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© 2015 Baker & McKenzie LLP GOOD. SMART. BUSINESS. PROFIT. TM

Building on the Foundation of Ethics and Compliance to Achieve Sustainability

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© 2015 Baker & McKenzie LLP

GOOD. SMART. BUSINESS. PROFIT.TM

© 2015 Baker & McKenzie LLP

Building on the Foundation of Ethics and Compliance to Achieve Sustainability

May 27, 2015

© 2015 Baker & McKenzie LLP

Chelsie ChmelaGlobal Events [email protected]

We encourage you to engage during the Q&A portion of today’s webcast by using the chat function located within your viewing experience.

HOST

QUESTIONS

RECORDING The event recording and PowerPoint presentation will be provided post event.

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© 2015 Baker & McKenzie LLP

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SPEAKING TODAY

Barb BrownPrincipal & Co-Founder, BrownFlynn

Angela HarrellHead, Voya Foundation and Office of Corporate Responsibility, Voya Financial

Steve LippmanDirector of Corporate Citizenship, Microsoft Corporation

Jim ThomasVP - Sustainability, Safety, Environment, Risk, Ethics & Compliance, Petco Animal Supplies, Inc.

© 2015 BrownFlynn Ltd. All Rights Reserved.

Do Good. Do Well. Win.™

Building on the foundation of ethics and compliance toachieve sustainability

Ethisphere WebinarMay 27, 2015

/ 6© 2015 BrownFlynn Ltd. All Rights Reserved.

Webinar Objective

The foundation of trust within a company begins with ethics and integrity. The objective of this webinar is to:

Discuss expectations for increased transparency within companies and across global supply chains.

Review how leading companies are building upon the foundation of trust to create robust sustainability programs.

Demonstrate the value of a company’s ethics and compliance officers collaborating with their corporate responsibility and sustainability teams.

Our webinar will feature experts who will focus on:

What lessons can sustainability teams learn from ethics and compliance?

What systems and controls are in place that both teams can leverage from one another?

How to identify and mitigate third party risks in your supply chain.

How to outline a clear set of ethical principles for all stakeholders.

/ 7© 2015 BrownFlynn Ltd. All Rights Reserved.

Language

Ethics Corporate ResponsibilityESG

Sustainability Compliance

Trust Values Accountability

Transparency CSR

/ 8© 2015 BrownFlynn Ltd. All Rights Reserved.

The Path to Sustainability

Compliance As Opportunity

Making Value Chains Sustainable

Designing Sustainable Products & Services

Developing New Business Models

Creating Next-Practice Platforms

Source: Why Sustainability Is Now the Key Driver of Innovation; Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami; HBR September 2009.

© 2015 BrownFlynn Ltd. All Rights Reserved.

Increased Expectations for Transparency & Availability of ESG Data

/ 10© 2015 BrownFlynn Ltd. All Rights Reserved.

Reporting Frameworks, Ratings, Rankings & Surveys

/ 11© 2015 BrownFlynn Ltd. All Rights Reserved.

Bloomberg

Bloomberg is the leader in global business and financial information, providing decision-makers with data, analytics, news and insight. Founded in 1982 with a suite of products and services for business professionals, the company has since found a niche in government, law, sports, and sustainability.

Bloomberg collects ESG data from published

company material and integrates it into the

Equities, Bloomberg Industries, and Fixed

Income platforms on the Bloomberg

Terminals.

Presently, Bloomberg covers more than

10,000 companies with ESG data and more

than 16,000 companies with executive

compensation data, in 52 countries

ESG data is fully integrated with all of

Bloomberg’s analytics, such as the Equity

Screener (EQS), Portfolio Analytics (PORT),

Relative Value (RV) and Excel-based

analytical models, including their ESG

Scorecard and award-winning Carbon Risk

Valuation Tool.

Source: Bloomberg.com

/ 12© 2015 BrownFlynn Ltd. All Rights Reserved.

Where can you find ESG information on Bloomberg?

/ 13© 2015 BrownFlynn Ltd. All Rights Reserved.

Bloomberg Supply Chain Metrics

Number of Suppliers Audited

Number of Supplier Audits Conducted

Number of Supplier Facilities Audited

Audits focused on the management of environmental and social risks. Examples would include working conditions, evidence of child labor, pollution management, etc.

Social Supply Chain Management

Indicates whether the company has implemented any initiatives to reduce the social risks in its

supply chain. Social risks might include poor working conditions, child or forced labor, lack of a

living/fair or minimum wage. “N" indicates the company has not explicitly disclosed any such

efforts.

Sustainability Supplier Guidelines Encompass ESG Area Publically Disclosed

Indicates whether a supplier's guidelines encompass all Environmental, Social, and Governance (ESG) areas, are publicly disclosed.

/ 14© 2015 BrownFlynn Ltd. All Rights Reserved.

