridge the gaps in education, healthcare and entrepreneurship in Africa. In 2015, Vulcan invested in Mawingu Networks which delivers solar-powered broadband to 1,122 new customers in remote areas.

One of the greatest gaps in internet access is in last-mile connectivity, a barrier to connecting remote communities

Africa is experiencing some of the world's fastest growth in mobile data use, with some forecasts indicating a 20-fold increase by 2020.

More than 85% of Africans do not have Internet access

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Supporting Arts and CulturePaul Allen believes that art makes a bigger impact when more people experience it. That’s because art helps us see the world a little differently, and can provide a fresh sense of possibility – even purpose. With this in mind, Vulcan is working to bring great art to communities in unique ways.

Image: The inaugural Seattle Art Fair, co-produced by Art Market Productions and Vulcan, launched in July 2015.

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Seattle Art FairInvigorating the Northwest Art Community

The Seattle Art Fair showcased the vibrant culture and diversity of the Pacific Northwest and drew artists and exhibitors from around the world. The 2016 Fair is expected to be even bigger.

62 local, regional, national and international galleries participated

$85,000 raised for the 2015 Seattle Art Fair beneficiary, Artist Trust

Public Art

Paul Allen’s commitment to art also finds expression in public installations, with a total of 21 public artworks currently gracing the streets of Seattle. In 2015 Vulcan added works including:

Mirall @ Allen InstituteNebulous @ Amazon Ph 7Re-Stack @ Amazon Ph 8

Vulcan also hosted the School of Visual Concepts' "Steamroller Smackdown" at the South Lake Union Block Party. At this event, teams of Northwest artists and design firms printed oversized posters by driving a steamroller over giant paper, to the delight of attendees.

More than 15,000 visitors and rave reviews energized the Seattle art community

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Seeing Nature A Masterful View

"Seeing Nature: Landscape Masterworks from the Paul G. Allen Collection" is a national touring exhibition that showcases landscapes spanning centuries, continents and genres. The accompanying “Nature of Seeing” interpretive gallery added a scientific dimension to the show’s art and history, helping teachers and students understand the science of seeing.

86,000 visitors saw the show at the Portland Art Museum, far exceeding expectations

Images: (Left upper) The Seattle Art Fair shines a light on Seattle’s thriving art scene. (Left lower and right) The Seeing Nature exhibition explores how painters see, explore and understand the natural and built world.

107 schools brought 2,412 students to the exhibit

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Re-imagining the Learning ExperiencePaul Allen believes that America’s schools need to become more innovative in how they engage, motivate and teach students. Key to this is improving teacher training, honoring the very best teachers and replicating their methods.

Image: Beth White was recently recognized as an Allen Distinguished Educator for developing a unique engineering and design education program at Drew Charter School in Atlanta, GA.

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Allen Distinguished EducatorsRecognizing Inspirational Teachers

Too often great teachers don't get the recognition they deserve and aren't able to share their innovative approaches with their peers. The Allen Distinguished Educators (ADE) program recognizes teachers who have created outstanding experiential approaches to teaching engineering, computer science and entrepreneurship. The program helps other educators replicate these approaches with their students. Established in 2013, the second round of ADE awards was announced in 2015.

Images: (Above) ADE Alyson Nelson from Redmond, WA, encourages her Nikola Tesla STEM High School students to address global challenges in engineering and medicine. (Opposite upper) ADE teachers are transforming classrooms through hands-on, student-led programs. (Opposite lower) ADE Scott Swaaley From San Diego’s High Tech High engages his students in self-directed engineering challenges.

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81 applications from 73 cities and 35 states

16 finalists selected from 11 states, educating K-12 students

Four microdocumentaries and 10 ADE teacher advice videos created

17 partnerships with education groups committed to advising and spreading the ideas of the Allen Distinguished Educators

2300 students engaged through innovative programming

31 innovation grants awarded to teachers across the country

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Charter School Innovation GrantsSupporting Hands-on Learning

These grants support charter school start-ups founded by entrepreneurial Washington state educators to accelerate the development of innovative educational programs. In 2015 Vulcan made grants to PRIDE Prep to create and integrate a makerspace into its program; Rainier Prep to develop instructional strategies based on brain research; and EXCEL charter school, to create a computer science/computational thinking curriculum for grades 7-11.

Total of 475 students enrolled in first year across all three schools

75% of students enrolled come from low-income households

Two of three schools have waiting lists

90%+ attendance rates at all three schools

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Donors Choose ChallengesEnabling Teachers to Innovate

The Donors Choose program allows private donors to support innovative teachers by funding specific education projects. In 2015 Vulcan supported two of these through through matching grants from Paul Allen: “Teach for the Planet,” focused on environmental sustainability, and “Igniting STEAM for Student Innovators,” focused on integration of performing arts and STEM disciplines.

$420,000 in citizen donations raised through matching funds

2,847 donors contributed to the two project areas

More than 100,000 students reached, 70% of whom come from low-income households

1112 projects submitted and funded through matching funds

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THE POWER OF COLLABORATION

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SHARKS

Shark Conservation Investment Strategy Development ForumSeattle | 30 shark conservation experts and fundersDeveloped investment roadmaps for shark and ray conservation

Advancing the Global Partnership for Sharks Seattle | 24 shark conservation experts and fundersDeveloped shared priorities for a global investment strategy for the Global Partnership for Sharks (GPS), and generated commitment to the GPS Roadmap and Action Plan

EDUCATION

Education InnovationSeattle | 15 education professionalsIdentified opportunities for impact in education philanthropy and produced a white paper that encourages the most promising project concepts

CLIMATE CHANGE

Vulcan Nuclear Round-TableSeattle | 16 experts in energy, technology and policy Explored challenges to expanding civil nuclear power, including the current regulatory environment, the aging fleet of nuclear plants and lack of coordinated innovation

PANDEMICS

Ebola Innovation SummitSan Francisco / 300+ from technology and health sectors, NGOs, governments and academia In partnership with USAID and Skoll Global Threats Fund, the summit fostered collaboration and innovation with conversations that were structured to break familiar patterns and spark new ideas.

The Power of CollaborationIt’s hard to solve the world’s hardest problems alone. In fact, it’s impossible. That’s why Paul Allen and Vulcan bring experts from different fields together to find solutions and magnify our impact.

In 2015, Vulcan hosted nine expert round-tables to explore solutions.

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WILDLIFE

State Ivory Bans WorkshopSeattle | representatives from five NGO’sArticulated a rationale for state bans addressing the current wildlife poaching crisis; built a mutually agreed upon strategy for creating and catalyzing bans in key states; assessed resources and tactics necessary to win

Domain Awareness System Collaborator’s Meeting Seattle | Five NGOS and technical and philanthropy staffDrafted partnership and development plans for Vulcan's user-centered, real-time visual surveillance system to improve protected area management in 2016

African Wildlife TraffickingLondon | 12 NGOs, policy makers and investigators involved in wildlife protectionExplored current and proposed strategies and initiatives to combat wildlife trafficking, including trade in elephant ivory and rhino horn

Counter Illegal, Unreported and Undocumented (IUU) Fishing Surveillance and Technology Working GroupSeattle | 21 experts in fisheries and surveillanceIdentified strategies for collaboration in combating illegal, unreported and undocumented fishing

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