Supply Chain Developments

Sustainability Surveys IBM Airbus Kaiser Permanente Siemens Marathon Oil British Telecom Boeing Ingersoll Rand Volvo United States Postal Service Walmart BMW Johnson Controls CR’s Top 10 Best Corporate Citizens 2013

Sustainability Training Nike Puma Apple AT&T, Inc. Mattel Bristol-Myers Squibb Campbell’s Intel

/ 15© 2015 BrownFlynn Ltd. All Rights Reserved.

White House CEQ – GHG Supplier Scorecard

/ 16© 2015 BrownFlynn Ltd. All Rights Reserved.

US Postal Service – 160-180,000 fleet vehicles

/ 17© 2015 BrownFlynn Ltd. All Rights Reserved.

US Govt. – Prequalified Sources

© 2015 BrownFlynn Ltd. All Rights Reserved.

Insights from Microsoft

Microsoft Citizenship

Steve LippmanDirector, Citizenship and Public Affairs 19

Organizational Structure

20

Legal and Corporate Affairs (General Counsel)

Citizenship and Public

Affairs Group

Litigation, Competition Law,

and Legal Compliance Group

Corporate Law Group

+ many more (HR Legal,

etc.)

Standards of Business Conduct Bridges Citizenship and Compliancewww.microsoft.com/en-us/legal/compliance/program.aspx

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© 2015 BrownFlynn Ltd. All Rights Reserved.

Insights from Petco

Confidential

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Building on the Foundations of Ethics & Compliance to Achieve SustainabilityMay 27, 2015

Jim Thomas VP, Sustainability, Safety, Environment, Risk, Ethics & Compliance

Confidential

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Petco Corporate Values

Governance

Sustainability/CSR(Company Responsibilities)

Code of Conduct(Employee Responsibilities)

SOCIALHSE ETHICSCOMPLIANCELABOR

Accountability

Confidential

25

Team Organization

VP

VP

Sustainability

Loss Prevention

Ethics & Compliance

Internal Audit

Safety & Environment Risk

Confidential

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Third Party Challenges

• SEC regulations on conflict minerals• Foreign Corrupt Practices Act (FCPA)• Lacey Act – Cases of Gibson Guitars & Lumber

Liquidators• Investigations by NGOs or news organizations - AP

report on slavery in the fishing industry in Thailand

Big changes are in

transparency & traceability

Confidential

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Modern Business Leadership

Who you are and

what you stand for

are just as important

as the quality

of your products and services

© 2015 BrownFlynn Ltd. All Rights Reserved.

Insights from Voya

Ethisphere Webinar: Ethics and Compliance to Achieve Sustainability

Information contained herein is proprietary, confidential and non-public and is not for public release.

Angela D Harrell - Head, Office of Corporate Responsibility27 May 2015

HIGHLY CONFIDENTIAL

Voya Financial Organizational Chart (abbreviated)

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Chief Executive Officer

Chief Risk OfficerChief Human Resources OfficerChief Legal Officer

Head, Corporate Responsibility Chief Risk Officers, Business LinesChief Compliance and Ethics Officer

HIGHLY CONFIDENTIAL

World’s Most Ethical Companies

"These [World’s Most Ethical] companies use ethics as a means to further define their industry leadership – understanding that creating an ethical culture, and earning the World's Most Ethical Companies recognition, involves more than just an outward-facing message or a handful of senior executives saying the right thing.”

-- Timothy Erblich, Ethisphere Chief Executive Officer 

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Ethisphere’s recognition of our efforts and commitment, for the second consecutive year, strengthens our reputation for excellence:

We continually review our Code of Conduct and Compliance policies. We are committed to maintaining a strong, transparent and ethical culture.

We believe that trust is a cornerstone in operating any company. This is particularly true in financial services.

We work very hard to maintain our strong culture of ethical practices at Voya Financial.

We understand that business ethics are a part of a company’s responsibility to its stakeholders. Our CR approach addresses our responsibility to people, the environment, and to operating our company with principled business practices.

HIGHLY CONFIDENTIAL

Corporate Responsibility Pillars

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BUSINESS PRACTICES AND PRINCIPLESCorporate values, code of conduct, business principles, policy statements, and responsible product and service development

COMMUNITY INVESTMENTGrants, employee volunteer initiatives, employee giving campaigns, employee matching-gift opportunities, cause-related marketing programs, and disaster relief through the Voya Foundation and other means

MULTICULTURAL AFFAIRSWorkforce diversity initiatives, diverse business partnerships and sponsorships, employee resource groups (ERGs), and supply chain diversity

ENVIRONMENTAL SUSTAINABILITYReducing our ecological footprint (energy, waste, paper, travel and water), engaging employees, and encouraging the greening of the supply chain

© 2015 BrownFlynn Ltd. All Rights Reserved.

BrownFlynn Overview

/ 34© 2014 BrownFlynn Ltd. All Rights Reserved.

About BrownFlynn

Award-winning corporate responsibility and sustainability consultingfirm founded in January 1996

100% of our business is derived from sustainability consulting, communications, and training services

First U.S.-certified Global Reporting Initiative training organization

Since 2006, BrownFlynn has advised clients on the GRI,producing GRI-based reports and utilizing the framework asa robust management tool

Founding member of U.S. Business Council for Sustainable Development

Extensive experience in guiding regional, national, and global clientson their sustainability journeys

Accredited consultancy partner to CDP

BrownFlynn is registered as a Female Business Enterprise (FBE),Regional Small Business (RSB), and Local Producer Enterprise (LPE)

/ 35© 2015 BrownFlynn Ltd. All Rights Reserved.

Our Expertise

Giving Companies theConfidence to Take Actionthat Delivers Value

Understand Your Landscape

Set Your Direction

Tell Your Story

Engage Your StakeholdersDrive

Value CreationThrough

Sustainability

UnderstandYour Landscape

Discover trends & best practices

Learn reporting frameworks& requirements

Navigate the worldof ratings & rankings

See how you stack upto your peers

Set Your DirectionDefine governance

structure

Identify material issues

Establish vision, goals,strategies, & policies

Create strategic partnerships

Engage YourStakeholdersGather internal &

external stakeholderperspectives & insights

Educate your team& suppliers

Inspire & motivateyour employees

Tell Your StoryDisclose sustainability performance

(GRI, Integrated Reporting, CDP, DJSI, etc.)

Respond accurately to ratings & rankings

Use creative branding, storytelling,& multi-channel communications

/ 36© 2015 BrownFlynn Ltd. All Rights Reserved.

Reporting as a Management ToolOur Approach

1. Discovery Project Launch

Meeting Background (internal) Benchmarking

(external)

2. Strategy and Prioritization Value Chain Mapping Stakeholder

Engagement Leadership Team

Materiality Workshop

3. Define Content Content Outline

and Site Map Theme

Development Design Gather Additional

Data and Stories

4. Develop Content Write Copy and

Manage Edits Continue Design Define Assets

5. Production Development Content Pouring PDF and Summary

Layout Testing and QA Proofing Launch Planning

6. Launch Launch Measure Optimize

/ 37© 2014 BrownFlynn Ltd. All Rights Reserved.

Our GRI Experience

3M Altria Client Services American Electric Power ArcelorMittal Baxter BNY Mellon Bristol-Myers Squibb Campbell Soup Company Carnival ConAgra Foods Consumers Energy Dell Eastman Chemical Eaton Corporation Energizer Fairmount Santrol Forest City Enterprises Fortune Brands

General Motors Georgia-Pacific Green Mountain Coffee Highmark KeyBank Layne Christensen Limited Brands MillerCoors Monsanto Mosaic Pfizer Sodexo Target Tennessee Valley Authority The Dow Chemical

Company ThyssenKrupp Elevator

America Unimin Corporation Waste Management

360ORGANIZATION

STRAINED ON

GRI880INDIVIDUAL

STRAINED ON

GRI31/40

GRI-BASED REPORTS/TOTALSUSTAINABILITY

REPORTS

/ 38© 2015 BrownFlynn Ltd. All Rights Reserved.

Materiality AssessmentIt’s an objective process, involving internal and external stakeholders and research, to verify and prioritize current and potential ESG focus areas, uncover opportunities, and drive strategic conversations around ESG strategy, resource investments, and reporting.

/ 39© 2015 BrownFlynn Ltd. All Rights Reserved.

Value of a Materiality Assessment

/ 40© 2015 BrownFlynn Ltd. All Rights Reserved.

Communities

Customer C

Customer D

Customer A

Customer ESuppliers

Ratings & Rankings

Contractors

Potential Employees

Customer B

Regulators &

Government Agencies

InvestorsAnalysts

Activists

Proxy Advisors

Municipalities

Rating Agencies

Media

Suppliers

Peers/Industry

Impact Mapping Across the Value Chain

Financial ServicesCompany

/ 41© 2015 BrownFlynn Ltd. All Rights Reserved.

The BrownFlynn Engagement Pathway℠

Stages of Sustainability Employee EngagementAction

Commitment

Connection

Awareness

Strategy

RewardInvolvement

Foster Innovation

Celebrate sustainability

accomplishments

PromoteInteractionand Sense

of Belonging

Make Home-Work Connection

Share BestPractices

Education

Multi-ChannelCommunication

Visual Identity

© 2015 BrownFlynn Ltd. All Rights Reserved.

Do Good. Do Well. Win.™

Thank You

Barbara BrownPrincipal and Co-Founder(216) 303 [email protected]

For more information on BrownFlynn’s services, please visit www.brownflynn.com or contact us below.

© 2015 Baker & McKenzie LLP

This webcast and all future Ethisphere webcasts are available complimentary and on demand for BELA members. BELA members are also offered complimentary registration to Ethisphere’s Global Ethics Summit and other Summits around the world.

For more information on BELA contact:

Laara van Loben SelsSenior Director, Engagement [email protected]

Business Ethics Leadership Alliance (BELA)

© 2015 Baker & McKenzie LLP

Thursday, June 4 at 10:00 a.m. ET

Essential Elements of Global Compliance Programs

All upcoming Ethisphere events can be found at:http://ethisphere.com/events/

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www.latinamericaethicssummit.com

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